Wouldn't it be great to only have to work for about 3-5 years, build a life long residual income, and be able to will it to your grandchildren? Well, this idea is what network marketing has been based on, which sounds good, but is it really?



In this article I will try to lay out some of the the downside of trying to build a residual income using any MLM company. While there are many great MLM companies to work with, it is good to know what you are getting yourself into.

Well, the unfortunate thing is, this is not a true idea or concept. Yes, it may have been in the past, but it isn't anymore.

So, how can I make such a bold statement? There is a vast number of people who are traded from one company to another every 9 to 12 months. At one time, these people were referred to as MLM junkies, but now, their uplines are in the same shoes.

Unfortunately, network marketing has become obsessed with timing, pre-launches, and the next big thing. So, what is causing this obsession?

It is simply a numbers game. The number of new people coming into network marketing is out of proportion to the number of new company start-ups. If you want to, you can start your own company any time you want. The problem is, there are only a certain number of people to go around. This then opens you up to the Pre-Launch. This is the company's chance to catch the networkers and get them away from what they are currently marketing. The Pre-Launch gives them a promise of getting started right when the company is getting off its feet, and there aren't many people involved.

Now, as the marketer switches gears to start up with this new company, another Pre-Launch is offered, this time giving promises to be the biggest and best with their product, that it will change the world. There you have it, the cycle begins. Networkers want to be on top, right?

As this cycle continues, more and more companies will pre-launch every 9 to 12 months, the people in the other companies scramble to get to the top, and the companies they leave fail. Obviously, you can see how this puts companies at each others throats trying to get warm bodies. This can involve much ugly name calling, back-stabbing, and lawsuits to boot.

Remember, in network marketing, people are the hot commodity that is traded, making you very valuable to all of these companies.