Ground Floor MLMs: The Pros and the Cons

grow with usSave Your Spot

A former downline and friend contacted me and wanted to show me the business that he just joined.

He was very excited about the business and stated, “I would love to have you on my team.”

As a courtesy, I reached back and I had a peek at the company and it didn’t excite me all that much. It just wasn’t a good fit for me.

He seemed quite excited and I asked him, “You seem very excited and I’m happy for you. Why are excited about this opportunity?”

“I’ve never been in a company where I can be among the first.”
“I see… Anything else?”
“No. Do you want to do this with me?”
I told him that it just wasn’t a good fit.

Being First
There’s a certain charm in being first isn’t there?
That’s the network marketers dream right? You get to be first and everyone who joins after you will be on your team. You are at the top and everyone is below you.
Is that how it works?
Just because you are among the first, it really doesn’t mean a thing.
If you look at your company compensation plan, you probably get paid 5 to 13 ways… every company is different.
In most compensation plans that I’ve seen, most of the pay is as direct or indirect result of personal production.
So even if you are first (yes even if it’s a binary and you have a run away leg) you don’t really make (much) more money.

Being first only matters if you were going to make some good money in the first place. If you were going to make good money and you happen to get in at the right time, then you have the possiblity of making great money. However if you were going to make little to no money then being first just allows you to make the same. Being first in a ground floor opportunity won’t save you.

I know many network marketers (I’m sure that you do too) that have a lobsided team because they “saved their spot” yet most of their money is still being made from personal efforts. Very little (if any) of their income is because of “spill over” or because they came in early.

Ground Floor
A ground floor company can still be great. It has the charm of being brand new.
You might find a company that is ground floor and be excited about the products, the training, the system or even the community and that is awesome!

The trouble comes when a rep is excited ONLY because the company is new and ground floor. Think about it, what good is being first if their is nothing special about the company or the products?
If the product isn’t very special then you might have a big team but you’ll have no one (or very little) people buying the product. You’ll have big team with small volume. Small volume means small pay.

Another thing to think about is that 95% of MLM companies don’t make it to their 5th year. Most of them close their doors with in their first 12 months. Of the 5% that do make it their 5th year, only 5% of those make it to their 10th year. You probably know (or heard) of someone that was working their business only to find out that their company was going bankrupt.

So if you are part of (or are considering) an MLM company and you are excited about the products, they community and the leadership and it also happens to be ground floor. Then that’s great. You enthusiasm about the product can help you build more sales volume and that fact that the company is ground floor might give you the chance to make more income.

However if you are part of (or you are considering) an MLM company and the ONLY reason are excited is because it’s ground floor, then I predict you’ll be quite frustrated with your results. It’s hard to have create a high volume team if you aren’t passionate about the product. I hope that I’m wrong. Actually, I hope that you do prove me wrong. I love it when people are successful in MLM.

In the end, the biggest question you should ask yourself is this. If this gets big, do I have the passion and the work ethic to go along for the ride or will I simply get left behind. If you feel like you’ll get left behind, then find a different company.

Kenny Santos
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P. S
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