A friend calls and shares what she claims to be the best opportunity ever: “a company with an incredible compensation plan, great products, and at the right place at the right time. The company is in “momentum,” and this is a perfect time.” Are you considering multi-level marketing?
We have all been there.
Timing is critical in almost any MLM you join. You can always find success in almost any company if you put in the work, but joining a company during a key growth phase may help maximize your success and others.
4 Phases When Considering Multi-Level Marketing?
There are four phases of growth that MLM companies experience; however, what is momentum, and when is the best time to join an MLM company? How do you know you are joining a company that will experience massive growth? Will it provide the long-term opportunity and stability you are searching for?
Let’s take a closer look as you are considering multi-level marketing!
MLM companies go through FOUR growth phases:
- The Formulation Phase
- The Concentration Phase
- The Momentum Phase
- The Stability Phase
While most every company started will go through three phases (assuming the company survives the Formulation Phase), many companies never experience Momentum’s excitement and mass success. I have personally owned an MLM biz for 11 years and have experienced The Momentum Phase, and it is exciting! I am now with a beautiful new company in the Formulation phase – and goodness, it is exhilarating!
Some companies skip right by momentum and go right into stability. Here are some key factors to consider when you evaluate any opportunity. I’ll also share the advantages and disadvantages of the phases of development.
The Formulation Phase
In this first phase, an MLM is in the start-up. This is the riskiest time to get started, but it’s also the best time. Few have heard of the products giving you the opportunity to market the product. Many leaders work to build a foundation of a business during this time. The formulation is usually lead by a period of time called “pre-launch.” This often attracts a lot of opportunity seekers to what may be seen as the next big thing. It is possible that the people who get started early with a company during pre-launch may reap many rewards long-term. Also, many enjoy being able to contribute to the developing culture and programs!
Companies can have a lot of challenges within this period in terms of products, support, and internal infrastructure. They may also have challenges with the compensation plan, and often there is a lot of attrition during Formulation while the company goes through the growing pains of the initial launch. A company that is already established prior to entering the Direct Sales model is in a prime position for success. When considering multi-level marketing, look for a company that has sold its products or services in another biz model and is deciding to move into the MLM model (this is my current company.) If a company does go the distance, and the affiliates stay the course, it can be rewarding long-term assuming the company moves well into the other phases of development.
Certainly, a phase to consider if you enjoy being a part of developing systems and can offer grace through the learning curves!
The Concentration Phase
While there is no hard-set rule for when an MLM company will enter the Concentration Phase, it is generally about 3-5 years. It may be more before they have worked out the start-up kinks and started to establish a solid foundation. Some MLM companies have hit this phase within the first year; some take five years or more to hit Concentration. When and if a company hits Concentration, many leaders start to join the company. This is due to the appearance of a more stable and long-term opportunity. If you are considering multi-level marketing, this is generally seen as the best time to join an MLM company. It is established but has not yet hit the coveted Momentum Phase.
Depending on many factors, much of which is related to field leadership, Concentration can last a few months to a few years. It generally occurs when core field leaders amass a solid foundation of leaders who push into the business full-time. While MLM owners generally start out working part-time, professional networkers who commit to an opportunity full-time generally are the ones who push a company toward the next phase of Momentum.
The Momentum Phase
Again, there is no set rule as to when (or if) a company will hit Momentum. However, it is generally after seven years (Formulation and Concentration) once a company has built a solid foundation of leaders who are all working the business as their primary revenue stream.
During Momentum, an MLM company will experience explosive growth, and distributors will see rapid team growth. While most consider Concentration to be the best time to enter an MLM, Momentum is the best time to be a part of one. MLM Momentum can last a year or two but could go much longer depending on the viability of the opportunity, products, and of course team support. During this phase, many MLM millionaires are born, and even the average distributor can do very well with building a successful business. The challenge, of course, is that Momentum is just a phase that will come to a close at some point. However, if all goes well in this phase, an MLM company can see sales that exceed $100’s of millions, and for some, they even break the billion-dollar threshold; a level that only a few companies have ever hit.
During the Momentum Phase, an MLM company will experience explosive growth, and distributors will see rapid team growth.
Heidi Bellerjeau
The Stability Phase
The final phase in an MLM company’s business development is Stability. This is seen after a long, proven track record of success and stabilization of massive growth. While companies in the Stability Phase continue to see growth, they seldom will see explosive growth that may be experienced in the coveted Momentum Phase. While companies in the Stability Phase still have a solid opportunity (in fact, many have a very good opportunity), most distributors will never see explosive growth in their individual businesses. Companies in the Stability Phase have a proven track record of success and generally have very solid corporate and field leadership with large teams. However, they may provide less of an opportunity to build massive success FAST for the average distributor to break into the six and seven-figure incomes they seek.
When considering multi-level marketing timing is key. The best time to enter a company is during the Concentration Phase of the development. This will give you time to build a team when the start-up challenges have been minimized, and all the critical components are in place. Additionally, distributors will have time to build a team before entering the Momentum Phase in their personal business.
While it is true that anyone with drive and a solid work ethic can create success in almost any MLM, joining a company in the Concentration Phase will create a solid opportunity to create FAST and long-term income.
Considering Multi-Level Marketing?
I adore the Direct Sales model and have experienced massive success through it. I love conversations about it and what success looks like! There is no other business model that allows time flexibility and freedom coupled with the unlimited earning potential only set by your personal goals. Please feel free to comment or message me with any questions if you are considering multi-level marketing. I am an open book and quite forthright!
After 25 years of working in corporate for the Estee Lauder companies, I traded the glamorous world of lipstick for peanut butter kisses. While I missed the community, conversations, and paychecks, she didn’t miss the proverbial golden handcuffs. Multi-Level Marketing provided the perfect solution to not have to choose between family and career. Check out this podcast where I had the opportunity to be a guest on MLM, you decide.
Cheers to finding YOUR success and a company you are at home with – because truly being at home is where you will be most comfortable AND successful!
