Should You Join a MLM Ground Floor Opportunity?

Should you join a MLM ground floor opportunity? Is it really the best decision? I don’t think so. Many people will tell you that it’s the people who join a company in the beginning that make the most money. That’s not true.

You don’t get paid for joining a company early.  You get paid to produce and create sales volume in your business.  Just because you join a network marketing company in the pre-launch phase or early years doesn’t mean you will make any money at all.  If you don’t build a team, you won’t make a penny, regardless of when you join.

Personally, I’d rather work with an established network marketing company than join a MLM Ground Floor Opportunity. After all, you don’t know whether or not your new company will be in business in a few years from now.  I understand that all companies were new at some point, but I think it’s simply too risk to partner with an unproven company.

It’s a proven fact that most companies fail, so the odds are against your new network marketing company succeeding in the years to come. Therefore, by teaming up with a proven, reputable, established MLM Company, you have much better odds of the company staying in business for the long haul.

Remember, the whole purpose of network marketing is to build a LONG TERM residual income that pays you for decades, not just for a few years.  It makes no sense to build up a large team with a company only to have the company go bankrupt in a couple years.

If you really want to join a MLM Ground Floor Opportunity, I won’t try to stop you. I only ask that you put the “hype” aside for a few moments and evaluate the whole picture. Make a logical, business decision.

Find out what you can about the company’s leadership team, the company’s finances, training programs, systems, compensation plan, and product line. Spend a few days collecting this information so you can make an educated decision. I think it’s wise to do this, before you sign up as a distributor.  After all, you’d do that if you were starting a traditional business, wouldn’t you?

In addition, don’t think it will be easier to sponsor new distributors into your team just because you are involved in a Ground Floor Opportunity.  Remember, people will ultimately join your team because of you, not because of the opportunity itself. Just because you join a MLM Ground Floor Opportunity does not make you a leader or a success. You have to earn those titles, regardless of which company you join.

After spending more than a decade in this industry, I’ve seen plenty of companies come and go. For every 10 companies that shut down, 20 new ones start.  That’s why I think you should avoid the MLM Ground Floor Opportunities altogether and partner up with an established company with a proven track record.

Here’s what I recommend you do to find the right company for you.  Pick a company that has proven success.  Pick a company that has weathered the storm for at least five to ten years. Find a company with great leaders who are distributor focused and have experience as distributors themselves.

Find a company with a fair compensation plan that pays the little guy fairly. Find products that are priced fairly and in demand. Read the distributor agreement with a fine toothed comb, to see what you can and can’t do.  Interview three to five top earners and see how they can help you.  I think this is a good starting point.

Final Thoughts

The bottom line is that most businesses fail, even network marketing companies.  The company you choose to partner up with is a very important decision.  You want a company you can stick with for the long haul (at least 20 years), so make sure you do your due diligence and partner up with an established MLM Company, rather than joining a MLM Ground Floor Opportunity.

What are your thoughts?  Leave a comment and let us know.  I look forward to hearing from you.

chuck holmes


Chuck Holmes
Network Marketing Professional (since 2002)
Author, Blogger, & Entrepreneur

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5 thoughts on “Should You Join a MLM Ground Floor Opportunity?”

  1. I too am in complete agreement with you! I don’t think that the MLM ground floor opportunity is the way to go at all. I would also rather stick with a proven, established company. Yet, so may people aren’t aware that this is not a good idea. Thank you for such and informative post!

  2. There’s a reason the MLM companies that are around have lasted as long as they have. They have established a pattern of success and stability for their customers and distributors. People are attracted to success, and you will have a much better chance going with a proven company. It’s hard enough for new products to enter the market due to the competition faced from existing companies. You have to work that much harder, and spend that much more money to convince them to give you a try. I don’t think going with a ground floor MLM is best.

  3. I have to agree totally with you on this one Chuck.

    Sure, there have been those that have done fantastic starting on the ground floor, but I believe if you were to look at statistics, you will find that a huge percentage fail.

    The only way I would consider ground floor is if I were starting the MLM.

    Yes, your odds are much better in making a good living if you choose an established operation that has worked out all or most of the bugs that arise with new start-ups.

    Again, it is always a person’s choice and you may have a great feeling that a new one will do quite well. If you feel that strong, maybe you need to go for it.

    Great post Chuck!

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