There are four phases of growth that MLM companies experience.
We have all been there. A friend calls and shares what he claims to be the best opportunity ever: a company with tremendous upside. The company is in “momentum” and this is the perfect time.
Timing is critical in most any MLM you join. You can always find success in most any company if you put in the work. However, joining a company during a key growth phase may help maximize your success as well as others.
However, what is momentum and when is the best time to join a MLM company? How do you know you are joining a company that will experience massive growth? And finally, can the company provide the long term opportunity and stability you are searching for?
MLM companies go through four growth phases consisting of: Formulation, Concentration, Momentum, and finally Stability.
Almost every upstart company will go through three of the phases (assuming of course the company survives the Formulation Phase). Many companies never experience the excitement and mass success of momentum. That is to say, some companies just skip right by and go right into stability.
The Formulation Phase
In this first phase, an MLM is in start up. This is the riskiest time to get started, but the best time to market your product because no one has heard of it. Many leaders work to build a foundation of a business during this time.
Formulation is usually led 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. The people who get started early with a company during pre-launch may reap many rewards long term, there is also a price to pay.
Companies often have a lot of challenges within this period in terms of products, support, and internal infrastructure. .
Many industry leaders will not even consider joining an MLM company during Formulation, as the risk of company failure is high. If a company does go the distance, it can be rewarding long-term assuming the company progresses forward.
The Concentration Phase
There is no hard set rule as to when an MLM company will enter the Concentration Phase. Typically about a 3-5 years or more before the start up kinks have dissolved and a solid foundation is formed. Some MLM companies have hit this phase within the first year; some take as much as five years to hit concentration.
When a company hits concentration, many leaders start to join the company as it now has the appearance of a more stable opportunity. This is generally seen as the best time to join an MLM company, as it is established but has not yet hit the coveted Momentum Phase.
Depending on many factors, much of which 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, 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 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. 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.
The Stability Phase
The final phase in an MLM company business development is Stability. This is seen after a long, proven track record of success and a 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 business.
Companies in the Stability Phase have a proven track record of success. These companies generally have very solid corporate and field leadership with large teams. However, they may provide less of an opportunity to really build massive success FAST for the average distributor to break into the six and seven figure incomes that they are seeking.
Timing is key in choosing an MLM opportunity, and the best time to enter a company is during the Concentration Phase of the development. Additionally, distributors will have time to build a team and 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 most any MLM, joining a company in the Concentration Phase will create a solid opportunity to create FAST and long-term income.
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