What Is Momentum In MLM – And How It Writes Success Stories In Its Sleep
The recipe to a good multi-level-marketing company is simple: an incredible compensation plan, great products, and of course the most elusive element: timing. When a MLM company is in what is called “momentum” phase it is considered the perfect time to join up. Timing in this phase is critical and while you can find success wherever and whenever you put in the work, joining a company during this key growth phase can amplify your efforts and maximize your success.
So what is this momentum phase and how do you know you are joining a company that is experiencing massive growth, but also provide the long term opportunity and stability you are searching for?
MLM companies go through four growth phases consisting of: The Formulation Phase, The Concentration Phase, The Momentum Phase, and finally The Stability Phase. While all companies go through these first three phases, many companies never experience the excitement and mass success of Momentum. Here is a quick description of these key phases of development, and how timing your entry to be around for Momentum can transform your own success story from dream into reality.
The Formulation Phase
In this first phase, an MLM is in start-up mode. This is the riskiest time to get started, but it’s a necessary step to introduce the product and company to the market where no one has heard of it yet. Many leaders work to build a foundation and reputation during this time. Companies often have a lot of challenges within this period in terms of products, support, and internal infrastructure. They may also have challenges while the company goes through the growing pains of the initial launch. Many will not even consider joining an MLM company during Formulation, as the risk of company failure is high.
The Concentration Phase
While there is no hard set rule as to when an MLM company will enter the Concentration Phase, it is generally about 3-5 years before they have worked out the kinks. When and if a company hits Concentration, many start to join the company as it now has the appearance of a more stable and long-term opportunity. This is generally seen as a great 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. During this phase, more and more leaders are commiting to the opportunity as their full-time gig and are the ones who push a company toward the next phase: Momentum.
The Momentum Phase
There is no set rule as to when or if a company will hit Momentum. However, it is generally after seven years 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. 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.
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, and will 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.
The statistics for survival of new companies in our space is staggering, just 5% of new and emerging online businesses ever make it through their first year. While we are often captivated by the “GROUND FLOOR BUSINESS OPPORTUNITY” slogan that frames the marketing campaign of these companies, we have grown to learn that it is rarely worth your while to put a tremendous amount of effort into growing a team, training, and investing time and money into your business, just to have it dwindle over night through no fault of your own!
2017 is your year to thrive, to excel, to grow, and to overcome. I have made it my goal this year to help as many people as possible to attain the same, to get started with a home based business and attain of the level of success they have only dreamed of!
Start your journey today and let’s Get Started.