When MLM companies start online they tend to offer a MLM prelaunch, for a short period of time they offer new distributors very favorable terms to entice them to join. Although these terms differ in scope between MLM companies, the MLM prelaunch benefits have to be competitive or they would never attract new distributors. The MLM prelaunch benefits are always short term and a popular offer is to waive any signing up fees for distributors.

There are of course many advantages to joining an MLM prelaunch as it offers the opportunity for you to build a larger downline as you do not have to ask for any money up front. However there are dangers to MLM prelaunches and many of them affect your future credibility as a network marketer. The biggest danger is that few companies really get beyond the prelaunch stage. In theory it sounds easy but if the company has not done their homework they are likely to go bankrupt, leaving you home and dry without a product.

Many seasoned successful MLM distributors will not even entertain the idea of joining a company at the prelaunch stage, because if a product is that good it will be that good in five years time, if and when the company has survived its MLM prelaunch stage. What an MLM prelaunch does attract is the unfocused MLM company distributor that flits from one company to another, the one that never makes any real money, because they never stick at any MLM opportunity for long enough.

However despite the downside of MLM prelaunches it is possible sometimes to pass on a real MLM opportunity, because it is easier to get people to sign up when they do not have to spend out any money, and that means that you can make money easier faster when the orders come in. What is necessary is a little common sense to differentiate between the genuine MLM opportunities and the MLM scams.

Generally the answer is in the product as it is with all genuine MLM opportunities, if the claims surrounding the product sound just do good to be true, they very probably are. Someone at the time is trying to exploit the business of MLM opportunities to make a fortune and there is no solid future in the business.

Find out as much as you can about the owners, have they got any experience in the industry, or worse still have they had fraudulent dealings in the past. Sometimes MLM companies just set up in another name to trap the new network marketer.