The Evolutionary Life Cycles Of Network Marketing Companies

by Daniel Mcgonagle on October 24, 2009

This post is broken up into two parts

When network marketing companies first launch,
When network marketing companies reinvent themselves

There are some network marketing companies that start strong and die a slow death into obscurity, and some companies that reinvent themselves every so often to keep themselves relevant in the marketplace.

Business is an ever-changing entity, so it never stays the same, and it will never be exactly as it was 3 seconds ago. The good, solid netowrk marketing companies that manage to stay around for a long time have to re-invent themselves to maintain, recover, or increase their market share.

When network marketing companies first launch, Part 1:

When a compan yis about to launch, there are pre-pre-launches, pre-launches all leading up to the offical launch date.

The reason they do this is to work out the bugs with their systems, ordering, auto-shipping, compensation plans software, self-replicate site-creation technology etc…. They also do these multiple pre-launches to allow some leaders to get in at top positions super-early and very close to the top, and this all happens behind the scenes unbeknownst to many.

Then the leaders tell their HOT markets about this new opportunity that truly is ground floor and they’ve built their solid downline base. Then the trickle-down effect starts and its a bit of a gold rush because this unpublicized behind-the-scenes stuff is like a drug that makes everyone think that getting in early is sure path to easy money (and it is with the right programs and comp plans).

And by the time the official launch kicks off, the momentum is built by the leader stating how this is absolutely exploding for them and then they spend most of their time doing training calls as official Peddler Spokespeople for the programs their involved in.

When network marketing companies first launch, Part 2:

After these companies and programs launch, they frequently end up making changes along the way as the initial growing pains occur.

They change the affiliate links structure,
They incorporate new rules for promotion by IBOs,
They change their corporate sites,
They move their training areas
They move their support sites
etc…, etc…, etc…

Then the products themselves change;
They add new products to their product lines
They add new bonuses for productive members
They add new areas of distribution to include new countries and regions that weren’t included before

When network marketing companies reinvent themselves:

As mentioned earlier in this post business is an ever-changing thing and the businesses that adapt are the ones that survive and thrive.

Sometimes the reinvention includes the same exact program and company with existing dowline infrastructure in place and the “re-invent” is simply a grand re-opening.

In most cases the reinvention is a revamped compensation plan bonus plan and product line with new packaging, which to me is a real re-invention and worthy of a re-launch.

what happens when When network marketing companies reinvent themselves like this is the old downlines are called in an attempt to reactive those inactive former paying members. This is the quickest way to revitalize a program to gain some momentum without going to a lot of extra effort.

The inactive downlines are obviously other network marketers who’d expressed enough interest to join that program and the new-ness of the re-launch serves asa compelling reason for them to reactive their positions.

You have to remember that 95% of the inactive downlines aren’t making any real money since they’re no different that the rest of the network marking industry, therefore they’re ripe for reactivation with the right “carrot” in hand,