The success of an MLN (multi-level network), like traditional marketing, depends considerably on when you enter the market. In the case of an MLN however, timing is more critical because the life-cycle is considerably shorter. It’s not your imagination that some people have fared very well with MLN’s.
We’ve all seen the infomercials of the fortunate few relaxing on their yachts, or sipping rum punch on a tropical island. In most, but not all, cases they entered at near ground-floor level. People who come in much later, most often simply feed the chain.
There is a critical period in the life of a MLN during which an investor could possibly make a considerable return on his investment, that is when the industry is in the Growth phase of the Product/Industry life cycle. On the other hand, if the industry has matured or nearing decline, the investor should run, not walk, like the wind to the nearest exit.
Anyone considering an MLN as an investment should treat it like any other investment; weigh the pro’s and con’s; evaluate the risks and rewards and; give yourself this simple opportunity-cost acid test. Ask yourself, “is this the best possible investment for my hard-earned money?”