LocalAdLink And The Problem With MLM Startups

A lot of people disagree with me on my stance that I will NEVER even consider joining MLM Startups. However, according to a recent filing to the Securities & Exchange Commission by new MLM startup LocalAdLink. this is a perfect example of why I advise everyone not to get involved with a MLM that hasn't been in business at least five years...

I don't agree with everything that this website says. However, I believe they are spot on with their analysis about LocalAdLink. See here...

LocalAdLink Update - SEC Filing BAD BAD BAD

The problem with these startup companies is that there's too much risk for not enough potential gain. The way that they attract people is through fear of loss marketing. They would lead you to believe that you HAVE to get started right away at the ground floor so that when the company takes off you can make the big money.

This is a bad idea for several reasons...

1. Most businesses fail with the first 5 years. Out of the small minority that succeed, most of them fail within the next 5 years. Therefore if you get involved with a company that is less than 10 years old, you have a high risk of failure. If you get involved with a company that is less than 5 years old, the risks are even higher.

2. Saturation in a legitimate network marketing company will almost never happen. A good company is always revising its product line to keep it current and viable with the current market.

Did Apple stick to just computers? Did Coke stick to just soda?

Want network marketing examples? Did Amway stick to just soap? Does Avon and Mary Kay stick to the same product line or do they add new products to the product portfolio?

Therefore if the opportunity is truly a legitimate and solid opportunity today, it should be just as solid, if not more solid 5 or 10 years from now.

As you can see from this filing LocalAdLink is concerned about not having enough money to be able to stay in business. If they weren't concerned about it, they wouldn't have put it in its SEC report.

And the fact of the matter is the product that they offer really isn't really all that valueable in my opinion. Most people search for local businesses using the search engines. Therefore if you want to get local people finding out your business, you would be much better off advertising your business yourself using the Google Adwords program than advertising on LocalAdLink.

Therefore, I recommend and will continue to recommend that you avoid any MLM business that hasn't been around for at least 5 years. Ideally, the company should be around for 10 years or more because at the 10 year mark, they are significantly more likely to stay in business.