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[Rod Nichols Company: Yoli Blast Cap Technology Contribution Level: 4]

Let's all weigh in on whether a person should get into a start-up company - I want to hear the positives and negatives.

[Richard Bravo Company: Life Force International Contribution Level: 9]

For me I think it's pretty simple...

1) Weigh out the opportunity, if it's a viable market and looks like it could be a hit based on your research and it meets your acceptable risk levels, then go for it. They can be highly profitable.

2) As with anything new, the risk level is pretty high. And you'll need to be prepared and willing to ride out the growing pains, which are inevitable. Growth for the company may see many types of change, which for some, is difficult to stomach. e.g Change in compensation (+/-) change in policies, change in product, change in management, change in marketing policies, etc. All of that can be frustrating if you jumped in naively expecting a smooth ride to riches on the next mlm startup train.

~RB

[Ken Seavert Contribution Level: 2]

There are many factors to look at when joining a company but in my mind your company is nothing more then your supplier. Who ever provides the best service as your supplier deserves your business. So in my book you can forget the potential postives b/c the negatives are far more prominent in a start up company.

Are there upsides? sure. But I have no motivation to hang in there for 5 years to see if they are still around. (most aren't!) Maybe it's just me but there seems to be this promotion around new companies that often attracts opportunity jumpers who think the right company will make them a success. Don't get me wrong the company matters, but it will only magnify or hinder your efforts.

-Ken

[Chris Tryon Contribution Level: 4]

I have seen positive and negative this year with getting involved with new companies. Both of them had amazing products. Their compensation plans were quite different. One company was operating from a "what is in the best interest of the company" point of view. The other is operating from a "what is in the best interest of the distributor" point of view. The second one has made improvements to the compensation plan using suggestions from their distributors. You can guess the out come.

The first company is pretty much out of business 6 months later. The second one has been experiencing a 300% growth rate in the last month. They will officially have been in business 1 year in October. People "see" that not only is the product changing people's lives for the better, but so is the compensation plan.

So, I will repeat what I have said on this forum at least a few times. Do your homework. Find out if the company you are considering truly has their distributor's best interest at heart in what they do, or their own bottom line. Ultimately, if a company values their distributors', their bottom line will take care of itself.

[Lawyer Marketer Contribution Level: 2]

I have seen stats that say that 95-97% of start ups are out of business within 3-5 years.

My answer to your question is NO!

Although, all successful businesses have been a start up at one point, right?

So, it depends on a quality product that people want, a duplicatable system that anyone can implement, a lucrative compensation plan that pays well up front as well as a sustainable residual model, top-tier training/support, and the tools to help you succeed.

But, in general, you are more likely to be successful with a business with a proven track record, as long as it has all of the above attributes.

[Nathaniel Johnson Contribution Level: 6]

Most of what needs to be said has been said. But I'll throw in a couple extra things. One thing you need to realize is that many "companies" can just be some guy in a garage. Just watch out what you're getting into.

[Joanne Ott Contribution Level: 2]

I think for some marketers the temptation is to "get in early" to get a great position, but in most marketing plans this does not matter. In fact I think except for a binary it makes no difference at all.

Joanne

[Robin VDM Contribution Level: 2]

As a person who has spent the last couple of decades telling people all the reasons why joining a brand new company was a high-risk venture, I recently chose to join a start-up company.... and the ONLY reason I even weighed the option was because of the people who were behind the name.

That has modified the risk to me substantially, but ultimately, it will still take several months to determine how the consumers take to the product line. That's something we can analyze and judge by current buying trends, and the indications are that it should be successful, but the consumer will ultimately be the judge.

On the flip side, even the best of products can't create a successful company when the people behind the company aren't experienced.

I've seen "mature" companies with huge turnovers because they are not distributor-friendly. I've seen "mature" companies make decisions and changes that hurt distributors. I've seen "mature" companies change their compensation plans, resulting in reduced commissions to distributors who then were forced to leave to find a better option.

Choosing a company involves risk.... all we can do is try to minimize that risk by making decisions based upon good business evaluation, not emotion..

Robin

[Warren Veach Company: State Continuing Education Contribution Level: 4]

There are always the 5 Pillars of Success to use in evaluating any company you join whether it be a "start-up" or an established company.

1. Company Management with Experience and Integrity. This step should seem obvious but it's overlooked more than you know. You should be able to at least talk first hand with the management and people that they have already helped succeed.

2. Timing in Company/Timing in Industry. Try to find up and coming trends. The best way to start out is ask your friends. Never try to sell them, but ask if they have already heard of the company/product and get there honest opinion about it.

3. Product. The product is everything. If you truly believe people won't buy it, then don't promote it. It's as simple as that. Don't believe what the companies tell you, follow your gut.

4. Compensation Plan. If you have researched online businesses as much as I have then you know that there are companies that will promise you success but through the most confusing compensation plan in the universe. Don't let the promise of high rewards fool you. There are words for these: Pyramid Schemes, only the top people make the big bucks. A legitimate compensation plan is easy to understand.

5. A System that Duplicates. The knowledge and skills you have obtained should be easily passed down and be able to be learned by anybody.

[Rod Nichols Company: Yoli Blast Cap Technology Contribution Level: 4]

Thanks for all the great comments. Clearly there is excellent wisdom here. I've been involved in start-ups in the past and got burned. For many years I was pretty negative about start-ups, but over time I've realized, as many of you have, that it all depends on situation. Clearly all of the top network marketing companies were start-ups at one time and there were people who took the risk and are very wealthy now. However, the key is to understand that when you are with a start-up, you are a pioneer. If you remember the pioneers in the old west, you know that had some difficult times, as they prepared the way for the settlers later on. Those pioneers who survived, ended up with large plots of land and successful businesses. It's the same in network. You have to count the risk before jumping in.

If the company has a solid management team, an unique product or service that is going to be in high demand, solid financial backing, a fair and lucative compensation plan, excellent training and marketing systems, and a big vision, it has a much better chance of succeeding, as do you, if you join.

Anyone else want to weigh in on this subject? Tell us about your start-up experiences - the good, the bad, and the ugly.