Yoli Founder Daren Falter discusses “The $200 Million Wall”
Timing Is Everything in Network Marketing
The $200 Million Wall
By Daren C. Falter
There’s a trend that I have identified in network marketing that is very common among new companies that are aspiring to be major players. I call it the $200 million wall. If a company shows promising results by bursting into pre-momentum with substantial sales and growth, it can be very tempting to join the opportunity. However, most companies I have studied that made it to the Pre-Momentum phase experienced a plateau in sales somewhere slightly before or after the $100-200 million mark. What is causing this phenomenon? Is it lack of financing? Is it changes to the compensation plan? Could it have something to do with the product line? All of these criteria, in part or in whole, can be causes for this stall. However, I’ve found in most situations that the root cause of this lull can be attributed to the leadership of the company. A $200 million company is a large operation. There are so many decisions to make when a company reaches this level of success. Corporate leaders are spinning a lot of plates and juggling many responsibilities, which are critical to future growth. Just one bad choice can stall the company indefinitely. Companies with experienced management that think and act like they’re running a billion-dollar operation tend to have the resources and leadership skills to hop over the $200 million wall and keep growing against all odds.
Some companies will eventually earn how to climb over the $200 million dollar wall and keep growing. Others get stuck and plateau at or around this level for years. Many companies will hit a certain level of sales, plateau, and start spiraling downward. This is why I don’t recommend joining a network marketing company until you see how the company deals with the $200 million wall.
In some rare cases, based on the knowledge gained about a company through hours of advanced scrutiny, you may decide to get involved earlier or later than these recommended phases of growth. I admit that I have chosen an opportunity during the stability phase, and it was a good choice at the time. I also took a chance on a pre- momentum company that survived and thrived in later years. However, for every time I’ve taken a big risk and had success, I’ve also failed two to three times in each phase of growth. Here’s the key principle to always keep in mind: if a company is good today, it should be great tomorrow. Selecting a company during the first several phases of growth can be risky. If you find yourself in a cycle where you keep selecting start-up companies and you continue to have difficulties with these companies, it’s time to break this cycle by learning how to wait and watch before getting involved. Use the lifecycle chart to help you decide the ideal time to get started.
I’ve met a few professional MLM distributors in my life who had the ability to pick winning vehicles from the start every single time. This is an amazing gift and can be very profitable. If you know someone with a solid track record of selecting winning companies, it might be profitable for you to keep an eye on their every move. But don’t assume that you have all the pieces to the puzzle. It’s generally always better to miss out on a little of the early momentum growth than to run the risk of going out of business. It can also be frustrating to be a distributor during the start-up phase because there can be hiccups in the system, delays in products or in checks, computer glitches, shipping glitches, and the works. Don’t be frustrated if you chose a company early and are now forced to put up with inconveniences and hiccups during the first two years.
About the Author
Daren C. Falter is the author of the network marketing industry-wide best seller How to Select a Network Marketing Company. Daren has been a consultant to the network marketing industry for over 12 years and a student and participant for over 20 years. Daren has built downline organizations into the tens of thousands of distributors with several different companies. Daren is a popular convention speaker and trainer. You can visit Daren online at his blog at www.networkmarketingreview.com. You can also order Daren’s best-selling MLM book at www.networkmarketingbook.com.
Daren recently launched a new network marketing company, Yoli, Inc., near Salt Lake City, Utah. Daren and his four partners are excited to introduced the worlds most nutritious beverage using patented BlastCap™ Technology. For more information about Blast Cap Technology, Blast Caps, or Yoli, visit Yoli at www.prelaunchinsider.com.
Copyright ©2009 DC Falter Marketing, Inc. ALL RIGHTS RESERVED
ATTENTION: Breaking News!
Daren Falter will be launching a new company called Yoli. We will be introducing an incredible new nutritional formula in the form of a delicious functional beverage using Mikel Anderson’s patented Blast Cap Technology. The founders of Yoli are Robby Fender, Daren Falter, Rick Eisele, Corey Citron, and Michael Prichard. To find out more about Yoli Blast Cap Technology, visit www.prelaunchinsider.com
Kingsley Ennis is one of the few “hand selected” FOUNDING DISTRIBUTORS that are helping to launch this new company … and you can join him and one of the fastest growing teams in all of Yoli at the very beginning of this great network marketing adventure!
With a background in the Seminar Industry and 12 years of Noteworthy Success in Network Marketing Kingsley is the Author of “Split Second Marketing” & “Your Extreme Advantage”. You can listen to them FREE at www.usahomebusinessexperts.com
QUESTIONS ABOUT YOLI? Email kingsley@goyoli.com or call 717-303-5710.
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