- Many new internet marketing firms fail within 3 years, so joining a new MLM company during its pre-launch phase carries risk. However, pre-launch allows people to join for free before a product is launched. - MLMs use pre-launch to build excitement and sign up distributors who can then recruit their own teams, providing free marketing. This helps the company reach profitability faster once the product launches. - While getting in early offers rewards, over 90% of MLMs fail within 2 years. Newcomers may not be able to properly evaluate if a pre-launch company will succeed. It is important to scrutinize the product, management, and compensation plan.