Have you ever seen an ad with one of these selling points?
- Now is the right time to get into this opportunity
- This product is hot right now!
- Ground-floor opportunity
What does that mean?
It means that a new company feels that in order to benefit from the company’s projected growth, you need to get in now. The people who will benefit most are those who jump in and get on board now. In a way they are admitting that this company’s growth and success will be short-lived, which is a scary prospect that should make you look the other way.
Ever heard someone talking about business and finance say that the first one in makes all the money and the last one in loses? That is very typical for companies who have a traditional multi-level marketing (MLM) model. In order to really “hit the big time” with most of these businesses, you would need to get in early or you’d get left out to dry at the bottom.
Recently, more and more hype of the moment companies and products are being thrown in our faces. A year ago, it was juice companies claiming their juice would make you live longer, help you lose weight, give you more energy, and even heal your ailments. Many people got in while these companies were supposedly hot and ready to take off. For a while, they were successful, but it wore off after the hype died down.
Is it possible to make money with these types of opportunities? Of course. If you get in when you are instructed and are one of the first few to jump in and spread the word while the product is hot, you may be able to generate a good stream of income. But what happens when the product is no longer in huge demand? Or if the economy starts to falter and people decide they are no longer buying extravagant things, only necessities? That income-generating opportunity is over. And if there was any investment involved that is gone as well.
Some advice for when you read claims of a product or new business opportunity being hot, hype, or the best time to get in, is run. Get as far away from that opportunity as possible. Don’t get tempted by the promises or lingo. If you are interested in generating some new streams of income and are looking at a new business venture here are a few quick tips.
Find a company or opportunity with history. Not all new businesses are hype or destined to fail, but your odds of finding something that will give you success for the long-term are better with a company with history and longevity.
Check the company’s rating with the Better Business Bureau (BBB). Legitimate companies with nothing to hide will have an entry on the BBB website. Read through their positive comments, their complaint history, and the results of how those complaints were handled.
Look at the company’s growth and revenue statistics. Has the company grown every year since being in business with only a few dips in revenue? Is the company strapped with large amounts of debt or filed for bankruptcy? Starting a business with a company that has steadily increased revenue and is debt free can help ensure you will have lasting income.
What product or service are they putting out; is it luxury or necessity? Over the past two years, the economy has forced people to make budgets and stick to them, and stop buying anything that wasn’t a necessity or that they couldn’t pay for with cash. Only get involved with businesses that offer something everyone needs and uses, no matter how their current financial situation appears.
How do you feel when you hear of an opportunity that is “hot right now”?