to Richard Poe, author of Wave 3: The New Era in Network Marketing, there are
four distinct growth phases that typically occur in successful network marketing
FORMULATION: This is the first two years when start-up is happening. Poe states
90% of home business/network marketing companies fail during this period. It
sometimes can be risky to join during this period, but it can also pay off big
if you stick it out and the company makes it.
CONCENTRATION: At this stage the company experiences $3-$50 million in annual
sales. This is the “growing pains” stage, when the company has to adapt to rapid
growth and change in order to service its swelling customer base and sales
force. In this phase, many of the initial blunders may be gone, and the systems
of the company can be much more improved.
MOMENTUM: This is when the company’s annual sales explode as geometric growth
kicks in. Typically, sales jump from about $50 million to $500 million annually
in about five years. At this stage, the product becomes a household word, sales
people rush to join the company and make very good money. Those who were fully
established in the company at the onset of the momentum can make fortunes
overnight. It is best to be in a company before momentum and to be one of the
people who help CREATE momentum.
4. STABILITY: Now the company continues
to grow, though less spectacularly. The product line is often diversified to try
to create a new waves of
phase with the most rapid growth is the Momentum phase- which occurs after the
company has exceeded $50 million in sales. This is the moment when exponential
growth kicks in, when fortunes can be made overnight by those lucky few who got
into the company before it went into momentum.”
Poe, Wave 3: The New Era in Network Marketing
Now, wouldn't you like to say you got in on the ground floor of this amazing business?