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How many times have you heard from Independent Consultants of Network Marketing companies that their business is a ground floor business opportunity? I’m sure more times than you ever wanted to.

Certainly, everyone seeking a network marketing business opportunity wants to be a part of a company that is relatively new. They all want to get in on the ground floor because they believe that they have a greater chance of achieving success. Network marketers know this and that’s exactly why so many of them promote this as a key selling point.

So what really makes a company a ground floor business opportunity?

Well, according to Dr. Charles King from the University of Illinois companies usually go through four phases of growth. Those four phases are Formation, Concentration, Momentum and Stability.

Formation is when a company is just getting started and it does about $1 million in monthly sales.

Concentration happens when a company transitions to about $5 million in monthly sales.

Momentum occurs when a company expands into new territories and countries or it introduces a new product and it experiences vertical (or straight upward) growth. Momentum can last for about 3 years and that is when most of the top money earners are made.

Stability happens when a company has gone through momentum. However, companies can extend their momentum or even go into another stage of momentum with the offering of new products or expanding into new markets, as previously stated.

So, with that being said, the next time someone tells you that their business is a ground floor opportunity, you can now asks specific questions or do a little research to find out for sure.

Once a network marketing company has gone through momentum, the chance to experience life-style changing income is not as likely as it may have been in the beginning. Nevertheless, you should not take that to mean that the opportunity is not still a good one. It simply means that most likely you will not earn as much as those who joined and stayed the course from the beginning. The bottom line is that you still can earn a good income. It just may take you a little longer to do it.

If you are in the Network Marketing/Direct Selling Industry you know what potential a ground floor opportunity can have.

Are ground floor opportunities really the key to success in direct sales?

This is not an easy question to answer. Ground floor opportunities are becoming a dime a dozen these days. Maybe that's why, initially, I was so apathetic when I was presented with Votre Vu a company that launched in January 2009, offering a high-end skin care line from France, unlike anything else in the direct sales industry. I was immune to the words "ground floor opportunity”.

There isn't a better way (or cheaper way) to get a product out to the masses than to bring on a massive sales force of hungry ground floor opportunists. Yet, the problem is many of these companies have no structure, limited financial backing, no leadership and often a questionable product. They feed off the hopes and desires of people looking to make it big quickly.

It is important to know when a ground floor opportunity has strong potential and when it should be carefully considered. Obviously it takes some research. You need to look at five key elements.

1. the product

2. the company

3. the financial backing

4. the leadership

5. the market place 

It goes without saying that the product is extremely important. Stay away from "me too" products. Find products that are innovative and stand alone in a specific niche. I see this all the time with "ground floor opportunities" in which a company just regurgitated another company's product, stuck their name on it, and called it a ground floor. Also, look for products that appeal to consumers not just business building seekers.

Make sure the company is sound. Partner up with companies that weren't created last week for the sheer fact of marketing a product. Find a company that is solid who has decided to bring an innovative product to market and has chosen network marketing as that vehicle. Where is the financial backing for this new company coming from? Are they starting up with everything necessary to run your business successfully?

When researching a ground floor opportunity, it's crucial to know the corporate team. Make sure that these men and women understand what it takes to bring a product to market and have a proven successful track record. Also, beware of companies that restrict you in your marketing efforts. Working within your own network is always a great place to start but having the ability to utilize the Internet is a must in today's home based business arena.

Lastly, know your market place. Good ground floor opportunities are lost all the time on this one. Does the market have a demand for what you have to offer? Is there a target market? Where are dollars being spent? Remember, it's no fun selling cassettes in an IPOD world.

Keep these points in mind when looking for a ground floor opportunity and you will be on the right track to finding a powerful, explosive opportunity.

If you are in the process of trying to find the best home based business for you you're going to be faced with a lot of different choices. One of the biggest things you will have to decide is if you want to go with an older more established company or a newer ground floor company. There are pros and cons to each decision and it will be up to you to decide what's best for you. This article is designed to give you the information you need to make an informed decision.

Many people are of the opinion that an older more established company is going to be your best choice. Their reasoning is that if a company has lasted 5, 10 or 15 plus years it must be a good opportunity right? In many ways that is absolutely true the chances of an older company going out of business after 10 years or so is very unlikely. Another great thing about an older company is that there will be plenty of training and success stories available to you when you get started.

The downside of an older company is that most people who are making the big bucks are people who have been in the company for a very long time. This is of course not always the case and it is completely possible to come into an older company and make a very large income, it's really up to how hard you are willing to work.

The upside to starting in a newer company is that the opportunity is wide open. The market hasn't been saturated and there is a good chance that if you work hard you could be one of the top earners since there are fewer people in the beginning. This is a huge draw for many people who are hungry to get in at the beginning and have the biggest opportunity possible.

The downside to a new company is that if they aren't run the right way they might not be around forever and that can be scary for some people. Another down side is that there aren't going to be as many tools to help you succeed right away and you certainly won't have as many success stories at least not for a while.

If you're a risk taker who wants to make the most money possible and enjoys breaking new ground than a ground floor opportunity is probably right for you. If you're looking for a more sure thing with more support an older more established company is probably more your style.

Choose the company that is best for you but just know that whatever opportunity you choose the key to success really lies with you!