Copyright (c) 2010 Soaring Eagle Companies LLC

If you have been part of the multilevel marketing community for a long time, you may have been lucky enough to experience exponential growth in a company that you have been associated with. This fast growth rate is part of a product cycle called momentum. Generally speaking, getting into a company just before they are going into momentum is considered one of the times of the greatest opportunity. You may also have questions such as what causes momentum and how long can it last?

In product life cycle theory, there are four phases of a product life cycle. The first phase is introduction. In this stage the product is actually invented and developed. This is where the ground work occurs. This stage is also where most of the investment occurs since production has to be set up and resources invested. The growth stage can take months or years depending on the product.

The second stage is growth or momentum. It is this stage that will make or break the product. This is the stage that can also make or break your business. In multilevel marketing, this is where the heaviest promotion, marketing, and advertising take place. This is also where many companies offer the best deals for new distributors as they look to increase their sales and reach. If the product is successful, getting in at this stage can be very profitable if growth occurs very quickly and if the product launch is successful. This growth can last months or years depending on the reach of the product.

The third stage is maturity. In this stage the sales of product often stabile as people that were introduced to the product in the second stage continue to buy, but there may be fewer new customers. This stage can bring continued steady income for a long period of time is the product continues to be desirable. The company may make small changes to improve the product at this stage, but the "hype" is over. Products that continue to be useful and desirable can remain in this stage for a very long time.

The fourth stage is decline. In this stage, the product become outdated and demand decreases, thus the sales decrease. The company may quit making the product altogether, or may elect to revamp the product, starting the life cycle all over again.

Companies may follow the same cycle overall, but, if they are a growing, innovative company, they will have products at various stages of product lifecycle at any given time. Just remember, momentum will end and the future stability of the company will depend on their ability to continue to come up with innovative products. In the meantime, if you are in a company that is currently experiencing momentum either with one or more of products or overall, hang on tight and enjoy the ride!