Network Marketing Due Dilligence

On The Road With Dave:

I suppose I could have sub-titled today’s entry “DUE DILIGENCE”.

If you have been to an MLM distributor’s presentation of his “opportunity” and you think you might be interested; you probably will go home and ask some people you know; what they think about MLM in general, or more specifically the company in question.

Right off the bat, you probably will hear one of two things.

1) IT’S A SCAM!

2) DO YOUR DUE DILIGENCE!

Okay, so you turn a deaf ear to the “scam” comment and you decide to do some “due diligence”; whatever the heck that is.

Basically “due diligence” means that you will research the company or opportunity the way an investor assesses risk and implications of an investment. You collect data on the company’s solvency and assets, it’s ongoing reputation in the business community and if possible, you find information on the “powers that be” and search for hidden skeletons in the closet.

After you do your “diligence”, you then exercise “due care” and act on your findings. “Due Care” can be exercised in a positive manner, even if the “due diligence” reveals troublesome issues.

Asking a few friends, “what do you think about it?”, is not thorough “due diligence.” Signing up for the opportunity just because you “like” the presenter, is not “due care”.