Mlm Due Diligence Case Study

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MLM Due Diligence - Tips, Suggestions And Tough Questions To Ask


By Bruce Deery |


Often when people are exploring a business opportunity, they fail to do a thorough Due Diligence. Consequently they often make a poor decision that can be costly in terms of money, time, effort, frustration and disappointment. I know. I have been there. Below I am going to share with you some tips, suggestions and tough questions that you can ask. Hopefully they will help you avoid some of the mistakes I made in the past.

TIPS:

Do not listen to friends, family or relatives.They be well intended, but are likely to be misinformed, or uninformed and simply passing on second hand information.

Do not sign up at a home meeting or hotel meeting. In particular, do not sign up …show more content…

2) How many reps have actually signed up since day one?

3) How many are still with the company?

4) Are you willing to disclose the average yearly compensation by rank, including those reps who have earned nothing?

5) What can I expect my first year annual expenses to be, including the opportunity fee, advertising, promotional materials, business cards, replicated website, access to the back office, my monthly auto ship, renting hotel rooms and the cost of attending regional and national meetings?

6) What percentage of your product or service is sold to non representatives?

7) How long do your non representative consumers continue purchasing before they discontinue their auto ship?

8) Have there been any legal problems or class action suits?

9) Do the owners have any past or current legal problems?

IN ADDITION:

* Can I purchase similar products for less from a local retail store?

* What percentage of a rep's income comes from product sales versus
recruiting?

* Does the DSA ( Direct Sellers Association ) represent consumers or the members of the

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