Comments on How do you do due diligence when investing in a network marketing company? »
December 30, 2008
Scott K @ 3:50 am
I would be very hesitant to put money into something like this. Your risk tolerance is the key to this and I would say your chances of making this a profitable venture are slim. Granted I don’t know the product or company, but speaking in general, it sounds extremely risky. You may have already tried this but here are some suggestions to enter on Google to get information (another negative is the fact that you cannot find anything online about them): company name, phone number they gave you, names of individuals, product or company address. You probably already check those, but I listed them anyway. You could also check with the Better Business Bureau to see if the company is listed. The bottom line is I think you can do better or at least find something safer with your money.
Virtually every network marketing program is set up so the people in early (the ones that create it) get rich off the others that come in later. I’d run away as fast as you can.
It’s always hard to tell when choosing a network marketing company. 80% of them fail and it’s hard to get it rolling without very good leadership. I do know of a company that is still in it’s young stage, has great leadership, and is going to be there for the long haul. They are still offering what is called a “legacy position” where you have a tremendous side of growth potential. If you would like to know more about it, you can go to
It should have all the information that you want to look for.
Never go with a start up company. You don’t know how long they will be around and you don’t want to put your time and energy into a company only to find that they will shut down a year later and all your residual income will be gone.
Go to and get the free advanced network marketing secrets newsletter and find out about what you should look for in a good network marketing company.
The 5 Pillar Principle should be your guide in judging any network company you are thinking of joining:
1) Management experience with integrity.
2) Timing in the industry.
3) Have a remarkable product that doesn’t rely on a compensation plan.
4) A compensation plan that pays you for selling product. If the recruiting stops, what happens? How many distributors do I need to make, say, $10,000 a month?
5) Is it a proven duplicatable system level after level?
I can tell you that you will search for a long time to find a company meeting the 5 Pillar Principle. I have found only one so far in my search.
Comments on How do you do due diligence when investing in a network marketing company? »
I would be very hesitant to put money into something like this. Your risk tolerance is the key to this and I would say your chances of making this a profitable venture are slim. Granted I don’t know the product or company, but speaking in general, it sounds extremely risky. You may have already tried this but here are some suggestions to enter on Google to get information (another negative is the fact that you cannot find anything online about them): company name, phone number they gave you, names of individuals, product or company address. You probably already check those, but I listed them anyway. You could also check with the Better Business Bureau to see if the company is listed. The bottom line is I think you can do better or at least find something safer with your money.
Virtually every network marketing program is set up so the people in early (the ones that create it) get rich off the others that come in later. I’d run away as fast as you can.
It’s always hard to tell when choosing a network marketing company. 80% of them fail and it’s hard to get it rolling without very good leadership. I do know of a company that is still in it’s young stage, has great leadership, and is going to be there for the long haul. They are still offering what is called a “legacy position” where you have a tremendous side of growth potential. If you would like to know more about it, you can go to
It should have all the information that you want to look for.
Never go with a start up company. You don’t know how long they will be around and you don’t want to put your time and energy into a company only to find that they will shut down a year later and all your residual income will be gone.
Go to and get the free advanced network marketing secrets newsletter and find out about what you should look for in a good network marketing company.
The 5 Pillar Principle should be your guide in judging any network company you are thinking of joining:
1) Management experience with integrity.
2) Timing in the industry.
3) Have a remarkable product that doesn’t rely on a compensation plan.
4) A compensation plan that pays you for selling product. If the recruiting stops, what happens? How many distributors do I need to make, say, $10,000 a month?
5) Is it a proven duplicatable system level after level?
I can tell you that you will search for a long time to find a company meeting the 5 Pillar Principle. I have found only one so far in my search.