Due Diligence in MLM

Taking it seriously

There are good, bad and indifferent butchers, bakers and candlestick makers.

The same is true about doctors, lawyers, and accountants.

And network marketing companies.

Knowing how to pick the right company is critical.

Building a business is a challenge.   Having to worry about the company is just a hassle no one needs while meeting challenges.

Most importantly, if you are already in the business and love your company, that’s great.

Unfortunately, our passion for our pay plan and company can create a ‘blind spot.’

That ‘blind spot’ will cost you and your team lots of enrollments.

Everybody knows prospects can’t see, touch and feel the company… but because we believe we forget that prospects are taking a leap of faith.   Our belief, because we are sure, creates this easy to fix ‘blind spot.’

Make it easy for them to say ‘yes’ by eliminating doubt with documentation.

Here’s ‘how’ to do your due diligence if you are looking… and ‘how’ to sponsor more.

Do the work

The Direct Selling Association is critical because we, as networkers, are in Direct Selling.

With the Better Business Bureau, you’ve got to go to the town the company is founded in.

Recently a pretty quickly growing company had its doors shut.  A quick call to the BBB would have revealed a record number of inquiries, most in the history of that BBB about the company.   A yellow flag for a prospect and people representing that company.

Taking an upline’s word that the company is solid or the company saying they are debt free is not due diligence.

The Closer They Look, The Better You Will Look with Documentation

“Googling’ it is not due diligence.  All you’ll find on google, for the most part, are the bottom feeders and gurus selling secrets and leads.

I love “Google” but I’m not using it to do my due diligence on an MLM  company… obviously.

Due Diligence in MLM

Show your professionalism by being able to provide this to a prospect, if they want it.

You’ll find if a prospect is looking at a couple of things, this preparation will win better than 98% of these battles.



It’s not just the information, it’s you!

They will clearly see the difference between you and other people trying to recruit them.

It will give them confidence not only in your company but in you.

Are there any 2 things more important to someone making a decision about who to join?

  1. Confidence in the company that is authentic
  2. Confidence in you

Once you’ve got these 2 things in place, you can easily enroll people once you know what they are really looking for in a sponsor.

In the next post, I’m going to share with you exactly (via a survey of over 5000 people) what prospects feel is important.

Let me know if you’ve done your due diligence and what you found out about your company.

You’ll sponsor more in your group if you and your team are prepared to address, professionally, a prospects concerns.   Add the networking skill of duplication and you’re walking the beaches of the world.

Anytime an upline tells me they’ve sat with the founders or owners and they are different… yada, yada, yada… I’m raising a yellow flag.

They’re just ‘pitchmen’ and not professionals and have very little chance of turning anyone into a professional.

Documentation beats conversation every time.  And helps you sponsor more into your MLM.


mark januszewski

world’s laziest networker


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  • Thanks Mark! This is a great reminder for us to do our homework and have solid facts to offer so that we do not sound like we’ve just been ‘drinking the kool-aid’. That is such a turn-off to prospects! One suggestion is to see if your company has an annual report that is available for anyone to read. Ours does.

  • Before you send someone to the BBB or DSA make SURE you have checking out your company yourself first. There’s egg out there when you don’t know what was just posted…. yesterday.

    IF your company isn’t a member of each… push to have them participate. Every real company plays like the big boys.

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