How can I do my due diligence on a biz op?
(Extracted from MLMProfessionals.biz)

Many people who come to this site for help do so because they are struggling to sell product, and struggling to build sustainable downlines.  More often than not they have lost a great deal of money, or are still losing money.

Others are doing just fine but recognise we've developed a resource here that will help them reach the very top of their company very quickly.

The people who are doing just fine have in most cases already got the proof that the biz op they've chosen is a solid, safe, and worthwhile endeavour (there are exceptions of course!).  However people who are struggling need to consider:

1. Is it because of lack of skills, or lack or particular personal or professional qualities?
2. Or is it because the business I've chosen is fundamentally flawed?

In other words, "Is it my fault or their fault, or a combination?"

I've written at length about this in the free book "Why 98% of Downlines Fail" which is available in the "Products" section of this site.  However briefly:

When You are Not Right for This Business

There are people who simply are not suited for business.  They don't like to plan ahead, they're disorganised, they don't like schedules, they're uncomfortable with accountability, they are rude or socially inept, they don't listen (they aren't coachable) they procrastinate, they are not into teams, or they're negative in attitude. These people are not right for this business.

When the Business is Wrong, or Not for You

If you are dead broke and in dire straits, you don't need this business.  What you need is a job that pays you money right NOW.  The other thing a job does is give you a social network and without some kind of network you can't succeed. Get a job, any job, and then begin to build your network and build your business.

The business is also wrong if:

• There is little or no product differentiation.  This means that there are lots of other products out there that are easily accessible for people.  They have no need to purchase from you.

• The product is overpriced compared to other similar quality products. If people aren't already paying this in the mainstream market, it's going to be a struggle. (If you're not sure, go check out your pharmacy or supermarket shelves - you'll quickly see what people are prepared to pay.)
  
• The market is saturated, or there is simply not enough interest in the market.  This spells STRUGGLE and most likely you will end up with a garage full of dust-covered product and an empty bank account.

• You have to purchase product each month that you normally would not buy, and which is a financial burden for you and your family.
  
• The product or service is a one-off sale.  The iPod wasn't a huge money spinner because of iPod purchases - sooner or later the market would become saturated and sales would slow to a trickle.  The brilliance of iPod marketing is that people pay $millions and $millions every year in order to download stuff that they continue to pay for.  They don't download because someone hassles them - they are ravenous for downloads!  One sale of one iPod means income into the future.  That's what you should be looking for in a biz op, ongoing purchases that people are ravenous for.  (So definitely check the retention rate for ongoing purchases.)
  
• You have to deliver product to the customer. This won't bother some people, but if you want to grow your business big then it could be a killer if the company doesn't deliver to the customer's door. You won't keep your customers if they have to make a special trip to get the product, and you won't be able to grow your business if you're tied up with administration and fulfillment.
  
• It doesn't actually have a product.  There are lots of schemes, especially on the internet, that are incredibly expensive to get into and maintain, and yet which are glorified pyramid schemes. (Absolutely everything you need to know to be successful online is already available for free.  In fact you'll find an increasing library of free stuff right here.)  I don't know of a single worthwhile network marketing company which charges big bucks to get in.  If they want $thousands or even tens of $thousands out of you, run. 

• There are already too many distributors.  There's not much point if every second person you talked to has joined (or joined in the past and is now totally turned off because of appalling experience).
  
• If your upline can't demonstrate success, they are the wrong upline.  Attach yourself only to a mentor who has already achieved success and who can personally guide you to do the same.  Many downlines fail simply because there is too little support, or the support is unprofessional or plain wrong.  It really does matter who you join.
  
• There is no proper business/marketing training.  Many companies have "training" sessions which are little more than emotional hype sessions.  All this does is send over-excited zealots into a market place where they get burned.  The training should be professional business/marketing training which results in excellent outcomes in terms of product sales and downline acquisition and sustainability.
  
• It makes claims that cannot be substantiated by rigorous 3rd-party clinical trials.  If they are not published in the world's top medical or scientific journals, then run like hell.
  
• It claims to be a science-based or technological company, and yet doesn't have a reputable laboratory, or a recognised team of researchers.
  
• Its scientific advisory board is a litany of small names or second-rate universities. Trust me, if the company has truly made a scientific advance (or advances) its scientific advisory board will include some of the most respected names on the planet.

• The company has no credibility on Wall Street - financial analysts are either completely unaware of it (and they are certainly aware of any company which is in any way successful) or they are actively avoiding it.
  
•  It has a poor or non-existent credit rating.
  
• The company doesn't publish audited average earnings of each level of distributor.  If they are using images of huge wealth to lure you, run, because the truth is that generally less than 0.5% of people actually make a living.  Their honest published earnings will reflect that.
  
• It is young.  New network marketing companies spring up all the time, with founders thinking they have found a quick road to riches.  Most fail fast.  Youth doesn't always mean failure of course, but don't get into a young company without doing what the experts do: check their backgrounds and financials very, very carefully.  If you can't do that, run. Companies that have been around for many years and have the respect of Wall Street have proven their stickability and are more likely (but not guaranteed) to provide better choices.
  
• Their chief officers have poor or no credentials, or have done jail time, or are known to associate with criminals.
  
• They have a location which is secret, or lie about their location.
  
• It's difficult to speak to a real person and there is no reliable support line.  They are slow to do anything other than take your money.
  
• They try to avoid giving people their money back on returned products.
  
• They actually pay bonuses directly for recruiting (I explain why this is catastrophic in the abovementioned book).
  
• When you do a Google search for "biz op" (insert your op) "scam" you're presented with damning report after damning report. I know that people who have failed can really fling the dirt around, and also that there are people who try to discredit other companies by writing garbage, so just because there is a complaint doesn't make it true.  Use your judgement to assess what you discover.

It's quite easy to check out all these factors when assessing a new business opportunity (or your existing opportunity).  My advice if you find yourself struggling in a business which is guilty of any of these transgressions is to stop throwing away money and time, and stop beating yourself up, and go looking for bona fide businesses with a proven track record.  You may well find some here.

If you can afford it, go to your accountant or financial adviser and listen to their good advice.

If you would like to learn more, or would like to consider joining a team that operates professionally and is growing solidly, email me on support@mlmprofessionals.biz.