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Diligence is needed when making a decision to become a network marketing distributor and before choosing a network marketing company and should not be taken lightly.  You will be investing time and money to build your own micro home based business company within the larger structure of a network marketing company.  Your due diligence is paramount.

Although, not all inclusive, consider answering the following questions to help you with your decision making.  Many of these questions can be answered by people in your up line and if not, use the internet and scour until these questions are answered.  Then look at your answers objectively.  If you find too many ‘red flags” this is not the network marketing company for you.  Move on and find another.

  1. Products Diligence

  • Do you LOVE the product through and through?
  • Are you revved up by these products……do they get your heart racing?
  • Do you have a personal testimonial of how the products work for you?
  • Have you used the products for more than a month?
  • Are the products easy to use?
  • Does the company have a money back guarantee?  What is it?
  • What’s significantly different about these products from what’s already on the market that would have customers buy?
  • Are products consumable?
  • Will your customer be a return buyer month after month?
  • How many products are there under this brand to choose from?
  1. Market Diligence 

  • What’s the market for these products?
  • Who would use these products?
  • Are the products riding a trend or in front of a trend?
  • What’s the industry market projections for this product in 5-7-10 years?
  • Is there a large potential customer base for these products?
  • Do people already spend money on this product?
  • Are you limited to recruiting by region?
  1. Purchase Requirements

  • What’s the membership fee?  Is it a one- time fee or do you pay a distributor fee each year?
  • What are your monthly/yearly purchase requirements to stay as an active distributor?
  • What is the cost for access to websites?
  • Are you required to have inventory?  How much? What does that cost on a yearly basis?
  • Are you required to go to yearly company events? What’s that cost to you? Hotel, Travel, food….
  • What are the purchase requirements of your customer?
  • Is there a flexible auto ship program?  Can your customer delay shipments?
  • Is there a preferred customer discount?  What is it?
  • What does it cost to become a preferred customer? Is this a onetime fee or yearly?
  • Are you required to do parties or clinics with your customers?  Do you want to do parties?
  1. Resources and Training Diligence

  • Is there a training system in place for new recruits?
  • What marketing material does the company provide you? Videos, DVDs, Scripts, Presentations?
  • Can you access presentations on mobile devices?
  • Does the company supply you with free samples?  If not, how much are they?
  • Does the company supply you with free catalogs?  If not, how much are they?
  • Do you have access to national, local company presentations?
  • How often are company and team conference calls?
  • What support and training will your up line provide?


  1. Compensation Plan Diligence

  • What sales volume must you reach each month to be eligible for profits and commissions?  Can you meet that volume?
  • What is the profit margin on personally sponsored sales?
  • What is the commission structure on personally sponsored sales and team sales?
  • What’s the percentage commission on sales of your team.
  • How wide can you recruit?
  • How deep are you paid commissions on?
  • Is there a break away structure?
  • Does company allow for grace periods?  How does that work?
  • What’s the roll up structure?
  • How often are you paid?
    • Does company have bonus programs? What are they?  What sales are required to be                                                                                     considered for bonuses i.e. trips, cars, merchandise?
  1. Management Team and Ownership

  • Who are they?  Is there brand recognition?
  • Who owns the company?
  • Who are the CEO and President?
  • What is their record in the industry?
  • What’s their prior record of success?
  • How fast is the company growing?
  • What are their expectations for global expansion?
  • Have they already expanded globally?  What countries?
  • What’s the company culture?
  • What are the company’s financials?  Are they in the red or black year after year?
  1. Automated Systems Diligence

  • Will you have access to a robust business tracking system on the internet?
  • Does the company tract your customers and sales
  • Does your customer have access to websites to make changes to their purchases independently?
  • Does your company provide reports to its distributors on a monthly basis?
  • Is the payment system automatic?
  • Are products dropped shipped to your customer?  Or do you have to send out?  What’s that cost to you?

Again, take the time and be diligent before choosing a network marketing company. You will be so glad you did.

Curious, what’s your experience with your due diligence?


Dallas Piana

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Dallas Piana

Dallas Piana

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