How do you do due diligence when investing in a network marketing company?

Question by HealthyMom: How do you do due diligence when investing in a network marketing company?
I have an opportunity to invest money in a start-up network marketing company. I’d like to do some research on the management team but I’m not coming up with any good info through the search engines. Can someone tell me how to judge whether this would be a good investment?

Best answer:

Answer by Scott K
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.

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