Monthly Archives: July 2015

Never Join an MLM Without Researching the Leadership

DomainsByProxyOne of the most important things to consider before joining — or especially investing a significant amount of money — in an MLM opportunity is the leadership of the company.  If you can’t readily find out who the founders, executives and top leaders are, that’s a red flag.

I regularly read Behind MLM, and there’s just been a flurry lately of companies not being transparent about the leadership/ownership of the company:

  • HopRocket – “Unfortunately pending full disclosure by HopRocket, the executive management structure of the company is currently unknown.”
  • Hits & Wealth – “There is no information on the Hits & Wealth website indicating who owns or runs the business.”
  • Lucky5 – “Despite Lucky5 being widely promoted through Facebook, there is currently no information on the website advising visitors who owns or runs the business. Nor have I see this information disclosed in any Lucky5 marketing material.”
  • Kino Box – “There is no specific information on the Kino Box website indicating who owns or runs the business.”

And that’s in just like the past week!

As Oz puts it, “As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

Now, what if you can find out about the leadership, and they have some questionable things in their past?

That’s certainly a yellow flag, and you should consider it when making your decision. But people also make mistakes, and learn from them. And some people get wrongly accused, often very publicly, by others. Very few people are squeaky clean, in this industry or any other. Someone will always find some dirt, or make it up if they want to.

What you have to try to figure out is whether what they did was a one-time mistake that they learned from, or a pattern of behavior. There’s of course no way to know for sure what that means in terms of their future performance, but it’s still an important part of your due diligence.