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  1. #1
    Join Date
    Jul 2005
    Location
    Northern, California
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    16,985

    How do you research a business?

    When you're interested in a Business or "opportunity", where do you go to "verify" and confirm you're suspicions and concerns? Pros and Con?

    Here's a good link, and a good place to start your "Due Diligence;
    http://www.mlmwatchdog.com/MLM_DUE_DILIGENCE.html

    Any other suggestions to assist the process of uncovering a Scam! :eek: , or a Gold Mine!! :D

    Thanks for dropping by!

    I hope you learned a little something that will help. I hope to learn as well!

    Looking forward to seeing your posts on your "Due Diligence" process.

    Kerry

  2. #2
    Join Date
    Jun 2006
    Posts
    3,120

    Re: How do you research a business?

    For none MLMs
    First you go to whois information. If website info is public you try to find if it is real. What other websites are registered under the same name or address. Is phone number real. What country website is registered in.

    Then you try to figure out if business is a ponzi / illegal pyramid by analyzing what they promise and at what interest rate you would be able to get the same money otherwise.

    Then you eliminate chain letter, advanced fee, processing fee and other Nigerian scams.

    Then you try to Google some exerts from their front page to see if they are just copied from other website.

    And so on.

  3. #3
    Join Date
    Jul 2005
    Location
    Northern, California
    Posts
    16,985

    Re: How do you research a business?

    Quote Originally Posted by borisf96
    For none MLMs
    First you go to whois information. If website info is public you try to find if it is real. What other websites are registered under the same name or address. Is phone number real. What country website is registered in.

    Then you try to figure out if business is a ponzi / illegal pyramid by analyzing what they promise and at what interest rate you would be able to get the same money otherwise.

    Then you eliminate chain letter, advanced fee, processing fee and other Nigerian scams.

    Then you try to Google some exerts from their front page to see if they are just copied from other website.

    And so on.
    Thanks, Boris!

    Then you try to figure out if business is a ponzi / illegal pyramid by analyzing what they promise and at what interest rate you would be able to get the same money otherwise.
    Care to elaboratre on the math? Aren't they like comparing Apples to Oranges?

    When you say "otherwise" do you mean Stocks, Bond, Mutual Funds, IRA, etc... ie, conventional "returns"?

    Kerry

  4. #4
    Join Date
    Jun 2006
    Posts
    3,120

    Re: How do you research a business?

    Quote Originally Posted by ohein56
    Thanks, Boris!



    Care to elaboratre on the math? Aren't they like comparing Apples to Oranges?

    When you say "otherwise" do you mean Stocks, Bond, Mutual Funds, IRA, etc... ie, conventional "returns"?

    Kerry
    Yes. For example if "company" offers you to "invest" $20,000 and promises return of $3,000 a month for life or buy you a house next year, you can conclude that it is ponzi.

    I would generally assume that anything "guaranteed" above 20-25% return on investment can not be real. Credit cards generally charge not above 25-30% on their riskiest customers. And they operate on risk limit for financial industry. You just can not guarantee returns above this level.

  5. #5
    Join Date
    Jul 2005
    Location
    Northern, California
    Posts
    16,985

    Re: How do you research a business?

    Quote Originally Posted by borisf96
    Yes. For example if "company" offers you to "invest" $20,000 and promises return of $3,000 a month for life or buy you a house next year, you can conclude that it is ponzi.

    I would generally assume that anything "guaranteed" above 20-25% return on investment can not be real. Credit cards generally charge not above 25-30% on their riskiest customers. And they operate on risk limit for financial industry. You just can not guarantee returns above this level.
    I would avoid any business that, as you say, "promises the moon" so to speak.

    If any business had such a high return you'd be hearing about it on all the financial news programs as the up&coming hot pick etc...

    Just like the exagerated health claims, if the product did what they claimed, we'd hear about it from CNN's HealthWatch, AMA digest's, medical Research bulletins, or MSNBC etc..., NOT your friendly neighborhod NWM distributor!

    It's just Common sense! ...not that common, I guess!

    Kerry

    Kerry

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