MLM Vs GPT
MLM Vs GPT
Towards the beginning of the year I did an article about MLM Vs GPT. In it I explained the decline of MLMs and the rise of GPTs.
Now before you all jump to the defense of MLM’s, go and read the article. MLM Vs GPT
Ok, from the article and the comments you will see that the majority of people believe that people should do both MLM and GPTs and I agree.
The question is which one do you do first?
The Journey of Most MLMers
Most people start their home based business life by being introduced to an MLM company.
They get sold on the end result of what can be achieved with MLMs and they sign on the dotted line.
They then hit the MLM wall where nothing that was promised and taught seems to be working out.
This is the point that most leave, crawl back under their rock and continue to live the life they so desperately want to escape.
The determined jump online searching for answers.
The saying “be careful what you ask for”, is very true. They get covered under a mountain of answers to their questions.
Whilst sorting through the mountain of solutions they come across high tier companies (GPTs) which sound much more rewarding than MLMs.
Money Is A Huge Issue – FACT
Lets put providing value and helping others reach the promise land to one side for a minute along with the lifestyle you want to live and your big why.
With those to one side what we have left and what is the underlying key factor in why we are in any business is MONEY.
Money isn’t everything but its right up there with oxygen – Zig Ziglar
We can’t live the lifestyle we want without money. We can’t fulfill our ‘whys’ without money.
MLM Vs GPT What Is The Difference
In its simplest form MLMs provide you with long-term residual income.
GPT’s provide you with a big one-off payout up-front per signup. It is not residual.
With MLM’s overtime you will be able to afford to do less and less work and get paid more and more as your business grows.
GPT’s you have to keep marketing to keep the money flowing.
The Effort Involved
Now this is the interesting part. This is the real crux of the debate.
It takes the same amount of work to produce a lead whether it be for an MLM company or a GPT company.
It is same amount of work to convert that lead into a customer and onto a business partner.
If you are doing PPC, banner ads or any other paid advertising to get a lead for an MLM company then it may take you a long time to break even.
(Yes I know the answer to this is your sales funded marketing system.)
Free marketing methods will take you longer to get the lead, then you will still have to go through the same processes to get an actual business partner.
The sales funded marketing system is the same marketing system you will use to get a GPT partner. The difference now is when you bring a new GPT partner on board you get a big pay out compared with a much smaller auto-ship via MLMs
(Some MLMs pay you nothing for growing your team, you only get paid from the efforts of your team)
This big pay out will enable you to invest more in paid advertising. This investment will get you more leads which you convert to more signups, which means you make more money faster.
The financial turn around is much quicker.
Lets face it we didn’t get into MLM expecting to wait 5 years (most times longer) until we really get paid (leave the day job paid).
Which One Do You Do First MLM Or GPT?
Back to the question.
Now that you can see where the ‘faster’ money is, it makes sense to me to swallow the high tier GPT pill and make some bigger money sooner. Then invest some of your big money in growing your MLM business.
Win Win!
Note: I am not saying that you cannot make big money with MLMs online, of course you can, but it will be much slower and you will spend a lot more to achieve it.
Join the debate, let me hear you views.
Dwayne
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{ 22 comments… read them below or add one }
Hi Dwayne,
Well I assume that we are all in this business to life the dream lifestyle whatever that will cost in financial terms and I am all for achieving that ASAP. My take is simple, when you understand the principles of marketing then you will know how to market anything so why not choose that which will give you the best return?
~Marcus
Wow – Big debate material.
Personally I feel that it is important to generate “cashflow” as soon as possible so you can actually last in the game. Most people drop off after 60 days becuase they don't “see the money”.
I say, hit the GPT money early to generate large cash flow, then when you are “comfortable” start to re-invest that capital into building that “true pension money” via MLM.
Bring on the hecklers!! – ha!
Wayne Vassell, signing out…
Twitter: Josh_Garcia
May 27, 2010 at 15:41
Hey Dwayne,
Both have the advantages. However, if you are doing marketing then of course you want to get paid up front to offset that marketing. Now, for long term revenue you want to focus on something that is going to bring in residual income. That is why I say that both are important when building a business.
This is a great question to ask, Dwayne.
One thing I think people overlook when they get into online marketing (whether for GPT or MLM) is they try to compete for the same piece of the pie as everyone else.
For example, why not take your Internet Marketing skills and charge Realtors to help them get leads? Or Chiropractors, or Dentists, etc…
You're building relationships, sharpening your craft, AND getting paid today!
Interesting debate Dwayne. You are right that we do need money in the present moment. In fact we will have to fund certain things in developing our MLM. I know from bitter experience how destructive it is to be in a poverty trap. Probably for most people a regular JOB will be what keeps the cash flow healthy. I'm not sure about putting too much energy into GPT when the same effort could be building your MLM.
in the same way as I believe it is a mistake to do more than 1 MLM, would a GPT & an MLM conflict?
Always enjoy your blog.
Nice Dwayne,
I hadn't thought of it that way before but it does make sense. I think sometimes people get pretty loyal to what their doing so making a change isn't easy.
I've talked to some GPT people who say they will NEVER EVER do MLM. Spitting those 3 letters in disgust. And die hard MLMer's generally aren't interested in GPT. To stop and take a rational look at both sides, and that they each DO have pros and cons, takes a higher caliber of person.
I like the point you made here, using them both to your advantage.
Cheers!
Susanna
I am top tier all the way. My wife handles the mlm. But I do feel I need to say, that their is residual income in top tier. Just not as far down the line as mlm. I have made as much as 4 grand a month off of my downline. And that is being in the company less than one year. So don't completely knock the residuals from top tier.
I think this is a great question and one that people really need to think about. Thanks for stirring the fire Dwayne.
Hi Dwayne,
Great article. One quick suggestion – I had to google GPT, call me a newbie but I had no idea what that was. I think you would throw less people off stride if you gave a quick definition right upfront.
Article was great! Enjoyed it and learned something about how to start making money online.
Thanks,
Alan
Hey Marcus
Well said. Once you have the skill to generate an income from your marketing, you should be making the most of that skill.
Likewise Wayne.
GPT gives you more freedom to acquire what you want quicker, even when it comes to building an MLM business
Hey Josh
Both is definitely the way to go so you cover all bases
Derek 'Outside The Box' Alvarez
I think you should make this idea into a post!!
Hey Charlie
I wouldn't suggest doing both (unless you were confident that you could). What I suggest is doing the one which brings you the most money first, GPT. Then move onto building your MLM. You would be in a much stronger financial position to really get MLM business flying.
I am glad you like reading my post Charlie. I like and appreciate the varied points of view which I get back. I learn a lot from them. Thanks for passing by.
Hey Susanna
I can understand the mentality of the GPT folk. When you can make $2-5-10k on one sale that is a very attractive pull to not even consider the $50-$100 MLM auto-ship. The thing to understand is that there is benefit in both, when used wisely you can make a great lifestyle from both, multiple streams of income.
Nice family split there Chris. I do admire the way you and the Alvarez's work together as a family in business.
I am aware that there are residuals to make from GPT which is truly a great thing, if only it went as far down as MLM, there would be no need for this post. Ha.
Hey Alan
Welcome to my online world.
Sorry for not making GPT clear (it was explained in my previous post, the link at the top of the article).
I appreciate you Googling it, then coming back to comment. Shows you have a keen interest.
Hey Dwayne,
Interesting debate. I'm with Charlie – get a JOB if you need money, unless you are job-phobic. GPT is still a business that requires time and effort to learn and won't be an answer to money problems. In my opinion, it is totally different from MLM and attracts a completely different group of people, who wouldn't be very good network marketers because they are so focused on the money (generalising here). MLM is much more people oriented and I find that a lot more satisfying.
Live Large,
Wayne
Personally, I don't see a need to choose one over the other. I chose to leverage the advantages of both where it makes sense. While MLM is my longer term commitment, GPT allows me to fund other marketing campaigns and training.
I think this is thought provoking topic and should yield some diverse perspectives.
Thanks for putting this topic out there Dwayne!
-James
GPT is easier to get fast money no doubt, I personally am all about the back end as money was never the issue for me.
I suffer from something worse than being broke… being time poor! (ok maybe not worse but close)
Do what you can get excited about I say.
Thanks,
Matt
Hey Matt
Great advice
Hey James
Both is the way to go. If you have the skill to make both happen, why not use that skill to its fullest (in my opinion).
Hey Wayne
I totally hear what you are saying.
My take isn't aimed at the desperate, it is more aimed at those who have the commitment, mind-set and discipline to learn what is required to generate an income online. Obce they have the ability, my view is to make the most of that ability by generating an income from both, with GPT first as it generates the most income.