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Online Business Opportunities: MLM vs. GPT

Guest post by: Ghyslain Lefebvre

Article Overview: If you are an entrepreneur or operate an online business, you have heard of MLM. Multi-level marketing business/Homed Based business is probably the most promoted style of home based business. The idea is to start selling the products of a particular MLM and then recruit other sales people to do the same under you and to reciprocate the action over and over. Over a period of time, on paper, you should be able to build a downline which would provide you with a great residual income. Question is does it really work?

Online Business Opportunities: MLM vs. GPT

If you are an entrepreneur or operate an online business, you have heard of MLM. Multi-level marketing business/Homed Based business is probably the most promoted style of home based business. The idea is to start selling the products of a particular MLM and then recruit other sales people to do the same under you and to reciprocate the action over and over. Over a period of time, on paper, you should be able to build a downline which would provide you with a great residual income. Question is does it really work?

MLM

The principle of MLM is quite simple. You decide you want to start selling this company particular products because they are so healthy and you think everyone should have them. So you start promoting the business and start to earn a commission. Typically, commissions are $2 to $10 per sale. Next, you realize that in order to make a lot of money, you have to start recruiting other people to do the same as you. This would build you a downline so you can earn a commission of their sales as well. Each of the people realizes that they need to do the same to make money so they go off find people to build their own downline. After a while, you are reaping all the benefits from everyone in your downline. In a sense, it almost like free money.



The Drawback of MLM

Let's say your best seller decide that he could make even more money if he/she was even higher on the food chain of your downline. So he/she decides to find another MLM opportunity where they could be at the top. Once they find it, they go recruit everyone in your downline and bring as many as they can using the same thought process and they explaining to them that they would be higher on the chain and therefore would make more money. That leaves your entire downline empty and you to rebuild it again.

That is not the worst; let's say your former top salesperson joined a similar MLM who sells similar products. Now you have more competition. Another big drawback is the compensation plan. Not only you have to sell a lot of products to be successful. $2-$10 commission per item average, so to make $5,000 a month, which means in the best case scenario, you would have to make 500 sales per month.

Other mishap that can happen is: Let's say you joined a well known MLM about 6 months ago. During those 6 months, you worked hard to start and build your business. You are now making anywhere from $300-$500 a month from your business. The MLM business you are with, decides to change the commission program. Someone, in your up line (above you in the food chain) does not like the changes so he/she decides to move on with another MLM company and with the click of a mouse; he/she takes most of your downline using the same technique as your best salesperson did earlier. Again, you are left rebuilding your downline.

GPT: Get Paid Today

They are some variation to the GPT model vs MLM. With a GPT model, you do not have to build a downline. So you have no risk of losing your team to anyone. You promote a top tier product and get paid today for the work you do today.

Next is the product you choose will be of very high value and therefore your commission will be very sizable. ($1,000 to $7,500 per sale average commission). To ensure your success, this company will provide you with the best education, training and marketing tool you need. Your mentor will be an active successful online business marketer. You will be able to make a lot money right from the start if you want.

It is not uncommon at all to see new marketers make more than 5 figures a month within 90 days. Of course, some people do not make money with GPT. Those people are the ones that are not motivated or committed to their success. This business model is the way for you to make money on the internet in today's economy.

To your financial future; Sincerely, Ghyslain

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Article Tags: building an online business, home based business, home based business, MLM, networking, new online business, online business, online marketing, start an online business, successful entrepreneur, training



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