Fashionable in recent years, the direct sales system GPT is more used, unlike the MLM. Small classes in marketing on both systems.
MLM - Multi Level Marketing
The system known as direct sales, known as "multi-level, 100% legal in the world (except perhaps North Korea?). The system is to sell a consumer product, low prices, affiliate distributors and receive remuneration based on volume of sales distributors affiliated to one or more levels. It is a serious type of business, which requires several years of development to generate significant revenues (€ 200k + annually). It is quite possible both to generate thousands of dollars in the first months with profits and sales in the first commission checks.
Such a company usually costs around € 100-300 initial investment (excluding inventory).
The GPT - Get Paid Today
Rapidly expanding, this system has the "advantage" to allow very large gains in the early months. Indeed, instead of investing 100-300 €, it is investing € 2.000 to 5.000 once and then resell the same investment for other "distributors". There is in fact almost never the final consumer. The advantage is that selling an opportunity to 2.000 to 5.000 €, you will receive directly from € 1.000 to 2.000, from the beginning, instead of reaching a small percentage of the monthly volume of your new distributors as is the case in a MLM.
The law in Franche
In France and most European countries, the law is very clear:
In a business opportunity affiliate independent distributors, it is absolutely forbidden to generate income during the affiliation of these distributors. The income should depend only on the consumption and sale of products to final consumers. The GPT system is absolutely forbidden, and that is why these companies that are present on the French market has no formal presence, but are still domiciled in the United Kingdom, USA or elsewhere.
For more information about the differences between MLM and pyramid, I suggest you read the article in question.
Financial Independence
Financial independence as described by Robert Kiyosaki is the ability to stop any type of gainful employment and to continue to receive stable income or increasing month by month.
When you run into a GPT, you must join the new distributors every month to earn an income. If you can join 10 distributors per month, you get very quickly an income above € 10k monthly. But when you stop, the income also stops.
In MLM, although the income "residual" (commissions on the volume generated by your distributor) is thin at the beginning (a few tens or hundreds of €) after a few years that income continues to grow even if you do not provide any more effort (so it depends on the effort of your organization). Since everything is based on consumption and the retail end, your monthly check depends on several thousands or even tens of thousands of satisfied customers, instead of depending on a dozen new distributors every month.
So what to choose? GPT or MLM?
If you are looking for a plan to save money in a few months or years, the GPT has the most interesting (if you live abroad or if you're willing to engage in illegal activity in France).
If you want to build economic stability and even a retirement plan for you and your family, the MLM is more appropriate (and is taken into account by the Ministry of Labour regarding secu, retirement, and can combine with the assedic!)
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