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Welcome to the “Coffee House Letter”
This copywriting MASTERPIECE was originally written by Mike Dillard (Creator of Magnetic Sponsoring) to expose hidden unspoken realities of the fatally flawed “MLM” business model, that the vast majority of industry distributors and participants are completely oblivious to…..
……First written on a napkin in a coffee shop in Austin, TX, Mike explains how the Internet and other factors you will read below, have crushed any chances of creating a sustainable long-term residual income with MLM in the digital age.
The concepts and factors Mike explains here details why I personally choose to not build “MLM’s” anymore or recruit anyone into low ticket “downline” opportunities that promise the dream of Freedom and Lifestyle and 99.9999% of time deliver more of a nightmare of dead-downlines, tiny commissions and constant attrition….
And why I choose to build a G.P.T business (you will learn what GPT means when you read the letter below, to make more money with fewer team members, less headaches and create a $10K per month income in a matter of months, rather than years.
The Coffee House Letter
By Mike Dillard
This Is A MUST READ for Home Business Owners or Anyone Wanting to Work From Home…
If you’re looking to achieve financial freedom from home, specifically through an “MLM” or network marketing opportunity, you’re in for a rude awakening my friend.
If you’re already in that trench, fighting with every breath you’ve got for much less money than it’s worth, it’s not your fault… the times have changed.
What we’re about to share with you right now may anger some, but will help countless others.
You see, the industry is changing rapidly and the purpose of this “Coffee House Letter” is to warn you, or at least make you aware of some very unsettling insights that need your immediate attention if you plan to make more than $10,000/mth from home in 2010 and beyond.
Whatever you do, read this document thoroughly. We took out every sentence that wasn’t relevant to keep the length as short as possible, so if it’s in these pages, consider it information that is absolutely vital.
Now we’re going to go ahead and assume that you’re either pursuing a home business of some kind right now, or that you have pursued one in the past. If you’re in neither group, then consider yourself extremely fortunate, as the information in this letter will save you years of blood, sweat, tears and money.
So, what’s going on?
Well, in a nutshell, the promises of old-school MLM and “life-long” residual income are all but dead for the average person. They have been cut down at the knees by an unlikely culprit whom I’ll reveal to you in a minute.
I know you’ve seen the symptoms. In fact, I guarantee they are plaguing your organization at this very moment… but what you might not understand or give proper respect to is the cause behind them.
My Questions to You Are These:
Is your organization being depleted by constant attrition?
Is your downline full of complaining reps who need constant hand-holding?
Are you tired of working your tail off for a few hundred or a few thousand dollars when you feel like you should be making ten times more for your efforts?
Sick of the “gotcha” comp plans that cut your check in half with the “get 3, who get 3, who get 3,” structure requirements?
I hear you my friend… and you’re not the only one.
Right now, network marketing is in a struggle to find itself in a time where people leave as fast as they join, the cost to sign up a new rep has sky-rocketed, and when “newer, bigger, and better” dominates the landscape which basically means…
Trying To Build A Downline In The Internet Age Is Like Trying To Fill A Leaking Bucket
You can get ahead of the curve for a while if you have the time, money and energy, but it’s only a matter of time before it will drain you dry.
Yes, it’s a brave new world for network marketers, but fear not…
In an industry where hype and the pre-launch have become the norm, a growing trend is quickly gaining popularity with professional networkers who are sick of the 3-ring circus MLM has become.
It’s a Concept Called G.P.T. And It’s Going To Play A Major Role In Networking From This Point Forward
No, G.P.T. is not a company. It’s not an opportunity, and it’s not a product or system of any kind.
It’s an answer. A solution to tiny checks, leaking downlines, and the “quick turn” mentality that has taken over MLM.
It will allow you to put tens-of-thousands of dollars of cash into your pocket in weeks and months… not years. But the best part about G.P.T. is that you won’t even have to build a “downline.”
MLM as You Know it is Dead…
And the Internet Killled It.
Network marketing has always been based on the idea of working for 3-5 years and building a life long residual income that you can will to your grand kids.
And it may have been true at one time, but not today. Not anymore.
Now, now… I’m not insane.
Let me show you what I mean by such a (true) statement…
Stand with me for a moment atop our private mountain, and look out over the entire network marketing industry…
It’s not pretty, but in one word here is what you’ll find:
A finite group of people who are traded like cattle from one company to another every 9-12 months.
They were once called junkies, but the infection has spread to people above that description.
Network Marketing has become obsessed with “timing,” “pre-launches” and “the next big thing” but the cause behind that obsession is what truly scares me. I’ll explain why shortly, but all you need to realize is that…
Pandora’s Box has been opened and we will never be able to close it.
Why? What’s causing this gruesome condition?
The Answer Is Simple…
The number of new people coming into MLM each year is now drastically out of proportion with the number of new company start ups.
Thousands of new MLM’s launch every year thanks to the Internet. You can literally start your own company from your bedroom if you want.
But there are only so many people to go around.
Welcome to the world of the “Pre-Launch.” A company’s only chance to catch the attention of networkers, and steer them away from their current opportunity with the promise of “getting in on the ground floor.”
Before you know it, the game has started AGAIN. This time around a company that promises to be the biggest and best with their new patented Wonder Vitamin 2000 that will change the world.
Networkers inevitably flock to it by the tens of thousands trying to “get in on top.”
And if they don’t, it doesn’t matter because another shiny new MLM will launch in about 9-12 months, and when it does, and the music stops, the people at the bottom scramble to find their seat in the chain, destroying their old company from the bottom up in the process.
This has resulted in a vicious cat fight between these companies over a dwindling supply of warm bodies, complete with name calling, back-stabbing and an endless supply of lawsuits.
Make no mistake about it… in network marketing, people are the commodity that is traded, and YOU are very valuable.
The “B-Zone” is Gone and
Took Your Residual Income With it!
Before the Internet, organizations and companies were protected by an information buffer zone which shielded them from this onslaught of people, opinions, competitors and ads.
It’s this buffer zone that allowed relationships to be built, skills to be learned, and loyalties to be strengthened.
But the Internet destroyed it in the blink of an eye.
It happens all the time…
You’re sitting pretty on top of a fairly large organization. You think you’ve finally found that “residual” pot of income gold at the end of the rainbow.
You’re making about $20,000 a month. You quit your job 5 months ago, bought a new house, the new sports car you’ve always wanted and paid off all your debt.
Life is good…
Then one day, the company changes their compensation plan just a little bit.
One of your leaders is NOT happy about it. They decide to move to another company, and with one click of a mouse… with one single email to his list of a few thousand recipients upline, downline and sideline… he basically destroys dozens of people’s businesses, cutting their checks in half or even worse… including yours.
The income you’re relying on to pay the mortgage, invest for retirement, and put your kids through school literally vanishes overnight.
If something similar to this scenario hasn’t happened to you yet… it will.
It’s a sobering thought when you realize that your lively-hood in an MLM business is completely dependent upon strangers you’ve never met.
You don’t know their long-term plans. You don’t know about their family problems, and you don’t know what they’ll do next, yet your check is dependent upon them and thousands of others just like them because you simply cannot earn a full-time living on your own personal efforts with an MLM compensation plan. It’s not designed for that.
This wasn’t a problem in the past, but it is today.
You see, the internet is a tool that allows communication at a level that has never been seen by the world before, where opinions, rumors, promotions, and advertisements can now spread across the globe faster than you can blink your eye.
Massive revenues can be gained or lost in days for a company with nothing more than a well placed negative opinion report on the search engines.
Downlines can be destroyed overnight by false rumors or leaders who jump ship.
Distributors have instant access to an endless supply of tools, systems, leaders, training, opinions, and sales pitches which continuously plant seeds of doubt, and distract them with promises of better, faster and easier.
Competing ads can be flaunted on the very door-step of a company’s search engine results.
And There’s Nothing You Can Do About It.
The very moment your new distributor feels frustration… feels trapped… feels failure… he or she will instantly open up to the endless supply of alternatives filling their inboxes on a daily basis with the very thing that will cure their pain – “poof”, they are gone.
There is no long-term commitment because networkers are only as loyal as his or her options, and thanks to the internet, their options are now endless and on click away.
If you’re a leader in the industry, you know exactly what I’m talking about and from this point forward, it’s never going to stop.
For better or worse, this is the new reality of network marketing.
How the Game is Played Today:
The first and most critical observation to note is that the very economics of MLM are changing. The cost of sponsoring a new rep in the cold market continues to spiral upward, while the actual return and “lifetime value” of that rep continues to decline.
We are faced with the fact that…
*Full page ads in an industry magazine that cost $500 eight years ago, now costs $3,000
*Email marketing is dead, and the ability to advertise in a massive, targeted, and affordable way died with it.
*You will be forced to recruit everyday for the lifespan of your business just to combat the constant attrition that will plague your organization.
*The all important practice of retailing has become taboo, putting 90%+ of the focus and attention of the business on recruiting instead of customer acquisition which is where the long term, stable money is found.
*The industry holds less and less appeal to the white collar business professional who has a hard time seeing how he’s going to quickly replace a six-figure income peddling vitamins and fruit juice.
*Systematic team training has become next to impossible as new systems pop up from different leaders within the same company every 30 days, which promise to be the answer for the struggling newbie.
*Instead of focusing on the development of personal skills and a single system, and “I’ll try this for a few weeks”, lottery mentality for lead sources, websites and magical tools that will “build the business for you”, has taken over.
So What Now?
Well that’s the million-dollar question, isn’t it?
You know… I have to be honest. There is no right or wrong answer.
It really all depends on what you personally want out of your business, and if you’re willing to deal with the negatives that come with an MLM these days.
If you’d like to build a new business every 9-24 months… hey, go for it. There’s LOTS of money to be made quickly in MLM right now. It’s just not going to last anywhere near as long as it used to and you’ll probably find your business receding just as fast as it grew.
As for us, that kind of merry-go-round has no appeal because we’ve cut through the hype and come to a sobering conclusion…
It doesn’t matter what company you build in MLM. You’re going to face the same challenges we just mentioned above in all of them. The industry itself has changed, and you’re never going to find a single product or compensation plan that will fix it.
I’m sorry to say, but the promise of life-long residual income is all but gone. There’s the rare 1 in 1000 exception, but as a whole, network marketing has turned into a 3-ring circus of “quick-turn” building driven by greed, hype, and fear of loss where only the true, incredibly skilled professionals can reliably make any significant amount of money.
We’re tired of the jumping, the attrition, the rumor control, the babysitting, having to explain why one opportunity is better than another. Dealing with prospects who think $300 to start a business is too much money, seriously…
It’s just not worth our time, it’s not fun, and we know for a fact that a quickly growing list of industry professionals are coming to the same conclusion which is opening the door to the concept of G.P.T.
If You’d Like To Make More Money Faster Without The Financial Risks Of A Downline, G.P.T. Is The Answer You’ve Been Waiting For.
It’s actually been around a few years already, but G.P.T. is quickly becoming THE solution for the challenges facing network marketers in the internet age.
G.P.T. stands for: “Get Paid Today“, which is a concept that summarizes the growing change of focus in the MLM industry from a long-term residual income, to immediate leveraged income.
The Premise of Get Paid Today Is Simple:
If networkers are going to bounce around from program to program… if competing companies are going to advertise on your front door with a “better/cheaper” product, and if the cost of sponsoring a new rep continues to soar, then the answer is simple:
Get paid a year or more worth of residuals on Day One no matter what happens.
*In the age of the internet, distributors come and go like the wind, so Get Paid Today.
*“Bigger and better” opportunities launch every six months, taking a piece of your downline with it, so Get Paid Today.
*Money is worth more in your pocket today than it is next year, so Get Paid Today and invest that cash into real residual income streams outside the MLM circus like real-estate or the market.
*It costs more than ever to advertise and sponsor a new rep, so Get Paid a year or more of residual income Today, instead of waiting for the $5.00 commissions to roll in over months or years.
*Most networkers are only employee minded people pretending to be entrepreneurs, which means they’ll rarely do what it takes to be successful, so Get Paid Today for your time and training whether they build a business or not.
*White collar professionals aren’t interested in working 3-4 hours a night selling vitamins for a $500 – $1,000 check, so offer them a vehicle that they can Get Paid Today, and realistically make $10,000/mth with just 5-10 customers a month.
*Building a MLM that pays out $10,000 per month requires building a downline of thousands. Get Paid Today and make $10,000 with just 10 customers or less.
Do you see how profound this concept is in today’s MLM environment? How it solves all of the problems network marketers are facing?
This compressed and rapid flow of income also brings the dream of “working from home” to reality in a realistic manner for the average person.
G.P.T. Models Are Currently Found in “Top Tier” Opportunities.
We call them “Top Tier” because of the caliber of people they attract, and the high-level incomes they can produce compared to traditional MLM.
Most, (but not all), are characterized by a “Two-Up” compensation plan, a product or service that is retailed in the $1,500 – $2,000 range, and pay out a $1,000+, up-front commission on the sale of that product or service.
One of the primary objections made by networkers against Get Paid Today, Top Tier programs is that there’s no residual income.
But Is That True?
Well as this business model develops, residual income has been integrated into several compensation plans already, but there’s another angle that needs to be considered regardless of that…
When you make a $1,000 commission, it’s like you’re getting paid a year’s worth of residuals up front on Day One with a product purchase, whether the new rep goes on to build a business or not.
How large of an organization would you have to build in order to make $4,000/mo in a traditional MLM?
500? 700? 1,500? 2,500?
Pick a number and the double it because 50% of your people will cancel their product orders within 3 months.
What will you do when, (not if), one of your leaders walks out for another deal and takes half your team with them overnight?
We all know darn well that only 1 in 500+ will ever go on to build a team of over 500 reps, yet we’re all selling an “easy way to work part-time and replace your full-time job.”
You know it. I know it.
How many customers would you need in a Top Tier program to make $4,000/mo…?
Drum roll please………… 4.
One customer a week to make an extra $48,000 a year, and that doesn’t even figure in the leverage of the actual compensation plan which can multiply that number by a factor of 10 or $480,000 per year with just 1 new customer per week. (We’ll actually show you these numbers in detail in just a few minutes).
That my friends is an honest sell when you offer to provide someone a vehicle to replace their income.
The bottom line is that in today’s MLM environment, you must make enough from your personal activity to justify your time and involvement because you’ll just continue to spend more money than you make if you don’t.
That leads us to another important consideration when it comes to “residual income”…
Get Paid Today Because That Money Is Worth More Today.
Consider this for a moment…
Let’s say that you work your tail off for a year and build up an MLM business that paid you an average of $3,000 a month residually for the next 3 years. That’s a total payout of $108,000 paid out over 3 years. This will never happen because you’ll experience attrition and that check will shrink each month, but we’ll go ahead and stick with that number anyway to keep things simple.
So $3,000/mo for 3 years… not bad, but is that really the smartest route to go?
Or would it be better to work a business that paid out all $108,000 in the first 12 months without the “residual?”
I think so…
Why? Because that money is worth more today than it will be in 3 years.
Now you can take that $108,000 and invest it in REAL, long-term residual assets like real-estate, mutual funds, stocks etc…
I’d rather have $108,000 invested into real estate or a mutual fund than siphon off $3,000 a month for 3 years (especially when I know that money can disappear over night if one of my leaders jumps ship).
Heck, if you want the “illusion” of residual income, take the $108,000 made in 12 months, put it into a money market account, and the instruct your bank to transfer $3,000 of it into your checking account each month.
No disappearing downline or dipping sales volume to worry about, and at least you can make some interest on it for a few years.
Get Paid Today. Why wait on $5 Mickey Mouse commissions to drip in when you have no idea how long it will last? Get a year or more of that money up front on Day One, and then do some real damage with it outside MLM.
Which Costs More: A Top Tier Opportunity, Or Traditional MLM?
The second common objection to Top Tier programs is the start-up costs are “too high.”
Actually, they are much less expensive than a traditional supplement based MLM. The average start-up cost and monthly autoship order of a traditional MLM is about $200. That comes out to $2,500+ a year when you factor in taxes and shipping.
A Top Tier program is usually a one time expense. One time, and you’re done.
By the time you hit your third year in traditional MLM you’ve spent over $7,500 on vitamins you could have purchased for 70% less at a local store!
Holy smokes! So if you’ve been in MLM about seven years now, you’ve spent over $17,500 on products! Ouch!
Yet, your total cost for a Top Tier after seven years would have never gone past the average $1,500 cost of the product or service.
But, we’re not done yet…
There is another benefit to Top Tier programs. It’s not very obvious at first, but something you will come to appreciate if you don’t already…
Work With Experienced Peers And Keep Your Business FUN!
Are you at a point in your MLM career where you just feel burnt out working with people who are brand new to the industry? The ones who “claim” they want to be financially free but as soon as you mention the start-up cost they start making excuses?
Has your downline turned into a massive pool of people who blame you for the fact that they bought a website and some product but aren’t rich yet?
Or has the FUN been stripped from your work at home dreams because all you do is spend your time dealing with whiners, complainers and excuse makers for much less money than it’s worth?
Well One Perk Of A Top Tier Opportunity, Is That It Attracts Top Tier People.
Who you work with is completely up to you, so work with the highest caliber of people possible:
Peers! Professionals! Do’ers! People who make things happen, not excuses.
It makes all the difference in the world when you get to spend your time recruiting and working with people who are just like you. They love this industry, and they don’t need any convincing.
They already know an investment is required and have no problem with it because they are true entrepreneurs.
Top Tier opportunities attract this type of person because the initial start-up cost scares away the time-wasting, tire-kickers faster than you can blink an eye!
Wouldn’t you like to just work with experienced entrepreneurs? People who don’t whine, complain, constantly make excuses, or need you to hold their hand 24/7?
Peers who speak and build with self-confidence.
People who don’t “need” money or want you to “save” them, but people who have a track record of success and who want a better vehicle to invest their time, money and efforts into?
With Top Tier opportunities, you don’t have to work with thousands or tens-of-thousands to make incredible money.
You only need to work with a handful.
Top Tier Opportunities Pay-Out Serious Incomes, So They Attract People Who Like To Make Serious Money
We’ll assume that you’re an experienced networker who knows what they’re doing.
You know how to advertise. You have good communication and phone skills. You work diligently on your business every day, and you’re a leader to your team…
And how’s it working out so far?
$50,000/mo checks showing up yet? Do you have the Mercedes in the driveway? Are you flying First Class and sleeping 5-Star? Do you take a cab from the airport to the company convention or a helicopter?
Probably not, and it’s not because you aren’t capable or deserving of that kind of success. It’s just that you’re working a 2nd tier opportunity that pays out less money for the same amount of work and attracts people whose goal is to earn $300 – $5,000 a month… not $30,000 to $100,000 per month.
We all have the same number of hours in a day so why not use them in a business that pays out BIG instead of small when it doesn’t require any more time or effort?
You become as successful as the people you surround yourself with, so why not work with people who truly live lives of luxury instead of people who drive around in mini-vans with “Lose Weight Now, Ask Me How” stickers on the window?
I don’t know about you, but my partners and I got into this industry to earn a massive and stable income, yet we’re faced with the fact that traditional MLM just isn’t the opportunity it used to be.
So if this G.P.T. model makes sense to you…
If you’re ready to find a business that will allow you to make $10,000 to $50,000 per month within weeks or months instead of years without the risks or headaches of a downline, then we’d like to invite you to continue to the next page where you’ll have an opportunity to meet one of the fastest growing teams in the Premier Top Tier business in the world who can show you…