Archive for the ‘scam’ Tag

A Better Alternative to GDI

Well, it’s now 5 years since I first heard of GDI and various ideas for making money online and for helping others make money online began tumbling around in my head.

Next week, June 3, I fly to Ukraine and have decided to kickstart the ‘big concept’ for learning languages and making money online.

I’ll start with a comparison to GDI since readers will then be able to immediately relate to my ideas.

We currently charge $10 per month for members learning Indonesian and Russian, and they are all more than happy with the product.  Thus, we have a definite product which people want, which GDI doesn’t have. Nobody would buy GDI hosting simply for the hosting and not the income potential. Our members pay for the product and there is no income potential for them.

Next, I’ve always disliked the concept of paying $1 for all of 5 levels. That’s 50% of the ‘product’ cost, which seems excessive. I think 30% is more than enough, thus devised the following model. (It assumes each person introduces 5 other people.)

10% $1.00 x 5 $5.00
5% $0.50 x 5 $12.50
5% $0.50 x 5 $62.50
5% $0.50 x 5 $312.50
5% $0.50 x 5 $1,562.50
30% $1,955.00

Simply by signing up 5 people and having each of them sign up 5 people, you can be earning a monthly income of $1,955.00.  That’s bloody good!! And it’s good for our business also since our total ‘marketing/advertising’ cost is 30% and our revenue increases significantly as the number of members increases.

We haven’t implemented this concept earlier because most westerners are immediately adverse to any hint of multi-level marketing. It has been patiently waiting for the time that we’re ready to develop a program for learning English.

Millions of people around the world ‘need’ to learn English. Learning English for people in developing countries is a sure ticket to a better job and higher income, not to mention the ability to communicate with the rest of the world.

Many of them can afford $10 per month, and in fact many already pay much more than that to learn English. Earning a return of $2000 on their $10 ‘investment’  would literally change their lives.

These are also the regions where people are most receptive to such marketing concepts. It’s really a perfect match. We help each other.

It’s easy enough to play around with the numbers of members introduced, but it’s already clear that it’s not difficult to generate substantial income.

Now let’s look at the reverse. As I said, most westerners hate even the idea of MLM. But, they could also use some extra income, and we do sometimes lose a member if they stop learning a language or lose their job, etc.

These people already recommend us to friends simply because they like our product. If even just 2 people then join, and so on for 5 levels, then their membership would be free and they’d be earning a small amount which they could keep or donate to a charity of their choice.

10% $1.00 x 2 $2.00
5% $0.50 x 2 $2.00
5% $0.50 x 2 $4.00
5% $0.50 x 2 $8.00
5% $0.50 x 2 $16.00
30% $32.00

The ‘dream’ of all companies is to have steady (and growing) cash flow. With a growing membership and no reason for existing members to ever quit, it’s really the ‘dream come true’.

The potential market is also everyone in the world. Why not? Everyone would benefit from learning a new language, and if the method is enjoyable and effective, why not?

We want to continue focusing on making our product better and better, and that’s why this marketing method is especially attractive. We don’t have to focus on promoting the business at all. We simply keep making the product better and better.

The next major revenue source is from advertising, which we will also share with all the members. After all, they’re the reason companies are paying to advertise.

Just imagine if all the members of Facebook and other such websites got to share in the revenue, instead of just getting the service for free.

That’s our concept. It’s better than free. You get the best product available AND you get to make money. And why not? I don’t need a billion dollars like Mark Zuckerburg.

So, I hereby invite all of you to get on board early. Even if you have no desire to learn a language, you may be interested in being a ‘salesperson’ for us. In that case, you don’t need to pay anything, simply sign up as a ‘sales affiliate’ and start spreading the word.

Please leave your thoughts and suggestions in the comments below and I can contact you via email from there.

All the best!!

PS. One very good market potential for people to learn a new language is seniors. It helps stimulate the mind and keep it healthy and it’s a great skill to have when travelling. Pimsleur and others have targeted this aspect but their programs really aren’t very good, especially for seniors. Here’s an example: Pimsleur advert for seniors.

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GDI is almost a scam, and here’s the catch.

For all of you out there who are trying hard to promote GDI and develop your business, sorry, I don’t want to rain on your parade, but the simple fact is, GDI (Global Domains International) is a mediocre product at best.

First of all, it’s now 2013 and this was first written in 2008 and GDI is still ‘a hot product’? Not likely. If it hasn’t taken off by now, there’s no reason to suspect it ever will.

Second of all, what is it? It’s domain hosting for $10 a month with a multi-level marketing scheme that pays you back $1 for every person under you for 5 levels.

Okay, that in itself is legitimate, and although any network marketing scheme is an immediate turn-off to many, for others, it’s a reasonably attractive opportunity.

Much better hosting is easily available from many, many providers for less than $10 per month. I searched through many of them and finally decided that PowWeb and Bluehost were two of the best and I’ve been using PowWeb now for several years. (Update, 2013, I’ve now switched to iPage which I think is affiliated to PowWeb.) (ps. The affiliate payment from these hosting companies is very good. iPage pays $105 for each new sign up.)

Thirdly, the product is web hosting and how many people need their own website? Not many, and for those that do, they’re better off with a ‘real’ hosting company.

Of course, the ‘real’ product from GDI is ‘get rich’. And that’s what gets everyone interested. So the real question is can you get rich with GDI? Nobody yet has shown me that they have and it’s now 2013.  Please add your name in the comments below if you have indeed gotten rich with GDI.

2013 Update:  We recently received an excellent comment from someone who is indeed making money with GDI. (See bottom of this post.) I agree with his assessment but still feel that GDI has no real product and ‘over promises’ and ‘under delivers’. I’d like to suggest a “better alternative to GDI” which is now ready.

The one aspect that kept me looking deeper into GDI was the $100 bonus for signing up 5 new members in a week.

Now, with only a slight thought outside the box, you can see that you could pay for 5 new members, that way giving them a free month to test it out further, and then collect the $100 bonus. You paid $50 and got back $100.

Everyone I asked said that yes, the bonus is legitimate and they do pay it. And there are many individuals and groups paying the first month for people.

What nobody told me and what makes it a scam, or at least deceptive marketing, is that in order to get the $100 bonus, you first have to buy 10 DVDs for promoting GDI.

That’s $29.50, so you’re still in the plus, but then you have to add on the shipping and handling. Lots of people play the “shipping and handling game” to send you ‘free e-books’, etc. Come on, if it’s really free just give me the download link!

The killer for everyone living outside the U.S. is the fee charged to send you the DVDs. For anyone in Romania where my friend lives and is trying hard to develop his GDI business, the cost is $162! (2012 update: my friend there eventually gave up on GDI and moved on to other things. He gave it a serious effort with very limited results.)

As he said, “So, I would need 10 people in the same week only to pay off my investment. And then I will be in profit.”

He then replied to my email in which I fumed about GDI: “I knew about that from the beginning, but I couldn’t imagine that the delivery fees are so exaggerate. Lucky me that some days ago I tried to make a “sample order” to see how it goes. And then I was shocked when I saw those 162$!!! I mean it’s like you want to buy a bicycle with 200$ and it cost you 1300$. Prefer to walk in that case, don’t you?”

Definitely! I prefer to walk. That’s the problem with all these ‘special deals’. There’s ALWAYS a catch.

If you want to try GDI, go ahead, some people have had success with it, but many more haven’t. I just want you and everyone else to know as much of the truth as I’ve been able to find.

I double checked with my Romanian friend, and it’s a one-time-only purchase requirement, so to get future bonuses, there’s no need to buy more CDs. Hmmm…, so I offered him a solution. He could have the CDs delivered to my uncle who lives in Florida, thus saving the delivery cost since he doesn’t really need or want the CDs anyway.

Anyway, I decided not to doing anything with GDI, but I was thankful that I stumbled on them in the first place, because it gave inspiration to my idea of how to REALLY help people get started on the internet and do it honestly and fairly, with no catches.

As most of you have learned already, you only ever get a limited amount for free. That said, some places like WordPress give an amazing amount with fantastic quality all for free, and I’d like to know their secret.

The fact is however, that everyone needs money to live, and that includes WordPress and all the people who blog at WordPress and design templates and widgets and everything else. It’s a fantastic community.

Now what if you created a similar community but with the intention of helping “newbies” get started on the internet, totally for free, and helping each other (and the “newbies” as they move on to “toddlers”) to make some money doing whatever it is we love doing? Sound like a cool concept?

It’s a cooperative, or a kibbutz, or a team. It’s neighbours helping neighbours. It’s a community where we all go to work each day and if you need help or advice from an IT guy, a lawyer, a doctor, a dentist, a Mongolian spider expert, or whatever, you just ask! We’re all part of the same community or team.

Everyone in the community has earned the trust of several others, so that trust is easily passed on to the entire community. If anyone betrays that trust, they’re quickly told to shape up or ship out.

If nobody has the specific information you’re looking for, then you go to Google and wherever else to find what you’re looking for, and the next time anyone else is looking for similar information, you’re the one they’re going to contact, because they trust you.

Anyway, all that’s material for other blogs. This blog was simply to make people aware of the ‘scam’ in GDI.

Hope that was helpful,

Best regards,

Brian

(2010 update) That idea never managed to get off the ground, but it was still a darn nice idea. It’s not easy to start a business. All you can do is give it your best effort but first you need to make a choice and decide what that business is going to be. I don’t think GDI is your best option.

Thanks to everyone for making lots of comments and making this a lively blog, and best of luck to all of you in finding a way to earn money online.  🙂

2012 Update: It would be interesting to know how everyone has made out over the years, in their quest to make money online. I’m doing okay with my websites for language learning, and have also gotten into some online stock trading (with limited success unfortunately)

In 2009, after the big market crash of 2008, my brother introduced me to online stock trading and I still believe that it’s an effective way to make money online. A word of caution though, it’s also an easy way to lose a lot of money quickly.

I’ve just never managed to convince myself to get into all this affiliate marketing stuff and CPA and all the rest.  Joining a crowd of other people all competing to sell somebody else’s products and incurring the financial risk to do it, just didn’t excite me much.

The online stock trading is simply me versus the market.  Every day I either make money or lose money.  There’s no waiting for customers, there’s no mailing lists or anything.  Buy low and sell high, and you’ll make money.

I really tried ‘stock trading’ for a while, and was convinced I could do well, but in the end, I had to admit defeat. The market beat me. I still say ‘give it a try’, just be careful.

Of course, online stock trading requires a fair bit of capital to get started with.  $10k is a fair minimum.  For Forex trading you can start with $500.  So what about those of you who are out of work and broke?  Can someone, anyone, please show me (us) a business that really does work?

I still say, do what you love doing; focus on that; be busy with that; and somehow you’ll discover a way to make money doing it. Good luck to all of you!!

2013 Update:  It’s great that people are still reading this post and benefiting from it. And one person recently suggested an online business that does indeed pay. It’s simple data entry and won’t make you rich, but it does pay real money. (See comment below.)

I’m still buying and selling stocks online, but have been extremely cautious, waiting for the bottom to fall out. My brother signed up for a newsletter earlier this year and the guy has been bang on with his prediction for falling gold and silver. He’s still bullish long term on both but says they’re going much lower first before the turn around for a long run back up, even to $5000 an ounce for gold. I’ll add a note here when he says it’s time to buy.

My language website is still growing nicely and I’ve started a new website that will encompass all my ideals, primarily helping people learn languages but also helping them earn money if they want. After all, investing in Apple, NetFlix, Tesla and others, even Rosetta Stone, when they were small would have paid off very, very well. I hope to share that with anyone who’s interested. The new website is ExpressWay Languages and hopefully it will be somewhat developed later this year.

As before, good luck to all of you!!

New Update 2013:  Well, I’m finally taking the step with my language biz to incorporate some of the concepts of GDI and stocks in general.  You can read about it here: A Better Alternative to GDI

Update 2014:  Here’s a simple strategy to start a website for FREE and have ‘full service hosting’ for 2 years, and the hosting quality is much better than GDI, Go Daddy, etc.

Simply click on my affiliate web-hosting link, and get a website of your choice for 2 years FREE.

I switched to iPage last year and they always have a promotion for around $1.89 per month with a free domain. They say “ending soon” but it never does. It simply changes by .10 cents or so.

They provide excellent hosting and a 2 year plan currently costs around $45. The affiliate payment is $105, so I will pay the person back their $45 and help them get their website going and earning money, so that in 2 years time they will re-new the hosting. If not, that’s okay also. That’s the risk that iPage and other hosting companies are taking. Web hosting at iPage

It may seem crazy for iPage to pay $105 when they receive only $45 but it’s actually a brilliant strategy. The regular annual hosting cost is about $110 (which is still cheap compared to most services) so if you renew once, then they’ve made a profit. Most people will continue with their hosting for many years, so iPage is simply getting customers, keeping them happy and then taking the reward after 2 years.

By offering the lowest priced hosting, top quality, and top payments to affiliates, they get the best marketing, the most promotion and high conversions and it only costs them about $55 to get a new customer who will hopefully stay with them for many years. Brilliant strategy, and much better than GDI or Go Daddy.

GDI gives poor hosting at an expensive price and has chosen the MLM system for their business. Go Daddy also gives poor quality hosting, lousy service and spends a fortune for advertising at the Super Bowl and elsewhere. iPage gives great hosting at the best price anywhere and puts money straight into the pockets of anyone who promotes them. I’m happy to help others get started with their own website and want to make it free for them.  Web hosting at iPage