All too often people think that affiliate marketing and multi-level marketing are the same. This could not be any further from the truth, they are nothing alike. Allow me to clear things up and help you understand the difference between them.
Let’s start with the definitions for each.
Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts. The industry has four core players: the merchant (also known as ‘retailer’ or ‘brand’), the network (that contains offers for the affiliate to choose from and also takes care of the payments), the publisher (also known as ‘the affiliate’), and the customer. The market has grown in complexity, resulting in the emergence of a secondary tier of players, including affiliate management agencies, super-affiliates, and specialized third party vendors.
Multi-level marketing (MLM) is a controversial marketing strategy in which the sales force is compensated not only for sales they generate but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation.Other terms used for MLM include pyramid selling network marketing and referral marketing. Many pyramid schemes attempt to present themselves as legitimate MLM businesses.Some sources define all MLMs as pyramid schemes, even if they are legal. MLM is illegal in mainland China.According to the U.S. Federal Trade Commission (FTC), some MLM companies constitute illegal pyramid schemes which exploit members of the organization.
This information comes from Wikipedia.
The Pros And Cons
To help you better understand I’m going to show you some of the good and bad in both MLM and AM.
Pros for MLM
- MLM does provide a way to earn a good amount of money.
- No need to research products to sell.
Pros for AM
- You can turn AM into a long term business.
- The potential to earn is endless.
- People come to you to make a purchase, no need to bug people to join.
- You can promote just about anything.
- You are in control of what to promote.
Cons for MLM
- MLM is set up like most pyramid schemes.
- You have to recruit others to earn.
- It is very difficult to sell to others.
- You will not earn much until you get to the top levels, 99% of the people who join never make it that far.
- You can only sell the product provided by the MLM company.
Cons for AM
- You have to learn how to be successful.
- Most will fail without a Niche, Website, Traffic and training.
What Conclusion Did You Arrive At?
Whatever your choice is it needs to be treated as a business or you will fail. People join program after program and give up before they even gave it a chance. If you were to start a stone and mortar business would you simply close it after a month of not making a profit, then move next door and start up in the same business again? I would hope not, well it’s the same with an online business. Why do you think those select few make it work? Because they don’t give up, they put in all the effort needed to succeed. If you are ready to commit yourself to owning and running a successful online business that you are in control of then I suggest you start with affiliate marketing and get the proper training.
I hope this helped clear things up. If you have any questions please leave a comment.
To your success,