Affiliate marketing vs MLM, which is better? MLM (or multi level marketing) is a legitimate business model which is often mistaken for a pyramid scheme. While a multi level marketing business is legal, a pyramid scheme is illegal. A “pyramid scheme” can often be spotted because there’s no obvious product or service within the model.
Whereas a legitimate business will offer some form of product or service. MLM’s have become popular because they offer a higher earning potential for those willing to build a team of sales people. Once a MLM member has built a huge team to help them sell a business model or product, they benefit from sales generated by their team.
Most MLM’s involve an initial investment and a product which you can sell. In addition to selling the product directly, you can earn a percentage of sales generated by your referrals. This is where higher earnings can be achieved. Many people are sceptical of such schemes and this makes it more difficult to recruit members. In addition to this, building a big team isn’t for everyone. It can take a lot of hard work and if you’re not particularly sales minded, this can be a huge barrier.
You can also use an MLM business without recruiting. Companies like Herbalife and Avon for example can allow you to build a customer base from only selling products and earn commissions from the sales. However, the higher earnings can’t be achieved without building a team of other sales people also doing the same.
Affiliate Marketing Vs MLM
A few popular MLM companies are:
- Herbalife.
- Arbonne.
- Stella&Dot.
- Younique.
- MONAT.
- Isagenix.
- Nu Skin.
- doTERRA
- Avon
What is affiliate marketing? Affiliate marketing is another business model in which affiliates refer customers to existing products and services online. You don’t need to invest in order to join an affiliate program, although it’s worth investing in training if you have no experience.
With affiliate marketing you only get paid when you generate a sale of a product or service through your affiliate link. So it’s a performance based marketing strategy. You don’t have to recruit anyone with an affiliate marketing business and you can generate sales using automation. This makes it potentially very lucrative (if you are successful) because you can grow and scale up your business globally, selling products and services internationally.
Affiliate Marketing Vs. MLM – Affiliate Pros & Cons
Affiliate marketers use a number of different strategies to promote and sell products online. Some affiliates use blogging, others build email lists and run paid advertising campaigns. They then sell products through automated emails using their affiliate links. One of the benefits of affiliate marketing is that you can build an affiliate business from anywhere without any products of your own.
A downside it that it takes some time to learn.
There’s thousands of affiliate products online and you can choose products or services based on your interests. Often affiliates will create content on a blog or using YouTube. They will then promote products which are suitable for their audience. So there’s much more choice in products with affiliate marketing than with MLM companies.
MLM’s typically have joining fees and you have to sell physical products or recruit to earn money. With affiliate marketing, there’s no joining fees and you can choose your products from around the internet. Amazon, for example is one of the most popular affiliate companies. Anyone can join Amazon’s associate program and get paid for referring sales on the site.
Is Affiliate Marketing Better For Introverts?
In my own experience I’d definitely say affiliate marketing is better for introverts like me! I ran a Kleeneze business for a couple of years in the UK and struggled to get the traction because I wasn’t good at selling the opportunity. I did however build up a small customer base who regularly bought Kleeneze products from me. The MLM business also involved dropping off magazines door to door and collecting them and processing orders. Ultimately it didn’t work for me and I dropped out.
I later discovered affiliate marketing and found that I could refer sales online with no door to door selling or “salesmanship” needed!
With many affiliate programs you can use existing sales materials to promote on your own website and through email marketing. So it’s a much better model if you don’t consider yourself a gregarious people person who is good at selling! Affiliates have no need to promote products directly, speak to customers or handle any products themselves. This makes it a perfect career option for introverts who want to work from their laptops!
Affiliate Marketing & MLM
One of the best affiliate marketing business models combines affiliate marketing and MLM with a tier two commission structure. With such a model, you can benefit from sales generated from your referrals. This can give you a massive advantage if you’re intending on building a full time income from affiliate marketing.
Is affiliate marketing a pyramid scheme? Affiliate marketing is a legitimate business model which is based on referring customers to existing products and services. With a two tier affiliate program there are parallels to pyramid schemes because you can earn commissions through recruiting other members. A pyramid scheme though typically offers no product or service, just a promise of money through recruiting, whereas an affiliate program will. Like with MLM, your efforts are rewarded to motivate you to make more sales. The best way to do this is by bringing in more sales people.
MLM’s and multi tier affiliate programs can be a great way to earn a passive income from the work you have done previously. Affiliate marketing vs MLM? In my experience, MLM’s are more difficult to build. In either case, it’s worth using the power of the internet, automation and a global reach to generate more sales. Certain MLM companies are limited to certain countries and unless you’re particularly good at selling, it can be a more difficult option.
Learn more about affiliate marketing through this free video series.
