The Key difference btw Affiliate Marketing & Networking?

Affiliate marketing is an important step for widening business revenues and brand popularity. During the last couple of years within Internet access and viral social media, we noticed that many brands are intensively taking the privilege of this business to increase their sales. On the other hand, it has become a very known passive-income source for many people.

However, this type of business embeds predefined rules That you need to know before being committed to such stuff.

What is Affiliate Marketing

Affiliate marketing is a process of selling other people’s stuff. You as an affiliate, you will invite people to purchase or to convert.  Using your affiliate link that the company has offered to you.

Once the customer buys via your link. The company would reward you by paying a predetermined commission. So the process is based on three parties: The product, the customer, and the affiliate.

How it works

Affiliate marketing is a very preferable business due to its legitimacy. Because it deals with real products & services. And doesn’t aim at just increasing membership.

In this business,   You promote the affiliate product you choose.  And you earn money for the recommendation you forward to people.
It is not about being a salesperson for any company. Because it is based initially on freedom of choice.

Here the affiliate is inviting people to purchase a particular product rather than recruit them. Maybe the relevant example for this context is the YouTubers. They used to promote different products or websites in regard to their field of interest.

They invite their audiences to click through their links or use their code when buying from a particular website. Once you click and buy via that link/code  Then the company pays the affiliate.
We frequently notice that with beauty brands.  They work with these YouTubers as an affiliate in regards to their subscribers’ volume.

In another more formal way. The affiliate would create his own website through the company’s affiliate program with zero cost. He will choose the affiliate programs that fit his niche market and starts the branding.

The only spendings, he might be assigned for, are hosting and domain name purchase.

Because logically talking, why you pay a company for promoting its product.
After you complete fixing the website. You could start the affiliate journey with a very informative business process. In terms of a commission (10%, 20%, 30%…) and product availability.

We could find many companies offer affiliate programs and with training courses too. We put the example of Amazon, eBay, Wealthy Affiliate…

What does MLM mean

MLM stands for Multi-level Marketing also called Network marketing based initially on community networking.

In MLM you will be the company salesperson. You should bring as many members as possible to the company and you will upgrade your position referring to the number of people you brought to be members of the network.

How it works

In MLM people are divided into 2 categories the downlines ( the newly added to the network) and the uplines (the old members).

Usually, the uplines get more profit because they would be rewarded for the added members. This might be unfair and worthless for the rest.

While conducting MLM business, you will recruit people ( the downlines) and they should do the same to upgrade their status. As a result, you would be paid for the sales made by your downlines or by recruiting them.

But the most annoying feature is that you are supposed to promote one restricted product but of course if it does exist a product in the plan.

In case that product is useless you would face marketing difficulties. In other situations, members buy that product and stocking it in order to get a commission.

However, the real problem hasn’t arisen yet. The key issue of MLM is that some companies don’t sell real products or services as we have mentioned before.  Because they don’t have legitimate commercial status.

So what do they sell? actually, they pay people for increasing membership and this would be called Pyramid Scheme which is an illegal business. In this business model, companies don’t provide a beneficial product or service because they don’t have valuable business from the beginning.

In the Pyramid Scheme members are structured under a pyramid. Usually, the top person is getting reacher than those who are at the bottom since he gets rewards due to their memberships.

So your job is kind of HR management the only task you do is recruiting people. For what job? for recruiting people too? seems absurd and fruitless but many people felt in this trap.

The difference between MLM and pyramid scheme is very thin and hard to distinguish So:

If you are Promoting membership + real product = MLM
If you are Recruiting members-only = Pyramid scheme which is illegal and could lead to a lawsuit.

Before you engage in a business like that. You need to dig into the company profile carefully and make sure that you would conduct valuable business.

Why Affiliate Marketing is better than MLM in brief

Cost

What triggers major people to hold affiliate marketing is that it has a very low entry cost. However, in MLM, you should pay for a monthly membership to get the commission as if you pay to be paid.

Clarity

Rules and tasks are clear in AM as the commission rate and the promoted products are defined from the beginning.

Members of the MLM business are not aware of the business line and the commission rate is classified under variable standards.

The fact that even when you recruit another member you couldn’t explain to him well because you, yourself don’t have a clear idea.

Freedom of choice

Using Affiliate marketing you will be able to choose the convenient product to your niche market and upon your desire. However, in MLM, you are restricted to the company’s offered product.

Personal impact

Many companies in the MLM business ask members to start within family and friends networks. This may cause relationships destruction and people would avoid meeting you to skip dealing with the same subject.

Conclusion

The concepts are a bit controversial and if you want to rise your fortune and living the life you dreamt. Try the affiliate marketing it is worthy,  valuable, and safe. see you guys 😉

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