April 04, 2021

Affiliate V/s MLM Marketing – Definition, Differences, & Similarities

People around the world have different perspectives over the two most famous money-making models, i.e. MLM marketing and affiliate marketing. While many people made a fortune out of multi-level, those who failed concluded it to be a pyramid scheme.

The scenario is the same with affiliate marketing too. There are people making tones of money with it but those who are unable to do so, ill-fame it with some worthless reason. However, the truth is – who knew how to do it, did it! I personally think both of them are worth trying and if, by chance, you happen to be good with it, then JACKPOT!!!

Here today, we’ll compare these two marketing models by considering the major differences and similarities between them. Let us start with a brief introduction.

Introduction – Affiliate & MLM Marketing Models

MLM Marketing

MLM, or better known as network or referral marketing, is one of the best earning models for marketers and salespersons. It involves the hierarchical distribution of a particular product through a distribution channel that goes from upwards to downwards. The distribution channel is used to promote the product as much as possible and sell products to the end-user with an opportunity for him to earn money.

In other words, network marketing runs in a network channel and people in the chain try to sell a particular product to consumers and earn commission on each sale. If the network below you makes a sale, then you get some percent of its commission too.

Affiliate Marketing

Affiliate marketing is a passive income marketing technique that helps you earn money by selling products and services of somebody else. It involves promoting different products or services from varied sellers majorly through a link. The promoter earns a commission on the sale price of every purchase made through the promoted link. Note that every promoter gets a different link and promoting other promoter’s affiliate link will help him earn not you.

As an affiliate marketer, your sole job is to promote the product. It doesn’t require you to build your network, shipping, packing, or payments. A promoter can market his affiliate link in different manners including blogs, paid advertising, landing pages, banners, and many more.

Similarities between Affiliate v/s MLM Marketing

• Legal: Both affiliate and MLM marketing models are legal & legit and thus, you need not be scared. Both modes help people earn money through commissions and the amount is credited into your bank account through a legitimate yet clear process.
• Flexibility: Both MLM and affiliate marketing facilitate flexibility to their promoters. People have the option to start it from home, work part-time, full time, online, or offline, it all depends on them only. You can start it today, tomorrow, or sometime later. The joining process is pretty easy and requires the completion of a few small tasks only.
• High Earnings: There are dozens of examples of people making living out of both affiliate & MLM marketing models. Both the modes have high earning potential and if one is ready to give his full efforts, then there’s no stopping.

Difference between Affiliate v/s MLM Marketing

• Commission Structure: The commission structure of both models is different and MLM marketing leaps here. While there are varying percentages of commission on affiliate products with no surety of earnings and clicks, MLM is pretty simple & straightforward. The promoter needs to sell his products and create a chain of other distributors in which he earns a fixed commission.
• Business Support: MLM marketers get beefed-up support from their companies in terms of event organizing, helping customers, and more. The case is negligible with affiliate marketing, you & only you are responsible for the sales, it doesn’t matter how you do it. On the other hand, MLM marketing companies make sure that distributors are allocated enough resources to make sales.
• Authority: Everybody wants to settle in their career and have some sense of authority over people. In a year or two, there would be more than a dozen people working for you and helping you earn through commissions. Obviously, you need to consistently give them support but that’s what leaders do. In affiliate marketing, you are the active promoter and continue to do so until you want to earn from it; you stop, money stops.
• Competition: The level of competition in affiliate marketing is much more than you think. Consumers have become smart today and understand if someone is trying to sell them something in an upfront manner. The case is different with MLM marketing as it takes courage, effort, time, and skills to build a network. However, who can do it, earns high as millions.

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So, this was all about affiliate v/s MLM marketing models. Now the decision is up to you to choose between the two and start earning. I see great potential in multi-level and it has helped me earn a lot & still is. Whatever may be the case, make sure to not fall for fraudsters.