So I’ve been asked now a number of times about what makes affiliate marketing different from multi level marketing.. so in this post we’re going to look at affiliate vs multi level marketing. And just just so you know I love the one and I am not at all fond of the other.
I have already published an article explaining affiliate marketing and another article explaining multi level marketing so you can check those out before reading this if you would like some more information about them. In this article I am only going to be looking at the difference between the two.
Affiliate vs Multi Level Marketing
Affiliate marketing and multi level marketing are often confused, but they are actually completely different. The biggest difference in my mind is that affiliate marketing is an amazing way to start your online business and multi level marketing is an unsustainable business model where you will struggle to make money and you are not free to run your own business in your own way.
How many people are involved in the business model?
In affiliate marketing there are only 3 people involved in any transactions. There is the affiliate marketer, the company selling the goods and the customer. The affiliate marketer promotes the company’s products and a customer buys the product. The company pays the affiliate marketer a commission.
So in essence being an affiliate marketer is almost like being an independent sales representative that earns commission on sales.
With multi level marketing there will be the company, you, your up-line and your down-line. The biggest part of the multi level marketing business model is that you will be recruiting people into their system. The more people you recruit the more chance you have of making money and if your recruits recruit more people all the better because you will earn from their down-line too.
Affiliate Commission vs MLM downline Commissions
In affiliate marketing the commission is quite simple. You have your affiliate link and if anyone clicks on your link and makes a purchase you will earn a commission. It is clear and there is no confusion.
With multi level marketing the compensation plans are usually very complicated and for the most part I personally don’t understand how it works. One thing is clear, the more people you recruit the more money you will earn. The more people your down-line recruits, the more money you earn.
Who is in control of “your” business?
If you choose to go into affiliate marketing you have full control of your own business. You decide which companies you would like to affiliate with, which products you would like to promote and how you would like to go about promoting them. So you can do whatever you choose to do with your business.
With multi level marketing you don’t really have your own business. They call it your business but you are working for them, according to their sets of rules and how they say you must do things. You are limited to promoting their products only. Yes you can choose to sign up with more than one multi level marketing company, but you will struggle to keep promoting more than one multi level marketing opportunity and keep recruiting people.
What is the cost of affiliate vs multi level marketing?
This is another of the big differences, you don’t ever have to pay anything to a company to become an affiliate marketer. If a company says you need to pay a fee don’t go with that company, this is not a good practice!
All multi level marketing companies charge a fee of some sort to become an independent business owner. So in order to promote their company and make them lots of money you have to pay them money. This makes no sense to me. If you are going to be promoting their products and selling their products why should you have to pay them?
The reason is because the product is actually you. Recruiting people is really the name of the game, not promoting products.
I’ve reviewed a lot of multi level marketing opportunities on my website and there are a lot of people that love mlm. I’m not a fan.
I love the freedom that comes from choosing to do things my way, yes I am a stubborn person and I don’t like being told what to do, what to promote or how to do it.
I love learning all about how to do online marketing, what the right way is and then choosing to do things exactly how I like them. So this is my affiliate marketing website and it is done the way I like it. I promote the products I think are amazing and when I review something and I think it sucks I can say so!
Making money online is a passion of mine, I have a passion for sharing what I know about making money online. I would love to help you find the right way for YOU.
I have other websites in different niches that interest me. Feel free to have a look and see how you can have completely different websites to cover your passions.
Would you like to learn how to make money from something you LOVE? What are you most passionate about? Can you write about it? Then you can make money from it!
Would you like to learn how to set up your own websites, how to market online and how to monetize your websites so you make residual income?
You can earn multiple streams of residual income from your passions which will pay for years to come!
Then you really want to read my Wealthy Affiliate Review!
This is the best opportunity I have come across that will teach you everything you need to know about building an online business. The focus is on affiliate marketing, but you can also learn how to monetize your website in many other ways too.
If you have any questions or feedback please pop it in the comments and I will come back to you soonest.