Monday, May 4, 2009

MLM vs. Affiliate Marketing

I get quite a few requests on YouTube to review various MLM (multi level marketing) programs so I want to clarify something.

I am an affiliate which is a little different. MLM has never been my cup of tea so I don’t spend much time looking into these programs.

That is not to say you cannot make a lot of money from MLM, it’s just not my preference for monetization.

Now, I have to choose my words carefully in this post because…

1) I’m not an expert on MLM (nor do I want to be)

2) I realize there are a lot of varieties of MLM and you can’t paint all the programs with the same brush

3) Many people make a good, honest living with mlm

The Difference Between MLM and Affiliate Marketing

So you may be wondering, what is the difference between affiliate programs and MLM? Well, in short, affiliate marketing is usually a one to one relationship (except the 2 tier programs) where MLM is usually a one to many relationship.

For example, as an affiliate, I refer a product from my site and the merchant (company) pays me a commission for the sale. That’s the one to one relationship.

With MLM, it can involve several levels and you can make money from the sales of the people you recruit to the program and the people they refer too. This can go on for several levels deep.

People at the top of the chain who have several high-performing team members (downline) can make great deal of money over time.

MLM has gotten a bad rap over the years because of all the get-rich-quick and pyramid schemes (that should not be called MLM). You definitely need to do your research before joining such programs.

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