What’s The Difference Between MLM and Affiliate Marketing?
Main differences between affiliate marketing and Multi-level marketing:
What is Affiliate Marketing Program?
- #Companies/Products: Unlimited
- Minimum: No restrictions (most)
- Set Up Costs: Free – Minimal
- Recruiting: No (most, limited)
- Branding: No
What is Multi-Level Marketing?
- #Companies/Products: 1 company/set
- Minimum: No restrictions Must meet minimums
- Set Up Costs: $100 – 1.000
- Recruiting: YES
- Branding: YES
If you choose an Affiliate Marketing program to begin your Online Business, You will just need a blog to get started or just start uploading videos on YouTube. The reason why I choose Affiliate Marketing while reading this post you will understand my reasons.
One of the main reasons I choose Affiliate Marketing is because of the factor that they offer more flexibility and opportunities. Your not dealing with inventory or have to worry about profit margins when you can just earn a percentage % of sale which is quite straightforward and clear.
What’s is Multi-Level Marketing?
Multi-Level Marketing is a workshop where participants discover the specifics of how Multi-Level marketing works and how to find effectively source agents. For many companies, it can prove to be a valuable tool for not only building revenue, but also for building their marketing and networking circles.
Current agents need to perform a lot while at the same time grow the team by recruiting and training new agents. The tactic of marketing help boosts the company’s sales force not only from the sales of the primary agent but also from the sales and profits of the agents they have a recruit. If you see here more you recruit agents the more sales they make, the more money the company makes but you need to sell the products.
What I see here as an agent you Represent the company and you will be selling products to consumers. Every agent or I prefer to say Representative sell the same products and services, you need to improve your sales if you want to make a good commission. No diversity of products or companies, Everybody is a member of MLM and have the same product or service to sell.
The way I see it is you will need to make good adds to sell the products and Represent it as your own service, I see A LOT more work here at MLM vs Affiliate Marketing.
Either you buy the products at wholesale and selling it at retail for profit or you recruit other people to join your network. Once you recruit new agents, you’ll earn commissions from each recruiter you have and the sales they make and the recruiters find other recruiters and you make commissions from them as well.
It really looks like a pyramid and apparently, it’s not because they are selling retail products to customers and the revenue is not only generated by people in the organization. The companies are legit and it is legal.
With MLM, they make sure to keep their operations legal by choosing an actual product or service to promote by the network. So, while MLM gigs are legal, that doesn’t necessarily mean they’re effective.
However, MLM is not entirely bad, you might have heard a lot of negative stories about MLM marketing, but they are also who have been successful in this business and made a decent income.
They do not earn from recruiting like the MLM actually nobody needs to recruit as an affiliate marketer, they just need to refer because affiliate marketing only earns when they drive new sales for products/service they want to promote or whatever action that will trigger the commission (so could be leads, or email sign-ups, etc…)
7 Canadian MLM companies’ products.
In this article, you’ll find a shortlist of the best Canadian MLM companies. What you’ll find is most have registered in the United States first and have expanded into Canada. Very few companies actually originate from Canada. What makes it difficult to find them is a lack of a single directory style listing.
Canada has its equivalent to the US-based Direct Marketing Association and Better Business Bureau. Here are three great resources we found. While looking for a great company. also, spend some time researching any potential issues or challenges. Think of customer complaints, lawsuits, and injunctions.
- Amway Global
- Canadian Marketing Association
- Direct Selling Opportunities (Mary Kay)
- Direct Selling Association
Pros & Cons of MLM
- Financial independence – A lot of people invest in becoming independent consultants because it offers a huge opportunity of earning a decent income. Whether they do it part-time or full time, they have the chance to make money to meet their needs.
- Growth opportunities, In MLM, consultants are taught how they can achieve something so they can grow their network and profits. Since they receive a percentage for the profits of their recruits, they have the chance to increase their investment and income.
- Flexibility – What many independent consultants love about MLM is how they can work in their preferred hours. Business-minded people love it when they can work as many hours as they want so they can make more money and that don’t need to follow any schedule.
- Few benefits – working as an independent consultant means you’re not like typical employees who enjoy company benefits, like paid vacations and health insurance.
- Sell the product and recruit Consultant ” more work vs affiliate marketing”
- There’s a chance that you’ll be connected to an untrustworthy company and it turns out to be a pyramid scheme. This is actually common these days with digital products. Which is why many people are having doubts about entering this kind of business. Two big companies were shut down recently in 2018 by the FTC read their stories here and there, because they had no retail products and just memberships people paid in to get licensing right to earn huge commissions
- Costs are high to be involved with an MLM because you have to buy inventory and, have a start-up cost that’s usually at least 3 digits to start.
- Because of all the MLM companies out there and the concerns about getting scammed, getting sales is not an easy task.
- Stuck with working with one company and one set of product
That was the MLM part, let’s talk about affiliate marketing and see how it different from multi-level marketing.
What is Affiliate Marketing?
Affiliate Marketing is an agreement between Online Businesses and sellers, they pay the affiliate a commission for driving new sales to their products store, or services.
Depending on the agreement affiliate marketers get a commission (%) for each new customer sale they drive for the products and services they promote or they get paid for every lead they bring to the company’s targeted site through their affiliate link.
Affiliate marketers have the choices to promote any products from only multiple companies, they are not tied to only one. The more you promote more you can make money, but you need to know the products you promote, if people have questions about it you’ll be able to respond to them.
This also means they are not tied to only one set of products either, instead they can choose from a range of products, basically whatever is in the online market.
Costs to get started as an affiliate marketer is very cheap because it’s usually Free to apply to affiliate programs, but you can upgrade will do your training.
You can start with only $49.00/months or cheaper if you pay for 6 months plan or Yearly plan. If you want to learn how to build an Affiliate Marketing Business…
As an affiliate marketer, you get to learn online skills that other companies don’t teach because they mostly tell you how to place ads. Placing ads will be very expensive, especially if you don’t know what you’re doing with online ads.
Look at me as an affiliate marketer, I pay zero dollars for the thousands of visitors I get on my website here. There are skills that won’t be taught by others.
Pros and Cons of Affiliate Marketing
- It’s not easy at the beginning, a lot of hard work and time need to be put into it because it’s a performance-based on a kind of work. All effort you’ll put in it will earn a good income and passive one in this business. It proved to be one of the most effective ways to make money online, it pays well, a lot of people now are starting their own affiliate marketing campaigns.
- It as flexibility, being an affiliate means that you are your own boss, you work at home, or on vacation.
- Offers a lot of opportunities as you can promote a lot of companies as long as they fall into your Niche and you have the facility to talk about the product.
- and if you choose Wealthy Affiliate, you will get to choose the products you want to promote and have knowledge about the product or service to be able to answer your readers. This makes it’s easier to make blogs on your website you just need to make good research for the product you decided to promote. It can be toys, cars, houses, and a lot more. There is no limit to what you want to promote it is up to you to make good knowledge about those products because people have confidence in you and will comment if it’s not a good product.
- Most affiliate programs are free to sign in and If you decide to upgrade you’ll have a lot more accessibility
- Long hours to do in the beginning with the training and building your website,
- the results don’t appear immediately
- marchands can change without notice for commission
- need a lot of time for newbies so need patient, and perseverance
- need a lot of consistency
- Many affiliates who are now earning six figures had to devote a lot of their time to reach where they are now.
- Scammers are growing, when learning affiliate marketing beginners are being scammed by unethical product owners who make high-income claims but deliver nothing of the sort after you’ve put down money so it’s been hard for people to really learn how to do this
Between MLM and Affiliate Marketing
I choose Affiliate Marketing. Why?
I’m a better writer than I can be a seller and recruiter. Even if I’m not a good writer I really prefer Affiliate Marketing because, after the first 6 months of the hard work put into your Online Business, your work will start to be less stressful because you will just need to add 3 to 5 posts a week.
With MLM, you’ll only be promoting the products that are available in the company, regardless if you have experience with it or not. Also, you somehow depend on how many people you can recruit to promote and sell on your behalf.
Both are good Online Businesses to start but, you really need to know if it’s better selling and recruiting or present product reviews products and promoting for your Online Business.
My choice is Affiliate Marketing because it helps people to learn and try to make Passive Income over the years