Affiliate marketing and multi-level marketing

You’ll find many people use affiliate marketing and multilevel marketing interchangeably when in fact they are totally different.

Some Multi-level marketing (or MLMs) have been around for awhile; take Herbalife , they have been around for more than 30 years. With MLMs, the name helps to explain how it works. Each person who joins the company is a “marketer”. As a marketer, your goal is to basically recruit others to join your company as part of your team. Your commission is influenced by how many people you bring into your team and how many people those people can bring in.

 

For the sake of this example, I’ll stick with Herbalife. This company is a health and nutrition company, so they sell health and nutrition products. As a marketer, you are looking for other people to sell health and nutrition products with you, but the other way you make money is to sell the health and nutrition products themselves. Either way, whether your selling the business opportunity or the products, it will obviously take time, money and energy to be successful at this type of work from home opportunity. I’m not saying this to discourage you, I do this type of work myself in conjunction with projects I do from home, and I absolutely love it.

To sum it up, being a part of an MLM is basically franchising you can do from home. Instead of buying a Dunkin Donuts franchise and purchasing a building, stocking inventory, hiring employees, etc; you’re buying into a company that doesn’t require you to have a physical presence.

With Affiliate Marketing, you are not selling any products directly, nor are you recruiting or growing a team. You are basically just getting paid a flat fee to advertise someone else’s products and services. It’s a one shot deal. If you have an advertisement on your blog for The App Code and someone clicks your link and buys the product, you will receive payment. If that person who clicked on your link and purchased the product also decides to join the affiliate marketing company, you most likely won’t be compensated for that (if you do, it again will be a one time payment.)

This is the big difference between affiliate marketing and multi-level marketing.

Affiliate marketing consists of one-time payments, multi-level marketing consists of building relationships and reoccurring commissions. Both are totally unique and I recommend using both to build an income making machine from home.