Affiliate Marking

Can You Make Money on the Internet

 



 

Is affiliate marketing MLM?

Affiliate marketing is not MLM, (multi-level marketing, also called network marketing.) Because affiliate marketing works so well and genuinely benefits both the website that is advertising as well as the website that is hosting, people tend to look for problems that just donít exist. One of the ďproblemsĒ that has dogged affiliate marketing for years is the idea that is is a multi-level marketing scheme. The are some very famous MLM business out there, many of which have made a lot of people a lot of money. We have all hard of Amway, Herbalife, Pre-Paid Legal Services, Primerica, (formerly A.L. Williams, and Shaklee Corporation.

These companies and many more like them had thousands of people that made huge sums of money. While a lot of folks made a lot of money, most made little or nothing. The marketing concept makes it imposable for the system to sustain itself. If you got in early and worked hare, and were lucky, you could make a fortune. However the vast majority did not get in early enough and were left to compete in a tremendously over saturated market. The marketing concept bares a resemblance to a pyramid scheme.

What is multi-level marketing?

Multi-level marketing systems can be legal, while, pyramid schemes are illegal. Pyramid schemes systems work by constantly signing up new people to sell a product that doesnít actually exist. The people at the top of the pyramid make money be collecting a commission off of all the sales that happen below them in the pyramid structure.

MLM systems have tried to gain a bit of respectability by offering legitimate products like phone cards that made the whole operation legal. But, in essence, pyramid schemes are still tainted by the perception that they are inherently dishonest and, unless you start a MLM/pyramid scheme and are at the top of the pyramid, youíre earning money for someone else.

Often MLM systems call their participates associates or affiliates. This choice of title in no way changes the fact that affiliate marketing websites are in not was MLM or pyramid schemes.

Affiliate marketing is, in no conceivable way, multi-level marketing.

In most cases, a site that wants to advertise pays another site to direct traffic to them. There are multi-level affiliate marketing set ups that have one site direct traffic to another site and then that site directs people to the site that pays both previous sites, but even in this case, the customer isnít tricked or misled and there isnít any sort of financial transaction that takes place, either.

Multi-tiered affiliate marketing is simply another way for web pages to create traffic and revenue.

The way earnings work for multi-level affiliate marketing is different than a pyramid scheme, as well. Is it true that in the end, the site that is being linked to makes the most money? Sure, but thatís because they are the ones offering the product or service. The other sites are simply steering customers to them.

With multi level affiliate marketing, everyone makes money and assuming a legitimate good or service is being sold at the end of the path, the consumer ends up happy, too.

It can be a little confusing for those new to Multi level affiliate marketing to tell the difference between it and a pyramid scheme. But rest assured the two have very little in common, most importantly the fact that almost all pyramid schemes are illegal while multi level affiliate marketing is quite legal and a very effective tool in Internet advertising,

If you would like to farther research MLM or pyramid schemes we have a more in-depth analysis of each at these urls:


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