Why Affiliate Marketing is Better than Multi-Level Marketing
I have been fortunate enough, or unfortunate in the case of MLM, to experience various forms of internet marketing models. In this post I will explain the 6 reasons why affiliate marketing is better than multi-level marketing, also known as network marketing. One side reason I will say right now is that affiliate marketing is much easier to operate.
Lately I have been doing a lot of research into various Multi-Level Marketing (MLM) companies for a review website I do ghostwriting for. What I keep finding are promising sounding programs that ultimately do not deliver the goods. Basically it is all a bunch of hype and many are doomed to fail from the start.
Choose your Poison Wisely
My very first experience with any kind of marketing was with an MLM company known as Amway. I am sure you have heard of them. My oldest sister was recruited by a friend and like most MLMs you are told to start your recruiting and/or selling with your family and friends. Talk about a great way to annoy those closest to you.
You need to build a list of people that you can sell your product to and sign up as distributors of the same products you are encouraged to buy on a monthly basis. If you do not buy and use the products yourself, how can you effectively sell them and the program to others? Sounds logical, but there is a much better way to make money.
What I have found from the MLM companies I have been a part of and in my most recent research, is that they all sound good at first but it is close to impossible to make money in them no matter how hard you try. Many people in network marketing will be quick to say that people fail because they do not work hard or are too lazy.
That is nothing but an excuse line that doesn’t take into consideration of the real problem. Requiring your members to buy the products they are selling every month just so they can also recruit people to do the same is flawed in my opinion. However with affiliate marketing you do not have this problem.
Affiliate Marketing is the most popular. Even Drop Shipping is more popular than MLM.
REASON 1: Affiliate Marketing does not require recruiting people
Unless you are an experienced marketer or sales guru, most people do not handle rejection well or even know how to get people to buy into a product or service. Have you ever felt awkward trying to get someone to buy something from you or to join a membership service? Were you afraid of them saying no?
You cannot make money in Multi-Level (Network) Marketing without recruiting people. This is because you will get the bulk of your income from those below you who you sponsor into the same business model you were sponsored into. Money keeps getting paid up to the person who did the sponsoring, your upline.
But in affiliate marketing there is NO upline or downline. There is NO recruiting necessary. You do not even have to make face-to-face contact with your people, and can literally work your entire day in your pajamas if you want. There is absolutely no reason for you to leave the comfort of your home.
And because there is no recruiting people needed, the money you make in your marketing efforts, 100% of it, you get to keep! There is no need to bother family and friends with overpriced products, the majority of products sold through an MLM are overpriced. This brings me to reason number two.
REASON 2: You promote products that people want in Affiliate Marketing
First off, with affiliate marketing you do not sell products, you promote them. You do this by blogging about them, writing reviews on them and giving your honest opinions. When people do a search online for products, they like getting the information they seek from real people and not the manufacturer or seller.
If you wanted to buy a new iPhone, would you seek to know the quality of it from Apple or a store selling it, or would you seek the review of real people who are currently using it? Both Apple and the store have a vested interest in selling that iPhone to you, but the independent reviewer does not.
NONE of these companies are involved with MLM but are in Affiliate Marketing
The image I have above explains the big difference between the products sold via affiliate marketing and those sold in multi-level marketing. In most MLMs the products are not well-known, are the company’s brand and are highly overpriced, just so they can support the compensation plan paid out to its members. Most of these plans are propped up from the high costs.
However in affiliate marketing the products you promote, not sell, are name brand items that most people have heard of and at prices seen elsewhere. Because there is no compensation plan to support, the prices do not need to be inflated. These reasons make it easier for those seeking the information you are providing to make a purchase.
REASON 3: You keep ALL of the money you make in Affiliate Marketing
Unlike in network marketing or an MLM, you do not have to share your earnings with anyone else. No matter what you make and when you make it, that money is yours to keep. So how do you make money in affiliate marketing? Where do you make it and who is it that will actually pay you your money?
You will be paid a commission, which is determined by each different company you become an affiliate with. This commission will be a percentage of the total order from a customer that your marketing efforts have sent to the store selling said item. At the end or beginning of each month you will receive your total income.
The process of how to make money online is quite simple and does not require you to attend conferences and home parties that are all too common with multi-level and network marketing companies. Why would anyone want that added expense and pressure when affiliate marketing is so much easier?
REASON 4: No hassle to make money in Affiliate Marketing
For example, the athletic company of Nike pays its affiliates 12%. A person searches online for information on a pair of Nike Lebron James basketball shoes. They see your review, like what you have to say and clicks on the free ad Nike gave you to place in your review. This person is now sent to Nike to make the purchase.
Make money from home promoting popular products instead of selling unpopular products
But let us say that this person buys not just the basketball shoes but also some Nike socks, a jersey or maybe a hat. No matter what is purchased from Nike by this person that got sent to Nike by the ad in your review, Nike will pay you 12% of the entire order total. The best part is you did not have to directly initiate the sale.
If this person spent $200, Nike will pay you $24. Now I realize that doesn’t seem like a lot but if 10 people were to spend that much you would get $240 and this is from only one product. Naturally you would be promoting more than just one. That is one of the many beauties of affiliate marketing, for no added cost you can promote as many products as you want.
REASON 5: Your investment in Affiliate Marketing is extremely low
As I said at the beginning of this post, I have been doing research recently on various MLM companies. Every single one of them requires a cost for startup that are in the hundreds of dollars. Yes it is true that you have to spend money to make money, but you do not have to spend hundreds of dollars, especially when starting out.
In affiliate marketing the only cost you have to pay to start is that of training, a website, domain name, and hosting services. All of this can cost you less than $50.00 per month! And depending on how hard you work at building your online affiliate marketing business, you can easily make that cost back every month.
That training and website services is the foundation of your business. The products you choose to promote, and there are millions to select from, will generate far more in monthly revenue than what you pay for that foundation. Example, if you were to promote only one signup to WP Engine’s web hosting service, your commission would be $200.00!
Affiliate marketing is the most cost effective way to start and operate an internet-based business. All affiliate programs you decide to join are 100% Free! You cannot even begin to make money in an MLM for a less than $50.00 investment. Plus you are not free to choose how you make money, and that brings up my last reason why affiliate marketing is better than multi-level marketing.
REASON 6: You can make money while you sleep, 24/7/365 days per year!
How would you feel if you woke up in the morning, checked your email, and found out that you just made money while you were sleeping? Perhaps it was a $200.00 signup for the WP Engine hosting service. By the way, WP Engine is the leading WordPress website hosting service in the industry with customers in over 120 countries.
You can make money from home promoting iPhones in Affiliate Marketing but not in an MLM
Or perhaps you are affiliated with Apple and you just made money on the sale of the latest iPhone and some accessories from your iPhone review. In affiliate marketing online, the skies the limit when it comes to what you can make and when you can make it. Once your foundation (training, website & hosting) is set, all you have to do is write about products and publish.
Once published these reviews and articles are on the internet for all 3 Billion Plus people to find and potentially interact with. Because there are always people on the internet searching for information on products and services, you have the ability to capture those people at any time and help them to make a purchase with what you are promoting.
In essence, your reviews and articles will act like online sales people capturing and converting those website product searchers into customers for your affiliates. Then your affiliates will pay you for every sale your published website content sends to them. You personally have no direct involvement in the process, which is why you can make money while you sleep.
How to Get Started in Affiliate Marketing for Free?
There is no doubt that affiliate marketing is far superior to multi-level marketing in many different ways. Absolutely none of the famous retail companies (Amazon, Best Buy, Nike, Apple & others) that sell online are involved with MLM, but most are involved with affiliate marketing. This makes it easier for you to make money!
I have not found any MLM or network marketing company that will allow you to start your own business for free. However there is one online marketing business building company that WILL let you start for free. You will get up to 20 different lessons (10 per niche course), a fully programmed website, and hosting services for free!
Only after you have tried out their initial training, understand how you can make money from the comfort of your home online in your pajamas, and built one or both of your free websites, will you be asked to pay to continue. That cost will only be $49.00 for training and website hosting, and then an additional $1.18 for a domain name. That’s $50.18 per month and your first month is discounted to ONLY $19.00!
The name of this fantastic opportunity is called Wealthy Affiliate University and that monthly cost of $50.18 USD will NOT go higher. There are no hidden upsells like most MLMs have. Absolutely everything is included in that low monthly cost. Remember, all affiliate programs with major retailers are free to join and so is Wealthy Affiliate. So start your business today!
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Hey Robert, Thanks for comparing Affiliate marketing v/s MLM (Multi Level Marketing). I am new in affiliate marketing . According to me both need efforts and consistency. But in MLM we have to put more efforts then affiliate marketing. In MLM we have to meet one to one. Rejection is more popular in MLM. In affiliate marketing we only need a website and good traffic. Yes, wealthy affiliate is the best platform from where we create our website and learn to ways to get organic traffic. That’s why affiliate marketing is easier than MLM.
Thank you .
Parveen
You are welcome Parveen. Yes, dealing with rejection is a huge problem with all types of MLM and Network Marketing. This is totally avoided when doing affiliate marketing. Because of this aspect and that you do not have to sell highly overpriced products most people have never heard of, affiliate marketing is a much easier and better solution for making money at home.
Hi Robert . I found your article very useful and informative. I have joined few MLM Program’s but it doesn’t work well for me .After joining wealthy affiliate , I came to know about affiliate marketing . I created my website. Joined few affiliate networks like Clickbank, Shareasale, amazon etc. and I found theses programs very useful.
In affiliate marketing, you can make money online from the comfort of your home.No 9 to 5 workings hours. You can even earn money while you sleep.
Well Thanks for sharing this great article !
You are welcome. Most people have problems generating income with an MLM. Affiliate Marketing is much easier over all.
Funny thing is Amway was my first experience in the MLM world. Network Marketing and MLM is the old way to make a residual income IMO
Computers, Internet marketing and Affiliate marketing is hands down the future
I have heard many good things about Wealthy Affiliate, seems like it is the top of the line in almost every aspect, and not very expensive to be a member.
Thank you for the comment Phil and I 100% agree with you. MLM and Network Marketing is the older and less attractive way for people to make money as an IBO, independent business owner.
As you have noted, we live in the age of the internet and by using Affiliate Marketing online it opens up our target audience from the dozens of people we meet to millions we do not have to meet all over the world.
It is true that Wealthy Affiliate is a fantastic place to not just learn everything you need to know about affiliate marketing, but it is also a platform that will help you grow your business and earn you money at the same time.
I have a question for you and anyone else reading this comment. Why would you even want to do the MLM job at all? I mean it’s plain as day that it would cost you a ton of money and have to push people into working of you basically. I just joined the Wealthy Affiliate program and I have to say that I wouldn’t change it for anything. You get so much help and anyone and everyone will answer the questions that you ask. Great article on why we all should not join those goofy programs and find something that really works. Thank you again.
Douglas
I agree with you Douglas. With all MLMs and Network Marketing programs you have to spend so much energy to convince people to purchase your products that are most likely over-priced and you have to convince others to join your team and do the same thing to others that you had done to them. It’s a great way to alienate your friends and family should you try recruiting them. Affiliate Marketing however is much easier without all the hassle.
Hello there!
This is an amazing article. I have already reead many articles on affiliate marketing, the Wealthy affiliate marketing. But this is the best article so far. This is for sure that affiliate marketing is far better than MLM business and you have described this so nicely by your 6 reasons. Most importantly affiliate marketing does not require to reqruit people.
Thanks for your amazing and so helpful article. It has encouraged me more to start my own job.
You are welcome. I am happy you enjoyed the six reasons why affiliate marketing is better than multi-level marketing. Affiliate Marketing is by far the easier way to make money.
I have been in a MLM company for 2 years put all my efforts in it but, I never made a dime. Every day I will try to recruit people and 98% of the time they don’t want my product. And my friends started to avoid me, it was a very bad experience. That’s why I tried affiliate marketing and I love it. Because of the variety of products. You can join a affiliate program with lots of products for any niche you want. And you don’t need to prospect client. I just create content and when I want to fast track my sale, I will pay for ads and enjoy my commission.
Affiliate marketing is really the way to go!
Thanks
Thank you for your comment. I too was once a part of an MLM, Amway to be exact. No matter how high a quality their products were it is close to impossible to make money from them when people can get similar well-known name brand products at cheaper prices in the store.
Then there is the problem with recruiting people into your down line. You have to first bait them with the compensation plan of how much money they could make and then sell them on how great the product is. But they too will most likely see the difficulty in marketing products that people can get in the stores.
Once the products themselves become a problem with people not buying them the only way for you to get back the money you have invested is for you to recruit people and HOPE they can do better than you have. With Affiliate Marketing you do not have any of these problems and the money making process is easier.
I wish to my life someday me solve problem for my family ,make a house and helping schooling to my chidrens and cousin,and help bring my parents hospital supporting in any expenses
Creating yourself an online affiliate marketing business can eventually help you to reach those goals. But in order to start making money online you need to learn the correct process for earning a sustainable income. Making a lot of money online takes time, just like it does when starting any kind of business. One must take training to do things the right way and then build the business.
This is really great information about the benefits of Affiliate Marketing vs MLM. I’ve known many people over the years who have tried to do MLM, but only one who has succeeded. On the other hand I know many people who are successful Affiliate Marketers. So many companies these days are looking for Affiliates to market their products. Also, with the right training, tools, and support, it’s easy and cheap to get yourself setup.
I have experienced the same thing Brett. I have never heard of or experienced an MLM that is as easy to make money with than an online affiliate marketing program. It is so much easier to make money at home with the sale of popular products at normal retail prices than it is from a similar MLM product at inflated prices.
For example if the product was coffee, which do you think you would sell more of, Starbucks coffee at a retail price or some non-brand MLM coffee product at an expensive price? It wouldn’t matter if the MLM coffee product was of high quality, the majority of people would rather buy the Starbucks coffee because it is a well-known and trusted brand.
This is probably the one main reason why affiliate marketing is better than multi-level marketing. Another reason is that in affiliate marketing there is NO upline that you have to share your money with. The money you make you get to keep 100 percent of and you can get paid by name brand fortune 500 companies. None of these companies would ever do MLM and why should you?
I would like to join this but require more literature. Please share.
You can just read any of the other blogs on my website pertaining to Affiliate Marketing. I have more than enough literature for you to understand how well and easy affiliate marketing is to participate in.
Hi Robert,
Affiliate marketing is definitely the way to go. All your reasons are spot on. I’ve never been comfortable with the MLM route I just couldn’t subject my family and friends to that sort of selling.
I like that affiliate marketing is more like directing. You’re saying, here it is its up to you, i think this is the best one and this is where you can get it too.
I agree Jenny. With an MLM or in Network Marketing you are at the mercy of getting other people to join your network and to do the same thing as you do. The majority of the time the products offered, if there is a product, is most times over priced or something that no one really would want. How can you market something that you have no confidence in nor that no one wants?
But with Affiliate Marketing you are promoting any product that you desire and in most cases are products that people want. Plus they will be paying retail and not some inflated price. When these products are named brands from familiar companies, it is much easier to make money for just promoting them, without needing to recruit people or sell directly to them.
Hi Robert Prescott
Excellent post! Very informative, I like every reason you given here, and that are reality. Even me I’m staring also doing this affiliate marketing for almost 4 months, and I really like it! Thanks for sharing! Well done!
Cheers
Eric
Thank you Eric. I am glad you liked my post. Affiliate marketing is by far a much easier way of making money online 24 hours per day than any other kind of online marketing. Not only do you have complete freedom to make money on any kind of product or service that you desire, but you do not have to directly interact with anyone to make your money. Plus the money you make, you get to keep 100% of it, unlike in an MLM or Network Marketing where you have to share with an upline sponsor.
Affiliate marketing is a lot easier to manage. I have tried to make money selling products from companies that would require me to sell to family and friends. I had to host parties and call my friends to see if they wanted to join. It was a pyramid scheme. With affiliate marketing I choose when I want to work, My site is always working for me 24 hours a day, I don’t have to make cold calls. Overall I have found that affiliate marketing is perfect for me. Great post. Thanks for sharing it.
Best wishes,
Eloah
Affiliate marketing truly is far superior, in my opinion, to Multi-Level Marketing because of many of the differences that you have just mentioned. What I did not like about MLM was that I was basically forced to sell only the products that the company made. I had no freedom to choose what I wanted to sell. Then I had to have home parties and try to sell my family and friends on products that even I didn’t really want to use.
But with Affiliate Marketing I do not need to bother my family and friends, I can promote any product I want and I am not forced to sell any particular product nor do I have to buy what I intend to promote. And the best part is that I can make money while I sleep and while I am on vacation because my website is live on the internet 24/7, doing all of the work for me. Affiliate Marketing is far better than Network Marketing or an MLM.
When I got started in the online space over two years ago, some of my first findings when I was researching on Google were multi-level marketing programs. Just as you mentioned, many of them sounded too good to be true with promises of huge earnings, but what I really disliked was the “recruiting” factor. The last thing I wanted to do was annoy my family and friends with advertisements and promotions just to make a few bucks – that’s just not how I wanted to go about it. I do think that MLM has the potential to work, and it has for some people, but it truly has to be a high-quality product/service (and unfortunately, that’s not the case more often than not).
Then I came across affiliate marketing and really liked the concept of creating content wrapped around well-known, high-quality products and services. Writing reviews with honest thoughts and opinions, and earning an income through search engine rankings and social shares. It was much more “under the radar” and less “in your face” than MLM programs. I also feel good promoting the services that I do because they’re not bogus. It’s truly a win-win for the vendor and promoter. And I can also attest to the fact that getting started in affiliate is cheap. Setting up a website and domain with hosting will cost less than $20 per year for the opportunity to make thousands. There’s so much opportunity in affiliate marketing with over three billion current internet users that everybody should be giving it a try – the potential reward is exceedingly higher than the risk.
Thanks for your comment Matt.
Though I would not claim that all MLMs are scams like many others have claimed, I will say that the majority of them are just not a type of business model of marketing that is profitable for the average person. Unless you are someone that gets in early, has a gift of being a sales person and a networker, you may have a chance to make some money. However the MLM/Pyramid structure of the marketing model is not sustainable.
Most if not all MLMs tell you to concentrate on your “warm leads” first and foremost, meaning your family, friends and co-workers. It is the belief that they, because they personally know you, will help jump start your business. But all it does is to make the MLM company more money and for you to upset the people closest to you. What kind of non-stress and easy path is that to take when starting out?
However as you know, with Affiliate Marketing there is none of these negatives when it comes to building and growing a new business from scratch. You can promote, not sell, products and services you personally like and you do not have to bother family and friends. Plus with the experience you gain from writing content and moving up through the search engine rankings, you can take that knowledge and provide similar services to others. This is something you cannot do in an MLM.
Affiliate Marketing is better than Multi-Level Marketing, also known as Network Marketing or Direct Sales, because it is cheaper to start, has less hassles, you promote popular products that people have actually heard of, and the prices of these products are of the suggested retail price and not some overpriced product that people will not want because they can find it cheaper elsewhere. Like you said, it’s a win-win!