The program described up to this point is defined as two-tier or two-level. Let's say you also receive direct financial benefit when Sally introduces her friend Matt to program. Now we're talking about a three-tier program. In MLM terms, Sally and Matt are part of your downline.

What's fuss? Now you have a clear understanding of differences with affiliate and MLM programs. They're both good business opportunities. Why would anyone care what label is attached to program?

Some people have a very strong attachment to one type of program or other. Proponents of MLM programs prefer potential for exponential growth. If you have a few successful entrepreneurs in your downline, you can build an impressive residual income. People who prefer affiliate programs wish to avoid difficulty with finding a quality MLM program. There are excellent MLM opportunities available, but scams and poorly implemented programs far outnumber genuine wealth-building opportunities. Affiliate programs are safer and less prone to failure due to poor management.

Bottom Line The difference boils down to presence of a downline. MLMs have one. Affiliate programs don't. Both can make money, but an MLM requires you to also sell money-making potential of program.

Neither option gets you out of selling company's product or service. Sorry.

If you have an affiliate network of 100 then you will probably only have 5 to 10 of those affiliates making money for you. The others will make nothing.

However those 5 to 10 affiliates can earn you much higher commissions than you alone can make with direct sales.

It is just like having your own sales force!

Only difference is it's not your product or service.

Becoming successful with affiliate programs need not be all that difficult. One way to make it easier is to build an affiliate network for each of your affiliate programs. It will certainly boost your affiliate commissions.