Affiliate vs. MLM
These words are often used interchangeably, but actually indicate very different types of programs. Both systems allow participants to develop income streams, but they require different approaches in order to be successful. Since focus of AffiliateScreen.com is to review programs that could be used to build residual income, you can find both types of programs listed here.
Affiliate Programs One of best examples of an internet affiliate program is offered by Amazon.com. If you have a website, you may place links on your site to Amazon.com (either general pages or specific products). If someone clicks your link then ends up buying a product, Amazon.com will pay you, as an affiliate, a commission on sale. That is an affiliate program in its simplest incarnation. If you manage to get a large volume of people to follow your links to Amazon.com and make purchases, then you can expect these commissions to amount to a healthy revenue.
MLM Programs Multilevel marketing programs (MLMs) are more complex. Let's say you are an Amazon.com affiliate and you are making a little extra money from commissions. Your friend Sally has a website and asks you about becoming an affiliate. You direct Sally to section of Amazon.com's website that addresses joining affiliate program. Wouldn't it be nice if Amazon.com gave you some financial reward for introducing Sally to affiliate program and potentially increasing Amazon.com's profit? (They don't, by way.) If you do receive any form of direct financial benefit for introducing new people to program, then affiliate program becomes a multilevel marketing program.
The direct financial benefit can take many forms. You could get a flat fee for introducing Sally to program. You might receive a small commission on sales generated from Sally's website. You could receive a payment each month that Sally participates in program. You might get some combination of those options.