Affiliate Marketing and MLM - Vive Le DifferenceWritten by Stephen Brennan
I have to start this particular article with this disclaimer. I have nothing against MLM (Multi-Level Marketing) or those who have found their niche within it, unless they don't know what word 'NO' means or they don't realize that a funeral is not right place to sell toiletries or washing powder (why did those two come to mind?) I've have been seeing Affiliate Marketing compared to MLM for years now and to be quite honest, I really thought that difference between two was so obvious that a comparison could never be made. Not so! People, who obviously don't understand what Affiliates do and how their programs work, are assuming that it is just another 'MLM' business model. Nothing could be further from truth. So, my mission today is to demonstrate (obvious) difference to those who would compare two, once and for all. Firstly, popular MLM business models that have been around for years, long before advent of Internet, are well known to most people, at least, I assume they are to those that make comparison I speak of. Otherwise, on what do they base assertion that they are same or even similar? The two most well known MLM businesses, we’ll call them two "A's", in fact, both market very good quality products and, by all accounts, service their customers very well. I think aspect or idea of MLM that causes some Affiliates to often be concerned about comparison is memory of MLMer who tried to sell perfume or hand cleaner at a Baptism. Basically, without going into huge amounts of detail, MLM is a network (also known as ‘Network Marketing’) of distributors, who SELL products to distributors they have recruited. The distributors make profit on products they sell to their ‘underlings’, and so on down an often very long line. Some Affiliates DO have massive 'Downlines' and they do make sizeable sums from 'residual' commissions generated by those who joined under them however, Affiliate Marketing is NOT an MLM model, even if there is a 'Downline'. In Affiliate Marketing there is no dependence on those who join underneath for you to earn a good income. It is a business model in it's own right and doesn't rely on 'Downline' to generate bulk of income. Residual commissions are usually very small and are simply an encouragement and reward by merchant for those Affiliates who bring others into 'fold'. Conversely, in MLM you need to have your ‘underlings’ selling in order to make decent money.
| | Affiliate Programs - Rags to RichesWritten by Ratliff J
Rags to Riches with Affiliate Programs.If you do not know what an affiliate program is, it is simply process of merchants paying you to bring them sales or leads. Here is why affiliate marketing is so easy and profitable: 1. Affiliate programs are free to join. The merchants do not charge you to become an affiliate, because they obviously want you to succeed. 2. Merchants spend hundreds of thousands to millions of dollars in advertising, that very rarely results in a sale. Seen all commercials on Television? Do you think everyone who see it will buy product? Of course not! 3. Merchants love affiliate programs because they are able to pay you only if a sale is made. And because this advertising is a guaranteed sale for them, they are able to pay you very well, usually between 10-30%. They are happy to do so because sale has already been made. 4. Since we are still in early years of affiliate marketing, there is a large shortage of affiliates. There will be many people who sign up to become an affiliate, but either do not have skills or time to become very successful. They will then blow off future opportunities simply because they failed with one affiliate merchant.
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