Affiliate Marketing Or MLM- Which One is Better?

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Paul Profitt is a Affiliate Marketer and Blogger. He first started blogging in 2009 and his web site is now firmly established in the Affiliate Marketing niche. He also has articles published on bizcovering And has made over 20 videos on Magnify That show newbies how to get started online.

Paul has written 1 article for ComLuv.com
I normally write at http://www.i-want-to-know-marketing.com

Twitter: @paulas2 | Facebook | Google Profile

Affiliate Marketing vrs MLM
If you have been online and active on Facebook or Twitter. For a fair amount of time. You will have no doubt seen ads for various work from home business opportunities.

Most of these business opportunities. Fall under  MLM (Multi Level Marketing)  or Affiliate Marketing.

There are still a lot of mis-informed people. Who think,  they are one and the same thing.  If this includes you. Then I’m here to say that you are WRONG!

My way of describing the difference between the two. In layman’s terms is.

MLM is all about the  people. Whereas. Affiliate Marketing is all about the product.

Facebook and Twitter are prime targets for most MLM.  If you study their profiles on those websites. You will usually find that they have.  Loads of followers. Probably a link somewhere.  To a slick sales presentation video. And last but not least. Never ending self promotion messages.  In their Twitter Timeline.

Multi Level Marketers, use these tactics. To try and convince you to sign up to their so called free business proposal.

But after closer inspection. You will soon discover that you must pay a basic introductory Fee. To stand a chance of making any real money. Now the key point to remember about this introductory Fee.  And what makes MLM different from Affiliate Marketing is.

How much they charge you for joining. From personal experience.  I can tell you that it can cost anything from a few dollars. To a couple of thousand dollars.

Most people who have crashed and burned. In MLM. Will be quick to tell you that the only ones making it big.  Are the guys who started it. They would also say. That for the most part.  Multi Level Marketing is a flawed model.

Because…

You as the opportunity seeker.  Are essentially the only person buying the product.  And you as the dreaming entrepreneur. Will be left holding the baby. When it comes to marketing the product.

That is why there is such an emphasis on recruiting people to go under you. Think about it,  all the hype and all the sales pitch talk is about. You making money from recruiting more representatives.

Little or no talk is invested on the product, mainly because the product is usually of poor quality, or readily available via other marketing channels. Also, because of the way the compensation plan is set up with all the bonuses and what not. And the price for the product being so ridiculously high.  There is little chance, that anybody will ever buy it from you.

Now Let’s Talk  Affiliate Marketing

I will start of by saying that.  All of the tactics used by MLM on Twitter and Facebook.  Are also used in Affiliate Marketing. However. There are 2 big differences. That you should be aware of.

1) Most Affiliate Marketing Programs are FREE to join.

2) Affiliate Marketing has a far greater range of product choice.

Let me just state for the record. That nothing in Online marketing is ever truly free. And most Affiliate Programs do advertise an optional upgrade offer.

People who have tried and failed in Affiliate Marketing. Will tell you that. It is a flimsy business with a revolving door of “hot programs” that come and go on a monthly basis.

They will also say that it has very little infrastructure. No customer support. and it is run by  yuppies. Who stroll around all day long in their bathrobes.

Another disadvantage of AM is that it has a far steeper learning curve. When compared to Multi Level Marketing.

Some of the basic skills you need to learn include. Email Marketing, Video Marketing, Blogging, and how to use wordpress.

In theory, you should be able to make money easier in AM. Because of the wider product range available. But in practice it very rarely works out that way.

A common complaint from people involved in Affiliate Marketing is. Suffering from the dreaded Information overload.

This occurs when you sign up to a few  news-letters from Affiliate Marketers. And they send you emails. Telling you that everything  you have learned so far. About making money online is wrong.

They then proceed to try and sell you the latest product. Promising to make you thousands of dollars in a few months or less.

So in closing this article.

Remember that there no such thing as a free lunch. In either of these 2 business opportunities. You have to be thick skinned and determined to succeed.

Will you get scammed? probably.

Can you make money? definitely.

But it won’t happen overnight. MLM and Affiliate Marketing are not for the faint hearted. It is in my opinion. For people who are brave enough to follow their dreams. And not blame everybody else for their failures.

Paul Profitt is a Affiliate Marketer and blogger.Visit his website to learn how to start your new online business Today!



Comments

  1. I prefer affiliate marketing but building adsense sites are a much better way of earning residual income than both affiliate marketing and MLM in my opinion. They quicker to set up and don’t require a ton of work, if done thr right way though.

  2. I’m personally a fan of affiliate marketing myself.. I’ve almost gotten taken up by the MLM train but I don’t like that most depend soley on your personal interaction with people..

    and then I heard of so many being fly by night operations.

    One tip though is to not try to do both at the same time in the beginning. You’ll spread yourself thin and most of the time wont succeed at either.

    I feel victim to this trying to do multiple things and finally realized IM and AM are for me.

    and whatever handles your periods, commas and punctuations, FIRE IT.. I was struggling trying to make my mind not stop at a periods and put periods where there were commas and so on..

    Best wishes…
    Dennis
    Dennis Marshall recently posted..The 5 Step Process On How To Stop Typing With “Dog Paws” (w/ funny video for dog lovers)My Profile

  3. Shiva
    Twitter:
    says:

    Affiliate marketing is bound to be easier than network marketing since in Multi Level Marketing one has to do a lot of stuffs to recruit people under them while on the other hand in affiliate marketing, one does not need to generate so much hype for the product.
    Shiva recently posted..What is WordPress?My Profile

    • Paul Profitt
      Twitter:
      says:

      Hi Shivachettri

      Thanks for commenting.

      Affiliate Marketing easier than Network Marketing really! I don’t think so. There is so much more stuff that you need to know in Affiliate Marketing. For instance sales copy,ad copy,email marketing and blogging, are just a few of the skills that you should have a basic understanding of.

  4. Blog Lady
    Twitter:
    says:

    Thank you for your article. MLM is a bad way to do business IMHO. If you have faith in a product you are selling, you’ll push it forward and stand by it instead of let it be on the sidelines. MLM is also how pyramid scams work.

    Affiliate marketing can be as simple as signing up for an affiliate account and plugging a code or link in your website. You could be more ambitious than that, but it’s really easy to get started. I vote AM all the way.
    Blog Lady recently posted..8 Tips for Job Hunting on FacebookMy Profile

  5. Clara
    Twitter:
    says:

    Affiliate marketing appeals to me – probably because I prefer working with things than people. Also, MLM just seems a little to close to a pyramid scheme to me.
    Clara recently posted..Recipes for Natural Beauty: 100 Homemade Treatments for Radiant BeautyMy Profile

    • Paul Profitt
      Twitter:
      says:

      Hi Clara

      Thanks for commenting

      That is one of the key reasons why I love Affiliate Marketing so much. You can choose whether to work within a team or by yourself. Without seeing a significant drop in your earning potential.

  6. Nadia
    Twitter:
    says:

    Which is better? It depends your point.In my opinion,I think the mlm is better.You can do it all yourself and in your style.
    Nadia recently posted..Kindle Fire Satisfaction After 3 MonthsMy Profile

  7. George says:

    Well after reading this I can surely say that Affiliate Marketing is better than MLM. And Paul your right that it’s all up to you i.e, the amount of effort you put in the work, the more you can get out of it.

    Thanks for clearing my head.

  8. Patrick says:

    I honestly prefer to use both MLM and affiliate marketing simply because I like the idea of multiple income opportunities. It’s a tricky, complex and demanding approach to use, but every business is hard work anyway and any success will not just come easy, so I figure the added effort will pay off.
    Patrick,
    Patrick recently posted..Pay Per Click AdvertisingMy Profile

    • Paul Profitt
      Twitter:
      says:

      Hi Patrick

      Thanks for commenting

      Using both MLM and Affiliate Marketing techniques in your business plan is a good idea. But I don’t think many newbies could handle doing both of them at the same time.

  9. masita says:

    I do not know which one is stronger between the two ways. MLM affiliate or individual has the same power, depending on needs. But, Thank you for sharing
    masita recently posted..Advan Vandroid T1 Spesifications and ReviewMy Profile

  10. Jack says:

    :) ) You were right! I didn’t see much difference between MLM and affiliate marketing. I’m glad I’ve read your article!
    Jack recently posted..Simple DIY Projects That Can Transform A HomeMy Profile

  11. Joseph Shaw
    Twitter:
    says:

    Paul,

    Excellent post. It all comes down to committing to what you are doing until you get it figured out! No business model will make you successful until you decide what you want to do and go all out till you make it work!

    Joseph

  12. jan
    Twitter:
    says:

    And then you have the exceptional MLM companies like Vemma with no joining fees and no ongoing fees ever, a fantastic nutritional supplement that has been put to the test in two double-blind studies that have been published in one of the scientific journals. Only two legs to your team and your team leader puts people in one side so half the building is done for you. I don’t know any other companies who help you in this way – I have 70 people in one side and did not sign any of them up. We also have an exceptional CEO who donates a months supply of the children’s supplement when another one is purchased. MLMs are hard work but don’t lump them all in the same basket. I have been in a few so have some experience, and every single time that Vemma makes a change it benefits the brand members – most of them you have to work harder! You do have to use the product obviously, but that is a small investment in your own business and I have not had colds, flu or stomach flu for three years now.

    Also, saying that MLM is like a pyramid scheme is like saying that an apple is like an orange. In a pyramid scheme, only the guy at the top ends up making money, in an MLM scheme, anybody, anywhere can make money.

    I am also an affiliate marketer and love both and I think Paul has explained well the Pros and Cons of both. I think MLM is harder but if you are gong to go that way, you do need to pick the right company.
    jan recently posted..I quit sugar – how to stop sugar addictionMy Profile

    • Paul Profitt
      Twitter:
      says:

      Hi Jan

      Thanks for commenting

      I had a look at a few reviews of Vemma before writing this response. I must say that on the surface.Vemma looks like a solid reputable company…it reminds me of another MLM company that I was involved in more than 20yrs ago called Amway. Who are still going strong today.

      • jan
        Twitter:
        says:

        Hi Paul
        I was in Amway as well and it is a fantastic company – I got some very motivational training and heard many tales of people turning their lives around. What I didn’t like about Amway back then and it may have changed by now, you never said it was Amway, you had to try to get people to look at the plan by offering them a great business opportunity (which it was), but you didn’t say it was Amway because by then so many people had been turned off it and harassed by friends or family trying to get them to join. Herbalife use the same tactics now through a website – you can’t find out what the product is unless you give them your name and number! Again, it’s an awesome product so why use these underhand tactics to get people in? What I love about Vemma is that everybody is so proud of the company and the products and it is all very upfront, you direct people to your site and they can get every bit of information that they could possibly want about the products and company.
        jan recently posted..Five Reasons why French women don’t get fatMy Profile

        • Paul Profitt
          Twitter:
          says:

          Hi Jan

          The problem that I had with Amway.Was that my up line did not have enough experience. He told me to invite 10 of my friends to a presentation, he would be giving at my mums flat.I did as he requested, but when the day came for him to try and
          convince my friends to join Amway. He totally went to pieces, and cracked under the pressure. From all of the questions my friends were asking him.

          • jan
            Twitter:
            says:

            Hi Paul
            That sounds terrible and a bit like the experience I had. My up line came over to make some phone calls for me and then when he phoned people he asked them if they wanted to be part of a buying consortium! He made it sound like those groups who go to the markets, buy lots of fruit and veges and then divvy it up. He was very well off so he bought enough products to get to to silver level and then when he didn’t have enough points flowing through the next month had a big fight with Amway saying that he should still get paid at silver level! When he went up on stage he said “I shouldn’t even be here because I’ve got status”! Boy, he missed the whole point of MLM which is to nurture your down line and help them to be successful. Needless to say he quit pretty soon after buying his way to silver level!
            jan recently posted..The Gabriel Method, no diet dietMy Profile

  13. Paul,

    You hit the nail on the head with what you just said, myself being a network marketer for the last seven years come across this exact question from alot of newbies and the way you explained it was perfect if you don’t mind me stealing your quote:-

    “MLM is all about the people. Whereas. Affiliate Marketing is all about the product”

    The correct way to do network marketing is all about networking and connecting with people by providing some value, unlike so many people out their just trying to sell their product giving our industry a bad reputation.

    Nice choice of topic.

    Abdul Waheed
    Abdul Waheed recently posted..The Importance of an Auto ResponderMy Profile

  14. jan
    Twitter:
    says:

    Affiliate marketing is not always about the product. For example on my main site I really want to connect with people, help people and build a community, I hope that people will come back every week and read my posts, so obviously they are not going to buy stuff every week. If new visitors buy a product then that is a bonus.

    Some people that I follow like Mitz from Website Builder, Ben from SEO Discovery and Tiffany from Tiffany Dow.com. they are all people who care about their readers, they give advice freely, often help people and fully engage with the people who follow them.

    There will definitely be sites that you don’t really want to engage with people but there will be others where building your community is very important.
    jan recently posted..Five Reasons why French women don’t get fatMy Profile

  15. vikas
    Twitter:
    says:

    First of all thank you for the great post.Its true that Mlm is about people where as for affiliate marketing you just need to have good traffic on the website and people notice the product and some of them buy it.If you good at convincing people then Mlm is better.

  16. I’m in Affiliate Marketing for three years now and it really pays off. Success is coming slowly but it comes. It is essential not to give up too early.

    Rainer
    Rainer Hornberger recently posted..Bosch SMU58M75EUMy Profile

  17. Kent
    Twitter:
    says:

    I have been making decent income with Affiliate Marketing. It takes time to learn and get traffic online. After all, it’s kind of passive.

    I don’t know much about MLM, but I learned that you are supposedly to get good training especially how to sell skills which is attractive to me. Indeed, I don’t like working with people.

    Working online is more comfortable for me.
    Kent recently posted..MMO Monthly Report January 2012My Profile

    • jan
      Twitter:
      says:

      You do get fantastic training with MLM. I don’t know if it so much about selling products as selling the dream – so that motivates people to sell the products. What I don’t like about MLM is that you find a company that you believe in with fantastic products, and then you have to convince others the same. That can be very disheartening trying to convince people about this fantastic opportunity and great company with great products.

      With affiliate marketing when you get the targeted traffic, people are actually looking for your product so it’s not so hard to sell, people will buy or not, so what, you’ll get other visitors from all around the world. MLM is more face to face and the need to get out there and speak to people which can be hard if you don’t have a very large circle and you don’t want to be annoying your friends and family for evermore!
      jan recently posted..The Diet Solution program review – kick your metabolism into fat burning modeMy Profile

      • He Jan,

        That where you are wrong about MLM, there is this misconception about network marketing (MLM) that you have to SELL SELL SELL, pitch pitch and pitch more and basically be a pain in the @$$, it is definitely true that most people do this, but it does not mean it’s the correct way to do things.

        In fact you know all the top earners and top producers with huge pay checks they never sell there business opportunity, they in fact sell them selves as people who know what they are doing and can help anyone who joins them get similar results.

        This is exactly what I have done, I have branded myself as the “Go to person” who people can look at for support and in doing so people, have started to know, like and trust me so there barrier of rejection have dropped and they are easily open to join any business I ask them to.

        Check out my blog for more on attraction marketing Jan and how you should really be doing it.

        Abdul :)
        Abdul Waheed recently posted..Key To MLM Success #1 – Use Attraction MarketingMy Profile

    • Paul Profitt
      Twitter:
      says:

      Hi Kent

      Thank you for commenting

      I get where your coming from. You prefer to be in charge of your own earning potential. Instead of it being dependant on the work of others.That is what attracted me to Affiliate Marketing also.

  18. Luke
    Twitter:
    says:

    Here’s the issue, MLM marketers tend to almost always focus on new recruits and building their network and not the product that they themselves are also supposed to be selling!

    It then becomes a vicious circle of the new recruits and their recruits trying to recruit more people! What does this sound like? It’s a pyramid scheme masked with a legitimate product.

    Affiliate marketers may be commission focussed but at least they focus on promoting the product and nothing else!
    Luke recently posted..Tenease Demonstration VIdeoMy Profile

    • Paul Profitt
      Twitter:
      says:

      Hi Luke

      Thanks for commenting’

      In all fairness. I think that it would be unfair to tar all MLM marketers with the same brush. There are some good ones about. I would suggest that you check out Abdul above. And click on his link about attraction marketing by Mike Dillard

      • jan
        Twitter:
        says:

        Paul thanks for that comment, some people who get into MLM might just focus on the recruiting, but if you don’t have a fabulous product or products that you believe in and use yourself I don’t really know that you will be too successful.

        Luke, MLM is not a pyramid scheme. With a pyramid scheme the sucker at the bottom gets left with an expensive product that they can’t sell. All the MLM schemes I have been in everybody pays exactly the same price for the products – whether you are new to the business or are earning $10K a month. Some of the MLM businesses offer you a discount if you become a member – but it is the same for everybody, no matter which level you are at. If the products don’t sell, where are the members going to get their commissions from, there has to be some money flowing through the organisation?

        With Vemma, the product is so fabulous, that’s what makes people want to join half the time. They use it, feel the difference and decide to join the business so this business is very product driven. Unless an MLM business has fantastic products, people won’t join, what’s the point?

        Also, some affiliate marketers do not just focus on promoting the product and nothing else. I have a weight loss and health blog which has a number of affiliate links, but several of my posts have no links at all – I am just giving my readers information about weight loss, health and fitness. It is not MLM it is affiliate marketing but myself and quite a few others I know care about giving our readers quality information. If we get a sale, well that’s a bonus.
        jan recently posted..Lack of sleep and weight gainMy Profile

      • Luke
        Twitter:
        says:

        I guess calling MLM a pyramid scheme is a bit harsh but there is a harsh reality about MLM and you can’t argue that this is true, and this is what makes it come across like a pyramid scheme.

        The best MLM marketers are highly driven individuals and more so, great sales people not just of the product but of the MLM concept (i.e. recruiting). Unfortunately though they will almost always end up recruiting 2 types of individuals,

        1. Those like them who continue the momentum
        2. Those easily sold into the concept and appear driven at first but then become easily demotivated at obstacles which in turn affects their performance

        What happens next is inevitable , the recruiter then nurtures those that do well, the number 1s , then drops those that don’t do well, the number 2s in exchange for more number 1 recruits rather than guiding them on the right path.

        It’s how it’d done in the business world anyway, MDs and CEOs drop the non-performers except the difference here is rather than losing your job you’ve also lost money on training courses and products you have an inability to sell

        I’ve been to business networking events where about 10-20% of the people there where from some form of network marketing group. To be frank everytime I sat in front of them it’s always been about them trying to recruit me and always seemed disinterested in my business despite my best efforts to understand what they did.

        It was so incredibly awkward that every time people from those networks, and these are HUGE networks, approach me now I’m blunt with them and tell them not to waste their efforts on me.

        This may not be true for all MLM marketers but is most definitely true for a big percentage.
        Luke recently posted..Do you have a Shellfish Intolerance or Shellfish Allergy?My Profile

  19. Nimsrules
    Twitter:
    says:

    I gave Amazon Associates a try on a fellow blogger’s recommendation and it worked wonders for me. If you hit the niche to which your readers are inclined you’re definitely gonna make some good money. Affiliates is the best for me.
    Nimsrules recently posted..The cheapest android phone yet?My Profile

  20. Jenni
    Twitter:
    says:

    I don’t think Affiliate Marketing is all about the product, it’s still about people, sell product that people love it.
    Jenni recently posted..8 Ways to Give Your Website that 2012 Look and Feel it DeservesMy Profile

    • Paul Profitt
      Twitter:
      says:

      Hi Jenni

      Thanks for commenting

      I am speaking in general terms. When I say that Affiliate Marketing is all about the product. But you have to admit, that most people who are involved in AM. Constantly promote products that they know nothing about.

  21. Sara says:

    I strongly agree with a previous Blog Lady’s comment, which says that you must support your product with any means and not let it be mislaid.If the product is lost is your fault.I’m not sure which one is better but a good formula for me is to combine your hobby or something that you like with your work.By doing this you make a strong niche because you know your topic very well and that gives you the benefit to inform your visitors in a good way and sell the appropriate products.In this way you can also be interactive by establishing a forum and create a community site with a perspective that you will increase your income.Great article Paul and thanks for sharing.I noticed many comments and i really took many good opinions.It seems that your article urged many people to write good comments.Bravo again Paul.
    Sara recently posted..Succulents – The Basics of a Virtually Indestructible PlantMy Profile

    • Paul Profitt
      Twitter:
      says:

      Hi Aidacarbone.

      Thanks for commenting

      The only way to recommend a product is to use or buy it. Assuming of course, that their is a fee involved. Writing an article that is mildly controversial. Can be beneficial in some ways, but it can also be very time consuming. Please remember that if you ever decide to write a article for this site.

  22. Man Paul you rocked this article out love it! There is definitely a big difference between the both no matter which one you are in it takes time, consistency, knowledge & skill to build any business. The thing is that people get extremely frustrated when they are brand new to something & they have to go through a learning curve 90% usually quit.

    In my opinion how can you build a profitable business if you’re not willing to learn, become educated, network & help others.

    Thanks for this one because it’s straight to the point:)
    Toshiba Burton recently posted..10 Prospecting & Recruiting Tips That Will Knock The Socks Off Your BusinessMy Profile

  23. elena_anne
    Twitter:
    says:

    I have tried several MLM schemes, spent money and time on training and materials but they didn’t finally work. The main reason for this they are based totally on creating emotions and focusing nearly on dreams. Affiliate marketing is totally based on logic and it is a very good source of passive income. Further more the majority of the affiliate marking tasks, can be outsourced.
    I like your approach Paul, thank you for sharing.
    elena_anne recently posted..Echinacea Benefits And Common Cold: How It Helps And What Are The Possible Side EffectsMy Profile

    • Paul Profitt
      Twitter:
      says:

      Hi Elena

      Thank you for leaving your comments.

      Wow! you have been burned by several MLM schemes. In the interest of other people who may read this. I wonder if you would be willing to name and shame a few of them.

      • jan
        Twitter:
        says:

        That would be a shame to actually name and shame any MLM companies simply for trying to build a dream. They all do that to some degree because that’s how they supposedly keep you interested, keep up the momentum and help you to stay positive when you get negative reactions. Like Elena, I have joined several companies and spent thousands on seminars, books, tapes and promotional products but never got anywhere. It doesn’t mean that they don’t work – you only have to look at the successes in the company to see that it does work for some people.

        What is so awesome about IM is that it only relies on you and your input and how hard you work. You don’t have to talk to people to convince them that you have an amazing product to buy (even if you do) or an amazing business opportunity, which many of them are. Success in MLM marketing depends on signing up others and getting them to do the same (and no it is not a pyramid scheme), and that’s the toughest part.

        I was in Amway and had zip success at all, but in the home MLM marketing letter that I subscribe to it is still one of the top MLM companies in the world – so some people are having a lot of success. Dexter Yaeger who is one of the top earners – he may still be the top earner – had 100 people say no to him before he got a yes, it depends on how willing your are to approach people until you get your “yes”.

        The MLM companies to be named and shamed have already gone broke or are about to because there are so many good MLM companies out there, that people just jump ship if they see dodgy stuff going on.
        jan recently posted..Does exercise help you to lose weight?My Profile

  24. Hi Paul,
    I guess both are different fields and have pros and cons of their own. Yet, I would prefer affiliate marketing since you can promote anything you want at any level.

  25. Paul Profitt
    Twitter:
    says:

    Hi Vineet

    Thanks for leaving a comment

    Yes it’s true. You do have more product choice in Affiliate Marketing. But sometimes having too much choice can become a bad thing.

  26. Yes Paul, this is surely a negative point. But I always prefer affiliate marketing. One more thing is that there are very few genuine MLM schemes available as compared to affiliate marketing.
    Vineet Saxena recently posted..How Many Plugins Your WordPress Blog Should Have?My Profile

  27. andrew mchugh
    Twitter:
    says:

    i agree with you Paul great post the biggest thing is committing to what ever you decided to do
    andrew mchugh recently posted..Does multi level marketing work ?My Profile

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