May 17, 2009

MLM vs Affiliate Marketing on the Internet

There are several MLM companies and distributors who say they are not MLM, but in fact when you look at the pay plan their true identity is revealed. MLM (multi-level marketing) is direct selling which involves a product or service. True multi-level marketing involves selling a product or service that is worthwhile both to the distributor and to the purchaser. When a distributor builds an organization of other distributors a percentage of the profits go to the upline (distributor) who sponsored no matter how many levels up.

Some MLM compensation plans are profitable by just reselling the products. Just reselling the products is also known as affiliate programs. Affiliate programs online are a dime a dozen. Most affiliate programs only pay out 1 level. You sell a product or service and you get a commission from the sale of the product. Also gaining in popularity are 2 and 3 tier affiliate programs. In these programs you get a small commission on your second and third level sales to. The main difference between an MLM and affiliate is the level of pay out. If the pay out goes down many levels it is considered MLM. A true affiliate program will pay out only a couple of levels down.

The first years of MLM revolved around recruiting your friends and family to purchase your products and join in. This type of marketing is also known as the warm market. Your friends and family trust you and want you to succeed so they buy into your program. The warm market method though had it downfalls, that being you run out of family and friends.

The 3-foot rule came along in the multilevel marketing arena. This notion was that you were to prospect everyone within three feet of you and sell your product whether you knew them or not. Fortunately this practice is not taught in MLM tips or techniques today.

In the 1980's and 90's newspaper advertising became pretty popular. Most of the ads were placed in the sales section in the classified ads. This form of recruiting new distributors was soon shut down by government regulations. The government contended that they were fake job ads. Today you may see MLM distributors advertise in highly targeted magazines although this type of advertising can be quite expensive.

Today, the Internet has revolutionized multilevel and affiliate marketing. Location is no longer an issue, you can advertise and sell globally if your company allows. However due to the Internet there are tons of get rich quick schemes. Additionally, there are pages upon pages of training sites and materials teaching how to build your business in MLM. I suggest that you thoroughly review each training program before purchasing.

To be successful in multilevel or affiliate marketing, you must use your product or service and have confidence in the benefits. Confidence in your product or service will show in your sales & recruitment of new members.

MLM and affiliate marketing has evolved across the Internet and I'm living proof it will provide a good stable income if you believe in your product and yourself. MLM is not a get rich quick scheme, it is an honest noble profession and a great work at home opportunity either part time or full time. When considering a multilevel or affiliate marketing business, take the steps to research the company, understand the compensation plan, and USE the product or service.

All too often people are convinced into joining a multi-level marketing company based on hype and the get rich quick schemes they promote. There are many MLM companies advertised on the Internet that promote themselves as a true multi-level marketing company but in reality, they are some illegal pyramid scheme. These get rich quick schemes usually offer no real or worthy product/service.

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