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Wednesday, October 24, 2012

Which is More Effective? Multi-Level Marketing or Affiliate Marketing?

By Christa Destefano

You can find some people use affiliate marketing and multi level marketing interchangeably when in fact they are totally different.

Some Multi-level marketing (or MLMs) have been around for years; consider Herbalife , they have been in existence for longer than 30 years. With MLMs, the name helps make clear how it works. Each person who joins the company is a "marketer". As an effective marketer, your main goal is to simply recruit others to join your organization as part of your team. Your commission is influenced by just how many people you bring into your team and how many people those people can bring in.

In the interest of this example, I'll stick to Herbalife. This company is a health and nutrition company, so they market health and nutrition items. As a marketer, you are seeking other people to market health and nutrition products along with you, but the other way you are making money is to market the health and nutrition items themselves. In any event, whether your selling the business opportunity or the products, it'll certainly take time, money and energy to be successful with this kind of work at home opportunity. I'm not saying this to deter you, I perform this style of work myself along with projects I do from home, and I really enjoy it.

In summary, being a part of an MLM is largely franchising you can do at home. Instead of purchasing a Dunkin Donuts franchise and purchasing a building, stocking inventory, hiring employees, etc; you're buying into a company that doesn't expect you to have a physical presence.

With Affiliate Marketing, you are not selling any items directly, nor will you be sponsoring or growing a team. You are basically receiving a set fee to market someone else's products and services. It's a one shot deal. Assuming you have an advertisement on your webpage for The App Code and an individual clicks your link and buys the product, you will generate payment. If the person who clicked on your link and bought the product also decided to be an affiliate marketer, you most likely won't be paid for that (if you do, it again will be a single payment.)

It is the significant difference between affiliate marketing and multi-level marketing. Affiliate marketing is made up of one-time payments, multi-level marketing is made up of setting up relationships and reoccurring commissions. Both are completely different and I advise using both to generate an income making machine from home!
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