{"id":292,"date":"2023-02-18T10:00:00","date_gmt":"2023-02-18T10:00:00","guid":{"rendered":"http:\/\/82.197.94.223:5020\/?p=292"},"modified":"2023-03-27T09:21:03","modified_gmt":"2023-03-27T09:21:03","slug":"affiliate-marketing-vs-multi-level-marketing","status":"publish","type":"post","link":"https:\/\/www.roundsky.com\/blog\/affiliate-marketing-vs-multi-level-marketing\/","title":{"rendered":"Affiliate Marketing vs. Multi-Level Marketing (MLM): 4 Important Differences"},"content":{"rendered":"\n

When done right, affiliate marketing can become a significant income source. A majority of businesses consider affiliate marketing to be as effective as paid social media or organic search. 54% of companies<\/a> view affiliate marketing as one of their most important methods of new customer acquisition.<\/p>\n\n\n\n

It\u2019s for this reason that affiliate marketing has become a popular means for savvy marketers, influencers, and content generators to earn a living. But is affiliate marketing difficult? Can the average person become successful at it? Is it another form of MLM? And most importantly, when it comes to affiliate marketing vs. MLM, which is better?<\/p>\n\n\n\n

We\u2019ll cover that and more in this detailed guide. If you\u2019re new to the affiliate marketing world or just want to learn more about it\u2014keep reading!<\/p>\n\n\n\n

What Is Affiliate Marketing?<\/h2>\n\n\n\n

Affiliate marketing is the process of selling products or services by driving traffic to a brand\u2019s website. Marketers do this by creating enticing web or social media content related to the products they\u2019re aiming to sell.<\/p>\n\n\n\n

The process works like this:<\/p>\n\n\n\n

Step 1: <\/strong>A marketer adds an affiliate link to their website or social media platform.
Step 2: <\/strong>People click the link, land on a brand\u2019s website, and purchase a product or service.
Step 3:<\/strong> The marketer earns a commission.<\/p>\n\n\n\n

Depending on the terms of the marketer\u2019s agreement with the brand, they may also earn a commission with each lead generated.<\/p>\n\n\n\n

What Is MLM?<\/h2>\n\n\n\n

Multi-level marketing, also known as network marketing or MLM, requires the marketer to not only sell a product or service but also to recruit others to sell the product or service. The marketer earns money from their direct sales and also receives a percentage of the sales made by their recruits.<\/p>\n\n\n\n

Because they share a similar setup, people often compare MLMs to pyramid schemes. But unlike pyramid schemes, an MLM is completely legal and involves the sale of actual products or services. In pyramid schemes, money is made only through recruiting others.<\/p>\n\n\n\n

Affiliate Marketing vs. MLM: The 4 Main Differences<\/h2>\n\n\n\n

While similar, affiliate marketing and MLM have crucial distinctions in how they\u2019re run. Here are the four fundamental differences.<\/p>\n\n\n\n

1. Joining a Program<\/h3>\n\n\n\n

The first major difference in affiliate marketing vs. MLM is what a person has to do to join the program.<\/p>\n\n\n\n

Most affiliate marketing programs are free to join<\/span> (including the affiliate program from Round Sky<\/a>), while MLMs often have high startup costs that include a beginner kit and even membership fees.<\/p>\n\n\n\n

Because MLMs require purchasing a startup kit, many people struggle to launch a multi-level marketing business. Unless you have an extensive personal network, recouping the cost of the beginner kit can be challenging, and earning a significant income can be even harder.<\/p>\n\n\n\n

2. Making Money<\/h3>\n\n\n\n

Affiliate marketing and MLM vary when it comes to income potential. While both offer commission, some major differences still exist.<\/p>\n\n\n\n

Affiliate Marketing: Commission Is Based on Conversions<\/h4>\n\n\n\n

When you\u2019re an affiliate marketer, you earn a commission based on the number of sales<\/a> you\u2019ve made through your custom affiliate link, and you don\u2019t need to follow up with audience members that showed interest but didn\u2019t buy.<\/p>\n\n\n\n

With affiliate marketing, you don\u2019t need to have sales experience. Instead, your job is to use your content to generate interest and convince people to buy the product or service (or, in certain instances, simply request more information).<\/p>\n\n\n\n

Another benefit of affiliate programs is that they don\u2019t have a time cut-off\u2014meaning that a video you made five years ago can still earn money as long as people continue to use that link.<\/p>\n\n\n\n

MLMs: Sales Are Determined by Network Size<\/h4>\n\n\n\n

MLMs offer recruiting bonuses on top of commission. Depending on the policy of the particular MLM, you may have to hit a specific amount of sales or recruits before you see any money\u2014even if you\u2019re successfully selling the product.<\/p>\n\n\n\n

Some multi-level marketing programs will also \u201creset\u201d each month, which means you\u2019ll need to work toward hitting a new recruiting or sales threshold from scratch.<\/p>\n\n\n\n

MLMs depend heavily on the size of your network and your ability to sell. If you don\u2019t have any sales experience, the job can be an enormous challenge.<\/p>\n\n\n\n

3. Choosing What Product to Sell<\/h3>\n\n\n\n

People enjoy affiliate marketing because it offers a lot of freedom, including what products to promote or ignore. Most successful affiliate marketers promote products or services they\u2019ve used or whose niche they\u2019re familiar with.<\/p>\n\n\n\n

This choice allows you to be genuinely excited about these products, which makes creating content easier. Your audience will be more likely to buy because your authenticity, enthusiasm, and product knowledge will naturally shine through in your content.<\/p>\n\n\n\n

MLMs frequently pick what products people sell. You may have joined to sell one product, but the MLM parent company will tell you to sell additional products\u2014even ones that you know nothing about. Not only can this be demotivating, but it can make it harder to convince others to buy.<\/p>\n\n\n\n

4. Selling Methods<\/h3>\n\n\n\n

Another significant benefit of affiliate marketing is you get to choose how to sell the product\u2014which means you can do anything and everything\u2014as long as it doesn\u2019t reflect poorly on the brand.<\/p>\n\n\n\n

Typical methods marketers use include:<\/p>\n\n\n\n