Affiliate programs versus Multi-Level Marketing
Date: 2011-08-11 08:44:18
Online affiliate programs are often unfairly compared to Multi-Level Marketing companies. While there are certain similarities they are very different things entirely.
So, what does it mean to be an affiliate?
To be an affiliate is to advertise a product and to earn commission based on either:
1) The number of people you refer to a site who register and make a purchase (Cost per Acquisition model - CPA)
2) A percentage of the sales value of what the referred traffic purchases (Revenue share model)
The general characteristics of an affiliate program
People are able to join an affiliate program for free! Affiliate programs will not charge affiliates for promotional materials (This is definitely the case with online materials but certain programs may charge for offline promotional materials)
The general idea is that the program is not making any money by simply having affiliates signup and / or purchase marketing materials. The money is only being made from an end user purchasing a very real and quality product.
What is Multi-level marketing?
Multi-level marketing (or 'MLM') is a marketing method whereby marketers are paid for the sales they make, along with the sales of the marketers that they recruit. There is thus a dramatic 'down line' of marketers/distributors and a (often very complex) hierarchical system of reward and remuneration.
The downside to Multi-level marketing is that it very often simply involves endless levels of marketers all signing up marketers below them with no one actually making real sales and with only the very top tiers receiving the financial benefit (which comes primarily from the recruitment of the sales force and the sale of marketing materials). In recent years there have been many MLM organisations that have collapsed, along with many that were revealed as nothing more than pyramid schemes.
A reputable affiliate program will NEVER:
- Require you to pay a joining fee or to pay to market the product
- Require you to purchase advertising and marketing materials
- Require you to buy the product yourself or samples of the product. In fact one of the many benefits of being an affiliate is that one never has to worry about purchasing or selling any stock. The company that you are partnered with will handle all of that.
Remember: The company that runs the affiliate program will make its money from selling its products - NOT from having people 'buy into' the program.
There are many legitimate ways of making money online and becoming a lottery affiliate is just one example. Choose a reputable lottery affiliate program such as LottaRewards.com and steer well clear of any fly-by-night, get-rich-quick schemes.