Multilevel Marketing vs. Affiliate Marketing
Multilevel marketing companies, also called network marketing companies, direct selling companies, or other names, are not new.
Companies like Avon, Mary Kay, Herbalife, and other MLMs have been around for a long time. But with the advent of social media, they have acquired a new vigor and profile in this new era of internet marketing.
Their business model defines these MLM companies, and They do not use the traditional storefront method of selling their goods; MLMs sell their goods through”business owners ” who are paid on commission.
MLM is a group of small business owners selling the same product from the same Company.
These small business owners are not paid a salary. They consist mainly of stay-at-home parents, college students, or part-time workers hoping to make money by selling products such as vitamins and makeup and perfumes to their friends and family.
But just selling products is not enough to make a profit, and “these small business owners” are encouraged to recruit “others to their team referred to these as downline,” a team of people from whose sales they also earn a commission, from which you get a compensation structure. So the more downlines you have on your team, the more commission you get.
It is estimated that some 20.5 million people were involved in direct selling in the U.S. in 2016; according to the national trade association for companies, the Direct Selling Association, states that products and services are marketed directly to consumers through independent sales force.
Many direct selling companies use an MLM model, but not all do; recruits pound the pavement selling everything from candles to essential oils and weight-loss drinks.
Proponents of MLMs advertise them as a way to make money without working a regular 9-5 job, but a vast majority of MLM participants make no money at all, and some may even spend more than they earn.
There is a constant push to sell, sell, sell, and this can be hard to do to make any money.
So before you sign up with an MLM company, do your research. Here’s what to know before getting involved in an MLM company
Forget the hype; do not expect to make much money, if any at all. Analysis of 32 income disclosure statements from direct selling companies found that 80 percent of people selling their products grossed less than $1,200 per year before expenses; about half of those “small companies” made no money at all.
With that information, any income claim that implies that this is a way for someone to gain financial freedom is just false and deceptive.
It is noted that nearly three-quarters of people involved in direct selling are “discount customers,” who are buying the products for themselves and not selling them. For that majority of these people, earnings aren’t just small: They’re nonexistent.
While legitimate MLM companies are allowed to operate under the law, experts recommend keeping an eye out for scams.
“It is best to always check the Better Business Bureau website … before agreeing to work for any company. It will give you a sense of public perception of the company before you make your decision.
Look out for claims about earning money for little or no work, requirements to purchase large inventories to start-up and requests for payments via cash, wire transfer, or money order,
If product sales are not the main source of making money for the MLM company and solely rely on recruiting people to the company, you may be dealing with a pyramid scheme.
There is a need to look at where the compensation is coming from carefully, But sometimes it can be not good financially for the people who sign up to sell for some legally operated companies.
The truth is It’s a scam. It’s a pyramid scam, it’s a recruiting scam, and you’ll lose your money,
I know I am speaking for many of you, including myself; we have walked this path before, we have in our position products we have bought just to stay active in the company because you never know when that elusive sale will come.
The account has to be kept active, so something is bought by us every month to keep the account up to date.
There is a much better way to make a passive income; it does not promise to make you rich overnight, but it does promise that you will be able to make a decent income with dedication, work, and discipline. I am talking about affiliate marketing.
Affiliate marketing recommends a product or service to people you know or come in contact with either through a blog or other means and earning a commission when they purchase it (or complete some other action associated with it).
What is a blog?
A blog is a discussion or informational website published on the internet, and these discussions can be about anything.
How to start a blog?
I want to recommend it to your Wealthy Affiliate. This company started 13 years ago, and during these thirteen years, this company has grown in trust and accountability. Wealthy Affiliate is 5 stars rated and also has an A+ rating with BBB.
Wealthy Affiliate now has a membership of over 1,500.000 people from every walks of life, and you can find a member of every nationality that is represented on the globe.
At Wealthy Affiliate, you will not only be taught how to start a blog but how to maintain that blog;
You will be given insights on how to get ranked and indexed on Google and other search engines; you will be given the necessary tools and information to assist you in reaching your goals (No EXPERIENCE NECESSARY) If you can interact on Facebook or other social media you can blog.
The lessons are given through video; you can go at your own pace; here is a sample of our videos.
You can become a member of Wealthy Affiliate for FREE. (NO COST) and you will be given
- Live Help – First 7 Days
- 1 Website
- Website Backup
- Beginner Training Course
- Personal Affiliate Blog
- Affiliate Bootcamp Training – Phase 1 Only
- Video Walk-Throughs
- Keyword Research Tool – 30 Searches
- Training Classrooms – 2
- Affiliate Program
- 1-on-1 Coaching – First 7 Day
How long can you remain on the free membership? Well, there is no date limit, but I personally would recommend that you upgrade to premium if you really want to run a profitable business, especially if you have no experience running an online business.
I joined for free, started my website look around the platform, liked what I saw, then upgraded to premium, and I am so happy that I did.
Before joining Wealthy Affiliate, I was a novice. I had a couple of social media sites, and I had tried selling stuff online and failed miserably,e but no experience in anything like this. I never thought I would have a successful website, but with training and help from members at Wealthy Affiliate, I now have not one but two.
Here is a screenshot of the lessons offered with the free membership.
The Wealthy Affiliate family is a community that is helpful and eager to assist the pay it forward attitude is encouraged and maintained; here are a couple of comments from members.
Special thanks to all of you here at Wealthy Affiliate; I appreciate you all! I love that I can find so many motivated people who are all on a similar journey helping each other succeed! .(One Year With Wealthy Affiliate!)ColleenF1
I know the next courses will bring my site to its next level, and if I need any help, I can always count on everybody in this superb community! Like many other guys my age, I used to play video games as a hobby. Those communities are just nothing compared to what WA has to offer. So again, I’m pleased I could replace my old hobby with this wonderful platform that is WA.
I love you, WA(Vince)
Being a Premium member, you will receive
Live Help – Unlimited
- Private Messaging – Unlimited
- 10 Websites
- Website Security Package
- Website Backup
- Beginner Training Course – Full Access 5 phases 50 lessons
- Personal Affiliate Blog
- Affiliate Bootcamp Training – All Phases (7) 70 lessons
- Live Video Classes
- Video Walk-Throughs
- Keyword Research Tool – Unlimited Searches
- Training Classrooms – 2
- Affiliate Program – 2x Higher Payout
- Earn While You Learn
- 1-on-1 Coaching – Unlimited
- Private Access to Webinars
- 24/7/365 Website Support
- Website Feedback Platform
- Website Comment Platform
- Website Analysis
And web hosting is also free; there is so much that is being offered as a premium member. I think it would be worth your effort to become a premium member. And remember, you do not have to upgrade right away you can join for free, and there is no expiration date, no how long you can remain free.
Many voices are calling, telling anyone who will listen how to make money quick easy. Still, unfortunately, there is no quick and easy way; it takes work, effort, dedication, and discipline to succeed at any business, and having an online business is no different.
Joining us at Wealthy Affiliate, you will be given the tools and information; there is a community of fellow members who are willing and able to assist you and encourage you.
There is a host of training videos made by fellow members that will aid you in making it easier to maintain your website. You will have the training videos to go over and over as many times as you would like, and best of all, you go at your own pace.
You join for FREE, and should you decide that this is not for you, you can quit; there is no loss to you.
The only information that is required is your name and an email address, nothing else. Your credit card will not be credited, or unwanted phone calls will harass you. So you can dip your toes in the water and give it a try.
I really appreciate you stopping by; please drop in again anytime. And should you have a question or a comment, please leave it below in the space provided, and I will reply
NOTE: This post includes affiliate links, which, if clicked on and a product purchased, I get a small commission (with no increase in cost to you).