While the affiliate industry has grown, some people have been questioning its integrity. Is affiliate marketing legit? How difficult is it to do? Is affiliate marketing a pyramid scheme? The questions people want answered before they make an opinion on the topic, or before they decide to become an affiliate marketer themselves.
Let’s answer your question and give you more details about how affiliate marketing and pyramid schemes are related.
Is Affiliate Marketing A Pyramid Scheme?
No, affiliate marketing is not a pyramid scheme. It is simply another form of referral marketing that utilizes affiliate partners to promote a businesses products and services for them.
Affiliate marketing is a completely legal business practice that has been done for thousands of years. Affiliate marketing (also known as referral marketing), is the practice of referring customers to a business in exchange for a commission. This commission is tracked through an affiliate link, that when a sale is generated, it attributes a certain percentage of the total sale to the affiliate.
You’ll find that affiliate marketing is halal, and even permissible is Islam – and every other religion & country across the world. Becoming an affiliate marketing is a perfectly good side hustle or career.
Why Is Affiliate Marketing Not A Pyramid Scheme?
Affiliate marketing is not a pyramid scheme, because you’re not referring customers with the intention for them to only refer more customers. In affiliate marketing, you’re simply referring customers to use real products and services. You have no intentions for them to also resell those products in services themselves.
The structure and purpose of affiliate marketing is nothing like that of a pyramid scheme. The only similarity between affiliate marketing and a pyramid scheme, is that they both use referral marketing for bringing in new customers.
What Is The Difference Between Affiliate Marketing And A Pyramid Scheme?
The different between affiliate marketing and a pyramid scheme, is the reason and way you refer customers. In a pyramid scheme, you refer people to join the business, for the purpose of them also referring people to join the business. In affiliate marketing, you’re selling products and services to interested consumers who want to use them.
The main different between the two, is that in affiliate marketing you are referring customers to a product for them to use the product – where in a pyramid scheme you’re referring people so they can refer more people and continue the cycle.
As well, usually pyramid schemes become saturated very quickly. This is not the case for affiliate marketing. There is little to no saturation in affiliate marketing or will there ever be because of how the expanding marketplace functions.
Affiliate marketing and the industry that has been created because of it is completely legit and acceptable in every way imaginable. Affiliate marketing in its simplest forms is simply referring a business customers.
You’ll find that companies of all sizes including Amazon and Walmart even have affiliate programs in todays marketplace.
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