Is MLM An Affiliate Program?
Yes, MLM or multi level marketing is technically an affiliate program. Those who become “distributors” for an MLM or network marketing company, are technically affiliate marketing partners. They earn a percentage of the sale, called a commission, from every customer they refer to the company or business in question.
Affiliate Marketing vs MLM: What’s the Difference?
The biggest difference between a MLM business model and an affiliate program, is the “pyramid like structure” of an MLM.
MLM provides the opportunity to earn from a whole organization potentially in the tens of thousands of people or much more.
There are network marketers who have over a million people in their downline..
However, while MLM is technically affiliate marketing, it’s important to make the distinction between what makes the 2 business models quite different from one another.
In this walk-through and article we want to highlight some of both similarities and differences alike.
Is MLM Commission Based?
Yes, every MLM is commission based in 1 way or another. While multi-level marketing companies pay multiple levels deep, and also often have more than 1 way you can earn commissions, they are commission based.
This is one of the similarities MLM’s and network marketing companies have with affiliate marketing.
The commissions paid from MLM’s .vs. affiliate marketing can be around the same amount per sale. However, the total earning potential is much greater in MLM’s or network marketing since you’re able to earn commissions on multiple levels deep and in multiple ways.
While you may earn 50% from an affiliate program, you can earn multiple levels deep in MLM from your own referrals customers and distributors they bring in as well.
This is where there is a huge advantage for the MLM industry.
However, this advantage is only in place when your team is able to duplicate and grow over time. This allows for you to potentially earn much more in MLM compensation.
What’s Better Than MLM?
Not much…As with other niches or industries with affiliate marketing there can be a drastic learning curve, and the competition in affiliate marketing is huge, because sometimes if you choose the wrong products to promote as an affiliate marketer, you are competing with big companies and seasoned veterans in affiliate marketing who are already earning millions, and have tons of money to throw at online advertising to promote with.
While you can earn lucrative commissions as an affiliate marketer, the learning curve is steep and the skills it requires is much greater than with MLM.
Many MLM affiliates do not even market online, there is no real technical skills necessary. However, with most affiliate marketing it is all done online, and learning technical skills are an absolute must, and so is the need for buying expensive marketing tools and paid traffic.
Affiliate Marketing vs MLM: Which is Best?
Well, I think we already answered this question…In our experience and opinion, as we have done both for many years. Our Network marketing income has always far out weighed our affiliate marketing income. And we are experts at both..
Affiliate marketing has no leverage, you are in competition with everyone, you are not part of a team like in network marketing, where your income can grow through the TEAMS effort.
In affiliate marketing your it…End of story.
You stop selling, you stop making money.
Other Options
You may also consider if affiliate marketing or network marketing does not resonate with you..
- Freelancing – Freelancing requires a decent level of skill to be able to be successful with. However, it is also a fairly profitable side hustle that anyone can start. We recommend it for those who may have or want to learn a digital marketing skill of some kind.
- Start Your Own Business – Meaning, either have or create your own products or services and sell them. Having your own products and services means you collect 100% of the sale, however you are also responsible 100% for the business itself, and all of the headaches that go with it.
- Influencer – While being an influencer takes time, companies are stilling willing to pay top dollar to influencers who can drive views and brand awareness. Even micro-influencers have begun to see much success in the industry. Also as an influencer, you can expand your reach by being an affiliate as well, or launching your own products.
Final Thoughts On MLM Being An Affiliate Program
While MLM’s and affiliate programs both rely upon some of the same strategies to recruit new customers, and they both pay commissions in a similar way, they are different in a few ways. Every MLM has an affiliate program and that’s how they track sales from every affiliate or distributor.
Let us know how helpful this walk-through was, and if you want to learn more about either MLM’s or affiliate programs. Remember that not all MLM affiliate programs are good, so be careful when choosing which one you are going to become a part of.
With our kindest regards,
Jon Weberg
Richard Weberg
