Is Affiliate Marketing The Same As Multi-level Marketing?

Well, here is something I heard recently and this is a cause for discussion in this post. As you know affiliate marketing is a form of revenue sharing model between the merchant and the affiliate whom promotes the products or services that merchant is offering. Any sales made translate to commissions for the affiliate. This form of agreement between the merchant and the affiliate is one of the best business models for both parties involve as there are simply no risks for both parties.

Some affiliate programs do have multi tier compensation plans of up to 2 or 3 tiers when you recommend other people as affiliates to these affiliate programs; however please do not confuse them to multi-level marketing although the similarities are quite uncanny similar. As most legitimate affiliate programs only reach up to the 2^nd or 3^rd tier, this is in a way similar to what direct selling companies are offering their salespeople. Likewise, insurance agents and property agents work under this compensation system too, whereby the managers or those who manage the teams of agents under them will get overriding commissions on the sales of these agents.

As for multi-level marketing, if you are familiar with MLM as it is known, it involves more than 3 tiers sometimes even unlimited. MLM is mostly based on referring people into the programs and have very little focus of the products or services they are offering. Legitimate MLMs or those companies which are more ethical in nature although I not sure whether they are any in existence and they focus more on products and services instead of recruitment.

As you can see, there is a big world of difference between affiliate marketing and MLM although people still mistakenly refer affiliate marketing to MLM and especially so from those who are new to online money making opportunities. That is why if you are new to making money online or just happen to come across affiliate marketing, please do not jump to conclusion so soon. Instead take time to understand what affiliate marketing and internet marketing is all about and you will never regret it. Even if you do not want to get involve, please refrain from disparaging Internet Marketing and those who are involved in it. Instead once you understand what Internet Marketing is all about, you will look at it in a different light. Internet Marketing is all about marketing online and in fact, just like in conventional businesses, all the basic business fundamentals, knowledge and mindset is required to succeed online.