I get quite a few requests on YouTube to review various MLM (multi level marketing) programs so I want to clarify something.
I am an affiliate which is a little different. MLM has never been my cup of tea so I don’t spend much time looking into these programs.
That is not to say you cannot make a lot of money from MLM, it’s just not my preference for monetization.
Now, I have to choose my words carefully in this post because…
1) I’m not an expert on MLM (nor do I want to be)
2) I realize there are a lot of varieties of MLM and you can’t paint all the programs with the same brush
3) Many people make a good, honest living with MLM
The Difference Between MLM and Affiliate Marketing
So you may be wondering, what is the difference between affiliate programs and MLM? Well, in short, affiliate marketing is usually a one to one relationship (except the 2 tier programs) where MLM is usually a one to many relationship.
For example, as an affiliate, I refer a product from my site and the merchant (company) pays me a commission for the sale. That’s the one to one relationship.
With MLM, it can involve several levels and you can make money from the sales of the people you recruit to the program and the people they refer too. This can go on for several levels deep.
People at the top of the chain who have several high-performing team members (downline) can make great deal of money over time.
MLM has gotten a bad rap over the years because of all the get-rich-quick and pyramid schemes (that should not be called MLM). You definitely need to do your research before joining such programs.
Watch the video below where I share my thoughts on MLM and affiliate marketing.
{ 29 comments… read them below or add one }
Highly educational, comparing affiliate marketing vs. MLM, thanks.
Thank you for the comparison. The one thing that you left out which is to me the most important.
In MLM you dont get what you want unless you help others get what they want. See, its not about you and how much money you want to make in life. Its about others. Its about making a difference in the world around you. Its about reaching out to others.
So many people have network marketing all wrong. Listen, If Robert Kiyosaki endorses it in about umteen Zillion of his books, dont you think the guy traveling the country with Donald Trump knows a little something about something?
Until Next Time,
Joshua Boxer
“The King of Recruiting”
http://www.mlmoutlawz.com
Follow on Twitter: @Marcus_Noel
Thanks for a Good Post, Lisa!
I’m involved in an MLM program, but it’s not for the web. I’m a consultant for The Body Shop at Home. Basically, I do parties at people’s homes and earn a commission on the sales generated. If I recruit others, I get 5% of their sales.
I ran into a lot of pyramid schemes when I first started looking at the Internet. It’s pretty easy to spot these scams and see the difference between true MLM and Pyramid Schemes.
No matter how you look at it, whether you do affiliate marketing or MLM, it takes a lot of hard work. There’s no such thing as easy money.
Good point Joshua, thanks for the addition! (See I told you I wasn’t the expert on MLM) LOL
Jennifer, good point. I wanted to mention some of the offline examples of MLM but I ran out of time so I’m glad you mentioned this.
hi lisa ! !
lol about the smiling guy with 360.000 $ ! i have seen too much of it !
ummm i wanted to ask you something, i want to have a site and make money online but the problem is that i dont have a specific niche that i can write a lot of pages about. i can write like 2 pages for one topic and 1-2 for another and so on. i know that you have said that there cant be something like yahoo with a lot of different content.
you think i could do it ? google would allow me put adsense on it, if it goes on different topics ?
thank you lisa ! you looked so great again ! !
Thanks Nick!
I would highly suggest you stray away from multiple topic sites like Yahoo. The reason is, it’s going to be very hard to drive targeted search engine traffic because your site is going to be on multiple topics. That works for Yahoo because they already have the brand awareness and traffic, but for a newbie it will hard to drive traffic to a multi-topic site because you have no traffic base.
I’d rather you hold off until you come up with something more focused that you can write about. Plus your google ads will be much more targeted.
Lisa likes hoop earrings! =3
Great video.
Lisa,
Thanks for all the great tips.
^Angelina
Follow on Twitter: @ErenMckay
Ggreat video- great explanation as always Lisa-I’m subscribing to your blog via rss right now ;o)
Blessings,
Eren Mckay
oh lisa
i hope it is alright that i want to ask you this ! i mean i dont want to load you with questions or so
i dont have a website as i have mentioned but i have 1-2 blogs on wordpress.
i have them as myblog.wordpress.com
is there some way to have google ads on them ?
thank you so much lisa
i will ask you something about myspace sometime but not now i dont want to take much of your time !
Hi Nick,
You can only put Google ads on self hosted wordpress blogs. Blogs hosted on wordpress’ server do not support javascript, therefore you cannot host Google ads.
Hi Lisa, you have compared the subject on Affiliate Marketing and MLM well.
As I am new to Affiliate Marketing ( having read TONS of Sales Pages or Programs since early October ) I am sure I do know how to approach the business wisely in the near future.
We all knows that in all forms of Business, there are “rotten apples” that spoils the reputation of the industries they are involved.
What I am trying to say is that EVERYBODY who has a desire to make money in whatever form must learn to differentiate those good or bad pointers for the business they decide to embark on. At the end of the day, I cannot find fault with anyone if any mistake is made.
I must also strive to learn more about my niche even though I think I am doing well so that I am well-informed of the changes that has taken place.
E.g. Having been involved in 3 different MLM over the years, I still make an effort to learn more by getting this FREE ebook called
http://prawfeed.the7greatliesofnetworkmarketing.com/
which ultimately make me to invest on its main program.
Have a nice day !
William
i have wanted to know about how to make money on the internet youres is that first to make it esay to understand and know what I didnot know .
Iam a big fan of mlm your comments are fair,however the problem with mim is that most people just donot want to work hard and donot understand that to be successful in life you have to give something of value to others ,this is something that you do Ms lisa ,the mastermindblog is great thanks keep up the good work!!!!
I personally like both!
Hi Lisa,
Im not much a fan of MLM prefering affiliate marketing too, but everyone is different and that is a good thing really.
Great Post. Not to my surprise but quite a few MLMer’s are being exposed to affiliate marketing and either making the switch or incorporating it into their business.
I just sent this post to a bunch of my friends as I agree with
most of what you’re saying here and the way you’ve presented it
is awesome.
I also blog from time to time on this stuff. In fact, here’s an
expert from my most recent blog post…
Many individuals are under the impression that you
can earn a lot of money with affiliate marketing
and not have to invest a penny. Even though
the majority of these programs are free to join,
you’ll have to invest money at some point in
time during your affiliate marketing career.
The complete post can be viewed easily on the following page…
Keep up the good work,
Thanks for sending this post out Jay. Great points!
Follow on Twitter: @Tanhak
First of all MLM is Pyramid scam and I suspect affiliate is the same. You suckers.
Sorry, Peter. I really hope you decide to do more research. You’ll find that affiliate marketing is 100% legal. There’s a whole industry out here for this and I am so grateful I found it.
Follow on Twitter: @Tanhak
Hi Lisa,
Its a pity that there are people like Peter who does not even do his due diligence about what MLM or Network Marketing is. Instead he call it a Scam, which simply shows how naive he can be.
I would pity Peter, if he is working for a conventional JOB, because he is already in a “Pyramid” without realizing it at all. As long as he cannot makes more than his BOSS then he is in one !
Hi Lisa,
Excellent video on affiliate marketing VS network marketing. You are always investing in your business. If you are not spending money directly you are spending your time. Income can always be re earned but not your time.
-Steve
Steve’s last blog post..Twitter 2000 Followers Restriction
Hey! Well I had that cooking website idea,how do I find food affiliates? Walmart,target,and office depot have a program but I want actual food products,like some of the local products in New Orleans. You think if I ask nicely they’ll work out a deal with me? lol just trying to plan things out.
Hi Lisa
Ive been talking about Lisa so much My wife wanted to meet you, SO I set up a meeting on line, shes calm now and shes a fan too, keep up the good work Taiwo
LOL!! Thank you.
Follow on Twitter: @wkathome
Great comments, mlm is sometimes hard to get started but once you get the snowball rolling down hill, then the price you paid to get there is well worth it.
Dan´s last blog … Pay-Per Click” Ad Campaign: Earn More By Spending Less
Follow on Twitter: @Yadiy
Hi Lisa,
I’ve been following your for some times now, thank you so much for sharing your wonderful and priceless knowledge online. I’m here just to share my thoughts about MLM companies.
I’ve been in some top MLM companies. Promoting from Super Rare product to Daily usage products. I do agree that to be successful in MLM you need to build relationship with others.
It’s simple: No Buyers = No money
But I stumble upon with one Company that offers little investment but huge ROI. Few days ago i signed-up 7days free trial with that company, so far from my point of view, its the best MLM that i can find online.
http://onlinemillonaires.ws
Hey Lisa,
Great Content! There are always pros and cons to both. It will always depend on the person and exactly what they are looking for.
Alot of people think that there is a lot of sales involved. But the truth of the matter is that it is not much different than affiliate marketing. Your basically promoting a product and if people are interested and they like the company they join. The only difference is you don’t have to personally talk to the customer when your an affiliate. But that’s my opinion.
But Great Stuff Lisa!
-Jonathan A.