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SpinDistribute.com Article Directory
« Back to articles from category "Advice"The following article was published in our article directory on October 21, 2013.
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MLM vs. Affiliate Marketing
Article Category: Advice
Author Name: Megan Ceniceros
MLM vs. Affiliate Marketing
One of the biggest confusions in the Internet Marketing industry is deciphering the difference between Affiliate Marketing and MLM, and figuring out which company they should join. The first thing to do is get the knowledge of what the difference is and then research companies in each category.
So let�s break it down�
What is MLM marketing?
MLM stands for multi-level marketing in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit.
MLM companies have been around a long time and it was one of the most common businesses that are found offline as well as online. Ever heard of Herbal Life, It Works, Mary Kay, (just to name a few)? Well, if you didn�t know before these companies are a form of MLM companies that do exactly as the definition says.
Lets take a Mary Kay representative for example, and lets name her Amy. Amy is a rep for Mary Kay and gets paid a percentage of the makeup she sells + if she gets others to become reps as well. Amy will then also be given a percentage of commission that her reps make in sales.
People involved in MLM companies are associated with a certain product that they like or truly believe in, which they then buy from their supplier and resell to the public at a profit. As you can see, MLM is simply having a small franchise of a large business. What people do not realize though is that further the downline, the less and less you will profit from them.
What is affiliate marketing?
The exact definition of Affiliate Marketing is a type of a performance-based marketing in which businesses rewards one or more affiliates for each visitor or customer brought by the affiliate�s own marketing efforts.
The biggest difference is that you are not selling any products directly. You are simply the mouthpiece, or the advertising that tells others where to go and buy the products. Although people argue that they do have to sell, that just depends on the marketer. If you are a good marketer, and I like to say I am, then you do not sell, you are only answering questions about the products. With affiliate marketing there are no house parties, carrying inventory or have to ship and mail product. Affiliates get a commission when the person they refer to a website or service purchases a product.
Some example of affiliate marketing companies are: Instant Rewards, ZNZ, MCA, and Empower Network.
With all of these companies you are able to earn a full-time income with minimal work, if you have the correct marketing strategies, of course. Each of these companies pay you commissions from $20-$4625 in 1 referral/sale, and in some cases on a Residual Monthly Basis. So you will keep getting re-occurring payments from your initial sale of the product after you referred to others.
Now do you understand?
To break down the difference as brief as possible: MLM is a style of marketing that is more of a direct sales approach of a certain product, and Affiliate Marketing is being the word of mouth for the company telling people where to get the product or service
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