Affiliate Marketing & MLM   by Liam Kalish

Two of the most popular ways to make money online currently are affiliate marketing and MLM. While these industries are not for everybody they’re certainly simple enough for anybody. What that means is, just like any other business, affiliate marketing and MLM can’t appeal to 100% of the world’s population but when compared to other professions or industries affiliate marketing and MLM require minimal experience and proficiency. There are very attractive aspects for these two industries and at the same time there may also be some personal turn offs regarding them as well. This article will help you differentiate the two, isolate which would be most appropriate for you and identify common characteristics that are typical of each.

Affiliate marketing is a business practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s marketing efforts. Attractive aspects of affiliate marketing include a flexible schedule, high percentage commissions, no major commitment after the sale and sometimes even residual income. There’s no major commitment after the sale simply because you’re not the provider of the product. All you are doing is matching the customer up with the company and once you have successfully done this your job is finished. The residual income comes into play sometimes when your efforts have lead to the sale of a renewing item such as a subscription or membership.

Some Affiliate Marketing Companies do charge upfront fees or membership dues but there are also some that are entirely free. Clickbank.com is an example of an Online Affiliate Marketing directory which provides only digital and non-tangible products. You can join the community for free, you can become either an affiliate or a provider and their commission scale goes up to 75 percent! Percentages that high are typical for non-tangible objects such as ebooks or downloads simply because there are no costs that go into the reproduction of the product and the product provider knows that they would have never made the sale without the affiliate. They’re happy to sit back and collect their 25% knowing their only responsibilities will be to keep the customer satisfied thereafter.

A unique version of affiliate marketing would be MLM, or multi-level marketing. MLM is a form of affiliate marketing because in MLM you are still an affiliate connecting the products to the customers. The major difference is that MLM can turn out to be more lucrative then plain old affiliate marketing because you’re being paid on your direct referrals as well as your indirect referrals. Let’s say you refer “person A” into your MLM affiliate program. You will receive a commission, typically residual, for your efforts but the earning doesn’t stop there. Since you have referred “person A” you now assume the role of his/her coach or sponsor. It will then be your position to provide the training and resources needed for “person A” to learn to refer someone on their own, “person B.”

Because this is a multi-level marketing opportunity you will earn for your direct referrals as well as your indirect referrals. Your indirect referrals are simply the accomplishments that your direct referrals achieve as a result of your sponsorship. It’s structured like this because more often than not “person A” would not have known how to get “person B” into the business and as a result of the training you provided “person A” can now begin to earn more income for them self. It’s a beginning internet marketer’s dream because of the hands on coaching involved. Also, “person A” can now begin to show “person B” how to do the same and the cycle continues through generations, or levels of affiliates, hence the term multi-level marketing. MLM programs vary by how many levels deep they will pay or what percentage of commission they pay on each level but it’s important to remember that as someone’s sponsor it’s in your best interest to provide the most training you can at no cost at all. No one likes paying for information once they’ve taken a leap of faith into an MLM program.

Over the years, MLM has become more and more mainstream and to date it is one of the most efficient business models on the planet. A common misconception regarding MLM is the legality of the industry. It’s important to know that MLM is 100% legal as long as the transfer of money or payout of commissions is directly related to the sale of a product. Some MLM companies do charge upfront fees however there are plenty of companies that let you get started absolutely free which makes MLM extremely attractive, especially when considering the unlimited income potential. Global Domains International (GDI) is an example of an MLM opportunity that you can start absolutely free. It does require a MAXIMUM of $10 per month to maintain your account or home-based business with them but however all affiliates are able to get started risk free with no upfront costs. Currently GDI is paying out up to 50 percent commissions across five levels of affiliates on top of 200 percent in bonuses (yes two hundred percent). You can clearly see now how the potential of MLM far surpasses that of regular affiliate marketing.

Hopefully this information was helpful in enabling you to differentiate between affiliate marketing and MLM. Knowing these simple basics will allow you to make a sound decision for your future when considering a viable work from home opportunity. Regardless of which method you prefer you should always take your work seriously. No one signs up for these things and becomes rich over night so be prepared to contribute a solid effort and things should go smoothly for you in time. The one thing you must do with either is stay focused. Picking a new skill is always a process but by staying focused you will accomplish your goals most efficiently.

As an experienced network marketer I realize the value of useful information. I hope to enlighten all with my work as it is my own and I look forward to meeting and working with as many as possible in the industry.

About the Author

Learn more and get started with Global Domains International today! The company is proving to be one of the elite in MLM and Affiliate Marketing.
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