Many aspiring entrepreneurs fall for the trap of multi-level marketing schemes. They’re promised easy money, fancy cars, and exotic vacations for selling products.
But the reality is 96% of MLM participants lose money.
Meanwhile, affiliate marketing allows you to earn commissions online without pressuring friends and family to buy overpriced products.
This post will explain the key differences between the two business models, and why affiliate marketing is the best option.
Affiliate Marketing:
- You promote products and get paid commissions on sales. No need to carry inventory or do direct selling.
- There are no minimum sales quotas. You earn money when people buy through your affiliate links.
- You can promote products from large, reputable companies like Amazon. No shady, overpriced products.
- Easy to get started. No need to recruit a “downline” or attend conferences and seminars.
- Legally compliant way to earn money online. The FTC regulates affiliate programs.
Multi Level Marketing (MLM):
- Requires aggressively recruiting people under you for your “downline.” Most focus goes to recruitment over actual sales.
- Often rely on exaggeration and exploitation of personal relationships for sales.
- Pressured to purchase large amounts of inventory that you struggle to sell.
- Success heavily depends on your downline’s performance. Their failure hurts your commissions.
- Often sell low quality, overpriced products because of multiple tiers of distribution markups.
- Most MLMs are pyramid schemes and end up facing lawsuits.
The Bottom Line:
Affiliate marketing provides an honest way to earn commissions online without hassling your loved ones. MLM prioritizes recruitment over product sales, leading to disappointment for most participants.
If you want to achieve financial freedom without falling for MLM scams, join my free 7 day affiliate marketing crash course.
You’ll learn proven strategies to earn commissions in ethical ways.
Just click here to get started today.