The difference between MLM and affiliate marketing.
This video is obviously for the newbie's out there. I will give you a quick Affiliate Marketing vs Multi level Marketing primer
before you view the video.
What is affiliate Marketing? What is Multi Level Marketing?
Affiliate Marketing involves marketing the product of another company> as an affiliate of that company you share in the proceeds of the sale. They may provide you with marketing material and they may provide you with sales materials (such as videos to use on your Website, etc). but at the end of the day wether you are an affiliate market rep for one company, one product or if you use an automated tool like Datafeedr to generate an entire Affiliate store for you on your Website, you still only make money when you initiate the sale of the companies product.
With MLM not only do you sell the product but you sign up other members. In this aspect you are almost like their manager (although there is often no management involved) and you get a small percent of their sales AND the sales of everyone that they sign below them! So not only are you motivated to sell the product but you are motivated to get more salesman to sell the product because you get a cut of their sales.
Because of this MLM structure some companies have allowed themselves to focus more on the sales then on the quality of the product or the price and MLM has gotten a bad rep because many companies sell crap. The whole game is just to get other people to sign up to sell below you and often signing up requires you to by x amount of stuff yourself. sometimes on a regular basis. So everyone is buying the stuff so everyone is making some money but often the product is questionable and the price is high.
Both affiliate Marketing and MLM involve sales and work. In affiliate marketing the challenge is to pick products that are related to the information on your blog and Website so that the people coming to your Website to read your content will be interested in the affiliate products that you are marketing. if they are not then they will just ignore the ads or even the articles about the products and you will wonder why you are not getting many clicks or sales. IN MLM the challenge is to find people who will actually work to both sell the products and to sign more salespeople.
Yes some people get rich in both. But in reality, with MLM if you have to buy product you don't need then you are in the hole right off the bat and it is harder to make money. If you are in affiliate marketing or have an affiliate market store and you have costs to running the site like pay per click advertising or other costs in generating traffic to your site like paying to have articles written, etc, then you are in the hole as well and have to make more sales just to break even.
But neither are as costly as having a bricks and mortar store or your own web store where you have to buy the product and hope the inventory sells at a profit that is high enough to cover all your costs and shipping and returns etc.
Its not easy for any of these but they are all good side businesses if you are willing to put the work in.
We recommend automating your Website or blog with a tool like DataFeedr. it automatically populates your Website with an affiliate store and generates traffic driving keyword specific content at the same time. check it out on our Website at affiliatestoreguide.com. We offer a great deal on this leading edge affiliate Marketing software and throw in a lot of free valuable bonuses as well!
Authors bio is coming up shortly.