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getagrip
Joined: 20 Feb 2006
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# Posted: 25 Aug 2009 15:23 · Edited by: getagrip
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For years, multilevel marketing was an easy way to get your own "business" started. All you had to do was pay a sign up fee to join the multilevel marketing company, start going to hotel meetings to learn more about the multilevel marketing company, start talking to your friends, family, or perfect strangers into joining, and "poof", you would be rich!
Unfortunately, many people who joined multilevel marketing found out it was not as easy as it seemed. They quickly discovered that not only were people not interested in joining their multilevel marketing company, but they were driving their friends and family away by always trying to get them to join their multilevel marketing company.
Since they couldn't get any of their friends and family to join their multilevel marketing company, some of them went door to door to try to sell products for the multilevel marketing company. What they found was that many people never heard of the products they were selling, or, if they were interested in the products they were selling, they slammed the door in their faces when they discovered that the products were twice as expensive as those that were available at the local grocery store.
In the end, many of the people who joined the multilevel marketing company made no money trying to sell products, lost money on sign up fees for joining the multilevel marketing company, lost a few friends, and were left with a bunch of useless products that no one
wanted...so much for the business "opportunity".
If you have ever been part of a multilevel marketing company, you can probably relate to some of the things I've written about. If you join a multilevel marketing company, you usually go though a process that looks something like this:
1. Pay money to join the multilevel marketing company.
2. Recruit people to pay money to join the multilevel marketing company.
3. Buy the products of the multilevel marketing company for personal use.
4. Try and sell the products of the multilevel marketing company.
In short, you pay money to become a salesperson for BOTH the multilevel marketing company and their products, AND to buy the products for your own personal use. The multilevel marketing company is able to make money off of you in five ways:
1. The multilevel marketing company makes money off of your sign up fees.
2. The multilevel marketing company makes money when you recruit new members to join because they also pay a sign up fee.
3. The multilevel marketing company makes money off of you when you buy their products for personal use.
4. The multilevel marketing company makes money off you when other people you recruit also buy products for personal use.
5. The multilevel marketing company makes money off you when you and the people you recruit sell their products.
Ironically, the multilevel marketing company doesn't really need you to sell any of their products, because if they can get you to buy their products for personal use, and recruit new members to pay sign up fees to become loyal users of their products, to recruit even more people to pay sign up fees and purchase their products, they are going to make a pretty hefty profit.
It is not uncommon for some multilevel marketing companies to charge $150 for new member sign up fees. In one case, my friend tried to recruit me to join her multilevel marketing company that had a $500 sign up fee. The product that she was selling was a
multivitamin that cost about $4 a day!
Are all multilevel marketing companies bad? No. There are some good multilevel marketing companies out there, that sell great products, and these companies have very low sign up fees. Avon is a great example - last I checked, their sign up fee was about $10, and they have a high quality product with a high demand. So, if you are going to join a multilevel marketing company, I would suggest finding one with a very low sign up fee, that offers a high quality product with a good reputation.
Now, I'm going to contrast multilevel marketing with affiliate marketing. Some people think that they are the same, but there are some huge differences.
1. You do not have to pay money to make money as an affiliate. There are hundreds of thousands of affiliate products you can promote, and you will NEVER have to pay a dime to promote them. Ever heard of eBay? Amazon? Target? These are just a few examples - all of these companies pay affiliates for sales they generate. The affiliates NEVER have to pay these companies any money to promote their products.
It is true that in some cases, there are affiliate products that have membership fee and require you to become a member before they will allow you to promote their products, but these cases are very rare, and there are always alternative affiliate products you can
find instead if you don't want to join them.
Additionally, if you do join these membership sites, they offer something of value to you, such as teaching you how to become a more effective internet marketer, but again, joining these kinds of membership sites is totally optional, and many affiliate marketers are able to earn money by promoting other kinds of affiliate products without ever joining them.
2. The emphasis on affiliate programs is not on recruiting new members to join the affiliate program. For example, you can find a company that sells vitamins and pays their affiliates a 20% commission on all vitamin sales you generate. You don't have to pay a fee to promote their products, and you don't have to find other affiliates to pay a fee to also promote the vitamin company's affiliate program.
Technically most multilevel marketing companies absolutely don't require you to recruit new members, but your commissions are often limited to lower dollar amounts, unless you can bring in more people to the company. However, even if they don't require you to recruit new members, you are often encouraged to do so, and many of the meetings you attend for the multilevel marketing companies are all about recruiting new members to the
company.
3. You do not have to purchase affiliate products to earn money from them. For instance, I own a website that promotes mountain bikes via the eBay affiliate program. I don't have to buy a bunch of mountain bikes, and I didn't have to pay a fee to eBay to "earn" the "right" to promote mountain bikes from my website. Rather, my job as an affiliate marketer in this case is to research mountain bikes, create content, and to send targeted traffic to eBay so that the traffic will convert into mountain bike sales, so that I can earn commissions.
4. Affiliate marketing offers more flexibility than multilevel marketing. With most multilevel marketing companies, you are usually limited to selling a small number of products from only one niche. For example, it might be skin care or vitamins, but what if you want to promote mountain bikes? Or car loans? Or home owners insurance? Or fishing boats? Or chicken coups? Or laptop computers? Or weight loss books? As you can see, affiliate marketing gives you endless possibilities - yes, there really are affiliates earning money with chicken coup related affiliate programs!
It is true that some multilevel marketing programs give you more options than just "skin care" or "vitamins", through things like online malls, or different product venues. However, what if there are other websites offering similar products at lower prices? For example, can your online mall compete with Walmart.com? If not, then there is a Walmart.com affiliate out there somewhere who is earning money that you, as a multilevel marketer, are not, for the same product that you are offering.
The other thing you need to realize is that there are affiliate programs that will pay you a much higher commission than your multilevel marketing company will. In one case, I was involved with a multilevel marketing company that offered web hosting - and my commission for any sales I generated was $6. Well, I regret to inform you that I didn't make any web hosting sales for that multilevel marketing company. However, as an affiliate for web hosting, I've been able to earn commissions of $100 dollars for every web hosting sale I've generated, and I didn't have to pay any money to the web hosting company to become their affiliate!
These are just some of the things that separate affiliate marketing from multilevel marketing companies. Again, I do think there are some good multilevel marketing companies out there, but I think they are few and far between, and in the beginning of this article, I've stated the reasons I stay away from most of them.
Is affiliate marketing easy? No. Is it for everyone? No. However, it offers a ton of flexibility, the earning potential is incredible, and you do not absolutely need to invest a dime to get started, which is not the case for 99% of multilevel marketing companies. Of course, it does help some affiliates to invest in a training course, which is what I did to help me along the way, but again, that is totally up to you, and 100% optional...
If you are part of a multilevel marketing company that offers very low sign up fees, a quality product, a great commissions without you having to recruit others, and you are doing well with it, awesome - I'm very happy for you. If, however, you are tired of recruiting new members, going to hotel meetings, buying over priced products that you don't need, and pushing your friends and family away in the process, I'd highly suggest that you consider giving affiliate marketing a shot. I'm not going to guarantee that you will be successful, but I will guarantee that if you are successful, it will be one of th best decisions that you have ever made. 
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mountainmom5
Joined: 30 Aug 2007
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# Posted: 26 Aug 2009 10:15
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Very well said! (and I totally agree... there is a new wave of multilevel marketing sweeping our small town area and I am so glad I have been there, done that as they make it sound so good, I would probably jump on the band wagon... )
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Matt Zenittini
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# Posted: 26 Aug 2009 10:39 · Edited by: Matt Zenittini
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mountainmom5: I would probably jump on the band wagon
That's what makes it work!  .
Great Post Keith.
Matt
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Newbie Shield
Joined: 22 Sep 2007
Posts: 2232
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# Posted: 26 Aug 2009 11:07
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Hi Keith,
Nicely put.
~Newbie Shield~
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mountainmom5
Joined: 30 Aug 2007
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# Posted: 26 Aug 2009 11:09
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Matt Zenittini: That's what makes it work!
Yup, I agree!!
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A8ch
Joined: 24 Jun 2005
Posts: 615
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# Posted: 26 Aug 2009 12:08
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Hey Keith,
Ever considered publishing a hard cover book?
Your brief critique and comparison of MLM and AM was absorbing, insightful and accurate. Your arguments were compelling, clearly stated and delivered in the relaxed, matter-of-fact tone of someone who thoroughly understands the subject matter.
Even the visual presentation was attractive.
Does the title "Keith Riffle, #1 Best Selling Author" appeal to you?
Great post!
Hermas
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getagrip
Joined: 20 Feb 2006
Posts: 1936
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# Posted: 26 Aug 2009 14:43
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Wow, I thought there would be more contriversy! LOL
I think, Hermas, that I'm going to title my hard cover book:
"I Know More Than You"
I'll re-write the sequel and call it:
"I Still Know More Than You".
Just kidding. LOL
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Matt Zenittini
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# Posted: 26 Aug 2009 14:58
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getagrip: Wow, I thought there would be more contriversy! LOL
Noooo lol. I feel like one of the few MLMers here haha.
Plus we covered that in our last thread .
Also, pretty much everything you stated was true.
With the exception that.
I don't fit the stereo type of going to hotel meetings and recruiting friends, family etc.
Some teams (as ours did) are doing things online now. To avoid those hassles.
However...
Most do =].
Nice post.
Matt
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getagrip
Joined: 20 Feb 2006
Posts: 1936
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# Posted: 26 Aug 2009 15:32
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I think less MLMs do the hotel thing, but they are not uncommon. Not long ago, I had two friends involved with MLMs that invited me to watch their MLM guru speak. "I wonder" what they were going to speak about? Any guesses? LOL
A friend and I were joking that going to an MLM conference might be a good way to meet girls. I mean, if you meet a girl who is part of the MLM, she is going to try and talk you into joining, which means you can get her undivided attention.
So, as she is talking to you about her MLM, you can just change the subject to learn more about her, and when she switches the subject back to talking about her MLM, you can just change the subject again to getting to know her. LOL
The only problem is, even if you start getting to know each other, there is that age old question that is always going to be on your mind:
"Does she like me or does she just want me to join her MLM?"
Of course, in her mind, the question might be more like:
"Does he want to join my MLM, or is he just trying to get a date?"
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Matt Zenittini
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# Posted: 26 Aug 2009 15:53
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LOL nice.
I know you ran into that from personal experience .
I did the hotel meetings before... They even charge you to get in.. yuck.
If the MLM tries to recruit you that way. RUN.
Far and fast.
Don't look back.
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happywife
Joined: 14 Aug 2007
Posts: 1102
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# Posted: 26 Aug 2009 18:33
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Hi Keith,
Nice article. It's a good comparison of the differences between many MLM companies and affiliate marketing. I do both and enjoy both.
Fortunately, I don't have any previous nasty MLM experience so it's all been good for me. I happened to get involved with one of the "good" MLM's.
They only charge $15 to join, but it's free if you make a first purchase of about $50 which I was doing anyway, so that was a boon.
I did actually attend an infamous "hotel meeting" for the first time in May, but it was all paid for by the company and turned out to be not a RAH, RAH business building meeting, but an information packed meeting on the products, which was exactly what I was hoping for - I wanted to know more about the benefits of the products so I could recommend them appropriately to my site visitors.
Like Matt, I do almost all of my MLM promotion online via my health related website. After the first few months of product usage (money out of my pocket), my product sales more than cover my personal usage costs, so I'm always in the black.
I'm not big on pushing the products on friends and family unless they ask me about them. Even then, I tend to end up purchasing what I think they need and giving it them as a gift. 
I'm not working on being a "business builder" trying to create a "downline" at this point. I'm just using it as a way to help people who are looking for natural answers to various health issues.
On my website I combine both my MLM products and my affiliate products - depending on the needs of the visitor.
I've become a fan of both methods of marketing when done appropriately and with other people's best interests in mind.
I've had bad experiences with unscrupulous affiliate companies, too, so no one is lily-white, I suppose. It's just important to understand what it is you are getting into and what to expect.
As you said, there's good and bad in the various MLM companies. Each person should do their research before jumping on that band wagon MM5 mentioned.
I'd also recommend people start out with affiliate marketing as there is no monthly purchase requirements for yourself. It makes it easier and without as much pressure.
I suppose if you are already using a product and continue to do so regardless of the marketing side of things (like most of my customers), that's when it would make more sense to consider working that particular MLM as a business.
Good, thought provoking stuff!
Blessings,
Angie
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Vishal P. Rao
Joined: 23 Jun 2005
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# Posted: 27 Aug 2009 01:21
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A8ch: Ever considered publishing a hard cover book? Your brief critique and comparison of MLM and AM was absorbing, insightful and accurate. Your arguments were compelling, clearly stated and delivered in the relaxed, matter-of-fact tone of someone who thoroughly understands the subject matter. Even the visual presentation was attractive. Does the title "Keith Riffle, #1 Best Selling Author" appeal to you?
And who better than Hermas to write a foreword for the book.!
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jeffathome
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Posts: 118
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# Posted: 2 Sep 2009 23:06
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I like both forms of marketing. Lucky for me my MLM gives me free customers everyday from the $100 million a year they spend on infomercial advertising. We love the work out programs and are in the best shape of out lives. A lot easier to share a lifestyle than just a product that promises the world.
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mountainmom5
Joined: 30 Aug 2007
Posts: 2058
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# Posted: 3 Sep 2009 15:45
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getagrip: A friend and I were joking that going to an MLM conference might be a good way to meet girls. I mean, if you meet a girl who is part of the MLM, she is going to try and talk you into joining, which means you can get her undivided attention.
Ever heard of Dani Johnson??
That's how she met Hans, her husband, and they went on to become multi-millionaires ... together.... with mlm....
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Matt Zenittini
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# Posted: 3 Sep 2009 16:02
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mountainmom5: become multi-millionaires ... together.... with mlm...
MLM is good =].
...
..
If you work it .
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mountainmom5
Joined: 30 Aug 2007
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# Posted: 3 Sep 2009 16:11
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Matt Zenittini: MLM is good =]. ... .. If you work it .
...that could actually apply to quite a number of areas in life...
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Matt Zenittini
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# Posted: 3 Sep 2009 16:12
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mountainmom5: ...that could actually apply to quite a number of areas in life...
Life is good
...
..
If you live it .
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gowriter
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# Posted: 8 Sep 2009 02:23
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I like both, but I like Network marketing a little more because of the steadiness of income. It's guaranteed and over all, in my opinion, less maintenance.
A lot of it depends on your product. If you're selling health drinks, you've got to look for people interested in fitness and weightloss, not just the biz opportunity.
If you're selling pre-paid legal, get people on board who are worried about child support fights or identity theft. Not everyone is interested in the opportunity.
If you can network a good product with a good biz opportunity and great marketing system with great training, then hallelujah! You his the jackpot.
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mountainmom5
Joined: 30 Aug 2007
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# Posted: 8 Sep 2009 09:05
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Matt Zenittini: Life is good ... .. If you live it .
Love it!
Matt Zenittini: Noooo lol. I feel like one of the few MLMers here haha.
You are a very nice mlmer and I am glad you are on here.... we need variation.
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WARRANTIES4LESS
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# Posted: 12 Sep 2009 21:53
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Interesting,
I do both, and have for a long time, in fact, does anyone know when the first affiliate program was started? I was thinking back, and I had created a semi affiliate/MLM which I always felt was the way to go. It grew nicely, and although it was only a two tier affiliate, it did have a component which provided overrides, so I was thinking, when did first affiliate program hit market?
As I see it today, the line is getting more blurred everyday. Now we see most affiliate programs at least two tier and maybe more in time, so now we are getting into MLM land. lol With so many people in both these days, I prefer the MLM model given it does provide much more leverage, and that is where the real money is.
Success to all,
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getagrip
Joined: 20 Feb 2006
Posts: 1936
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# Posted: 12 Sep 2009 22:29
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I think most affiliate programs are actually single tier - you get staight up commissions based on a percentage of the sale. I don't think the line is getting blurred at all - there are huge differences between most MLMs and affiliate programs - the main difference is that the latter of the two enables most people to earn a lot more money because the commissions are generally higher, and is easier for most people to get into because there are no sign up fees.
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WARRANTIES4LESS
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# Posted: 13 Sep 2009 14:30 · Edited by: WARRANTIES4LESS
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Agreed,
Most still are single tier, but I have seen more go to 2 tier in the last year than in last five, and for good reason, leverage. No matter how good you are at getting traffic to your sites, there is nothing better than having others doing the same thing with you collecting a residual override. It always goes back to the quote, "I would rather get 1% from a 100 than 100% of my own efforts. lol
Classified Ad Central just went with two tier, and sales jumped dramatically. FREERXPlus just went from two tier to option for four tier, a very creative way to accommodate both sides of issue, straight affiliate or MLM. Guard Your Place just went with two tier, and 1ButtonToWiFi just went from single tier to MLM with merger with MySocialIncome, the first to combine social media with an MLM, another unique twist, and also free to join.
No doubt in my mind, the industry is always evolving, and I see this trend continuing, like it or not. As to earnings, there is no way a single tier affiliate can compete with multi tier or MLM in the long haul. Having been promoting affiliate programs for over a decade, as well as running a couple, I always used 2 tier minimum which is my preferred option. If you keep up with affiliate software, you will see this option is available on all the ones I have researched, so again, this is the trend as I see it.
I know in my affiliate marketing efforts, yes, you can make a little more on your own efforts with a single tier, but this is short sited as most cannot get enough traffic to even hope for enough conversions to make it worth while, and that is the problem with affiliate programs today and why so many so called guru's sell their deals under an affiliate strategy now. Most of them know the trend is set, affiliate marketing is not as easy as it use to be, and if it was, they wouldn't be selling all their secrets. lol
We are in an era of change, and what worked yesterday no longer is assured to work tomorrow. If you are working singe tier affiliate plan, what happens if you get sick and can no longer promote your links? It goes back to the reason MLM is so attractive over the years, you can essentially work it hard, then sit back and relax if you want to, and if you sadly do get sick and cannot work, your income continues. For me, this was always the most attractive aspect of MLM, and still is. As to affiliates being free, this too is changing and many are now requiring a purchase, and I like this strategy as well.
The reason is obvious, most people have figured out that if they are interested in a product knowing it is an affiliate offer, and they look at the bottom of page for the affiliate link, they register, and then they purchase from their own affiliate site which just cut you out on sale, and this is the flaw in affiliate marketing as I see it today. If an affiliate program was at least two tier, then you would still make an override, so you would not lose your total commission. You cannot stop this trend, so don't think it is not impacting you as we speak. I just lost a commission of $100. because this person decided to register as a free affiliate and purchase from himself. I was seeing this trend develop a few years ago, and it is just one of the reasons I don't waste time on single tier affiliate programs anymore. The mold is set, the trend away from these single tier free programs is set, like it or not. Give me multi tier over single every time, or a must purchase option before you can become an affiliate which protects affiliates. Simply put, don't waste your time or money promoting single tier affiliates.
Success to all, Mike
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getagrip
Joined: 20 Feb 2006
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# Posted: 13 Sep 2009 15:23 · Edited by: getagrip
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The reality is that if an affiliate program is two tiered - and most are not - the bulk of the commissions are paid up front. For example, your commission might be $15 for all single tier sales, and $1 for multi tier sales. So, you get a little extra for multi tier sales, but the majority of your earnings are paid from single tier commissions.
The opposite is true for most MLMs - your commission might be $1 if you have no one underneath you, and $2 if you have 10 people under you, and $5 if you have 20 people underneath you, and so on and so forth. The chances of earning $15 are very little, because you have to have a lot of people underneath you, and most people will never reach that level. Generally speaking, the commissions paid by MLMs are significantly less than commissions paid by single tier affiliate programs.
This is one of the reasons why single tier programs can compete with MLMs over the long haul for long term earnings, and offer better earning potential for the majority of people. With affiliate programs, your commissions in the beginning are almost always higher than what most MLMs offer, and you can earn much more in a shorter amount of time. As long as you are on top of your game, your long term earnings will continue to increase.
So, while multi tier affiliate programs are nice and can increase your earning potential as an affiliate, they aren't absolutely required to become successful in affiliate marketing. In almost 100% of cases with MLMs, your potential to earn significant commissions are dependent on bringing in more people to the company, which has a limiting effect on the amount of commissions you can earn, especially if you have a hard time convincing anyone to join your MLM.
If you get sick, as long as you have things set up correctly and have been doing your work, that usually won't be an issue with affiliate programs, because many of the promotional methods you use run themselves. Personally, I've earned commissions many months after I started promoting something - from websites or other venues I haven't updated in a long time. So, while the focus of MLMs is recruiting new members to improve your short term and long term earning potential, the focus of affiliate marketing is moving into new markets to expand your earnings, or to make current niches more profitable. There are also affiliate programs that offer recurring monthly commissions, increasing both the the short term and long term earning potential.
As far as affiliates buying through their own link is concerned, most newbies have no clue that you can even do this, and many affiliate programs have rules against this. Clickbank, for instance, is still very strong and isn't going anywhere, and it should be noted that most affiliates who purchase through their own links do it for "make money online" type products - other niches such as weight loss are not significantly impacted by this. Additionally, most affiliate networks such as Commission Junction sell physical products, and are not effected by affiliates buying through their own links. Successful affiliates don't waste their time with single tiered affiliate programs - rather, they profit from them.
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WARRANTIES4LESS
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# Posted: 13 Sep 2009 15:52
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Agreed,
There are many variations, and that was what I was pointing out, you are pro affiliate, I am pro MLM, and I like the fact that they are not as far a part as they once were.
As to payouts, true, a single tier or even two tier will pay out more, but you cannot hope to escape the fact you have to work harder promoting it to make money, and this is just the opposite with MLM.
My affiliate program payed out 30% on first tier and 10% on second and I grew it to over 10K affiliates in six months, and if I had only one tier, I would have been lucky to get half that many in same time frame using simple duplication math.
As you will soon learn, the hard way I am afraid, and that is you will not have the same affiliate program for more than a couple years if you are lucky. Rarely is a product unique enough to demand long term market presense. Sure, eBay and Amazon are long term deals, but with millions of others promoting the same affiliates, sorry, short term is what I have tracked over the years.
How long have you been involved in affiliate marketing? Always enjoy hearing about the experience of others who are long term marketers who can be unbiased on both sides of issues. Yes, I am a little more pro MLM than affiliate as I have over a decade of experience to make my choice. I am still making money on MLM's which I have not promoted for years, yet I don't have a single affiliate program producing for more than a few years, so we shall see.
What I have seen is my revenues drop every month over past year on both, never mind my PPC revenues, so the recession determines our success just as it will our failures. I concentrate only on recession proof businesses now, and have for past year. You mentioned the product mix, and there are indeed more choices in affiliate marketing, but this too is changing as the internet grows.
I don't work just one affiliate program, just as I don't promote only one MLM, so I like to cover all the bases with leverage strategy. This has gotten me through last recession, and is getting me through this one as well. The internet allows one to promote more than one affiliate, as well as MLM, so I am still an advocate of affiliate programs, but only multi tier ones for the most part. lol Guess you might say I see the benefits in both.
Success to all,
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getagrip
Joined: 20 Feb 2006
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# Posted: 13 Sep 2009 16:52
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I don't think Amazon or eBay are short term at all. It might be true that a "hot" product today won't sell as well two years from now, but you can always break into new markets. For instance, Apple Ipods might not be as "hot" as they were two years ago, but there still is demand for them, and new products like the Apple iPhone are always giving affiliate marketers plenty of opportunities to promote new products.
It is true that there is lots of competition for these kinds of products, but your ability to be successful as an affiliate marketer depends on which marketing angles you take - sometimes you just have to be creative in your marketing approach, and as long as you have unique content, people will find your websites in the search engines.
There are also plenty of other niches out there that have much less competition than Apple iPods - its just a matter of doing research and thinking creatively. For instance, how many affiliates out there are promoting Nebraska vs Virginia Tech College Football Tickets? Not many...
I don't think that you necessarily have to work harder to promote affiliate programs than you would with MLMs. Convincing someone to join the MLM is hard enough, and offers a challange most MLMers will never overcome - if they do manage to overcome that hurdle, many MLMers will never be able to overcome the challenge of selling the products that their MLMs offer. Which is easier to sell, an Apple iPod, or a vitamin supplement no one has ever heard of?
Both affiliate marketing and MLMs have their unique challenges that require a lot of time and effort, but in many ways, I think the challenges that many MLMers face are greater than the challenges affiliate marketing face, and the reason is the recruitment factor - if your success depends on how many people you can bring into the company, but you can't get anyone to join the MLM company, you aren't going to earn money, and if you sell a product that no one recognizes, you are in big trouble, especially if you made a large monetary investment to join the MLM company to promote that product.
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WARRANTIES4LESS
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# Posted: 13 Sep 2009 22:44
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Note:
I indicated that eBay and Amazon are examples of long term, not short, but millions are affiliates for both, so although they may last, I assure you, very few are making money on these out of the millions, that was my point.
No doubt, niche markets are the only way to go these days, but like you with your affiliate training, most will not know this unless they spend the time researching the market, and stop falling for all the guru deals out there being hyped.
So I am curious, how long have you been affiliate marketing? I can understand why your points on pros and cons in this thread, but for everyone who is making good money in affiliate marketing, there are more making much more in MLM which has been around for six decades. Like I said, affiliate marketing is about a decade old as far as I remember, I created my first two tier in 98, but I don't recall many others if any at the time, do you?
As to niche, this applies to both affiliate and MLM, you have to offer something the masses want, and what everyone wants in a recession is to save money. So unless you are saving people money or have something exclusive or unique, or plug a niche, you won't succeed in either, so they are same in that comparison.
I was doing great as affiliate for casinos for years, then the U.S. gov. attacked and took it all away, or almost, I am back at promoting FullTilt Poker affiliate, so we shall see if they can beat the gov. in long term, so far so good. One thing I can say about affiliate programs, gambling and sex are hot, always have been, always will be, so yes, a big niche is better than a small one in my experience. In fact, my sex affiliate also just went MLM a few months ago and really took off ever since and my income is increasing every month based on leverage of MLM model.
Success to all,
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getagrip
Joined: 20 Feb 2006
Posts: 1936
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# Posted: 13 Sep 2009 23:39 · Edited by: getagrip
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Some eBay affiliates are earning 6 figures. eBay and Amazon are just two examples - there are many other affiliate programs out there that people earn money from. Yes, there are lots of eBay and Amazon affiliates out there, and many of them don't make money, just as there are many in the MLM business who don't make money.
Just because MLMs have been around longer doesn't make it the better business model. Only a very small percentage of people who have been involved in MLMs over the past six decades have earned back their initial investments or made any sales at all. There are lots of affiliates who have been able to make sales, earn commissions, and make a profit as affiliate marketers.
Niche marketing isn't the only way to go as there are affiliates out there earning money in very competitive markets, although it is a lot easier to enter a niche market with less competition than an extremely competitive market. I agree that there are a lot of guru's out there who scam people.
When there is a recession, I agree that people tend to hold onto their money a little bit more compared to when the economy is good, but there are plenty of goods being sold in the current economy - just take a stroll over to eBay and take a look at how many bids there are on certain products - as long as people have money to spend there is always going to be opportunities in affiliate marketing. It should be noted that people in a recession are much more likely to buy a product that they recognize through brand recognition than one that they don't, which means affiliates who promote brand name products are going to do a lot better than those who only have the option of promoting an obscure product that their MLM offers.
There are many other niches that affiliates do well with other than the ones you mentioned. Just head over to Commission Junction and take a look at the 3 day and 7 day earnings per click - you are going to find good numbers in hundreds of diffent niches. Some of these niches include automotive, beauty, dating, financial, and many other markets.
That, in itself, is one of many examples that proves affiliates are doing well, and that affiliate marketing isn't going anywhere but up anytime soon. In my opinion, affiliate marketing has done much more in 10 years than multilevel marketing has done in the last 60, and the fact that many brick and mortar businesses such as Walmart, Target, and Best Buy have affiliate programs rather than MLM programs is a testament to the potential of affiliate marketing, and this is just the beginning.
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Andy3568
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Joined: 14 Sep 2009
Posts: 54
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# Posted: 14 Sep 2009 22:11
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Hi everyone!
I found this topic interesting because my wife is doing MLM and I am doing affiliate marketing. LOL Both of us are newbies, so the jury's still out on which we like better.
My wife's company is straight up MLM, so she sells products to people that she has to order from the company wholesale and then earns the retail minus wholesale difference. However, it also has a website component that acts sort of like affiliate marketing. If someone goes to her website and orders from there, she never handles any product, and she gets a check for the order. I guess it is a little more flexible than affiliate marketing in that respect. The product is something she is interested in, and I don't believe there was any cost other than the starter kits, so I believe it is one of the good ones. I do have to say that I totally agree with you about the MLM companies that require you to pay for the privilege to promote their product. LOL
The good thing about me getting into affiliate marketing is that I an use the same promotional techniques I'm learning to promote my wife's website. We'll see how all that works.
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mountainmom5
Joined: 30 Aug 2007
Posts: 2058
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# Posted: 15 Sep 2009 00:03
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WARRANTIES4LESS: gambling and sex are hot
I have noticed that... but those are both so far outside my comfort zone, that I'll just have to leave them to other more daring folks like you.
You have to remember that I was a little amish lady for the first 30 years of my life...
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GaryCameron
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Joined: 23 Aug 2009
Posts: 37
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# Posted: 15 Sep 2009 03:52
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There is money to be made with Network Marketing. There is money to be made with affiliate marketing. All depends on where you want to focus your time.
Personally, I know more people who are very successful at Network Marketing than I do who are successful at affiliate marketing.
The better Network Marketing companies have a strong retail side to their business.
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