MLM’s, Affiliate’s, Pyramid’s… Oh My!
This article attempts to explain the difference between multilevel marketing (mlm), Affiliate programs and pyramid schemes.
In this article I want to give the readers a quick breakdown in the differences between an MLM, an Affiliate Program, and a Pyramid Scheme.
To put it simply, and Affiliate Program is basically a way for you to make money by referring people to a website where they can buy some type of product or service. If they buy, the company gives you a percentage. That’s how Amazon took off.
A Pyramid Scheme is illegal. Generally there is no product involved and it costs an "x" amount of money to start. All of the money that you paid to start goes directly to your sponsor. Then, when you sign up your own people you receive 100% of their startup costs as well…don’t get involved with these, they are illegal and eventually fall apart because they are not based on a product.
An MLM stands for multilevel marketing and is another way to create an additional stream of income. Let me use an example.
Lets say you go to a new store and you really like the product they sell. You buy it and it was even better than you thought. The next day you tell your friend about it and they go and buy some as well. The owner of the store is so happy that he gives you $10 for referring your friend and tells you that he will give you an additional $10 for every person that buys the product based off of your recommendation. You refer 10 friends and you get $100. Now you tell your friends to do the same thing and they go refer the product to other people just like you did. For every person they refer they get $10 as well, though the owner of the store also gives you a small percentage for your friends’ recommendations. (Ex. 5% or $0.50) Now your friends tell other friends how to refer people to the restaurant and eventually all those percentage slivers add up.
I hope this helps to clear things up.
About the Author:
Andrew Leone is an active network-marketer training and developing the skills of entrepreneurs all over the net. Find out how to take charge of your own financial freedom by taking his FREE tour. http://www.LeoneGroupMarketing.com LeoneGroup@gmail.com
To put it simply, and Affiliate Program is basically a way for you to make money by referring people to a website where they can buy some type of product or service. If they buy, the company gives you a percentage. That’s how Amazon took off.
A Pyramid Scheme is illegal. Generally there is no product involved and it costs an "x" amount of money to start. All of the money that you paid to start goes directly to your sponsor. Then, when you sign up your own people you receive 100% of their startup costs as well…don’t get involved with these, they are illegal and eventually fall apart because they are not based on a product.
An MLM stands for multilevel marketing and is another way to create an additional stream of income. Let me use an example.
Lets say you go to a new store and you really like the product they sell. You buy it and it was even better than you thought. The next day you tell your friend about it and they go and buy some as well. The owner of the store is so happy that he gives you $10 for referring your friend and tells you that he will give you an additional $10 for every person that buys the product based off of your recommendation. You refer 10 friends and you get $100. Now you tell your friends to do the same thing and they go refer the product to other people just like you did. For every person they refer they get $10 as well, though the owner of the store also gives you a small percentage for your friends’ recommendations. (Ex. 5% or $0.50) Now your friends tell other friends how to refer people to the restaurant and eventually all those percentage slivers add up.
I hope this helps to clear things up.
About the Author:
Andrew Leone is an active network-marketer training and developing the skills of entrepreneurs all over the net. Find out how to take charge of your own financial freedom by taking his FREE tour. http://www.LeoneGroupMarketing.com LeoneGroup@gmail.com
Use the feedback form below to submit your comments.
Use the form below to email this article to your friends.
- "Turnkey" Systems For Building Huge Internet MLM/Affiliate Businesses
- The Power of the Internet for MLM Duplication
- The Importance of MLM Training
- MLM Plan on the Outside, Pyramid Scam on the Inside
- A Review of the Fuel Freedom International Income Opportunity
- 90% Payout. How Good is it?
- Truth on MLM - What Do You Understand
- How to Select the Best MLM from the Top Ten MLM Companies?
- Duplication for MLM Success
- What's Hindering your Vemma Business?
- A Review of the Brilliant Compensation Network Marketing Presentation
- A Review of the BIOPRO Income Opportunity
- Monavie: Review of Home Based Business
- The Evolution Of Practical MLM-A Hungry Market Finds A Home
- Reversed Funnel System Reviewed - The Truth!
- The Right Ingredients to Becoming an MLM Success
- Selecting an MLM Company
- OMENA.WS Releases An Economic Program That Turns A $10 Investment Into A $3905 Monthly Income
- MLM Training - Achieve MLM Success By Knowing That You Don't Know
- Multi-level marketing companies that focus on environmentally friendly products?