Many of you intrigued by this question might think they know but aren't entirely sure if they know what the difference between an MLM and a straight affiliate program is or how to choose one from the other.
You likely joined your first company based on what they promised to pay you and not based on the value in their products, and hell if you knew if they were legal or would even pay but someone you recently met said they were doing good there so let's spend $50 and give it a sniff. You failed unless you knew something about marketing online and already knew the answer to my original question, but if you did the chances are slim you are here right now. So let's start off with the basics of online marketing.
The basics of affiliate marketing and yes we are all affiliates in this business.
The principle of an affiliate is to promote the sale of goods in exchange for a commission or share of the profits of the product. For the company the benefit is they can spend 1,000 a month promoting their affiliate program and have 100 affiliates sharing their products with hundreds of thousands of potential customers. They can then hold onto the other 20,000+ a month they would have spent on advertising as these affiliates, especially the smart ones who make money will pay to advertise for them. Simple math we will pay you after you advertise us only if that advertising you bought works.
Scary poop right there.
But with a well trained mind like you get from e-courses and seminars, a willingness to adapt to market change, and a desire to know everything about your business and it's products an affiliate can turn a couple hundred a month in investment into a couple grand a month in earnings. If you are one of 20 affiliates in that 100 who spends $250 a month in advertising the store will benefit from 5,000 a month in advertising per every 100 affiliates they have being directed in and they only pay a fraction of their income if that income is increased.
So what is this MLM, Network Marketing or Affiliate Marketing talk if we are all affiliates.
MLM - AKA Evil Monkey is a form of business that not only does the product seller get you to pay to advertise so they don't have to. They give you a wild sounding comp plan that sounds like pure money and even with a lawyer and accountant to help you read it you will never know exactly how to get every penny out of the system possible. Now that results in lower pay per initial sale but the ability to recruit other people to amplify your sales is introduced. You no longer work alone, you have a team and when they make money you make money even if you had a bad month in sales, were sleeping, or on vacation. Now for the most evil part of their scheme the autoship. In MLM they don't have to focus on product sales because the affiliate has to be the customer in order to get the pay-plan. You have to not only advertise so they don't have to but you have to guarantee you will buy a minimum amount of their products at an inflated price to boot. Most now days even charge you additional for adding your name digitally to the site when someone goes through your affiliate link claiming they have built you a website that doesn't actually exist. Evil Evil Monkey MLM.
Affiliate Marketing - AKA Door to Door Sales Force. We work a bit differently now days that door to door sales people using the internet, mail, and media to deliver the pitch instead of in person but affiliate marketing is a pretty straight up situation. You are not charged anything to start your business, all sales are of real products of value, and all commissions come as a reimbursement of your advertising cost and hopefully a profit after you do what it takes to get a customer to buy.
Network Marketing - Affiliate Marketing was in a bar one night and had a few too many when evil monkey walked in and was trying to pick her up. She heard his spiel and they hooked up sharing a few features and soon enough little network marketing was born. Basically network marketing is the mix between the legal and ethical business end of affiliate marketing such as all income is derived by sales of products which hold a real world value equal to or greater than their price and Evil Monkey's Multi-Level pay plan minus the confusing talk and hidden bonuses. In Network marketing you will not be asked to pay for the right to pay for the companies advertising. You might be offered a chance to buy their products but it is 100% optional, and you know exactly what pays you. Sales by you, and sales by your sub-affiliates or referrals. If I make a $20 sale that pays a commission volume of $10 and I get 60% of the CV and my sponsor gets 40% of the CV off every sale you get $6 and your sponsor get's $4. You don't need a 100% matching bonus, a BV, a Bonus1,2,and 3. to give one up, two up, or force spillover into a pyramid shaped matrix, you know exactly how you get paid.
Armed with this knowledge we will now open the floor to your questions and comments.