Multilevel Network Marketing vs Affiliate Marketing

Understanding both trendy terms is a bit mystifying aspect. Sometimes many readers think that Multi Level Marketing is synonymous meaning of Affiliate Marketing and vice-versa.
But these two terms with Marketing as a common aspect are very prominent ingredients to a dish called business. Further, here we are going to learn the definitions of these two terms Multi-Level Marketing (MLM), and the working procedures, their advantages and drawbacks, and more interesting matters.

Multi-Level Marketing (MLM)
Multi-Level Marketing has the following names:
Direct Marketing
Network Marketing
It is probably a method of selling the business products and services in a direct form to the consumers by relying on independent sales representatives.
Network Marketing companies influence new recruits with the assurance of two aspects called wealth and independence.

Under the model of the Multi-Level Marketing method, the business companies rely on the team of members rather than going for retail outlets for the process of selling. MLM’s business model has the advantage of an extended network of independent distributors for generating revenue.

Working Model of Multi-Level Marketing (MLM) / Direct Marketing
To have an overview of how Network Marketing, we can simply think of a structure of a Pyramid in our minds. If ready with your imagination, let us move on with the further problem. Let’s now focus on the pyramid structure and divide the structure into 4 parts. Assume these 4 parts as
A
B
C
D

First, we will start with the initial part “A”. “A” here is the first and foremost distributor of a Network Marketing business. This part is the top part of the pyramid.
Now, moving further, “A” hires 4-5 independent distributors here under “ B” who again hold the duty of recruiting 4-5 more independent distributors suitable for the Network Marketing process under “C” and the process continues under “D” stage as well. This now fills out the pyramid that is suitable for Multi-Level Marketing businesses to rely on selling the products.
“A” is the sponsor now also called an Upline member who is responsible for recruiting the downline members. These parts play a vital role in the business model of the MLM business. All the distributors from the parts contribute their earnings to the company and upline members.
Network Marketing Distributors make money from the process of selling products and services to people and bag in the sales and earn commissions from each person they recruit. This process continues and the sales of the business’s products and services grow.
Network Marketing offers a variety of compensation plans that further assists in the procedure of upline and downline members. These plans help out the members more by defining the requirements.

Less Risk: The amount of risk factors here is very less. Most businesses involve many risks. Multi-Level Marketing doesn’t have any type of risk as people can easily join the business by paying a small amount of fee. The fee paid by them gets discounts on the business products and services that are offered by that business.
Great Potential Income: There is no limit to generating money as the complete process depends on the decision and knowledge. It is definitely said that Network Marketing cannot hold you back.

Huge Demand for Products: Huge demand for the products offered by MLM. There are a great variety of Network Marketing companies that promote very good products.
- Every business needs more customers. Distributors or Sales Representatives get paid for the products and services when these customers continue that consumption and then create money flow.

Affiliate Marketing is the procedure of earning money online whenever a customer purchases any product or service and shares it on a blog or on any social media platforms and websites. The person involved in this process of earning is named an affiliate. The affiliate earns a percentage of the commission every time when any of the customers makes the purchase with the help of a unique link or unique code that has an association with the products and services.
Many prefer Affiliate Marketing as an opportunity that acts as a great source of additional income and assists in the diversification of the revenue system of each business.

Initial step is finding the best affiliate program.
Secondly, join the affiliate program by picking on the best program suitable accordingly.
Choose the offers that help in promoting the business’s products and services.
Get hands with the unique affiliate link or unique code for every single offer for the products and services.
Once done with the unique affiliate links or codes start to share those links or codes on the suitable platforms as suggested. Some of them include blogs, social media platforms, YouTube platforms, or any website.

Targeted Traffic: Affiliate Marketing is the best source to achieve great traffic for any business’s products and services. As affiliates can be handpicked by the business, it can be assured that there will surely be great traffic that can be fetched to the business. Thus, individuals can find the product or the service more effectively. The business can achieve a great number of sales and traffic.

High ROI: Undoubtedly, an affiliate marketing strategy can fetch a greater percentage of return on investment than the other marketing strategies. The main justification for this is that the targeted audiences get exposure to their products and services from the affiliates. Affiliates work on the targets and achieve their targeted sales in no time.
- As the products and services by affiliates are presented to targeted customers, there is direct access to the audiences.
Fewer Costs and Low Risk: As the process is commission based, there are no additional costs that can be attached. This is the marketing model that is cost-effective and doesn’t influence the cash flow. The only earning objective is when the sales are made.

As mentioned, MLM is a structured and hierarchical model for distribution. This method consists of a network of distributors involving the selling of products and services. Whereas, Affiliate Marketing is the process of earning money by promoting products and services.
The primary objective of Network Marketing stands to generate revenue from the distribution of these products and services with the help of pyramids of reselling and distribution.
When it comes to Affiliate Marketing, the main notion is having a simple partnership between the affiliate and the merchant.
Marketing channels under MLM/ Network Marketing or Direct Marketing business functions with referrals to known people and more. Affiliate Marketing channels include Pay-Per-Click advertising, organic search, social media platforms, blogs, YouTube, and more.

Ultimately, the summary is that both Affiliate Marketing and Multi-Level Marketing (MLM) are completely based on the usage of the strategy and system. Though we find that MLM is not at any point interlinked with the Affiliate Marketing programs. These two methods are amazing at their points in earning money. Many individuals work on these and earn a higher percentage of revenue. Both are more popular and cost-effective with less risk. Going for any option can be the best decision.