Affiliate Marketing vs. MLM: What’s the Difference?
The main difference between Affiliate Marketing and MLM is that in Affiliate Marketing, you earn commissions by promoting products, while in MLM, you earn by recruiting others into a network.
Before we move to more differences, let’s first understand Affiliate Marketing and MLM:
- Affiliate Marketing: Affiliate marketing is when people earn money by promoting products. They get a special link and if someone buys through that link, the person promoting it gets a commission. It’s like telling your friends about a cool game and getting a reward if they buy it.
- MLM: MLM stands for Multi-Level Marketing. It’s when people sell products and recruit others to sell too. If you recruit someone, you earn money from their sales. It’s a bit like building a team where everyone sells and recruits others to sell as well.
Now, let’s get to Affiliate Marketing vs MLM:
Major differences between Affiliate Marketing and MLM
| Affiliate Marketing | MLM |
|---|---|
| Affiliate marketing focuses on promoting products for a commission from sales. | MLM involves building a network and earning from both personal sales and the sales of those recruited. |
| In affiliate marketing, there are no tiers or levels to recruit others. | In MLM, recruiting and building a downline is essential for earning potential. |
| Affiliate marketing does not require upfront investment or purchasing inventory. | In MLM, there is often a requirement to buy products or starter kits. |
| Affiliate marketers earn solely based on their sales and referrals. | In MLM, earnings are generated through personal sales, team sales, and bonuses from the organization. |
| Affiliate marketing is typically simpler to start and involves promoting products through online channels. | MLM often requires face-to-face selling and recruiting to build a team. |
So, these are the main differences between the entities.
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