Affiliate Marketing vs. Pyramid Scheme: What’s the Difference?
The main difference between Affiliate Marketing and Pyramid Scheme is that in affiliate marketing, you earn money by promoting products, while in a pyramid scheme, money flows mainly from recruitment.
Before we move to more differences, let’s first understand Affiliate Marketing and Pyramid Scheme:
- Affiliate Marketing: Affiliate marketing is when you help sell a product for someone else and get a little bit of money in return. You share a special link, and when people buy the product through your link, you earn a small commission.
- Pyramid Scheme: In a pyramid scheme, people are promised big money for recruiting others into a scheme. The focus is on bringing in new members rather than selling a real product or service. It can be risky and might not be a good idea to join.
Now, let’s get to Affiliate Marketing vs Pyramid Scheme:
Major differences between Affiliate Marketing and Pyramid Scheme
| Affiliate Marketing | Pyramid Scheme |
|---|---|
| Affiliate marketing involves selling a company’s products for a commission based on sales. | A pyramid scheme relies on recruiting others to invest in a program with a promise of high returns. |
| In affiliate marketing, income is primarily generated through product sales. | In a pyramid scheme, recruitment is the main focus for earning money. |
| Affiliate marketing is based on legitimate business practices and is legal. | Pyramid schemes are often illegal and unsustainable. |
| Affiliate marketing allows individuals to earn commissions based on their sales performance. | Pyramid schemes promise exponential returns that are unrealistic and often unattainable. |
| Affiliate marketing involves promoting products or services to a target audience. | In a pyramid scheme, the emphasis is on recruiting new members to the scheme rather than selling actual products. |
So, these are the main differences between the entities.
Also see:
- Sponsorship vs. Advertising
- Endemic Advertising vs. Non Endemic Advertising
- Advertising vs. Sales Promotions
You can see other “differences between…” posts by clicking here.
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