MLM vs Affiliate Marketing on the Internet

There are several MLM companies and distributors who say they are not MLM, but in fact when you look at the pay plan their true identity is revealed. MLM (multi-level marketing) is direct selling which involves a product or service. True multi-level marketing involves selling a product or service that is worthwhile both to the distributor and to the purchaser. When a distributor builds an organization of other distributors a percentage of the profits go to the upline (distributor) who sponsored no matter how many levels up.

Some MLM compensation plans are profitable by just reselling the products. Just reselling the products is also known as affiliate programs. Affiliate programs online are a dime a dozen. Most affiliate programs only pay out 1 level. You sell a product or service and you get a commission from the sale of the product. Also gaining in popularity are 2 and 3 tier affiliate programs. In these programs you get a small commission on your second and third level sales to. The main difference between an MLM and affiliate is the level of pay out. If the pay out goes down many levels it is considered MLM. A true affiliate program will pay out only a couple of levels down.

The first years of MLM revolved around recruiting your friends and family to purchase your products and join in. This type of marketing is also known as the warm market. Your friends and family trust you and want you to succeed so they buy into your program. The warm market method though had it downfalls, that being you run out of family and friends.

The 3-foot rule came along in the multilevel marketing arena. This notion was that you were to prospect everyone within three feet of you and sell your product whether you knew them or not. Fortunately this practice is not taught in MLM tips or techniques today.

In the 1980's and 90's newspaper advertising became pretty popular. Most of the ads were placed in the sales section in the classified ads. This form of recruiting new distributors was soon shut down by government regulations. The government contended that they were fake job ads. Today you may see MLM distributors advertise in highly targeted magazines although this type of advertising can be quite expensive.

Today, the Internet has revolutionized multilevel and affiliate marketing. Location is no longer an issue, you can advertise and sell globally if your company allows. However due to the Internet there are tons of get rich quick schemes. Additionally, there are pages upon pages of training sites and materials teaching how to build your business in MLM. I suggest that you thoroughly review each training program before purchasing.

To be successful in multilevel or affiliate marketing, you must use your product or service and have confidence in the benefits. Confidence in your product or service will show in your sales & recruitment of new members.

MLM and affiliate marketing has evolved across the Internet and I'm living proof it will provide a good stable income if you believe in your product and yourself. MLM is not a get rich quick scheme, it is an honest noble profession and a great work at home opportunity either part time or full time. When considering a multilevel or affiliate marketing business, take the steps to research the company, understand the compensation plan, and USE the product or service.

All too often people are convinced into joining a multi-level marketing company based on hype and the get rich quick schemes they promote. There are many MLM companies advertised on the Internet that promote themselves as a true multi-level marketing company but in reality, they are some illegal pyramid scheme. These get rich quick schemes usually offer no real or worthy product/service.

New MLM thinking: Coca-Cola's Lead Generation Secret

Last night as I was watching American Idol it dawned on me how big businesses piggy back off of each other. Either through sponsorships or joint ventures. For Cocoa-Cola they got lots of exposure during the semi-finals of one of the top watched shows "American Idol."

Now look at Best Buy they set up a partnership (joint venture) with the Geek Squad to offer service for the products they sell. As I look over my (Cindy McAsey) partnership with VereConference it's very much the same they offer the service and I offer the support and training. I can't express how that has broadened my network of folks to communicate with.

In today's internet world with social networking ever so popular, partnerships (joint ventures) possibilities are a dime a dozen. You should consider JV's the New model of lead generation for MLMers.

Here's something to think about...With traditional old school MLM your are leveraging off the work of others "if" they perform. Statistically over 90% don't produce results.

Joint ventures are simply another form of lead generation allowing you to piggy back off an existing lead flow/customer base. A well thought out joint venture leverages off the work somebody else has already done. With JV you decide how you want to work your new found network.

I encourage you to open up your mind to this new way of thinking so you don't get lost in the dust. To broaden your thinking think about where people are congregating and lots of activity going on. There are so many great (what I call) fishing holes online you just need to find one and start networking. Then Get on people's lists. Buy their products to get a better understanding of what they offer. Always look for gaps. Potential areas for you to fill a need.

Best part of this "New" way of thinking is YOU determine what you would look for in a partner. Lead with service when approaching a potential JV partner. Build a personal relationahip first. Don't lead with a sales pitch. Trust and Transparency are key. Start with small JV's and work your way up. Be willing to move on when necessary.

Joint Ventures are the future of MLM. You must decide if you will be part of it.