MLM is the acronym for Multi Level Marketing.  This popular business model combines direct sales with network marketing.   Income is earned by selling and building a network that sells.

Affiliate Marketing is selling products for companies for a commission.  Affiliate marketing can be piggy-backed on almost any business model.

How does the MLM Model Compare?

Many businesses are like MLMs.  Workers give time to the owner in exchange for pay.  All business depends on sales of some product or service.  A large part of profit depends on the workers.

The owner does not sell every item manufactured, but receives profit from every one sold.

In an MLM, each member builds a network.  Everyone, in the network, gives a portion of their earnings to the head of their network.  Although MLMs sell products and services, most money is earned through the network.  When members leave the network, they must be replaced to keep up the network income.

In Affiliate Marketing, a business owner earns commissions by directing customers to sellers.  The number of purchases made at the website depends on how many people visit the site and buy the products advertised.  When looking at one affiliate product, the customer has access to all the products. The owner of the affiliate marketing business is completely responsible for the amount earned.

What are the Pros & Cons of Each?

MLMs and affiliate marketing are both ways to build an online income.  An successful MLMer is dependent upon they recruited into their network to earn.  Income is limited to the size of the network and the production of the network.  The affiliate marketer is responsible for every part of the business except a customer’s decision to buy through the affiliate marketing site.  The more time the business owner puts into building and marketing the website the more successful the business will be.

Based on Pros & Cons, Affiliate Marketing is the Better Online Business Choice.

Take a moment to leave your thoughts about this page in the comment section below.  Have you worked in an MLM or Affiliate Marketing system?  Would you like to have an online business?