People are constantly been faced with the challenge of differentiating between Affiliate Programs and Multilevel programs
Apparently it looks as if they are the same or at least very similar, but the reality is that it is not so, they have substantial differences in both their structure and their commissions.
Multilevel: First of all a multilevel, as its name indicates has several levels of commissions, within each compensation plan you must meet certain requirements (vary from company to company) so that you can generate commissions at those levels. If You do not meet those requirements, then you are not paid commissions for those levels.
Now, companies tell you that what you generate at those levels stays “saved” until you meet the requirements to collect them, the bad thing is that you rarely get to see that savings, because those requirements are designed so that few people will meet them .
Affiliate Program: On the other hand, in the affiliate program, the majority has only one level, that is direct selling. A few have 2 levels, but this is quite rare.
Multilevel: It is said that the advantage of the multilevel is the residual income, because each person who enters and continues to consume each month becomes your residual income.
Affiliate Programs: There are affiliate programs that are also residual, which pay each month as long as the person remains a member or subscriber of a service.
On the other hand, you have all your systems running, then it becomes residual because each month you generate sales through the same systems that run and work the right way.
Multilevel: It is assumed that when entering a person, you should spend time (your time) to train and support the person so that that person can enter more people (the same as you must do), so that your business grows, this is it’s called duplication. This is how the levels should be filled.
You are supposed to have an X number of fronts (or people in your first level, the amount varies depending on the company), so if you must have 2, the next person should have 2 others and so on. There are companies that require 3 front, 4 front and other as many fronts as you can.
Of course it is very difficult for everyone in your organization to put the necessary fronts, which is why organizations rarely pay everything they should pay (that’s where the conditions come in).
To top it off, people do not tend to last long as members, so you’re practically always looking for prospects.
Affiliate Program: Here you also have to be looking for prospects all the time, the difference is that you already know from the beginning, you do not stay with the idea that filling the frontline is over.
On the other hand you DO NOT have to dedicate time to your organization (duplication) because it is not necessary, you simply follow your path of looking for more prospects. Achieving duplication really is a time thief.
Multilevel: Normally it pays a commission that varies from 20 to 50% on the first purchase of the person and from there begins to pay a percentage less, for example a 2 to 5% of the purchases that are repeating the people of the organization (if they follow the rules)
Affiliate Program: Usually pay from 50 to 75% on the direct sale of the product. If the affiliate program is recurring, you will earn 50% each time the person pays the membership or service.
Multilevel: Many companies have restrictions on your business: some do not allow promotions on the internet, others do not allow you to be in another multilevel program, so that you can only manage a company. I have heard of people being expelled for promoting another company, even though they are in different market niches.
Affiliate Program: You can promote ALL affiliate programs that you want, even if they are competition from each other.
So it is, in fact, it is practically a norm that if a person does not buy “x” product, you offer the “y”, then the “z”, or even if you buy the first one you offer the others, this increases your opportunities of making money, and commissions.
Multilevel: Typically, companies include the necessary training to develop your business.
You also have a person (or more) who supports you.
Affiliate Program: The training you must take on your own, paying for yourself. You work entirely on your own.
Multilevel: You must pay the company a more or less strong amount (varies from 300 to 1,500 dollars) to belong to it. For that investment they give you product and sometimes some systems.
Affiliate Program: You do not have to pay anything to the seller, simply register as an affiliate.
Which is better?
Here is where I will stop, I leave it entirely to you, what I wanted to achieve was to explain the differences between the two business models.
In PERSONAL I made money with both forms, although my main income has always been affiliate marketing.
BUT I want to emphasize that affiliate marketing is a very lonely field, and if you like socializing a lot, then multilevel may be the best thing for you.
You may prefer multilevel, or both!