Many people are looking for real ways to make money online. Two of the most common ways of making money that people consider are MLM & Affiliate Marketing. This is Part 1 of 2 videos giving detailed information about MLM and Affiliate Marketing so anyone who is trying to decide which one they would like to choose can make an educated decision based on the information given in this video. In this video, I discuss mostly MLM and in the second video I focus more on Affiliate Marketing. If you don’t know, MLM stands for Multi Level Marketing. It’s called Multi Level Marketing because you recruit people into your business and the people you recruit also do the same which creates income on different levels beneath you. I’m a 16 year veteran of the MLM industry and it has been good to me in times past. But is it still a good way to make money now? Watch this video to hear my discussion about it. Take care & God bless you in your Decision. Excited About Changing Lives, Ivan Harris, Sr. “The Value Creator” (228) 697-7751

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[I:http://www.affiliatemarketerarticles.com/wp-content/uploads/2009/10/ArtBasmajian4.jpg]It is not simple to pretend to be a good networking company, but it is doable, and some are so good at it that they can seem like the best multi-level marketing companies you would ever have the choice of joining. They offer massive payoffs with virtually no work needed to be done in a particularly short time and at minuscule investments re liquid capital. It sounds like a good plan – only it’s not. And it is not even legal.

The best way to Tell One from the Other

There a few things that legitimate MLMs have in common with pyramiding schemes, explaining why the really good ones can pass off as the best multi-level marketing companies :

1. Both business structures depend on a good-sized network to function well and bring in profits, so recruitment truly is necessary.

2. The basic organizational structure is also the same – upline, downline, and affiliates.

3. The payout system is comparable. You get commissions from your downline’s sales and you give commissions to your upline.

But if you look closely, you’ll see the slight differences in these aspects :

1. While the best multi-level marketing companies will encourage you to build up your network, your profits will rely often on your sales and your efforts, not your downline’s. Additionally, you actually have a product to sell that has market valuation and practical use. The recruitment process is, therefore , just a means to an end and not the focal point of your business plan.

The main reason why MLM firms are built is to deliver products in the most productive manner possible without the need to go through nonessential parties and lose overhead costs and operational costs. The net is reasonably adept in providing the medium for this endeavor, and that’s the reason why MLM companies are flourishing.

2. Pyramid schemes are downline-heavy while the best multi-level marketing companies would have a better-balanced organization. Again, this is because pyramid schemes are out to ‘funnel’ the profits from the downline to the upline and not share it all around the structure in proportionate means.

If the company that you’re looking at joining is giving you obscure answers about their products, if you don’t pay their enlistment fee first, or if it looks like their products aren’t marketable ( like say, overpriced gold coins ) don’t sign up. It may not be a pyramid con, but it won’t be rewarding for you either.

3. In much the same way as your profits will come from your efforts, your downline’s efforts will accrue to their benefit first. Even if your downline stops immediately after you, they will still be able to earn income as the profits do not rely on their recruitment efforts but rather on their selling abilities. And this is what makes the best multi-level marketing companies work. There are no piggyback rides on the lower tier’s efforts, and anyone who doesn’t like hiring can still make cash nevertheless.

In the end, pyramid schemes will always reach a saturation level, and the ones at the lowest tier will suffer the most. The best multi-level marketing companies, on the other hand, will always strive to give you a long and fruitful business.

Concrete Examples

There are lots of businesses that have flourished with the MLM structure or system. Look at corporations like Avon, Tupperware, Sara Lee, and Mary Kay. You’ll notice that these firms have big name brands and quality products to sell, and you do not need to enlist members to earn money from their business plans. These are the hallmarks of the best multi-level marketing companies, which is why they’ve been around a long time.

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Understanding Affiliate Marketing

Affiliate Marketing is a online name used to portray the promoting of online businesses by the means of affiliate programs and the promotion of these products on websites and it dates back to the mid 90’s.By doing this the merchant pays the affiliate (also known as the publisher) a decided percentage of commission based on the amount of business their website brings the merchant company. Some companies such as Clickbank, Paydotcom and Shareasale typically have set percentage rates for affiliates which can be up to 75% for some products. Some consider affiliate marketing to be a form of revenue sharing or another term commonly used is commission based advertising.

In the early days of affiliate marketing, it was associated as another variety of network marketing or multi-level marketing (MLM) and as a product of this misconception allot of online companies made the choice to use the term performance marketing to stay away from any relationship to affiliate marketing. This was also a predicament for affiliates as well, individuals had a inclination to look down on everything that even seemed like multi-level marketing.

Over time and with much diligence from those that are now recognized as super affiliates it has turned out to be the most cost effective way for online business to market their products or services online as it is very efficient in the fact that the affiliate has to do all the work to make the sale. So as a result of this, many online companies especially those that embraced this form of marketing in the beginning owe a tremendous amount to affiliate marketing as a perfect example just take a look at amazon.com and the way it has become the done thing for online businesses to include affiliate marketing in many of their internet goals to promote their products or services.

So Are There Many Benefits To Becoming An Affiliate Marketer

The concept of revenue sharing have been around for quite a while, long before the internet. But the idea of affiliate marketing has taken it to new levels, and become a indispensable form of advertising and bringing in business for all types of e-commerce. Internet merchants find affiliate marketing highly advantageous due to the fact that it presents slight to no risk both for the merchant and the affiliate. The way it works is that the affiliate makes a form of commission or fixed amount based on the number of sales the affiliate brings to the merchant, either through on-line links on the affiliates website ” or through email, blogs, rss feeds and many other kinds of on-line communication.

Some merchants (only around 1% of affiliates) use a CPC payment system but this is now starting to grow as a viable form of money generation from main stream affiliates by using the CPA marketing networks, which simply means that the affiliate earns some form of commission every time a internet searcher clicks on an advert on their site or when you send out an email with a affiliate link.

Nonetheless in the past and mainly due to the various “blackhatters”and “fraudsters” on the internet that were taking benefit of this procedure by way of creating such stuff as (ad-ware, sending spam, or useless indexing sites) this mode of reimbursement is now allot more regulated and even to the degree of having IP addresses tracked and accounts canceled if you are generating what is considered as a fraudulent clicks and for many in the past this form of advertising had become too risky for merchants to use.

What Are Some Of The Distinctive Forms of Affiliate Marketing

There are a few separate ways that an affiliate can earn commissions online. Firstly you need to decide which of these is correct for you and then join the merchant affiliate program this is so any commissions can be established through any referrals from your affiliate link to the merchant, Here are a number of campaigns that are at this time utilized online today, however you need to read the terms and conditions of each affiliate program you wish to sign up to.

1) Pay Per Click Marketing is in basic terms a strategy of showing advertisements on your affiliate site and you are paid when a customer clicks on that website.

2) Sending Emails To Your List – sending legit emails to your website opt-ins with your affiliate link embedded “Spam Is Not Tolerated” make sure you study the TOS of the affiliate program before doing this.

3) CPA Marketing when a person registers with a certain site, be it for a newsletter or subscription, free offers from other companies are represented and advertised.

4) Clickbank, Shareasle, Paydotcom are all affiliate marketing companies they have many thousands of online products and services for you to promote from as well as being free to join. Various programs even comprise a multi-tier or what is called a recurring commission gateway set up.

Hopefully our article has assisted you to understand more about affiliate marketing and we would like to wish you well in all of your undertakings online.

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