A lot of confusion has crept up over the myriad of marketing ventures in the marketplace. At first, there was the contention between multi-level marketing and Pyramid Scheme; now it is between multi-level marketing and affiliate marketing. Many consumers are questioning the differences before venturing into one or both for generating income.
Effective Income Generators
Both affiliate marketing and multi-level marketing (MLM) offer great business opportunities at one’s own leisure to generate lucrative income. There are certain similarities which may confuse consumers and marketers between the two business programs, but there are distinct differences which distinguish one from the other.
Both business options are considered as established and effective income generators for those seeking extra income on a part-time basis. Both business programs are well structured with modern facilities and tools to help appointed marketers in succeeding. Many marketers in both business programs started out on a part-time basis to end up full time in the programs before reaching a level in the program with a comfortable income generated to relax a little more in life.
This is possible with the right tools and strategies used in building up the business from scratch. Both affiliate marketing and MLM businesses can be undertaken by any mature consumer who is focused on their business objectives and direction for success without being deterred by the challenges and difficulties along the way.
Both business schemes are well set up by established companies that offer a clear structure in modus operandi, products and service promotions, payout plans and customer support. Each business entity is poised for growth with a constant recruitment of marketers who are appointed to promote the latest products and services that would boost company image and brand. The program’s marketers are in control over the quantum of income generated with the volume of sales made on the company products and services offered.
Pros and Cons of Affiliate Marketing
Different marketers may wish to consider affiliate marketing over MLM business option. However, there are pros and cons of each which every marketer should compare and evaluate carefully before venturing into.
Affiliate marketing does not require a personal website or products to generate income. There is no need to provide customer services before, during or after sales on product, services or technical issues. Commissions are accorded by affiliate networks when the affiliate products or services are successfully promoted to potential leads. The links to these affiliate networks are provided free for a quick startup on affiliate marketing programs without the need for business acumen or high capital.
However, affiliate marketing has certain drawbacks; ClickBank has attracted more than a million affiliate marketers to create an intense competition in the marketplace. Attracting potential leads to a website is easy while it is still a great challenge to compel consumers in exercising their purchasing power.
The slow ROI with high levels of effort and time invested in the business can be discouraging. Better services for before, during and after purchases must be activated to ensure continual sales that boost business image and brand. It is crucial to follow up on any sales and potential lead with the right marketing strategies, opt-in features and constant communication with customers.
Pros and Cons of MLM
Multi-level marketing exists for years with many variations cropping up from time to time enticing many consumers; both veteran and novice marketers. Some have succeeded while many have failed unless the right tools and elements are exploited to reap the harvest.
MLM businesses can succeed when the right crowd is targeted; this is not difficult with the emergence of new and advanced technologies, providing the best of tools and resources to market MLM products in half the time and effort compared to yesteryears. The easy implementation of MLM makes it very attractive to get started. Recurring income is possible, even if residual but with extra effort and better marketing strategies, greater income can be enjoyed.
However, the other side of the coin of MLM programs may bring down a marketer easily and quickly. Time and effort must be put in to develop the brand and reputation of the MLM business once it is set up. Waiting too long can cool off the passion for establishing the business in the marketplace as well as allow other competitors to arise and overtake the market position.
Proactive marketing strategies are required to draw in more traffic for a higher sales conversion. An MLM business grows when the depth grows; hence, more recruitments of down line marketers are required besides personal sales.
