Is Wealthy Affiliate an MLM?
Ummmm, nope!
Wealthy Affiliate teaches affiliate marketing, which is different from multi-level marketing.
The two business models are similar in that we can earn commissions by referring people to a product.
Where MLM's differ is that they also provide commissions on a "downline" or the sales made by people who signed up under you.
Wealthy Affiliate is not like that.
Here, we only earn commissions from sales made through our own referral links. We do not earn anything at all from the sales of members that we signed up.
We are also not required to promote Wealthy Affiliate itself. In fact, it's better if you don't in the beginning.
(I think it's much easier to learn the principals of affiliate marketing and be successful when starting with your own unique niche.)
Both business models are legitimate and legal and require you to approach them professionally to be successful, but they are definitely not the same thing.
Recent Comments
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It's unfortunate that Affiliate Marketing and Multilevel Marketing are even mentioned in the same breath. MLM is selling hope and a false dream - it's structured to collapse and only benefit the ones who started the program. In other words, it's a fraud.
Affiliate Marketing is a legitimate business model, with a legitimate product and customer. WA is the model to make it happen. Forget about MLM - it will lead you down the abyss.
Ted
Thank you for demystifying the difference between the two Kiersten. I totally agree, they are similar but totally different in concept.
Jerome
Another difference (at least to me) is that MLMs require a commitment to buy your own product and maintain a certain level of sales. Your success is often dependent on who you recruit as well as who is recruited by your downline. Products vary in quality and are often way overpriced in order to pay compensation and bonuses to reps.
In affiliate marketing - YOU CHOOSE which products you'd like to represent, how high or low the commission rate, and so many other variables. You're much more free to give an honest review of products that you represent.
This is only my opinion There are exceptions in MLM, and I'm sure anyone doing well in network marketing can give you a whole different perspective. Yes, it can be very lucrative, but requires an entirely different mindset. It's actually the same mindset any entrepreneur needs - well, it's that mindset on steroids and not really for me.
In the end - I very much prefer affiliate marketing. That's why I'm here at WA.
Good point about the minimums! They also may restrict what other companies you can be working with. I haven't come across any affiliate programs yet that say you can't also promote competing products.
exactly. In fact, I have incorporated more than one affiliate on my websites and have not had a problem regarding any conflict of interest. MLM usually requires full immersion. Even if you only intended to do it part time.
WA is a learning institution. There's nothing educational about MLM, except learning what it feels like to have everything you've built come crumbling down.
Affiliate marketing is a one person operation. No recruiting, no baby sitting un-motivated individuals trying to get them to do what they'll never do.
Huge difference.
Forrest
I've been involved in several MLM's, both online and offline. It all looks good on paper until you try to put it into practice. I've found that the biggest problem with MLM is the people in it.
These days, along side affiliate marketing, I help bring new inventors and they're inventions to the market place and get lifetime royalties in the process. Almost like "Shark Tank" on TV.
MLM is a scary word with their pushy coaches offering 'free' business courses. Happy I did not fell in their trap. I knew if I sailed through I would still be walking over several corpses because the model just does not work for beginners. On top of that, you need deep pockets.
By the way, I love your new name here. :) I remember starting here as 'Webmoney16.' We're are not allowed further changes, though. :)
Yeah, so many people get recruited into an mlm by someone who was also brand new and may not have been approaching it as ethically as they should have. Then the new person duplicates what that first person was doing...thinking that's how they will be successful. It's a shame really because some people can do very well with it (without annoying all their friends and family haha)
And yes! I was trying to be all semi-private with my original username and figured if I'm putting my first name on my websites, then I might as well do the same here too. It's probably good that we can't update it too many times or else it would get super confusing here with following people!
The last MLM I tried was being manipulative and tried to convince me saying, " which is easier: selling a million $1 sandwiches or one $1 million dollar license?" They ALMOST convinced me, but I knew I am wasting my time + heading towards DISASTER. I ran away faster than the speed they could chase me. Relived! LOL
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What you have is all true. It is too bad that most all MLM programs have been denigrated because of a few that are really scams.
The most reason one would have to be, I think: Herbalife.
Mickeyb
Yes, I have several friends with successful mlm businesses (one earning 7-figures a year) and love buying some of the products. Some are really very good quality and I'm happy to support those.
And yes, the scams taint the whole industry. It makes me sad to think I almost never tried some of the products I use because I thought too negatively of all of it.