I’ll always remember the various different Avon ladies coming to our house & when my friends all signed up to distribute Juice Plus but I never really understood it all until recently. The same as my confusion with certain bloggers I was subscribed to having multiple (very annoying) flashing GIF adverts for other companies products splattered across their websites. I’d always wondered what they were, how they worked, how people earned an income off them & why they were such a huge deal. In this week’s blog, I’ll explain the basic differences between affiliate marketing & multi-level marketing.
Multi-Level Marketing is made up of two different aspects:
-‘Marketing’ which takes place when a product or service is passed from the producer to the receiver.
-‘Multi-level’ which refers to calculating salaries for distributors who are responsible for delivering products and services to customers.
Multi-Level Marketing generally doesn’t include TV commercials or ads and products sold via multi-level marketing won’t be found in shops either. Their promotion relies on word of mouth and independent distributors.
This kind of marketing allows independent distributors to build their own selling networks or teams. In addition to earning commission on selling the physical products or services, they can gain additional money for increases the number of people in their teams. I’m sure you’ll all have had someone you know to ask you to join their team at one point of another!
Examples of this type of marketing are Avon, Juice Plus, Intellitravel & Monat Haircare.
Affiliate marketing is a business deal which involves 3 parties:
This type of marketing takes place when affiliates earn income for promoting merchants’ products and services. It’s a great way to earn additional money for bloggers and influencers. For example, they may write reviews of products and publish them on their sites. They get unique ID which tracks all the traffic they send to merchants website. When visitors perform a desired action on merchants’ sites (subscribing, buying, signing up for a newsletter, etc.) the affiliate will get a commission. It’s that simple.
A popular example of this type of marketing is Amazon’s affiliate program.
So there you go! Affiliate marketing & multi-level marketing explained simply, with no tears!
Âme Social is a creative & digital agency based in Plymouth focussing on all things digital marketing! If you are an SME who needs a hand with your online presence contact us here.[/vc_column_text][/vc_column][/vc_row]