Friday, January 16, 2009

MLM vs. Affiliate Marketing

Greetings, my friends. It's freezing here in Tulsa --
AGAIN. With the wind chill, it reminds of my cold winters
in NYC. I simply wasn't prepared for it this time around.
The good thing about Tulsa is that the temperature swings
madly this time of year and it promises to be sunny and 63
degrees by Monday. Go figure.

I wanted to end the week by responding to a follow-up
question from a subscriber who asked what was the
difference between MLM and affiliate marketing. Good
question.

As I described last time, making money in MLM is based upon
a combination of taking direct sales (buying and
reselling product) and then recruiting others to buy product
from you to resell to their friends and family. It takes
tremendous dedication and investment in time and money.
With MLM you want to get your business to a point where you
have hundreds or thousands of people buying and selling
product beneath you so you make money on multiple levels of
overrides.

Affiliate marketing is a horse of a different color. You
want to find a product that fills a need and that offers a
referral program. You register as an affiliate and they
provide you with a custom link which you add to your sites
and emails. When someone clicks on the link and makes a
purchase, you earn a referral fee. Some affiliates
programs pay only a few bucks, but selective high-end
products can pay hundreds of dollars in commissions.
There's nothing for you to buy or sell. All you do is
sign-up for free and start promoting. The more you promote,
the more commissions you earn. All you do is get checks. No
products to buy or sell, and no fulfillment issues.

So looking at these two, which would you prefer to get
involved in? Most would say affiliate marketing because the
risks are very low. Now the best way to promote products is
to buy them so you can see the quality for yourself and get
first hand experience with the product. Then you can write a
knock-out review and embed your affiliate links in the
review.

This is how CoolToolAwards.com works. I buy products with
referral programs and when people read my reviews and click
on the links, I get paid when they make a purchase. How much
money do I earn? About $25K a year -- passively. Not chump
change by any means.

You can learn more about how I achieve this success with
leveraging reviews with affiliate campaigns by going here:

http://www.rocketsciencerevealed.com

If you want to know which products are some of the best to
get involved with, you can read more here:

http://www.makepassiveincome.com/coreyrudl.htm

http://www.makepassiveincome.com/marlonsanders.htm

http://www.makepassiveincome.com/yaniksilver.htm

See if that helps you get started.

I also strongly recommend that if you have a product of
your own, you consider offering your own affiliate program.
I used Clickbank to recruit hundreds of affiliates to
promote EbookoMatic.com back in 2000 and they were
responsible for generating 23% of my income for close to 2
years.

You can learn more about these options here:

http://www.ecommerce-assistance.com/

Until next time,

Steven

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