Multi-level marketing (MLM) and affiliate marketing are two popular strategies used for earning money online, but they operate on different models and require distinct approaches. MLM typically involves recruiting others to sell a product, while affiliate marketing focuses on promoting products and earning a commission for each sale generated through your referral. Understanding the key distinctions can help you decide which model is best for your goals.

MLM involves building a network of distributors who each make sales and recruit new participants. The income is not only derived from personal sales but also from the sales made by those within your network. This creates a hierarchical structure that allows for potentially larger profits, but also higher risks due to the need for constant recruitment.

Affiliate Marketing works by promoting a product or service, and earning a commission for each sale made through your referral link. Unlike MLM, there’s no need to recruit others or build a team. This model is more straightforward, and the income is based solely on the sales generated by the affiliate’s marketing efforts.

  • MLM: Requires recruiting others
  • Affiliate Marketing: Focuses on personal sales and promotions
  • MLM: Income based on both personal and team sales
  • Affiliate Marketing: Commission based on individual sales
Aspect MLM Affiliate Marketing
Business Model Recruitment + Personal Sales Personal Sales
Income Source Team and Personal Sales Commission on Sales
Risk Level Higher Risk (due to dependence on recruitment) Lower Risk (focus on sales)

"While MLM offers the potential for exponential growth, it often requires constant recruitment and a significant upfront investment. In contrast, affiliate marketing provides a more stable and risk-free income stream, focusing purely on sales without the need to manage a team."