Copyright (c) 2008 Soaring Eagle Companies LLC
There are significant differences between the multi tiered network marketing compensation plan and the affiliate marketing model.
These two models are very important and you must understand the way it works in order to make the most money out of it.
Let’s talk about multi tiered paid structure first.
Multi Level Marketing is a method of receiving compensation through different tiers of overriding commissions. The advantage of using multi tier compensation is that you get to leverage on thousands and thousands of downlines. Your direct downlines will be taking good care of the rest of the network if you play your cards right. But of course, it isn’t as straightforward as it seems. Building a structure like this takes a lot of time.
On the other hand, affiliate marketing and joint venture promotions are very straight forward and you can get paid a huge commission – about 40% to 80% if you were to give sales to someone else. A ‘super affiliate’ is able to generate thousands of commissions by himself. You can build a list of thousands of subscribers and with a single email blast; you can get the word out to all these people and make thousands of dollars in a couple of days.
Let’s look at the disadvantages of each structure now.
The problem with the multi level structure is that if all the downlines are not generating sales, you will be the one doing all the work – you might even need to do extra work and give ‘spillover’ for your downlines. On the other side of the coin, you do not get to leverage on your own team of affiliates if you are in affiliate marketing.
So the best way to get the best of both worlds is to combine the two models and create the ultimate Internet network marketing synergy!
Firstly, you can promote an online MLM program. People still get the benefits of making money from a multi tiered structure. But when you (as an upline) start training your affiliates to build a mailing list, everyone will be your joint venture or JV partner. When one releases a product, everyone else will come running and they will promote your product as an affiliate! And because everybody are in the same network, the loyalty is stronger as everyone is more willing to help one another because they are in the same company.