This is a question that often gets asked. Which is better? Affiliate marketing or MLMs. I’m not against MLMs in general. They can often be fun and if you become successful, you can make some good money. But let me tell you why I think affiliate marketing is better than multi-level marketing.
How Does Multi-Level Marketing Work?
I’m going to keep this basic. When you join an MLM if you want to make money, you need to find people to join under you. Depending on how the MLM is structured, you may need to only find 30 – 40 people or you may need to find 1000s.
You don’t need to find them all by yourself, of course, but you will need to have a full downline to make the most money, and this may take months, years, or never. Below is an image of what an MLM looks like.
How to Build Your MLM Downline
Say you are in an MLM where the structure is 3 x 6. Now remember that most people don’t join MLMs because they want the product, they join because they want a steady income, so the best MLM should have a monthly subscription.
So, I need three people in my downline to break even. I get these three people reasonably quickly. Now the three people under me need to to get their three people (nine in total). To guarantee that my three will stay, they need to get their three within a month, so they are not paying out of their own money.
Yes, it sounds pathetic that most people will not invest six months of money and time to build a business that might bring in $1000s a month, but most people trying to make money online need instant gratification, like children.
How Much Work Do MLMs Require?
A lot! MLMs require real work from everyone involved. But sadly people are generally lazy, and online that is even truer. This is another reason why affiliate marketing is better than multi-level marketing.
Most people want to make money online because they hear you only have to work a couple of weeks, and you can then move to a condo on a beach somewhere. These people are lazy in the real world and lazy online.
So, now you end up having to recruit for the three people under you. Say one of them works, you still need to find six people and because this is going to take some time, one of your three drops out. Now someone else moves into the vacant spot.
You keep recruiting, but others drop out. True, some do the work, but most couldn’t care less. They think that if they get a good downline they make money. If they don’t get a good downline in a month, they quit. They may have invested $20 (or whatever) but so what? A $20 gamble to maybe get a good monthly income doing nothing is worth it, right?
The Never-Ending Cycle of Being in an MLM
Even if there is a pay-it-forward system, and all you have to do is pay for three people to join, and your downline does the same, and their downline does the same and so on, and you’re all guaranteed to earn lots of money, this still doesn’t usually work because people are not only lazy, they’re also not interested in helping others, even if they’ll benefit directly.
Tell people that all they need to do is pay three people in, and then get that three to pay three people in, and everyone will be earning lots of money, and most people will still do nothing. This is very frustrating and yet one more reason why affiliate marketing is better than multi-level marketing.
Lazy people like MLM because they think their upline will find them their downline. The problem is most people are thinking the same. This means someone in the upline is having to recruit hundreds of people a week to keep the matrix going because no one in the downline is doing anything.
It’s Not You – It’s Everyone Else
Don’t get me wrong here. I’m not calling you lazy. You could be the hardest working person online. But if the people below you won’t work, it doesn’t matter how much you work, you will never be able to keep your downline full on your own.
This is why I advise you to forget MLM and go for affiliate marketing. If you fail at MLM, it can often be because the people you’re depending on to work, are doing nothing. In affiliate marketing, you are the only person you’re depending on to work. If you fail, it’s because you didn’t work hard enough or didn’t get properly trained.
If you’re still looking for something to do, my advice is to go for ClickBank University. It’s great training done by seriously successful affiliate marketers and at $50 a month, you won’t be breaking the bank to do it.