Have you been online and noticed all the ads and “buzz” about multi-level marketing, affiliate marketing, or joint venture (JV) marketing and wondering what the difference is? These three terms alone are everywhere, especially when it comes to generating income online, and are synonymous with the term Network Marketing, where we all “hook up” with each other to make sales conversions.
There are many confusing terms and explanations. Here is my point of view.
Multi-level marketing can also be called direct selling businesses. Some of these that come to mind are companies like Amway, Mary Kay, thirty-one, and Tupperware. These companies build their businesses by hiring independent sales associates or consultants to join the “team” below them.
The associates, in turn, recruit others to sell the products and also recruit consultants. Your commissions are paid on a tiered scale. The amount of your pay depends on where you are in the company and how many recruits you have under you. The higher his level in the company, the greater the percentage of commissions he assumes on his sales and on those associated with him.
Some may mistake MLM for a pyramid. Here’s the difference: MLMs have a legitimate product to sell you and they have low enrollment fees; a pyramid has high enrollment fees and does not have a product to sell to you. Also, the pyramids are illegal.
Affiliate marketing brings to mind companies like Amazon, ClickBank, Google AdSense. These types of companies have established sites with already established vendors, where you can register as an affiliate, promote vendor products, and receive compensation for doing so.
Joint Venture products are reminiscent of companies such as Dow Corning (Dow Chemicals and Corning), Sony Ericsson (Sony Corporation and Ericsson Mobile Phones). With joint venture marketing, you team up with a partner to develop and / or promote a product. Another term that is used is “co-venturing.” These companies share expenses, income and assets.
Some say that MLM’s, Affiliate and JV Marketing are the same. I feel like there is a slight difference between the three. Again, this is my opinion.
Remind:
- With MLM you are recruiting associates or consultants under you, while selling products.
- With affiliate marketing, you are taking a product that has already been developed and helping someone else promote it, while sharing commissions on the product sold.
- With JV Marketing, you team up with a partner to develop, promote, and sell your product, while sharing expenses, income, and assets.
- All of these can fall into network marketing because you can “network” with others to achieve your results.
Whichever marketing strategy you use will depend on your individual gifts and preferences. Now that you know the differences, find the ones you like and start generating income. There are more opportunities than you can imagine.