In the world, affiliate marketing (or affiliate marketing) has become popular and brings a huge source of income for many people. However, in Vietnam, this form of business has only appeared in recent years, so many people still have limited understanding of it. In the article below, let’s ezFolio learn more. about this business. Is it multi-level marketing?
What is affiliate marketing
?Affiliate marketing, also known as affiliate marketing, is a form of collaborative marketing where participants will receive a commission if they refer customers to buy. To put it simply, affiliate marketing is referring to products and services to receive marketing commissions.
Viewing: What is Affiliate Marketing
Is affiliate marketing multi-level selling
?Although affiliate marketing is similar to multi-level selling in the form of both receiving a commission when referring customers to purchase. However, in essence, these two business models are completely different. Here are the differences:
1. Conditions of participation
Multi-level selling: Wanting to join must be through a referral from a previous member. Affiliate Marketing: You can freely join any affiliate program. This is completely voluntary as long as you comply with the commitments of the supplier.
2. Contribution fee
Multi-level selling: The multi-level model always “catches” participants with annual and recurring fees, money to buy products… Even if you can’t sell products, you still have to pay if you want to continue. is a member.Affiliate Marketing: Joining affiliate programs is completely free. You don’t have to pay any fees when you sign up
3. Buying Process
Multi-level selling: Customers can only buy products from the referrer. As a result, prices and origins are often unclear. Affiliate marketing: Customers have the choice to buy from a marketer or supplier. The price and origin of the product are clearly posted on the supplier’s website.
4. Pay by tier
Multi-level selling: True to the name, the multi-level model applies a multi-tiered payment method, also known as the pyramid model. In addition to receiving commissions from product referrals, members also enjoy a percentage of commissions from those they recruit into the system.
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Affiliate Marketing: Pays only in a single tier. You will not eat commissions from any other source, other than referring customers to buy products.
5. Offline and Online
Multi-level selling: Mainly selling offline and rarely selling online. Affiliate marketing: All are conducted online.
6. Marketing objects
Multi-level selling: Because selling offline, the main audience is relatives and friends because it is easy to access and trust. Affiliate marketing: Because online business is online, the target audience is everyone. from all over the product’s segment.
7. Law
Multi-level selling: Many countries do not allow this business model because of the consequences it causes to society.
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Affiliate marketing: Encouraged by countries, suppliers, and marketers because this is a healthy and effective form of marketing. Above are the differences between the two models of affiliate marketing and multi-level sales. . Hopefully the knowledge from this article will help you feel more secure when signing up for affiliate programs. Sign up for ezFolio’s affiliate program today to soon receive attractive commissions.
