Intro.
Multilevel marketing has been an opportunity for anyone to join since around the 1930’s, but became a more popular activity around the 1970-1980’s. Since then, companies have been enjoying the fruits that this kind of business model brings them in monetary terms.
I will declare now that I am not a fan of MLM’s, never have been. I’ve had people attempt to lure me into various schemes, with no luck mind you.That being said, hundreds of thousands of people have tried to make money this way, with limited success.
Now that the coronavirus has arrived in a big way, what does that mean for those that have joined an MLM scheme. What happens if you’re an MLM consultant in 2020 and you find everyone has been told to stay indoors?
I’ll touch on what the impacts may be, and advise a more sustainable model for future catastrophes.
The MLM Consultants Job
Boy, am I glad I never joined an MLM company. I know there have been some people who have profited from multilevel marketing opportunities in the past, there’s always exceptions to the normal.
This business model is primarily created for consultants to visit potential customers, and promote the company’s products. The best way to promote is to physically explain how their products work, with actual demonstrations.
House parties are the most common form of meeting point, as they are low cost and easy to access. Usually the consultant will say they are ‘so excited’ to be demonstrating their product, so you can purchase this amazing…whatever. In reality, they are begging you for a sale so they can make a measly commission.
Everyone Stay at Home
We all know that the coronavirus has shut down just about every country, with some taking more extreme measures than others. Borders have been closed, only essential services remain open and we’ve all been told to stay indoors.
This means no parties, no gatherings and depending on your government, no work or school. Working from home is the desired approach currently, so the virus cannot reach us through touch.
I even had a beer with my neighbours on the front naturestrip, and felt guilty doing so, even though we were conscious not to get close to each other. We’re virtually in total lockdown, with only the necessity for essentials luring us from our homes. Does that mean beer? Ah, yep, if they’re open!
It’s really difficult to get our heads around, but at least I can work from home. However, those that have joined MLM companies have reason to panic, and I guess you’ve figured out why
The MLM Dilemma
So, what happens if you’re an MLM consultant in 2020 and your main source of income is through company commissions? Keeping in mind that house parties and meeting people face to face is the main method of selling these products.
No longer will this be the case for probably 6 months or more. It’s not possible for any of these house parties to exist because we can’t have the opportunity for the virus to spread. So where do MLM consultants make their money now?
I do know that some MLM companies provide a sub-domain website that allows for online sales. Basically, an extra fee is usually required to go towards web hosting. This is a farce anyway because it’s just another way for the company to gauge you out of money for a poor single page website.
At least it would be some sort of comfort knowing a few sales could be made, but nowhere near enough unless you worked hard on SEO (search engine optimization). This is what helps rank your website in the search engines such as Google.
So, I’d like you to tell me which opportunity presents a better option.
MLM or Affiliate Marketing
I’ve explained how the MLM opportunity presents, and what makes them vulnerable, especially in times of crisis. Now let’s take a look at how affiliate marketing works and why in my opinion, it’s much more sustainable.
Affiliate marketing works by promoting other people’s products, generally companies items or services. For each sale you can initiate, you will receive a commission.
For example: Let’s say you create a website about technology, specifically laptops or pc’s.You write information that can help your audience use these devices. To monetize your website, you use the affiliate marketing model.
- This starts by signing up to different companies’ affiliate programs. Let’s go with Dell or HP as an example. Once you sign up with their affiliate program and have been approved, you can promote their products on your website.
- You will be given a unique affiliate link that you can attach to the product on your website. When somebody clicks on the product, they will be taken to the store to make a purchase. Because your affiliate link has been clicked on, this alerts the company that YOU initiated the sale.
- If the person ends up buying the product from the online store, you make a commission. In fact if they buy anything else in the store on the same visit, you’ll make commissions on all products.
The potential of this model is enormous as you can get anyone from around the world to view your promotions. The internet has provided everyone with the same opportunity to make money online, including in the affiliate marketing space.
Profiting From MLM's Are No Longer Viable
A Different Model Of Income Can Earn You Thousand$ Monthly
Which Is Better
When I compare MLM opportunities to affiliate marketing, it’s a ‘no brainer’ to go with affiliate marketing. Here’s a few things that need to be considered.
- With MLM’s, you’re stuck selling the same products to people. Affiliate marketing allows for selling from as many affiliate stores as you like.
- MLM’s require you to demonstrate products at house parties. Affiliate marketing lets you work on your laptop.
- You can travel anywhere in the world as an affiliate marketer. With MLM’s you require a more stationary lifestyle.
- You only need to promote a product once to have it online forever as an affiliate marketer. MLM consultants need to show their products at every house party.
Obviously we all have our own opinions, and you may choose the MLM way of life. I do believe only certain people are suited to multilevel marketing, whereas so many more are suited to affiliate marketing.
What Next?
If you’re out of a job and have no idea what to do next because jobs are scarce, you could do a lot worse than learning how affiliate marketing works in detail. The concept is simple, promote products, make sales and earn commissions. However, effort is required to be successful.
Having said that, if you’ve got time on your hands, you have nothing to lose. It’s possible to learn much of the information from the internet, including YouTube videos. However, the correct information can be harder to find. Everyone has an opinion, and will try to promote their product as the best.
I can tell you that there are only a handful of ideal courses around that are worth the money. My personal favorite is where I’m still a member, it’s called Wealthy Affiliate. The reason I find them the best by a long way is because the value for money is insane.
The membership fee includes website hosting, all training, tools, support and the best community of like minded people of over a million. When you consider that you’ll have to pay for web hosting anyway, on top of whatever other course you choose, this is all included in the WA subscription. What is also handy, you can check it out for FREE.
I’ll also give you my second favorite course. It’s called Affiliate Secrets by Spencer Mecham. This course has a one off fee, so the cost is obviously larger up-front. I’ve written a review on Spencer’s course, and it’s brilliant. He really knows his stuff and is pleasant to listen to.
A Few Notables To Take Away
Here’s a few points you may want to take away from this article.
- MLM opportunities will struggle to survive in 2020, and maybe even 2021
- Unless your MLM company has given you a website, good luck.
- Affiliate marketing offers a much better alternative
- Approximately 1.8 billion people purchase goods online
- Over 80% of companies have an affiliate program
- Promote a product once online, and it can make sales for years
I hope this article has given you a better understanding of why so many people don’t like multilevel marketing opportunities. You’ve also got a better appreciation for what affiliate marketing is, and how it works. If you’d like to learn how to get started, read how to start affiliate marketing from scratch.
Like many people, I struggled in my early attempts to make money online. It's really frustrating when you try product after product, searching for that elusive opportunity that is really genuine.
Eventually though, I learned how to achieve success in the online world with my own website. This website was created to show others how to do it. I direct people away from the poor opportunities and advise the good ones.
But the simplest and least complicated is [Learn more...]
Disclosure: Links in this post may be to our affiliates; sales through affiliate links will not cost you any more. More info at my disclaimer page
The opinions in this article are solely mine, are are not intended to offend or discriminate. All information in this review has been researched on the public domain of the internet.
I never thought about how the pandemic may be negatively impacting MLM consultants. I have come across a lot of MLM programs and I just could not get myself use to just promoting one product. The only successful MLM programs I came across were Amway, Avon, and MaryKay. However, as you mention if you can’t meet people in person to demonstrate those products it makes it kind of hard to get people to sign up as a consultant and or buy the product.
I like how you made the distinction between Affiliate Marketing and MLM Marketing because a lot of people can’t tell the difference. I would say the great thing about affiliate marketing is you are reviewing a product for a potential buyer to help them make the right decision when buying the product based on your review. Affiliate marketing is golden right now because the pandemic is forcing people to shop online more. There is no salesperson to ask about the product before buying the product. Also, some MLM programs require you to buy the product before selling it. This means you may be investing money in a product that you later find is no good. Great post and keep up the good work!
Thanks for your kind words Moody
Having that personal contact to sell is a nice option, but doesn’t guarantee a sale. And with all these shutdowns, it’s hardly feasible right now. So affiliate marketing has become a great choice, and seems to be booming.
I forgot to mention, your article on starting affiliate marketing from scratch was extremely helpful. You’ve laid out exactly what’s required to start and progress. Anyone looking for what’s required to get started in this field should read this article. This is a much better opportunity that being an MLM consultant, hands
Cheers
Glad you got some benefit from that article Nicky.
I love your content on the MLM systems. You are so right only a few make money the rest of us plough money into the MLM system for the very little reward. The work involved in trying to sell the product with all the hype is energy sapping. I have tried it 3 times and I vowed no matter the promises I will not go down that road again. I love your website and how you have laid it out, I wanted to spend time on your website to read more of your interesting articles. Thank you for the positive review on affiliate marketing as that is what I am currently implementing also through WA. I agree WA is the best.
I appreciate your thoughts on your own MLM experience Nicky.
You’ve basically explained what many MLM consultants go through, especially with the sapped energy you’ve pointed out.
Good for you going down the affiliate marketing route. I hope you’ll be a success.
I agree with your opinion about MLM. Never been a fan of that since I have first heard about it. And affiliate marketing on the other hand, seems like a far better way from an audience perspective too since nobody is forcing anyone to BUY their product. and as an affiliate marketer, it suites the lifestyle I like. Given some efforts at the beginning, affiliate marketing is much better option for an online business.
Appreciate your confirmation of my article Phalguni.
Exactly as you say, with affiliate marketing, you’re not forcing anyone to buy. You’reSimply showing people and giving them an explanation of a product and service so they can make their own informed decision.
I am too, not a big fan of MLM business models. I find that it is too cut throat and the only people that actually benefit from it are the owners, just my opinion. The MlM consultant sounds just like the B2B that I used to do back in the days but instead of going to the businesses you host it yourself and invite the potential buyers, sounds like Mary Kay. I say that Affiliate Marketing wins any-day. All you have to do is get yourself educated and find the program that you like to promote and you are all set.
It seems you’re backing up my thoughts Nuttanee, that affiliate marketing is a much better and more diverse opportunity than the MLM route.
Sure, it takes a little time to gain some traction, but once off and running can produce a great income for years to come. Getting educated at somewhere like Wealthy Affiliate will only advance your chances of success.
Your article is right on. Because the MLM income is primarily from recruiting, this is a hard time for that type of program. I have very successful friends in an mlm that delivers utilities and their income dropped by a huge amount. Affiliate marketing, as you describe it, makes sense now. Its is done from home. There is no inventory, There is no recruiting. I have been an affiliate marketer for about 3 year. I hope you article convinces lots of people who have been interested in mlm’s to move to affiliate marketing.
Appreciate your comments Anastazja, it’s interesting that you know of people in this exact position.
I also know of people in the same situation, and their income has reduced dramatically. The great thing is that if you poses the skills that have made you money through selling MLM products, they can be transferred to affiliate marketing.
It just takes a bit of initiative by setting up your own online website, add products and you’re away.