Affiliate Marketing vs Network Marketing (MLM)
MLM and affiliate marketing are two completely different ways to make money online.
MLM stands for multi-level marketing or as some call it “network marketing”, operates by selling products from other companies for commission.
This type of business opportunity may sound good, but there are a lot of downsides that come with it.
The most significant downside is that the vast majority of people who get involved in this type of business will not earn any money at all.
On the other hand, an affiliate marketer earns commissions based on sales or leads they generate from their own website, blog, social media accounts etc., so they have full control over their success!
It’s also worth noting that many MLMs require participants to pay an arbitrary startup cost, which can sometimes be extremely expensive.
Although there are many reputable MLM opportunities, the truth is that only a small number of people will actually succeed in this type of business opportunity.
It’s also worth noting that some people think that affiliate marketing is just one big pyramid scheme, but it absolutely isn’t!
The key difference between MLM and affiliate marketing is that with network marketing aka mlm marketing , you earn a commission from selling products or services to other people.
In a nutshell, this type of business involves recruiting others in order to generate a profit from their downline .
On the other hand, Affiliate Marketing is completely different because it’s when someone promotes another company’s product on their own website or blog, and they earn a commission from the sales or leads that their site generates.
MLM’s operates by selling products for commission; on the other hand, affiliate marketing is when someone promotes another company’s product on their own website or blog, and they earn a commission from the sales or leads that their site generates
Multi Level Marketing Company > Arbonne
Arbonne is a vegan based health and beauty MLM company that operates through the multi-level marketing business model. It was founded in Switzerland in 1975 by Petter Mørck. Arbonne’s headquarters are located in Irvine, California. Arbonne has been in business for over 40 years and is known for its commitment to quality and science. Their products do not contain chemicals such as parabens and no GMO.
A distributor or as Arbonne calls them “independent consultants” can choose to run their Arbonne business online (through your own personal website which Arbonne provides you) or offline.
A big misconception is Arbonne requires you to build a team, so you will have to recruit people. This is not entirely true.
Of course the more active people you have on your team who are selling Arbonne products and or the business opportunity, then you will have a good shot at increasing your earnings potential!
Pyramid schemes – what you need to know!
Pyramid schemes are illegal in the United States, and participants can face serious penalties.
A pyramid scheme is a business model that recruits members by promising them payments or services for enrolling others into the scheme, rather than supplying products or services.
In a pyramid scheme, participants attempt to make money solely by recruiting new participants into the program.
The three elements of a typical pyramid scheme are:
1. The participant invests some amount of money (usually their own) in return for which they receive either goods, services or the right to sell an intangible product;
2. New recruits are then enticed to invest in return for that same right;
3. The “product” is the right to recruit more distributors into the program.
Is Arbonne a pyramid scheme?
Some people argue that Arbonne is a pyramid scheme because it operates by selling products from other companies for commission.
Arbonne is a network marketing company, which is different than a pyramid scheme because participants are not only recruiting new members to make money, but they are also supplying products or services.
The company has been in business for over 40 years, investigated by the FTC, and generates about $500M in annual sales, and is rated A+ by the Better Business Bureau.
Think about it can a company in business this long, which has a A+ Better Business Bureau rating, investigated and cleared by the FTC, be a pyramid scheme? The answer is clearly NO, Arbonne is NOT a pyramid scheme.
Why network marketing is better (MLM) option than affiliate marketing?
Affiliate marketing is a great way to make money, but network marketing is a better option, because it offers more opportunities to make money.
With affiliate marketing, you are limited to the number of sales or leads that you can generate on one level deep..
However, with network marketing, you have the opportunity to make money from the sales or leads generated by your team members, which means your earnings potential is exponentially increased as you are making money of your downline and their downlines efforts.
Should you become an Arbonne Consultant?
Here are some of the benefits of joining Arbonne:
- You are your own Boss – You set your schedule, work wherever you want and determine your level of effort, whether its working from your phone or meeting with prospective clients and groups in person, or selling via your online website Arbonne provides you. Also you can run your business from your smart phone.
- Clean products – Arbonne products are vegan, cruelty-free, formulated gluten-free
- Online Tools and Training – You get online access to tools such as The Source, My Office Pro CRM (their email platform), the ContentKit (all the Arbonne approved images to promote your business, SoundCloud audio training, a digital catalogue, and an experienced customer service team
- Competitive Earnings – Arbonne’s MLM business model offers weekly earnings through commissions on your personal sales, override commissions on the sales of your team members and provides an opportunity to earn cash awards at every promotional level.
How much money can you make as an Arbonne Consultant?
A typical Arbonne Independent Consultant (AIC) in the United States earned between $120–$502 in 2019 in earnings and commissions. The VP Success Award is available at the VP level; less than 2% of the AICs achieve this award.
Please see earnings.arbonne.com.
Note in 2020 the average annual earnings for a independent consultant was only $206. — That’s not enough to pay for my lunch in a month.
But as you move up the rankings, you will see
District Managers make $2299 a year — that’s will probably cover your monthly car payment
Area Managers made about $13,785 a year – getting better
Regional Vice Presidents made $62,785 a year – now this probably better than average workers salary
National Vice Presidents made $253,000 a year – now this is seriously amazing
*Note – about 1% make it to National Vice President level and it typically takes about 5 years of hard work & effort to achieve this level of success, but its possible.
The results featured are not typical. Actual results will vary depending upon individual effort, time, skills, and resources. Arbonne makes no guarantees regarding earnings.
How to get become an Arbonne Consultant?
To become an Arbonne Consultant, you must first purchase an Arbonne Starter Kit. It costs $49 to join register as a consultant for you to join.
The Starter Kit includes a wealth of information about the products and the business opportunity, as well as a selection of products to get you started, after joining Arbonne will also give you your own personal website , which you can start promoting your business right away, no set up required 🙂
Affiliate marketing is a great way to make money, but network marketing is a better option because it offers more opportunities to make money. With affiliate marketing, you are limited to the number of sales or leads that you generate.
However, with network marketing, you have the opportunity to make money from the sales or leads generated by your team members. You can also make money from the sales or leads of people that your team members recruit.
Additionally, network marketing offers more training and support than affiliate marketing.
You can achieve much more success in network marketing than affiliate marketing because the support and training available helps to ensure that you are building a strong business.
=>If you’re looking for an opportunity to make some serious cash, then network marketing and joining as a Arbonne Consultant likely the better way to go.. It is a great career, and if you’re interested in potentially earning a lot of money, selling clean products (vegan and animal cruelty free), then this is something that you should consider.
Be sure to read my overall review on Arbonne !
This website is owned and operated by Muzaffar Alvi, an Arbonne Independent Consultant, and is not endorsed by Arbonne. Any opinions expressed on this website are made by and the responsibility of the Independent Consultant and should not be construed as a representation of the opinions of Arbonne.
Arbonne makes no promises or guarantees that any Independent Consultant will be financially successful, as each Independent Consultant’s results are dependent on their own skill and effort. You should not rely on the results of other Arbonne Independent Consultants as an indication of what you should expect to earn. The annual typical earning statement is contained in the Arbonne Independent Consultant Compensation Summary (ICCS) available at iccs.arbonne.com.