Affiliate Marketing vs Arbonne Network Marketing (MLM)
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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 for commission via your team / “downline”.
This type of business opportunity may sound good, but there is one downsides that come with it, which is essentially if your team doesn’t sell, you don’t earn.
However on the plus side, if you’re team / downline sells, you earn income off of their efforts and that could be quite lucrative.
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 registration fee, which is usually nominal.
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 multi level 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 when someone from your team sells a product.
In a nutshell, this type of business involves recruiting others in order to generate money from your downlines efforts .
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.
Multi Level Marketing Company > Arbonne
Arbonne is a vegan based health and beauty 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 true.
There is no requirement, but if you do, and you’re team sells, than you simply make money off their efforts.
If you don’t build a team and sell on your own via your very own ecommerce site, you simply are operating like an affiliate, as one person.
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 think because Arbonne has a network marketing/ multi level model, its pyramid scheme, but it definitely is NOT!
If you read my review on Arbonne, you’ll see why its NOT a pyramid scheme.
Arbonne is a vegan plant based health and wellness company which has a Multi Level Marketing (MLM) model.
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.
Also in a pyramid scheme, new participants always stay at the bottom, however with Arbonne if your start selling more than you’re upline , the person who recruited you, you actually can move up the ranks!
This alone debunks the pyramid scheme concept, as you’re moving in higher ranking than your upline.
To learn more about Arbonne, read my latest & complete Arbonne Review here.
Why multi level marketing (network marketing) is a better 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 multilevel 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.
Network Marketing in my view, especially because Arbonne gives you an e-commerce store ready to go out if the box, is actually affiliate marketing on steroids, as you can sell for your self online and or your recruits can sell from their own ecommerce store and you earn from their efforts!
Why you should 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.
Become an Arbonne Consultant (Sign Up) >>
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 🙂
Conclusion
Affiliate marketing is a great way to make money, but network marketing with Arbonne is a better option because it offers more opportunities to make money. With affiliate marketing, you are limited to just yourself and your efforts to make money.
However, with network marketing, you have the opportunity to make money from your team / downlines efforts and the people they recruit on their team, hence why it’s called multi level 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.
Related Posts:
Arbonne Reviews
Arbonne Fizz Sticks
Arbonne 30 Days to Healthy Living
Arbonne 30 Day Cleanse
Arbonne Nutrition
Arbonne Gut Health
Arbonne SkinCare
Arbonne 7 Day Body Cleanse
Arbonne AgeWell
Arbonne Skin Elixir
Is Arbonne a Pyramid Scheme?
If you have any questions , don’t hesitate to reach out. You can get in touch with me here.
Muz
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.
Hey Muz,
Thank you for your comparison of affiliate marketing versus network marketing and also your review of Arbonne. I can see you clearly prefer Arbonne. Can I suggest for anyone else that what is a better business model will depend on the person. Some people would prefer to network and recruit and make sales, and for those ‘people’ persons then perhaps network marketing suits them more. Other people may not like any form of recruiting or sales and prefer to stay at home and build a purely online business. For those types of people affiliate marketing may suit their personality and circumstances better. So in my experience, which is better will depend on any individuals preferences.
Thanks John. Agree however with Arbonne its like affiliate marketing on steroids.
You can market 100% digitally online, as i do, as they give you a fully functional ready to go e-commerce site as well as marketing collateral.
I think you can make a success of any business model, if it is a legitimate, honest business model built on integrity with a strong business plan with good management. I agree with John that it will all depend on your personal preference. Some become super successful with ecommerce, others with affiliate marketing, others with the delivery of a service and others with network marketing.
Hi Muz,
Thanks a lot for providing me with a combination of Affiliate marketing and network marketing. I believe if you love an MLM’s product and leverage the power of the Internet, it’s highly possible to make money with MLM’s compensation plan and the commission structure. I am also sure it’s possible to become 1% of Arbonne’s distributors if people don’t quit in the first 3-6 months. 🙂
Hey Muz,
Thank you for sharing and comparing between Affiliate Marketing and Network Marketing.
I love Affiliate Marketing and I’m glad that I have read your review because it has helped assured me that I’m doing the right thing.
Keep writing such great articles and helping people like me.
All the best,
Tom
Product Quality
4.5
Product Price
4.5
Customer Service
4.5
I highly lean towards affiliate marketing vs MLM marketing. The problem with MLM is you have to sell to your friends and family and then keep branching out. The problem is you are always looking for new leads which if you can’t do it then you don’t make any money.
I have been working in affiliate marketing for 13 years now. It’s much more lucrative. You can pretty much do any niche you want. If you get tired a niche you can sell the site which isn’t something you can do with MLM.
One of the most important pieces of advice I always give people is to do something they are passionate about. Otherwise, it feels like work and they will make it hard to keep at it.
Thx for input Garen. Not entirely true. I’ve never pitched to family/ friends, infact do it 100% digital, just like affiliate marketing. In fact with Arbonne you get 35% commission on client sales and 15% on preferred client sales (these are people who became members to buy the products at discounted rates), when someone buys through your link. No minimum required to sell to earn these comissions. And best part is you get recurring comissions from these people when they repurchase as longs you renew your Arbonne IC membership annually, which is very nominal. And this doesn’t even count the bonuses and overrides you get when you meet the critera.
I consider Arbonne affiliate marketing on steroids🙂
Be sure to read FAQ’s on Arbonne Affiliate Program
Hey,
This is an interesting article and I understand your promotion of Arbonne and Network Marketing.
I have been doing affiliate marketing for a while now and I don’t feel the need to change over at this present time. If things change then I will definitely look at the Arbonne opportunity you are describing in this article.
Well done on your success so far and all the best for future success.
Keep up the great work.
All the best,
Tom
Product Quality
4.5
Product Price
3.5
Customer Service
3.5
HI Muz,
Thanks for introducing me to Arbonne Affiliate Marketing. I would agree with you that an MLM can be quite lucrative. I know several people who are MLM marketers that have also made a living over the years. They love people, and talking. That is very helpful to recruiting others. The bottom line is you need to recruit people to help build a team and achieve the top results. Otherwise you are simply affiliate marketing. Personally, I have been involved in MLM schemes before, and recruiting and training others takes time. And the problem I experienced is they get discouraged and quit frequently. So, my preference is to work for myself and reap 100% of the rewards. Thanks for a great review and introducing me to Arbonne!
Thank you Chas. I agree & your correct.
Thats why I consider Arbonne‘s model affiliate marketing on steroids, you get full commissions on sales you generate anything your team generates, once meeting the min criteria, you can get bonuses & overrides etc. All the training material already provided by company, from creative assets, crm tool, and more.
Plus you have 3 days to try out risk free becoming a consultant.