Have you been online and noticed all the ads and “hoopla” 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 making revenue online, and are synonymous with the term Network Marketing, where we all “network” with each other to make sales conversions.
There are many terms and confusing explanations. Here’s my view.
Multi Level Marketing may also be called Direct Sales Companies. A few of these that come to mind are companies like, Amway, Mary Kay, thirty-one, and Tupperware. These companies build their businesses by recruiting sales associates, or independent consultants, to join the “team” under them.
The associates in turn recruit others to sell the products, and recruit consultants likewise. Their commissions are paid on a tiered scale. The amount of your pay depends on the place you’re at in the company and how many recruits you have under you. The higher your level in the company the more percentage of commissions you take on your sales and on the associates under you.
Some may get the MLM confused with a pyramid. Here’s the difference: MLM’s have a legitimate product to sell you, and have low enrollment fees; a pyramid has high enrollment fees, and does not have a product to sell you. Plus, pyramids are illegal.
Affiliate Marketing brings to mind companies like Amazon, ClickBank, Google AdSense. These type of companies have established sites with vendors already in place, where you can sign up as an affiliate, promote vendor products and be compensated for it.
Joint Venture products brings to mind companies like Dow Corning (Dow Chemicals and Corning), Sony Ericsson (Sony Corporation and Ericsson Mobile Phones). With JV marketing you are joining with a partner to develop and/or promote a product. Another term that is used is “co-venturing.” These companies share expenses, revenues and assets.
Some say that MLM’s, Affiliate and JV Marketing are the same. I feel that there is a slight difference between the three. Again, here’s my view.
- With MLM’s 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 are helping someone else promote it, while sharing commissions on the sold product.
- With JV Marketing you are joining with a partner to develop, promote, and sell your product, while sharing expenses, revenues and assets.
- These can all fall into Network Marketing because you can “network” with others to bring about your results.
Whichever marketing strategy you use is all up to your individual preference and gifts. Now that you know the differences, find the ones you like, and start generating your revenue! There are more opportunities than you can imagine.