MLM Being Replaced by Affiliate Programs?

MLM has always sounded good in theory. But the great majority of compensation plan implementations are designed to appeal to hype and hope hucksters and starry-eyed MLM-of-the-Month wannabees. All those wanabees think they are going to get rich by getting others to sell for them. And those others also think they are going to get rich by getting others in turn to sell for them. And so on down the line, with the result that hardly anyone sells anything.

It is not profitable for the average person to try to sell anything in most MLMs. The compensation plans are structured so that recovery of promotional and recruiting costs by average distributors is nearly impossible. He gets too little a share of the commission pie. So, the distributor in a typical MLM Payplan is dependent on a large downline to put him into profit since direct customers/distributors themselves are not profitable.

The reason for this is that too much of the sales dollar goes upline to the founders and their "heavy-hitter" buddies. Too little of the commission pie goes to the people nearest the sale -- the person actually responsible for the sale and his sponsor.

Affiliate selling has come on strong because usually only ONE level of commission is paid. That way, the person actually responsible for the sale gets an affiliate commission of 30%, 40%, or more, even up to 80% or so, depending on the product. The affiliate gets more than the typical MLM 5% or 10%, since most of the commission money does not go upline, as in a MLM plan.

Some affiliate programs may have up to three levels. But even with these plans, the commission structure is usually simple. There isn't the typical MLM legerdemain that sounds so wonderful to the naive.

My hard-hitting report, "How to Evaluate a Network Marketing (MLM) Opportunity" is a must read if you insist on getting into or remaining in MLM. It is vital that you know what to look for in order to avoid wasting hundreds, thousands of dollars and time trying to promote losing programs. Buy it; it's worth orders of magnitude more than its minimal cost.