When we hit hard times and the economy is
down as it is at the moment, many people turn to other more creative ways to
make money. Whether they want to add to their main income or they are
struggling to find reliable work, they may turn to affiliate programs or
pyramid schemes as an easy way to make an income.
I am sure we have all heard of pyramid
schemes… I would hazard a guess that they are all bad things too! But have you
heard of affiliate marketing?
Affiliate marketing is fast becoming a very
popular way to make money online, it is relatively easy and risk free for all
involved, all you need to do is learn a little along the way!
So what is the difference between affiliate
marketing and pyramid schemes, are they not the same thing with different
names?
No they aren’t, here we will explain the
clear difference between the two so that you are fully aware of what you are
getting into when trying to make an extra bit of cash for you and the family
when starting with affiliate marketing.
Affiiliate Marketing
Affiliate marketing is where you agree to
sell or advertise a product in exchange for commission on the sales that you
make for the company you are advertising for.
Most typically these programs pay from 1- 9 tiers in depth, allowing you
to earn money if a customer decides to also get involved and recommend the
product. The company you sign up with will typically provide you with a unique
identifier link, in order to keep track of how many sales have been generated
by your advertising online. Most affiliates will have used the product before
selling it so there is minimal risk when it comes to conflict of interest for affiliate
marketers. Most large companies including amazon have affiliate marketing
systems and it is a completely legal way for them to advertise and a completely
legal way for individuals to make money on the internet.
Pyramid
Schemes
First of all, it should be noted that
pyramid schemes are illegal, and the way they work is extremely misleading. A
pyramid scheme begins when a single money transaction is carried out between
two people. After the deal has been done, it is suggested that the second
person and others who get involved further down the pyramid can make money out
of selling the pyramid scheme. The promise is that there will be a commission given
for new person. Sounds fine, right?
Wrong… For each additional person that
joins and pays an entry fee to the scheme the, first person gets a percentage
of the revenue when an entry fee is paid… Basically the other members may make some
money but it is only the person on the top who really benefits. So is it worth
your effort? No because you are usually just a pawn to allow the people at the
top of the pyramid to make all the money.
So, pyramid schemes are built around
"referring" new people who pay a fee to be able to make money from
other people joining. This fee is usually a signup fee and monthly fee to be
qualified to earn from the pyramid.
So
how is Affiliate Marketing different?
Affiliate marketing is a much fairer way to
make money online, and it works because the payment model is the same for
everybody, or is based on an on an objective payment. Each affiliate will make
a commission when a product is sold with their link, which really makes
affiliate marketers more like an extended sales force.
Affiliate marketing is legitimate and will
probably be the future of marketing, the beauty of affiliate marketing is that
you are not just getting people to click on your referral code to get money,
you are actually selling a useful product to the people that want it.
It is an extremely transparent way to
market and a great way for individuals to make money online without the worry
that they are in a pyramid scheme making money for referring someone else.
Affiliate marketing does not cost any money to join up, so you earn from what you sell without any cash lay out. Most pyramid schemes ask for a payment upfront to join in the beginning, so be on the lookout for this when you want to get involved with affiliate marketing.
Pyramid schemes are ultimately a way to get
people to pay money into the system which is then passed up… there is usually
either no product or a worthless product, this makes the people on the top a
lot of money, and the people in last loose it all!
Next time we will discuss how to write an effective affirmation,
join me on Wednesday 18th February 2015 to find out more!
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Repeat after me: "I´m Financially
Free! Dollars Want Me"
Matthew E. Alleyne
Founder - DollarsWant.Me
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