Recently I got many queries from my readers & followers related to online business, one of the most asked questions was, Is Affiliate Marketing a Pyramid Scheme? Is Affiliate Marketing Real or Fake?
We all know, Affiliate marketing has existed for many years for quite some time.
But the question of today is- “Is Affiliate Marketing a Pyramid Scheme?”
Well, my answer will be – Affiliate marketing is neither a pyramid scheme nor a type of multi-level marketing. It’s a legitimate internet business model that’s making people a lot of money.
I am one of the real-life examples who earned a good amount from affiliate marketing & believe me it’s changed my life forever! Till now I have earned more than $60,000 in Profit by promoting various affiliate products online.
In this blog post, we’ll look at affiliate marketing and see how it differs from other schemes and methods of marketing & also explain why Affiliate Marketing is not a Pyramid Scheme.
Affiliate Marketing In A Nutshell,
Affiliate Marketing is a form of online marketing in which a person promotes a company’s products or services in exchange for a commission on each sale.
It is a performance-based marketing arrangement in which the affiliate is compensated for referring customers or sales to the merchant.
The company that owns the product or the platform that hosts the affiliate program determines the commission rates.
For example, as an affiliate, you can sell Amazon products and earn a pre-determined commission on each sale you made through your link.
Every company provides a unique affiliate code with a link to all affiliates who want to promote products or services of the particular company.
Do you know one thing? Affiliate Marketing Industry is Worth over $12-Billion…It’s huge, we can easily earn a decent amount from this biggest market share.
Table of Contents
Affiliate Marketing VS MLM VS Pyramid Scheme
Let’s compare affiliate marketing to multi-level marketing (MLM) and pyramid schemes now that we’ve defined it.
Multi-level marketing, like affiliate marketing, is a performance-based system in which commissions are earned on individual sales.
Individuals in an MLM, on the other hand, earn commissions on sales made by other members of their downline, implying that there are multiple levels of compensation.
Individuals in a pyramid scheme make money by recruiting new members into the scheme rather than selling products or services.
There is usually neither any product or service involved, and therefore the only way to make money is to sign up more and more people.
MLM VS Pyramid Scheme
The main distinction between pyramid schemes and MLM is that MLM usually involves a product or service, whereas pyramid schemes depend exclusively on new recruits.
Commissions are earned on sales in an MLM, but recruitment is the only way to make money in a pyramid scheme.
Is Affiliate Marketing a Pyramid Scheme? (Explanation)
Affiliate marketing, on the other hand, is not a pyramid scheme. It is a genuine way to make money by marketing products or services online.
Apart from MLMs and pyramid schemes, affiliate marketing does not require any recruiting process. You simply endorse a company’s products or services and earn a commission on each sale you make.
Whether you’re a 9-5 hustler or a 24-hour entrepreneur, affiliate marketing is a great way to supplement your income.
Indeed, affiliate marketing generates revenue on autopilot, and the commissions earned are quite considerable.
So, once the commissions start rolling in, you could even become a full-time affiliate marketer.
Steps Involved In Affiliate Marketing-
Let’s talk about how you can get started in affiliate marketing.
The best strategy with affiliate programs is to market the products that you are passionate about.
This way, you can build a loyal following and increase sales.
Let us begin.
1-Choose an Affiliate Marketing Specialization.
The first step is to select a niche in which you are interested and familiar. This will make promoting the products or services to your target audience easier.
The following are some popular affiliate marketing markets:
– Finance & Make Money
– Fitness and health
– Child caring
– Innovation in technology
After you’ve decided on a market, narrow it down so that it becomes a niche.
A micro-niche is a subset of a larger niche.
As an example-
“Health and fitness” is a market, “weightless” is a niche, and “weight loss for women over 60” is a micro-niche.
The more specific you are, the easier it will be to establish authority and rank on Google’s first page.
Here are some good micro-niche ideas:
-Cleaning the house
-Golf balls sleep better
2-Find a Trustworthy Affiliate Program
After you’ve decided on a niche, look for a reputable affiliate program to join. There are numerous programs available, but not all of them are equal. Before you join one, make sure you do your homework!
Here are some characteristics to look for in an affiliate program:
– A solid reputation: Look for program reviews online to see what others are saying.
– High commission percentages: The higher your commission rate, the more money you’ll make on each sale.
– A diverse range of products or services: This will provide you with more opportunities to promote your business and increase your chances of making a sale.
3-Product or service promotion
It’s time to start promoting now that you’ve chosen a niche and found a reputable affiliate program! You can accomplish this by writing blog posts, making videos, or running advertisements – the choice is yours!
If you’re not sure where to begin, here are a few suggestions:
– Create blog posts about the products or services you’re trying to sell.
For example, if you’re selling washing machines, look for keywords related to the Best washing machines, buy washing machines online…
To find a list of relevant keywords in your micro-niche, use Google Keyword Planner (free). Then you can create SEO Optimized content that can Rank on search engines & you can generate sales.
– The second method is to make videos about the products or services you want to promote. These can be uploaded to YouTube or your own website.
– Alternatively, you can run advertisements for the products or services you’re promoting. You can do this with Google AdWords, Facebook Ads, or another ad platform. However, it is preferable to start with a blog because paid ads can be difficult to use.
How To Create An Affiliate Blog-
There are a few things you should consider before writing an affiliate blog post.
To begin, ensure that you are aware of the product or service you are promoting. This makes it easier to write about and promote to your target audience.
Furthermore, make sure your affiliate link is included in your post! This is how you will earn sales commissions.
Finally, once your blog post is published, don’t forget to promote it. You can accomplish this by posting it on social media.
How to Make An Affiliate Video-
Making an affiliate video is an excellent way to promote products or services while earning affiliate income.
Kine master, shorts are known as the simplest way to create an affiliate video in minutes.
These are artificial intelligence-powered online video creators.
My Final Thoughts on “Is Affiliate Marketing a Pyramid Scheme?
Let’s hope, this has helped you understand affiliate marketing and how it works.
If you want to start your own affiliate marketing firm, make sure to follow the steps outlined above!
That’s it – everything you need to know about affiliate marketing in 2022!
No, it is not illegal to make money online by promoting products or services. So, if you’re looking for a way to generate a passive income, give affiliate marketing a shot! Thank you for your time!