Affiliate and MLM marketing are ONLY good for business basics
People often ask me, “how did I get involved with the world of business?” Note that I still consider myself an aspiring entrepreneur and not an actual entrepreneur. I have some experience, but there’s plenty that I’m yet to learn.
I see entrepreneurship as divided into two three big categories: Entrepreneurs, Managers, and Engineers. The best entrepreneurs are competent at all, but specialize in one. When you’re just starting off as an “entrepreneur,” you need to pick one to start with. If you come from a programming or mechanical engineering background, you’re probably the engineer type. You know plenty about making a solid product or providing a good service, yet you know little about actually managing people, business, marketing, sales, and more. So you ask, what would the engineer or wannabe entrepreneur do in order to get started in the actual world of business?
Many people rush to the book store, eager to learn the insider secrets of getting rich. If I saw an old guy reading a book called “Starting a business for dummies,” I’d feel like telling him to get on his feet and actually go out in the world to start one. Who learns everything there’s to know from reading books anyway? If you asked any successful person in their respective field how they became to successful, they’re not going to tell you to read books or go to college. They’re going to suggest you go out and get real life experience. Sound intimidating? Well, it’s the only real way!
So you ask, what’s the best way for me to get real world experience?
Good question! Well, plenty of ways… like, um… start your own company? But it’s so intimidating!
One of my blog readers suggested that I introduce the idea of affiliate marketing as a good way to get started. I’ve been bashing the idea of affiliate marketing and MLM pyramid schemes since the beginning of time, but I’ll admit that they’re a good way to get started. And only that! In a nutshell, MLM pyramid schemes involve a person selling a product or service and earning a small percentage of the profit — the hope is that when someone gets involved, s/he could recruit others to also get involved, and more residual income can be made. Affiliate marketing is slightly different, and also varies from company to company. You find a good product or service that you’re willing to promote, and you make X% of the profit or price. There’s more of an emphasis on selling and less of an emphasis on recruiting other fo-entrepreneurs. Blog readers have agreed that affiliate marketers are much more respectable than those MLM people.
And while I very much despise the idea of being an MLM or affiliate marketer, (read here) both can help a person learn the art of selling, marketing, recruiting, and more — without needing to spend the time or money on creating a legit product.
Jessica Mah… used to be … an affiliate marketer?
Like many, I was once an affiliate marketer. In fact, it was my first online “business.” (if I can even call it a business…) I didn’t know what to make or what service to sell, so I decided to get into the world of selling website templates for a company called templatemonster.com. I made about 20% of everything I sold, and learned about everything from direct sales to SEO to Google Adwords marketing. Did it make much money? Of course not! But it was a great way for a 12 year old to get acquainted to the world of business and money. But after that experience, I’ve found that taking part in making a LEGIT company with an ACTUAL service is much more exciting and makes much more money.
So for all of you who complain to me about how much you want to start a company, go out and start one! Entrepreneurship is the new cool! (*as long as it doesn’t involve being an affiliate or MLM marketer for the rest of your life!) Again, if you’re just getting started in the world of doing business, and you’re content with mediocre at best income, affiliate marketing is a-OK. Now go out and get some real life experience!
July 10th, 2008 at 1:40 pm
Hmm… I don’t think its fair to lump affiliate marketing with MLM…
July 11th, 2008 at 11:28 am
I think Nii makes a fair point. On the entrepreneurial food chain, affiliate marketers are small but respectable guppies, while MLM marketers are little blobs of pond scum.
The difference between an affiliate marketing business and an MLM is that the affiliate marketing experience will give you a wide set of skills that carry over into other businesses — things like SEO, click-through optimization, and so on. You need to set a budget, track conversions, find the best affiliate opportunities, and learn how to be independent and get by on your own.
As an MLM, you’re much more limited to succeeding within a specific system. While you may hone certain skills like sales, you’re more likely to piss off your friends after trying to sell them your revolutionary fly-by-night vitamins for the 19th time.
July 13th, 2008 at 12:44 pm
No nonsense, no holds barred arguments always leave me wanting for more!
July 17th, 2008 at 6:18 pm
Actually, affiliate marketing has nothing to do with MLM, it’s more like being a salesman on commission. 99% of affiliate marketers don’t make a cent from recruiting anyone else, they make money from selling products and providing value.
I started affiliate marketing in January, and have learned so much like beating AdWords quality score, landing page design, SEO,etc. I’m now pulling in 5 figures a month, which more revenue than many Web 2.0 startups.
I think doing affiliate marketing as your primary career is nothing to scoff at- many people make a very comfortable living that way. I personally know several affiliate marketers who make millions of dollars in profit a year, so it’s not all “mediocre at best” income. I think many affiliate marketers contribute more to the economy that the next revolutionary Web 2.0 bubble widget.
In short, affiliate marketing can be extremely rewarding, both financially and in terms of developing a sustainable skillset, so do it!
August 4th, 2008 at 8:59 am
Affiliate Marketing (AM) can be, as Ilya said, big business. The key is putting in the time and effort to make it something real and not just hoping you can make big $$$ from 5 minutes of work, which does seem to be how far too many people approach it.
March 4th, 2009 at 8:43 am
Nice work keep it up