Is Affiliate Marketing A Pyramid Scheme ? Take A Look

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In case, you do not know? A pyramid scheme is a scam. You probably already know this since you are doing your research on affiliate marketing and want to avoid scams.

Pyramid Schemes

Pyramid schemes usually try to resemble MLMs or multi level marketing business opportunities except they focus on recruiting. Some of these schemes do not even have a real product, they pretend to have a real product to disguise the scheme and the focus on making money is through recruiting others. The FTC states that there are two ways in which to tell if a company is a pyramid scheme, lack of retail sales and inventory loading which is when companies incentive program forces recruits to buy more products than they could ever sell and the people at the top make a lot of money from this.

A legit multi level marketing business sells real products through their distributors. The distributor sells a product and gets paid commission. They may also be able to recruit others but this is not the focus. They may also receive commission on products that their down line sells but it is still from selling of the product.

Characteristics Of A Pyramid Scheme

  • There is always a lot of focus on recruiting and less focus on selling an actual product.
  • Recruiters may promise extravagant life style changes and even getting rich
  • Recruiters may also tell you that you must enroll soon before a special promo ends? They will make you feel pressured to join.
  • There are a lot of rules and most of the customers are the representatives themselves.
  • There is no retail sales


Could Affiliate Marketing Be A Pyramid Scheme ?

Now that you know about multi level marketing and pyramid schemes, lets talk about affiliate marketing and if there is any way a pyramid scheme could come out of it.

For one, affiliate marketing is not multi level marketing.

What does it mean to be an affiliate marketer?

An affiliate connects products or services to consumers. You find a product you like, promote it and make a commission for every sale that is made. People make websites on subjects they are interested in or know a lot about or their hobby and promote other peoples products on their site. Bloggers make money this way, through affiliate links on their website. Its how they make a lot of their money.

Affiliate marketing is legal and has been around for even before the internet but is more popular now because of the internet and how popular online shopping is. Pretty much every product, every company is online and they have affiliate programs for people who want to promote their products.

Affiliate marketers work for themselves, they do not buy products, they do not recruit others, there are no levels… It is not anything like multi level marketing or network marketing.

Companies rely heavily on their affiliates ( website owners/bloggers ) . Let’s take Amazon for one example, how many times have you been online and have been linked to Amazon, whosoever site referred you there would be an affiliate marketer and they would receive commission if you bought anything from Amazon.

So, Is there a scam involved in affiliate marketing?how to make money online

No. Affiliate marketers work for themselves. They create a website or blog on a particular subject or niche such as something they know about or enjoy, they recommend products within the niche on their site using a personalized link that Amazon or some other retailer or company gives them and they pay you a commission when a sale is made through that link. You own your website and it is your business.

So do not let the term affiliate marketing intimidate you, if anything it should excite you because of the opportunity it gives anyone with a computer and internet. Yep, no physical products, no shipping, no recruiting or selling, just recommending through your own website.

What About Affiliate Marketing Training Courses

Since this is a business that you start and grow yourself, you do need to find other successful affiliate marketers to guide you on how to set up your website and how to get your website making money.

There are a lot of affiliates marketing training courses online that ask for a lot of money and promise you that their course will have you making thousands in just a few months and different things like that. I would be very careful.

I think a lot of people get affiliate marketing itself confused with affiliate marketing training courses since you need someone to help you learn how to become a successful affiliate marketer, you go and search online how to learn and you end up at some crazy expensive internet gurus website that promises you millions your first year if you sign up for his/her course. There are some scams out there by people wanting you to take their course.

Affiliate marketing is a legit online business that with hard work and patience can really pay off. It is not hard but it is simple if that makes sense? You can make a full time income for sure and most of the hard work is done in the beginning of building your website.

Legit Affiliate Marketing Training

Like I said earlier this is an easy business to start because of low capital and all you need is a computer and internet but you are going to need an experienced marketer to guide you through setting up a website, determining what your site will be about and how to monetize your site. This business isn’t hard but it is work and there is a lot to learn to be successful.

I spend a lot of time looking at and reviewing affiliate marketing training courses and I have found a few that are really good for beginners. My #1 for beginners is Wealthy Affiliate. They have a free membership that will explain the process of making money online with affiliate marketing and they will also walk you through step by step setting up your website to making money from it. Its an excellent community to learn from.

wealthy affiliate free membership

Any Questions? Leave me a comment

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