MLM vs. Affiliate Marketing: What’s Best for You?

Affiliate Marketing vs. Network Marketing

If you’ve been looking for extra ways to monetize your social media accounts, you’ve most likely compared affiliate marketing vs multi level marketing (mlm). Like all opportunities, it really comes down to your personal goals and aspirations. You may find that you love one or the other. On the contrary, you may find out that neither is what you’re looking for.

I want to help you better understand these two options so you can make immediate decisions and start earning money. Most people get stuck in the research phase of entrepreneurship and never actually make a move. Meanwhile your competition is taking action and getting ahead of you. Don’t get left behind. Let’s take a look at affiliate marketing vs mlm and see if either is a fit for you.

Traditional MLM: The Focus on Recruitment

The terms mlm and network marketing are interchangeable. Both models allow individuals to earn through direct sales and recruiting others to do the same. Unfortunately, unethical companies and individuals have contributed to a negative stereotype of the industry. However, just like any industry, there are legit, successful, well ran mlm companies that exist.

Are multi level marketing companies a pyramid scheme? Well, yes, in fact some are schemes. But not all of them! Let’s take a quick second to look at what makes a company legitimate versus outright sketchy.

Key Differences in a Scheme and a Legitimate MLM

Focus on Sales vs. Recruitment: Legitimate MLM brands tell you exactly what product they sell and they compensate based on sales of those products. A pyramid schemes’ primary revenue source is not products, it’s charging costly fees to those signing up which is what makes the pyramid eventually fall. If revenue stops coming in from sign ups, the whole thing crumbles. Look for companies that clearly emphasize what they sale.
Product Value: Legitimate MLMs offer high-quality products or services with a clear market value, whereas pyramid schemes often sell overpriced, low-quality products that are only there to support the recruitment model. A common sign is when someone talks about their opportunity without mentioning the actual product. That’s because they make their money from new sign ups and not sales. Consider whether the company sells proprietary products or white-label products. Proprietary products are a sign that a company is investing time, money, and energy into selling quality products. Companies buy mass-produced products at wholesale prices and slap their logo on them, making them white labels.
Compensation Plans: MLMs reward affiliates for their sales of their products and the sales of their products from the recruits. Pyramid schemes offer compensation primarily for recruiting new members, with little or no focus on product sale.
Sustainability: Legitimate MLMs have a business model based on long-term customer satisfaction and retention, while pyramid schemes can only function as long as new recruits keep joining.In a legit NWM company, they compensate you for bringing in real customers. In a pyramid scheme, you are the customer because their revenue is dependent upon fees from sign ups.

Deciding if the MLM model is right for you:

If you love selling makeup and skincare but don’t want to lead others, traditional MLM models can feel limiting.
If you aim to recruit and build a team while selling, traditional MLM can be a great fit for you.

If it does seem like a model you can see yourself flourishing in, I strongly recommend learning how to read compensation plans.

Affiliate Marketing: Simple, But Limited Growth

On the flip side, affiliate marketing is a simpler compensation structure. But it doesn’t allow for you to get paid on other affiliate’s sales who you recruited to join. You only earn commission on your sales. The pro to this model is you don’t have to manage anyone. The con is this: say you have fellow influencer friends who learn about the opportunity from you because they see the success you are having with your sales, you will not be compensated at all for bringing them to the brand and generating that brand sales revenue. This inevitably limits your growth to the number of sales you personally generate.

If that is no issue to you, then the affiliate only model can be a great fit. Usually this works well for influencers or bloggers who represent an array of products and continually add new company affiliate links to their repertoire. Think of your TikTok shop influencers who represent a lot of things and don’t necessarily focus on one brand versus someone who focuses on a specific solution/product line. This doesn’t mean that network marketing is bad or that affiliate marketing is bad. It means you have to decide what is most important to you and your goals.

Pro Tip: It also doesn’t mean you have to just pick one or the other. There is nothing saying you can’t do both. And if a company forbids you from representing others, it’s best to avoid joining that company anyway. Remember, at the end of the day, it’s your personal brand so do NOT let a company tell you what you can do or how to market.

Omni Marketing: The Best of Both Worlds

If you’re torn between the two business models, the perfect scenario is finding a product you love, from a brand you trust, who has a comp plan designed to serve both options. For that very reason, I chose the Omni Marketing Model by Bellame Beauty. The compensation plan is designed to give equal opportunity to both structures – those who just want to sell, and those who want to sell and manage a team.

It takes the vs out of the equation because it combines the best of MLM and affiliate marketing without forcing you to choose between selling and recruiting.

Here’s how it works:

For Non Team Builders: You can focus on what you love — selling makeup and skincare products—and still earn significant commissions from those sales. But it leaves the door open for you to earn on team sales in the future if you change your mind about managing a team.
For Team Builders: If you enjoy building a team, you will earn rewards for it, without the constant pressure to recruit.

Why Omni Marketing Works for Me

I love selling and I love helping my clients improve their beauty and wellness routines. With over 6 years in the industry, I’ve seen how the traditional MLM model can leave sellers feeling stuck. But with Omni Marketing, Bellame’s model allows me to focus on selling high-quality beauty products while also having the option to build my team.

This balance of sales and recruitment is a win-win for everyone, and it’s one of the main reasons I’m so passionate about what I do.

Benefits of Omni Marketing

Earn from your sales: You earn rewards for your efforts, whether you focus on selling products or building a team.
No pressure to recruit: If recruiting isn’t your thing, you can still grow your income through your personal sales.
A balanced compensation plan: Omni Marketing gives you the freedom to grow at your own pace, without feeling overwhelmed.
Leaves the door open if you change your mind in the future about building and managing a team.

Take Action on Your MLM vs Affiliate Marketing Research

MLM business models vs affiliate business models both have their place in the market. Ultimately, I wanted the best of both worlds. So I decided to bet on myself and here I am 6 years into business. I’ve completed over $2 Million in makeup sold, over $25 million in team affiliate sales, and currently serving a team of over 3000 amazing women – some of which mentor others and some who don’t! Ultimately, you must decide who to trust for information and advice. And then you have to decide what’s best for you, your personal brand, and your family.

I pray this article gives you peace and clarity. And if you want to explore Omni Marketing along with my mentorship and training, then let’s talk business.