May 26, 2011

What's the difference between affiliate and multi-level marketing programs?

Answer From: Ron English 

Affiliate Marketers are more like an independent business that only does business through his mail order letters, ads, articles, etc. The marketer has either created a product from scratch or gone over to ClickBank and selected a product from the thousands listed. ClickBank actually helps the independent marketer set up his little store. Once established to his liking he begins to advertise via the various search engines like Google, Bing, Yahoo, etc. He place a notice in the various free media. If he has a mailing list he sends email letters about a webpage he has prepared where this product is posted and described and featured. One of the big differences an affiliate marketer enjoys is the low start-up cost. You don't have to purchase any inventory and you are free to market your products anywhere without territorial restrictions. 

An affiliate marketer almost never sees his customer. It is all done via email and Internet. Once you make a sale you will find you do not have to ship anything. ClickBank does all of that work and even sends the owner (supplier) of the product his part of the sale, ClickBank keeps a small fee and the rest--sometimes as much as 70 percent of the gross sale is deposited in your ClickBank account for you to use. It's a simple process that is win-win for you and the supplier and your customer. You can research Clickbank by visiting their Internet site. www.clickbank.com 

Multi-level Marketing Programs? There are many--some much better than others. These almost always require you to hold meetings and meet your customers face-to-face. There are exceptions, but these will be rare. Often times you are required to stock product that the multi-level company is promoting. To be successful you will have to enroll other people who have a similar interest in building a business to join your team. The multi-level company pays commissions through several levels of memberships. Each person you sponsor comes into your organization with the same opportunity to build a business as you do. Before they can break off from your little company they must produce a certain level of success that is mostly credited to your account (In some cases each new member's investment or purchase is shared with the person who sponsored your business, with you and, of course, with the company). A certain portion of your sale is credited to your account and when you reach a certain goal you can break off from your sponsor and all your sales mostly benefit your company. You do not hurt your original sponsor because of the nature of multi-level business each level of the process benefits. The rules and guidelines differ from company to company. 

You have devotees of both kinds of marketing: Affiliate Marketers & Multi-level. Successful Affiliate Marketers will rarely have any interest in Multi-level opportunities and those who love Multi-level business will have little or no interest in becoming an affiliate marketer. 

A wise person once said: "Two things that are different are not the same." While that is true if you examine the infrastructure of both kinds of opportunities you will find shades of sameness, yet they are very much different. Be diligent in your research. Another good place to do research is: www.warriorforum.com Here you will find, I believe, the best collection of ideas, marketers and opportunities on the web. This is a forum with strict rules for each marketer to follow, but you will find a treasure trove of information and opportunities for both your Internet Marketing and even some valuable info for those in multi-level. Don't underestimate the value of this forum. At any given time there are thousands of marketers and would-be marketers on this forum. It is an amazing place and a remarkable tool.

No two marketers would agree with all I have written--that is why you must be diligent in your research. Believe all you want, but verify all you invest in. Check it out. Make only informed decisions based on your careful research. 

Ron E

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May 3, 2011

Downline sizes exposed Put the paid MLM companies on the spot, ask them to share the following information!

How big is an average downline?

These are the type of stats that a paid MLM system are never going to share with you, put my words to the test and contact them and say. "Tell me the average downline after someone has been a member for 4 months, then I can make an informed decision before I pay to join you". 

You know what will happen, you are going to get some answer about how it varies and they cannot share etc. What a pile of rubbish (putting it mildly). At 0mlm we have an open policy, if our system doesn't work we want to know, what want to fix it. Only when something works can you take it to be a world leading company, which is our aim. 

I spent 30 minutes today writing a script that adds up all the level 1, 2, 3, 4 and 5s to work out an average. If you do this for the newest 500 members then they will of course be very low as they are just getting started so for this article I took the first 500 sign ups to the site. These will be members that joined in January 2011 and today is the 2nd of May 2011. To save you the maths this comes in at 122 days and without any stalling or excuses here is what the average downline looks like:
  • Level 1 = 3.79 people
  • Level 2 = 11.702 people
  • Level 3 = 19.818 people
  • Level 4 = 25.43 people
  • Level 5 = 25.988 people
This makes a total of 86.728 people. If we assume that each person can earn you $1 of profit for each of the 5 sites that you are given free with 0mlm then your yearly forecast is estimated at $5,203.68. 

You can see that in this calculation level 5 has not had time to develop, as the growth ratio is 102%. In fact it would be interesting to look at the growth ratios per level. If I'm loosing you with the maths don't worry, I will explain. The longer you are a 0mlm member you will have more time to grow each level. Level 1 has 3.79 people and this has generated 11.702 people, you can therefore calculate that level 2 is 308% bigger than level 1, or in other words it's about 3x bigger. So let's look at that in a table:
  • Level 1 growth factor = na
  • Level 2 growth factor = 3.08
  • Level 3 growth factor = 1.69
  • Level 4 growth factor = 1.28
  • Level 5 growth factor = 1.02
It's fair to assume overtime that these numbers will become the same but I will write an update later in the year based on running my script once again.

Summary

So what does this mean for someone looking for a home business opportunity? It means after 4 months the average person will have 86 people in their downline and based on an estimate of $1 profit per person per site per month makes a total of $5,203.68 per year. Did I also mention that 0mlm is 100% free? No sign up fee, no hosting fee, no domain name fee. In fact is so free that we don't even have an option to enter any credit card information.
So consider joining us before you jump in to a paid MLM.  






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May 2, 2011

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