Is Subaffiliate Marketing the Same as Multi-Level Marketing?

The most efficient and cost effective sort of advertising known today is called Affiliate Marketing – a form of revenue share and online advertising that works very well. Basically, a webmaster is paid by a company to display adverts on his/her site either by the amount of clicks that advert receives or the amount of actual sales the advert generates. Generally, the latter is the preferred type of affiliate marketing, presenting little to no risk whatsoever for both the company wishing to sell its services/product, and the affiliate.

When affiliate marketing expands to pay commissions for referring other affiliates, aka subaffiliates, it’s known as two-tier affiliate marketing.

Affiliate and subaffiliate marketing should not be confused with multi-level-marketing (MLM) or network marketing, although many companies do make use of online network marketing techniques. Affiliate marketing works differently, though, in the sense that the webmaster himself (the affiliate) earns an income, and does not sign up or register anyone into the program himself. Both forms can produce a large revenue for both parties, but multi-level marketing is an entirely different subject.

There are some pros and cons to affiliate marketing, but most of the advantages weigh out the disadvantages. The only real disadvantage of the program is that it is not easily scalable, and many bad management techniques have led to adware, false advertising, spam or spamdexing – which is a website that consists only of advertising, and no real content. These kinds of sites often just produce pop-ups and link to further types of useless sites. But because of the rise of blogs and the like, these kinds of issues are getting less.