Is Affiliate Marketing a Pyramid Scheme?

by cloudchaser22 21 replies
Is affiliate marketing a pyramid scheme in any way, shape, or form?

Thank you.
#main internet marketing discussion forum #affiliate #marketing #pyramid #scheme
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  • Profile picture of the author indexphp
    Uhhh....no.

    We're marketers.

    With affiliate marketing, we earn commissions on
    whatever we'd like to sell.

    We're also web designers and publishers.
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    • Profile picture of the author jensrsa
      No. It is commission based freelance marketing, similar to the insurance industry, real estate and many other industries. Some programs may be multi tier, normally two levels, which still doesn't make it a pyramid scheme

      Jens
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      • Profile picture of the author Steven Wagenheim
        How is affiliate marketing a pyramid scheme?

        Marketer A sees product B (say a wart remover) that he can promote as an
        affiliate.

        Marketer A promotes product B, makes sale, collects payment.

        How is this a pyramid scheme?

        I suggest that you go to Google and look up the definition of affiliate marketing.

        That will at least give you a decent handle on what it is before you ask
        any further questions.
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    • Profile picture of the author Kym Robinson
      Hey cloud chaser!
      just because you develop downlines and uplines etc, that doesnt mean its a pyramid scheme! I can understand a newbie not seeing much difference though.
      With internet marketing you can either sell services, products or income opportunities or all! (most products come with an income opp!)
      Affiliate marketing is just selling someone elses product, service etc! but you are working for yourself! You just make your cash by driving enough traffic to, whatever your selling.
      If you want to know what I mean, check out my site. I work for myself but I promote other peoples programs and products on my site! You can do the same!

      Hey better idea - read my blog for newbies - it will explain affiliate marketing in detail for you! Hope that helps - Kym
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      • Profile picture of the author cloudchaser22
        Thank you for your guy's answers. I just perhaps thought that way because it seems like the top percent are millionaires while everyone else is working under and for them... Sorry if this question was stupid.
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        I'm a starter, but I am willing to try everything I can to be a successful internet marketer and chase my dreams. If you can answer any of my questions, I would greatly appreciate it. Thank you.

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        • Profile picture of the author melanied
          Originally Posted by cloudchaser22 View Post

          Thank you for your guy's answers. I just perhaps thought that way because it seems like the top percent are millionaires while everyone else is working under and for them... Sorry if this question was stupid.
          Don't worry about it seeming stupid. People aren't experts when they first start, they're beginners, and they have questions. No worries.

          Also, the idea of "making money on the internet" is scary to people who don't understand what it is, and your friends and family, etc. might have been freaked out when you told them you were thinking about that, so it's natural you might have gotten some terms thrown at you like "pyramid scheme" and not known what was what.

          But I'm sure this thread cleared things up!
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      • Profile picture of the author rondo
        Pyramid schemes are not free to join.


        Andrew
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        • Profile picture of the author NMP
          Consider a pyramide shape, everything in the world
          who generates money is a pyramide. They are in no
          way bad. Only if you pyramide money for money.

          An Affiliate, is money you would spend for marketing
          anyway. Instead the "Marketing Force" gets revenue
          doing the job you would pay for anyway. And since you
          only pay per sale, instead of pay and maybe you get sales
          from marketing efforts it's so popular.

          D
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          • Profile picture of the author marcanthony
            No way!

            Wal-Mart, Home Depot, and Target are all affiliate marketers.

            They all sale other peoples products... they make a commission.
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            • Profile picture of the author Johnson Tay
              Yes, affiliate marketing is a pyramid scheme.

              Please don't join.

              We're making too much money and don't need another competition.

              Thank you.
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              • Profile picture of the author JayXtreme
                Originally Posted by Johnson Tay View Post

                Yes, affiliate marketing is a pyramid scheme.

                Please don't join.

                We're making too much money and don't need another competition.

                Thank you.
                LOL>..

                I like it Johnson..

                Jay
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                Bare Murkage.........

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                • Profile picture of the author bozz723
                  Well, your question, about the millionaires.

                  Most of them rehash stuff over and over and sell it. You have to understand you must take action on what you know, if you do not you will be destined for doom.


                  Just do not continue to buy the latest guru $197 ebook, it is rehashed info.

                  Learn from the form, and buy tactics once you are advanced.

                  Cheers.
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                  • Profile picture of the author Eric Lorence
                    It also has much to do with how you promote your affiliate program. How is the ad copy is worded.

                    Especially if you try to convince customers that they can make up the purchase cost as an affiliate, assuming they purchase your product.

                    Requiring a purchase to join as an affiliate is a gray area as well, as some of these systems have been banned by PayPal, though not necessarily illegal.

                    Offering 100% commisions, selling the "opportunity" as opposed to any product would be a true distinction.

                    Best!
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                    • Profile picture of the author Kay King
                      everyone else is working under and for them
                      Some posting here seem to be confusing MLM with affiliate marketing.

                      In MLM you are doing the downlines, uplines, etc - and many of those are valid businesses though usually not as profitable or easy as they claim.

                      In affiliate marketing, one person is selling another person's product for a cut of the profit.

                      kay
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                      • Profile picture of the author Frank Bruno
                        Thats why typical affiliate programs are limited to only one or two levels. Because the payment processors view this as a grey area and in their minds its borderline "pyramid scheme"

                        Frank Bruno
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                        • Profile picture of the author Sarah Harvey
                          Nope, it isn't a pyramid scheme. It's similar to being a book publisher in real life. You sell the books and get a percentage off the sales. Realistically in this case the books are transformed to ebooks and stuff.
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                          "Find the problem and provide the solution."
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  • Profile picture of the author Scott Ames
    Originally Posted by cloudchaser22 View Post

    Is affiliate marketing a pyramid scheme in any way, shape, or form?

    Thank you.
    That's a blanket statement so you'll get blanket answers.

    I would say that 99.9% of all affilate programs are not pyramid schemes. Pyramid schemes are defined as:

    pyramid scheme (a fraudulent scheme in which people are recruited to make payments to the person who recruited them while expecting to receive payments from the persons they recruit; when the number of new recruits fails to sustain the hierarchical payment structure the scheme collapses with most of the participants losing the money they put in)

    Most affiliate programs actually sell something and you only get paid on sales. So basically.. NO
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    Success consists of going from failure to failure without loss of enthusiasm. -Winston Churchill

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  • Profile picture of the author Monetize
    Affiliate marketing is used by all types of businesses and corporations
    (Amazon, Walmart, Zale's and thousands of others) to broaden their
    advertising reach. The way it works is that you place referral links on
    your website(s), and when your visitor clicks through and completes a
    transaction, you earn commissions.
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  • Profile picture of the author TheMagicShow
    Originally Posted by cloudchaser22 View Post

    Is affiliate marketing a pyramid scheme in any way, shape, or form?

    Thank you.

    Affiliate markeing is a legist setup where the vendor pays the affiliates commossion for each and every sale the affiliate brings in, 100% legit and very lucrative for some.
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    " You can either give a man a fish and feed him for a day OR teach him how to catch a fish and it will feed him for a lifetime"

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  • Profile picture of the author Andres
    No freaking way!
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    • Profile picture of the author eugie17
      Is pyramid schemes for small business or it is for large ones?
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