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Archive for December, 2007

Internet MLM Part 3: Is Internet MLM A Form Of Affiliate Marketing?

When I conduct my Basic Internet Skills coaching classes, I do get questions once in a while on what’s the difference between Internet MLM and affiliate programs.

First, let’s take a quick look at what is affiliate marketing …

Affiliate marketing is essentially the selling of someone else’s products. All you need is to market other people’s products and get paid a commission.

The concept started on the Internet for more than 10 years as at the time of writing. It is generally accepted that affiliate marketing began with Amazon as it recruited affiliates to help market its books and other products. For each sale, Amazon would pay a certain percentage of the selling price.

Here’s a quick overview of affiliate marketing.

*** Overview Of Affiliate Marketing ***

Thus, affiliate marketing can be regarded as a branch of Internet marketing where products are marketed using the Internet as a medium. This contrasts with information marketing where you market your own product.

Whenever we discuss affiliate marketing, Clickbank, an affiliate program provider, will usually come to mind.

Clickbank specializes in digital products with tens of thousands of affiliate merchants (meaning product owners) and affiliate marketers (those who market the affiliate merchant products).

Becoming an affiliate with Clickbank is straightforward. Simply head over to www.clickbank.com and sign up for a free account. After that, click on ‘Marketplace’, type in some keywords, and off you go and create your own affiliate link.

The next thing to do is to promote your affiliate link through various methods of web advertising and traffic generation such as running classified ads, traffic exchanges, forum and blog marketing, social networking, etc.

When someone clicks on your affiliate link and purchases a product, you will earn your share of affiliate commissions.

Now, let’s turn our attention to Internet MLM…

*** Overview of Internet MLM ***

Internet MLM is merely a new generation of network marketing whereby the MLM company itself or network marketers make full use of the Internet to promote its MLM business opportunity.

Even today, some MLMs still operate very much in the high touch, traditional manner where you make a warm list of friends and associates, then contact and invite them for an appointment for a business meeting, either 1-on-1 or an opportunity meeting.

Once you sponsor someone, you will be paid a commission of the sales of the products/services consumed by the new person. Now, when this new person sponsors someone else, you will also continue to enjoy an overriding commission though this person is in your 2nd level.

When the new person in your 2nd level sponsor someone else, you continue to be paid an overriding commission. And this goes on for multiple levels (or even infinite levels in some compensation plans), thus the term multi level marketing.

In recent times, more and more MLMs and network marketers are beginning to use the high tech Internet to either generate leads for their MLM business and take them off line for a face to face meeting …

… or attempt to run the entire MLM business operation – from prospecting, presenting, following up, closing, training – online. How successful this is remains to be seen as there will be a total loss of the high touch element that’s so important in the success of a network marketing business.

*** Affiliate Marketing vs Internet MLM ***

Affiiliate marketing usually operates by paying commission to the affiliate marketer who had directly caused the sale. If the new customer decides to become an affiliate marketer for the same product and let’s say, he made 3 sales, the affiliate marketer who first sold to him will not be paid an overriding commission. This is single-tier affiliate marketing. Clickbank and many other affiliate program providers like PayDotCom pays only single tier.

However, there are some affiliate marketing programs that pay 2-tiers. In other words, if you’re an affiliate marketer and you make a sale. When your new customer decides to turn affiliate marketer and makes a sale too, you get a cut. Isn’t that nice?
Thus, I would arbitrarily classify affiliate programs as single or 2-tier marketing programs while Internet MLM as multi-tier affiliate programs. Theoretically, they are simply different flavors at opposite ends of the same continuum of marketing programs, known by different names.

Why not call Internet MLMs as multi-tier affiliate programs? Well, I guess you can. And what about calling affiliate programs as MLMs? I guess you definitely cannot if it’s single-tier and you possibly can if they are two-tiers.

If you have any other views, feel free to leave your comments…

Network marketing: Have you got the map into your head?

Not long ago, I went on one of my many driving trips from Singapore - where I live - to Kuala Lumpur (KL), Malaysia four hours away.

As I drove across the border, I realized that in my hurry, I forgotten my bag of maps entirely - which had served me well in the past whenever I got lost somewhere in KL.

Fleeting thoughts haunted my mind to turn back and get that bag of maps in case I get lost in a foreign land. However, I comforted myself that I’ll be able to find my way and decided to continue on with my journey.

Four hours later, I was in KL…

As I already arranged several appointments at various places in the city, I had to rely on my past knowledge of the city in order to find my way around. Thankfully, I had ‘installed’ the KL map into my mind over the last two years:

- by remembering landmarks like prominent buildings

- by analyzing how the myriad number of highways intertwined and led to one another

- by staying at hotels in different parts of the city

- by using different routes to travel from one place to another

Though the map is not the territory, but having the map in mind had helped me to navigate around, to find my bearings though I admit that many a time I still find myself lost in some small roads and areas that I’m not familiar with… which can be a little frightening as it can often take awhile to get back to the main roads and find my direction once again.

Isn’t it the same for your network marketing business?

The network marketing map is all there, laid out on the table for us:

- the company’s history, background, founders, achievements, mission, vision

- the products it carry and distribute

- the compensation plan and how it rewards distributors and affiliates who achieve the most results

- the back office, the support system, the prospecting tools

- the strategies and
how your team functions to support and shorten the learning curve of your new ‘distributor’ business partners

If we had taken the time to ‘install’ the ‘network marketing’ map into our mind, we will be able to move forward in the direction in our success journey. When we meet someone who is looking for a business opportunity, we are fully prepared to share and expose the business opportunity to them confidently so that they would know that we take our business seriously and not just some ‘hobby’ that we try out and see if it works for us…

Having said that, we do get lost along the way. There will be new situations that we do not know how to handle yet, there will be people we have not known how to deal with yet, there will be questions on the products and/or compensation plan that we would not know how to answer yet. But that’s part and parcel of the game.

But still, having the network marketing map in our mind offers the comfort that we are at least prepared to meet most of the challenges that we will face and by learning and growing everyday, we will become better and more knowledgeable and finally become unstoppable in our journey to success.

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How To Revive The Death of Networking Marketing?

Can you believe it?

Call it a coincidence, serendipity, fate, whatever you want …

… the fact remains that:

My Internet MLM Secret Report was released at the exact same week as Ellie Drake’s / Mike Filsaime’s
Death of Network Marketing Report !*#$!!

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If you have read ‘Death of Network Marketing’, you would realize that it’s a GREAT report - lots of insights and truths there - I wish I had written that instead :-)

If you had indeed read that report, you would realize that it leaves you hanging with tons of questions like:

- What are you going to do next?

- How are you going to leverage on the Internet to build your network?

- What about your existing network - continue to build or not?

In fact, when I read ‘Death of Network Marketing’ just hours ago, I was beaming with a smile.
=> http://www.the-death-of-networkmarketing.com/?see-why=20611

(Read the article)

$$$ The ‘Internet MLM’ SECRET REPORT $$$

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Some of you may already know that Internet MLM is my pet subject …

Day in and day out - for more than a year - I keep thinking of how I can leverage on the Internet to build my MLM organization … FAST!

What if I can combine the TWO into ONE?

Wouldn’t it cause an EXPLOSIVE combustion like combining OXYGEN + FUEL?

Wouldn’t you agree with me that it will become a highly explosive MONEY MAKING
MACHINE that spits out money every second while you sleep?

Just a week ago, I finally put together an Internet MLM Secret SYSTEM that will do exactly what I had been investigating for more than a year now …
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The ‘Internet MLM’ Secret Revealed: Internet Business Make Money Online MLM

I finally revealed the ‘Internet MLM’ Secret, a 12-page special report … making Internet business ‘make money online’ MLM a money-making machine!

*** NOTE: ALL existing subscribers will receive a copy! ***

Claim Your Free ‘Internet MLM Secret’ Ezine Newsletter
($97/mo. Value) Via Email Two Or Three Times Weekly
Plus…get an Exclusive Special Report, “How To Build
A Highly Explosive Passive Income By Combining The
Global Reach Of The Internet With
The Awesome
Potential Of MLM?”

First Name
Email

The report describes a system of combining the global reach of the Internet with the awesome power of MLM! 

HOT off the press, I’m using this system to generate laser-targeted leads to my network marketing business and already receiving more than satisfactory results.

As T. Harv Eker says, “Talk is cheap!”  The best thing for you to do is to grab the report for yourself and see how you can customize it for your own MLM …