Is Affiliate Marketing a pyramid scheme?
New marketers will always ask the question, is affiliate marketing a pyramid scheme? When searching for information on, how to make money online you will eventually come across affiliate marketing. There are tons of ways to be scam in the make money online niche. Why are we more subjected to a scam is because it triggers an emotional survival response in our drain.
Affiliate Marketing can easily maid to be a scam or pyramid scheme but there are some key ways to separate the two. Pyramid schemes have a very unique pattern, first it has a personal recruitment base pay structure. The more people you recruit into the system the more money you will make. The central way of making money is not with selling a product, good, or service, but how many people you can get to join.
Compare that to affiliate marketing where the central part of making money is product sales and not people subscription. An affiliate marketer sales a product, most of the time an information product to people looking for that info and earn a commission for each sale.
This doesn’t mean there can’t be scheme and people looking to scam you. Just by simply doing a little research and you will avoid the vast majority of these scams.
What to look for when starting affiliate marketing?
A key sign to looking for legit affiliate opportunities is how long that affiliate offer as been around. The older the product the greater the chance it is has a solid reputation and its a real opportunity. A good rule of thumb would be, the 1 plus year rule. If the product is older than 1 year sense being created than it will increase the legitimacy of the product.
Another tip to finding good affiliate offers is a market place. There are affiliate marketplace that provide real offers for sale. These marketplaces has really done all the leg work of researching affiliate programs for you. Clickbank is the largest affiliate marketplace on the internet and they have a large variety of offers in just about any niche. This is the starting place for most people looking to start doing affiliate marketing.
With a quick google search you will fond tons of affiliate marketplaces to join, they all have different enrollment requirements for joining so make sure you research them before spending your important time with enrollment.
How affiliate marketing pays?
How people make money doing affiliate marketing is simply supplying customers to the product thats for sale, and then the creator of that product pays you a commission for that sale. A commission payout rates for 40%-75% of the product sale price.
There are a lot of chances of earning big commission per sale of a product. People create digital products and will give a large part of the sale to affiliates. Why give these big commission to start? The main reason to pay large percentages of the sale is because affiliates take on the leg work of advertising. This allow product creator so streamline their profits by creating a digital product once and simply earning from that product over and over with no addition cost.
Removing advertising cost for any business is the best way to maximize profits. So creator know the baseline number per sale they need, to turn a profit for their digital product. They recruit others to do the heavy lifting of slain the product for them and they earn money, win-win. This allow an opportunity for anyone looking to make extra money a chance to make money without investing in product creation and just focus on sale.