MLM vs Affiliate Marketing: Which is Beneficial in 2025?

At first glance, the difference between multi-level marketing and affiliate marketing may seem quite similar, as both involve others selling on your behalf.

Both are effective ways to make money, but they target different people and operate in different ways.

For example, MLM usually needs a big upfront investment and focuses on getting others to join, while Affiliate Marketing is about promoting products and earning a commission.

Recent studies indicate that, In 2024 Amway leads the MLM sector with nearly $8.8 billion in annual revenue, affiliate marketing drives 16% of all online sales, particularly in e-commerce, digital products, and SaaS.

In this article, we’ll explore what MLM and Affiliate Marketing are, their pros and cons, best practices, and primary differences. 

What is Multi-Level Marketing?

Multi-Level Marketing, often referred to as network marketing, is a business model where individuals earn income by selling products and recruiting others into the network. 

In reality, these systems mostly benefit the people at the top, while everyone else does most of the work. It kind of feels like how regular businesses operate, though.

You may already know that pyramid schemes are against the law. If you get involved, you’re likely to lose money and could even face legal trouble, which is not a good situation.

MLM businesses often require you to pay for startup costs. While you can earn some money by recruiting others and selling products, most people in MLMs don’t make enough to cover their initial expenses.

Example:

For example, with Amway, you pay to join, sell health and home products, and earn money not only from your own sales but also by recruiting others to join and sell as well.

What is Affiliate Marketing?

Affiliate marketing is when a person earns a commission by promoting products from online stores through various digital channels like social media, blogs, and video platforms. 

It’s a legitimate way to make money, and successful marketers can earn enough to replace a full-time job, with the average affiliate making around $8,000 per month. 

This method benefits everyone: businesses get more sales with little investment, marketers earn money, and customers enjoy special deals. 

Affiliates use their audience to promote products, and in return, they receive financial rewards when people make purchases.

Example:

An example of affiliate marketing is a blogger who writes about travel tips and includes affiliate links to booking websites like Booking or Airbnb. 

When readers click on the links and book a stay, the blogger earns a commission for each successful booking made through their link.

Major Differences Between MLM and Affiliate Marketing

This table highlights the core differences between Multi-Level Marketing and affiliate marketing in a simple, easy-to-understand format.

5 Factors to Consider Before Choosing MLM or Affiliate Marketing

When deciding between MLM and affiliate marketing, consider these 5 key factors:

Income Structure

• MLM: You earn money from your own sales and the sales made by people you recruit. It’s a team-based structure where success depends on building a large network.
• Affiliate Marketing: You earn a commission by promoting products or services, but only from your direct sales. There’s no need to recruit others.

Time Investment

• MLM: Requires significant time to build and manage your team. Success takes longer and depends on others’ efforts too.
• Affiliate Marketing: Can be done with minimal time investment, especially if you have a strong online presence or good marketing skills.

Start-Up Costs

• MLM: Often involves buying inventory or paying for training programs. This can lead to high initial costs.
• Affiliate Marketing: Generally has lower start-up costs. You only need to focus on promoting products and earning commissions.

Flexibility and Control

• MLM: Less flexibility. Your success is tied to your team’s performance, and you need to follow company rules and guidelines.
• Affiliate Marketing: More control over your business. You can choose which products to promote and how to market them.

Risk and Reputation

• MLM: Some MLM companies can have a negative reputation, with people viewing them as pyramid schemes. It’s important to research the company’s legitimacy.
• Affiliate Marketing: Low risk since you’re simply promoting established products. However, choosing the right products and brands to promote is crucial to avoid damaging your reputation.

In summary, MLM is about building a network and earning from multiple levels, while affiliate marketing focuses on individual sales with less investment.

How to Evaluate Your Progress in MLM and Affiliate Marketing

Measuring your progress is essential to determine whether you’re on track toward your goals. Here’s how to evaluate your efforts in both MLM and Affiliate Marketing:

Evaluating Progress in MLM

1. Track Your Sales: Monitor your monthly product sales. Consistent growth indicates that you’re building a strong customer base.
2. Assess Your Downline Growth: In MLM, the size and activity level of your downline directly affect your earnings. Evaluate how well you’re recruiting and retaining team members.
3. Measure Customer Retention: Repeat customers are a sign that your products deliver value. High turnover rates suggest a need to refine your approach.
4. Analyze Income Streams: Break down your earnings into product sales versus recruitment bonuses. A healthy balance indicates a sustainable business.
5. Review Time Investment: Consider how much time you’re investing versus the return. If you’re working long hours without substantial results, reevaluate your strategies.

Evaluating Progress in Affiliate Marketing

1. Monitor Traffic Sources: Use tools like Google Analytics to understand where your website traffic is coming from and which channels are most effective.
2. Evaluate Conversion Rates: Check how many visitors convert into sales or leads. Low conversion rates may signal a need to improve your call-to-action or landing pages.
3. Track Earnings Per Click (EPC): This metric shows how much money you’re making for each click. A higher EPC indicates you’re promoting high-performing products.
4. Analyze Audience Engagement: Look at metrics like time spent on page, bounce rates, and social media interactions to gauge how engaged your audience is.
5. Review Content Performance: Identify your top-performing content and create more material in a similar style or format.
6. Experiment with Campaigns: If certain affiliate campaigns aren’t delivering, adjust your approach by testing different products, niches, or advertising methods.

Conclusion

Deciding between MLM and Affiliate Marketing depends on your preferences and goals. MLM offers a team-oriented approach with potential passive income through recruitment, but requires ongoing effort in sales and building a downline. Affiliate Marketing, however, allows you to work independently, leveraging digital strategies like affiliate guest posting to grow your business. While you earn only from your own sales, it offers flexibility and scalability through personalized affiliate marketing strategies. Choose based on whether you prefer a structured network or the freedom to build an online business independently.

FAQs

Can You Combine MLM and Affiliate Marketing?

Yes, you can combine both. MLM focuses on building a team, while affiliate marketing is about promoting products for commissions. Using both gives you multiple income streams.

MLM vs Affiliate Marketing: Which One Should You Choose?

MLM is best if you want to build a network and earn from recruits. Affiliate marketing is ideal if you prefer promoting products and earning commissions without recruiting others. Choose based on whether you want to manage a team or just promote products.

How Do I Get Started with MLM and Affiliate Marketing?

To get started with MLM, choose a reputable company and sign up as a distributor. Focus on learning about the products, recruiting others, and building your network. 

For affiliate marketing, select a niche, join affiliate programs, and start promoting products through a blog, social media, or other platforms. Both models require consistent effort and learning, so start small and scale as you gain experience.

Which Model Is More Sustainable in the Long Run?

Affiliate marketing is generally more sustainable because it doesn’t rely on recruiting others. MLM can be profitable, but it requires building and maintaining a strong network, which can be challenging.

How Much Money Can You Make with MLM and Affiliate Marketing?

In MLM, earnings can vary widely. Most people earn little, but top earners can make a lot. In affiliate marketing, earnings depend on your niche and traffic, ranging from a few dollars to thousands per month. Both models can be profitable with effort and skill.

Can I Start Part-Time with Either Model?

Yes, both MLM and affiliate marketing can be started part-time. You can grow at your own pace alongside a full-time job.