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May 16, 2012

MLM vs. Affiliate Marketing

In the following video, I go on an almost 15 minute rant against MLM (FHTM in particular).

These guys have the audacity to call their business model ‘relationship marketing’, when in fact what folks are doing is destroying relationships with their friends, family and neighbours while trying to recoup hefty investments in this so-called business opportunity.

For your $300 initial investment plus $70 every month thereafter, you get a cookie-cutter site that Google hates and will slap with a duplicate content penalty. Where’s the relationship in THAT?

In the video, I also show how MOST of the reps are making no money at all, based on FHTM’s own income disclosure statement.

The crux of the matter is that you don’t need to put out big bucks to start a business, especially online.

The model is called affiliate marketing, and for a tiny fraction of what you would invest in an MLM opportunity, you can have a real website and you don’t have to pay to promote REAL name brands.

‘Nuff said. Watch the video and let me know what you think by leaving a comment below. :-)

About Rosalind Gardner

Rosalind Gardner is a blogger, speaker and Internet Marketing consultant, best known for her "Super Affiliate Handbook", (referred to by industry professionals as the 'bible' of affiliate marketing) and Rosalind Gardner's Academy - a multi-media version of the book.

Comments

  1. Bryan says:

    I can’t say I hate mlm’s, just some of the people in them.

    To make any money you need to recruit others, and then hope that they will be able to recruit others so you get a residual income from what they earn.

    I spent almost 12 months in a mlm company, they were pretty good, with some great training. (This is what the monthly payments are supposedly for – in my case over $150 a month)

    When people want to make money online, that is the phrase they google. Then get bombarded with ads from people trying to recruit you into their mlm company. Unfortunately most of these companies forbid their members from advertising the name of the company, so that can make it hard to research. Also a bit of a worry if you don’t know which company you are joining…

    So after many months and a lot of mostly wasted money (mostly because I did get some great raining out of it and learnt a great deal) I decided to cut my losses and get out. Maybe I wasn’t cut out for this internet marketing thing.

    That’s when I came across Rosalind’s Super Affiliate Handbook. Worth its weight in gold. So a big THANK YOU to Ros for showing that their was another way, and you didn’t have to join some company and fork out mega bucks to do it.

    I’ve downloaded quite a few e-books but this was the only one I’ve printed out. (about 4hrs on my old printer). I don’t really like having to sit at a computer to read a book. I would prefer to sit outside in the sun, on the couch, even at a cafe, but this was the only one worth the time and money (for extra printer cartridges) to do.

    So once again a big THANK YOU to Rosalind Gardner.

    May everyone be successful in their endeavors.

  2. Larry says:

    Very interesting video. I tried 3 MLM companies over the years before I learnt my lesson. The most I ever earned was about $600.00 per month for a short time. You always need to be on the hustle as people are constantly dropping out. It is not good. I am working my way through your course. Having a good time though getting frustrated at times building my website but I will get there. I am now retired and think that my attempts at Affiliate Marketing will be far more successful than my past attempts at MLM.

    Cheers,

    Larry

    • Larry,

      Love your attitude. Keep it up and you will find success and satisfaction. Enjoy the freedom of NOT having to build a downline, but of people who like you and your recommendations.

      Cheers,
      Ros

  3. Bill Coton says:

    Hi Rosalind

    It’s good to get things off your chest.

    There are a lot of MLM programs out there that are scams designed to earn the top people money.

    Here in the UK there is an MLM opportunity where you can earn a very good income without building a team. Like you said in a reply to another comment you have to work hard.

    The outlay is £50 to £150, “the people who put the effort into the retailing” can earn their initial investment back in four weeks. And around 80% of those who join do. The hard work only last till you have built up your customers, this normally takes six months to a year. Provided you give your customers a good service they will stay with you for years.

    I have on the other hand invested a lot of money in Internet Marketing products over the past five years and seen very little return for my money.

    You are a successful Affiliate Marketer, and as we say here in the UK I take my hat off to you. If there is one thing I have learnt and that is you cant just put up a site and get floods of traffic “If You Build It They Will Not Come”

    You still need to learn how to promote your site, and that means buying into programs, that might or might not work.

    Why do I want an Internet business, so that I can work from anywhere in the world. The MLM business mentioned above means you have to be at home to run it.

    Thanks
    Bill Coton

    • Hi Bill,

      My mother always used that “take my hat off to you” saying, having learned English in England. So I get it. :-)

      You elaborate what I like best about online business – doing business wherever you are, and I travel a LOT. So, it works for me. Or rather, I made it work for me. :-)

      Best of success to you too!!

      Cheers,
      Ros

  4. Ken Leonard says:

    Hi Ros,

    I’ve looked at FHTM, and rejected it. It, as you say is really poorly designed, or better yet, the whole idea is bad. BUT I wouldn’t tar and feather the network marketing industry. I know many people who are making real money in MLM. It depends on the product and the comp plan. You have to do your DD, talk to others before jumping in. I have your book, and work at affiliate marketing, but its very hard to get noticed above all the billions of others who have blogs… The advertising costs exceed the income. I’ve bought many programs that promised to help, but most of them are just making the authors rich.
    I just have a problem with MLM being trashed undeservedly.

  5. I totally agree that MLM is a scam. It is interesting how a company like Amway still exists after so many years. I guess they have been successful in scamming thousands of people throughout the years and still continue to do so.

  6. ruben says:

    It is awful what companies like that do, not only to MLM but to all systems of entrepreneurship.
    And I understand that affiliate marketing may be very good. It has being for you and probably many others (I believe you and you only) but you have to realize that not everyone is able to succeed in a particular endeavor.
    Me, for instance, I was so fortunate to get a complimentary book from you several years ago but to no avail, something was always missing in my marketing efforts, I have never accomplished anything despite all my expenses and efforts.
    I will not be fair if I say “affiliate marketing sucks”
    In the other hand I have being with a company for many years now, I have a couple hundred customers. I do not make insane amounts of money, few hundred dollars a month maybe, I do not push anyone, nor do I expend lots on it, time or the like. I have a little house paid for with those proceeds, also driven 3 cars (brand new) with cero cost, and two more I paid for with same money.
    One thing I would recommend: analyze any company, product, or system before expending your hard earned money; make sure they have being there long enough, and they have a vision.
    The company I have being with is over half a century old, most of its leaders remaining with it for over 20 years (my own customers have stayed with me for that long) Ah and it’s an MLM company.

  7. Ros: Great video, I spent much of my 20′s getting involved in various MLM ‘opportunities’ until I finally learned that there is simply no way to make them work well unless you start the company yourself or are in on the ground floor of a truly great opportunity. I know people who have huge downlines and have done well but for 99.99% of people MLM will suck the hope out of you and it has been documented that thousands of marriages have been destroyed and suicides have been committed. Too bad the general public can’t quite differentiate between MLM and affiliate marketing. Eventually they’ll catch on. Penn & Teller did a great show on why MLM can’t work, giving three examples, they gave it the full treatment.

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