April 22


Is affiliate marketing a pyramid scheme? The truth

By Pasi

April 22, 2022

Is affiliate marketing a pyramid scheme

In this is affiliate marketing a pyramid article I will tell you that affiliate marketing is among the top online marketing strategies that businesses and brands are using to boost sales for their businesses.

However, many people are unaware of this myth and misinterpret affiliate marketing and the pyramid scheme. A lot of people think it is affiliate marketing that’s the newest pyramid scheme of the decade.

Since I’ve been involved in both cases, I have had good experiences in both, and, yes, I was involved in MLM and pyramid schemes prior to blogging, but I learned from that.

On this page, I’d like to like to clear some misunderstandings and doubts about the subject of Affiliate Marketing a pyramid scheme and the distinction between affiliate Marketing and MLM companies.


Is affiliate marketing a pyramid scheme? : What is Affiliate Marketing?

affiliate marketing is the practice of selling services and products from other brands and companies through digital platforms, such as websites and social media.

They earn a number of commissions for every sale they make by other businesses’ products to customers who use digital platforms,

They advertise the product and track sales with special links known as affiliate hyperlinks which are found inside your affiliate accounts of an Affiliate program or network that you’ve joined.

Is affiliate marketing a pyramid scheme

Is affiliate marketing a pyramid scheme?: What exactly is a Pyramid Scheme?


Pyramid schemes can be an unsustainable business model in which you are investing money in an unsuitable product in order to be into a network or chain,

In the case where your work is more on securing other individuals as distributors to the business by telling them that they will earn profits in the future,

by enlisting other people to be distributors for your company you are instead of making sales for your product and increasing the revenue of the business.

Pyramids that begin at the top of the pyramid . one person who owns the company will invite distributors for the products of his business and,

Distributors to find a group of new distributors individually by investing in the distributors and then ask the new distributors for the exact same thing [each distributor must recruit a group of new distributors as follows:

The network and number of distributors (or chain) of distributors continue to grow ever more and more until it reaches a point at which it falls apart and collapses.

The total amount of people hired as distributors of the company is higher than the total world population.

In the next segment how recruiting new distributors can help existing participants in the scheme to earn more money.

Is affiliate marketing a pyramid scheme?: What is Multi-Level Marketing [MLM]?

Multi-level marketing is an approach used by companies to create direct sales of goods from the manufacturer to consumers similar to the sales made by people to persons and to boost sales for the business,

Similar to the pyramid scheme, each person who purchases the product is a new distributor for the product, and they must make new distributor recruitments to the product, and also increase the sales that the item will bring to the business.

There are two terms to keep in mind when you are in MLM,

  • Upline: It refers to the people who recruited you through the MLM company, as the distributor is typically above you. The top of all uplines is the person who owns the company and is at the highest level of the pyramid.


  • Downline:  Downline People who you have recruited as new distributors for the company are generally beneath you or you are their upline.

You can earn money in two ways MLM and pyramid scheme

    1. Selling the products of the company to others as distributors of the business and making money from the commission on the sale.
    2. In addition to recruiting new people as distributors for the business, and whatever sales your new distributors (your Downline] generate independently, without interference from you and interference, you will earn a small percentage from those sales. You will earn money for as long as the chain grows [your downline] more because you are ahead of them or their upline and above them.

With this concept, Everything and everyone is connected by this approach, much as a network or chain, and you mainly earn money passively and without doing anything at all as long as your network keeps expanding by enlisting more and more people.

Therefore, it’s also known as network marketing, chain selling is also known as pyramid sales.

Differentialities in Pyramid Scheme as well as MLM.

There are a few differentiators between an MLM pyramid scheme and an actual MLM business. Let’s take an overview.

The most significant distinction that exists between MLM with the pyramid system is that there is no authentic, valuable, and trustworthy product offered, in contrast to MLM in which the item that is sold is at best real, reliable, and valuable.

In a pyramid scheme, you’re expected to only sign up or invite new customers as distributors within the chain you manage, which is also known as downline distributors in order to earn commissions. This is in contrast to focusing on product sales and selling to consumers,

If you are a member of a legitimate MLM company you’ve signed up with asks you to join or recruit more members of the company to earn money, instead of soliciting you to increase the sales of the product offered by the business, then

You must be aware that it’s an MLM scheme however, the main focus of the majority of MLM businesses will be on selling products and creating a market for the product, rather than finding new distributors to earn more profits as a pyramid scheme.

In an MLM you can’t be reimbursed for your investment, however, legitimate MLM companies will take products back in the event that the products are not being sold to their dealers.

The initial costs are lower in MLM businesses as they are less than those of pyramid schemes.


Is affiliate marketing a pyramid scheme

Is affiliate marketing a pyramid scheme? : Similarities between Affiliate marketing & Pyramid scheme.

There are three commonalities between them.

  • Both are strategies for marketing that companies employ to create higher sales for their goods.
  • Both strategies are built on commission systems.
  • Both have several fraudulent incidents in their histories, where one is more infamous than the other.

After you have the concept of similarities between these two strategies,

We’ll now look at the distinctions between these two in greater detail


When you affiliate market, you make cash based on the products you offer for your company, not on the number of those you hire like you would in the pyramid scheme.

With affiliate marketing, you’re in total control over choosing the product prior to marketing it, but in an MLM or pyramid scheme, MLM business, you don’t have the choice in choosing the product.

The most important difference between the affiliate marketing scheme and MLM and pyramid schemes is that the primary difference between MLM is that it

There is no investment required for the beginning of affiliate marketing. However, it’s not the same as a pyramid scheme or MLM.

Since you must put some money into purchasing the product before you begin selling it to other people or begin recruiting others to earn profits.

There are numerous tiny and important aspects and distinctions between both strategies.

Is affiliate marketing a pyramid scheme? : How can you recognize this Pyramid scheme?

Here are 5 things you need to be aware of and be able to determine any pyramid schemes in the event of any in your company’s marketing strategy.

  1. Before purchasing the product from the company, look at the quality and price of the product and determine whether there is any market demand for the product the market.
  2. Your income depends on the number of people you hire and the extent to which those recruits bring new clients into the company and make the chain longer than the independent sales you bring towards the business.
  3. Before you join the company it is likely that you are told by your peers or those who are recruiting you into the business that you’ll be earning passively millions and will be the boss and that all the hype revolves around the notion that you will be able to sell the item.
  4. The course will take you through a presentation in which you’ll learn about the amazing product that brought about a change in thousands of lives through examples of people demonstrating their success by buying the product and then selling it to others. If many emotions convince you. However, be cautious because this is the typical method of attracting people to the majority of pyramid schemes.
  5. It is mandatory to visit places, participate in conferences and seminars and also purchase other products and services even if you don’t require them.

Now that you are able to spot this scheme of pyramids in every business,

It is suggested to use the five points in this article as references. make your own choices and stay clear of joining pyramid schemes as well as MLMs since you’ll waste both time and cash at the end of the day.


Is affiliate marketing a pyramid scheme? : How to Earn Money through Affiliate Marketing

Now that we’ve established the basics of affiliate marketing and how it is different from other strategies, let’s take an in-depth look at how you can make money through affiliate marketing!

The most efficient way to earn money from affiliate marketing is to market products or services that you are enthusiastic about. In this way, you’ll develop a fan base and increase sales.

Let’s get started.

Pick an Affiliate Marketing Niche

First, you need to pick the area you’re fascinated by and are familiar with. This will help you to market the product or services to your target audience.

Some popular affiliate marketing niches include:

Fitness and health

Personal financial

– Parenting

– Travel

– Technology

Find a Reputable Affiliate Program

Once you’ve picked a topic then you need to locate an affiliate program with a good reputation to join. There are a lot of programs on the market, however, they’re not all alike. Be sure to do the necessary research prior to joining one!

Here are some things to look out for when you join an affiliate program:

• A solid reputation Review of the program on the internet to read what other users are saying about the program.

• Commission rates that are high The more commission rates you earn the higher the amount you’ll earn per sale.

— A variety of services or products It gives you more possibilities to promote and increase the likelihood of selling.

Promote Products or Services

After you’ve picked the right niche and discovered an affiliate program that you trust It’s time to begin marketing! It’s possible to do this by writing blog articles and videos, or by creating your own videos or even running ads It’s your choice!

If you’re unsure where to begin, here are a couple of suggestions:

Write blog entries about the product or service you’re advertising.

Create videos about the products or services that you’re trying to promote. You can share them on YouTube or on your own site.

Create ads for the services or products you’re advertising. You can make use of Google AdWords, Facebook Ads, or any other ad-based platform to accomplish this.

Is affiliate marketing a pyramid scheme? : How to Write an Affiliate Blog Post?

If you’re planning to create an affiliate blog post, here are some things you must remember.

The first step is to ensure that you are knowledgeable about what product you’re advertising. That will help make it simpler to write about it and then promote it to your readers.

Then, make sure you include the affiliate link in your blog article! This is how you earn a commission on sales.

Last but not least, remember to share your blog post after it’s been published. It can be done by sharing the post on social media , or by running ads.

Is affiliate marketing a pyramid scheme

How to Create an Affiliate Video?

Making an affiliate video is an excellent way to advertise items or products to customers.

When you are creating your video, ensure to add your affiliate hyperlink in the description, so that the viewers are able to click it and purchase.

Be sure to advertise your video once it’s released. This can be done by posting it to social media platforms or by advertising it in the form of running ads.


Is affiliate marketing a pyramid scheme? : Conclusion

Affiliate marketing is among the most effective ways to earn online money by 2022.

It is a fantastic opportunity to make money by keeping the wrong ideas about affiliate marketing in your mind.

Comment on what you think of this blog’s post. Do so in the comment section to the right.

We hope that this has provided you with knowledge about affiliate marketing as well as the way it operates. If you’re thinking of setting up an affiliate marketing company Be sure to follow the guidelines above!

That’s it Everything you have to know about affiliate marketing by 2022! Are you sure it’s not an elaborate pyramid scheme? It’s not a scam – it’s an authentic method to earn money online through the promotion of products or services. If you’re looking for ways to create an income stream that is not dependent on your efforts look into making an effort to try affiliate marketing! Thank you for taking the time to read!

Are you having any concerns regarding affiliate marketing? Do you have any questions you’re confused about? Please let us know in the comments below and we’ll be glad to help you with any questions you have!

About the author

Hi, My name is Pasi. I'm an online marketer. It has been a roller coaster for me, but I'm learning.. I have researched lots of businesses and finally found good and honest business to promote. I'd like to share it with you. Take an e-mail course and discover the business.

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  1. What are some key warning signs or red flags that individuals should be cautious of when encountering a presentation that emphasizes product success stories and selling to others, as this approach is often associated with pyramid schemes?

    1. Recognizing warning signs or red flags is crucial when evaluating presentations that emphasize product success stories and selling opportunities, as these characteristics can sometimes be associated with pyramid schemes or other fraudulent schemes. Here are some key warning signs:

      Emphasis on Recruitment Over Product Sales:

      If the presentation focuses more on recruiting new members than on the actual sale of products or services, it may indicate a pyramid scheme where recruitment is the primary source of income.
      High Entry Costs:

      Pyramid schemes often require participants to pay high upfront fees or purchase large quantities of inventory with the promise of future returns. Be cautious if the emphasis is on personal investment rather than the sale of genuine products.
      Lack of Tangible Products or Services:

      If the business model relies heavily on recruitment and there’s a lack of tangible products or valuable services being offered, it raises suspicions. Legitimate businesses typically have tangible products or services at the core of their operations.
      Pressure to Recruit:

      Pyramid schemes often put significant pressure on participants to recruit others. If success is measured primarily by the number of recruits rather than product sales, it’s a warning sign.
      Exaggerated Income Claims:

      Be wary of presentations that make unrealistic or exaggerated claims about potential earnings. Pyramid schemes often promise quick and substantial returns with minimal effort.
      Complex Compensation Plans:

      If the compensation plan is overly complex or difficult to understand, it might be intentionally designed to obfuscate the true nature of the scheme. Legitimate businesses typically have transparent and straightforward compensation structures.
      Lack of Retail Sales:

      In pyramid schemes, the focus is often on internal sales (sales to new members) rather than external retail sales. Legitimate businesses generate revenue from actual customers purchasing products or services.
      Limited Information about the Company:

      If there’s a lack of detailed information about the company, its founders, or its track record, it raises concerns. Legitimate businesses are transparent about their background and history.
      No Genuine Product Demand:

      Pyramid schemes may lack genuine demand for the products or services they offer. Legitimate businesses address real market needs.
      Negative Online Reviews or Scam Reports:

      Research the company online, paying attention to reviews and scam reports. If there are numerous complaints or warnings from others, it’s a red flag.
      It’s important to conduct thorough research, ask questions, and seek independent advice before getting involved in any business opportunity. Legitimate businesses are transparent, have clear value propositions, and derive revenue from the sale of actual products or services to external customers.

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