25/06/2023
Is Affiliate Marketing a ponzi scheme?
You may say NO but many of your prospects think it is 🤷🏽♂️
Here are 7 ways to tell the difference between Affiliate Marketing and Ponzi Schemes.
1/ Affiliate marketing (AM) involves promoting a product or service to earn a commission for each sale made through your unique referral link.
For example, if a product sells for 60k at 50% commission, you get 30k per sale. You just need 10 sales to make 300k a week/month.
Ponzi schemes, on the other hand, promise high returns on investment but only pay off earlier investors with money from new ones.
I remember falling victim to MMM in 2016. The scheme crashed just when it was my turn to get paid. God abeg 🤲🏽 😆
2/ Affiliate marketing is a legitimate business model, while Ponzi schemes are illegal and fraudulent.
Big brands like Amazon, Uber, ShopRite, etc use the AM business model.
Statista estimates the AM industry will be worth $8.2 billion by 2023, up from $5.4 billion in 2017.
3/ In affiliate marketing, you are promoting a product or service, while in Ponzi schemes, you are investing in a fictitious business opportunity.
For example, in AM, you can promote products like books, gadgets, courses or services like web hosting...
while in Ponzi schemes, you are investing in a fake opportunity, like a non-existent offshore investment fund.
Greed blinds.
It's the reason intelligent people fall victim to stupid scam schemes without questioning the investment. 😪
4/ Affiliate marketing requires effort, time and skills, while Ponzi schemes only require you to invest money with the promise of high returns without doing any work.
For example...
Affiliate marketing requires you to create content, build a following, and develop marketing strategies,
