29/06/2023
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,
while Ponzi schemes only require you to invest money and wait for returns that'll never come. Aka Investor vibes 😂
5/ Affiliate marketing has a track record of success, while Ponzi schemes have a history of collapse and investors losing their money.
Many people have built successful careers and businesses through AM, e.g Konga, Jumia...
But Ponzi schemes are destined to crash...
6/ AM allows you to diversify your income sources, while Ponzi schemes focus only on one investment opportunity.
As an affiliate marketer, you can promote multiple products and services, while in Ponzi schemes, you're told to invest in one fake opportunity to get back double.
7/ AM companies are transparent about their products and commission structure, while Ponzi schemes keep their operations secret.
Digistem , for example, clearly states its commission structure and product details for its affiliate program, from 50% to 80% commissions!
But..Ponzi schemes hide their operations and do not provide any real information about the investment opportunity.
They promise returns without effort.
Run for your life because you'll definitely be heartbroken. Don't let them play on your greed.
Now that you know the difference, choose wisely.
