Is Affiliate Marketing a Pyramid Scheme

Is Affiliate Marketing A Pyramid Scheme?

Is affiliate marketing a pyramid scheme? If you’ve spent some time in the online space, you might have pondered this question yourself. Well, let’s discuss that question, and what’s really behind it.

First, let’s be very clear and direct with the answer. Definitely Not! Affiliate marketing is not a pyramid scheme.

A pyramid scheme can be described as a fraudulent investment scheme that promises people high returns for recruiting more people to join it. In contrast, affiliate marketing does not involve recruiting people and is a legally sanctioned form of marketing.

Most importantly, there is nothing fraudulent about it. And there is not better evidence than the fact that Fortune 500 companies depend heavily on affiliate marketing to move their products!

So what is affiliate marketing, and how does it work? Keep reading to find out.

What Is Affiliate Marketing?

Affiliate marketing is a performance-based marketing model where businesses reward independent third parties (affiliates) for each customer or visitor brought to the enterprises through their marketing efforts. Basically, you get paid to promote a product or service and convince customers to buy from specific sellers.

Affiliates are typically independent publishers, bloggers, and influencers promoting various businesses’ products or services through their own channels. They get a commission in exchange for the sales generated.

How Does Affiliate Marketing Work?

Affiliate marketing involves convincing and referring potential customers to buy products or services from specific businesses. They do this through various online channels, such as their website, blog, email list, or social media accounts.

The affiliate earns a commission whenever a customer purchases through the provided referral link. The commission percentage varies from business to business.

How Does Affiliate Marketing Work?

What Are The Advantages Of Affiliate Marketing?

Affiliate marketing offers numerous advantages to both the affiliate and the business. To affiliates:

  1. It provides an opportunity to generate passive income without developing a product or renting a space.
  2. It’s the ultimate school for learning online marketing and customer service while growing your income.
  3. You get to build your reputation and develop business relationships that can be useful later.

How To Become An Affiliate Marketer?

Become an affiliate marketer is simple. You start by:

Creating An Affiliate Website

As an affiliate, you need a platform where you can create content and host your promotions. And there is no better place than your own website or blog. While social sites can still work, you want something you have complete control of and is yours for life.

I have seen affiliates, celebrities, and even politicians lose their social media accounts or verification badges, and their business collapses. Nobody will take away your website. Plus, it builds confidence in potential customers that they can trust your business and go ahead and purchase.

Creating a website is an easy process and sometimes takes minutes. Just ensure it’s professionally designed to boost confidence.

Knowledge of SEO

Is Affiliate Marketing A Pyramid Scheme?After creating your website, you need to optimize it for SEO. SEO stands for Search Engine Optimization, and it involves optimizing your website to appear higher in search engine rankings, including Google. Once you have achieved SEO-friendliness on your site, it will become visible to more potential customers.

What is the best place to learn affiliate marketing? At Mobile & Passive, we are strong supporters of Wealthy Affiliate. It’s a powerhouse platform that is a good fit any affiliate marketer, from newbies to pros!

Click to see our complete review => WA Review in Detail

Generate traffic to your website

You need to generate traffic to your website since this audience will turn into paying customers and avid readers. Start by creating quality content that’s useful and meaningful to your audience. Once you have a reasonable number of monthly visitors, you can proceed to the next step.

Finding Affiliate Programs To Join

Find affiliate programs that you can join, promote their products, and generate commissions. They are many depending, and you can apply to any depending on your website niche. Each of them has its own unique set of rules and requirements.

Examples of affiliate programs include:

  • ClickBank
  • Amazon Associates
  • Commission Junction (CJ)
  • AWIN
  • eBay Partner Network (EPN) (1)
  • ShareASale


Affiliate marketing is not a pyramid scheme. It’s a legit marketing strategy that enables business visibility and offers passive income-earning opportunities to affiliates. There are some shady operators, and that is why it has gotten a bad name in some circles. 

And there are some big names in affiliate marketing that have a very sketchy past. Like the owner of Legendary Marketer. But that is the case with any industry. The key is to do lots of research before you enter any training program.

However, it’s not a get-rich-quick scheme and requires dedication, creativity, and hard work. With the right skills and commitment, you can succeed as an affiliate marketer and reap great rewards.

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How Does Affiliate Marketing Work?

Affiliate Marketing Training

At Mobile & Passive, we believe Wealthy Affiliate is the best platform to learn affiliate marketing, and build a successful business. It has the best training, tools, support, and amazing success stories. Whether you’re brand new, or a seasoned pro, it works equally well for everyone. And you can test drive the program for absolutely free – not even a credit card down. 

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