Pyramid Schemes

How To Know If Affiliate Marketing Is a Pyramid Scheme or Scam

Image by Pete Linforth from Pixabay

With all the online scams, pyramid schemes and fraud that is going on, it can sometimes be difficult maneuvering the Internet as it’s like an online mine field.  Starting out, I will point out that true affiliate marketing is not a scam or pyramid scheme.

What is a Pyramid Scheme?

As defined by Merriam Webster:

a usually illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants

As I mentioned previously, true affiliate marketing is not a pyramid scheme as you would have no upline or downline.  It’s not even a distributorship which is a whole different topic.

In reality the only person you have to answer to in affiliate marketing is yourself. 

See through the lies

Is Affiliate Marketing legit?

I kind of answered this in the previous sections as it’s neither a scam or a pyramid. 

Check out these two articles on scams and fraud:

1)- How To Avoid Online Fraud And Find An Affiliate Marketing Program You Can Trust

2)- How To Avoid Affiliate Marketing Scams

Best Recommendation.

The best thing you can do is to do your diligence in researching as much as you can on what you are looking for before diving into it.  Remember if it sounds too good to be true, it probably is a scam

Scams claiming to be affiliate marketing.

There are some scams out there that claim to be affiliate marketing but are actually some other business models such as a distributorship which in some cases can be a pyramid, and you have to be careful with those.  If you are being asked to pay up some fees to either purchase products or some kind of startup costs, then it’s not affiliate marketing.

Don’t be pressured to join.

Affiliate marketing is a business model that will never pressure you to join.  About the only thing that may happen is that they may review your stats to see if you qualify for their current needs and either delay your membership or reject you as your traffic volume is too low for their needs.  If you are being pressured, then it’s not affiliate marketing.

Affiliate marketing vs pyramid scheme.

In simple terms, affiliate marketing is where you agree to sell another companies product in return for a commission where as a pyramid scheme begins with a single business transaction between 2 people as Person A would make an offer to Person B, and Person B can make a commission off each sale made as well as any sales from each additional person that Person B would get a percentage of revenue from sales made from people who accepted the offer.  This process creates a pyramid where different levels of income are potentially made.

In short, with affiliate marketing, you would never deal directly with people making sales as indicated with a pyramid scheme.

Get started today!

Joining affiliate marketing.

In most cases, you’ll see a link for a company’s affiliate program either at the top or bottom of their website, usually the bottom.  You would click on that link and fill out their application and you are either immediately accepted or they will get back to you.  The reason I am explaining this is to prove a point.  Company’s never or don’t usually approach you to join their program.  It’s usually you approaching them.  So, if you are approached, be careful and tread lightly and make sure it’s not a scam.

There is a saying that I go by and that is “if they come after you, they want something”.  So be careful if you are ever approached.  It doesn’t mean that it is a scam, but it could be.

Access to proven methods.

Having access to proven methods does help and if you would like to sign up for our FREE lessons newsletter to get more of these tips delivered to your inbox, check out our Getting Started page to gain access today.

Avoid Scams

About scams.

One good point to consider about scams is like it’s an acronym “Sources Coming After Money”.  Just thought I would through that out there.  This is why diligent resources is highly recommended as you never know what you could be faced with. See below for the scam registry from the US Government.

Scam Registry.

If you are ever faced with a possible scam or pyramid and need to quickly find out if it is legit or not, the USA Government has a registry that you can refer to and here is the address – https://www.usa.gov/common-scams-frauds  It’s an official website of the United States Government.

About The Author

Tim

I'm a Blogger, into Wordpress, social media, Internet Marketing, Entrepreneur.

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