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The purpose of both these marketing types is different and it depends on what do you want to establish.

AFFILIATE MARKETING
The purpose is to generate additional sales. You build tie ups with people who get a commission on an additional sales generated by them. Example, if Website 'A' has a link of Website 'B' advertising for a particular product, and if that product is sold thru website 'A' then it may get a commission if there is an affiliate marketing arrangement.

MLM Marketing
Multi Level Marketing attempts at building a good distribution network. Though it has intrinsic flaws. The structure here is Pyramidical in nature. The product flow happens down the pyramid (resulting in more offload of product not actual sales), and the commision flow happens up the pyramid. It may be a success in case your nodes at the pyramid are trying to sell the product and not just attempting to make additional nodes. In that case, only the upper portion of pyramid will be happy (for they have sold the product and earned commission), whereas the lower strata has everything to lose.

Implemented efficiently, both of these marketing types can be effective. Affiliate marketing can be useful more in the E-world(over the net) and MLM in the Physical world. Affiliate marketing depends more on the PULL Strategy to get customers wheres MLM depends on PUSH strategy.

It is upto you to decide as to which style suits your needs!

Learn more about this author, Akhilesh Mittal.
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