Is Affiliate Marketing a Pyramid Scheme

Is Affiliate Marketing a Pyramid Scheme? Which Is Really Better in 2024?

How to make money online today? Everyone is searching for that. And they find Affiliate marketing is a great way. But many people have many doubts about it. One of them is, is Affiliate Marketing a Pyramid Scheme? To clear everyone’s doubt, let’s see the differences between Affiliate Marketing vs. Pyramid schemes and which method you can use to earn money.

Is Affiliate Marketing a Pyramid Scheme?

Amidst people’s search to make money, Affiliate marketing and Pyramid Schemes are becoming known. Do they both work the same way? Or different ways? It isn’t very clear to many people. The answer is that affiliate marketing is not a pyramid scheme. There are many differences. By examining these. We can understand how they work.

Understand about the Pyramid Scheme

Different between Affiliate Marketing vs Pyramid Scheme

Affiliate marketing promotes an individual’s or a company’s products or services to expand. If someone buys the product being promoted in this way, a commission will be given to the promoter. But Pyramid Scheme entices investors to invest by saying that they can earn more if they recruit more people to their scheme.

How is Pyramid Schemes Working?

There will be a person. He should add new members under him. A new entrant should invest in them. A share of the invested money will go to the referred person. And new entrants should add many others below them. This time, new members will invest. A small amount of that money will go to the person who referred them and the person above him. It works on this basis. It is called Pyramid Scheme because it looks like a pyramid when viewed through a diagram.

How is Pyramid Schemes Working

For example, a person named X adds Y, Z below him. Persons Y and Z invest here. The invested money reaches X. And person Y adds A and B under him. Their money reaches Y and X. And person Z adds C, D, etc. The money they invest will also reach Z and X. It goes on like this.

Here it is impossible to continue, and many people lose their invested money and end up in misery.

The Legitimate Affiliate Marketing

Affiliate Marketing Foundation

Affiliate Marketing is a revenue-sharing activity. Here a person permits to promote his product or service to others to spread it to more people. They promote it and get sales, thus he gives commissions for sales. Therefore the manufacturer of the product gets sales. And the person who promotes it also gets income. Both benefit here.

How is Affiliate Marketing Working?

It works in the usual way. Here you have to join an affiliate program, select your product, and get its unique link. Then that link should be promoted using various strategies like social media marketing. If someone purchases that product, the commission will reach the promoter.

Misconceptions of Pyramid Scheme.

Misconceptions of Pyramid Scheme

Erroneous Concept – 01 – Dependable Income.

Dependable income is one of the main misconceptions given to people by Pyramid Schemes. Those who join here register false ideas that they will get income and incite desire in people’s minds and trap them in their net. But affiliate marketing is different. Depending on your hard work, persistence, and strategies you can earn a steady income. If you work harder you have to make more.

Erroneous concept – 02 – Recruitment

In Pyramid Scheme, recruitment is essential and not emphasized in promoting the product. You can consider returning your invested money only if recruitment occurs here. But affiliate marketing focuses more on promoting products or services. You can start affiliate marketing without any investment. So here you don’t have to lose.

Erroneous Concept – 03 – Lack of Product

They only showcase the products to hide their actual method in Pyramid Schemes. And here, there is no relation to selling a product. Affiliate marketing is bringing quality products and services to the people. There are a reasonable number of products here.

Erroneous Concept – 04 – Unsustainable.

They promise to be able to continuously recruit in the Pyramid Scheme and make them invest in it. But it faces a series of declines and fails as there are many problems in recruiting beyond one stage. But because of showing interest in promoting affiliate marketing products, it is getting many sales and good reviews from people.

Real-Life Examples

Affiliate Marketing Success Stories

Many content writers, social media influencers, and website owners earn their income by promoting the best products and services suitable for their niche and becoming trusted. You can find more successful affiliate marketer’s stories on YouTube.

Failure of Pyramid Scheme

Many people invested and lost their money due to pyramid schemes. And cases like the “Bernie Madoff Investment Scandal” and the “Zeek Rewards Scam” keep reminding us of the dangers of Pyramid Schemes.

How to identify a Pyramid Scheme?

Be attention.

They promise to earn high returns just by investing without any effort required. And they are more interested in recruiting new people rather than promoting products. So be careful with those who do such activities.

Do Research

Before joining a company you should do research. Primarily it would help if you researched those who insist on investing. One should associate with them only after knowing their true nature. Reliable companies will share with you all the information related to them. And they won’t pressure you to come and join right away.

products or services.

A reliable company aims to sell its product or service. not focus on recruiting new people and investing. you should consider these things, is the company focused on products or focused on recruiting new people and investing?

Rules and Regulations


Engaging in a Pyramid Scheme is illegal. Officially announced the Pyramid Scheme is fraudulent. If you are involved you will be fined and severely punished. Before starting a business understanding the laws of it is essential.

FTC Guidelines for Affiliate Marketing

The Affiliate marketing guidelines are provided by The Federal Trade Commission (FTC). Affiliates must disclose their relationship with businesses And provide great reviews. If you fail to provide it you will damage your reputation.

Reporting Pyramid Schemes

If you find companies providing Pyramid Schemes, immediately report it to the authorities. By doing this you can protect many people from such scams.

Conclusion for Is Affiliate Marketing a Pyramid Scheme?

Everyone asked Is Affiliate Marketing a Pyramid Scheme? Above I have given a complete explanation of the question. To make money online differentiating between legitimate affiliate marketing and fraudulent Pyramid Schemes is essential. You can find the next step in the future by understanding the differences between these.  If you expose your efforts in Affiliate Marketing you can earn more income. And don’t get fooled by investing your money in Pyramid Scheme.

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