Although ClickFunnels relies heavily on affiliate marketing to market its software, it is not a pyramid scheme nor a form of Multi-Level Marketing (MLM).
ClickFunnels is a sales and marketing tool that uses a Software As A Service (SaaS) business model. ClickFunnels offers subscription-based access to tools that help convert leads into sales.
ClickFunnels also makes heavy use of its solid affiliate program, from which some of the concerns and misunderstandings arise.
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ClickFunnels Marketing Approach and Pyramid Scheme Concerns
ClickFunnels has an affiliate program in place that rewards internet marketers who promote the platform. Marketers can earn a monthly commission of up to 40%, depending on their success rate.
This tempting offer has led to the publication of multiple articles online. For instance, several posts on platforms like Quora and Reddit (pictured below) relate to the high frequency of ClickFunnels advertisements/ sponsored posts.
As a result, some people have questioned the legitimacy of ClickFunnels since some of its affiliates seem to promote the product solely for financial advancement rather than based on its strengths. This phenomenon adds to the misleading impression of people recruiting others just to get paid.
Before we started using ClickFunnels for ourselves, we were also skeptical about it. However, we quickly realized that ClickFunnels is everywhere because of its strong marketing approach.
It gets an undeserved negative reputation because of the affiliate marketing “gurus” who present ClickFunnels as the be-all and end-all of the marketing world.
ClickFunnels is a highly effective tool that simplifies and speeds up the building of a high-converting sales funnel.
Here at SupplyGem, we are long-time users of ClickFunnels and believe it is a market leader for the intersection of features, functions, and ease of use.
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How is The ClickFunnels Affiliate Marketing Program Different From a Pyramid Scheme?
As we mentioned above, people are often wrongly worried that ClickFunnels’s affiliate program might be a pyramid scheme. This claim is unfounded as affiliate marketing differs from pyramid schemes.
Here are a few verifiable reasons why the ClickFunnels affiliate marketing program is not a pyramid scheme:
- Marketers who join the affiliate program are not required to invest in or purchase anything from ClickFunnels to get started.
- The ClickFunnels affiliate program rewards marketers with an increased commission percentage for helping make more sales, not for recruiting new affiliates.
- ClickFunnels is a legitimate SaaS company with a real product.
- The ClickFunnels affiliate program is a two-tiered system that works in the following way: If an affiliate link leads to any purchases or sign-ups, the marketer earns a commission.
- New buyers do not dilute the sales made by affiliates, and all marketers have to abide by a set of rules.
- The affiliate program only consists of two tiers. This is unlike traditional pyramid schemes, which have hundreds and even thousands of complex tiers.
As you can see, ClickFunnels is significantly different from a pyramid scheme.
ClickFunnels and MLM Affiliations
It is important to understand what Multi-Level Marketing (or network marketing) means to understand why people sometimes link ClickFunnels with MLM affiliations.
Broadly, we can describe multi-level marketing as a direct sales strategy where companies promote products through existing resellers who further recruit new resellers and are then paid a percentage of their recruits’ sales.
In this model, commissions always flow upwards through multiple levels of reseller “uplines,” and the primary path to success is recruiting new people rather than increasing your sales.
Businesses with this practice have been the target of lawsuits and overall distrust from the general public due to alleged poor product quality and a perceived similarity to illegal pyramid schemes.
To add to the confusion, in recent times, ClickFunnels has increasingly become the favored platform of network marketers.
However, it is not uniquely suited to network or “multi-level” marketers, and it excels for traditional businesses.
For example, it works well for real estate brokers, lawyers, and drop-shippers, to name a few.
Since this is a highly controversial topic, we hope that this article serves as a starting point for a deeper understanding.
We encourage our readers to read and consider multiple perspectives when there are conflicting opinions before assessing.
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Is ClickFunnels a Scam?
No, ClickFunnels is not a scam. ClickFunnels is a 100% legit SaaS company. It is primarily an online marketing platform that allows users to design all-in-one sales pages and funnels with ease. ClickFunnels also offers a wide range of sales tools, third-party integrations, and training programs.
However, a few things have drawn some regrettable but understandable skepticism.
This skepticism has been particularly driven by ClickFunnels’ overwhelming popularity, coupled with inflated claims by some affiliate marketers that it is a silver bullet to transform users into successful entrepreneurs.
While it is an excellent product and service, ClickFunnels is not magical – it won’t solve all of your worries or miraculously transform your business.
However, business owners with outdated websites struggling to generate traffic and make sales can easily create high converting funnels with ClickFunnels.
It is also important to note that the success a user garners from using the platform depends on their specific goals, marketing strategy, and target audience. Achieving set goals in the online marketing world depends on various metrics.
As digital entrepreneurs and internet marketers, we need to keep close track of what’s working and what not to tweak our strategies.
Bottom Line
ClickFunnels is a legitimate brand of the Etison Company LLC, co-founded by the popular digital marketer and author Russell Brunson.
ClickFunnels is a big name in the digital marketing world for a reason – it is an intuitive and reliable platform with exceptionally easy-to-use funnel-building software worth trying.
In summary, we at SupplyGem back the legitimacy of the brand, the reliability of the online platform, and the tools it provides.
We recommend ClickFunnels to anyone looking for a comprehensive platform to create landing pages and set up sales funnels with ease.
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