The confusion between affiliate marketing and network marketing or multi-level marketing is quite interesting. Some people even think affiliate marketing business and network marketing businesses are scams. While others think they are one and the same with different names. In this article, we will discuss and look at the definitions, distinctions and some misconceptions. At the end of this article, we should have been able to provide some clarity.
What is Affiliate Marketing?
Affiliate marketing is a performance-based marketing system in which a business rewards a person(s) or affiliate(s) for each visitor or customer brought by the person’s own marketing efforts.
What is Network Marketing?
Network Marketing is totally different. Here the marketer becomes associated with a certain product that they like or believe in, which they then buy from their supplier and resell to the public at a profit. Before the marketer starts selling products of a larger company, he/she signs some paper work which gives him/her a small franchise of the large business.
Differences between Affiliate Marketing and Network Marketing.
In affiliate marketing, affiliates are not selling any product directly. They are simply the mouthpiece, or the advertising board that tells people where to go and buy products. You will not have to purchase anything, but you will still make money just for telling people where to go get a product. Affiliates get a commission when the person that they refer to a website buys something, so in this way the company is paying for a good lead and they will be paid generously.
In network marketing, the foundation is in growing a team. You can start with one person (also known as a down-line) who then introduces the next person and that person introduces another and the chain goes on and on. The beauty of network marketing is that it is a game of numbers. The more individual down lines you have under you, the bigger your team, the more money you make.
Another difference is that in affiliate marketing, commissions are paid usually on single level depending on business laws in different countries.
In network marketing, commissions are paid on infinite levels of down lines. The “deeper” you build the closer you are to residual income.
Which brings in More Money?
Depending on your business goals, affiliate marketing can make you a decent fortune in a few years if can get a good number of customers to buy your affiliate company’s products.
While Network marketing can generate an income more than you can comprehend if you consistently work hard at it. If you happen to belong to the top 10 network marketing business that are structured, a good one should have a rare provision in their company policy like making the business will-able. So you work the business and after you stop working it, you can hand it over to the next person. And that person does not start from scratch but continues from where you stopped. A recommendation of one of such companies can be found at the end of this article.
What Affiliate Marketing and Network Marketing Are Not.
Whether you decide to do affiliate marketing or network marketing, once you have a good understanding of each, you will be sure that:
1. It is not a pyramid scheme.
2. It is not a “get rich quick” business.
3. It is not for non business minded people.
4. It’s not for those that want a “nice-play-thing” kind of business.
5. It is not a one man’s show. It needs people with common business goals to thrive.