If you are fairly new to world of online business and entrepreneurship, you may be confused by all of the terminology surrounding different business models. Affiliate Marketing, Network Marketing, MLM: what do these all mean? This article should help clear things up and give you a better understanding of each business model.
Affiliate Marketing: There is usually no cost to sign up as an affiliate; although it is assumed that you have purchased the product and can attest to its quality.
Network Marketing: You will likely need to purchase a starter kit with sample products and marketing materials. The cost varies depending on the company, but generally can be anywhere from $50 – $800.
Affiliate Marketing: You promote the product on your website, with the ultimate goal of selling to as many customers as possible.
Network Marketing: Generally, the main goal of a network marketer is to recruit other people into the business, so you can make money not only from your sales, but from theirs as well. This is known as ‘passive’ income.
Affiliate Marketing: You must constantly search for new customers. Your income depends on how many sales you make each day/week.
Network Marketing: Many companies have products that are ordered every month for their customers, so you are assured of monthly income. Even if you did not gain any new customers this month, you still have an income.
Affiliate Marketing: Business is done entirely on the internet. Your website can fully explain the product and company, and there are generally no restrictions, aside from being honest and truthful in your marketing.
Network Marketing: Many companies prohibit their name from being listed on your own website, and some are very strict about what you can and can’t say about the company and products in your marketing. Business is conducted both online and offline.
So, what is MLM? Mainly, it’s just another term for network marketing; the main goal is to recruit others into the business, not just sell products. You’ll have to do your own research to decide which business model is right for you. There are pros and cons to both types, and both can provide you with a lucrative income. Beware of those who say you can get rich overnight or that it doesn’t take a lot of work to be successful. Quite frankly, those people are lying to you.
Whatever business you choose, you are going to have to put in some blood, sweat and tears to get it going and make a good income. You’re going to have to experiment with different marketing strategies, and yes, you’re going to have to spend some money. You will constantly have to tweak your marketing methods, as new techniques are always being discovered; the internet is so fast-paced, that what works today may not work next week. One thing is for sure: if you want it bad enough, you will make it work for you. Never give up your dreams and constantly remind yourself of why you started this business.
Johnny Guyzer loves affiliate marketing but loathes network marketing. You can read more of his publications on topics such as term life rates and how to get affordable health insurance using insurance comparison services.