Jul 04 2011

What is the Difference between Affiliate Marketing and Network Marketing?

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.

12 Responses to “What is the Difference between Affiliate Marketing and Network Marketing?”

  1. Jez Lister says:
    July 4, 2011 at 7:29 pm

    An interesting article. I think you still have to read the small print when dealing with those guys as it is the contract definition that really matters. That said, this article certainly helps to differentiate.

  2. Evan Griffin says:
    July 5, 2011 at 3:49 am

    This is very interesting article…I almost read every letter of the blog…I a hoping you can post more of this kind…

  3. johnysmith10119 says:
    July 5, 2011 at 12:42 pm

    YOU sure did made it simple to give the exact difference between the two. I had a hard time figuring things about this by myself….

  4. Steve says:
    July 14, 2011 at 8:56 pm

    Thanks for this article – the difference between those marketing strategies became much clearer to me!

  5. http://fingermarketing.com says:
    July 15, 2011 at 3:31 am

    AHH now i know affiliate marketing concern is to sell and sell their products while the network marketing focus first to the membership to the people who want to join their business. What is the primary advantage of the network? the loyalty of the member?

  6. Cher Shives says:
    July 27, 2011 at 1:12 am

    Thanks for the very nice article you have provided us here…

  7. Blackfoot says:
    September 4, 2011 at 2:17 am

    Web sitesi ve online pazarlama ba?ar?s? için en iyi tavsiye

  8. Michael says:
    September 6, 2011 at 5:29 pm

    One of the best aspects of Affiliate Marketing is not having to worry about having to provide a customer support function. Remember, the vendor, or merchant, owns the product that you’re promoting – he/she has the hassle of this.
    Good luck with your efforts.

  9. Johnny Jefferson says:
    September 8, 2011 at 10:47 am

    Exceedingly useful appreciate it, I believe your trusty subscribers could perhaps want a whole lot more articles like that carry on the good effort.

  10. Tim Anderson says:
    September 8, 2011 at 6:59 pm

    Astonishingly useful many thanks, I believe your current audience could perhaps want a good deal more writing of this nature maintain the good content.

  11. Gabriel Cole says:
    September 9, 2011 at 1:03 am

    Outstandingly enlightening appreciate it, I do think your audience will probably want even more posts similar to this keep up the good hard work.

  12. compensation plan thefinalmatrix says:
    September 10, 2011 at 3:24 pm

    Surprisingly helpful thanks, I believe your current audience might probably want more posts along these lines maintain the excellent work.