Differences Between Affiliate Marketing And Network Marketing
In recent times a new industry has emerged and is growing with speed. It is Affiliate Marketing.
This is not network marketing as some mistake it, it is different.
There are a number of differences between Affiliate Marketing and Network Marketing
In Network Marketing, you can earn residual income on a sale but in Affiliated Marketing it is a once off earning??
Network Marketing highpoint is leveraging on other people’s skill, time, money etc. Affiliate is more individual centre. It does not have to worry about other people.
There is some peace there right??
In Affiliate Marketing, no headache about team building, recruiting and attrition which are some objections Network Marketers encounter.
Which would you rather do?
They are two different income streams though.
Affiliate marketing is simply selling other people’s product and earning a commission. So your work as an affiliate is simply connect a buyer to a seller and you earn commission for doing so.
On Expertnaire affiliate marketing platform, for example, you can earn as much as 15k, 20k, 30k, 50K commission per product you sell.
? Affiliate programs allow those not directly associated with a company to become an independent sales representative for that company, and more importantly, earn money on the sales that they generate.
How affiliates drive traffic is entirely up to them, and whether they choose to stay active also depends on the affiliate.
?There are two major ways in which companies coordinate their Affiliates.
Amazon runs their own affiliate program, which means those who want to promote Amazon products sign up directly with the company, whereas other companies, such as eBay run their program through an affiliate network.
? The structure is still the same for the affiliate – whether direct or through a network, i.e., they both receive payment for revenue made, but working through an affiliate network often comes with additional benefits, including access to additional companies to promote, account managers to help with growth, and sometimes conferences the network puts on to get affiliates together and share information.
The conference might cost a NOMINAL AMOUNT to attend but becoming an affiliate does not. Smart companies and networks do everything they can to leverage this commission based, outsourced sales force.
Network marketing shares MUCH IN COMMON with affiliate marketing.
? With affiliate marketing, users receive cash for their efforts – whether it be driving sales or signups.
? With network marketing, users receive points first, then cash.
? What they physically earn is based on a complex system tied to not just how much product they move but how that product moves within their mini-organization.
Network marketing revolves around how many people are actually in your network, i.e. how many you sign-up under you and how much product these people sell through their network.
? It’s free to join some affiliate programs but not free with networking marketing companies.
? Money comes through sales with both, but:
?With affiliate marketing one earns CASH only;
? With network marketing, one earns cash BUT the amount depends not on the product moved but on whether those sales come through a network of other people – their downstream.
?The two, affiliate marketing and network marketing, also differ on distribution, i.e. traffic, and the proximity of that traffic.
A quick recap – so far, we’ve seen that affiliate marketing and network marketing sit on the same spectrum of generating revenue through an outsourced, commission-only sales team but that the two sit on opposite ends of that spectrum on how they accomplish this.
?Affiliate marketers focus primarily on the web, and for the most part, on their ability to get people they don’t know to continue to a merchant’s site through their link.
? Network marketing couldn’t be further from that. As the term implies, it’s all about the network. In fact, some companies discourage anything but one-on-one selling and has set up their organization to make it difficult for those who can move a lot of product online to do so.
?Using your own affiliate link to buy goods from places you already shop is actually a good idea, but it’s not common or actively encouraged within affiliate marketing.
Why?
Because doing so is the equivalent of receiving a small discount. Discounts are nice, but real money does not get earned that way.
There are two other KEY DISTINCTIONS between affiliate marketing and network marketing. And they are:
? MONTHLY QUOTAS
Another difference between affiliate marketing and network marketing is that with affiliate marketing, if you don’t sell any products, nothing happens.
You aren’t ‘demoted’ to a lower rank (because there are no ranks), you don’t lose your previously-earned commission, and you aren’t booted from the company.
All that happens if you make zero sales in a month is that you don’t make any money that month.
? With network marketing, you have to hit a minimum sales quota each month (this is usually called ‘personal volume’ or ‘qualifying volume’ but it all really is a sales target).
If you fail to meet this target, you will either lose your rank in the company, not receive your commission, or even be kicked out of the company.
? NUMBER OF BUSINESSES YOU PROMOTE
?As an affiliate marketer, there is no limit to how many companies I promote. Although it is still a highly competitive industry, there are an infinite number of things that you can promote.
? With network marketing, most network marketing companies either restrict you from being part of another MLM, or they have strict rules about promoting another company’s products or ‘business opportunity.’
What’s more, promoting more than one network marketing company will make it look like you are unsuccessful in both, and just doesn’t send a great message to the people who might be considering signing up to your team.
? Generally, people in network marketing only promote the products from one company, while affiliates have the freedom to promote as many companies as they like with no adverse effects.
? You could build a website dedicated to anything from gaming laptops to coffee tables, house plants to power tools – whatever your passion is, you can create a niche website dedicated to that passion and begin promoting and reviewing products that your readers will find relevant.
SEE ALSO : Best Way To Make $100 Daily With Affiliate Marketing
As long as you are committed to consistently writing content, learning SEO and putting in the hours needed to build a profitable site, there is nothing stopping you from making 6, or even 7 figures a month!