Do You Know the Difference : Affiliate Marketing And Network Marketing ?

When looking for ways to make money online you will certainly come across countless opportunities in affiliate and network marketing. To a newbie or not so newbie seeking home business opportunities, it’s easy to get confused over the many terms and definitions used. If you are not quite sure how these business models work, then you need to read this article.

There are distinct differences and it’s essential to understand them. The best way to explain them is in terms of how compensation is paid. Knowing this information can help you decide which one is a better fit for you.

What Is Affiliate Marketing?

In affiliate marketing, you are marketing the products/services of another merchant. You get paid a commission when a customer purchases that item through you.

Some affiliate marketing programs feature 2 levels, meaning you not only make money on the sale; but you can also make commissions on the sales of that customer should they sign up to become an affiliate as well.

For example, you will earn commission when you sell the product to customer A and if customer A signs up to be an affiliate and manages to sell to customer A1, you get compensated too, in addition to person A. You will not make any money from the sales of Customer A1, should they sign up as an affiliate too.

Most affiliate programs are free to join and the products are easier to sell because they are typically low-cost. There are thousands of products that you can be an affiliate for and commissions can range from 20 – 75% per sale.

However, it’s a one time transaction only. So you must continually look to promote the next big product since there is typically no income from residual sales.

A “super affiliate” is one that is able to generate thousands of commissions by himself. An affiliate marketer is in business for themselves and by themselves. They do not have the benefit of leveragingthe work of others.

Affiliate marketing also does not require you to interact with people, so you are not really building a rapport with your customer base.

Although as a bonus from buying through them, some affiliate marketers may offer personal coaching or some one-on-one time, that is not the objective. It’s all about the sale.

Plus, they understand that most people won’t take them up on the offer anyway. It’s like the rebate offer. How many of us actually take the time to fill them out and mail them in? A very small percentage, which is why stores offer them mainly by mail only. They too understand that the objective is only the sale. So they offer a discount by rebate, knowing all the while, you won’t even turn the darn thing in.

What Is Network Marketing?

With network marketing, you must like people and want to build residual long-term income while leveraging the work of others. The main difference between network marketing and affiliate marketing is that in network marketing you are building a downline of distributors.

You cannot build a downline of affiliate marketers to have residual income. Consider network marketing if building a large organization is attractive to you.

In network marketing you not only get get paid to sell products, but you also make money as products move through your downline.

This includes reps you personally sponsor and your downline distributors which can go several levels deep. Exactly how many reps and levels you can earn money on will differ from one mlm company to the next. It can be several levels or unlimited.

The advantage of using multi-level compensation is that you are able to leverage the work of your downline. It was John Paul Getty who said “I’d rather have 1% of the effort of 100 men than 100% of my own effort.”

This is not an easy feat however. There are many factors at play, chief among them being choosing the right mlm home based business, with the right product and leadership.

Retention and recurring customer use is what provides true residual income in network marketing. After an initial investment of 12-36 months of hard work, the network marketing business model can generate earnings for a lifetime. With a solid network marketing company, residual income is almost guaranteed.

Network marketing is essentially a people building business. You build people and people build your business. As you continue to help them meet their goals and develop strong relationships, your ability to make huge sums of money will increase substantially as your network grows.

With affiliate marketing, your income is limited. With that being said, if you truly have no interest in connecting with and helping others or if you’re solely driven by making money, please for the sake of the network marketing industry, become an affiliate marketer.

However, if the idea of long-term residual income, the ability to meet new people, build great relationships, the fulfillment you get from helping your team members build their business, and steady growing paychecks sounds appealing to you, then be a network marketer.

But, here’s the thing…

You don’t have to choose. You can combine the power of both as your team builds. My Lead System Pro not only teaches cutting edge online marketing strategies, but it has an affiliate component to you which allows you to earn income as you build your network marketing team.

Which One Is Best For You?

But, here’s the thing…

Information sources : Thealphanetworkeralliance