Affiliate marketing and network marketing are two different types of businesses. Here’s a look at both marketing models, which one is best, and why.
Choosing between Affiliate Marketing and Network Marketing
Quite often, people mistake affiliate marketing with MLM programs and think they are the same thing. Whilst the two models are a great way to earn money, there are some quite fundamental differences.
1. What is affiliate marketing
Affiliate marketing is a type of performance-based marketing in which a business rewards an affiliate for actions or purchases a referred visitor makes on their website. Typically, this is tracked with an affiliate tracking link in the form of a cookie.
The most well known affiliate program is probably the Amazon one, but there are thousands of others. The travel sector for example has many affiliate marketing programs you can join.
Marketers in this field typically develop an affiliate website targeting a niche, but some others add affiliate links to existing content. Affiliate marketing can be an excellent way of earning passive income without involving any person to person sales techniques.
2. What is network marketing
Network marketing, also known as multi-level marketing (MLM), is a type of direct selling in which a salesperson earns commission on their own sales as well as on the sales of the people they recruit, known as their “downline”.
A well known company using the network marketing model is Avon. Participants in network marketing typically join a company and then sign up other people to do the same. They then earn a commission on their own sales as well as a percentage of the sales of the people they recruit.
Network marketing can be an excellent way to earn income, but it does involve person-to-person sales techniques, which some people may not be comfortable with. It also means that your are tied to earning money in a non passive way, which may not suit people for whom time is a premium.
3. The benefits of affiliate marketing
Affiliate marketing can be an excellent way of making money online. You can do it entirely passively, meaning you don’t have to talk to anyone if you don’t want to. You can also make a lot of money if you are willing to put in the work.
There are some affiliate marketers who make over $1 million per year! And while that might be the exception rather than the rule, it shows what is possible.
Another great thing about affiliate marketing is that you can do it in any niche. There are affiliates for practically everything under the sun. So whatever your interests are, you can find a way to make money from them.
4. The benefits of network marketing
The network marketing business model also has a lot of benefits.
The main one is that it offers the opportunity to earn a residual income, which means you continue to get paid even when you’re not working. This can be extremely helpful if you want to have more time freedom or build up passive income streams.
Another great thing about network marketing is that it gives people the opportunity to build their own business but based on a bigger brand.
This can be extremely rewarding, both financially and personally. It’s ideal for people looking to supplement their income on a part time basis, and many MLM participants even work full time.
5. How to choose the right business model for you
So which method of promoting products is best for you?
Well, that depends on a few things. The main one is what your goals are.
Do you want to build a long term, passive income stream? If so, affiliate marketing is probably the best option for you.
Or do you want to supplement your income in the short term and have more time freedom? If so, network marketing might be a better option.
Of course, there are other factors to consider as well. These include your personality type, your skillset and how much time you have to dedicate to your business.
But ultimately, the best way to choose is to try out both methods and see which one you prefer.
6. Comparison of the two business models
Here’s a quick side by side look at the difference between affiliate marketing and network marketing:
Definition | Affiliate Marketing: A type of online marketing in which a person promotes products for a company in exchange for a commission. | Network Marketing: A type of direct selling in which products are sold through a network of distributors.
How it works | Affiliate Marketing: A person earns a commission on sales they generate. | Network Marketing: A person earns a commission on their own sales as well as a percentage of the sales of the people they recruit.
Earnings potential | Affiliate Marketing: Can be high if you are willing to put in the work. | Network Marketing: Can be high if you are willing to put in the work and build a team.
Time investment | Affiliate Marketing: Depends on how much time you want to dedicate to it. | Network Marketing: Depends on how much time you want to dedicate to it.
Pros | Affiliate Marketing: Can be done in any niche, passive income potential, low barrier to entry. | Network Marketing: Residual income potential, opportunity to build a team.
Cons | Affiliate Marketing: Requires time and effort to build up earnings. | Network Marketing: Requires time and effort to build up earnings.
Affiliate Marketer FAQ
Readers trying to decide if internet marketing is a better fit for them than multi level marketing often ask questions similar to:
Which is better network marketing or affiliate marketing?
There is no definitive answer to this question, as both network marketing and affiliate marketing have their own respective pros and cons. However, when it comes down to choosing between the two, affiliate marketing is often seen as the better option, as it is simpler and less risky. With affiliate marketing, you are not responsible for product inventory.
Is MLM and Network Marketing the same?
No, they are not the same. Network marketing is a business model in which independent contractors sell products or services through word-of of mouth referrals, while MLM (multi level marketing) is a business model in which participants earn commissions for both product sales and recruiting new members.
Can you get rich from affiliate marketing?
There is no guarantee of riches when it comes to affiliate marketing, but there is the potential to make a very good income if you are able to generate a lot of traffic to your website and convert that traffic into sales. However, it takes a lot of hard work and dedication to achieve this level of success.
Is affiliate marketing still profitable 2022?
Affiliate marketing is still a very profitable business model in 2022. There is still a lot of money to be made by those who are able to generate a lot of traffic and convert that traffic into sales. It takes a lot of hard work and dedication, but it is definitely possible.
Is multi level marketing a pyramid scheme?
No, multi level marketing is not a pyramid scheme. Pyramid schemes are illegal and involve people investing money in a company with the promise of receiving more money back from lower layers. Most schemes like this rely on an infinite number of participants, which is obviously impossible mathematically. Multi level marketing is a legal business model in which participants can earn commissions for both product sales and recruiting new members.