Tag: network marketing

What is the difference between Network Marketing and Affiliate Marketing?

THIS IS A GREAT QUESTION and I wish more people would understand the significant differences Affiliate Marketing and Network Marketing. They are NOT the same.

Here is the simple difference in my opinion.

AFFILIATE MARKETING – You earn your money from directly selling products and services. There is not recruiting involved, unless you are an affiliate broker.

NETWORK MARKETING – You earn your money from selling products directly as well as a percentage of the products sold by people you recruit.

The main differences in the two models, is the recruiting of other marketers.

With Affiliate Marketing it is 95% direct sales of products and services and maybe 5% or less time spent recruiting other marketers. With affiliate marketing, you are NOT REQUIRED to recruit other marketers. With affiliate marketing, you do not need to own or use the products or services.

With Network Marketing it is about 90% focused on recruiting other marketers into the network, and maybe about 5% direct selling to public. Most of the time, energy and money is focused on recruiting more marketers. With network marketing, you are usually required to purchase the products and services.

Personally, I’d prefer the flexibility and freedom of the Affiliate Marketing model.

SynergyCollaborative.com

Minneapolis Minnesota

MagicBrad

I am not even going to pretend to be a network marketing pro because I have a love-hate relationship with MLM.

What I love about the multi level marketing also called network marketing industry is the community of people seem to be very excited, passionate and have a positive Mindset.

What I hate about multi level marketing or network marketing is the pretentious attitude of success. The business model is usually flawed. There is not enough margin to make money on the product. And the majority of the organizations are focused on recruiting, recruiting, recruiting.

Ironically, the same thing that makes MLM work, is the same thing that makes it not work. And that is the multiple levels.

As soon as an organization gets past the second level, it begins to fall apart.

For this reason, I prefer the Affiliate Marketing Model where the focus is on the product, and once in a while you might recruit someone into the promotion of the product.

From what I have seen in comparison of affiliate marketing versus network marketing, as with affiliate marketing the passion is about the product, whereas multi level marketing and network marketing, the passion is about the money, money, money.

Also, in network marketing, it seems like there is never ending training and this is what keeps people in. They are constantly learning how to recruit. Recruit, recruit, recruit. The products are often times overpriced.

By the way, this is my personal opinion. I could be wrong, but I’ve never had much success myself with network marketing.