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Affiliate Marketing vs Network Marketing

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Affiliate Marketing vs Network Marketing

  • What exactly is affiliate marketing
  • Advantages of affiliate marketing
  • What exactly is Multi-level Marketing (MLM)
  • Is Multi-level Marketing just a pyramid scheme?
  • Advantages of Multi-Level marketing.

This subject has appeared quite often on the web recently and we thought it is better we show you the variances and contrasts of Network Marketing and Affiliate Marketing. This article also sheds light on which is more lucrative. Most of you who visit our site already know that we are into Network marketing or MLM software, to be precise. Most of the information you find on the internet are presented by multi-level marketing (MLM) software providers. In this critique, we are going to describe these two widespread marketing platforms, and educate you which one is likely to prove better for you in due course.

 

What Exactly Is Affiliate Marketing?

 

Let us look at a hypothetical scenario. Individuals search on Google for information on a day to day basis. It could be a research about a certain product or service before they pay money for it. It could even be examination of a company to make sure if they are legit. Just imagine what was the last thing you Googled and you will get the idea.

 

So here is the hypothetical scenario of Affiliate Marketing

  • You own a website with information on what people search
  • You are ranked reasonably well on popular search engines
  • This gives you credibility and make people click on your website
  • They read your content and gets interested to know more
  • For more information, they click on your “Read More” link (which is actually an affiliate link)
  • In the due course, they finally make a purchase
  • You get a commission from the affiliate because you directed the traffic

It is easily possible to sign up to become an affiliate for most accepted merchants like e-bay, Flipkart, Amazon, Myntra etc. You are actually helping these companies sell more products and naturally you are entitled get a commission. And this happens every time the visitors you redirect buys something from your affiliates. As you can see, this is one of the easily profitable and legitimate business models out there.

 

Some of the advantages of affiliate marketing

Limitless availability of products. With access to millions of products on the web, you are offered a wide variety of products to select from.

Indefinite potential to earn. The business is yours and you can grow it as big as you want. There is no limit to how much money you can make.

No marketing experience needed. This is a big plus. The users themselves do the marketing for you. With proper training, your website can start generating income within minutes.

Negligible investment required. There is hardly any upfront costs and your website is all you need to start generating profits. No need to set up an office or shop.

Low running costs and easy to maintain.

Autopilot business model. Once you set up your website functioning smoothly, it can run on its own. No need for any support personnel or such overheads.

 

What exactly is Multi-level Marketing (MLM)

 

Though there are some similarities to affiliate marketing, Multi-level Marketing delves a little deeper and intersects and becomes connected to the well-known pyramid schemes.

MLM is basically about recruiting people to join your team. The more team mates you enroll, the more income you get. Most likely, you were also signed up or recruited by someone like you. Once you join the team, it becomes your job also to recruit others to the team and into the business and get them to get others join your team.

No wonder you already feel that this sounds like a pyramid scheme. It is because MLM is almost borderline on being a pyramid scheme. But there is an element that makes this legal in every way and not getting branded as a pyramid scheme. And it is that the company always has a product or a few products and it is on the pretext of this product or products, multi-level marketers get you and others to join their team.

In MLM, nobody is there to train you on how to do the marketing and most of the time, the income you make will be through getting other people to join the team under you, making the pyramid grow. Though technically what you are doing is marketing the product, in reality it is about building your marketing team. You will also be getting paid when the members you recruited in turn recruits more members, and again when these members recruit more members under them.

 

Is Multi-level Marketing just a pyramid scheme?

 

As you probable have understood by now, you will be required to recruit lots of members under you and also make sure that they continue to work and not quit. This is why activities of most of the MLM have been disputed to be illegal and also why people end up losing lots of money rather than earning.

In MLM, you certainly are not building a long-standing profitable venture. You are simply depending on people below you in the team do the marketing for you. You will also be required to repetitively convince and recruit other people to join the team under you.

 

Some of the advantages of Multi-Level marketing.

There are only a few trustworthy MLM businesses out there. This means lesser competition and better chances at growth and profitability

All you need is people skills. If you are good at social relationships, you can easily recruit lots of members to your team and make some decent income.

Friends and family can be useful. If you are comfortable with enrolling your friends and relatives, then an MLM business is going to be something you would really enjoy doing

Gains from the effort of others. As your team grows, you will be profiting from the work done by the members under you and you might as well stop working. But the income would continue.

Zero investment to get started. All you need to get started in the MLM business is a phone and a few contacts. No other expenses involved, to start with.

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