Welcome to my Affiliate Marketing vs Network Marketing content!
You might have heard anywhere online Affiliate Marketing is associated with Network Marketing.
But you have to take note that these two income opportunities are far distinct from each other.
In this post, I will explain their differences and help you determine which one is better.
So without further delays, let’s begin…
What is Network Marketing?
How they work involves the direct selling of products or rendering of services. But most of the members’ income would be coming from recruitment.
Some of the popular Network Marketing companies that you may have heard of somewhere are Avon, and Herbalife.
Or, you may check out the full list here.
Is Network Marketing similar to a Pyramid Scheme?
Some of you might say that Network Marketing is essentially a Pyramid Scheme that disguises itself as a direct selling company.
Although I agree to some degree, they are different in regard to legality.
The flow of their business process is similar to a pyramid scheme whereby they need to recruit people and create a lower network.
As mentioned, the members’ primary requirement is because recruitment is the basis for their bonuses and commissions.
But unlike pyramid schemes, Network Marketing is technically legitimate because they also function as a direct selling company.
What this means is they offer something of value in return for the membership fee payment the potential recruit has to make.
And this value is in the form of retail merchandise, which the representative can sell for profits if they wish.
Now, this is in contrast with the motive of a pyramid scheme, which only involves capitalization and nothing else.
Instead, you will only receive a promise of high profits as a result of such investment. But this may only happen if you are able to recruit sufficient people under your network—that’s basically the catch.
Also, it is for this reason that the pyramid scheme is illegalized and banned in some regions around the world. It includes countries like the United States, Germany, Japan, Albania, and Australia, just to name a few of them.
Complicated compensation plans
Another characteristic that you may find once you join them is their convoluted and almost incomprehensible compensation plans.
In dealing with MLMs, you only have to remember two factors in regards to income—
- Recruitment – it is the most important factor of MLMs because it is where their potential income is based.
- Retail commissions – as mentioned, the company also function as a direct-selling company, which allows them to earn income.
Should you try Network Marketing?
Some might immediately associate MLMs with some people they met in the park or department, even their family or friends, which invites them to a certain event.
And then, telling that it’s about a business opportunity and that the admission is free, that comes along with free lunch. I know some of you can relate. I’ve been approached by them many times now.
And I didn’t give in because I am aware of how flawed the business model is.
According to the Federal Trade Commission, 99% of people who join MLMs are more likely to incur losses than gain any profits, as most of them promised.
And then they fail expectations because of two things—
Capitalization – MLMs require you to settle monthly membership fees. This becomes a problem if the representative is not earning anything.
Recruitment – this also becomes a concern if the people at the very bottom of the network were continuously failing to recruit sufficient people under them. It means that no income would be coming in if there are no new members coming in. This is especially true for members in the lower ranks.
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What is Affiliate Marketing? & How Does It Work?
Affiliate Marketing is an opportunity where you earn income by promoting other people's/companies' products/services through affiliate links.
Affiliate marketing is a win-win situation where everybody wins:
- A customer who is looking for a product finds the best one.
- Affiliate (you) earns a commission for recommending the product.
- The company you are promoting gets a new customer.
The best part about this business model is that you don't need to buy any product and you don't need to harass anyone to make money.
In fact, people will come to you!
And a lot of companies are ready to pay you to promote their products/services!
So why become an Affiliate Marketer?
Affiliate Marketing is the best way to make money online for a few apparent reasons, including the following:
- No risk!
- No upsells!
- You are your own boss!
- High profits!
- You can work in the comfort of your home!
- It yields a more stable source of income!
- You don’t have to worry about any hidden charges!
- Unlimited income because you can essentially promote as many businesses as you desire.
So in the battle of Affiliate Marketing vs. Network Marketing, who will come out victorious?
Let’s continue and find out…
Affiliate Marketing vs. Network Marketing—who will win the battle?
There are contents online that directly link Affiliate Marketing with Network Marketing. But you have to bear in mind that these two income opportunities are utterly different.
Unlike Multi-Level Marketing, where you only get to promote only one company, Affiliate Marketing allows you to promote as many businesses as you like!
Another difference is that it is performance-based and does not require you to recruit people.
What this means is that it is solely dependent on effort. You don’t need to do the embarrassing task of bothering your family members, friends, or even strangers.
A final distinction I could think of is that Affiliate Marketing is free, to begin with. And then, its recurring charges are way more affordable compared to those offered by Multi-Level Marketing.
Considering the abovementioned facts, Affiliate Marketing is the apparent winner against Network Marketing if you want to earn a high and more reliable source of income.
I hope my article about Affiliate Marketing vs. Network Marketing has provided you the answers you seek and help you in determining which platform to use.
As explained in the last section, Affiliate Marketing is way better than Network Marketing.
First of all, it’s risk-free.
And your chances of achieving financial freedom in Affiliate Marketing is through your own efforts (the harder you work the more you earn) and isn’t dependent on recruiting other people.
If you want to more about how Affiliate Marketing can benefit you, then you have to check out the following description
Well, I guess that’s just about it!
Thank you for reading my content about Affiliate Marketing vs. Network Marketing!