Network Marketing vs Affiliate Marketing

When first starting out in your search for a home based business, you will more than likely come across two different Business Models to start creating an online business. These two Business Models are Affiliate Marketing and Network Marketing. Anybody who has ever researched making money online has heard of these two business models.

They are two very different models, each offering their own pros and cons. Let’s explore the differences and see which one is the best choice for you personally.

Below is a quick comparison of the two.

Affiliate Marketing

Let’s start with Affiliate Marketing. The simplest defintion is when a company pays you when any individual buys from your link to that company. So for example...let’s say I’m a affiliate for Amazon.com and somewhere on the internet I posted a review on a certain product I used and placed my Amazon affiliate link along with this post.

Now everytime someone clicks on that link and buys that product, I will get a percentage of the sale. There are many BIG name companies that use affiliate marketing as part of their marketing strategy and have affiliate programs, …….. Amazon, Walmart, Target, Ebay, to name a few and I even recently found out that Kay Jewelers has a affiliate program.

Just scroll to the bottom of any companies website and chances are they have a link to join their Affiliate program. There are also many Affiliate Marketing Networks such as ClickBank.com, CommissionJunction.com, ShareASale.com where they offer digital products and physical products from numerous companies to promote as an Affiliate.

PROS

-Start-up is very easy in affiliate marketing. There is no cost to join an Affiliate Program and there are endless ways to promote affiliate products online. Free and Paid ways. You can learn as you earn. So you can start off using free to very cheap marketing methods. Therefore as you learn and become more confident you can scale up.

-You can do this type of business anywhere you have a computer and internet connection.

-Hassle FREE- the company or merchant is responsible for everything from customer support, shipping, and they even provide marketing materials.

-Never have to talk to anyone if you don't want to in affiliate marketing, all done online. The same can't be said about network marketing.

-Opportunity to make Passive income. You can really have a 24 hour business that’s always working for you.

CONS

-It takes work. I list that as a con, because a lot of people don’t understand the concept that anything worth having is worth working for. No it doesn’t mean working 80 hours a week. But It doesn’t mean working one day a month either. The work gets easier and shorter as your learning grows. The best thing is once the work is done today, it’s something that will pay you for years to come. There is no magic bullet and Affiliate Marketing is not a get rich quick scheme.

-You work alone and being focused can become an issue with some people.

-Illegal Practices….as in all walks of life there are bad apples everywhere. In the Affiliate Marketing world this includes people who use false advertising, content stealing, spamming, and the hijacking of your Affiliate Links.

-Affiliates not getting paid. Unprofessional and Immoral Merchants can disappear overnight with no warning. Therefore leaving commissions unpaid . It is a non issue though if you do your research on the products and creators of the products you promote.

-Competition is high in many Niches. Since it's free to join an Affiliate Program, that means there are many people promoting the same products. Doesn’t mean there is saturation.  Just means the competition is high. (I think competition is a good thing as it shows money is being made)

Network Marketing

Network Marketing which is known by many as Multi-Level Marketing or MLM for short has been around long before we ever had the internet. Company names like Amway, Herbalife, or Avon should all sound familiar to most people reading this. A simple explanation of Network Marketing is basically a business model that pays a percentage of the price when a product is sold by you or by somebody you recruit into the business.  Now every Network Marketer will tell you money is only made when the company’s product is sold. If you look a little closer though, it comes apparent where the money is being made. Which is when someone joins the business under you. Network Marketing’s main income potential comes from how many people you can recruit into the business. Which to join the business you have to buy products. The products I have seen some Network Marketing Companies associated with…..it’s very apparent the products are in place for legal reasons only. 

So for example ...You join a Network Marketing Company that sells nutritional products. You go to your friend Bob and tell him about these products, but you also tell him how he can make money from these products by doing what you’re doing. Which is recruiting uhhhhhh I mean selling nutritional products.  So now if Bob wants to join he has to sign up to buy a certain amount of products each month. Which you will then get a commission off his products and then on and on.

I’m not calling Network Marketing a scam, there are some good programs out there that actually have some good product. My opinion though is that most of these products could be purcahsed at walmart and at a cheaper price. To me it’s just a recruiting game.

PROS

-You can make a passive income, by recruiting people who do recruiting and selling for you. Basically you are building a sales team. There are people who make good money with Network Marketing. The opportunity is there.

-It can be built anywhere you have a computer, internet connection and cell phone.

-Isn’t expensive to start, while there are costs in joining.. It's a lot cheaper than buying a Franchise.

-Longevity, the big time Network Marketing companies have been around for decades and if they have a good name, that can benefit you in building a business.

-Hassle FREE- Like Affiliate Marketing the company is responsible for everything from customer support, shipping, and they even provide marketing materials.

CONS

-Bad Reputation, this business model is known in many circles as a Pyramid Scheme or Scam. Although many are not scams, the model itself isn’t doing it any favors and although I listed Longevity as a PRO it’s also a CON as the Industry has a shady Past.

-Old School Methods, while most companies are starting to use new technology...many still use outdated methods in their teaching of the marketing to use...such as Hotel Meetings, Home Meetings, Conference calls, ETC.

-You have to like talking on the phone, although there are methods that eliminate this, most members still use the phone for business building and teaching.

-Sometimes you have to become a teacher, if you join under a “team” that has no training system in place, you will have to train your new recruits yourself, as the companies in Network Marketing do a horrible job at this.

-Products…..as mentioned most of the products you can buy at places like walmart and at a much cheaper price. Just think before you join a Network Marketing Company…”Would I buy these products if a Opportunity to make money wasn’t involved?”

Conclusion

In conclusion I feel affiliate marketing is the easiest and most simplest way to start making money online. And the one that requires the least effort.

I would choose affiliate marketing over network marketing. I have been involved with both and as a result if I had to start over I would choose affiliate marketing.

Affiliate marketing and creating my own products is what I do now, so maybe I'm a little biased.

To Your Success,

Joshua