What is the Difference between Affiliate and Network Marketing?

Many of us can be overwhelmed by the online income opportunities offered on the web. There are many different ways you can create an income. One way is through network and/or affiliate marketing. If this is for you, it is a good idea to know which or if both are a good fit for you.

Affiliate Marketing

In affiliate marketing, you are the distributor or marketer of someone else's product. When a consumer purchase the product through you, you receive a commission or referral fee. These are normally single level commissions. Your commission rates can be anywhere from 15% to as much as 75% depending on the products you are selling. The benefit in affiliate marketing is that most of the time you can join as many as you like and most are free to join. It is recommended for you to purchase the products you are selling but not required.

The downside is it is only a transaction. At this point you will need to continue to promote this product to the next potential buyer in order to continue your income stream. Normally there is no residual sales in affiliate sales.

Overall, the primary focus is in obtaining the sale. For the most part you work for yourself. It does not require you to build relationships with others.

If you prefer to work for yourself, than affiliate marketing may be for you.

Network Marketing

In network marketing, the focus is more on relationships rather than sales You build and develop your downline and in return they build your business.. In network marketing you are affiliated with a product or service. In this approach you do not work by yourself. You work with others. In this approach your focus is to build a downline of marketers to sell as well. From their sales, you will receive a percentage of each of their sales.

With some companies you can earn from multiple levels of commission. The biggest benefit to network marketing is the potential for a residual income. This means each month you would receive an income from the work of your downline. With a few great leaders below you, you can benefit from their success. These companies are known as MLM or multi level marketing. The advantage of network markeing is that you are able to leverage the work of your downline.

Normally, if marketed correctly and developing your downline, most can generate an income for a lifetime after several years. It makes it worth the several years of hard work in building your group and in the end you benefit from the rewards of doing so.

If they idea of a long term income, creating relationships with others and teamwork sounds good to you than network marketing may be for you.

In the end, neither is the right answer. It is only what is right for you. Some choose one over the other while others use both methods in the practice (like I).

My name is Laura and I have been an online owner for 8 years now. Please feel free to visit my blog for more advice on online marketing tips. Education is an absolute key to your success in online marketing and sales. The worst think you can do is jump without learning how to jump!


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