Affiliate Marketing vs Network Marketing

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Affiliate Marketing vs Network Marketing

October 31, 2018 Uncategorized 0
Affiliate marketing vs Network Marketing

Affiliate Marketing and Network Marketing- two terms that often used interchangeably as per the convenience of the user! Of course, it is true that both are quite related to each other but much different. Let us see how!

What is Affiliate Marketing?

Affiliate marketing is an online marketing method . Initially, all affiliate marketers have to choose the best products to sell online.

Amazon website is one of the most popular among the affiliate marketing websites. Affiliate marketing gives away the affiliate marketer his/her share of profits, after completing each transaction.

The income of an affiliate marketer depends upon the number of sales done by the company due to the marketing efforts of the particular affiliate marketer. Hence a higher number of sales, higher income would be reflected in the income of the marketer.

What is Network Marketing?

Network Marketing is a business opportunity  for the people who are looking for a part-time business opportunity that can be flexible to accommodate the demands of a regular work life.

The compensation plan in network marketing or Pyramid selling is closely related to affiliate marketing, often leading to the interchangeable usage of the terms. However, the main difference is the number of levels through which compensations are carried out.

When we take Affiliate Marketing or Network marketing as a subject for comparison, dilemma awakes in the minds of people. It zero downs to a question – Which one is the Best? To know the answer to that, you must have to take a quick glance about Affiliate Marketing vs Network Marketing.

  • The role of Levels

Network marketing or Pyramid Selling has several tiers or levels of people in the network. Addition of new members  to these levels takes place as per the rules of the compensation plan.

There are no limitations in the addition of new members into the network. They are added into the network and it keeps on growing, earning the top line members more and more commissions.

However, in the case of affiliate marketing, the levels don’t hold any significance.

  • Stress levels

In the case of Affiliate Marketing, the Affiliate marketer has to make sure that his target is met in terms of the number of people recruited under him so that he can earn a reasonable income. Since the income is on a long-term basis, he has to put in the same level of effort throughout his career.

In the case of network marketing, initially, the marketer needs to make every possible effort to achieve the target for getting a reasonable income on a long-term basis. Thereafter, he can take it a bit easy when his down line starts to earn.

In short, an Affiliate Marketer has to put effort not only in the initial stage but sustain it throughout his career. On the other hand, in network marketing, the network marketer can utilize long-term benefits even though he/she has to struggle initially.

  • Role in Creating Success

Success in network marketing relies greatly on teamwork. A Network Marketer should have good interpersonal skills so that he can recruit and people and eventually increase the strength of his down line. However, in Affiliate Marketing,  individual effort focuses on reaching maximum profits through individual struggle.

  • The frequency of the product sale

In Network marketing/pyramid selling, the products to be  sold are brought by  customers repeatedly. Thus the sale is a repeated process. But in the case of Affiliate Marketing, the type of products chosen for sale are in such a way that customers will buy them only once. Hence it is not a repeated process.

  • Comfort in Selling the Product

In Multi-Level Marketing, selling the Product to customers is not that easy as we think it is. It requires a Best MLM Software and a Best MLM Plan to perform this activity in an organized way.

In the case of affiliate marketing, it is not a difficult task to sell the product because the customer has a wide range of options to choose a Product in an affiliate marketing program.

  • Downlines

In the case of network marketing, each member has two downlines and the down lines have two people on each of them. These people would, in turn, recruit another set of two under them and so on. There is no limitation in creating downlines in Pyramid Selling/Multi-Level Marketing.

In the case of Affiliate Marketing Program, the maximum number of levels can’t cross 5.

Both affiliate marketing and network marketing have their own set of advantages and drawbacks. It doesn’t make any sense in comparing the different marketing methods.

We truly believe that Smart work helps in all the businesses!

To become successful in MLM business, you have to go analyze various compensation plans and choose the marketing tool smartly. You can also try out a Free MLM Software Demo to see how easily you can manage your MLM business with the software.

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