Is there any difference between affiliate marketing and network marketing?

Since the home based business activity is developing, more and more people are looking for a way to use the power of Internet to start a business.

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After certain investigations on the best opportunities the Internet offers to work from home and make money online,  those people will then decide to join whether an affiliate marketing company or a network marketing company.

But most of the time, and this happened to myself as well when I started online, these people will want to join one or the other of these companies without making any difference between the two systems.

Sometimes they will even join both at the same time.

But the question is: is there any difference between an affiliate marketing company and a network marketing company?

The answer is obviously: “yes”.

And in this blog post, I would like to share with you how an affiliate marketing company can be different of a network marketing company.

Please bear in mind that what I’m sharing with you here is based on my own experience since today I work with both type of business models.

If you need further information and would like to know more about this topic, I highly recommend that you do your own extra research using authority sites like Wikipedia or Forbes for instance.

Are you ok with that? Cool… So let’s get back to our main subject.

See, the frontier between affiliate marketing and network marketing is not as wide as you may believe since most of the companies that operate online use both business models together.

They take the best parts of each model and use them for their own business.

In terms of tangible differences though, the difference between these two systems is based primarily in the way they recruit their affiliates.

Most of the time, affiliate marketing companies don’t charge anything to their members.

If you find an A.M company that interests you, you can join them just by filing up some details regarding your identity, your website or blog if you have one, the methods you’ll be using to promote their products or your marketing budget.

Once they receive your application form, they will then come back to you to let you know if you have been accepted or not.

Most of the time they accept you easily since the more affiliates they have, the more benefices they will make.

If they accept you, you can then access your member’s area where you’ll find your affiliate links and banners so that you can start your campaigns right away.

It’s a performance-based business that consists of rewarding each affiliate for the sales they make or the customers they bring through their marketing efforts.

Depending on the affiliate platform you work with, they will pay you a commission on each sale you make.

The amount of the commission vary from one company to another and whether you sale a physical products or an electronic one, such as a downloadable software or an eBook.

On the other hand, a network marketing company will require you to invest a certain amount upfront before they allow you to start promoting their stuff.

It’s a direct sales business model where each affiliate have to pay a membership fee or buy certain products before they can start working with the company.

How much money can you earn?

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Disclaimer; These results are not typical. Please see full income disclosure here.

As an affiliate marketer, you don’t need to recruit new members and build a team whereas it’s the primary goal of network marketers.

The more people a network marketer signs in his team, the more money he’ll make as he receives a commission from all the members under their downline.

That’s why they call it a Multi-Level Marketing Company, or MLM.

While you don’t need to buy anything nor pay any membership to the company you are affiliated with, there’s an entry barrier if you want to join a MLM.

If you don’t have money to invest upfront, it will be very difficult for you to join a Multi-level marketing company.

But the positive thing is that being a MLM member will certainly make you much money since their compensation plan are more lucrative than the tiny commissions certain affiliate marketing companies will reward you with.

For instance, at Empower Network, they reward their affiliates with a 100% commission plan.

This means that whenever someone purchases a product from your link, you can keep 100% of the sale.
Interesting, right?

Your success as a MLM member will strongly depend on your abilities to build a strong team and on your interpersonal skills.

Do you see the real differences between these two business models?

So now that you’ve read this blog post, what do you think is the best model for you?

Please let me know what you think in the comments below.

Also, if you want to join a Network Marketing Company that has produced 14 verified millionaires, you need to check this out.

To your success

Jose

Credit image(s) depositphotos.com

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