Affiliate Marketing vs. Network Marketing???

Affiliate Marketing and Network Marketing… is there a difference?  For some people, the difference is HUGE; for some people they think it’s the same thing.  Let me give you my perspective on this.  This is not comprehensive of course, but it will give you a bird’s-eye view of things.

Similarities:

  1. You earn a commision from selling someone else’s product
  2. You market to build your business and your commission check

Differences:

  1. Recruiting: With AM, you do not recruit others.  Some Affiliate companies have a 2-Tier setup, but with AM you are focused on the sale of the product.  With NM, you sell the product, but the focus of your business is upon recruiting others in order to leverage your income.  The more successful you recruit, the larger your downline, the larger your check.
  2. Products: With AM you are selling someone else’s product.  In many cases, there is an affiliate network that manages many different companies, so your products can vary widely.  With NM your product is what your company produces.  If something happens with the product in the news, good or bad, you are directly affected. 
  3. Commissions: With AM you earn a commission directly based upon your performance as a marketer.  With NM you earn a commission off your production, but the bulk of your commission comes from the efforts of your downline.
  4. Marketing: With AM you market with pay per click, list building, SEO, and maybe article marketing.  With NM, you market to your family, friends, and to leads you may have purchased.
  5. The X-Factor: With AM, you are not relying on others.  You are your own man.  You are not relying upon one particular company.  Your income comes from many different sources, so if one company goes down, you will likely not be affected.  With NM, you rely on a team.  You rely upon one company to produce a good product.  If the company goes down, you start over.

These are just a few items.  I know people who in both industries that make good money, and I know people in both industries that make absolute fortunes.  I will say this though, the people in Affiliate Marketing who are making fortunes are making quite a bit more than those in Network Marketing.

It is not really one against another.  That is not what I am trying to communicate.  It is simply different business models for different people.  I like them both, but I would consider myself an affiliate marketer.  I buy products from network marketing companies, but I am not associated with any.  Affiliate marketing simply fits my personality and my lifestyle better.  I am not a recruiter, but I enjoy online marketing, PPC, and SEO.  I have a long way to go to make a fortune, but I have been working full-time from home since 2004 as an affiliate marketer.

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This article has 3 comments

  1. I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Chris Moran

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