Network and affiliate marketing are two different ways to monetize your passion or expertise. Both involve helping businesses market their products and services, but they have marked differences. Understanding the benefits and pitfalls of each can give you a better idea of which one is right for you.
Arguably, there’s no right or wrong answer when it comes to deciding which business model is better for you. Instead, it’s about what you want from your business venture and how you prefer to operate on a daily basis. Take, for instance, the cash tracking system that operates on a gifting system. Once you’ve signed up, subscribed, and purchased a package, you can then start to expand your team and promote the business.
This article breaks down the differences between network and affiliate marketing so you can make an informed decision before diving into either one of these two.
What Is Affiliate Marketing?
Unlike network marketing, which requires you to build a network of salespeople, affiliate marketing is based on building relationships with publishers and bloggers who are likely to select you as their partner. It’s a straightforward business model for online merchants who want to drive sales and increase revenue.
Affiliate marketing involves recruiting bloggers or publishers to review and promote your product or service for a commission on every sale. This marketing strategy is a great business model if you want to work from home, or if you want to work a few hours per day and aren’t interested in managing a sales team.
Pros And Cons Of Affiliate Marketing
The affiliate business model offers less risk than starting and managing your own network marketing business since you don’t have to invest as much money upfront.
With affiliate marketing, you can reach a broader customer base because you can work with companies in various industries. As long as you have a website and a sales website, you can easily join any affiliate marketing program.
Also, unlike network marketing, new affiliates don’t need to close sales. They have complete control over how they want to run their business.
The best thing about affiliate marketing is that you can promote multiple products simultaneously and not just products from one company. This gives you freedom regarding products you can promote and allows you to branch out to different niches.
On the one hand, the earning potential in affiliate marketing is much lower than that of network marketing because you don’t have direct access to customers. Also, because affiliate marketing is a common business model, you are likely to face more competition in this area.
What Is Network Marketing?
Network marketing is a type of business that relies on multiple distributors (or ‘network marketers’) to sell products or services to customers. The company that employs network marketers pays them a commission based on every sale they make.
Network marketers build networks of people who buy products and recruit other marketers. This creates a large sales force for the company, as well as generates sales for you and the people in your network.
In a traditional network marketing business, the company contracts with independent distributors who sell their products or services directly to the public. The company pays the distributors a percentage of their sales, plus bonuses and incentives, based on the number of people they recruit and their sales performance.
Pros And Cons Of Network Marketing Benefits
Network marketing is likely to lead to high earning potential through increased word-of-mouth referrals, product discounts, and the opportunity to create your work hours. It also allows you to develop strong relationships with customers and other industry professionals, helping you create positive change and influence people in your community.
Furthermore, network marketing can help you build brand recognition as you increase your network, leading to customers seeking your products or services.
Like any other business, network marketing requires time and effort to build a profitable and sustainable business. Thus, when starting your business, you must commit to a significant amount of money. Because you’re investing in your future income, the upfront costs can be high.
While you can build a successful business independently, managing a team can help you scale more quickly and efficiently.
How To Choose
Choosing between network marketing and affiliate marketing comes down to your strengths and weaknesses.
Are you a natural leader who thrives on building relationships? Do you thrive in competitive environments? Do you like the idea of managing your own sales team? If you answered yes to any of these questions, then you may want to consider network marketing. Meanwhile, suppose you like to work from home, or if you want to sell various products from your website, then an affiliate business may be ideal for you. The startup cost is also low.
But, always remember that whatever marketing strategy you choose to pursue, you’ll need to understand your audience, find relevant products or services to sell, and effectively promote your business to succeed.
