Both affiliate marketing and network marketing are huge systems within the make money niche. In today’s article, I will be placing affiliate marketing and network marketing side by side to see which one comes out on top.
If both of these money making methods are new to you. You will need to read this brief explanation of both.
What Is Affiliate Marketing
Affiliate marketing is where you promote other peoples products and services
What Is Network Marketing
Network marketing is also known as multi-level marketing (MLM) as has been around for decades. The process does vary slightly across different businesses but the normal practice is as follows. You sign up as a rep for the company and can then sell their products directly to customers, you then build your business by recruiting other reps.
Affiliate Marketing vs Network Marketing The Facts
In this section, I am going to show you six areas of the business and give you the facts about these areas when using both business models.
Ready? Let’s do it!
Network marketing costs can vary but they normally consist of a signup fee which can be a few hundred dollars for some companies. There can be some ongoing monthly costs involved too which can be for stock or software. Always do your due diligence of the company before joining.
Affiliate marketing, on the other hand, can be started without any money invested. Although, I would recommend building a website for your business which can cost a few dollars. You can also add this once your commissions are rolling through.
Read here about starting your affiliate marketing business with no money.
With most network marketing companies, there will be products that you will need to purchase on a monthly basis plus you will make regular sales to, in order to reach SV (sales volume) targets. Not meeting these targets could result in less money.
Affiliate marketing is all about recommending other people’s products and services so you never have to buy any products yourself. This also means that you have an unlimited selection of products available to choose from.
You never have to recruit anybody into your affiliate marketing business as you will be working alone. Meaning whatever commissions you earn will be 100% yours.
Network marketing on the other is predominantly based around recruiting others. By building a team of active members is crucial to your success, the more you recruit the more you earn. Simple!
Stats have shown that on average people recruit only 2 and a half people into their business and many of these give up shortly afterward. This is probably one of the reasons why people fail with this business model.
Discover more here about the best network marketing companies to work for
Let’s talk about money, and how much you can possibly earn with both of these make money methods.
This is why I love affiliate marketing as you can earn unlimited amounts of commissions. If you look for products that have a monthly subscription then you can recommend it once and people will pay month after month sometimes for years for the product. You could also promote high ticket products there are many out there of which some pay into thousands of dollars per customer you refer to.
Read this article for my 10 top affiliate programs for this year.
Now I am not saying that you will not succeed if you go down the network marketing route but figures show that only a very small amount of reps earn more than a few hundred dollars a year in their business. This is what I found within several businesses that I have joined since 1999.
Adapting Your Business
Trying to adapt your network marketing business can be tricky unless your company adapts and moves into different areas or product ranges, but in my experience, this is normally very slow to happen, if at all. This could, in turn, mean you are forced into seeking a new partnership with another company and starting again.
Most MLM companies will state in their T’s and C’s that you can not promote another company while still a member so, this means the dilemma of staying or going. Tough call if your business is ticking over.
However, with affiliate marketing, you can adapt your business and carry on growing with it affecting your business. You can add more products from different niches, drop ones that are not performing. The choice is yours you are in full control and you can even promote businesses that are in direct competition.
Probably the most important thing in either business model, after all, that’s what we are in business for in the first place. 🙂
The thing I have noticed is that because the multi-level marketing business model lends itself to some, shall we say not good business practices payment processors such as Paypal tend to keep their distance.
Let me know in the comments below if you know of any using Paypal it would be great to know.
Because of this companies have used e-wallets or even debit cards to pay you your money. I even had one company charge me for using the e-wallet, what is that all about!
Most companies and affiliate networks, however, use Paypal which is great others give you more options too, such as direct payment into your bank or a check in the mail. There’s is nothing more exciting than seeing checks from Clickbank and AWeber. Although now I do have them sent directly to my bank or PayPal.
Having been involved with both business models over the years I must admit, and as this article has discovered that affiliate marketing is the better way to make money with.
Don’t get me wrong there are plenty of people trying to make money with affiliate marketing and not make a dime, but there is certainly a higher percentage making life-changing money.
So, with this in mind, I would truly recommend starting a business using affiliate marketing.
Like any business, there are always things to learn which is why I created my free 7 day Bootcamp series. This course will go through every step I took to create my affiliate business, there is nothing hidden it’s all there.
Check it out by signing up using the optin forms on this page.
Plus you could join me on the site I have used to build my business from scratch. There you can join as a starter member and access two training courses, keyword research tools, live chat support and even build a free website for your business.
If you grab your free account today I will personally invite you to connect with me and support you through the whole process of building your own business online.
I look forward to working with you.
Disclosure:- Affiliate links may be used within this post. This means that if you purchase through my site after clicking a link when I get a small commission, at NO extra charge to yourself. This helps me to continue giving great free content. Thanks