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Network Marketing VS Affiliate Marketing: Which Is Better?

Okay, you've finally decided that you want to start making money online but it's confusing to know which type of marketing/sales will fit with your personality. To determine which type of online marketing fits best for you, it's really important to understand what each is and how they are different.

I'm going to give you an honest opinion and review of how each of these systems can work for you, totally depending on who you are, what your goal is and what you want to gain out of the experience.

I think it's fair to also let you know that today, I work with one of the top network marketing companies which has been established and operating over the last 20 years and is also a publicly traded company. Out of all network marketing companies out there, only 10% make it. That means 90% fail and are no longer in business! Keep that in mind when picking your path and make sure to research your company before diving in.

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What Is Affiliate Marketing?

So - I think the easiest way to explain the difference between affiliate marketing and network marketing is thinking of them this way: affiliate marketing is a DIGITAL-based business and network marketing is a RELATIONSHIP-based business.

Affiliate marketing is the process of selling somebody else’s product or service in exchange for a commission on the sale. Essentially, it’s freelance sales using the Internet to drive traffic.

With affiliate marketing, the affiliate helps companies market their product or service and receives commission on sales. Affiliate/digital sales means you'll get some banners, links for products and you'll plaster it everywhere you can in the hopes to gain traffic to you in order to sell the product - whether it's books, eyecream, can be a link to ANYTHING that the merchant wants you to promote.

What Is Network Marketing?

Network marketing, also known as multi-level marketing, is a similar business model to affiliate marketing, but there’s a few key differences. With network marketing, you’re signing up a team to help you promote a program, product or service. On every sale you make OR that you team makes, you earn a commission. So while you're selling a product or service, you’re ALSO selling an opportunity and trying to recruit other members to do it with you. Therefore, it's about building RELATIONSHIPS. Helping your team grow and duplicate your own success. You'll use your social media to engage, share your experience with the product/service with your audience and you'll ask them to get involved with you.

The Compensation Difference

With the affiliate marketing path, there is no relationship. You provide someone with a link and you don't have to talk to anyone. Some people LOVE that aspect of it! You are compensated on two levels, the first typically paying you out 10% commission on the product and the second level usually gets you an additional 5%. You do all of the work solo and the job to sell and promote is placed on the individual. There is generally no cost to start, which is a plus, however there is no significant room to advance either. Most people have to be affiliates for several different products to make real money.

With network marketing, you get payouts in MORE than two levels, hence multilevel marketing got it's name. You can rank up in your business based on meeting requirements and sales, and by adding to your team aka bringing other people on board with you. The company rewards you in bonuses for hitting higher ranks and bringing on more people who sell with you. You also earn bonuses on what your team produces/sells. There is no limit to your earning potential, and the job is not just on you. The way that you help your teammate advance their business directly impacts your income, so it's again a relationship business where you'll be mentoring and helping your team meet their goals so that you can reach yours. You'll be using social media, and on our team we help you design your brand, a website, create a blog and teach strategic email marketing all for ONE product/service. One that you can love, use yourself, stand behind and YOU get to make sure that you resonate with it before you even sign up.

Start up costs can vary significantly with each company - so do your homework! For example, our startup cost is only $160 and it gets you access into our virtual Fit Club (a year of workouts and your first month of nutrition supplements) that you get to use on yourself. We don't have you purchase inventory, however other companies do. I've seen start up fees as high as $1,500 for some network marketing companies!

How To Decide

If you like to work alone, affiliate marketing is probably more your speed. If you don't like talking to people or having to build relationships and if being passionate about something does not matter to you in order to sell it, affiliate marketing is going to be the better choice. If being an influencer, for you, is more about sharing all different types of products that you personally don't have to stand behind and if you change your mind a lot - you can always switch up which brands you're promoting then affiliate is the way to go. It's for someone who doesn't want to worry about onboarding a team or helping them succeed. It's also for the person who doesn't care that their income is capped at 10-15% commission or that it may be difficult to get brands to notice them and get the big name offers.

If you love the idea of a community, of working together toward a common goal and purpose then network marketing is more your style. It's for the person who wants mentorship & team calls where someone shows them how to create success with trainings and gives them duplicatable systems. If you're someone who truly has to love a product in order to feel comfortable selling it, if you want to build a personal brand around it and want people to remember you for standing for something, kind of 'I'm leaving my legacy' type of person then I suggest you research network marketing and pick a brand that makes your soul come alive. And, a very important point to make: if you want to be able to earn in increasing quantities based on the number of people you help and pay it forward showing others how to use the opportunity that you found and change their life - you belong in network marketing.

The most important piece, for me, has been the SUPPORT you get when in network marketing. There's a team, a community of people who are all involved together in order to earn money online promoting a product/service that they truly love. They have opportunities like team trainings and mentorship programs so that they never feel alone in a business. Learn more about our team of fitness coaches in network marketing here.

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What Determines Success In Network Marketing?

There is something about a passionate network marketer's character that separates them from the herd. They are willing to take risks and step out of line. And the actions that follow are SO important to make sure that risk gives you the reward you want. Their motivation drives them, they know why they're doing what they're doing and what skills are needed to get them to that desired result.

The motivation you need to reach the top is already in you. Find a way to ignite that motivation and then spread it to others. -Eric Worre

The skills you need are the ability to:

  • Find Prospects

  • Invite

  • Present

  • Follow Up

  • Help Your People Become Distributors

  • Help Your Distributor Get Started

  • Promote Events

It's SCARY to start! I remember how I felt and I know it can be a decision that feels uncomfortable. But the bottom line is - you already KNOW you want to make money online. It's just a matter of deciding which feels the best to YOU and a choice to move your life forward before you feel ready. Waiting until we feel confident is not how it works - we have to first take the action toward success that builds our confidence over time.

Interested in learning more about my business & how it operates so that you can get involved? Click here to request more info.


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