How is AfFiliate marketing different from network marketing?
You know for a new upcoming brand or business to grow there is need for a good marketing strategy. So what is marketing, marketing is a process of creating awareness about a product or getting customers to buy product of a brand or company such include advertising, products development, and promotion.
There are different marketing strategies in the business world, each business organization or brand has to choose a marketing strategy or way of promoting their business. So in this article will be looking at two different marketing strategies which is “affiliate marketing” and “network marketing”, And our focus will be the difference between affiliate marketing and network marketing.
What is affiliate marketing?
Affiliate marketing Is a process by which an online retailer pays commission to an individual, company, or website, that promotes and refer buyers and customers to buy products or visit their website using an affiliate link.
Affiliate-marketing involves two major role players which are:
1. Brands or company : these are organizations or companies that sells service or products there can be a retailer, business, E-commerce. etc
2. Affiliate marketer: these are products and marketers who promote the products or services to any commission they can be a website product reviews, niche websites or a population social media handle.
And do you know affiliate marketers can any money online without creating or having any product, all they have to do is to get traffic and generate leads, that is to get customers or buyers for their affiliate companies or programs.
Affiliates marketers have many ways of generating traffic, leads, and customers to buy their affiliate products and services. Example are through social media handles forums, websites, youTube.
Affiliate marketing payments strategies.
- Pay per click: this strategy is when The affiliate marketer is paid due to the amount of valid clicks on his affliate link, provider the link generate traffic to the brand or companies site.
- Pay per lead: this strategy involves conversation of leads generated by the affiliate.
- Pay per sales: this strategy, the affiliate marketer is paid a commission or a percentage of the amount a product is purchase. in this strategy they must be a purchase of item before the AfFiliate marketer can earn money.
Requirements to be a good affiliate marketer.
1. Products research with followers interest for example your website is a photography website you can promote affiliate products like cameras, photography courses, etc.
2. Always maintain good relationship with your followers and customers.
3. Be consistent with any brand you are in as well as it products and services.
4. Create awareness of your affiliate products through social media and big forums like Reddit, Pinterest,Quora etc.
Read also: Affiliate Marketing vs Digital Marketing
Pros and cons of affiliate marketing.
Pros of affiliate_marketing.
- It is risk free because most popular affiliate programs are free to join.
- It has no earnings limit.
- It is a fast way to grow your business online fir business owners.
- It is flexible and it can be done from anywhere and anytime, as far as you have access to the internet.
- No technical skill or knowledge required in affliate marketing.
- Creating a product is not required.
Cons of affiliate_marketing.
- It takes time and efforts to grow your traffic source.
- It is going to be very competitive.
- Most affiliate programs are strict on how to promote their products.
Now that we have talked about affiliate marketing let’s talk about network marketing.
What is network marketing?
Network marketing is also known as multi-level marketing (MLM) which involves a business model, where you earn money by recommending products and services which you have gotten for a discounted price from network marketing company, and selling them back with the full market price to people, but you can also earn money by refering other people to the business.
Network marketing is simply recruiting people who are interested in your product, selling your product to them in a discounted price, so the buyer can sell them back at the full market price.
In network marketing distributors who buy your product at a discounted price are encouraged to recruit other new distributors, because for each recruit you receive a percentage of the recruit earnings. And if your recruit also recruit another person you also receive a percentage of that person’s recruits earnings.
Pros and cons of Network marketing.
Pros of Network marketing.
- It is price effective ( no formal marketing infrastructure needed).
- It is easier to sell new products.
Cons of Network marketing.
- It makes it hard to forecast sales.
- this may additionally increase the advertising and marketing charges.
Difference between affiliate marketing and network marketing.
Affiliates marketing refers to a process by which individuals or websites uses affiliates to promote and increase product sales and services using online platforms to earn money from sales and leads generated, meanwhile network marketing is a multi-level marketing (MLM) which involves recruiting people who are interested in your product, selling your product to them in a discounted price, so the buyer can sell them back at the full market price, which you can also earn by recruiting people.
Compensation system of network marketing and affiliate marketing.
Affiliate marketing pays their affiliate marketers using cash payment systems, meanwhile network marketing distributor s benefits from profit from heavily discounted prices of products sold to customers.
Customer referral platforms.
Affiliate marketing uses online platform such as websites, social media like: Instagram, Facebook, Twitter, YouTube, Reddit, Pinterest to get sales and leads. Meanwhile network marketing uses physical business based relationships to get sales and profits.
Between affiliate marketing and network marketing which is best and more easy to start for a beginner.
From my own opinion I strongly believe that between affiliate marketing vs network marketing, affiliate marketing is the best, because affiliate marketing is less capitalized and is available worldwide and less stressful than that of network marketing so for a beginner I suggest you go for affiliate marketing.
Read also: Is Digital Marketing Hard? Find out now!!
In summary affiliate marketing involves promoting online products and services to earn money on the other hand Network marketing involves a person-person sales, that is recommending products which you have gotten for a discounted price and selling in full market price It includes recruiting, lead generation, and management. And both marketing method do not require complex marketing.
Affiliate marketing compensate their affiliate marketers through cash payments while network marketing distributors benefit from sales of products gotten at heavily discounted prices.