Are you struggling to find the difference between Affiliate marketing vs Network marketing?
Marketing, in simple words, involves every strategy or activity a company follows to the promotion of its services to potential buyers. Everything a company or a brand does to promote or sell its products in huge numbers can be termed as marketing. Marketing serves the purpose of efficient growth of businesses, and hence, it becomes a crucial fraction of the success stories of businesses.
Marketing plays an essential role in increasing sales, generating a wider audience, and making the business profitable. Rendering benefits, both the marketing techniques, i.e., affiliate marketing and network marketing, can be used to present beneficial results to the sales and growth of the business.
What is Affiliate Marketing?
We all have seen people sharing certain products and services on social media platforms like Instagram, Youtube, Facebook, etc. Every time they advertise a service, they share a specific link through which we can avail of the services. If we purchase any product using the links shared according to the recommendations by them, they get a particular amount of benefit from our purchase. This is where the principle of affiliate marketing revolves.
A lot of people are making a great amount of money using this marketing technique. Some of the main ways you can earn by this are blogging, email marketing, video marketing, etc. To start affiliate marketing, you have to choose an affiliate program of your choice and look into the details of their offered services and commissions.
If you find the program a good choice, you can follow the sign-up protocol. Once your application is approved by the respective company, you can start promoting their services and products and earn a decent amount of commission from every sale that has been made through your recommendation. You can promote the products in blogs, videos, or emails, whichever you find the best.
Amazon is the biggest known affiliate marketplace currently. Becoming an amazon affiliate marketer is easy and free. Amazon, on average, offers a 20% commission on every sale made using affiliate marketing. Another well-known affiliate marketing platform is ClickBank. If you are not flattered by the great marketplace offered by amazon affiliates, you can opt for ClickBank. Some other good affiliate platforms worth trying are Awin, CJ Affiliate, ShareASale, and Avangate Affiliate Network.
An introduction to network marketing
This model of marketing in the business world involves advertising and selling the products with the help of a representative. This involves developing partners and creating lead generations. The business structure of network marketing is such that salesmen recruiting more people under them happen to generate more commissions and revenues. Some of the businesses and firms that leave a trail in the domain of network marketing are Market America, Amway, Herbalife, Avon Products, etc.
Which one is worth it in 2022: Understanding the differences
Now that we provided an overview of each of the two terms let us start discussing what are the differences that exist between both marketing ways. Later we will also discuss the pros and cons of both of them.
1. What do both the terms mean?
Let us start the discussion of how both the marketing techniques differ from each other. Affiliate marketing vs Network marketing, both marketing techniques are very different from each other. Affiliate marketing uses the model in which awareness about a product or service is spread with the help of digital platforms. When an affiliate marketer gains a lead or a sale, he gets a commission from that lead itself. The model of network marketing covers sales by the network of one person to the other. There is a chain of distributors that sell or market the products of a brand. The salesman, in this model, sells the products individually to the customers.
2. Which of the two requires more digital knowledge?
Affiliate marketing involves the generation of sales when a buyer purchases any item by the link provided. To transform into a successful affiliate marketer, you have to be proficient in the required skills. The basic skills you need to hone our website design and data analytics. To attract more clients, you need to build attractive banners and links and work on emails.
If you lack technical aptitude, your journey to becoming a successful affiliate marketer will turn out to be tough. While considering network marketing, because network marketing involves finding clients, it doesn’t require a lot of technical knowledge. If you are marketing using the network marketing strategy, you will reach out to people personally based on trust. For each of the two marketing techniques, there is a difference between both of them affiliate marketing vs network marketing.
3. Sales & Compensation
In affiliate marketing, the earnings are earned by gaining a partial benefit from every sale made via their links. You simply market a product from a company or brand; if you successfully can gain customers to them, you will earn a part of the sale with every visit or customer. Many times, earnings are compensated by the number of views and outreach or a higher ranking obtained on websites. For marketers using network marketing, the earnings can be made in two ways.
Through network marketing, you can either make profits by getting products at discounts or making a profit while you are selling the products from brands and companies. The salesman earns a bonus when he completes the set target for him. This is how affiliate marketing vs network marketing differs in regards to compensation.
4. How are leads increased in both marketing ways?
Let us explore if there is any variance in how the marketing techniques, affiliate marketing vs network marketing. As we already discussed, there is a major involvement of digital knowledge in affiliate marketing, whereas network marketing involves no such expertise. Affiliate marketing uses digital platforms to increase its visibility. Social media platforms like Instagram, YouTube, Twitter, Mail, Facebook, etc., if used effectively, can result in generating a great number of leads. Whereas, if we consider the head generation in network marketing, it uses relationships from the business sphere.
5. Advantages: Affiliate marketing Vs Network Marketing
Affiliate marketing has shown promising elevation in sales and revenue. The statistics of affiliate marketing have shown about a 10% increase in profit annually. When considering the digital media industry, affiliate marketing owns 15% of profits. Affiliate marketing is very easy and requires lower financial investments. The investments in affiliate marketing are very limited. Being an affiliate marketer comes with a flexible schedule. If you are looking for a side-hustle that does not ask you to quit your full-time job, then being an affiliate marketer is the best choice for you. Network marketing produces products of good quality. It can be a potential source of income, and the number of employees required for network marketing is minimal.
6. Disadvantages: Affiliate marketing Vs Network Marketing
While we discuss the disadvantages of affiliate marketing, the first shortcoming of affiliate marketing is you have no ownership; rather, you are a part of the affiliate program. Because affiliate marketing involves minimal investments and anybody can start their journey with affiliate marketing. This sets a rigid competition. With network marketing, gaining a lot of money through it is tough. Very few people can make considerable amounts of money from network marketing. And growing in network marketing is slow; it requires a lot of time and patience. Because the sales are directly between the salesman and the customers, there are many rejections. Another drawback of network marketing is the huge number of scams involved in this domain.
Wrapping It Up
To make a comparison between affiliate marketing vs network marketing, it will be too naive to say either one of the two techniques is the best. Both of them have their strengths and shortcomings. What suits the best for your business depends on what ways of marketing you are looking for. If done right, both the marketing strategies, affiliate marketing vs network marketing, can do wonders for your business.