Affiliate Marketing vs Network Marketing Which is Better?

Affiliate Marketing vs Network Marketing Which is Better ? It’s magical what marketing can do in the growth of a brand or business. Marketing, the process of getting consumers interested in a service or product includes all aspects of a business such as sales, product development, advertising, and distribution methods. It informs, engages, sells, expands a business, and enhances credibility. While it is an essential component of any business, determining the right marketing strategy is vital. A marketing method that may work for one business may not be suitable for another. Also, brands should embrace new marketing methods, while also using traditional methods such as print media. In this article, we will look at the difference between affiliate marketing and network marketing.

Affiliate Marketing vs Network Marketing Which is Better ?


Affiliate Marketing vs Network Marketing Which is Best? 

Affiliate Marketing vs Network Marketing Which is Best? If you’ve spent any amount of time looking for ways to make some extra money online, it’s a given you’ve come across affiliate marketing and network marketing.

And oftentimes, affiliate marketing and network marketing get mistaken for one another.

What is Network Marketing?


Affiliate Marketing vs Network Marketing Which is Better? This is a business model based on person-to-person sales by a network of distributors. It entails systemic strategies including recruiting, lead generation, and management. Instead of distributing the products to stores, these marketing methods rely on a network of distributors. This marketing strategy has been in existence since the 1930s. 

They’re similar business models, but there are a few key differences which we’ll cover later in this post!

Advantages of network marketing include:

  • It is cost-effective as no formal marketing infrastructure is required
  • It makes it easy to enter new markets
  • It is easy to sell new products

Types of network marketing include:

  • Single-Tier network marketing – This model uses affiliate marketing programs to sell products and services.  
  • Two -Tier network marketing- This model entails direct sales and sales referred by distributors or affiliates. 
  • Multi-level marketing- This is a distribution-based marketing network that uses two or more tiers. 
Companies start by recruiting people who are interested in their products. Instead of a commission-based model, the distributors are sold the products at a discounted price whereby they can sell them at a full market price. Distributors are also encouraged to recruit other new distributors, commonly referred to as downlines where they are offered a percentage for each sale made. The recruits can also recruit their new distributors, hence forming a network of distributors. 

What is Affiliate Marketing?


Affiliate Marketing vs Network Marketing Which is Better ? This is a sales model that uses affiliates to increase product or service awareness using online platforms and earn a commission from sales or leads made. It involves two main players:

Brands- These are companies that sell services or products. They can be subscription services, retail businesses, financial services, broadband, travel, e-commerce, and gaming, just to name a few. 

Affiliates- These are the service or product marketers. They can be niche content sites, product review websites, bloggers, shopping sites, coupon, loyalty, and mobile apps just to mention a few. 

Through affiliate marketing, affiliates can earn money without creating their products or services. To derive traffic and generate leads, affiliates can choose to use one or several social media platforms such as websites, Instagram, Emails, Twitter, Facebook, and YouTube, just to mention a few. 

So, what are the benefits of affiliate marketing?

  • An affiliate only worries about the marketing aspect of a business
  • It has low risks since there are no joining costs
  • Affiliates earn passive income through the leads generated
  • It offers affiliates the flexibility of working from anywhere

Affiliate marketing also has disadvantages including:

  • Most affiliate programs have strict conditions on how affiliates should generate leads. While this protects the reputation of a brand, it can be limiting hence leading to fewer leads
  • It is susceptible to fraud
  • Affiliates have zero control over a brand’s fulfillment of a service or product
  • It is highly competitive since most affiliates promote similar products 

While affiliate marketing may seem like a walk in the part, it requires:

  • Product research as well as follower interests and web traffic patterns
  • Maintaining relationships with followers and people who make purchases using the affiliate link
  • Consistent engagement with a brand as well as its services and products
  • Consistent use of social media to get new leads

The commission rates vary based on the agreement between the two parties. However, common payment agreements are based on 

  • Pay Per Click basis- Using this strategy, the affiliate is paid a percentage of the amount at which a consumer has purchased a product or service. 
  • Pay Per Lead basis- This is a payment system based on the conversion of leads generated by the affiliate. 
  • Pay per sale basis- The affiliate is paid based on the number of consumers who click on the link provided hence increasing traffic to the merchant site. 


Here is the Reson to Choose Affiliate Marketing over Network Marketing

There’s a low barrier to entry


Affiliate marketing has almost no barrier to entry since you can join affiliate programs and start promoting immediately!

This is part of the reason it can get competitive, like anything else…

So you’ll want to make the most of your efforts, meaning there’s are a few expenses needed.

Here’s what you’ll need to start:

  • A domain/website
  • An email marketing tool
  • This shouldn’t cost you more than $25/m in the beginning, which is nothing for starting your own business.

But you’ll want a way to collect and follow up with your leads, so it’s necessary!

You can choose what you’d like to promote:

  • Unlike network marketing, where you’re forced to promote a specific opportunity or product, you can choose whatever industry and products you’d like to promote…
  • This makes the entire process of content creation easier since you can choose an industry you’re truly passionate about.
  • So whether you’re into golfing, gardening, or anything in-between, you can create a blog or social profile focused on that specific niche!

It’s an ethical business model:

  • Affiliate marketing is a completely ethical, legal business model that simply helps connect buyers to vendors.
  • Instead of selling people on opportunities and how much they can earn, you’re selling products people actually want to buy.

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