How Do Affiliate Marketing and Network Marketing Programs Work?

By | Bill Fletcher

“This is a longer than normal post, but one that many of my friends may be asking”.

Are you seriously thinking of making money online?  The keyword here is Seriously.  Before you can make money online I suggest you do some research.  What is your intent?  Is it Network Marketing Online or Affiliate Marketing Online or maybe it’s Affiliate Marketing Programs or Network Marketing Opportunity. What ever it is Research!  Decide what you want to do first answer your “WHY” then GO FOR IT.

If you are thinking about an online program, you may have wondered “Which One”?  Or “What is the Difference”?  You may be saying, “How Do They Work”?  Or Is “There Any Money to be Made”?

In this post, I hope to answer some of your question.  If not, at least I may have given you some ideas to help you in your research.  What ever your desires, I suggest you look at both program.  Even “Test Drive” programs to see if it is “Right For You”, if offered.  Don’t make a long term commitment until you decide what you want your business to look like and most important your “WHY”.  Personally, I never make a decision until I answer my “WHY” question.

So let’s begin to uncover some of the questions you may have.

What Are Affiliates And Vendors?

A “Vendor” is the manufacturer, creator or distributor of a product that will pay you the “Affiliate”.  An Affiliate is a person or company that sells the Vendors product to a Buyer.  Sears could roughly be called an affiliate because they sell a manufactures product…Sony TV’s.  This is kind of loose but you get the idea. The Affiliate is paid a commission when the sale is made.  Now it doesn’t have to be a tangible product; it can be virtual, like an e-book or a service. All markets and niches have vendors who are looking for affiliates.

How Do You Make Money From A Vendor As An Affiliate?

All you do is promote a vendors’ products and have your customer buy that product. You make a commission on the sale because the vendor didn’t put any effort for the sale and thus made money with your help!  So don’t be surprised if you see a vendor offering 50%, 75% or more commission.  That’s a sale the vendor wouldn’t be making if they didn’t have you on board as their affiliate.

The best way to promote a vendors’ products is by incorporating their links into your website. Let’s say you have a website about dog training.  You could have a banner ad for a vendor that sells dog accessories, or you can mention the vendors name and product in your newsletter.

How Are Affiliate Programs Different From Network Marketing?

In an Affiliate program you don’t have a product of your own.  You are simply representing a vendor who will pay you a commission upon the sale of the vendor’s product.  As an Affiliate you are not responsible for delivery of the product, rebates or refunds or even damages.  You are paid on the sale.

A Network Marketer is normally a distributor of the companies product.  You are paid when you personally sell a product to your customer.  Normally you are responsible to deliver the product, show how to use the product and guarantee the product.  Typically you may even have the product on hand or inventoried to sell.  This may not be the same for every company.  Sales and refunds are normally handled by you as the distributor.  The main advantage of a Network Marketer is the ability to Sponsor other distributors in your network of distributors.  Thereby when a network distributor makes a sale, you will make a small commission on the sale.  As your network grows, you have the ability to make a large sum of money or residual income.  Some Network Marketers have made millions in their business over time.

The Main Difference

So the main difference in the Affiliate Marketing and Network Marketing, is that Affiliate Marketer make money on the sale and then move to the next sale.  A Network Marketer makes money on every sale made in his or her network.  This residual income will continue as long as the Network Marketer continues or the network continues.  Think of a recording artist.  They record a record once, but continue to receive income long after the recording has been distributed.  To make more money they record another record and so on.

An Affiliate makes money on one sale at a time.  A Network Marketer makes money on personal sales and network sales.

Both Programs Are Excellent Ways To Make Money

What ever your choice, both programs WORK.  However, a “smart marketer” will combine both Affiliate Marketing and Network Marketing.  This way even if some one says NO to your business opportunity, they may still buy your affiliate product.   You win in either case.

How Do I Find An Affiliate Vendors or Network Companies And Which One?

It’s easier than you think! There are a lot of affiliate sites you can go to.  Some examples are Clickbank, Commission Junction, Amazon.  This is just a small example.  Affiliate vendors are vast.  All you have to do is a Google Search and locate a vendor you want to represent.

Not sure how to choose one?  There are two ways you can effectively choose a vendor to work with.

(1) Choose the vendor with a product that’s closest to your website and matches the product or specific interest. This means, first you have the content ready, then you’ll choose the product to promote.  Make sure it’s as close as possible to what you’re writing about.  Not only will irrelevant affiliate links “turn off” your readers, but you may even get penalized by search engines for it!  If you can’t find something exact, better to not put any affiliate links at all.

(2) Pick out a vendor and/or product you like.  Write something about this product or services.  This is choosing the affiliate program first, then creating your content. This is also an amazing remedy for writer’s block.  If you’re at a loss for what to write, you can always log on to your vendor’s marketplace and get ideas from there. It doesn’t even have to be relevant to the rest of your website; give your readers a nice surprise and write a review on that new product you’ve.  Make sure your content is original.

You should always look for what percentage of commission the vendor is willing to pay.  Another item to look for is there any “up-sale” or “monthly commissions”.  For instant, let say the vendor offer a sale that the buyer pays a monthly fee to continue.  As long as the buyer is a making monthly payment, you could be making a small commission each month.

Network Marketing Companies and Which One?

Like affiliate vendors, there are hundreds of Network Marketing Companies.  The best advice in locating a Network Marketing Company is to determine your interest.  Do you like Weight Lost programs?  Then locate a Weight Lost Company.  Interested in Personal Care Products?  The same is true, locate a Personal Care Company.  What ever your interest, there is a Network Marketing Company for your interest.

Which one?  Check them out!  Find out how they market, what kind of training, what is the compensation plan and do you have to inventory?  These are questions you have to answer.  It’s not easy.  For every one of the Weight Lost Programs available there maybe a dozen different companies.  Same for any other programs.

Who is your Sponsor?  Can you work with them?  Will they support you and your efforts?  Are they a “Mover” in the company or just there to make some money?  As I mention, this is not an easy decision to make.  However, what ever your decision in Network Marketing….NEVER QUIT!!  The only time to move to another, is when you simply exhaust all enthusiasm for either the product or program.

Finally

In closing, remember don’t over look combining “Affiliate Marketing” and “Network Marketing” into one program.  This is a very strong marketing approach in making money online or through your personal network.

Personal Recommendation

I have a Network Company that I really enjoy and is growing each and every month.  I also have an Affiliate Program that helps me grow that company.  Personally, I sought training first from the Affiliate Program then searched for my Network Company.  This way I had the training, focused on which social media I planed on using and then added additional programs as I became and Expert in that media.

My personal recommendation is My Lead System Pro or MLSP as your Affiliate program.  If you have your Network Marketing Company already, MLSP will grow your network beyond your wildness dreams.

This is only a suggestion.  But one I wish I would have made may years ago.  And now MLSP will have you try or TEST DRIVE their system for less than $10.00.  At this price you can not make a mistake.

I invite you to TEST DRIVE MLSP by simply CLICKING HERE.

Here’s to your success no matter what your decision may be.

PS:  Remember, combining both Network Marketing and Affiliate Marketing just makes Cents!