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Which Is More Favorable: Affiliate or Network Marketing?

Postby Milton Cai on Tue Mar 02, 2010 4:31 pm

I'm wondering whether affiliate marketing is viewed more favorably in the make money online world than network marketing.

Does one appear to be more respectable than the other when you tell people about it? I think Amazon and Amway were the first two companies that successfully created these two industries as a reference.

Based on your experience and the features of each, why do you think promoting one has more advantages than the other and that makes it a lot easier to convince a lead to buy from you?

Milton

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Re: Which Is More Favorable: Affiliate or Network Marketing?

Postby Sandeep Nath on Tue Mar 02, 2010 8:45 pm

I view affiliate marketing as an S-quadrant business and network marketing as B-quadrant. To each his own... however here are the differences:

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Re: Which Is More Favorable: Affiliate or Network Marketing?

Postby Milton Cai on Wed Mar 03, 2010 3:52 am

freemoney wrote:You are going about it all wrong Milton (no offence).

If you are trying to find a product to convince people to buy from you.

What you should be doing is finding a market where people are looking to buy something, and sourcing a product you can supply to meet their needs.

You are fighting an uphill battle if you are trying to convince people to buy something.


Actually, Dean, the product is just of secondary importance. The main thing I was trying to get at is whether it is more socially respectable to be an affiliate marketer than a network marketer. Based on experience, I think people are less receptive to a network marketer's offers vs an affiliate marketer's offers.

There is some sort of negative stigma that network marketers have to deal with because before magnetic sponsoring or attraction marketing were in place in the old days, network marketers were known to be aggressive sales people who try to prospect anyone within 3 feet of them or try to make a sale. This perception has not been fully eliminated in a lot of people's minds since the Amway days. So I think affiliate marketing is more favorably view by the average population.

Sandeep, I think Affiliate marketing could be in the B-quadrant as well. If you're the advertiser than you belong in the B-quadrant since affiliates are promoting for you. Actually, do you still think affiliate marketing belongs in the S-quadrant if sales were done on autopilot? There are lots of successful affiliate marketers who outsource their fulfillment process as well so they definitely have a business and not just merely being self-employed.

Do you think these views are still the case since the days of belly to belly prospecting?


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Re: Which Is More Favorable: Affiliate or Network Marketing?

Postby Michael B Wilbraham on Wed Mar 03, 2010 5:05 am

This is like trying to compare used car salesmen to real estate agents!

Both are trying to move real products using marketing efforts. Just two different business models. If you are asking whether a customer would prefer to buy a product through an affiliate or through a network marketer, I think it probably does not really matter much - the question there would be "does the product offer value for money"? If it does, then it really makes no difference to the customer - the product will be bought.

If you are talking about whether to be an affiliate or a network marketer, considering possible negative connotations attached to each by prospective team members or affiliates, then there are pro's & con's for each...this forum post could never cover them all! I'm sure we can all attest to being "ripped off" by both industries in the past.
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Re: Which Is More Favorable: Affiliate or Network Marketing?

Postby Volker Schaefer on Wed Mar 03, 2010 8:07 am

I personally know NOBODY who earns much money with affiliate marketing

but

I have some friends that earn more than one million dollars in Network Marketing EVERY YEAR

and

I have more than 10 very good friends that earn more than 100.000 $ per year every year

and I personally know more than 1.000 people that earn enough with network marketing to live only from this business.

For me Network Marketing is number one.

Much success for all of you

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Re: Which Is More Favorable: Affiliate or Network Marketing?

Postby Justin jr on Wed Mar 03, 2010 9:13 am

Hi Milton,

Both business models can make very good money and are respectable. Your answers depends on who you ask/which forum you are on. What is more respectable for you? IMO both business models should be used for small businesses.

Why choose one or the other? Do both. Start which ever one you like more.

The good thing about affiliate marketing is you do not have to sell anything to get paid. You can generate leads and get paid.

But the real sweet spot is being the merchant that uses affiliate to advertise. Think clickbank or CPA networks. I see Numis Network is advertising in CPA networks (neverblue atleast). Numis Network is paying out $2.25 for a name, email, phone #.

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Re: Which Is More Favorable: Affiliate or Network Marketing?

Postby Levi Manners on Wed Mar 03, 2010 5:18 pm

I think Affiliate is more favorable than Network Marketing (mlm).

As 'money is in the list' and only applies to network marketing, as an affiliate a list is not necessary. If you do not have a list before joining mlm (500+), which by the way the majority does not, than expect to include yourself in the 98% that fail. Whereas, affiliates can build a list if they want prior to joining a non-mlm program and do not have to support their downline and still earn residuals. As a sponsor in mlm you had best be supporting your downline as much as possible or your income will decline. MLM is a good opportunity if you've got the large list or own the business. If you are starting off in network marketing with NO LIST, than quit while you're ahead. If you are the owner than you are in pretty good position, obviously.
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Re: Which Is More Favorable: Affiliate or Network Marketing?

Postby Levi Manners on Wed Mar 03, 2010 5:30 pm

Awesome. That's good for them.. what about the 97% who make $0?

Personally I make $1060.45 per month as a hosting affiliate and pay monthyl fee of $24.95a/mo. I can tell you I make more than most mlm'ers in here and in a shorter period of time. Best of all my monthly income never decline as I do not depend on downlines. I know many in warriorforum.com personally who are making $3,000-$5000-$10,000 monthly income as affiliate. NON are in mlm.
Levi


Volky wrote:I personally know NOBODY who earns much money with affiliate marketing

but

I have some friends that earn more than one million dollars in Network Marketing EVERY YEAR

and

I have more than 10 very good friends that earn more than 100.000 $ per year every year

and I personally know more than 1.000 people that earn enough with network marketing to live only from this business.

For me Network Marketing is number one.

Much success for all of you

Volker :D
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Re: Which Is More Favorable: Affiliate or Network Marketing?

Postby Milton Cai on Wed Mar 03, 2010 7:35 pm

Michael wrote:If you are asking whether a customer would prefer to buy a product through an affiliate or through a network marketer, I think it probably does not really matter much - the question there would be "does the product offer value for money"? If it does, then it really makes no difference to the customer - the product will be bought.


In general I agree with this. What I'm referring to is given that both an affiliate marketer and network marketer offer the same product with all things being equal except their respective association, which one is more likely to make the sale on first impression provided the customer knows the association of each one? It probably won't much difference if the customer is a repeat buyer and the product delivers value as claimed.

Volker Schaefer wrote:I personally know NOBODY who earns much money with affiliate marketing


Have you heard of affiliate marketers like Jeremy Schoemaker, $10 million dollar earner, or Mike Filsaime, $25 Million dollar earner? How about the world's #1 affiliate marketer, Ewen Chia? Joel Therien and Tissa Godavitarne are just a couple more. There are lots of big name affiliate marketers. Here is an article stating that affiliate marketing will be a $4 billion industry by 2014 in the US alone. I believe there are more affiliate marketers and affiliate programs in the world than network marketing businesses. Some of the well known affiliate networks include clickbank, commission junction, zappos, shareasale, paydotcom, and amazon just to name a few of them. There is no doubt a huge market there and many people are making money. By the way, magnetic sponsoring has an affiliate program that pays 40% commissions :)

Justin wrote:
Both business models can make very good money and are respectable. Your answers depends on who you ask/which forum you are on. What is more respectable for you? IMO both business models should be used for small businesses.


I agree with this Justin. Anyone who participates in both industries will see more frequent paychecks IMHO. I think we will see more and more companies eventually integrating these two business models together. Do you think that is the case?

Levi wrote:As 'money is in the list' and only applies to network marketing, as an affiliate a list is not necessary.



Actually, many Super Affiliates have huge lists that they market to often. It's true that as an affiliate it's not necessary to have a list but all the top earners do. It applies to AM as much as NM. 'Money is in the list', that is, a relationship that you have with your list and they are responsive to you.

Dean wrote:If you want to rise above all that Milton I suggest you start your own business.


Anyone who wants to make decent online living must have their own business. Do you qualify having your own business as earning a certain amount of money per month? Anyone can start a business but it doesn't mean that it'll be profitable.

Levi wrote:Personally I make $1060.45 per month as a hosting affiliate and pay monthyl fee of $24.95a/mo. I can tell you I make more than most mlm'ers in here and in a shorter period of time. Best of all my monthly income never decline as I do not depend on downlines. I know many in warriorforum.com personally who are making $3,000-$5000-$10,000 monthly income as affiliate. NON are in mlm.


That's a great example of AM success, Levi! Many MLMers here are making well into the 6 figures so that's not a matter of question at all. Web hosting affiliate programs also generate residual income too and their offerings are essential product/service to any business that needs a web presence.

Do you think a hybrid AM and NM business model would be even more profitable than what you're making per month now? Such as having magnetic sponsoring as the AM business front end, and web hosting company like Global Domain Internationals as a residual income MLM back end.

What I'm trying to get at is that NM have to jump through an extra hoop when prospecting/selling to generate desire and trust due to the stigmatism whereas an AM doesn't have to worry about that upfront.

So, if you've done both, has that been your experience or it really depends on whether you're trying to sell a product/service vs trying to get someone to join your business opportunity?


M
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Re: Which Is More Favorable: Affiliate or Network Marketing?

Postby Milton Cai on Thu Mar 04, 2010 2:23 pm

Actually I remembered in Mike Dillard's video during the release of MLM TF2.0 that you really don't have your own business if you signed up with a network marketing company because that could be taken away. Your business is really your list. When you've developed a relationship with your list, then your business is really the monetization of the list. Is this what people remembered as well?

M
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