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Affiliate marketing is digital, using banners and links, while network marketing relies on personal relationships. They differ in compensation plans, software, and support. Understanding these distinctions is key for success in each strategy.
In the world of marketing, distinguishing between affiliate marketing and network marketing is crucial for businesses aiming to succeed. Robert Procter, an expert with over 20 years of experience in launching network marketing companies, delves into the fundamental differences between these two marketing strategies.
Affiliate marketing is predominantly digital. It involves promoting products through banners and links distributed across the internet, emails, or other websites. The goal is to drive traffic to your affiliate program without the necessity of personal interactions. Conversely, network marketing thrives on personal relationships. It's about reaching out to friends, family, and acquaintances to build a network that promotes and sells products.
The compensation plan in affiliate marketing is straightforward, often involving one or two levels of commission. Affiliates might earn a percentage from direct sales and possibly a smaller percentage from secondary referrals. In contrast, network marketing features a more complex multi-level compensation plan. It includes multiple levels of earnings, ranking systems, and bonuses, making the income potential more layered and incentive-driven.
The software used in affiliate marketing is typically basic and cost-effective, ranging from $100 to $500. It offers limited customization, as it is usually a fixed program designed for simple operations. On the other hand, network marketing software is robust, allowing for significant customization and modifications to meet specific business needs. Moreover, the support infrastructure for network marketing is generally more comprehensive, providing international support and a dedicated team to assist in scaling a business.
For businesses looking to establish a presence in the marketing world, understanding these differences is vital. Affiliate marketing offers a low-cost entry with straightforward operations, suitable for those looking to leverage digital platforms with minimal personal interaction. Network marketing, however, requires a commitment to building relationships and a willingness to engage in a more complex operational structure.
What is the primary difference between affiliate and network marketing? Affiliate marketing is digital and transactional, focusing on promoting products online without personal interaction. Network marketing is relationship-based, relying on personal networks to promote and sell products.
How do compensation plans differ in these marketing strategies? Affiliate marketing typically offers simple one or two-level commissions. Network marketing provides intricate multi-level compensation with potential for bonuses and ranks.
Is network marketing software more complex than affiliate marketing software? Yes, network marketing software is more complex and customizable, designed to support a multi-level structure, whereas affiliate marketing software is simpler and less flexible.
What type of support can I expect from each marketing strategy? Network marketing usually offers extensive support, including international assistance and dedicated teams, while affiliate marketing support is often limited and less comprehensive.
Understanding these differences can guide businesses in choosing the right strategy and tools to thrive in their marketing endeavors.
what is affiliate marketing versus.
network marketing hi I'm Robert Procter.
the last 20 years I've been involved in.
launched over a thousand network.
marketing companies today only ten.
percent are still in business ninety.
percent failed I want to give you some.
tips and tools some hints and.
suggestions to avoid being part of the.
90% that failed and be part of that 10%.
that succeeded so there's a big.
difference in what is affiliate.
marketing versus what is network.
marketing I talk to a lot of different.
companies every week every month and.
they don't always understand what is the.
difference I get some clients saying.
well we're just going to be an affiliate.
network marketing company or we're gonna.
be an affiliate company when in essence.
they're actually a network marketing.
company so I want to give you a little.
bit of education today on what is the.
difference between affiliate marketing.
and network marketing first affiliate.
marketing is really digital versus.
network marketing is really personal.
what does that mean digital means as an.
affiliate you're gonna get some banners.
you're gonna get some links you're gonna.
broadcast it all over the Internet.
you're gonna send it out in emails.
you're gonna put your banners and your.
links on other websites and you're gonna.
hope to get some traffic to your.
affiliate program to sell your books or.
your software versus network marketing.
which is really a relationship.
relationship based business you're gonna.
call your friends you're gonna post on.
your social media you're gonna call your.
family you're gonna ring up kids that.
you went to school with college friends.
and you're gonna try to get them.
involved in the business because it's a.
relationship business in affiliate.
there's really no relationship you're.
not calling your friends and your family.
saying hey you should join my affiliate.
program or hey you should buy the.
products from my affiliate website.
usually affiliate marketing is if I own.
a bookstore or I own a pet so let's say.
I owned a pet store I would go join the.
Amazon affiliate program and on my pet.
store website I would put links to.
products that people could buy at Amazon.
or maybe books about cats or dogs or.
Birds.
that's affiliate marketing versus.
network marketing is all about the.
relationship also what's different about.
affiliate versus network marketing is.
the compensation plan is completely.
different most people don't know that.
amazon. com now 160 billion dollar.
industry got launched as an affiliate.
network market or is an affiliate.
marketing company.
Bezos actually launched a 2-level.
affiliate marketing company in Amazon I.
cease to belong to that about 13 years.
ago the difference is the compensation.
plan in affiliate marketing it's one or.
two levels.
it's you're gonna get maybe 10% on your.
first level maybe 5% on your second.
level there's no complicated.
compensation plan or that you might find.
in network marketing there's no matching.
bonuses and generational bonuses there's.
no ranks it's completely different.
multi-level marketing is about paying.
more than two levels it's a path paying.
multiple levels it's about ranking up.
you have ranks you have requirements to.
reach those ranks and you have rewards.
when you hit those in affiliate.
marketing you don't have any of those.
whatsoever what else is different the.
software is completely different you.
know that's what I've been doing for 20.
years almost 30 years is providing.
software to the network marketing.
industry affiliate software is basic.
bare-bones software you're gonna.
probably download it from the web.
someplace you're gonna buy it.
inexpensively you can get affiliate.
software for you know 100 to 500 bucks.
it's not complicated software network.
marketing software is a more robust type.
of software system affiliate software.
you're really not gonna be able to get.
any changes done to it it is what it is.
network marketing software you're gonna.
work with a software company such as.
myself to have changes made to the.
system to the software to look to the.
field of the back-office to the shopping.
cart to really get what you want it to.
be in affiliate marketing software.
you're not going to have much.
flexibility in that software what else.
it's fixed programming versus modifiable.
what does that mean again as I just said.
in affiliate software you're not gonna.
be able to do many modifications in MLM.
software you're gonna be able to make.
all those tweaks and those changes that.
you want and the last thing and I think.
this is really important if you're.
looking to launch a company whether it.
is an affiliate company because.
multi-level marketing software can.
handle an affiliate program if you buy.
an affiliate software you're not going.
to get much support usually affiliate.
software is designed by two or three.
guys working from a dorm working from.
their home working from a small office.
they don't have international offices.
they don't have international support.
that's what you really need if you're.
going to launch a network marketing.
company or any type of company expect to.
make.
a lot of money from an impact a lot of.
people is you need multi-level marketing.
software so the support that you're.
gonna get from an affiliate software.
package versus the support that you're.
gonna get from a robust MLM software.
package is really a big difference you.
have been doing this for almost 20 years.
over 20 years and I've consulted with a.
lot of different companies on really.
what they need to launch an affiliate.
company versus a network marketing.
company if you think I can help give you.
some value maybe Drive you in the right.
direction on what you need do me a favor.
give me a phone call send me an email my.
contact information is on this page if.
you got some value from this video today.
do me a favor like it share it let some.
other know others know and hey have a.
great day and we'll see on the next.
video.
[Music].
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