Affiliate marketing is a kind of marketing in which an affiliate directs buyers who are interested in buying a certain product towards a particular company to which they are associated. For every referral, the company pays the affiliate a certain commission. On the other hand, network marketing refers to when a person buys the products from a supplier, and resells the product at a slight profit. In many ways, affiliate networks are more beneficial for the persons involved.
One marked advantage is that those marketers who indulge in affiliate marketing are not required to make any kind of payments initially. Network marketers, on the other hand, have to purchase the products from the supplier before he can begin marketing. Additionally, in affiliate networks, the marketer is given a high monetary commission that is pre-determined, but network marketers receive the monetary compensation based not only on the sales the marketer makes, but also by the sales of his subordinates.
If the marketer and his subordinates fail to make sales, their income is drastically affected. Affiliate marketing is more focused on promoting the products online, while network marketing prefers one-on-one selling. Sellers in the affiliate networks make their money by just working from their homes, but the marketers in network marketing are often required to work either from their workplaces, or from going home to home demonstrating their products.
Generally, comparing affiliate marketing and network marketing, shows that the profits vary substantially between these two systems, but affiliate marketing shows a slightly higher scope for profit. In Affiliate networks, the affiliate is not required to coach subordinates in how to make sales, but is only required on what he has to accomplish in order to attract the buyers. The seller can simply sell the products of the company he is affiliated to, without having to worry about the duplication of his downline, or the training of personnel. Affiliate companies pay all their affiliates the same amount of money, there is no hierarchy involved in the structure of affiliates. The new affiliate gets just as much money as the older affiliates for doing the same amount of work.
While marketers who like working by themselves are more suited for affiliate marketing networks, people who work well in teams are best suited for network marketing. While both these types of marketing as beneficial in their own ways, affiliate marketing is ideal for those people who wish to work from their homes.
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