Network Marketing Vs Affiliate Marketing is the most controversial topic on the internet. There is always a fight between the people who support Network Marketing and the people who support the Affiliate Marketing
As probably nowadays everyone is familiar with these two terms, so let’s directly jump into their pros and cons.
Listen to our Podcast Ep 1: Money Should Not Be The First Priority
Network Marketing Pros
The process of building multiple levels in a network marketing company puts you through a lot of challenges.
Which ultimately brings you beyond your limits of capabilities you never explored ever. Like from recruiting started two down line to 100s of down lines you need to continuously tackle people having different mindsets & capabilities.
This is fairly tiring and helps you to understand the psychology of human behavior and gives you better adaption to the nature of the client you approach.
This again pushes your personality to learn about how to make the person understand your idea.
As you grow in a Network Marketing company you become more fluent with your delivery of words, while presenting your ideas or products which you are selling.
The fluent flow of speech comes with practice so when you meet multiple people in a single day, present your product & pitch them with sales scripts. You have to be a good speaker and that is why the communicating skills pushed and polished while pursuing a network marketing career.
The team-building skills and team management comes into account when someone manages different talented people’ on a single mission or to complete a single task.
Here in Network Marketing people do the same, while building a team you have to continuously put on guidance on your team. If they feel distraction and hindrance in their path, being an up line you have to be a torchbearer for the path of their success.
Network Marketing demands high team-building skills. By the time you grow in a network marketing company, you upscale your team-building skills automatically. It’s actually not effortless but you can say it is spontaneous to the efforts you put in gaining the no of sales.
Network Marketing Cons
To survive in a Network Marketing company the initial thrust is gained by recruiting people in your team so that they can recruit more and more people in their team. That’s how your down line grows, and as your team sells products and ultimately you earn.
But the problem is you have to meet each and every single person to generate leads for yourself. Which you use to convert them into sales.
Now here is the thing…
To generate leads there are factual stats which is being considered in every MLM or networking marketing companies such as:-
To generate 3 leads you have to meet 10 people that means here the ratio is 3:7 means 7 out of every ten people you meet or pitch, will not be interested in your deals or products
And to convert those leads into sales there is a percentage of 3 to 12 of conversion, which means in every 100 leads you will be able to convert about 3 to 10 or a maximum of 12 people.
According to different experienced network marketers, these stats are a bit variable and depend upon the product of the company.
Translucent cash flow
The flow of cash within most of the network marketing companies is not transparent.
What does it mean?
Simply, the sales every year all the network marketers generate is the main source of income of the company, but they never distribute the commission fairly to all the salespeople instead of that they distribute a very very small part amongst all the hustler and salesperson or their affiliate associates.
In a few suspicious companies, people who put their efforts never get their real price that the person deserves for his/her efforts.
Requires Influencer Skills
The MLM companies or the Network marketing companies have made so many millionaires in these past 20 years.
Which inspires many youngsters who are aspiring to be a millionaire and fulfill all their dreams. So that they could be able to produce one value to their family and to the Community.
But the most needed truth is, every individual is not made for MLM either you have to have the influential skills or you have to develop them in yourself with humongous efforts and struggle in any MLM company. This is the demand of being an MLM associate or network marketer.
The time demand in the network marketing business is way more than any business because you have to focus on every lead to make sure of getting the conversion done.
From a prospect to a lead to follow up and up to months conversion it may take a time of months.
To consult your team and plan out future strategies you have to continuously meet your team which is time-consuming.
Higher Effort Level
Network Marketing business requires an all-day effort in pitching sales calls to the clients generating leads out of it and converting them out.
Mentoring your team going for motivational events took much time and effort on travel as well.
Spoils Peer Relationships
Most affiliate marketers go through an insecure phase of their life. When they pitch their sales call to their friends, they push them to buy the product or join them continuously.
Which is really frustrating to them and even breaks the friendships and relationships between colleagues.
The people around multi-level marketers are sometimes spamming even that individual, mocks that person in getting together and parties as a “salesman”.
Affiliate Marketing Pros
Zero Interaction Required
Affiliate marketing is the modern version of marketing a product without actually having an interaction physically with anyone. The affiliate products do not bother with how you convince people to buy the affiliate products. You get your commission on time whenever you make a sale.
You just have developed a platform and grow your audience over it.
Could be social media, could be Youtube or a website or anything which you would use to interact with a huge audience and sell them products.
The growth in affiliate marketing is completely controlled under your hand and nobody can bother your success anyhow. Your efforts will only make you richer. Unlike the network marketing in which if you down line recruits a very useless down line, who does not put any effort but makes your team weak. Which ultimately degrades your income, revenue, or morale and sometimes disheartens your determination.
Recurring commission is a blessing to affiliate marketers and it is the game-changing thing in terms of generating revenue online.
Recurring commission means you get paid not just for the sale you do, but you get paid whenever the customer buys or renews the service.
Mostly the recurring commission is provided by the digital products for instance web hosting, domains, SEO tools etc. Which you could never encounter in any network marketing company.
Transparent cash flow
The best thing about affiliate marketing is that you have complete control over the cash flow and sales data.
A brief account of your sales, no click, and everything is available for you in every affiliate program, which you can track to analyze your performance.
So that you can enhance your platform, basically the data you access through the control panel on the affiliate program works as feedback for you as well.
Affiliate Marketing Cons
Earning through affiliate marketing is a bit tricky if you’re not the person using a desktop or laptop on a regular basis and have good hands-on working on the internet.
But don’t worry it’s not that difficult to earn through affiliate marketing. Actually, you have to grow a platform on which you can interact with your audience and build a relationship with your audience. To know more about this you can check our blog on “10 ways of making money online”
You can make a YouTube channel or a blog or any niche website that could engage people on it.
And it takes time to build that relationship which could let your audience invest their trust and money over you.
“Having depth in the audience is the key to tremendous growth in social media”, these are the words of a social media influencer Ranveer Allahbadia upon his channel. Which I think is very next to reality.
Because to make people trust you and sharing a rich bond is very difficult in today’s world. Because there is a lot of negativity out there in this world hence people afraid to trust others especially on digital media. That is why creating a depth among the trust of the audience is very crucial.
If you fail to make it and if you fail in building authority of yours among your audience, you will not be able to make huge success in affiliate marketing or your growth will saturate easily.
I hope I have cleared all your doubts and questions about both the marketing techniques. And if you are satisfied enough then do share this blog.
In conclusion, the only thing I would love to say, that is choosing between network marketing vs affiliate marketing is pretty simple and clear. To make more money online with a bit of ease, you should go with affiliate marketing and it’s quite easy to learn all the tactics.
There is no doubt about the exposure and growth of personality that the network marketers get, but you can’t stake your whole career just for a bit of change in your confidence or traits.
Most people even people didn’t get anything from network marketing until and unless they invest a huge span of time of about 5 to 6 years.
And for a novice gem who wants to earn a bunch of money out of his/her spare time, then network marketing will be slightly difficult because of its time and higher effort-consuming nature.
Unlike this, affiliate marketing has a recurring revenue generation opportunity, which could act as a making asset for you.
I hope I’ve cleared all your doubts and questions about both the marketing techniques. And if you are satisfied enough then do share this blog.
Sandeep Singh is a co-founder of Genrk