Please consider this free-reprint article written by: Evelyn
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically
free-only publications such as a website or an ezine as long
the bylines are included.
- You are not allowed to use this article for commercial
- You are not allowed to use this article in UCE (Unsolicited
Commercial Email) or SPAM. This article MUST be distributed in
an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we
ask that you send a copy of the newsletter or ezine that
contains the article to firstname.lastname@example.org
- If you post this article in a website/forum/blog, ALL links
MUST be set to hyperlinks and we ask that you send a copy of
the URL where the article is posted to email@example.com
- We request that you ask permission from the author if you
want to publish this article in print.
The role of iSnare.com is only to distribute this article as
part of its Article Distribution feature (
www.isnare.com/distribution.php ). iSnare.com does NOT
own this article, please respect the author's copyright and
this publication/reprint terms. If you do not agree to any of
these terms, please do not reprint or publish this article.
Article Title: Affiliate Marketing Versus Network Marketing
(MLM): Income Formula Revealed!
Word Count: 846
Article URL: www.isnare.com/?id=2310&ca=Internet
Author's Email Address: firstname.lastname@example.org
Article Source: www.isnare.com
Online Publisher Tool: www.isnare.com/html.php?id=2310
------------------ ARTICLE START ------------------
Both affiliate marketing and network marketing pay people for
referring a product or service. What then is the difference
between affiliate marketing and network marketing?
The difference is best explained in terms of the way
compensation is structured to pay for performance. Because of
the many hybrid forms of compensation payments available now
the internet, to a newbie scouting for business opportunities,
it is easy to get confused over the many terms and definitions
used. In evaluating compensation plans, it is essential to
understand the subtle difference between the two models.
Ultimately, you want to understand…which model yields more
What is affiliate marketing? Affiliate marketing is usually
done online. In its simplest form, affiliate marketers are
compensated on a one time transaction only. Unlike products
offered in a MLM business, affiliate products are often ones
that a customer would only need to purchase one time. Thus,
more the affiliate marketer sell, the more they make. This is
quite akin to direct sales albeit made via the internet.
Affiliate marketing has a compensation plan based on
performance measures. For instance, if the affiliate marketer
is successful in the form of sales, clicks, registrations,
he/she gets rewarded. The desired action as a means of
compensation is already pre-agreed upon by the affiliate
merchant and him/her.
In a short space of time, the affiliate marketing model has
also evolved to a 2 level (or in some cases, up to 5 levels)
compensation plan. In the popular 2-tier version, for
instance, you (as an affiliate of a particular e-book
will earn commission when you sell a book to person A and if
person A signs up to be an affiliate and manages to sell to
person A1, you get compensated too, in addition to person A.
Let’s now go on to talk about what network marketing is. In
network marketing model, the compensation plan works in a
similar fashion, except that compensation by the sponsoring
company can be paid up to several, several or unlimited
The number of levels and restrictions in terms of payout is
much dependent on the arrangement offered. As arrangements
vary from one company to the next, this makes comparisons of
the various compensation plans available out there difficult.
So be sure to read all the fine print!
At any level, a network marketer has the potential to earn a
direct referral fee for directly recommending someone and a
leverage fee when one of his/her “downlines” is successful for
referring friends to the same network. In the popular binary
plan adopted by many network marketing companies, each person
in the network has two “legs” or “downlines”. If more people
get referred to the network, they automatically go below the
Ongoing customer use is what creates the real residual income
in network marketing. The MLM business can generate earnings
for a very long time even after the initial years of hard work
and investment. With a solid network, residual income is
assured at each renewal period of a “downline”. If the
or service involved in is one that has to be reordered at each
renewal period, income should just keep coming in like clock
How does the difference in affiliate marketing and network
marketing translate into in terms of building your customer
relationships and your earnings power? In the network
marketing model, to ensure that your “downlines” renew at each
period, you must ensure that you build up a good relationship
with them. It is essentially a people-build-people and a
leader-build-leader business. The ability to generate huge
sums of money is increased exponentially when the network
grows. The potential to make huge sums of money is thus
greater here if you can employ the efforts of others to help
grow the business vis-à-vis the affiliate marketing model. In
affiliate marketing, your earnings ability is limited by your
own direct sales plus an additional of 1, 2 or up to 5 levels
of leveraging efforts.
Having described the above, it would seem that to maximise
income, it is best to join online network marketing programs
opposed to affiliate programs.
Nope...I don't think that's really the case either.
Affiliate marketing is best described as an entry to online
network marketing. Affiliate products are easier to sell,
likely to involve one rather than an array of products and
therefore, less expensive. For instance, an e-book is likely
to have an associated affiliate program while access to a
membership site of digital products is more likely to pay for
recurrent renewals of membership.
In conclusion, there is always no harm in joining different
programs whether affiliate or network marketing ones. Just be
sure that you understand how you are paid and channel your
efforts accordingly. Afterall, your goal is to build multiple
sources of income. You have a choice to represent what or
which combination of products/programs work best for yourself.
About The Author: Evelyn Lim is an online business
entrepreneur. She publishes a free weekly newsletter "Mapping
You to Success" for aspiring e-biz owners. The aim of her
publication is to equip readers with the skills to acquire
multiple sources of online income. To subscribe, please visit
------------------ ARTICLE END ------------------
For more free-reprint articles by Evelyn please visit:
Looking For Quality Content?
The Syndicator provides free, quality syndicated articles
for your website that are automatically updated each week.
Syndication feeds include:
Web Design Tips
Home & Family Matters
Health & Fitness
Post Articles: mailto:email@example.com
Change subscription: groups.yahoo.com/group/aainet
List owner: mailto:firstname.lastname@example.org
Yahoo! Groups Links
<*> To visit your group on the web, go to:
<*> To unsubscribe from this group, send an email to:
<*> Your use of Yahoo! Groups is subject to: