Affiliate Marketing or Network Marketing - Which One is Better?
Do you want to own a lucrative online business? Affiliate Marketing and Network Marketing are two business models worth considering. Both can help you make good income without investing time, money or energy in manufacturing your own items. However, there are certain differences in the way these business models function. You must know these, to make an informed decision about which one will be better for you.
What is Affiliate Marketing?
An online business model, it helps you to earn commissions when you promote third-party products through affiliate links. This income model is quite popular among bloggers and online marketers, as there is no need for any direct selling, inventory or customer service.
As an affiliate marketer, you can earn through various commission models, such as Pay-Per-Sale (PPS), where you can earn a commission whenever a sale is conducted through your affiliate link.
Then there is Pay-Per-Click (PPC), which lets you draw a payment for each click on your link.
Finally, there is also Pay-Per-Lead (PPL) that lets you earn a commission whenever someone completes an action or makes a registration.
Pros of Affiliate Marketing
There are various advantages of affiliate marketing. To start with, the startup costs are low. You do not have to buy any product or make financial investments in product inventory.
Also, there is no need for direct selling. You do not have to interact with customers or hire anybody for product-selling purposes.
There is also the chance to promote many products across various niches. You do not need any physical address or office for your affiliate marketing operations.
What is more, there is excellent passive income potential. If you can get consistent traffic to your link, you can earn even if you are engaged in other activities.
Cons of Affiliate Marketing
In the absence of sufficient traffic, you will not be able to make enough sales.
There could also be delays in getting your earnings cleared, as many affiliate programs have 30 to 90-day payout cycles. With MLM software development company and network marketing, you do not have to encounter such issues.
Also, the same items are promoted by many affiliates, which leads to competition.
There is also the possibility of reduced commissions, as brands can close programs or reduce affiliate payouts.
What is Network Marketing?
Also referred to as multi-level marketing (MLM), this is a direct selling business model. You can earn by hiring new team members or through product sales.
As a network marketer, you can earn in many ways. You can sell items directly and earn a percentage of personal sales. You can also get commissions for every new team member you hire. You can also earn a commission from the sales made by your team members, thus making a passive income.
Pros of Network Marketing
Almost every MLM software development company in India is ready to offer mentorship and community benefits. With network marketing, there is the major advantage of being able to get support and training from MLM companies. You can also earn commissions from the sales of your team members over time, which ensures solid residual income potential.
You can also get the chance to be a business leader, developing and managing your own sales network.
You can also make money from exclusive products, by working with businesses like MLM software company.
Cons of Network Marketing
There are some challenges too. Your success in network marketing often depends on being able to hire new members. Further, some MLM businesses focus more on hiring new team members and growing the network, rather than concentrating on actual product sales.
Also, due to low earnings, many network marketers tend to quit business.
Further, there is instability in making an income, because your earnings can reduce if the hires under you quit.
Conclusion: Which One is Better?
If you do not want to stress about inventory, recruitment or customer service, it is better for you to opt for affiliate marketing. However, if you want to make fast profits, it may be better for you to go for MLM marketing and the best MLM software company. Network marketing might be more suitable if you prefer direct selling and wish to be a team leader.
