Check out the video below to help you decide which type of online business is right for you: affiliate or network marketing.
Do you want to know the difference between affiliate marketing and network marketing? Stay tuned. As I highlight the differences, I define both, and I’ll tell you which one’s right for you.
[00:00:13] Hello, YouTube. It’s Alston. And welcome to my channel, where I discuss affiliate marketing, passive income, and making money online. Be sure to like subscribe and ring the bell so that you can learn tips and tricks. Affiliate marketing. Alright. So before we get started, the quick question of the day is, what is your preference?
[00:00:28] You prefer network or affiliate marketing, make sure that your comment is below because I will respond to every comment. So a quick backstory about me. My first exposure to networking marketing actually happened a long time ago. I actually have two instances. First, I can think of my parents, who use to buy and sell Amway products.
[00:00:48] If you will. If you aren’t familiar with Amway Park, they’re basically an array of different things if you aren’t familiar with Amway products. Still, we had cleaning solutions that you could use and dilute and sell and resell to keep your house in different various parts of your home cleaned.
[00:01:05] The second thing that comes to mind when I think about network marketing is someone going door to door in my neighborhood, selling. If I remember correctly, Avon had little booklets that were about this long, and they were making a product. So actually, comment below with and wrong.
[00:01:20] But I’m pretty sure Avon, what is the makeup product person? And so somebody would come by every second. And if we weren’t home, they would stick that little booklet in the door with their business card. And if you were interested in buying the makeup, you could fill the products with them. So that is basically my experience with network marketing, but let’s get down to it.
[00:01:41] Let’s compare affiliate marketing and network marketing. We’ll talk about the pros, the cons, and which one is right for you. Let’s start with affiliate marketing. So affiliate marketing edits core is someone recommending a product or service based on a customer’s problem. The customer, for example, may feel like their foot is too heavy and they want to lose 10 pounds.
[00:02:04] So basically what they’re going to do with the customer is going to do is they’re going to Google search, how to lose 10 pounds in mine. You, the affiliate marketer, you’re going to solve that problem. You can give them several options. You can give them a list of five things that they can do, but you can also recommend a product or service that will help them lose that 10 pounds faster.
[00:02:25] So what you would do is you would say you can walk on one leg for. For 10 weeks, and you’ll lose weight there. You can stop eating whatever you can lose weight there. Or you can take this magic weight loss pill that will only affect your foot. That is affiliate marketing. Normally, what someone will do is create a series of content, pieces of content around this problem or solution.
[00:02:53]But you don’t necessarily have to, really. You’re an affiliate marketer. Once you get your affiliate link and you push that link out to people. To fulfill a need or perceived need. So let’s talk a little bit about the pros and cons of affiliate marketing. Here is a list of pros. There are no physical products.
[00:03:10] So if you recommend this magical foot weight loss pill, you can just send them your affiliate link. The customer clicks on that link, they get directed to Amazon or fat foot.com. They buy the product, and you get a portion of the commission. Again, there’s no customer service. If they have an issue, if they don’t lose the 10 pounds and they’re bought as fast as possible, they contact flat foot.com, and they don’t bother.
[00:03:38] The only caveat to that is if they don’t like the YouTube video, then they give you thumbs down, or they make comments. So another pro for marketers is you just create content. You can create content in any number of ways. You can create blog posts, YouTube videos, podcasts on social media. And forums or forums.
[00:03:57] There are several ways to create content to promote your product or service. Another proof that marketing is you’re helping someone solve a problem. For example, this person feels like their foot is too fat, and you’re recommending a weight loss or afoot to weight loss supplement to resolve that issue.
[00:04:14] So you’re helping someone with their perception. Another benefit of affiliate marketing is you get paid while you’re sleeping. There have been several times when I wake up early in the morning, and I’ll see an email saying that I’ve earned a commission, the commission notification. In fact, I actually wake up before my alarm clock and hopes that I see another one of those emails.
[00:04:33] What was emails will generate a lot of positive energy for you for that day? Again, no sourcing of products. So if you’re thinking about drop shipping, where you’ve got to get the products from Alibaba, get it over to Amazon or whatever, or get it to the customer. You don’t have to worry about any of that.
[00:04:49] With affiliate marketing, you can also be an affiliate marketer for many products. So you could recommend fat foot.com. You could actually recommend yoga mats. So you could do a whole series or several affiliate products just to help that person lose the 10 pounds in their feet as fast as possible.
[00:05:11]So that’s another benefit. Another benefit of affiliate marketing is you can do this from anywhere, so you can recommend products and services on the beach in Jamaica or here in Wisconsin, which is pretty cool. And one of the things that I say w another pro of affiliate marketing is it has a global reach.
[00:05:28] So I can create content about fat feet.com or fat foot.com. I don’t remember exactly what it was. And it can reach someone in Bangladesh or Thailand or wherever they’re at. So that’s pretty cool. So that’s pretty cool. And the final thing that the final pro with affiliate marketing is you can do it on multiple platforms.
[00:05:51] So I have my YouTube videos. I have my website. I also. Post on Quora, all in hopes to help someone with their fat feet. So if this is making sense so far, once you like in comment that this makes sense, if this is helping you make sure that you subscribe and check the bell, ring the bell so that I can continue to create great content for you.
[00:06:12] All right. So we talked a little bit about the pros. Let’s spend a few minutes talking about the cons of affiliate marketing. One of the major cons of affiliate marketing is the payouts can be much lower. Usually, the payouts are only a fraction of the total price. For example, if you are an affiliate with Amazon, your payouts will be between four and 10%, which is relatively low, depending on the cost of the product.
[00:06:37] So if you’re selling them. For if Amazon is selling a product for $10 and you’re an affiliate for that product you own, your commission is only four and 10% of that product or service. Another drawback. Another con is you have to apply to become an affiliate. Not at all. The program just allows you to become an affiliate automatically.
[00:06:56] For example, Amazon, again, you have to have three qualified sales and six months to become a part of their program fully. You get like a trial membership. And then if you don’t earn those three sales in six months, you have to read it. Another con and this isn’t really a conscious something to consider.
[00:07:15] You have to comply with the rules and regulations of affiliate marketing. And to extend that a step further, you have to understand and comply with the rules and regulations of affiliate marketing in other countries. So example, I’m here in the United States. So I have to know and understand the rules in the UK or Russia, or wherever they’re coming from.
[00:07:36]Another con is you are open to internet feeds. And as we know, internet feedback is the worst kind of feedback, especially if it’s negative. So it seems like, for whatever reason, internet feedback can be a little bit more challenging. And so that’s something to consider as well. So, for example, I’m sure somebody will come on this YouTube video or at least this YouTube channel and tell me that this is the worst content they’ve ever seen.
[00:08:02] When in reality, it’s probably not the worst. It’s probably a five. I’m going back. Another con to affiliate marketing is there is a low barrier to entry. And what that means is anybody can get into the affiliate marketing game. Why that’s a con is because it dilutes the product, making it a little bit tougher for affiliate marketers who find the success they’re looking for.
[00:08:27] In fact, they’ll have to constantly get on the hamster wheel to create new content so that they can rise above some of the four or the low-quality affiliate programs or affiliate marketers that are out there. And to that point, another con is it’s very competitive. If you look on this YouTube channel and you just type in affiliate.
[00:08:47] You will see several different affiliate marketers doing YouTube videos about affiliate marketing. If you Google how to make money online, you will see several web pages offering you advice on making money online, but you know that you. She’d come to me to find that information because I’m right.
[00:09:09] Anyway, it’s very competitive. There are too many platforms because there, as I mentioned before, there are a lot of platforms you can get on. In fact, you’ll probably have to get on multiple platforms to find success. You can’t just rely solely on YouTube or just solely on your website.
[00:09:26] You’ll have to do your website. You have to do YouTube. You’ll probably have to do at least two social media platforms to find the level of success you’re looking for. You also have to be concerned with taxes and the liability aspect, but say someone gets sick from taking the fat pills.
[00:09:43] You quite possibly could be liable when again, with taxes, you, because you are a business, you will have to file taxes accordingly. And then another con with affiliate marketing. The payouts can be a little bit slower. For example, several companies out there will pay you maybe 60 days, 90 days after the product has been sold or the purchase has been made.
[00:10:06]They want to make sure they protect themselves from returns. So that, in fact, puts you back a little bit. So those are the pros and cons of affiliate marketing. Now let’s talk about what network marketing is. In addition, we’ll talk about the pros and cons. But make sure that you answer the question of the day.
[00:10:22] Maybe if you remember, the question of the day is, what is your experience with network and affiliate marketing? Which one do you prefer? Do you prefer a network, or do you prefer an affiliate? So make sure that you answer that question below, and I will answer or respond to every single one. All right. So let’s talk a little bit about network marketing.
[00:10:41] No network marketing takes a few different names. It can be called multi-level marketing. Some people perceive it as a pyramid scheme. Most likely, network marketing or multi-level marketing is a person who will create a. Or even like a micro-business that is a part of a larger entity.
[00:11:04] So, while a pyramid scheme has a negative connotation, it is a good way to think about network marketing. So a person sits at one level. Their job is to sell products and services and to get more people onto them. The CSO company is their micro company to sell more products and services and get people into the company.
[00:11:25] One of the great ways to make money with network marketing is to have, I would say, three or four or even five layers beneath you because the way people get paid is they get paid in two ways. They get for bringing people on and getting paid when the lower level sells products and services because a portion of that sale goes to the level above them.
[00:11:48] One of the pros, and as I mentioned my, my family was a part of Avon.
[00:11:57] I Wasn’t able my, my family was a part of Amway products, and I have experienced with Mary Kay and Avon. And there are some new ones. You can see people find success with network marketing. I think Ginsu knives is actually one. Someone would go door to door and sell skins against anyone. It doesn’t matter. Pros you can network marketing is great.
[00:12:22] If you can build relationships at and around you. If you’re good at working with people, you’re good at working in teams. You’re good at seeing an overall vision network. Marketing is great for you. Another thing that I like about network marketing is that it has a local reach. It has both a local and global reach, but network marketing certainly has a local reach, more so than affiliate marketing.
[00:12:45] Again, you can incorporate your friends and family at the local level, and you can get them into your business, and they can actually start the business for you. Another business and another pro of network marketing are again. There’s a low barrier to entry. There’s no experience required, and you can actually become like the CEO of your network.
[00:13:05] So you can get a team of people together. You can assign them to do certain tasks. Certain products might be their featured product, where they sell it, and then you can really grow your business as much as you want to. So that’s pretty cool with network marketing is it can actually be a little, a micro.
[00:13:22] A micro corporation and you’re that CEO of that corporation, another benefit of network marketing is you can be paid much quicker than affiliate marketing. So now that we have looked at some of the pros let’s talk a little bit about the cons with network marketing. There may be an upfront investment to get into the network.
[00:13:42] You may need to pay, let’s say, a hundred dollars. Another drawback is you may actually need to buy the products upfront. So, for example, if you want to get into network marketing and you want to sell cleaning supplies through Amway, as I mentioned, you may need to buy a hundred dollars worth of product. And then, when you resell them, that’s when you recoup your investment.
[00:14:00] So if you have, if you don’t have a lot of money to invest, that can be a challenge when giving in. Network marketing. Another con is that there is a negative perception. As I mentioned, some people think that network marketing multi-level marketing is pyramid schemes, where nobody gets rich, except for the very top.
[00:14:19] That is not truly the case, because if you look at someone like Mary Kay, if you look at the business like Mary Kay, you can see that there is some success, as long as you’re willing to put in the work. And the effort another con is that some people may resort to shady tactics to find the success that they’re looking for.
[00:14:38]They may bait and switch to get people into their network so that they can start making them. Another con is that it may be difficult for you to make money if you’re at a shallow level until you start bringing other people in. So you might be spending a lot of time, energy, and effort selling products and services until you get other people on your network.
[00:15:01] At the lower level. As I mentioned, there may be an upfront cost to buy. Another issue is customer service. So if a customer doesn’t like their makeup from Amway, that’s all right. If people don’t like their makeup from Mary Kay, you might have to deal with a return policy or negative social media posts about you or the product you’re promoting.
[00:15:27] So that’s something that you have to consider as well. Another con or potential con. Network marketing or MLM marketing is that you may have to go door to door. Suppose you are not making your numbers. If you’re not hitting your sales goals, you may have to go door to, to make sales.
[00:15:47] That is a tough way to run a business, but that might be something you have to do to find the level of success you’re looking for. So those are all things that you should consider. As I mentioned, cons may be an upfront investment, there is a negative perception, so it might be hard to get your friends and family involved.
[00:16:05] Some people may resort to shady sales tactics to get you into their network. There also could be high-pressure sales so because there is pressure to recoup your initial investment. Some people may result may resort to high-pressure sales to get there that meet their goals. Another issue that you may run into is people above you putting high pressure on you to make sales to make their goals.
[00:16:33] So the way that network marketing or MLM works is the person above you usually has sales goals based on the person above them. If you aren’t meeting your goals at the third level, you may get pressure from the second level because that first level puts pressure on them. They don’t want to happen because they don’t want to have to go back into their pocket and recoup or payout so that the person above them makes their money.
[00:17:02] So ultimately, if towards the end of the month, you’re not making your numbers. You may get a couple of phone calls or emails and saying, Hey, what’s going on? You may also have to deal with weekly bi-weekly meetings, where you have to divulge your numbers and projections and all of that stuff.
[00:17:19] So those are all things that you need to consider. When getting into multi-level marketing or network marketing. So now that we’ve talked about the pros and cons of affiliate marketing and network marketing let’s jump into when to use affiliate marketing. I think affiliate marketing is best if you don’t want to deal with the customer service, if you like to, if you prefer to create content versus creating a product if you don’t want to deal with physical products, if you don’t want to deal with, if you don’t want to deal with returns, If you like to solve problems, and if you like to work independently, doing affiliate marketing might be best for you.
[00:17:57] So let me say that again—no customer service to worry about you like that. Creating content, you like solving problems, and you don’t mind working independently. All right. So when should you use network marketing right? Network marketing is great. If you like working in teams if you have a great local base that you can rely on, if you don’t, if you like being a CEO, and if you like sales goals and hitting targets and meeting new people, multilevel marketing, or network marketing is the best for you.
[00:18:30] Also, if you don’t mind the customer service aspect of it, deal with customers face-to-face or over the phone. I would definitely consider it multilevel marketing or network marketing. All right. So let’s talk. Which one is right for me now, personally, because I talked about affiliate marketing all day, every day, affiliate marketing, I think is the best way to get started when owning a business.
[00:18:54] If you are looking to own an online business, and you’re looking to scale that to make millions of dollars per year, affiliate marketing is a great way to sell. Network marketing, in my opinion, is a great way to make a side income or for a part-time job. So if you need a, let’s say, a couple of hundred dollars or maybe less than a thousand dollars per month, network marketing is a great way to go.
[00:19:19] If you like meeting, let’s say like doing Tupperware parties or the Rubbermaid party. That’s great for a network marketer. However, if you’d like to be independent, if you like to create content, you don’t mind talking into the camera. So in getting internet feedback, affiliate marketing is for you.
[00:19:39] So make sure you like subscribe, ring the bell at this video, or any other video that has helped you out in any way. Also, I’m going to send you a few different links. The first link is to learn affiliate marketing. Now I have provided a ton of great content on this channel and this video, and all of my others.
[00:19:56] But I want you to go check out this webinar on affiliate marketing. This free webinar will provide tons of helpful content so that you can get started right away. Also, I’m going to provide a link to a blogging course. This course will help you get started at blogging is the method that you want to help people.
[00:20:16]Again, this is a free webinar. With this blogging course, it’s called project 24, and there are 24 basically means that you could replace your full-time income with passive income in 24 months as long as you follow their methods. Obviously, no business venture is guaranteed, but if you follow the 60 steps they have.
[00:20:34] For you, it puts you in a good position. So those are the two. The third one I’m going to leave is leaving a link to my email list. You want to make sure that you get on my email list because I send out emails every Sunday with a list of emails or a list of YouTube videos that I will release for the week.
[00:20:53] So you want to make sure that you can plan your week accordingly based on. My YouTube videos. So those are the three. The fourth one I’m going to leave is actually for click funnels is the email autoresponder that I use. The link will provide a two-week free trial. So after that, we’ll have to start paying for it, but definitely take a look at click funnels because, as we know, email marketing actually converts much higher than other types. So you can set up an autoresponder and make money while you.
[00:21:23] So once again, this is all stint. Thanks for watching. And we will see you soon.