Affiliate Marketing vs Network Marketing | The Best Way To Make Money Online


– Hey, it’s Leah Rae
from ToddAndLeahRae.com. So you want to make money online, but you’re just wondering
the best way to do it? Maybe you’ve heard of affiliate marketing and network marketing, and just wondering what you should get started with. Or if you’re like us, you first found the home business industry
through network marketing. And then eventually you
started hearing of this thing called affiliate marketing,
and wondered if it’s something that could help you reach your goals. Well, that’s exactly what
we’re gonna dive into today, to make sure that you are able to make the best choices to reach
your financial goals for yourself and your family. So stick around. (thunder rumbling) (heavy rock music) Affiliate marketing, networking marketing, which is the best way
to make money online? Well that’s what we’re
diving deep into today, but quick second, pause first. I just want to take a second to tell you, make sure that you
subscribe to this channel. This is where we teach online business automation strategies. Everything from marketing,
lead generation, and sales, to help you make money online. So if that interests you at all, definitely make sure to subscribe. All right, so to get started, we’ve got affiliate marketing, we’ve got networking marketing. Let’s make sure we’re crystal clear on what those two different terms mean. Start with the definitions. Okay, affiliate marketing is where you are simply referring customers, people, to someone else’s product. Say you bring the customer,
someone else provides the product, and you get
a percentage of the sale. Pretty simple, straightforward. You make the sale, you get the money. It’s kind of a one to one
ratio there for your efforts. Network marketing is a bit different. It’s similar, you are making sales, but you’re also recruiting
people to do the same thing. So you’re making a percentage of each sale that you personally make,
but you’re also able to make some money off of the people that you’re bringing in. So say you recruit some more people and they start making sales. That will benefit your paycheck,
your commissions as well. So, you’re building a team and selling in networking marketing,
and in affiliate marketing you’re just selling. That’s it. So, just so we’re crystal
clear to begin with. Otherwise it’s gonna be a
very confusing conversation. So let’s first talk
about the pros of both, and as we get into the pros
and cons of each of these, I want to preface this
conversation by saying that Todd and I have made a lot of money in both of these areas. We’ve been very successful
in networking marketing and in affiliate marketing,
so we do have a good understanding of both, and
the whole home business industry as a total, as a whole, okay? Now, network marketing, also known as multi-level marketing. Let’s talk pros. What are the good things
about networking marketing? Honestly, it’s a really
good way to ease people into being an entrepreneur
and to really turning on that entrepreneurial mindset. I know for me personally
it definitely was. I was scared of the whole
idea of owning a business, and network marketing
kind of really gently eased me into that. And I’m a very different person today, and I couldn’t have jumped right to that. I had to kind of be eased
into it along the way. So that is a very good thing
about network marketing. An additional thing that some people really, really look for is that it doesn’t require tech skills. You can do network marketing, well honestly completely
offline if you want, but even online network marketing is typically done with very
low tech skills, right? Just basically talking
to people on Facebook, that’s really it. So for people who are
scared of technology, or don’t like technology,
it’s a really good option for them. It’s also a great option for people who just are people people, right? They love spending their time with people, they love being around people all day, because it is a relationship
based business, and guess what? You’re gonna be spending
a lot of time with people, and if that’s your jive,
that’s what you love, fabulous, that’s a really good thing for you in network marketing. Another thing that’s great
within, a pro if you will, of network marketing, is
that is when you see someone who wants to do something
pretty casual, right? They want to make a
little money on the side with doing something casual. Hosting some parties,
doing a little of this. Maybe a vendor fair on a
Saturday a few times a year or something like that. People who want to just make
a little extra side cash, talk to people, make some
friends, and do it casually. Network marketing is awesome for that. I’ve got some very, people I’m close to, very close to in my life
that just crush it with that. It’s fun, they just make some
extra money, bonus, right? And they have fun doing it
and it’s a great fit for them. Now, if you’re willing
to put in the work now, invest your efforts now into the hustle and to grinding it out. For longterm gains, there is
some huge potential income longterm in network marketing, okay? Because what you do is
you actually leverage other peoples’ work. So while you make a lot less money on the sales you personally
make in network marketing comparing that to what you
make in affiliate marketing, over the years, you can have the potential to build a very, very large organization. And when you’re making a little percentage from a ton of sales from
people all over the country, or all over the world,
that can get pretty big. And that’s where, what
really excites people about the potential in network marketing is being able to leverage
other peoples’ work, and to earn money off of
other peoples’ work as well. One, we’ll put it in the pro category here for network marketing,
you’ll hear these stories if you’re around long enough. Once in a blue moon, you’ll
hear stories of people who were placed in the right spot. They really didn’t have to work too hard, and they made some really good money. Don’t count on this. This is like hitting the lottery, but it occasionally does
happen when they have the right sponsor, and
they find just one person who takes action, okay, who really runs. It does happen, so there is a chance you could win the lottery. So that’s a benefit
within network marketing. Now when it comes to affiliate marketing, there is huge income potential
in affiliate marketing. Much, much faster for people that treat it like a business than you would
see in network marketing. So you’re going to see
bigger income faster in affiliate marketing. There’s a quicker return on it, and that’s because you get
paid a lot more per sale. In affiliate marketing,
especially with digital products, which is the realm that
we like to live in, you’re looking at commissions between 30 and 50% typically of the sales price. That’s huge, that’s a lot of money. That allows you to put some
advertising budget behind it, and still make really good money. Compare that when dollar value wise in network marketing,
people are typically making three to five percent of the sales price when they make a sale. Well you can’t really put
advertising budget behind that, and there has to be massive
volume to make real money there. Affiliate marketing, you
can make decent money a lot sooner because that
percentage is just so different. You’ll hear this if you pay attention and start learning some different things about affiliate marketing. They consider it a get paid now program. Get paid now is affiliate marketing versus network marketing
which is more get paid later. In network marketing,
you’re putting in the hustle and the work now, the money comes later. I mean you’ll make some money upfront, but the big money is down the road, years down the road, five to
seven years down the road. In affiliate marketing,
you put in the work now, you get paid now, which
for a lot of people is really exciting and
what they’re looking for when they want to get out of a job fast, when they want to be home
with their kids quickly. All of those different reasons people want to make money now. You definitely want to take a close look at affiliate marketing
versus network marketing, because that’s the type of,
the way that it’s setup, okay? Whereas network marketing,
you have to really wait for that team to
develop and to take off before you get into the big money. Now, a pro of affiliate marketing is if you are a hard
worker, you’re a hustler, you’re a grinder, if this is you, you know this is your personality, you know that you get things done, okay? Affiliate marketing is probably
a really good thing for you, because you’re able to make good money off of your efforts instead of trying to find someone, build a team of people that can work as hard as you. You’d be hard pressed to find someone that’s willing to work as hard as you, and to find a team of people
that will work as hard as you. It takes a lot of patience
and pouring yourself, teaching and mentoring people who say they’re gonna do it, and
then don’t actually do it. You see that a lot in network marketing. They’ll end up quitting and you’ve wasted a ton of time with them, or
they don’t necessarily quit, but they never actually
produce good results for you. And so you’ve put all that
time and energy into it, into people that don’t produce results, versus in affiliate
marketing you’re able to pour that time into yourself, and
you know that you work hard and you take action. Then you have a lot more income potential for that amount of action as well. So, if you’re a hustler and a grinder, and you’re ready to just crush it, and you know that that’s your personality, you’re gonna stick to it,
take a very hard close look at affiliate marketing to
maximize your income potential if that’s really what you’re looking for. Now, another pro, and
for me this is great, because when we started
in network marketing our family, friends,
acquaintances did not want to buy what we had to offer. They just didn’t, and we
just had badgered them until we just stopped
listening to our upline and trying to force people
who weren’t interested in purchasing, and we
took a different route in our business and came online. But typically in network marketing, you’re going to friends,
family, acquaintances, people that you know who like
and trust you to make sales. At least initially, that’s
really your warm market, you hit that first in network marketing. Affiliate marketing
doesn’t have anything to do with your friends, families, or neighbors, or acquaintances, which is really nice because you’re not relying on them in order to make money,
and it really helps protect and buffer those relationships, which in my book, that’s a big plus. A big thing as well is
affiliate marketing, a big pro, you can find
affiliate marketing programs out there that do most
of the work for you. Which is nice. So, you just have to
learn how to do one thing, to generate leads, right? In order to make money. So, generate leads, you’re
getting your message in front of an audience and collecting, having them opt in
essentially to something. You’re generating leads,
that’s the one skill that you have to master, to
learn in order to make money. So one skill, that’s important. We’re gonna talk about how many skills you need in network marketing in a minute. But, learning one skill to making money, that’s pretty doable, right? That’s really, really
helpful to being able to turn a profit quickly, okay? So I really like that. Another big pro of affiliate marketing is that you can automate sales. You can automate sales, and
you’re not gonna be able to do that much in network marketing because again that’s a people business. That’s a relationship based business. Affiliate marketing, not so much. You can create sales funnels
and different cool things to walk people through being
exposed to your product, and walking them through actually
getting more information, following up and purchasing. And so you can create
systems where you’re not actually out there hustling,
calling people, whatever, working the phones to
actually close sales. You’re out at the beach
and you’re closing sales. So that’s a really big plus
of affiliate marketing. And, the other half of
that, it’s very related, is that affiliate
marketing really supports a great lifestyle. So once you’ve learned the basics, you’ve got some good stuff down, and you’ve got a great
program that does most of that other stuff for you,
and you’re just generating lead after lead, you
can get your work done in a couple hours a day. And you can go off and live your life. Be a mom, go travel, go sit on the beach. Go boating, fishing,
whatever your thing is. Affiliate marketing really
allows you to unplug and to automate, and that
is a really big thing for many people, so
that’s an important thing to notice or to note. Another thing that’s cool
with affiliate marketing is that you can scale up
quickly with paid advertising. So once you start learning
what you’re doing, and you’ve got something
that we say converts, right? You know that when you get this offer in front of enough people,
you’re gonna get a percentage that actually opt in and purchase, and stuff that you’re
gonna learn along the way in your journey, but
just so you understand, you’re gonna get to the
point where you understand that if you put in one
dollar of paid advertising, you’re gonna get two dollars out. Or, $1.50, or three dollars,
or whatever it happens to be for you and the systems and automation that you setup in your business. That’s really cool, because guess what? If you know, if you put in one dollar and you get two dollars, well guess what? You can scale that up. So if you put in $100, you get
two dollars, or $200, right? And if you put in $100,000,
you get out $200,000. So, it allows you to
scale and grow quickly, which is really cool. Another thing that we really like about affiliate marketing
is that it teaches you really valuable skills, okay? It teaches you great marketing skills that you can then use later if you decide to create your own products, which we definitely advise people to do. Creating your own products
opens massive income streams for you and your family. Creating your own digital
products in particular. So, affiliate marketing is
gonna give you the skills to be able to do that, to
be able to market something. Whether that’s a meal
plan that you create, an exercise program, a
training course, whatever. If you learn how to be a good
affiliate marketer first, whatever sort of course
or digital product, or anything that you
create, you’re gonna know how to market it, and
to make money with it. So that’s a huge plus as well. Another good thing about
affiliate marketing is that you don’t have all of
the restrictions if you will that you often have in network marketing. In network marketing,
especially when you get up to the leadership
levels, if an affiliate, or a distributor that
doesn’t really do much, they’re not gonna care that you’re in, or come after you necessarily,
if you do multiple network marketing companies. And I know a ton of people that do. They’ve signed up for this,
they’ve signed up for that. They don’t really produce much
in anything, so no one cares. But as you get into really producing, and really creating
volume and getting into leadership levels, you bet your bum, they are going to come down on you if you have more than one opportunity, because you sort of represent
the company for them, and there’s a lot of legal stuff and everything involved,
and they will not let you promote more than one network
marketing MLM company. So, there is that restriction
in network marketing, and you don’t have that
in affiliate marketing. Your business is your business. You can promote whatever you want, which is really cool and allows you to have multiple streams of income, and to monetize all of your leads and your audience that you’re building in a lot of different ways. So we really like that as well. Now, let’s turn to the negative side. Sorry, but we’ve got to
do it, it’s important. The cons of network marketing and the cons of affiliate marketing. So, the cons of network marketing. Network marketing requires
people skills and posture. And that is a very, very difficult thing for a lot of people to figure out. How to be postured, right? How to have that posture about sales, and opportunities, and products, and it’s a very, very challenging thing to figure out for a lot of people, especially with certain personality types, it’s very, very difficult. And especially for those that
aren’t people people, right? If you’re not a people person, it’s also very challenging,
because it requires those sorts of people skills. Being able to talk to
random people all the time, building instant rapport,
those are people skills. And so, that is a challenge
for a lot of people trying to do network marketing. The skills that you have to
learn in network marketing, all of them, there’s a lot,
and that’s a con for sure. Because you have to
learn all of these things before you start making money, and that’s a challenge for people. But let’s go through them. You need to learn the skill of being able to continue to meet and connect with new people all the time. Where that’s online or offline. You need to build the skill of meeting new people all the time. You need to build the skill of not just saying hello to people
and introducing yourself, but actually building some sort of rapport and level of familiarity
with people quickly. That’s a skill that you have to build. You have to be able, you’ve
got to build the skill of being able to prospect people. See if they’re open to taking a look at your opportunity, or bringing
up your product with them. So you have to learn that skill. You have to learn how to
properly expose people to your opportunity or product,
because there’s, trust me, a lot of wrong ways to do it. We did almost all of them at
the beginning of our journey, and you have to learn how to do it well. You’ve got to do it the right way, and that’s another
skill you have to learn. You have to learn how to
follow up with people, because not a lot of people are gonna sign on the dotted line the
first time you talk to them. So you have to learn how to follow up with people appropriately,
and you have to learn how to close the deal,
how to close the sale, and for a lot of people,
they’ll maybe be able to muddle through all
of those other things, they got people through
it, they’re interested, but they’re not able to
actually go for the sale. They can’t close them. That’s hard, that’s
definitely a challenging skill for a lot of people to learn. But in order to make
money, you have to learn all of those skills,
because you only get paid when you’ve done all of that,
and you’ve closed the sale. And so that can be very
challenging for a lot of people and there’s a ton of people
that struggle with it, because of all of those
things you have to learn first to be successful. Another definite con of network marketing is the potential to damage relationships from your friends and family, when you start to get what
we call commission breath. Where you’re always pushing
the opportunity on people. You’re always pushing
the product on people. And it really can harm your
personal relationships. People start uninviting you, or yeah, start uninviting you to
different events for the family. They just aren’t excited to see you because you don’t shut up
about blah blah blah, right? And they’re like, we’re
not interested, we’re done. You hear about people
unfriending their own moms or sisters or whatever on social media. Same thing, right? It has the potential, when done poorly, which it often is, to
damage relationships, so that is something the put
into consideration as well. Another challenge for network marketing is that, okay all of those
skills that you had to learn to get to making money,
now you have to work to help your team do the same thing. Now your team, remember
in network marketing you’re not only making sales,
but you’re recruiting people to make sales, so you’re building a team of people to work with you. And yes, now you’ve made it through, you’ve mastered all those
skills, and you can make sales. Okay great, now you’ve got to turn around and teach all these other people to do it, and you have to support that team ongoing. So, you’re always on, if you will, okay? You’re always looking to,
when you’re out at the mall, when you’re doing different things, when you’re in an Uber, right? You’re looking at ways to get people. You’re looking at ways to
introduce to prospect people. You’ve got your game face on, right? How can you prospect them, okay? That for me personally,
I put in the con side of a network marketing, because I want to just be present with people, and just have normal conversations and enjoy their presence,
versus trying to figure out, well how can I pitch them? Where can I sneak it in, right? So for me, that is definitely a con. Also, you’re always on in the fact that you’re supporting your team. Whether that’s three way
calls or emergency calls for different things here and there, you’re gonna have to be taking phone calls all the time, right? And if you talk to an honest
leader in network marketing and talk to how many phone calls, and family dinners, and important events that have been interrupted by having to take these phone calls, it’s a lot. So it’s definitely a con when
it comes to network marketing. There’s also a bit of
stigma and emotions involved that are difficult for a lot of people to overcome to get sales. So the whole pyramid scheme thing, and it’s a scam, and blah blah blah. All these different things that people, not necessarily, they
may have it deep down in their subconscious,
but they’re doing it and all of their friends,
they’re hearing it from their friends and family, and they’re feeling it
inside of themselves, and it’s hard for them to overcome that, to know how to respond to that, to actually believe deep down inside that it does work and
all that kind of stuff. So, there’s definitely
some challenges with that. Now, you can work really
hard in network marketing and not make a lot of money, okay? In hopes that some day, it’s
gonna pay off down the road when your team blows up, right? So that is definitely a con, because yes it has huge potential,
but think about it, guys. We’re in a very ever changing world, we’ll put it that way,
where companies shut down, compensation plans change, team leaders, or teams below you leave, so
there’s really no guarantee that the work that you’re putting in now is actually gonna pay off later. So there’s definite risk involved in investing your time and energy now hoping it pays off later when there’s not an actual guarantee of it. So, if you can hustle it out now, yes you’ll make some money,
but you’re not gonna get into the big money until
you’re years down the road, and all of that stuff eventually pays off, and there’s no guarantee. So that’s definitely in the con category for network marketing. Typically you need to stick it out for about five to seven years, is kind of what people
say industry average, in order to really get to that
lifetime income kind of thing where you get to stop hustling. So you hustle it out five to seven years, building a massive team,
getting tons of sales and tons of volume underneath you, and then in five to seven years, hopefully your team is very
large and it’s self-sufficient. You’ve produced enough
leadership underneath you in your organization that
it’s growing on its own, and you can go live on your
island by yourself, right? Whatever you want to do. Network marketing is also,
we’ve mentioned this before, but it’s a people business, right? And so you can never really automate your signups and your team building. So if you like to just check
out and shut down for the day and go be with your family,
or go do this, or go do that, it’s not like that with network marketing. You’re gonna have to work the phones. It’s not, put in two hours in the morning and then you’re free. It’s, you’re calling,
you’re generating leads, you’re calling leads,
you’re closing sales, you’re doing followups, you’re
calling your team members and working with them,
so it’s very hands on. And during those five to
seven years, it’s work. It’s not the automated kind of stuff that you can do in affiliate marketing. And that being said,
you can end up wasting a lot of time on people
who are gonna quit, or who never produce. Because remember, you’re
spending a lot of time investing into them to teach
them how to be successful and how to do what you’re doing. So, yes that was a long list, but I want to be real with
you and help lay this out, so you can make the best decision for you and your family, okay? Let’s flip over to affiliate marketing, and the cons within affiliate marketing. You’re going to have to
learn marketing, right? In network marketing, you really don’t. Those skills that I listed out, that’s all you’ve got to do, right? You never have to learn marketing, you don’t have to learn online marketing, you don’t have to build that skillset up. In affiliate marketing,
yes, you are going to have to learn those skills,
and you’re going to have to learn some level of computer skills if you’re gonna do online
affiliate marketing. So, you have to accept that. You don’t have to be a tech genius, and I know some very
successful affiliate marketers that call themselves
digital dingbats, right? Where they can’t, they
say they can’t do this, or they can’t do that. They’re not techy, but they can still be affiliate marketers. But you will have to learn some level of computer comfortness. You’re gonna have to do
stuff on the computer. A con of affiliate
marketing is if you don’t treat it like a business,
you’re not gonna make money, Because guess what, you only
get paid off of your sales. So you can’t ride off of
someone else’s coattails. Which you occasionally can
do in network marketing. Where someone else is
just producing like crazy, and woo-hoo you’re making money from it, even if you’re not doing much. Affiliate marketing, no
you’ve got to treat it like a business. Now, eventually, once you
learn what you’re doing you can automate most
of what you’re doing, so you still have that freedom level, but you have to treat it like a business. You’ve got to grow those skills and get it all setup
to do that, all right? Now some people would consider this a con. I think of it as a positive,
but I’ll let you decide, okay? But you’re gonna want to get into paid advertising eventually. Even if not at the beginning,
but eventually you’re gonna want to get into paid advertising, to scale your business up. Now I see this as a positive, because you can scale your business up. Put in a dollar, get two
dollars, I think that’s awesome. But it does scare some people, the idea of putting money
into paid advertising. So we did definitely want to
make that really clear for you. Now depending on your goals
and what you want to do, I hope you see a winner for you. What really fits what you want to do in both your business and your lifestyle? Now like I said before, we’ve done both. We’ve created success in
both network marketing and affiliate marketing,
but one thing that I want to throw in here too,
guys, is that we’ve seen a lot of people who’ve
struggled in network marketing who are hustlers and
workers, but it just hasn’t come together for them
in network marketing, do really well in affiliate marketing. So I want to put that bug in your ear if you’ve been struggling
in network marketing. Because we’ve seen a lot
of people struggle there and do well in affiliate marketing. So, keep that in mind. Now, if you are trying to figure out, how do you even find affiliate programs? I’m sure you have some
friends in network marketing that’ll gladly sign you
up into network marketing, but how do you choose the
best affiliate program if that’s something that you want to do or just explore further for your business? Well we’ve got a link,
it should be at the top of the description here on the video, below the video if you’re on
desktop, and we shot a video. I did a video where I explained
exactly what to look for and what to avoid, and how
to maximize your profits, all of the stuff that you
need to really consider for an affiliate program. Especially for beginners, there
is some very specific things that you want to find in a program. So you can click on the
link to see that video and to really make a good decision on what kind of affiliate program, what affiliate program
you’re gonna work with. Also, if you just want to
look at our recommendation for an affiliate program,
which actually crosses off a lot of the things for beginners and people looking to go fast, definitely it’ll be the
second link in the description of this video, our
number one recommendation for an affiliate program. Last but not least, guys, if you’re currently doing network
marketing and you love it, we do know a lot of people who
do well in network marketing and then also add
additional income streams in affiliate marketing. So that does happen very successfully. I mean that’s actually what we did. So people are successfully
doing both at the same time. So I hope you got some
really good insights, you took some good notes,
your eyes opened a bit on the possibilities, and what’s truly really involved in both network marketing and affiliate marketing, so
you can make the best decision for you and your family. If you found some help in
this, if it was helpful in any way, shape, or form,
definitely like the video. Give us a comment, give us some feedback, ask any questions that
may have come up for you as we were going through this, and share to your very
favorite social media site, because someone you know
could definitely benefit from this information. And again, if you have not yet subscribed, make sure to subscribe so we can give you all kinds of great online
leveraged marketing strategies and teach you how to make money online. Take care. (heavy rock music)

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