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

– Hey, it's Leah Rae from ToddAndLeahRaecom

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

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