These are two terms that are floating around and I sometimes get asked what is the difference between the two. The answer is simple in one way and yet complex when we start looking into the details. One of the confusions arises because some MLM companies try and escape from the “
Most network marketing companies have a compensation program where the majority of the potential income will be attained by building a large network of associates. You then can earn “overrides” on the activities of your team, which invariably becomes more lucrative than the money you make from selling the products or services yourself. These “overrides” produce the enormous income that many big
In a true Affiliate Program you make money only from the direct product sales you make and not from any “downline” activity. In fact most Affiliate programs don’t allow a downline and if they do it is often no more than two levels. The commissions you make from your product sales may be as high as 75% so if you create a good volume it can be very lucrative. The types of products you see being sold through these programs are often eBooks and other forms of “information”. Here the margins can be high as the cost of the product is virtually zero. Downloadable software is also often sold through Affiliate programs for the same reason.
Nowadays, Affiliate Programs are very widespread and are being used by even the larger, well-known corporations to extend their sales reach. Google, Amazon.com, Wal-Mart, Best Buy and many more all have Affiliate programs where you can earn commissions just by selling their products online. In fact when you visit any of the major retailers’ website, scroll down to the bottom of the page and you will be sure to find an “Affiliate” link somewhere.
This is a very convenient way these companies can tap into the strength of word-of-mouth advertising without actually running an
During my research it became clear there is an advantageous connection between being involved in an
This is one of the reasons I preach that getting involved with any