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Ongoing customer use is what creates real residual income in network marketing. The MLM business can generate earnings for a very long time even after initial years of hard work and investment. With a solid network, residual income is assured at each renewal period of a “downline”. If product or service involved in is one that has to be reordered at each renewal period, income should just keep coming in like clock work.
How does difference in affiliate marketing and network marketing translate into in terms of building your customer relationships and your earnings power? In network marketing model, to ensure that your “downlines” renew at each period, you must ensure that you build up a good relationship with them. It is essentially a people-build-people and a leader-build-leader business. The ability to generate huge sums of money is increased exponentially when network grows. The potential to make huge sums of money is thus greater here if you can employ efforts of others to help grow business vis-à-vis affiliate marketing model. In affiliate marketing, your earnings ability is limited by your own direct sales plus an additional of 1, 2 or up to 5 levels of leveraging efforts.
Having described above, it would seem that to maximise your income, it is best to join online network marketing programs as opposed to affiliate programs.
Nope...I don't think that's really case either.
Affiliate marketing is best described as an entry to online network marketing. Affiliate products are easier to sell, likely to involve one rather than an array of products and therefore, less expensive. For instance, an e-book is likely to have an associated affiliate program while access to a membership site of digital products is more likely to pay for recurrent renewals of membership.
In conclusion, there is always no harm in joining different programs whether affiliate or network marketing ones. Just be sure that you understand how you are paid and channel your efforts accordingly. Afterall, your goal is to build multiple sources of income. You have a choice to represent what or which combination of products/programs work best for yourself.
Evelyn Lim is an online business entrepreneur. She publishes a free weekly newsletter "Mapping You to Success" for aspiring e-biz owners. The aim of her publication is to equip readers with the skills to acquire multiple sources of online income. To subscribe, please visit http://www.e-BizMap.com .