Affiliate Marketing Versus Network Marketing (MLM): Income Formula Revealed!

Written by Evelyn

Both affiliate marketing and network marketing pay people for referring a product or service. What then isrepparttar difference between affiliate marketing and network marketing?

The difference is best explained in terms ofrepparttar 136462 way compensation is structured to pay for performance. Because ofrepparttar 136463 many hybrid forms of compensation payments available now onrepparttar 136464 internet, to a newbie scouting for business opportunities, it is easy to get confused overrepparttar 136465 many terms and definitions used. In evaluating compensation plans, it is essential to understandrepparttar 136466 subtle difference betweenrepparttar 136467 two models. Ultimately, you want to understand…which model yields more income?

What is affiliate marketing? Affiliate marketing is usually done online. In its simplest form, affiliate marketers are compensated on a one time transaction only. Unlike products offered in a MLM business, affiliate products are often ones that a customer would only need to purchase one time. Thus,repparttar 136468 morerepparttar 136469 affiliate marketer sell,repparttar 136470 more they make. This is quite akin to direct sales albeit made viarepparttar 136471 internet.

Affiliate marketing has a compensation plan based on performance measures. For instance, ifrepparttar 136472 affiliate marketer is successful inrepparttar 136473 form of sales, clicks, registrations, etc, he/she gets rewarded. The desired action as a means of compensation is already pre-agreed upon byrepparttar 136474 affiliate merchant and him/her.

In a short space of time,repparttar 136475 affiliate marketing model has also evolved to a 2 level (or in some cases, up to 5 levels) compensation plan. Inrepparttar 136476 popular 2-tier version, for instance, you (as an affiliate of a particular e-book merchant) will earn commission when you sell a book to person A and if person A signs up to be an affiliate and manages to sell to person A1, you get compensated too, in addition to person A.

Let’s now go on to talk about what network marketing is. Inrepparttar 136477 network marketing model,repparttar 136478 compensation plan works in a similar fashion, except that compensation byrepparttar 136479 sponsoring company can be paid up to several, several or unlimited levels. The number of levels and restrictions in terms of payout is very much dependent onrepparttar 136480 arrangement offered. As arrangements can vary from one company torepparttar 136481 next, this makes comparisons ofrepparttar 136482 various compensation plans available out there difficult. So be sure to read allrepparttar 136483 fine print!

At any level, a network marketer hasrepparttar 136484 potential to earn a direct referral fee for directly recommending someone and a leverage fee when one of his/her “downlines” is successful for referring friends torepparttar 136485 same network. Inrepparttar 136486 popular binary plan adopted by many network marketing companies, each person inrepparttar 136487 network has two “legs” or “downlines”. If more people get referred torepparttar 136488 network, they automatically go belowrepparttar 136489 “legs”.

Ways That You Can Make Money From Your Online Business Model

Written by Evelyn

If you are convinced by now that you wish to do an online business and would like to find out which business models are available, this article is written specially for you.

The different avenues that you can make money are:

1. E-bay model Got junk or an interesting product to sell? No problem! Hop on to There are millions and millions of visitors each day torepparttar site. Just create a free account and you are ready to start.

2. E-Affiliate/network marketing programs You earn a commission if you are successful in selling affiliate books, programs or network marketing programs. This business model has advantages in that you do not have to create your own product or write your own sales letter. You also get a replicated website as an affiliate. All you need to do is to actively refer your friends and marketrepparttar 136461 product or program.

Go to for an extensive range of affiliate programs that you can represent.

3. E-Shopping model In this model, you are interested to sell your goodies online. Here, your website will feature pictures and clear descriptions, shopping cart and a payment processor. However, if you are selling physical products, you have to be address issues like warehousing and delivery.

Onrepparttar 136462 other hand, there is no need to create a product yourself, if you do not have one onhand. Simply go to directories such as , and . These sites will even handlerepparttar 136463 shipping and delivery for you.

4. E-directory model Here you create a free directory of various resources and links. Your job is to drive traffic to this site. You make a revenue from businesses who wish to advertise on your website.

5. E-Create-a-product Model This can be inrepparttar 136464 form of either a digital book or software product. There are lots of advantages of doing an e-book. An e-book is low cost to produce as you just need to write it once and updaterepparttar 136465 contents as and when necessary. You also get to keep allrepparttar 136466 profits as there is no need to go through a publishing house

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