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Network Marketing & Affiliate Marketing# Comparative Study of Edumedia

Network Marketing &Affiliate Marketing# Comparative Study Of Edumedia.

Network Marketing & Affiliate Marketing comparison is an enthusiastic topic nowadays. Whether Network Marketing and Affiliate Marketing are the same or not is a common question. The next question comes about their legal status.

As per definition, Network, Marketing also called Multi-Level Marketing (MLM) is a process of distributing products or services from the manufacturer to the end-users using the efforts of some specified people called networkers or distributors.

When distributors join an id number is given to each distributor. This id number is considered as a powerful asset for each individual distributor.

 If anyone purchases a product from the company referring to this id number, the company pays a commission (known as a bonus) to the concerned distributor.

In affiliate marketing the process of earning affiliate income is similar. That's why some people think both affiliate marketing and network marketing are similar. You can go through the article by Neil Patel on Affiliate Marketing.


When we talk about the similarities and differences between affiliate marketing and network marketing we need to understand the characteristics of both types of pf marketing.

Network marketing is a broader concept whereas affiliate marketing is a part of it. If an affiliate platform adds other features of MLM in their affiliate program it can be said as affiliate network marketing. The features of affiliate program exist in any MLM,

In MLM, when customers want to earn money they need to join under the sponsorship of another distributor. This opportunity is absent in affiliate marketing.

The biggest problem exists in the thought process of many people. They think of illegal pyramid schemes as network marketing/affiliate marketing.

What do you think about the topic 'make money online'?
Some people think that of a fraudulent business. But the reality is that there are many genuine ways to make money online where people can't imagine cheating. 

Pyramid scheme, get rich quickly, Ponzi scheme, money circulation, etc. are neither part of a network marketing nor affiliate marketing. We will call them illegal marketing in which the main components of marketing are absent.

The key points for the comparative study of Edumedia on network marketing and affiliate marketing are highlighted here.

Definitely, some sort of similarities exist but if you go through into the deep, you will see a lot of differences between the two.

I don't have much knowledge and experience in affiliate marketing but have 15 years of rich experience in network marketing. 

Besides my theoretical knowledge, I've been managing a big team consisting of 100000+ people belongs to the national and international markets.

I won't like to bore you more. Let me come to the point again.
Here is a nice article on How does MLM Work by Loanstreet you need to read.

Similarities of affiliate marketing and network marketing

1. Industry and Business Model.

Multilevel marketing and affiliate marketing both belong to the direct selling industry. Companies/Vendors sell products directly to consumers. Retail shops are absent in both types of marketing models. Basically, both are b2c business model.

2. Distribution Channels

The 2nd Similarities between the two kinds of marketing is the distribution channel.
Three parties are involved in affiliate as well as network marketing. these three parties are the creator of products, affiliates/distributors, and the customers. (Advertise is not taken into consideration)

3. Referral Based

The 3rd similarity of both types of marketing is that they offer referral-based commission/income. When a customer buys a product from the company (with your referral id), you get a referral income.

Difference between network marketing and affiliate marketing.

1. Start-up Cost

In network marketing, the collection of joining fees is illegal in India and many other countries. So, the joining is absolutely free in legitimate MLM companies.

I'm providing here a link to the biggest network marketing company running its business in190+ countries. This is the link to the Indian free joining site of Tiens. You can join with my sponsor id 88307164. You'll find the global sites there for registration in other countries.

[ Disclaimer: If you buy a product and do business I'll get a commission as per the marketing plan, as I am the distributor of the company.]

In affiliate marketing despite several free programs are available but a collection of joining fees is not prohibited by law or any other regulations. 

2. Status of Ownership

MLM offers you entrepreneurship whereas affiliate marketing offers you agency.

3. Levels and promotions.

The affiliate program is a single-tier marketing program whereas in MLM, as the name suggests is a multilevel marketing program. Here, efforts are made to create more marketers from among the customers(non-customers too) and extra rewards are provided by the company for the additional effort. 

4. Regulatory Bodies

Apart from the national regulating authorities like IDSA for India, DSAM for Malaysia, an international body called WFDSA regulates and monitors the activities of MLM companies. 

5. Roles of 'You' 

As an affiliate marketer, your job is limited to the campaigning of the products to get the customers. 

In MLM, after conversion from the lead to the customer. continuous communication is required to build a permanent relationship with twofold objectives-

1) retain the customer for the long term and 2) convert the customer into a marketer. 

6. Business Expansion

 Growth and expansion are much faster in MLM than affiliate marketing because of leverage factors-both time and efforts.

7. Ranking System
In network marketing, you carry a rank that can be improved or advance further based on your performance. 

8. Retail Income
If you are in network marketing, there is an opportunity to earn extra income called the retail profit. In affiliate marketing, there is no such opportunity.

9. Income Source.

In affiliate marketing, your income is limited to a single source known as 'affiliate commission'. In network marketing, you have multiple income opportunities. These sources are listed below.
  • Retail profit as mentioned earlier. 
  • Direct income-on referral based customer and on your self-purchase.
  • Indirect bonus- on the product purchased by your associate members down lines and their customers.
  • Leadership bonus on achieving a specific rank. Rewards-legitimate high profile companies offer unbelievable awards and rewards which is hard to imagine for affiliate marketers. 

10. Passive Income-This is the most exciting point for which I always prefer network marketing. In affiliate marketing, You can earn active and semi-passive income only.

Conclusion

Network marketing and affiliate marketing are interrelated. 

In fact, affiliate marketing includes a hidden network marketing in which all the benefits of it pass to the company since the company builds the network of affiliate marketers. 

You don't have the right to recruit further affiliates.

On the other hand, many network marketing companies sell products online. Customers are buying products in a similar way as to affiliate marketing.

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