Understanding Network Marketing VS Affiliate Marketing

Understanding Network Marketing VS Affiliate Marketing


Hey guys, what’s going on, this is Josh Elder,
from joshelder.com, and in this video we’re gonna talk a little bit about the difference
between network marketing and affiliate marketing. Network marketing has been given a bad name
over the course of the past few years because of the way that people promote it. You can get started in a company for as low
as $20, which is not a high buy in, and people tend to not take businesses seriously when
they’re paying such a small amount. So it leads to a lot of spamming, it leads
to a lot of bad promotion, it leads to just a misunderstanding in the market place as
to what network marketing really is and what affiliate marketing really is. So in this video, I obviously wanna clear
the air, I wanna help you make an informed decision on which specific business model
is best for you. So if you haven’t already, make sure that
you slam that subscribe button, I’m uploading videos on a daily basis, teaching you how
to build a business and life full of freedom, passion, and fulfillment, so if you’re here
for the first time, please consider subscribing. So let’s go ahead, and let’s dive in here,
let’s first talk a little bit about networking marketing. I got started in network marketing back in
2005. Just like most people that get hyped about
network marketing, they see a triangle on a white board, and they just think that hey,
all I have to do is get three people, and those three people will get three people,
and those three people will get three people, and I’ll be on a beach sipping on coconuts,
and I’ll be rich and I won’t have to do anything for the rest of my life, and unfortunately
we all know that it doesn’t work out like that. To succeed in network marketing, it takes
branding, it takes consistent action, it take leadership, it takes team building skills,
it takes influence, which is what a lot of people struggle with, and so they tend to
number one, get in, and they get their friends and family in. They do whatever it takes to get them in,
even if it’s sacrificing relationships, cause they go to these hotel meetings, and they’re
all hyped up. They’re all built around how much money you
can make, and not what the product can do for you. Now good network marketing companies that
are still around today, they focus on the product more so than the opportunity, because
it’s a lot easier to maintain a customer that loves a produce than somebody that’s just
in it for the opportunity, they can’t make any money, and they just end up falling out
and they end up quitting because they have the wrong expectation. So let’s talk a little bit about the network
marketing business model, and then we’ll talk about the affiliate marketing business model,
and the thing you guys’ll get a better understanding as to what this actually is, because the thing
that’s lacking in most people is education, and this is just marketed in the wrong way. Network marketing has been tarnished, it’s
been around for a very, very long time, where affiliate marketing is still newer, cause
the internet is still newer, so anyways, not to get off track, let’s get into network marketing. The idea with network marketing is that you
get paid on multiple tiers instead of just one tier. So network marketing, for example, I don’t
obviously have a white board behind me, but hopefully you guys can understand this and
get this, if I was to recruit Joe, I get a commission. Now, if Joe was to go and recruit Susan, Joe
gets a commission and I get a commission. That’s two tiers. Now if Susan was to get a new team member,
and she was to get Kimberly, so Joe recruited Susan, Susan recruited Kimberly, and I would
get paid on all three of those people, three levels down at different percentages. So I would end up making a commission off
of everybody’s efforts instead of just my own primary efforts, and the further that
the tiers go down, the less money I make, but I still make a portion of other people’s
efforts, and there’s obviously different compensation plans, there’s binary compensation plans,
and compensation plans that get very, very complex. I’m not one that studies compensation plans,
I’m the type of guy that’s like if I believe in the company, if I believe in the leadership,
if I believe in the products, and the opportunity as a whole, I will go out there and take massive
action. I’m gonna do whatever it takes, that’s just
how I’m wired. So that’s what network marketing is and a
lot of people get worried because dang, this guy at the top is making all this money off
of my efforts. Well, if you really think about it, most,
any business model, successful business model is setup that way, I don’t care if you’re
selling apple products. I got my laptop right here, I got my iMac
right here, I got my iPad right here. Pretty much everything on this side of the
room is Apple. So the thing is, is if you work for Apple,
there’s different levels. Obviously there’s president, there’s vice
president, there’s regional managers, there’s general managers, and there’s employees, the
ground level at the Apple store’s right? And the CEO is making money on all those levels,
it’s just that people have a tangible product that hasn’t been tarnished and that’s marketed
the right way, which is what most people don’t do with network marketing, they don’t know
how to market, they don’t know, like I said, branding. Where Apple is very methodical about their
branding and about their commercials and they way that there portray themselves, and at
the end of the day, people will follow people that they believe in, and they believe in
their vision. Whatever their vision is. People buy vision, they don’t buy products
because of a product more often than not. They buy products because of the person that’s
associated with the product. Not to go too far down the rabbit hole, but
to really help you understand that network marketing isn’t any different than, for example,
having your own Mac franchise, or having your own McDonald’s franchise, they’re still selling
products and services, and people are getting paid in all different levels, it’s just the
way that the business is marketed, and most people are promoting thin air versus promoting
what the products can actually do for people. And so, the thing is though, you gotta understand
those people, a lot of people will buy into the hype, and sometimes you attract good people,
but for the most part you attract the wrong people, so you’ll notice, even some of my
videos in my YouTube channel. Some videos I’m promoting screenshots, I’m
promoting income results, but at the end of the day, I understand who my target market
is, and I don’t do that on, and on, and on, and on. A lot of times I’ll reset every once and a
while, I’ll show some income update or some proof, but I make sure that people understand,
hey this is to inspire you and not to show you that you can just make money overnight. So anyways, that’s the network marketing business
model. Now the affiliate marketing business model,
it’s basically the same thing except you get paid on one tier. You don’t get paid on multiple tiers. So when you really think about it, would you
rather be able to make money off of other people’s efforts, because you’re the one that’s
the leader, you’re the one that’s putting all your time and energy and resources into
coaching them and helping them. So, wouldn’t you think that you deserve to
make some money off of somebody else’s efforts if you reach down and help them shortcut years
and years and years off of the learning curve. So really the only difference between affiliate
marketing and network marketing is that there’s one tier on affiliate marketing, there’s multiple
tiers on network marketing and different compensation [inaudible 00:08:05]. That’s really what it comes down to, and that
is really up to you to brand yourself, to be consistent, to have the right mindset,
to have influence and have leadership, and that’s really what it comes down to. So I wanted to shoot this video, not just
for my following, cause I know there’s a lot of people on my different teams that are skeptical,
and I hope this really clears the air for you guys, cause you hear these buzzwords like
scam, pyramid scheme, and a lot of times it’s like the blind leading the blind. People are just listening to other people
without actually thinking thoroughly about what that actually means. What a pyramid actually is. So I’m not saying this to convince you, those
people that aren’t convincible, if that’s a word, can’t be convinced. Anyways, this is for those people that maybe
kinda on the fence that need to be pushed over the edge towards belief, that hey this
can work for me, and that I can do this. So that’s really who this is for, I hope you
guys got some value from this video, and if you did, please hit the like button. Also subscribe, I’m always uploading videos
on a daily basis and I’m always maintaining an authentic point of view when I shot these
videos. These are non-scripted, I just turn on the
camera and I go from the head and the heart, and I kinda just see what I come up with. So I hope you guys truly get some value from
videos, and if you did, please let me know in the comments. I really, really appreciate it, and I’m gonna
continue to give you guys value because that’s my purpose, that’s my passion, I wanna help
you guys get to the next level, and level up, cause you deserve it. So Josh Elder signing off, also check out
the resources section, if you wanna see my top recommended system that I’m leveraging
to build an income online part time, that’s gonna be in the description below, so check
that out, and we will see you in the next video. Take care.

9 comments

  1. Informative and insightful. You're right most times the two types of marketing are used interchangeably often leading to confusion and puts people off certain promotions. Thanks for clearly explaining the distinguishing features of the 2 types of marketing to help us make that informed decision.

  2. Hi Josh, I feel you dramatically understated the Pros of Affiliate marketing. With Affiliate Marketing you get paid more up front typically, than Network marketing takes typically years (five to seven) to get positioned in the ladder to get paid. For this reason the people who actually stay in Network Marketing long enough to see an income equivalent to their present job is usually one in 100. In Affiliate marketing you don't have to chase family and friends, you just market the product. You don't need to manage and keep down-line engaged to stay in. You don,t have to invest so much time in training down-line to have them drop out later. Typically the products of way overpriced to compensate for the many tier commissions making it a harder sale. Commissions are usually larger in Affiliate marketing. And much more.

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