Affiliate Marketing VS Network Marketing

What is affiliate marketing versus network marketing? Hi, I’m Robert Proctor. For the last 20 years, I’ve been involved in the launch of over a thousand network marketing companies. Today, only 10% are still in business, 90% failed. I want to give you some tips and tools, some hints and suggestions, to avoid being part of the 90% that failed, and be part of that 10% that succeeded. So, there’s a big difference in what is affiliate marketing versus what is network marketing. And I talk to a lot of different companies every week, every month, and they don’t always understand what is the difference. I get some clients saying, “Well, we’re just going to be an affiliate network marketing company.” Or, “We’re going to be an affiliate company.” When, in essence, they’re actually a network marketing company. So, I want to give you a little bit of education today on what is the difference between affiliate marketing and network marketing. First, affiliate marketing is really digital, versus network marketing is really personal. What does that mean? Digital means as an affiliate, you’re going to get some banners, you’re going to get some links, you’re going to broadcast it all over the internet, you’re going to send it out in emails, you’re going to put your banners and your links on other websites, and you’re going to hope to get some traffic to your affiliate program to sell your books or your software. Versus network marketing, which is really a relationship based business. You’re going to call your friends, you’re going to post on your social media, you’re going to call your family, you’re going to ring up kids that you went to school with, college friends, and you’re going to try to get them involved in the business because it’s a relationship business. In affiliate, there’s really no relationship. You’re not calling your friends and your family saying, “Hey, you should join my affiliate program.” Or, “Hey, you should buy the products from my affiliate website.” Usually, affiliate marketing is, if I own a book store, or let’s say I owned a pet store, I would go join the Amazon Affiliate program, and on my pet store website I would put links to products people could buy at Amazon, or maybe books about cats, or dogs, or birds. That’s affiliate marketing, versus network marketing is all about the relationship. Also what’s different about affiliate versus network marketing is the compensation plan is completely different. Most people don’t know that Amazon.com, now 160 billion dollar industry, got launched as an affiliate marketing company. Jeff Bezos actually launched a two-level affiliate marketing company in Amazon. I actually used to belong to that about 13 years ago. The difference is the compensation plan. In affiliate marketing, it’s one or two levels. It’s you’re going to get maybe 10% on your first level, and maybe 5% on your second level, there’s no complicated compensation plan that you might find in network marketing. There’s no matching bonuses, and generational bonuses, there’s no ranks, it’s completely different. Multi-level marketing is about paying more than two levels, it’s paying multiple levels. It’s about ranking up. You have ranks, you have requirements to reach those ranks, and you have rewards when you hit those. In affiliate marketing, you don’t have any of those whatsoever. What else is different? The software is completely different. That’s what I’ve been doing for 20 years, almost 30 years, is providing software to the network marketing industry. Affiliate software is basic, bare bones software. You’re going to probably download it from the web someplace, you’re going to buy it inexpensively, you can get affiliate software for $100 to $500 bucks, it’s not complicated software. Network marketing software is a more robust type of software system. Affiliate software, you’re really not going to be able to get any changes done to it, it is what it is. Network marketing software, you’re going to work with a software company, such as myself, to have changes made to the system, to the software, to the look, to the feel, to the back office, to the shopping cart, to really get what you want it to be. In affiliate marketing software, you’re not going to have much flexibility in that software. What else? It’s fixed programming versus modifiable. What does that mean? Again, as I just said, in affiliate software, you’re not going to be able to do many modifications. In MLM software, you’re going to be able to make all those tweaks and those changes that you want. And the last thing, and I think this is really important if you’re looking to launch a company, whether it is an affiliate company, because multi-level marketing software can handle an affiliate program. If you buy an affiliate software, you’re not going to get much support. Usually, affiliate software is designed by two or three guys, working from a dorm, working from their home, working from a small of
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