Before I get into what the advantages of network marketing are, I thought it would be a good idea to point out some of the types of other online businesses that are similar to network marketing as a common point of reference. So let’s take a look at affiliate marketing, which is similar to network marketing and yet are very different in many ways.
What Affiliate Marketing is and what it is Not
Here’s a definition of what affiliate marketing is from Wikipedia:
“Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s own marketing efforts. The industry has four core players: the merchant (also known as ‘retailer’ or ‘brand’), the network (that contains offers for the affiliate to choose from and also takes care of the payments), the publisher (also known as ‘the affiliate’), and the customer. The market has grown in complexity to warrant a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors.”
In other words, you are a representative of the company that you’re selling products for and your commission payments are anywhere from 10% to 15% on average, some may pay as high as 20%. This is a direct sell type of system, so the amount of income you make is based on how much you sell and more importantly getting repeat customers. Since its performance based, affiliates will have to continually find ways to get more customers to buy their primary’s products. Some companies may pay you some compensation if you get others to become affiliates, but it’s usually a onetime transaction and thereafter there is no connection to the new affiliate you brought into the primary company; you’re primary income will always be from direct selling.
Now I’ve used the term affiliate marketing and network marketing interchangeably, but that was an error on my part and something I’m attempting to correct, so those who are newcomers to network marketing don’t get confused, my apologies for my previous mistake in my other posts.
Again, just to reiterate, affiliate marketing is performance based and it takes consistent work and time to make a profit and you may have to join other affiliate marketing companies to make a comfortable profit. At best, your income may be enough to compliment your primary income, but not replace it.
The Advantage of Network Marketing
Network marketing differs from other performance based online businesses is that you can not only make money from the products of your primary, but you can also make money from the distributors you recruit and they become what is called your down line, I’d rather call them your team, because that’s what they become, you work with them, mentor them, keep them motivated, just as a team should do.
And the great thing about network marketing is you can keep growing your team, you’re not limited in how many prospects you can recruit into your team; sky’s the limit. And when you get movers and leaders on your team, your income and business will benefit exponentially. That is where you get into residual income; making money on autopilot if you will.
Network Marketing is a Business
Now some people have this idea that network marketing is like pressing a magic button and voila, money comes pouring into their bank accounts. Sorry to burst their bubble; this is a business and you need to apply yourself like you would any other business, if you don’t put in the time training, developing a short term and long term plan, laying out what strategies to use, you’ll make no money and you’d be wasting your time. You need to think and treat it as a serious business, because it is. It will take serious commitment, time and effort when you first start in the business and sometimes you’ll run into some hard knocks, but when you stick with it, you will succeed and the payoff can be very, very profitable!
How to Get You Started on the Right Track in Network Marketing
Many of the most successful network marketers have been in this industry for 7, 10, 15 years to get where they are now and learned the hard way through trial and error; they attended the school of hard knocks to get their ranks. However, today some of these marketing leaders like Norbert Orlewicz and Todd Schlomer have founded and created a system that provides the training, software tools, marketing strategies, and support all in one simple system; My Lead System Pro. The value of this system would and should cost thousands of dollars, but this isn’t for those who have thousands of dollars. They created it to be affordable for ordinary people that do not have a lot of money to invest in a training system like My Lead System Pro. There are a few companies that have similar programs as My Lead System Pro, so it would be a good idea to do your homework and do some research on which network companies offer quality training and support to get you started in the right direction.
You can narrow your search by typing in “legitimate” or “quality network marketing companies” if your using Google or other search engines. Be careful to not to get caught up with hyped up ads that say “you can make $10,000.00 in 30 days!” That isn’t going to happen and the fundamentals are the same, if you want to get into online network marketing. And all the “gurus” in the industry know those key fundamentals, or they wouldn’t be where they are today. So keep your head straight and be sensible when searching for the system that would be suitable for you.