Affiliate marketing and network marking are two terms that are used interchangeably, and in many cases incorrectly. Lets examine the differences between these two, and take a look behind the scenes at what it takes to be successful in an affiliate marketing program.
First we will start with affiliate marketing. Just as the name implies, you "affiliate" yourself with a company as a representative, offering their products and/or services to others in exchange for a commission. Your local Ford Truck Dealership has a relation to Ford Motors Inc. They buy the trucks from Ford and resell them to the public for a profit. They have an affiliate relationship with Ford.
Now the internet comes along and companies are able to display their "showrooms" on the internet, and offer a "opportunity" to affiliates who can market these products on line. These products could be a single sale ("retail income") or could be something that is a recurring payment every month ("residual income"). Fox example, if you buy a TV, that's a single (but larger) sale. If you buy Dish Network for that TV every month, that's a reoccurring (but smaller) sale. Many people refer to this also as network marketing
A Big Problem:
Network marketing program do include affiliate marketing "module", but they also have a distinguishing "bonus" that your local Ford affiliate does not. The company encourages you to find other people ("distributors") to also market their product, and in many cases they incentivize you to concentrate on just selling the opportunity, This is a balancing act for the company, and places the affiliate in a very sensitive position. Do I sell the products, or sell the opportunity.
The FTC (Federal Trade Commission) takes a very hard look companies that over-promote their business opportunities and concentrate on just "signing up people who sign up other people". In fact there is a very descriptive title that is given to these companies. They are called "pyramid schemes."
Now the internet comes along and companies are able to display their "showrooms" on the internet, and offer a "opportunity" to affiliates who can market these products on line. These products could be a single sale ("retail income") or could be something that is a recurring payment every month ("residual income"). Fox example, if you buy a TV, that's a single (but larger) sale. If you buy Dish Network for that TV every month, that's a reoccurring (but smaller) sale. Many people refer to this also as network marketing
A Big Problem:
Network marketing program do include affiliate marketing "module", but they also have a distinguishing "bonus" that your local Ford affiliate does not. The company encourages you to find other people ("distributors") to also market their product, and in many cases they incentivize you to concentrate on just selling the opportunity, This is a balancing act for the company, and places the affiliate in a very sensitive position. Do I sell the products, or sell the opportunity.
The FTC (Federal Trade Commission) takes a very hard look companies that over-promote their business opportunities and concentrate on just "signing up people who sign up other people". In fact there is a very descriptive title that is given to these companies. They are called "pyramid schemes."
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Pyramid schemes are illegal, however there are many legitimate companies that you can be an affiliated with and promote theirs products and services. Before you venture into these waters, you first need to understand the three basic principles of professional affiliate marketing.
Understanding the Principles:
First the affiliate needs to find a product (or service) that they can be enthusiastic about. If you talk to people and don't show you really believe in what you are promoting, how can they?
Next the affiliate needs to understand the product's value. As you present this value to you prospect, you will gain the prospects' trust. When the prospect knows and understands the value of the product AND becomes as enthusiastic as you are, they may actually ask for the opportunity to join your business.
Last, but most important, the affiliate needs to learn how to attract people that have a want, need, and desire for this product, and then possible this opportunity. This is the secret of successful marketers. They have taken the time to master the art of finding these people.
In Conclusion:
Affiliates who decide to take their business seriously by mastering these these 3 principles have a very good chance at being successful at affiliate marketing. Yes it will take a little time and a little money to develop, but it is your business. You need to decide if your business is worth it!
Pyramid schemes are illegal, however there are many legitimate companies that you can be an affiliated with and promote theirs products and services. Before you venture into these waters, you first need to understand the three basic principles of professional affiliate marketing.Understanding the Principles:
First the affiliate needs to find a product (or service) that they can be enthusiastic about. If you talk to people and don't show you really believe in what you are promoting, how can they?
Next the affiliate needs to understand the product's value. As you present this value to you prospect, you will gain the prospects' trust. When the prospect knows and understands the value of the product AND becomes as enthusiastic as you are, they may actually ask for the opportunity to join your business.
In Conclusion:
Affiliates who decide to take their business seriously by mastering these these 3 principles have a very good chance at being successful at affiliate marketing. Yes it will take a little time and a little money to develop, but it is your business. You need to decide if your business is worth it!
