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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.
The Business Model
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.
Network Marketing Structure Comparison With Fortune 500 Companies
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.
Network Marketing VS Affiliate Marketing – The Affiliate Marketing Business Model
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.
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