Both Affiliate Marketing and Network Marketing has existed for many years now. But it is rather difficult to say which one is the best. It is a personal choice. Some people prefer Affiliate Marketing over Network Marketing and for others the choice is the other way round. Both these marketing methods have their own positive and negative points. But irrespective of the marketing methods you are opting for, be sure to understand the compensations plans and use the marketing tools in the right way, so that you get maximum benefit.

 Affiliate Marketing

The exact and clear definition of Affiliate marketing is basically selling the products or services of another person for a commission. The percentage of the commission actually varies from company to company. Your main role is to promote the products and the services in the right way and to the right people. All the other responsibilities like shipping, handling and customer services are for the business owner to handle.You are solely responsible for just doing one task of selling the products.

The compensation plan which is religiously followed in case of affiliate marketing depends on performance; more sales, more income.

 Network marketing.

Network marketing is a marketing method in which marketers are not only compensated for their sales but also get compensation by recruiting people (downlines) to the business and for the sales their downlines made. That is, the profit made does not only depend on the marketer’s effort but also on the efforts of those they bring into the business.

Other terms for network marketing are Multi-Level Marketing, Referral Marketing or Pyramid selling.

Unlike the affiliate marketer who have no direct connection with customers, the network marketer business depends on his ability to get people to buy his products or become a follower. On of the quality required to do well in this method of marketing is the ability to convince friends, family members and colleagues, to not only buy products but also to become marketer.

It is very difficult to actually make a choice of one marketing method over another as it depend on individual preference and personality.  If a person does not want to be bothered with customer issues and is satified making money by simply selling products, Affiliate marketing will be a good choice. But on the other hand, if the person has good saelling skills and does not mind meeting people, explaining and conviencing them about the product and program, then multi-level marking might be a good option.

Both marketing methods can earn you residual income. It will be good to do a self analysis, listing down one’s strenghts and weaknesses before deciding the method of marketing to go for.

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