A Network Marketing Internet Business Or Affiliate Marketing? You Choose

Would you like to have financial independence through building your own Internet business? Are you considering joining a network marketing Internet business as means of building a good residual income for when you retire? Or are you attracted to the opportunities that affiliate marketing gives you?

Let us examine both of these Internet businesses models.

First, let us look at affiliate marketing. With Affiliate Marketing, the affiliate’s efforts are directed at ultimately getting people to visit another company’s website and buy that company’s products. The affiliate does not have to worry about stock levels, and is not directly concerned with handling payments, distributing the product or providing customer care.

Instead, the affiliate simply focuses on promoting the company’s product and getting as many customers as possible to visit the company’s website. Affiliates earn their money from the commission on those sales that are a direct result of their marketing and promotion efforts. When a visitor to their website clicks on the link to the company’s site and then buys the product, the affiliate earns commission on that sale.

Once an affiliate has developed their business around a niche area and are earning regular commission, they can then repeat the process for another niche area. This enables them to have multiples niche sites and build a good living through multiple income streams.

Now let us examine how a network marketing Internet business works. A network marketing Internet business, also referred to as MLM or multi-level marketing, is based on the following:

1. The MLM scheme sells the product to its distributors. The distributors sell and distribute the product directly to the consumer.
2. The distributor makes a commission on each sale.
3. The distributor recruits new distributors who become part of their sales and distribution network.
4. Distributors earn commission on the sales made by the distributors they have recruited into their sales network. They also earn commission on the sales made by the distributors their own recruits have introduced to the scheme.

This multi-level payment scheme is the essence of any multi level marketing business. The model encourages you to build your own network of distributors and rewards you with commission on the sales made by your sales network. You continue to get income even when you go off on holiday.

A word of warning! If you are considering joining a network marketing Internet business, make sure you know where your income is coming from. Unless there are good, decent products that you are confident you can sell, find another scheme.

Before joining a distributor’s sales network, thoroughly research that specific network marketing Internet business. Find objective reviews, visit the various MLM forums and see what is being said about the scheme in question. Post questions on the forums regarding any concerns or issues you may have. Get all the answers before you join so you do not have any nasty surprises later on.