The Difference Between Network Marketing And Direct Sales

This post covers the different aspects of network marketing – Direct Marketing, Affiliate Marketing and Multi Level Marketing and makes a comparison with Direct Sales.This term really relates to the distribution system. It is the marketing and selling of products directly to consumers away from a fixed retail location ie bricks and mortar building. The oldest form of this selling was actually peddling! Modern direct sales includes sales made through one-on-one demonstrations, party plans, other personal contact arrangements such as home parties as well as internet sales. A textbook definition is ‘The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs’.According to the WFDSA (World Federation of Direct Selling Associations) consumers benefit from direct sales because of the convenience and service it provides, including personal demonstration and explanation of products, home delivery and generous satisfaction guarantees. The cost for an individual to start an independent direct sales business is typically very low, in relation to franchising, with little or no required inventory or other cash commitments to begin.Direct Sales is distinct from direct marketing because it is about individual sales agents reaching and dealing directly with customers. Direct marketing is about business organisations seeking a relationship with their customers without going through an agent/consultant or a retail outlet. Direct Sales, often but not always, use Multi-Level Marketing.The largest Direct Sales companies by revenue in 2010, according to Direct Selling News were:Avon Products, Amway, Natura,Vorwerk, Herbalife and Mary KayThe Difference Between Network Marketing And Multi-Level-MarketingMulti-Level Marketing is where a salesperson is paid for selling and for sales made by people he has recruited himself or sponsored rather than single-level marketing where the salesperson is only paid for the sales he makes himself. This marketing strategy is where the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. Other terms for MLM include pyramid selling, network marketing and referral marketing.The usual course is that salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. Some people use the term ‘direct sales’ as an actual name for MLM, although MLM is only one type of direct selling.MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on their similarity to the illegal pyramid schemes, price-fixing of products, high initial start-up costs, encouraging if not requiring sales people to purchase and use the company’s products as well as placing the emphasis on the recruitment of lower-tiered salespeople over actual sales. Often these companies have complex and sometimes exaggerated compensation schemes and little integrity when it comes to dealing with their members and people generally!The Difference Between Network Marketing AndAffiliate MarketingAffiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s own marketing efforts. Examples include rewards, sites where users are rewarded with cash or gifts; for the completion of an offer, and the referral of others to the site. The industry has four main players: the merchant (also know as the ‘brand’ or ‘retailer’), 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 specialised third- party vendorsAffiliate marketing overlaps with other internet marketing methods to some degree, as affiliates often use regular advertising methods. Those methods include organised SEO (Search Engine Optimisation), paid search engine marketing (Pay Per click -PPC), e-mail marketing and in some form – display advertising. Affiliates can sometimes use less orthodox techniques like publishing reviews of products of services offered by a partner.Affiliate marketing – using one website to drive traffic to another – this is a form of network or online marketing which is frequently overlooked by advertisers. While search engines, e-mail and website syndication capture much of the attention of the online retailers, affiliate marketing carries a much lower profile. Affiliates however continue to play a significant role in online retailers’ marketing strategies.I trust that all is now clear!Whichever way you go – here’s to your success!

Powerful Advertising Strategy to Launch Your Affiliate Marketing Campaign: 7 Steps to Success

Breaking into internet marketing requires a lot of effort. It’s kind of like launching the Space Shuttle off of the launch pad at Cape Canaveral. A very high percentage of all the fuel used by the Shuttle is consumed at launch. There is a lot to learn and execute to make it work effectively. It’s definitely worthwhile to participate in an affiliate marketing training course to help you with all of this. After you’ve set up (with on-site optimization techniques), monetized and launched your website, it’s time to start getting noticed on the internet. One highly effective strategy to generate immediate income is to conduct a direct advertising campaign using banner ads.

Of course, SEO and social media marketing, just to name a few, are also critical to your success, but direct advertising can get you off of the launch pad fast and get you earning right away. What I mean by direct advertising is to get your banner ad placed in a top ranking website within your chosen niche. This is a very focused approach.

Here’s what you do:

1- Select keywords from your niche using Google’s free AdWords: External Keyword Tool (Market Samurai, Traffic Travis, Micro Niche Finder all work great too).

2- Type in keyword to your search engine.

3- Review each page one website within your selected niche to determine which websites offers ad space.

  • Webmasters might offer ad space on their site and also use AdSense as well. (the strategy I’m outlining does not involve AdSense)

4- Use and to conduct some website research to determine the traffic volume of a potential website you’re considering placing a banner on.

5- Go directly to the website you’re considering to find contact information.

  • Many WordPress sites offer direct ways to contact the webmaster.
  • If contact information is unavailable, go to and type in the domain name. You can usually get webmaster contact information there.

6- Conduct CPM calculations by using information obtained from Quantcast. CPM means cost-per-mille (Latin for a thousand) and in this instance we’re referring to thousand of impression on a website

(also known as page views). CPM numbers vary widely depending on size of your banner, page placement and authority of the website in which you want to place an ad. For example; you want to place

a 125 by 125 size banner that asks a $3 (just to throw out a number) CPM for an “above the fold” display. Let’s say your banner generates 10,000 page views per month, then here’s the formula;

CPM = $3 x 10,000 / 1000 which is $300.

7- With some basic CPM calculations, you can now make an offer to the webmaster via email. The goal is to get the best deal, so negotiating skills are critical.

  • To negotiate the best contract, you could offer to pay annually or quarterly.
  • You should be responsible for the banner you want to place.

Direct advertising can be more cost effective than Pay Per Click and gives you an opportunity to place a larger, graphic and strategically placed banner ad onto a highly targeted website that you selected. It truly has the potential to be a rocket launch for immediate earnings. It will get you going and give your other marketing strategies time to work.

What’s All This About Affiliate Marketing?

“Cooperative” marketing is a broad term just indicating some sort of cooperative venture between two or more businesses. Whereas host-parasite marketing typically involves some sort of recommendation or formal connection between the two companies participating, affiliate marketing works a little differently.

Businesses sell other business’s products all the time in the brick-and-mortar world of business. Grocery stores market competing products, consignment markets sell products for individuals, auto repair businesses often broker auto sales. These are all variations on licensing other businesses to sell products for each other.

Affiliate marketing is one of the internet’s versions of a license to sell someone else’s product. What happens is that an independent business person (affiliate) markets products for a supplier. On a concrete level, the affiliate places advertisements directing the consumer to the supplier’s site (landing page). This allows the supplier to find multiple sales outlets and approaches at a fixed, risk-free cost. It is fixed because the “commission” is determined as a percentage of the price of the product, and it is “risk-free” because the commission is not paid unless a sale is made. So from the point of view of the supplier there can be substantial benefits. This can be offset somewhat by the lack of control of the marketing process, since it reduces the business’s ability to manage consumer expectations.

From the affiliate’s point of view the arrangement can also be advantageous. It allows an independent business to market and sell products without having to create or produce the product.

Sometimes affiliate programs get a bad “rap.” In my view an affiliate program is simply an alternate distribution method. Every product has marketing costs-the affiliate program simply calls the costs a “commission” which the producer pays to the affiliate. But nothing about the process should suggest that a consumer be any less careful in making his or her purchases. Likewise, an affiliate that wants to stick around must be aware that selling a product is an implied recommendation that is not to be made lightly.