When I interact with most online marketers, it's obvious that they view Internet marketing and network marketing as two separate and very distinct worlds. Proponents of either often act as if the other is something to be avoided like the plague.
I personally am involved in marketing for, and consulting with, companies in both worlds. I've discovered that there is a lot of overlap, and that there are techniques which work equally well in both worlds.
Let's briefly examine how they differ, and which is better.
Network marketing, or MLM, is very familiar to most people because we've all been approached by someone in the offline world who is doing it. We've been invited to meetings, or sat through presentations where they demonstrated what they did, and how it could mean financial independence for you.
I generally think of network marketing as:
- Being multiple-tiered - where you earn on the efforts of others that you recruit.
- Offering residual income, where you sell the product once, and then earn commissions each month as the customer reorders a consumable product.
- Utilizing auto-shipment, where the customer agrees to purchase a certain amount of the product or service each month... generally at a lower price that if it were a one-time purchase.
- Requiring lots of phone calls, meetings, and direct interaction with the customers.
- Allowing representatives to grow their businesses through duplicable systems where they just plug new representatives into a proven system.
I generally think of Internet marketing as:
- Utilizing a two-tiered (at most) payment plan. When you go beyond two-tiers the rules change dramatically for the program operator.
- Emphasizing earning commissions primarily on your own efforts although many super-affiliates also earn hefty second-tier commissions.
- Marketing primarily using email and websites, although RSS, broadcast calls, teleseminars, and even direct mail can fit into the picture. There is a movement towards using offline methods to drive business online.
- Often only offering one-time commissions on individual sales.
- Requiring very little direct customer interaction, although the most successful affiliate marketers focus more on interacting with customers and building relationships.
Which is better? Obviously, that's a loaded question with room for lots of differences in opinion.
Generally, whichever best serves YOUR customers needs is better for you.
Whichever offers your customers something that they can't buy cheaper at the local superstore obviously should sell better for you.
Long-term, lasting success in both isn't based upon throwing around big numbers, when you know that the average person probably won't achieve the level of success offered in the examples. That's because both depend upon how well your new "recruits" can utilize the system that you equip them with and the level of commitment that they have.
Both can offer residual income, and I personally do generate substantial residual income with both systems. Internet marketing offers residual income through products such as web hosting, membership sites, and product-of-the-month type sites.
An example of such a site is Dr. Mike Woo-Ming's Affiliate "Sales Letters" which offers affiliate marketers re-written sales letters for Clickbank products that otherwise would be poor sellers. This is an excellent example of a product that solves a problem, and offers to the affiliate/member a residual income. You can see how this works at:
http://WillieCrawford.com/fix-bad-sites.htmlOrdinary consumer products can also offer very nice residual income. In order to be a big success in the network marketing arena the product must offer unique advantages AND be priced competitively. Very often, you'll see products that are WAY over-priced, and they're that way because there is no real demand in the marketplace and the high commissions are what are used to "lure" unsavvy new distributors.
These unfortunate distributors are lured into businesses built on very shaky foundations. If you look in the right places though, you will find products that people want, that they are buying, and that you can offer at a competitive rate. Here are two examples:
1) Discount travel through YTB travel. This is a network marketing company that allows your customers to tap directly into one of THE BIGGEST online travel databases and book travel, reserve lodging, and reserve rental cars. Travelers get great deals, and you earn a commission on each referral booking that you make. You can see this incredible system in action at:
http://www.ytbnet.com/williecrawfordThe url above is the one that I link to from a site that helps people locate Internet marketing seminars at:
http://InternetMarketingSeminarScheudule.com After they've located a "can't miss" seminar, it's natural for them to look for inexpensive travel and accommodations. Therefore, selling travel becomes effortless.
I offer the same travel booking service on a site where I help martial artists locate karate tournaments. Again, it is natural for site visitors to book their travel once they've located an event that they want to attend. You can see how I do this in the martial arts niche at:
http://Tournamentsite.comThis same method of marketing travel... selling an MLM product using "Internet marketing techniques" shows how the distinction can quickly become blurred.
Another product where I seamless blend Internet marketing and network marketing, with a product that sells itself, practically hands off, is... greeting cards.
I offer visitors to many of my consumer-type sites the ability to send real, printed greeting cards right over the Internet, for a fraction of the cost that they would pay in a card shop. They get the same quality of card, don't have to travel... brave the weather... fight the crowds, or even lick stamps. They just choose and compose the card, add any photo they desire, click send, and the card is in the mail, for around $1.50 TOTAL :-)
You can check out that slick setup, and see how effortless it really can be at:
http://SendOutCards.com/willieBack to the question of which is better - Internet marketing or network marketing...
Both can actually be marketed the same way. You can market Internet marketing products via phone, fax, email, direct mail, or a website. You can do the same with network marketing products.
The bottom line is that the "want" for a product, and the availability of that product at a great price, are more important than method of selling. Which is better therefore depends upon which is a better match for you and your market. You can do very well with either. It's really just a matter of doing your research, finding a perfect market-to-product match, and then starting to actively build your dream business. You'll likely find yourself using a mixture of methods regardless of the product.
Copyright 2006 Willie Crawford
Willie Crawford has been teaching Internet marketing for over 9 years. Take advantage of his uncanny insights and unusual candor by subscribing to his free, information-packed newsletter. Also visit his top-rated blog. Do both at:
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