When you search for ways to make money online you will come across opportunities in affiliate marketing and network marketing. If you are not sure how these two business models work you will enjoy this article on understanding the differences between both of them.

The main difference between network marketing and affiliate marketing lies in building a downline of distributors. As an affiliate marketer you will primarily make your money selling products or performing a specific action for an affiliate merchant. This could include getting paid by a click or by the lead.

Some affiliate marketing programs have a 2 tier feature. This means that you can also make money on the sales of anybody you personally recruit. However you will not make any money on people that they recruit.

You cannot build a downline of affiliate marketers that you make money on. If building a large organization is something that appeals to you then you want to look at the network marketing business model.

In network marketing you get paid to sell products. You also make money as products move through your downline.

This not only includes people that you personally sponsor, but it includes your downline distributors which can go several levels deep. Exactly how many people you earn money on will vary from one MLM company to the next.

Each one has its own compensation plan. However many network marketing companies also pay you a bonus on the overall volume of the entire company.

This is a great feature becomes as the company grows you get to share in the profits. This does not happen with an affiliate marketing company.

With an affiliate marketing company you can make very high commissions on products you sell. This is especially true if you are selling digital information products.

Some of theses products will pay you as high as 75% in commissions. You can find thousands of them to sell at affiliate networks such as ClickBank.

Affiliate programs are free to join. Therefore they tend to draw thousands of people into them who never do anything with their business.

Network marketing programs require a fee to get started. Therefore you will not have as many people join them.

However, the amount of money it takes to join an MLM company is generally pretty low, so you still have a large number of people who will join and then again not do anything with their business.

One final point to bring up is with network marketing you can generate a residual income. This means you continue to get paid long after you stop working. That is virtually impossible to do with the affiliate marketing business model.

Affiliate Marketing is just about the Biggest Home Business technique used today. It is Huge and Still Growing. Research shows that Affiliate Marketing is a $6.5 Billion Business worldwide and it is expanding fast. There are thousands of people who are making affiliate marketing their full time jobs and are earning thousands of dollars a month doing so.

So why is Affiliate marketing so popular? Simply because the Affiliate business Model has some distinct differences and advantages from any other business model. The main advantage would be the lack of inventory needed to be carried in order to be an affiliate marketer. Which means the affiliate does not require worrying about inventory, storage, delivery, or unsold stock.

Which leads to the second advantage. If you don’t need inventory, that means you don’t need a huge startup capital in order to purchase the inventory before you can start your business. Thirdly, an Affiliate does not need to worry about customer support. All support is given by the merchant directly. The affiliate only helps to promote and makes the sales and the rest is taken care of by the merchant.

Fourth, with affiliate marketing as opposed to any other business model, No physical shop address, no warehouse and cost of the rent, No inventory is ever needed. Plus, since there will be no need for employees, the need of payroll will also vanish. In some cases all is needed is a computer and internet connection and nothing more.

Fifth, with affiliate marketing, one does not have to commute to and from work. They could do it from the comfort of their own homes and this is very quickly becoming the lifestyle many people are dreaming of.

Sounds so simple doesn’t it? Put bluntly, Affiliate marketing is a great way to start business with little or NO setup cost at all. And seeing how well people are doing in this sector of the business model and how fast and vast affiliate marketing is growing, I’d say YES…it definitely is the WAY to go. However, coming to my next point which is, Is it for everyone? If not who is it for?

Well, I’d say its definitely NOT for every single one of us. As simple as Affiliate marketing is made to seem, and I think after reading the above analogy, even I have made it sound exceptionally easy to do, I have to say that affiliate marketing is Far from Easy and does not work for every single person that tries it. A&P(advertising & Promotion) as well as to keep up with the latest trends in the market for getting people to buy from you. You cannot possibly do all of this in 15 minutes a day and will require some time and effort on your part. Although affiliate marketing can be started without any initial capital, it is of course good if you have at least some money to invest in a great manual to guide you along with your affiliate marketing as well as a little for cheap paid advertising if you have the resources for that. There are 2 kinds or groups of affiliate marketers. The successful ones are those who will put in every effort, learn from the experts and overcome ALL obstacles that they come across on their journey as affiliates. This makes them become really successful and go on to become super affiliates.

Affiliate marketing is a symbiotic internet based business relationship between a merchant web owner and an affiliate. The affiliate, or affiliate marketing associate attracts business to the merchant web owners site by posting links from their web pages to the merchant site. Any business that is generated through the affiliate marketing site is then rewarded with the merchant web owner paying commission to the affiliate for referred business through their personal set up of affiliate web marketing.

Once the traffic has been directed to the merchant web owners site, the responsibility of luring the business in is no longer in the hands of the affiliate marketing associate, but in the hands of the web site owner. But the affiliate will be compensated for the referral of business by way of whatever is agreed upon prior to setting up their affiliate web marketing relationship.

If you owned a website you could turn it into an affiliate marketing site just by back linking to various affiliate web sites and having them link to your site in return. Back linking creates a more optimal chance of your site being spotted by search engines and also creates the impression that your website is well renowned and trusted as an affiliate marketing support site. By offering a percentage of whatever profits you make from your affiliates referrals, they can benefit from your product without having to put in any effort, and you can benefit from the increase in traffic and potential buyers directed to you from them.

By constructing solid relationships with decent, trustworthy and business minded affiliate marketing associates, you could easily set yourself up with a thriving business brought in by affiliate marketing for a number of different niche markets.

There are three ways in which affiliate web marketing can occur:

1.Pay per click
2.Pay per sale
3.Pay per lead

By opting for pay per click affiliate marketing business, you would pay your affiliate a pre-arranged amount every time a person clicks on your product through the affiliates website. Pay per sale business would present the affiliate with a fixed amount or a percentage of the total sale price for every item bought that was directed to you through your affiliates marketing website. Pay per lead would be a percentage paid to your affiliate for every potential customer that they brought to your website for future business.

Affiliate web marketing has a structure of revenue sharing that can be extremely beneficial for the web owner and the affiliate, especially if the product or service you are promoting is in demand. Once the structure is in place, there is a minimal amount of work that needs to be implemented to maintain it. Changing your website into an affiliate marketing site will make it work for you, allowing you to generate infinite amounts of income from your daily flow of traffic into and out of your site.

There is seemingly no end to the potential opportunities for regular people to earn money on the Internet. With an unlimited potential for clients and a 24-hour environment, anybody can earn a few dollars from Internet trading or work. Whilst there are never any guaranteed programs to follow or success formulas laid out, there are a number of ways in which everybody can profit from the potential of the Internet.

All over the world huge companies are making even larger profits from all sorts of industries. Some sell products, some offer games and some just earn commission. It is the latter of these that is the key to unlocking the earning potential of the Internet for most people. Whilst the big idea needed to create a successful e-commerce business may elude most, there is a tried and tested industry, which welcomes new members every day and offers the opportunity for anybody to earn money online. This is not a shady get rich quick scheme or a questionable money-spinner it is a simple industry, which relies on new customers to advertise for larger industries, it is know as affiliate marketing.

Some people may be put of by the term ‘marketing’, viewing it as some kind of playground for the highly educated and well informed. But online the truth is very different. The range of opportunities and financial rewards has opened up a brand new market in which anybody and everybody is welcome. The affiliate marketing program works by letting affiliates host advertisements for other larger sites, in return for a commission. Some industries prefer a one off payment, whilst others pay a percentage of a purchase made by somebody who has joined through the site. One of the most exciting earning opportunities can be found within the gaming industry.

Poker rooms have formed one of the more surprising but most popular sectors within the gaming industry. They owe much of their continued success to the work of the thousands of affiliates representing various sites, who have created a huge zone of influence engulfing a large percentage of the Internet. In return the poker rooms reward their affiliates with potentially huge rewards of up to 35% of players money generated for the site. Therefore thanks to the way in which poker sites are funded, each and every time a player is on the site and is playing in one of the many rooms, the affiliate can be earning alongside the poker room. With the bonuses set so high it doesn’t take too long or too many customers clicking on an affiliates links, to create a site that is profitable. Some people have even been able to make an industry out of it, by increasing their own visibility and thus increasing their chances of luring in extra customers, they can build a clientele of dozens if not hundreds. As soon as they sign up and start playing the affiliate begins earning, so with more people playing in the poker rooms it is fairly evident that the affiliate can earn some respectable revenue.

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If you are looking for a very lucrative opportunity to start to your online career, it may worth your effort checking what affiliate marketing has in store for you. If you already have some basic understanding about affiliate marketing and how it works, you can begin your profession by simply joining an affiliate network which can earn you a pretty good amount of money even without leaving your home. Affiliate marketing is a fast growing online career and it can certainly offer you alternative options on how to earn money online. With a little knowledge in internet marketing and a good dose of determination to succeed, you can really make this work out for you after all.

The process of becoming an affiliate marketer is slightly more complex than being a regular affiliate but once you are in the network, everything will be rolling in easy. But before you can start your affiliate marketing profession you are required to join an affiliate marketing network before you can have your first client. Affiliate marketing networks have to check every applicant before accepting their membership. Almost all affiliate networks are relatively easy to become a member but some would definitely require that you have some experience in internet marketing and some networks would even accept novice applicants to join their group. Even if you are outside United States, you can be easily accepted by affiliate marketing networks existing in the U.S.

One of the major advantages of affiliate marketing is that you can easily switch one product with another if you find that it is not converting well or there is no enough demand for it in the market regardless of how extensive your marketing promotion is. This means that you will not be stuck with a product that is not working positively for your affiliate business. The only drawback is that you need to become a member with a vast affiliate network if you want to really earn big commissions for your affiliate marketing. If you are still new to this venture, you need to establish your presence first and do most of the legwork so you can have more clients. Generating traffic is one of the biggest challenges faced by new and experienced affiliate marketers but once you are able to overcome this, profits will come rolling your way. Employing some of the tried and tested internet marketing strategies can help you achieve your goals easily in affiliate marketing like a Pay Per Click campaign can help you generate well targeted traffic which has a higher conversion rate for your business.

The truth is that affiliate marketing is a great and thriving business if you will only take the time to try it for yourself. By learning all the essential factors that are involved in affiliate marketing; you are ready to earn huge profits at once. You can conduct more research about this particular career to further enhance your knowledge and although this may seem as an easy venture, you also have to consider the fact that in some ways affiliate marketing could be more difficult than any of your regular day jobs because you need to invest some time and extra effort in knowing who your clients are and what are the essential elements you need to know about their products.