You jump on the internet and you search for the basic terms: how to work from home, online business, make money from home. Your search results reveal a bunch of business opportunities that seem like something you might want to do.
So how do you choose? There are so many opportunities presented. Which one is right for you? How do you get started? How much will you have to invest? What tools will you need?
You decide the best choice is to promote some type of product or service. After all, that's what most people are suggesting as the best way to earn money quickly. However, what they are not telling you is that there IS a basic difference between the different ways you can promote online.
Knowing this difference will help you determine exactly how you will promote the product or service, as well as how you will get paid. Let's look...
What is Affiliate Marketing?
Affiliate Marketing is the process of promotion and advertisement done by any website or blog owner (otherwise referred to as Affiliates), who affiliate themselves with online companies and earn a commission or set price, using the company's affiliate program.
Affiliate Marketing allows you to earn a high income while providing related services to your site visitors. You can start earning money with your website by joining one or more of the thousands of Affiliate programs on the internet.
- Cost Per Sale (CPA) - A visitor referred by the Affiliate purchases goods and services from the Merchant. This payment structure is referred to as - cost per sale or cost per acquisition (CPA).
- Cost Per Lead (CPL) - A visitor referred by the Affiliate completes a form on the Merchant's web site. This payment structure is referred to as - cost per lead (CPL).
- Cost Per Click (CPC) - A visitor to the Affiliates website clicks on a Merchant's banner and visits the Merchant's web site. This payment structure is referred to as - cost per click (CPC).
As an Affiliate Marketer, you can affiliate yourself with Merchant Businesses individually or as a group by joining an Affiliate Network.
An Affiliate Network is a collection of affiliate programs, managed by a third party company who handles everything everything for both parties, such as software, payments and support.
Joining an Affiliate Network is certainly a time-saver and can even save you some money. While the commission offered might not be the highest, the security of knowing you won't get ripped off can is extremely valuable. Affiliates who use multiple programs are better able track the various programs they use, as well as all commission earned, by joining an Affiliate Network.
What is Network Marketing?
Definition: Network Marketing is a business model in which a distributor network is needed to build the business. Usually such businesses are also multi-level marketing in nature in that payouts occur at more than one level.
The Network Marketing opportunity is very popular with people looking for part-time, flexible businesses. Some of the best-known companies in America include Avon, Mary Kay Cosmetics and Tupperware.
Network Marketing businesses normally use a direct sales compensation plan, which basically pays out a set commission for every item that you sell to a customer, as well as a set percentage of what your personally sponsored reps sell.
What is Multi-Level Marketing?
Multi-level Marketing (MLM) is a controversial marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This type of business structure is very similar to Network Marketing, in the sense that you can build a lucrative income through the combined efforts of your team and yourself. The basic difference is the compensation plans used by most MLM companies, which can be quite intricate in structure.
What is the Difference Between A Genuine Business Opportunity and An Illegal Pyramid Scam?
If you want to avoid being sucked into a pyramid scam, it’s important you recognize the differences.
A pyramid scheme is an illegal business that primarily depends on revenue from recruiting instead of selling products or services. These scams often promise new members high earnings with minimal work. Some pyramid schemes sell no legitimate products or services, while others sell overpriced goods that can’t compete in the market. Funds mainly come from new recruits paying the company for supplies, training, or other costs. Initial participants recruit others, who recruit others, creating a pyramid-like structure.
These schemes are illegal because they inevitably collapse; you can’t add an infinite number of recruits.
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