Why do some people mistakenly think that affiliate marketing is direct sales? What is the difference between the two?
Which way of making money is right for you? Let me analyze it for you from 5 aspects.
- What is affiliate marketing?
- Advantages of affiliate marketing
- Disadvantages of affiliate marketing
- What is direct selling?
- Classification of direct sales
- 1. Direct sales
- 2. Direct marketing
- 3. Multi-level (transfer) direct sales
- Why is direct selling attractive?
- Classification of direct sales
- What is the difference between affiliate marketing and direct selling?
- You can decide which way you choose to make money like this
- 1. Personality-extrovert vs. introvert
- 2. Like to socialize or be alone
- 3. Like teamwork or personal achievement
- 4. Do you have sufficient social experience and judgment ability
- 5. Whether the funds are sufficient
- in conclusion
What is affiliate marketing?
The English of Affiliate Marketing is Affiliate Marketing. From a literal point of view, Affiliate Marketing means alliance and joint marketing by partners.
What is “marketing”?
“99% of the effective marketing of the story, creating brand power” mentioned in the book, “Marketing is through advocacy, promotion, to promote the sale of products or services.”
In addition, the American Marketing Association mentioned in 2017 that “Marketing is the activity, organization and process of creating, communicating, delivering and exchanging ” value ” to consumers, customers, partners and society.” (Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.)
Looking at the whole passage, it seems very complicated. Simply put, the most important thing in marketing is to provide “value” to your customers .
And this is also the core spirit of alliance marketing.
Specifically, what is affiliate marketing?
To put it simply, it means “earning commissions by recommending products from manufacturers” .
Proceed as follows:
1. Readers browse your web page or community.
2. Your webpage provides product information and product purchase links that readers need.
3. Readers enter the merchant store through your webpage and complete the purchase (or fill in information and other tasks).
4. You get the promotion share.
Advantages of affiliate marketing
1. No need to own your own product.
2. You can find suitable products or services to recommend based on your own interests and expertise.
3. Ability to work without time and place restrictions.
4. Joining the alliance marketing platform (such as Channel King, Alliance Network) does not require any fees, only registration is required.
5. There is no limit to income
Disadvantages of affiliate marketing
1. It takes time to write valuable content for readers in the early stage
2. There needs to be traffic to have conversion
3. Unable to ensure stable income
What is direct selling?
Many people hear “direct sales” and their intuition is “direct sales = mouse club”, so they rarely understand what “direct sales” is?
Direct selling is called Direct Selling in English. According to the World Direct Selling Alliance, direct selling is a face-to-face, non-fixed-point manner . Direct sellers bypass traditional wholesalers, retailers and other channels and sell products directly to buyers through salesmen
Because of the non-fixed, face-to-face nature, direct selling practitioners are all “freelancers.”
Classification of direct sales
To be more detailed, we generally say “direct sales”, which includes three concepts:
- Direct sales
- Direct marketing
- Multi-level direct sales
1. Direct sales
Direct sales is a “sales” model. Merchants directly face-to-face, or directly deliver goods to consumers, eliminating the need for intermediary agents, middlemen, and wholesalers.
For example, farmers take their own agricultural products to the market for sale, and consumers buy directly from the farmers.
2. Direct marketing
Direct marketing is a kind of “marketing” method. It is mainly used by product manufacturers to pass product and service information directly to consumers through channels (such as mailing DM, digital advertising, radio stations, telephone communication, etc.)
In this marketing method, manufacturers and producers communicate directly with consumers to achieve the purpose of sales.
Such as: mail order, TV shopping.
3. Multi-level (transfer) direct sales
Multi-level direct marketing or multi-level marketing (MLM) is the kind of deceptive, rat-like, “Ponzi scheme” direct selling method that we all remember.
Because they sell products directly to consumers, a large number of salespeople are needed. Therefore, in addition to selling products to consumers to transfer sales profits, salespeople also need to recruit more salespeople (that is, offline). A certain percentage of bonuses can also be allocated to the performance of the production.
What is a Ponzi scheme?
The Ponzi scheme was “invented” by a speculative businessman named Charles Ponzi.
Charles Ponzi (Charles Ponzi) is an Italian speculator who lived in the 19th and 20th centuries. In 1919, he planned a virtual enterprise investment and promised that investors would get 40% of the profits within three months. Return.
Then, the cunning Ponzi paid the new investor’s money as a quick profit to the initial investor , in order to lure more people into being fooled.
Due to the generous returns from the early investors, Ponzi succeeded in attracting 40,000 Boston citizens to invest within one year, and was later exposed by financial experts to this financial scam. Later generations called it a “Ponzi scheme.”
Also read: How small businesses use affiliate marketing
Why is direct selling attractive?
According to a survey conducted by the Fair Trade Commission in 107 years, there are 346 direct selling companies in China. The number of direct sellers is 3.0487 million, accounting for 17.8% of the labor force aged 15-64. Almost 1 in 5 people is a direct seller.
It can be seen that direct selling can attract a large number of social freshmen, full-time mothers, office workers who want to work part-time, and people who want to realize the freedom of wealth early to join.
Why can direct sales attract so many people?
2. Able to work part-time
3. Not restricted by time and place
4. Exclusive products, excellent results (if it is true)
5. Create a positive and positive atmosphere with the team
6. There are a lot of marketing, business skills, and health-related training opportunities.
On the other hand, there are many malicious direct marketing that attract people with judgment and inexperience through the following methods:
1. Create the illusion that it is easy to make money (the bonus system makes you think you can wait for passive income)
2. Create the illusion that you can make money quickly
3. Create a vision for the early realization of wealth and freedom
However, the above three points can be seen from the 107 investigation report of the Fair Trade Commission (P.17), they are indeed false!
The report shows that female distributors received an average of 42490 yuan in 107, and men received an average of 56193 yuan. You are not mistaken, it is the amount received throughout the year !
Although there are also decent direct selling companies, there are indeed more malicious and fraudulent direct selling companies. Let’s take a look at how Porter King disassembled the fraudulent methods of direct sellers:https://www.youtube.com/embed/nxJDAPb79tk
What is the difference between affiliate marketing and direct selling?
Having said that, let’s analyze the difference between affiliate marketing and direct selling?
|Affiliate marketing||Direct sales|
|English||Affiliate Marketing||Direct Selling|
|Pull down||No need to||want|
|cost||free||Membership fee required|
|the company||Will not be restricted to a certain company or a certain brand||Have a fixed company or brand|
|platform||Only via internet||Social software, traditional face-to-face|
|Salary structure||Commission for successful promotion||The main source of income is bonus for recruiting downline|
|work place||There is no limit, as long as there is internet and computer||no limit|
|team||Not needed||Must form a team organization|
|product||No need to have your own product||No need to have your own product|
From the above table, we can see that there is indeed a big difference between affiliate marketing and direct sales.
Although both have their own attractions, such as: there are no restrictions on the location of work,
At the same time, they also have the nature of “entrepreneurship”. Depending on the difference in the time, effort, and work methods spent by individuals, there will be obvious income differences.
However, the biggest difference is that among the direct sellers, there are not a few bad companies!
You need to have sufficient judgment to understand whether the company you want to join is a legal company,
At the same time, you have to understand the company’s products and bonus system in depth to determine whether you will pay the membership fee, and then pay out of your pocket every month to reach the performance limit. After all these are done, you still haven’t made any money!
Affiliate marketing is very simple, as long as you successfully promote through the affiliate platform, you can get commissions back.
To learn more also read: What is affiliate marketing? 2020 Getting Started Guide
You can decide which way you choose to make money like this
After understanding the difference between affiliate marketing and direct sales, let’s talk about how you should choose which way to make money?
It can be judged from the following aspects:
1. Personality-extrovert vs. introvert
Direct selling needs to sell products directly to strangers and build relationships. People who are outgoing, like to make friends, and like to talk are more suitable.
Affiliate marketing can work independently. You only need to focus on establishing the content and value of the article, and let the traffic grow, and there may be a certain conversion.
2. Like to socialize or be alone
For direct sales, social skills are very important. In the process of unfamiliar development, customers need to build a sense of trust in you. In addition to having sufficient knowledge of the company’s products, they can persuade customers to believe that the products you sell are for them. Language is really needed. In addition to selling products, it is more important to be able to attract people to offline, which requires mature social skills and skills.
As far as affiliate marketing is concerned, as long as you focus on establishing content and providing the value that readers need, you can naturally attract people in need to your website, and you don’t need to go around selling.
3. Like teamwork or personal achievement
The big difference between direct selling and alliance marketing is that direct selling requires the establishment of an organization and a team to create positive energy through the organization, so that people participating in training or speaking can see that the people in the organization are upright, kind, enthusiastic, and cooperative. It also helps to draw more downlines to join.
Affiliate marketing is more suitable for people who like to achieve success through personal efforts. Of course, having partners cheering and helping each other during the initial period will be of great help to the continued operation, but the density of team mutual assistance in alliance marketing is not as strong as that of direct sales. If you really don’t like social activities, no one will force you to know other people.
4. Do you have sufficient social experience and judgment ability
As mentioned in the previous paragraph, there are quite a few malicious direct selling companies in the society, and of course there are also direct selling companies that are truly legally operated and have excellent product quality. Do you have enough judgment ability to be mature and rational to distinguish the company from Not a decent direct sales company?
For affiliate marketing, you only need to develop the value of the article in the areas you are interested in and expertise, and then link related manufacturers or products for promotion. Although you also need to pay attention to whether the promoted products can be sold legally, these information principles The above are very clear and clear, and the comparison does not need to test whether you have sufficient judgment ability.
5. Whether the funds are sufficient
From the Fair Trade Commission’s 107 survey report (P.11), it can be seen that 96.8% of direct sales companies are conditional to join. These conditions include: payment of membership fees, ordering goods, purchasing materials, and reaching a certain turnover Wait, so you must have some funds on hand to join direct marketing.
For affiliate marketing, if you are a full-time mother, do not have any income, and need to raise children, you only need to register for an account on the affiliate marketing platform for free, and then register for a free blog in Pikerbang, and you can start your alliance Marketing career.
Also read: American Digital Marketing Company Inventory
Affiliate marketing and direct sales are essentially a kind of commercial activity. If only in terms of the nature of sales, the original purpose of the system design is very simple, which is to achieve sales through promotion.
Since it is promotion, in the Internet age, there are more and more similar methods that can be adopted, for example, by establishing your own website and providing valuable content to shape your personal brand to attract consumers in need, or It is people who are interested in engaging in promotion work through the Internet search on their own, enter your list, and finally achieve the purpose of selling or pulling down the line.
Because consumers come to your website voluntarily, sales are much easier.
However, although working methods will evolve over time, the more important “mentality” remains the same .
Either direct or affiliate marketing, you need to “focus on one thing”, and “long stick”, which is “at drama studio is your station for a long time,” the last word .
Finally, if you are a mother like me, I want to tell you that my purpose of establishing this website is mainly to help more mothers find a way to “combine work and family.”
In the busy slash life, it is not easy to burn at both ends of the family business. I am working hard to achieve a “work-life balance”, and I am not forgetting to enrich myself to make my mother’s life more prosperous and happier!