Internet Marketing vs. Network Marketing

Discussion in 'General Marketing' started by cardwarrior, Dec 25, 2007.

  1. cardwarrior

    cardwarrior New Member

    Is there a difference between internet marketing and network marketing? I've been hearing the term "network marketing" being thrown around recently, and most of the time, it has been used synomously with internet marketing. I just wanted to see if this is a different type of internet marketing or whether it is a completely different field altogether.
  2. shermanchoo

    shermanchoo New Member

    Hello CardWarrior,

    For me it would be:

    1) Internet marketing - Product/Service Sold Online
    2) Network Marketing - Product/Service whose payment scheme is multi-tiered.
  3. getagrip

    getagrip Gold Member

    With network marketing, you are tied to a specific company and you must sell their products - or products they have agreements with other companies to sell. Your success is often dependent on bringing people into a specific "business" - the more people you bring in, the more your earning potential becomes.

    So, there is always someone you have to "bug" to try to get them to join, or go to a hotel meeting to watch a presentation on the "opportunity", or something to that effect.

    With internet marketing, you are entirely independent - you can promote any kind of product you want to promote, with any company you choose, which is usually an affiliate (profit sharing) program, unless you develope your own product.

    You do not have to bring other people into any specific "business", since your success is dependent on generating sales via the internet, although affiliate programs do reward you for referring others.

    Additionally, most network marketing companies require you to pay a fee to join, but with affiliate marketing, there are many resources which teach you the basics for free, although you can pay for an affilaite marketing guide if those resources are not sufficient.
  4. changemylife

    changemylife New Member


    You are correct; terms are loosely thrown around and often used incorrectly. First and foremost; not matter what acronym is used, Multi-Level-Marketing (MLM), Network-Level-Marketing (NLM), Referral Marketing (RM), Affiliate Marketing (AM) or Internet Marketing. They are all part of the Direct Selling industry.

    Not to bore you and the readers with mindless jargon. The primary difference is the compensation plans and how the representatives are paid. The compensation plan that has gotten the most flack is the MLM compensation, which consists of (Binary, Matrix, Forced Matrix and Hybrid {Binary and Matrix}).

    This is what people who are not well versed in business call a pyramid scheme. The main problem with the MLM compensation plan is it requires a large number of people generating sales to create a substantial monthly income. Anyone who is associated with an MLM knows, the prospects (recruits) drop out faster than they can be recruited, thus why it takes a significant time to build a stable monthly income.

    NLM's are very similar in nature to MLM's and it is not necessary to cover them. Internet Marketing (Marketers) is the marketing and sale of products online. Most Internet Marketers keep 100% of their commissions unlike their Affiliate Marketing counterparts.

    If an Internet Marketer is associated with a company most will fall under a 2-UP compensation plan (Every prospects passes up their first 2 sales to their sponsor).

    Which do I prefer? I was very success as an MLM'er, but prefer Internet Marketing. Harassing your friends and family; inviting people to meetings (Most don't show) and babysitting your downline is for the birds...

    Been there... done that... got the t-shirt!

    I recommend you do what works for you. I pass on MLM's.
  5. pcwork

    pcwork New Member

    Network marketing you build a pyramid, internet marketing you sell online.
  6. LeisaWatkins

    LeisaWatkins New Member

    It's true that the line between the two has been somewhat blurred, but it has probably only been blurred in the minds of those of us who spend quite a bit of time online.

    I recently heard an interesting statistic. About 50% of the people involved in MLM or Network Marketing would never be found using the usual online methods. They simply don't spend much time online.

    Many Network Marketers use internet marketing to market their business opportunity but there are still a lot of people who don't. They use the traditional forms of networking - person to person.

  7. cherie27

    cherie27 New Member

    I feel that as long as you are in the business. You definitely can use internet marketing to promote your business online regardless your business is online or traditional based.
  8. BillyPilgrim

    BillyPilgrim New Member

    Network is all about downline. IM is all about sales.

  9. De La Mente

    De La Mente New Member

    Not Necessarily Billy, there are some companies that combine NM and IM. The mix system allows multiple streams of income to become available to those that buy into to the company to prevent competition.
  10. dmitch31

    dmitch31 New Member

    I think what makes it confusing is that "Internet Marketing" is a method that many "Network Marketers" use to market their business. By definition they are two different things, however.
  11. A8ch

    A8ch Gold Member

    Here's another observation:

    Network Marketing can be conducted exclusively OFFLINE,
    but without the Internet there could be no Internet Marketing.

  12. BillyPilgrim

    BillyPilgrim New Member

    Having been in NM, the big money is all about downline. I pass.
  13. jschuman

    jschuman New Member

    Network marketing is just one way to make money via Internet marketing. It is actually a business model for getting products from a manufacturer into the marketplace via a distribution network of independent business people.

    With Internet marketing you are actually promoting products on the Internet and it can be used to promote a multitude of different industries including network marketing, affiliate marketing, private label rights, resell rights, and so on.
  14. shubh

    shubh New Member

    Internet marketing delivers quick results while social marketing starts delivering results after some time. The benefits of social marketing are long lasting.
  15. WhoIsBenjamin

    WhoIsBenjamin New Member

    The difference between the two depends on how you use the two.

    I know some people who use internet marketing skills to sell network marketing or big ticket items

    And some seasoned network marketing pro's use the internet to build a stronger downline.

    I've been on both sides, and their are positives and negatives with both.

    What I like most about network marketing is it's more residual and you can sell bigger ticket items with less effort, but it's harder to break into if you don't have marketing skills and don't know how to approach people.

    What I like most about internet marketing is it's far more leverage, and getting your feet wet making money in your business isn't as difficult as struggling to get your first "recruit".

    Ironically, the best internet marketers use network marketing skills to do JV's, they go to event's, they handle customer support and answer phone calls...almost everything a MLM rep does, but with less stress.
  16. Kanga

    Kanga New Member

    Hi Guys,

    This post has been really enlighlining for me because i had not really pondered both terms that way. I would like to thank you all for your contribution to our learning.

  17. mountainmom5

    mountainmom5 Gold Member

    WhoIsBenjamin: What I like most about internet marketing is it's far more leverage, and getting your feet wet making money in your business isn't as difficult as struggling to get your first "recruit".
    Yep, that's me. I have been on both sides of the Marketing fence and love doing strictly internet stuff, rather than all the face to face or phone to phone that I used to do with Network Marketing.

    They both work - we just need to find out what we like best and there are many guys that do both.

    I just happen to not like certain aspects of NM.
  18. michaelcole

    michaelcole New Member

    I don't think it is a matter of "Internet Marketing vs. Network Marketing" so much as "Internet Marketing and Network Marketing"

    In Network Marketing the goal is to build a marketing network of like-minded people to create a substantial residual income.

    With Internet Marketing you can reach a lot of people faster than any other method.

    Combine them to form Internet Network Marketing for a 1, 2 punch.

    How much time do you take to decide "bacon or eggs?" for breakfast? Not much' I'll bet.

    Go with Internet Network Marketing to get the best of both worlds.
  19. FreeCashMan

    FreeCashMan Well-Known Member

    Internet marketing is about marketing anything via the internet, not subject to a comparison of it to network marketing. If not then we need some new terms.[​IMG]
  20. BruceMiles

    BruceMiles New Member

    Yes there is a difference between internet marketing and network marketing. Network marketing is basically for a company and internet marketing can do anybody who wants to purchase a product...

Share This Page