Transcript
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Welcome to the Think Generation Award podcast, and this is episode number 121.
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I am your host, amir Estimo.
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Thank you for tuning in today's podcast episode and I really appreciate it because you could be doing anything in this world, but the fact that you are listening to this podcast episode, it is much appreciative.
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You are listening to this podcast episode, it is much appreciative.
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Second of all, I'd like to say thank you.
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This podcast episode is brought to you by Starville Talent Group, and Starville Talent Group is a company that wants to help people save money and get out of debt and help them build wealth.
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Ok, so let's jump in today's podcast episode.
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So today's podcast episode, we're going to talk about affiliate marketing versus network marketing.
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What's the difference, the pros and cons, and should you do either one or both?
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Let me ask you a question.
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In today's economy, if you're someone who's let's say you're working nine to five employee, like I am, let's say things are expensive grocery, gas, pretty much everything's expensive nowadays days and you're trying to find extra ways to make money, how many of you probably been approached by a friend or family member about a network marketing business opportunity, what they call it opportunity?
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How many of you have you ever thought about it or are you in it?
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Some of you, probably who's listening to this podcast could be in a network marketing business.
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Or if you're also searching for ways to make extra money, you can.
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You probably heard of affiliate marketing.
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What is it?
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How does it work?
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Or maybe you are an affiliate marketer.
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These opportunities I know, especially for me.
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I've been looking for extra ways to make some extra money and some of it's been affiliate marketing.
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I'm familiar with network marketing.
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Now I'm going to dive in.
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If you're someone who's looking for or trying to understand how you're going to make some extra money, you're probably wondering what, what, what do I need to know before I do either?
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Or, and obviously, what are the pros and cons?
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So if you've been approached about a family member, what has always stopped you from getting into a opportunity like a network marketer?
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Or what was also stopped you for becoming an affiliate marketer, let's go.
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I'm going to dive in.
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So network marketing in a nutshell, the difference between the two.
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So a network marketer is someone.
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Let's say, for example, you.
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Let's say Apple, I'm going to use Apple.
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It may not be the best example.
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Or a health product.
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Let's use a health product, for example.
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And you got approached by a friend and they said man, I got this great opportunity and if you, all you need to do is sign up, pay a fee to sign up, to use their back office in their system, and then in this case, you then have to basically not only sell the product but also build a business behind it.
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But also build a business behind it.
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You could just sell the product, but it would be very hard because if you're only just selling the product, you're really not going to make as much money as someone who basically, where you are, actually building a business for this health company.
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So that's what a network marketing.
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You get approached and you can just sell the product and get a commission or but you get a certain, you get a certain percentage and sometimes, if you sell and hit certain points or bonus points or certain levels, you can move up.
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But to really get to maybe like that CEO level, you won't get there until you actually have people under you.
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So that's why network marketing gets a big rap, because they call it a pyramid scheme, because you have a CEO and the CEO has basically, it can have a marketing director, it can have an executive director and these people have people under them, so which is basically like a pyramid.
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Now that's where it gets a bad rep, because you come into the business, you then have to recruit people and then these people have to make money and you even still have to make money too.
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That's the bad rap network marketing business gets.
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And I think it's a little bit unfair in a sense, because it's not when you think of it.
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When you go work for a corporation.
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That's basically the same thing.
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That's basically the same thing is you have the CEO and then the CEO has CFOs and the CFOs has other senior management under them.
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So I never understood the mentality of people when they say, oh, network marketing is a pyramid scheme.
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Well, you work for a company that does the same thing.
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So I don't really get, I don't understand that, but that's the rap it gets.
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The pros is you can actually make some really good money.
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And network marketing, well, it depends on the product the product that you are selling or the people you bring into the business, and if these people are successful, you make a percentage.
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Now, there's, there's more to it than just you make a commission, because certain products you probably can sell, you may make 30 percent, you may make 40 percent, you may make 50 percent.
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It just really depends.
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I know there's certain insurance companies, financial services companies that has this model, to name a few World Financial Group, prime America, and then there's some other ones out there.
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So there's quite a few out there.
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The pros is, again, you can make some really good money, you can build some really good relationships and talk about long term relationships.
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It can be life changing, because I've known quite a few people that has done network marketing and their life change, whether it's just health, because you start to be around people who have a different mindset, and their mindset is they want to be able to leave a legacy for their family.
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The also to depending how good you are.
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You can travel the world, you can win a lot of awards based on your efforts and you can get recognized for it, whereas if you, let's say, you're working for a nine to five corporate company, the probably the best thing you're going to get is some type of recognition and everybody go about their business.
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So that's that's.
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That's the thing in a nutshell.
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The cons is it's very hard.
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It is very hard If you do not have a network.
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Network marketing is going to be very difficult, especially if you are someone who's an introvert, who's not very social, because this type of business model is going to require you to be very social, to be very, to really have a certain mental toughness about you, because you can come in into this type of business and you are actually not successful at all and then you give up.
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Network marketing has a very high turnover rate because number one people expect results right away.
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Number two my thing is if you're into network marketing, it seems like the most common thing is hey, once you come in, do you have a warm market?
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Let's reach out to your warm market.
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The issue with that is what?
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If you're someone who's participated in several network marketing opportunities, your friends and family are going to get tired of you and sometimes you can end up losing relationships because of that, because you're always presenting or always selling them, always have an opportunity.
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So you want to be careful with that.
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Number two it is like I said it is very difficult to build a network marketing business because you got to have the right mindset, you got to have the right grid and, of course, you too have to have a network, because otherwise, if you don't, it's going to be very difficult because you have to start from ground up and you got to be out there really hustling to make some money.
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And then, when you do, sometimes depending on what the company you work for, it could be 30 percent, 35.
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And you're starting off.
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Basically most of most of these opportunities you're starting off at associate level and which is there's a very small percentage.
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But as you build a team you get a percentage.
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So let's say, if you have your brain, joey, joey comes in, he's at 30%.
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You may get an override and you may make 5% of what Joey also makes of his sales.
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But because of the fact that he's coming under you, he's training under you, joey, joey.
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Also, if Joey goes on, it makes a lot of money.
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You're, he's still under you, you can make some money.
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So that's the pitfall of network marketing.
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So there are some good parts to it.
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It is not all bad, like most people would say but also to what you have to be very aware of.
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It is a very tough business and I'm going to share a statistic with you.
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Network marketing is also known as multi-level marketing has a profitability.
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So the profitability studies indicate that one to 3% of MLM participants make significant profits.
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So one to 3%.
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So that's a very already low percentage, with approximately 75% of participants either breaking even or experiencing losses, and this is from themodelercom Financial outcomes.
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According to AARP Foundation, 25% of MLM participants report making a profit, the other 27% break even and 50% incur losses, and that's from truelistco.
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So, as you can see, if you're not really out there hustling or really out there really making it happen, it is a very tough business to be in and even if you and the ones that are successful, it's a very small percentage that gets to that point.
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That's something you want to pontificate about is, if you ever got presented a network or network marketing opportunity, don't automatically just shut it down.
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What I would say is look at the company, their reputation, number two look, are you going to be trained properly?
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Because some of these companies you go work for you don't get the training, because the whoever brings you in they may just talk to you, get you all hyped up and next thing you know tell you hey, here's your market.
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Go, here's a list, make a list of 25 people, whatever, and go reach out to them.
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They may train you one time and that is it.
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You have to keep that in mind If you're ever looking at ever joining an opportunity, don't shut it down completely.
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Just do your homework, your due diligence, before you join, because there is some type of money to it whether you got to pay a monthly fee to use their back office, to use their resources.
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But it's a great opportunity too, because it would be even more difficult for you if you did not.
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It gives you a leg up, because I remember there was one financial service company that I I'm not going to say which one that I did participate with and they had access to all the insurance carriers.
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Versus if you're independent, it may be a little bit difficult for you, but you could do network marketing, build yourself a business and go independent afterwards, depending how you look at it.
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But understand it is not easy.
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Now, affiliate marketing, affiliate marketing what is that?
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So now I'm going to use the.
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I'm going to use the Apple example.
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Apple has products and they need affiliates to sell these products.
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What do you do?
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You can sign up an affiliate link, which most youtubers do this.
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They sign up for affiliates and their affiliate links.
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That's why they have, let's say, apple has you have your own apple store.
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Let's just say, quote, unquote, and it's affiliate.
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They send you to a website and in that affiliate link, you buy, let's say, the iphone or something, and then they get a commission.
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The good thing about that is you can make some money.
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You really can make some money as an affiliate.
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The drawback behind it, though, is, if apple, you don't have no control over the inventory because you don't have nothing you were actually physically have.
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So Apple is out of, let's say, the iPhone 14 or something.
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You can't make money.
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Number two what if Apple changes the commission structure?
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What if you're making 50% and then, all of a sudden, apple decides and says you know what?
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You're going to now make only 20%, 25%.
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You have no control over the commission structure, so you have no control over inventory and you have no control over the commission structure.
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Number two you can quite there's a very thin line Become an employee versus actually building an affiliate marketing company.
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Let's say, if you're an affiliate and let's say 60 to 70 percent of your sales is Apple, what if Apple goes out?
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I'm not saying this will happen, I'm just giving you an example.
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What if Apple goes out of business?
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If Apple goes out of business, that means 75 percent of your sales is automatically gone.
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You got to think about that.
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That's why it's imperative If you're going to get into the network marketing, you want to be about that.
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That's why it's imperative if you're going to get into the network marketing, you want to be a network marketer is to basically desert diversified.
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You could probably sell an app, you could be an affiliate or Apple, but what you want to be, what sometimes these companies do too, is they'll say, hey, if you are a affiliate for Apple, you can't be an affiliate for Samsung either.
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So you kind of get glued in or you get trapped in and they basically can kind of quite frankly, own you in a sense that, because you're only able to push Apple products.
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But if you can be an affiliate for, let's say, apple, you can be an affiliate for a weight loss company, you can be an affiliate for a shoe company I'm just throwing examples out there.
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If you can, if you have different affiliate links.
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Because if you go to these YouTubers, sometimes the YouTubers or the affiliates that make money are ones that diversify, meaning they don't just rely on one company.
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They can again sell, sell homes.
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They can probably be an affiliate for shoe company.
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They can probably be an affiliate for a water company, coffee company, you diversify your income.
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So if you end up losing Apple, you still got maybe 10 other affiliates that you still make money from.
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But again, the drawback behind that is you don't own the inventory, you don't own the commission structure.
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At any minute they can shut down and not even notify you and now you're out of making money.
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But can you make money as an affiliate?
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Yes, but what is it required?
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It would require you, let's say, if you're someone who's, let's say, youtuber, if you have one or two subscribers it's not going to work.
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But if you're someone that has over 100,000 subscribers, you want to monetize that, then you can probably make some money, some really good money, even if you have 20000 subscribers.
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But you're going to need.
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You're going to need a following, and if you don't have a following, it is very difficult for you to make any money as an affiliate, as an affiliate marketer.
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So those are the two, and then affiliate.
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When you think about affiliate marketing earnings, the average affiliate marketer earns eight, eight thousand thirty eight per month, with eighty one point two percent, making more than twenty thousand annually.
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Conversion rates the average conversion rate hovers around one percent, though this can be very based on factors like niche audience and marketing strategy, and this is from Influence Marketing Hub dot com.
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So would you, would you want to consider between the both?
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Can you do both?
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Yes, you can do both.
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Just understand the difference between the two is a network marketing company requires you to basically build a business, to really read, to really make some money, real money.
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And number two, and then the thing about network marketing is it can be in waves One month your team produces, you may make $80,000.
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That month, the next month they barely produce, you make $10,000.
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So that's something you can consider, whereas in affiliate marketing you are just actually just really promoting products.
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So if you're someone who's in the financial services and let's say you're in a youtuber and you're in a financial services business and what you can do is you can sell credit card let's say you want to sell credit card um, how to repair your credit card?
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Or sell an affiliate for credit monitoring company, and there's different types, maybe even get links to credit cards.
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Whoever these companies like american express or so I don't know if they do or not, I never really looked into it.
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There's that's the difference between the two, the info and you have to think about as far as the income potential, which one would work for you.
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So, like I said, can you do both?
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Yes, but it would require you basically to be almost full time because you really have to go at this full time to even make a dollar to really really see how the potential, the explosion you can occur really slow.
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But I think, in my opinion, if you find the right product you want to promote and, let's say, you have a decent following or whatever platform you're using on social media, I think the best thing to do is, if you're an affiliate marketer, don't rely on any social media platform.
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Build your database, build your email database and then promote to your people.
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Take them off social media and promote and have them sign up for your email and then you can promote your products that way.
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Because if you, let's say, let's say, for example, you use TikTok, tiktok can probably and it's again, let's say, it's an Apple, tiktok can probably have 20 people who are selling Apple products.
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But those 20, if you're number one, who's taking these people off of that platform?
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Because look what happened a few weeks ago with TikTok TikTok was banned and literally the next day it got back.
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What if TikTok was banned for a while.
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What if TikTok was banned for a while Now?
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If all your traffic you're getting was from social media but you never took these people off of social media and you actually put them in your email database, then you actually lose the income potential.
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Who's going to go that route of affiliate marketer?
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And let's say you do have a decent following get them off that platform, have them sign up for your newsletter email database and then you can promote to them that way and you can promote several products that way, because some of these platforms, when it comes to social media, they want the user to stay on the platform.
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So if you're, if you're someone who's promoting links you probably going to be.
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They're not even going to promote your stuff because they don't want people to get off that platform.
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They want to be on that platform 30 minutes, one hour, two hours, three hours a day.
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Always understand that.
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30 minutes, one hour, two hours, three hours a day.
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Always understand that.
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I just wanted to share with you guys today the just a consideration.
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If you're ever came into that situation, you're trying to figure out, like me, how to make some extra money and you're looking at.
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You maybe got approached by someone who's in the affiliate marketing business or someone who's in the network marketing business understand there is potential for both of them, but they're also it doesn't.
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It's not going to come easy, it's going to take time and a lot of people come into these type of businesses expecting to make a hundred million dollars in like one week and it doesn't happen that way, folks.
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So understand if you have different, if you want to make some extra money Now with affiliate marketing, there's two companies I think that I remember I'm aware of Did you store that's a one and ClickBank, so you can sign up for ClickBank dot com.
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Or you can find you can sign up for Digi store and I think there's a couple.
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Those are two main ones.
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I know about the thing about did you still the thing about Clickbank it's, it's really saturated, it's over saturated.
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Did you store?
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You may have a little bit more opportunity, but just understand, find the right.
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Just don't promote anything.
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Don't go become an affiliate marketing promoting stuff that you don't even believe in, just because you want to make money, bring value and be, have morals, have morals and ethics, because people will catch your BS right away.
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So if you're, you don't even promote the product I had a company approach me about a health health thing.
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I had a company approach me about a health health thing and I'm not someone who really I'm not.
00:23:00.911 --> 00:23:05.653
I need to lose weight but I'm not someone where I need to really lose weight.
00:23:05.653 --> 00:23:08.413
I'm more into, like, working out fitness.
00:23:08.413 --> 00:23:14.336
So the stuff they approach me about I'm like I don't think this is going to work for me because it's not really what I'm looking.
00:23:14.336 --> 00:23:16.397
I mean, can I lose 30 pounds?
00:23:16.397 --> 00:23:24.122
Yeah, I would like to be 30 pounds lighter, but I'm OK with going through the process of losing two to three pounds a month.
00:23:24.122 --> 00:23:26.323
Now at the end of the year I'll drop 30 pounds.
00:23:26.323 --> 00:23:32.026
That's great, but I'm not someone who's like I need to lose weight today.
00:23:32.026 --> 00:23:35.086
So that to me that didn't match, that didn't work, that was not a that was not a fit for me.
00:23:35.086 --> 00:23:44.112
Understand, if you're going to go the affiliate marketing route, find something that you believe in that's a match.
00:23:44.112 --> 00:23:45.811
Just don't do anything.
00:23:45.811 --> 00:23:48.394
I just wanted to share this with you guys today.
00:23:48.394 --> 00:23:57.738
Hopefully this is a value to you and if you ever think about getting into either of those models, do your due diligence, do your homework.
00:23:57.738 --> 00:24:02.039
So until next week, please subscribe to the podcast episode.
00:24:02.039 --> 00:24:03.840
If you like this content, share it.
00:24:03.840 --> 00:24:09.682
My goal is to get to 10,000 downloads before the end of the summer.
00:24:09.682 --> 00:24:18.708
So share this podcast with a friend.
00:24:18.708 --> 00:24:19.973
If you really enjoy the content, subscribe.
00:24:19.973 --> 00:24:21.901
Leave a review I don't care if it's good or bad, I'm going to appreciate it.
00:24:21.901 --> 00:24:22.785
And tell me what you guys like to hear.
00:24:22.785 --> 00:24:23.286
What are you guys?
00:24:23.286 --> 00:24:23.886
What subject?
00:24:23.886 --> 00:24:32.480
You guys go on that website, wwwthinkgenwealthcom, and go on there and tell me what would you like to hear.
00:24:32.480 --> 00:24:35.111
You guys probably hear my dog in the background.
00:24:35.111 --> 00:24:45.239
Tell me what would you like to hear, what topics you guys would like to me talk about, and I will do some research and we'll talk about it, because this the goal is.
00:24:45.239 --> 00:24:50.085
I like to hit about it.
00:24:50.085 --> 00:24:51.268
Because this the goal is I like to hit.
00:24:51.268 --> 00:24:54.153
We're about 7 500 downloads, but we're about 2 500 downloads away from hitting 10 000 downloads.
00:24:54.153 --> 00:25:00.307
So help me get there and, if we can get there, my goal is to give a prize.
00:25:00.307 --> 00:25:04.978
I would like to give a giveaway and um, and I appreciate it.
00:25:04.978 --> 00:25:05.904
So thank you very much.
00:25:05.904 --> 00:25:36.009
Until Until next week, much love, thank you, thank you.
