Network Marketing vs Affiliate Marketing: What’s the Difference?

If you’ve ever looked into earning money online, you’ve probably come across network marketing and affiliate marketing. Both business models allow you to generate income by promoting products and selling services directly, but they operate very differently.

Many people confuse the two, but understanding their key differences will help you decide which model is right for your own business.

You'll also see people compare affiliate marketing vs MLM, as both involve promoting products and earning commissions, but the structure and earning potential differ significantly

So, when it comes to affiliate marketing vs network marketing, which is better? The answer depends on your goals, risk tolerance, and marketing strategies. Let’s break it down.

What is Network Marketing?

Also known as multi-level marketing (MLM), network marketing is a referral marketing strategy where independent business owners sell products or services directly to a target audience while recruiting others to do the same.

Network marketers use direct selling techniques to reach potential customers, often through personal relationships, networking events, and social media outreach.”

This recruit-to-earn model rewards network marketers for both personal sales and sales generated by their downline (recruited distributors).

Key Features of Network Marketing

• Direct selling approach with a tiered reward system
• Independent distributors act as their own sales team
• Success depends on recruiting affiliates and driving sales
• MLM businesses often require attending training sessions
• MLM participants may need to purchase products upfront
• Some MLM companies are accused of being illegal pyramid schemes

Examples of Network Marketing Companies

Some network marketing companies include:

• Amway
• Herbalife
• Avon
• Nu Skin

These MLM companies use a sales force to sell products and expand their MLM network.

What is Affiliate Marketing?

Affiliate marketing is a digital marketing strategy where an affiliate marketer earns commissions for promoting products or services online.

Most affiliate programs use tracking links to ensure transparency and accurately pay affiliates based on their actual sales or lead performance.

Key Features of Affiliate Marketing

Unlike network marketing, affiliate marketing requires no recruitment, Instead, you start promoting brands using tracking links and get paid commissions based on actual sales.

• No recruitment required and you earn from product sales only
• Most affiliate programs are free to join
• Commissions are performance-based (sales, clicks, leads)
• Affiliate networks provide tracking links and payment processing
• Works well with content creation (blogs, YouTube, social media, SEO)
• Many affiliates own websites to generate income through organic traffic

Examples of Affiliate Marketing Networks

Some popular affiliate networks include:

• Amazon Associates
• CJ Affiliate
• ShareASale
• Reditus (for B2B SaaS affiliate programs)

Key Differences Between Network Marketing & Affiliate Marketing

At first glance, network marketing and affiliate marketing may seem similar since both allow individuals to earn money by promoting products. However, the business models behind them operate very differently.

In network marketing, companies incentivize affiliates by offering multi-tier commissions, rewarding them for their own sales as well as the sales generated by their recruited downline.

This structure encourages team-building and referral marketing, allowing participants to build a sales force that continues to generate income.

On the other hand, affiliate marketing programs focus purely on personal performance. This is how it works: Affiliates promote products and earn commissions only on actual sales made through their unique tracking links.

Instead of relying on recruitment, businesses reward affiliates based on direct sales generated, making this a simpler, more independent revenue model.

The table below breaks down the key differences between affiliate marketing and network marketing, helping you determine which model is best aligned with your marketing strategies.

Pros & Cons of Network Marketing vs Affiliate Marketing

Pros of Network Marketing

✔️ Potential for residual income from MLM network sales

✔️ Network marketing industry offers structured training

✔️ Companies sell products that can be repeatedly purchased

✔️ Strong community support and personal development opportunities

Cons of Network Marketing

❌ Recruitment is required to earn significant income.

❌ High startup costs, must purchase products or starter kits.

❌ MLM businesses are often mistaken for pyramid schemes.

❌ Risk of market saturation, too many sellers, less demand.

Pros of Affiliate Marketing

✔️ No recruitment is necessary; you don’t need a sales force.

✔️ No upfront costs; join affiliate programs for free.

✔️ Works well with content creation, SEO, and referral marketing.

✔️ More sales opportunities, and you can promote multiple brands.

Affiliate marketing allows you to leverage genuine expertise in your niche, promoting products and services directly that align with your audience’s needs.

Cons of Affiliate Marketing

❌ Affiliate marketing requires traffic & conversions to make money

❌ Affiliate relationships can change and commission rates may drop.

❌ No team-building or structured training.

❌ Competitive landscape. Many affiliates promote the same products.

Which One Should You Choose?

Choose Network Marketing If…

✅ You enjoy direct selling and networking

✅ You’re willing to recruit affiliates and manage a sales team.

✅ You prefer structured programs with training and support.

Choose Affiliate Marketing If…

✅ You want a low-cost, independent business model.

✅ You prefer digital marketing strategies over direct sales.

✅ You don’t want to recruit affiliates or attend training sessions.

Some businesses and entrepreneurs explore both affiliate marketing and network marketing, but success depends on your preferred approach to selling products and earning commissions.

Final Thoughts: Which is Best for You?

Both network marketing and affiliate marketing have their own pros and cons. As we mentioned, some companies even explore combining affiliate marketing with other revenue generation methods, leveraging both passive income and direct sales to maximize earnings.

Quick checklist:

• If you like direct selling and building a team, network marketing may be a good fit. Just be wary of MLM businesses with pyramid scheme tactics.
• If you prefer a low-risk, scalable business model, affiliate marketing lets you earn from referral marketing without recruiting affiliates.

Looking for a high-earning affiliate opportunity?

You can join affiliate programs through Reditus, a leading affiliate network for B2B SaaS products. Earn residual income when you start promoting today!

Meet the author

Joran Hofman

Back in 2020 I was an affiliate for 80+ SaaS tools and I was generating an average of 30k in organic visits each month with my site. Due to the issues I experienced with the current affiliate management software tools, it never resulted in the passive income I was hoping for. Many clunky affiliate management tools lost me probably more than $20,000+ in affiliate revenue. So I decided to build my own software with a high focus on the affiliates, as in the end, they generate more money for SaaS companies.