The following Article was written by one of my business partners, Karl Airey, it does a great job of showing how you can actually benefit from working with both and combining the strengths from each to generate a substantial income online.
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The Difference Between Internet Marketing & Network Marketing

There is a huge difference between Affiliate Marketing (AM) and Network Marketing (NM).

AM basically boils down to "bring 'em in, bring 'em in, bring 'em in!" There are plenty of these types of companies out there too, all ready and willing to take your money and lead you down a long path of frustration and wasted energy. Almost all of them will be around today and gone tomorrow. Only a few offer value to the end-user.

I suppose a few of them are worthy of joining simply for the exposure to AM methods one would receive. But none of these companies offer what we do in MLM... personal access to some of the greatest NM minds on the planet!

It's true that we have a whole wide world out there waiting for us to reach out and touch them via our Affiliate Marketing businesses. But more important I think is our strengthened ability to find so many, many more highly qualified people to introduce to our Primary NM business.
Here is a great example (I get several of these types of calls every week). A wonderful woman called me up last night. Now let me tell you this girl was fired up about her primary MLM business! I could tell right away I was talking to a really great prospect! The reason she was calling was simply to find out what she had got herself into with our AM franchise. You see, she was on the Net searching for leads for her primary Network Marketing business and she found my link on Google and clicked on it and the only reason I spent 20 minutes on the phone with her is because of the passion I heard in her voice.

So I spent some time explaining the benefits of AM to her and helped her to see how this will benefit her and her Team. The use of a Funded Proposal (an inexpensive offer with added value for the prospect) with a commission attached will help her bring cold leads into a warmer 'partner' relationship, and fund her future advertising campaigns. List building, using AM methods is by far the best way to generate high-quality leads for a NM business.

So the point here is that although I gathered this new partner through passive AM methods, it wasn't until I had that personal contact with her that I could convey the true benefits of joining up with me. See?? The most powerful AM system out there is still faceless and void of character, until you throw in some good old-fashioned NM skills in the mix. Without them, you will likely never build a long-term residual income from it. That leads me to expand upon NM and look at what the Mission of a Network Marketer is:"Spend time with those for whom working with you is the Right thing, among the masses of the Wrong People... and then avoid all the Wrong People."It’s simple time management. A good manager will firstly surround himself or herself with all the best people because that makes him/her look good (-:Then that manager will build up those people and promote their strengths and strengthen their weaknesses...But time management in Network Marketing means you only work with those people who deserve your time! The only people who normally get any of my time are those members who take their futures seriously enough to upgrade their affiliate accounts and are actively working at promoting their AM franchise, purchasing leads from a reputable company, or otherwise investing in their business.

If you do this business right, do you know what the best thing to happen to 5,000 people will be over the next few years? THEY GET TO MEET YOU!!That’s right! And meeting you via an automated system rather than in person or even over the phone, isn't going to serve you well unless you make the effort to say hello in person and offer your assistance… Autoresponders can do alot of the explaining and encouraging for you, but they will still leave he prospect/partner at an emotional distance.Just imagine if only 5% - that's 1 in 20 - of all the thousands of people you enroll in an Affiliate Marleting program over the next few years joined you in your Primary. 5% of 5000 is 250 people! All personally enrolled by you into that most important of income streams, your Primary Network Marketing business!

250 times 10% commission on $100 worth of product bought by each person every month is $2500 monthly residual payment to you!And since almost every existing and historical large NM organization (or downline) was built by having an average only 6 good people in it, chances are, out of 250 people , I'm positive you will find 6 good leaders.

In Network Marketing we build downlines. And we build people up. In Affiliate Marketing you find the people who will prove themselves to you - or not - as to how worthy they are of your very valuable time. From that you will not waste your energy trying to bring un-qualified people into your Network Marketing business. Take advantage of an AM vehicle! Use it to drive your Primary NM business as fast and furious as the top NASCAR performers drive their cars on race day!

Have a Great Day,
Joseph Demasi