Network Marketing, Affiliate Marketing, and CPA Marketing

It’s time for another Teaching Tuesday with your host Michael
Babcock! I want to chat with you a little bit about MLM/network
marketing and affiliate marketing. You’re going to like today, and
if you do, don’t forget to share with your favorite social

Before we get going with that, I’ve got a couple of house
keeping things to take care of. If you get any value out of today’s
podcast don’t forget that you can show some support by picking up
a free book from Audible.
If you want to leave feedback and get your voice heard like Jessica
did yesterday, feel free to give us a call. 5412154433.

Before we get into it today, I want to chat with you a bit about
my history and associations with network marketing, multi level
marketing, and affiliate marketing. From this point forward on the
podcast I want to combine network marketing and multi-level
marketing into their own category to be used interchangeably. I
first got introduced to multi-level marketing in 2006, right before
I graduated high school and was looking for a way to make money. I
found this opportunity called Vecter, and Vecter sold knives. When
you bought a knife set from them, they encouraged you to share it
with people who might be interested as well. About a year or so
later I found this website called ClickBank, which is a repository
of affiliate marketing opportunities. I could have found any
product or service on Clickbank, sold it to whomever might want it,
and gotten paid a commission.

A commission means you get paid a portion of the sale. If you’re
selling a ten dollar product and you’re getting paid a ten percent
commission, then you’re going to get a dollar every time someone
purchases that ten dollar product. Probably some of your favorite
products or services have an affiliate program.

Network marketing is a bit different than affiliate marketing.
Remember that ninety percent of our sale, the nine dollars that
went to the product creator? In multi-level Marketing that nine
dollars is distributed within the organization. Let’s say I sell
widgets for ten dollars each, and for each one I sell I receive
five dollars. My friend Kevin is interested in selling widgets and
making five dollars from every sale. This is amazing because now
not only do I get fifty percent from my sales, I’ll also get fifty
percent of what Kevin sells. If Kevin sells a ten dollar product
and gets five dollars, I’ll receive two dollars and fifty cents off
that sale.

The difference between affiliate and network marketing is that
affiliate marketing is a one level commission. It doesn’t matter
how many people I introduce to the business who decide to make
sales on their own. However in the multi-level marketing business
structure I could introduce a thousand people and if each of them
make sales I could get paid on every one.

One last thing that you might not be aware of: CPA is a great
way to get paid quickly. If you head on over here, you can pick up
a free Audible book just by signing up for a free trial of Audible.
Every time someone does that I get a fifteen dollar commission.
That’s what’s called a CPA opportunity or Cost Per Action.

There’s three ways of making money; network marketing, affiliate
marketing, and CPA. You can also produce your own products online
as well. We’ll chat more about that next week. My name is Michael
Babcock and I’m teaching other blind entrepreneurs how to bring
their business online and inspiring you to get off your ass and do

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