Looking for a better understanding of Affiliate Marketing and Direct Sales, well you have come to the right place. Lets discuss what each of the business are, the pros and cons to them and once we do that understanding the difference between them will become quite apparent.
The dictionary describes Affiliate Marketing as “a marketing arrangement by which an online retailer pays a commission to an external website for traffic or sales generated from its referrals.” So what exactly does this mean? As an affiliate marketer, you are recommending or talking about a product that you will get paid a commission on if the product is purchased from a link that you provided.
There are many ways to start an Affilate Marketing business, CJ is one of the biggest companies offering many ways to earn commissions, be careful when applying and read the instructions carefully their are many pros to this company but one of the cons is that because it is so big the advertisers can be very picky on who they partner with.
If you are thinking about starting your own business, have a read on my Wealthy Affiliate post where you will find some more information on a great company that will set you up for success in Affialte Marketing.
I would describe direct selling as this: selling products directly to the consumer in a non-retail environment, products sold through direct sales are normally not found in retail locations, rather if you want to purchase something from a Direct Sales company you need to find a distributor or rep to help you buy the products or services.
The most common type of Direct Selling is Home Party selling, this means that the person who wants to buy some of the business product or service will host a party normally at their house. Direct Selling is becoming a very common way to make money in Canada.
Direct Selling / Affiliate Marketing – Is it Legal?
As with any new business venture you are thinking about engaging in, you should do your own due diligence. There are many people out their that make money by scamming individuals out of their money.
With Direct Sales, you are typically buying into a business, and this is all perfectly legal. I recommend starting to look at direct sales companies that are registered with the DSA you can read my list of DSA companies that I have used in the past here.
Affiliate Marketing is also very legal, Google and Amazon would not be a part of this process if it was not.
To conclude the main difference between affiliate marketing and direct sales is the in person aspect of your business. If you are an outgoing individual who has many friends that they could share their new business with maybe Direct sales is the best choice for you to start with. Maybe you are a little more reserved and need to start a business where you are not face to face with anyone at the beginning, maybe this person should consider Affilaite Marketing.
What ever new business route you choose, remember that it takes hard work, time and dedication to make it successful, if you put in the effort you can do it.