Digital Marketing vs Network Marketing: Difference and Comparison

There are different ways of doing marketing. Digital marketing and network marketing are two other tools of marketing.

Key Takeaways

1. Marketing approach: Digital marketing employs online channels to promote products and services, whereas network marketing relies on personal connections and word-of-mouth.
2. Communication channels: Digital marketing uses social media, email, and websites; network marketing focuses on person-to-person interactions.
3. Earnings structure: Digital marketing generates Income through sales or conversions, while network marketing includes commissions based on personal and team members’ sales.

Digital Marketing vs Network Marketing

Digital marketing involves promoting products or brands via digital channels such as search engines, websites, social media, email, and mobile apps. Network marketing, also known as multi-level marketing, is a business model that relies on a network of distributors to grow a business.

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Comparison Table

Parameter of Comparison	Digital Marketing	Network Marketing
What do you require?	It is done online. You need a computer and the internet for digital marketing.	You need to increase contacts and meet face-to-face with customers.
Skills required	You need to have digital marketing skills	You need to have excellent selling skills
Jobs	There are more jobs in digital marketing, and it shows an increasing trend	There are not many jobs in Network marketing as compared to digital marketing
Type of jobs	Type of jobs in digital marketing includes SEO, SMO, SMM, PPC etc.	Types of network marketing include single-tier, two-tier and multi-level marketing.
Tools	You need software for digital marketing activities like email marketing, SEO, website management etc.	There are no tools required for network marketing.

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What is Digital Marketing?

Digital marketing is any activity done online to promote the brand or generate leads.

It includes Search engine optimization, Content development, Social media management, Pay per click advertising, Email marketing, Website revamping and management, Mobile marketing etc.

Big as well as small companies do it. Digital marketing does not require companies to invest in a vast workforce or infrastructure.

Any person with specific digital marketing skills can be quickly done with the help of a computer and internet connection. This marketing field is constantly evolving and has enormous scope in future.

 

What is Network Marketing?

Network marketing is person-to-person sales done by increasing the network of your contacts. Various names like multi-level marketing, referral marketing, and affiliate marketing know it.

Network marketing is done by encouraging the salespeople to sell and creating a further network for sales. The salesperson gets a commission for selling these products.

The sales done by the network created by the salesperson helps them get a further commission. It cannot be termed as a traditional way of marketing in which a company sells the products through a distributor, retailer etc.

Network marketing is done by a few companies primarily selling financial products and services or FMCG (Fast Moving Consumer Goods) products.

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Main Differences Between Digital Marketing and Network Marketing

1. Nature of marketing – Digital marketing is very much adaptive. It can be easily used by small, medium scale or large companies. All companies cannot use network marketing because of the time, effort and business objectives of the company.
2. Online vs Offline – Digital marketing is something which is done online, whereas network marketing is something which is done offline.
3. Workforce – Digital marketing requires a lesser number of staff as compared to network marketing.
4. Push vs Pull marketing – Digital marketing is more of a Pull marketing strategy in which you try to get the customers’ attention. Network marketing is more of a Push marketing strategy in which you try to reach the customers to sell the product.
5. Time and effort – You can expect quick results from your digital marketing efforts. Network marketing takes time to grow. It takes lots of effort from the sales team to grow the business.
6. Human contact – Digital marketing doesn’t necessarily require any human contact. Network marketing is done person-to-person basis, so it requires human contact.
7. Learning – For executing digital marketing activities, the person must learn digital marketing skills. It can be learnt on the job or by joining any training institute. The prerequisite for network marketing is learning about the products/services to be sold and developing a good sales network through your selling skills.
8. Money – You can customize the digital marketing campaign depending on your budget. Network marketing cannot be customized so easily. You must set up a good team of sales professionals to increase the network.
9. Flexibility – There is flexibility in executing a digital marketing campaign. One can change or stop the plan midway if results are not achieved. There are many online tools to monitor the results. It is difficult to change a network marketing plan once it is started. More challenging to stop it completely.
10. Monitoring results – You can monitor the results of your digital marketing campaign at any time and from anywhere if you have a computer/smartphone and an internet connection. You cannot monitor the network marketing campaign so closely.
11. Supply chain – The supply chain of products is essential in network marketing. You need to show and demonstrate the product’s capabilities to the customers to sell it. So for that, you need to have the product in place when you want to show it to customers. There is no so requirement in digital marketing. You can show the product capabilities through online videos, content material, brochures, etc.
12. Support – Digital marketing can support your network marketing strategy. You can use digital mediums like social media, YouTube videos, websites etc., to promote your products. Network marketing cannot help your digital marketing efforts.

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References

1. https://www.ceeol.com/search/article-detail?id=169103
2. https://ajba.um.edu.my/article/download/3478/1499

Last Updated : 11 June, 2023