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The confusion between affiliate marketing and network marketing or multi-level marketing is quite interesting. Some people even think affiliate marketing business and network marketing businesses are scams. While others think they are one and the same with different names. In this article, we will discuss and look at the definitions, distinctions and some misconceptions. At the end of this article, we should have been able to provide some clarity.What is Affiliate Marketing?Affiliate marketing is a performance-based marketing system in which a business rewards a person(s) or affiliate(s) for each visitor or customer brought by the person’s own marketing efforts.What is Network Marketing?Network Marketing is totally different. Here the marketer becomes associated with a certain product that they like or believe in, which they then buy from their supplier and resell to the public at a profit. Before the marketer starts selling products of a larger company, he/she signs some paper work which gives him/her a small franchise of the large business.Differences between Affiliate Marketing and Network Marketing.In affiliate marketing, affiliates are not selling any product directly. They are simply the mouthpiece, or the advertising board that tells people where to go and buy products. You will not have to purchase anything, but you will still make money just for telling people where to go get a product. Affiliates get a commission when the person that they refer to a website buys something, so in this way the company is paying for a good lead and they will be paid generously.In network marketing, the foundation is in growing a team. You can start with one person (also known as a down-line) who then introduces the next person and that person introduces another and the chain goes on and on. The beauty of network marketing is that it is a game of numbers. The more individual down lines you have under you, the bigger your team, the more money you make.Another difference is that in affiliate marketing, commissions are paid usually on single level depending on business laws in different countries.In network marketing, commissions are paid on infinite levels of down lines. The “deeper” you build the closer you are to residual income.Which brings in More Money?Depending on your business goals, affiliate marketing can make you a decent fortune in a few years if can get a good number of customers to buy your affiliate company’s products.While Network marketing can generate an income more than you can comprehend if you consistently work hard at it. If you happen to belong to the top 10 network marketing business that are structured, a good one should have a rare provision in their company policy like making the business will-able. So you work the business and after you stop working it, you can hand it over to the next person. And that person does not start from scratch but continues from where you stopped. A recommendation of one of such companies can be found at the end of this article.What Affiliate Marketing and Network Marketing Are Not.Whether you decide to do affiliate marketing or network marketing, once you have a good understanding of each, you will be sure that:1. It is not a pyramid scheme.2. It is not a “get rich quick” business.3. It is not for non business minded people.4. It’s not for those that want a “nice-play-thing” kind of business.5. It is not a one man’s show. It needs people with common business goals to thrive.

Compounding pharmacies work to create pharmaceutical products which are specifically designed to fit the unique needs of each patient. They specialise in preparing and dispensing bespoke pharmaceutical products to patients who cannot or do not want to (for whatever reason) take standard, mass produced medication. Many consumers are turning to these pharmacies because they have previously had problems with standard prescription drugs.Because the compounded prescription medications that they sell are different from those that are already available on the rest of the market, some consumers may be worried about whether or not using a compounding pharmacy is safe. However, the US Food and Drug Administration (FDA) have stated that compounding is perfectly legal and ethical so long as the pharmacy is fully licensed and the pharmacist who carried out the compounding is also fully trained and licensed.Because of the potential health implications associated with all medicinal drugs, compounding pharmaceuticals is a heavily regulated business, and the FDA and individual state boards of pharmacy have introduced strict guidelines to help ensure that customers and patients using these compounding pharmacies should remain safe. All bulk drug substances that are used in these types of pharmacies should be on an approved-list of substances that it is legal and safe to compound with. Any previously marketed substances which have been proven to be ineffective or unsafe do not make the approved-list of substances suitable for compounding. Pharmacists are not supposed to compound with any substance that is not on the approved-list. Although many states do not require practices to report any newly discovered side-effects associated with compounded drugs, ethical pharmacies will voluntarily report them.The compounding pharmacy itself is also subject to strict guidelines, as well as the substances that they compound with. The pharmacy must meet high quality control standards and each individual laboratory must meet strict facility guidelines, to ensure safety and consistency in each batch of drugs produced. Pharmacies in America are regulated by individual “state boards of pharmacy”, and therefore each state has slightly different sets of regulations. It is possible to check with the board of pharmacy in your state if you are still unsure. Inspectors from the state board will carry out regular checks on licensed pharmacies and random sampling checks may be carried out on batches of drugs that are being dispensed to check the safety and potency.Pharmacists who practice in compounding pharmacies are heavily regulated as well. They must be fully trained and licensed in order to dispense medicine that they have compounded, so that they are able to fully understand the drugs that they are making.If you still have doubts, you can contact your chosen pharmacy and they will be able to explain the standards, testing and quality control exercises that are used by their practice in order to ensure the safety of their customers. If you are in any doubt, you do not have to use that pharmacy. Remember that it is the interest of pharmacies to ensure that their products are safe, legal, ethical and effective.

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?