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.
Business Capital Solutions In Canada: Accessing Proper Cash Flow & Commercial Financing
Business capital requirements in Canada often boil down to some basic truths the business owner/financial mgr/entrepreneur needs to address when it comes to financing for businesses.
One of those truths? Knowing the true state of their financial condition and what financing they do and don’t qualify for when it comes to meeting commercial lending requirements in Canadian business.
Business Loans In Canada
Whether you are smaller or start-up firm looking for information on how to get a business loan or a larger established firm looking for growth financing or acquisition opportunities we’re highlighting 3 mistakes that commercial loan seekers like your company need to avoid making when addressing, sourcing and negotiating your cash flow / working capital and commercial financing needs.
1. Understand the true condition of your company finances – These are almost always successful addressed when you spend time on your financials and understand how your financial statements reflect your access to commercial loans & business credit in general
2. Ensure you have a plan in place for sales growth and financial needs as it relates to commercial financing
3. Understand that actual hard facts about cash flow which is, of course, the lifeblood of your company
Can you honestly answer or feel positive about all those 3 points. If so, pass Go and collect $ 100.00!
A good way to address your company’s finance plans is to ensure you understand growth finance solutions, as well as how to manage in a downturn – i.e. not growing, losing money, etc; It’s never fun to fund yourself in an economic or industry downturn such as the COVID pandemic of 2020!
When we talk to clients of new or established businesses it seems they are almost always talking about sales, so the ability to understand and focus on the differences in their profits and cash fluctuations is key.
How do cash flow and sales plans and projections affect the type of financing you require? For one thing sales growth usually starts out by consuming your cash, not generating it. A poor finance plan will drag your business down and addressing financing simply gets tougher and tougher.
Three basics always emerge when it comes to your search for the right business capital and financing.
1. The amount of financing you need
2. The type of financing (debt/cash flow/asset monetization) The business loan interest rate will be dramatically affected by whether you choose traditional or alternative financing solutions. Private business loans in Canada come from non regulated commercial finance companies most often known as ‘ alternative lenders ‘. These lenders are typically highly specialized in one ‘ niche ‘ of business financing and may be Canadian firms or branches of U.S. banks and non-bank lenders
3. How the financing is structured to be manageable with your day to day operations
What Finance Company In Canada Can Meet Your Borrowing Needs & Why Is Capital Important In Business
Let’s identify and break down key financings your firm should know about and understand if they are applicable and achievable to your business. They include:
A/R Financing / Factoring / Confidential Receivable Finance
Inventory finance / floor planning / retail inventory
Working Capital term loans
Unsecured cash flow loans
Merchant working capital loans/advances – these loans are geared toward short term cash needs and are typically one year in duration. Loan amounts are typically 15-20% of your annual sales revenues.
Royalty finance
Asset based non bank business lines of credit
Tax credit financing (SR&ED bridge loans)
Equipment Leasing / Sale leasebacks – Equipment financing in Canada is used by almost 80% of all companies looking to acquire new, and used, assets.
Govt Guaranteed Small Business Loan program – Government Loans in Canada are sometimes referred to as ‘ SBL’, aka Note: BDC Finance solutions are available from this Canadian non-bricks and morter crown corporation. A small business loan via the government-guaranteed loan program comes with true flexibility around term loan duration, market rates, no pre payment penalties, and of course the low personal guarantee that is required by borrowers. These two ‘ government ‘ loan solutions are often perfect for financing a new business.
If you’re focused on not making mistakes in your business finance needs and want to capitalize on the solutions your competitors are probably already using seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and commercial financing needs.
Stan has had a successful career with some of the world’s largest and most successful corporations.
His employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) In 2004 Stan founded 7 PARK AVENUE FINANCIAL – He is an expert in Canadian Business Financing.
Quality Specialty Tea and E-Commerce
There is no question that quality loose leaf tea is better tasting and offers more flavors and varieties that bagged tea. But quality loose leaf tea has another feature that appeals to tea drinkers and that is ease of ordering on the internet.Internet shopping or e-commerce as it is often called offers variety, lower cost and convenience and now, with the security safeguards offered by security providers like Verisign and others, e-commerce is absolutely safe.Over the years, e-commerce sites have become easier and easier to use and now orders can be placed quickly and easily. In addition, many e-commerce sites offer a variety of low cost shipping choices that can arrange delivery to the customer’s home, place of work or other locations.Prices are low with e-commerce shopping because the human element is removed and often the consumer can make a purchase without paying annoying and costly sales tax.Loose leaf specialty tea is a particularly attractive product for e-commerce. There are a wide variety of tea choices that can be included on the tea e-commerce site and, in addition to tea products, many suppliers offer high quality accessories.E-commerce sites can also provide value added information that the consumer needs ranging from in depth articles about tea and the history of tea to caffeine levels and compatible menu choice that enhance the tea experience. Some sites even provide for customer feedback that allow the consumer the ability to rate the product and service.Some e-commerce suppliers make ordering and trying the tea even easier by offering packaging that includes sampler packages (avoids the high cost of trying new flavors and blends), attractive tea tins, and ½ lb and 1 pound packages for bulk buyers. Of course, as the quantity of tea increases in each package, the unit cost of the product decreases.Loose leaf tea is also easy to ship and store and has a long shelf life so in these days of rising fuel prices, the cost impact of shipping becomes minimized.Some tea e-commerce sites are particularly good at promoting their products on the market by creating links and providing rich content that is used by search engines that list the sites. This type of promotion is definitely value added in that only new, fresh content about tea is rated by the search engines. In addition, those sites with relevant content links are counted by the major search engines.In the end, however, it is the quality of the product and service that create customer satisfaction. If the product is low in quality or the service of ordering and shipping is substandard, aggressive promotion will not create business in the long run. Successful specialty tea e-commerce sites offer the highest quality products combined with the most efficient, customer oriented service.When buying specialty tea through an e-commerce site always look for quality tea products from a site with a reputation for customer service and satisfaction.