Digital marketing (sometimes called online marketing or internet marketing) and network marketing (also known as MLM or multi-level marketing) differ greatly, but they also have a certain part in common. This is why their mutual relationship is unclear for many. In this post, I’ll attempt to point out similarities and highlight the key differences between both types of marketing. All to make digital marketing and network marketing terms sound familiar, even for those new to the world of marketing at all.
If you wonder whether having a clear-cut understanding of title phenomena is necessary, just take into account business forecasts. If we add the expected network marketing industry value in 2030 to that of digital marketing, we’ll obtain an unbelievable sum exceeding $1.629 trillion (estimations based on Hostinger’s and Zion Market Research’s data)! Yes, both fields are a true goldmine and a breath of the future that you shouldn’t ignore if you aim to succeed in marketing or business in the upcoming years.
No more intro, let’s get started!
Key takeaways:
- Network marketing relies on person-to-person sales, while digital marketing relies on online channels and digital tools.
- Digital and network marketing differ in terms of their purposes, selling models, audience targeting methods, key digital channels utilized, level of brand control and growth strategies.
- The main limitations of digital marketing are related to high competition, tech-dependency, ad churn, privacy issues, and demanding measurement challenges.
- Network marketing drawbacks include upfront costs, income fluctuations, limited audience reach, market saturation, and stigmatization of distributors.
What is Digital Marketing?
Digital marketing encompasses a broad range of marketing activities that use digital channels and technology to reach and engage consumers. This can include, first of all, online efforts, like social media campaigns, search engine optimization (SEO), landing pages, and email marketing. The main objective of digital marketing is to build brand awareness, drive traffic, and convert leads using digital tools that allow for targeted messaging and real-time analytics. By leveraging digital platforms, companies can more precisely track customer behaviors and preferences to optimize their strategies.
Application examples may encompass a clothing brand running Instagram and Google ads to promote new arrivals (like H&M), a restaurant using SMS notifications to send special offers to loyal customers (like Domino’s Pizza), or a software company utilizing email newsletters to nurture leads with industry insights (e.g., HubSpot)
Note that in a precise dictionary sense, digital marketing also includes offline approaches, such as digital billboards or SMS marketing, but the term is very rarely used in this way.
What is Network Marketing?
Network marketing is a business model where individuals or “distributors” promote products directly to consumers and earn commissions through direct sales or by building a team of other distributors. This approach relies heavily on person-to-person sales and word-of-mouth recommendations, often within the distributor’s network of friends, family, and acquaintances. Unlike traditional retail, network marketing companies don’t advertise in conventional ways; instead, they rely on their network of sellers to drive growth.
Of course, network marketers sometimes also use digital marketing techniques. They can, for example, use social media platforms to expand their reach beyond their immediate network and run email campaigns to keep potential clients and recruits engaged. All such activities can be referred to as digital network marketing.
This model can be seen in industries like health and wellness, beauty, and household goods. For example, a skincare company that rewards distributors for signing up new clients and additional sellers (e.g., Mary Kay), a health supplement business where distributors sell products and earn commissions from their sales team (e.g., Herbalife), or a fitness brand using a network of ambassadors to promote and sell their products (e.g., Beachbody).
6 Key Differences Between Digital Marketing and Network Marketing
Key differences between network and digital marketing evolve around their goals, preferred selling approaches and marketing channels, targeting techniques, level of brand control, and growth strategies. Let’s have a closer look at each of them.
1. Purpose and Approach
Digital marketing primarily aims to reach a wide audience online, driving engagement, traffic, and conversions through digital channels. The focus is on:
- building brand awareness,
- educating potential customers,
- and prompting them to take specific actions (like visiting a website or making a purchase).
Network marketing, on the other hand, centers around personal relationships, leveraging word-of-mouth and personal referrals to generate sales and recruit new members within the distributor’s network.
2. Sales Model
Digital marketing uses various methods to attract customers directly to a brand’s products or services through channels like social media, search engines, and email. This model doesn’t involve intermediaries, as the brand engages directly with consumers.
Network marketing, conversely, relies on a multi-level sales model where distributors sell products to their network, earning commissions from both their own sales and the sales made by their recruits.
3. Marketing Channels
Digital marketing operates across multiple online digital channels (social media marketing, email campaigns, paid ads, etc.). It’s, hence, a diverse approach that reaches audiences in a variety of settings.
Network marketing usually utilizes person-to-person marketing strategies, relying on direct sales, meetings, and personal networks to promote products. The most popular techniques in MLM are:
- one-on-one presentations,
- home parties,
- social media outreach,
- and personalized messaging to individuals (rarer groups).
4. Customer Targeting
Digital marketing uses data-driven targeting, allowing brands to reach specific demographics, interests, or behaviors across digital platforms. It employs tools like SEO, pay-per-click (PPC) advertising, and retargeting to reach users at the right moment.
Network marketing, in contrast, often targets close personal contacts of independent distributors, focusing on trust and familiarity rather than data-based targeting.
5. Brand Control
With digital marketing, companies have direct control over their messaging, branding, and customer engagement across channels. They can craft and adjust campaigns on an ongoing basis to ensure consistent branding.
Network marketing gives distributors more control over how they promote the products, meaning the brand’s message can vary based on individual distributors’ personal approach and style.
6. Growth Strategy
Digital marketing primarily grows through increased brand visibility and engagement, often achieved through content, ads, and SEO. Growth is scaled by increasing ad spend or expanding to new digital platforms.
Network marketing grows by expanding the network of distributors, with each new recruit potentially bringing in more sales and additional recruits, creating a multi-level sales structure.
Digital Marketing vs Network Marketing Examples
We’ve got the theory, so it’s time to see two real examples of digital and network marketing. This should solidify your understanding of both terms.
Digital Marketing Example
Nike’s digital marketing strategy is an exceptional example of brand-driven storytelling and community engagement. Known for its iconic slogan “Just Do It”, Nike uses digital platforms to inspire and connect with its audience, positioning itself as more than just an athletic brand. By leveraging
- social media,
- content marketing,
- and influencer partnerships,
Nike creates campaigns that resonate with diverse audiences globally, encouraging customers to see Nike as a lifestyle brand aligned with motivation and personal achievement.
One of Nike’s key digital marketing strategies is its use of powerful, emotive storytelling in video campaigns. Nike often produces videos that showcase not only professional athletes but also everyday people overcoming obstacles. Campaigns like “Dream Crazy”, featuring figures like Colin Kaepernick, convey messages of perseverance and courage, appealing to customers’ aspirations and values. These videos are shared widely across platforms like YouTube, Instagram, and Twitter, allowing Nike to reach millions of viewers and spark meaningful conversations around social and cultural topics. Just look how brilliantly it is done:
Nike also integrates digital marketing with technology by creating personalized experiences through its apps, such as the Nike Run Club and Nike Training Club. These apps provide customized workout plans, fitness performance tracking, and community challenges, encouraging user engagement and brand loyalty. By offering value beyond just products, Nike’s digital marketing fosters a strong brand connection and creates an ecosystem where users feel a sense of belonging.
Last but not least, Nike utilizes pay-per-click advertising. Read: they pay to be visible in top positions in Google. Here is a top SERP for the phrase “nike shoes colorado”:
Network Marketing Example
One of the most prominent examples of network marketing is Amway, known worldwide for its unique approach to direct selling. Founded in 1959, the company operates through a vast network of independent business owners (IBOs) who sell products directly to consumers. The company offers a wide range of products, including nutrition, beauty, and home care items. Amway’s business model relies heavily on referral marketing and the power of personal networks.
In the Amway model, each IBO not only sells products but also recruits other individuals to join the network. This structure allows IBOs to earn commissions on their sales and a percentage of the sales made by those they recruit, creating a system of multiple income streams.
Amway supports its distributors with training, product information, and marketing resources to help them succeed, which is a crucial factor in the network marketing industry. This recruitment-driven approach helps Amway expand its reach through personal relationships, as IBOs can grow their networks exponentially.
One of the key aspects of Amway’s success in network marketing is its focus on personal development and community. The company emphasizes training and mentorship, offering tools and resources that help IBOs develop skills in sales, leadership, and personal growth. This emphasis on personal development attracts people who are interested not only in earning income but also in building a business that aligns with their values. By fostering a supportive network, Amway creates a sense of loyalty and commitment among its IBOs, which contributes to the company’s longstanding presence in the network marketing world.
What are the Limitations of Digital Marketing?
Major limitations of digital marketing are related to intense competition (and many competitors, too…), tech dependence, current online advertising challenges, some legal issues and success measurement requiring technical skills. Let’s examine each of these points in more detail.
High Competition
The general accessibility of digital marketing has led to a crowded space, making it difficult for smaller brands to stand out. Competing against bigger brands with larger budgets can limit visibility for new entrants to the business.
Dependency on Technology
Digital marketing relies on platforms and tools that can occasionally experience technical issues or downtimes, which can disrupt campaigns. This can cause delays and require quick troubleshooting.
Ad Fatigue from Overexposure
Overexposure to digital ads can cause users to ignore or avoid them, reducing engagement. A large number of users use ad-blocking software, reducing the reach of display ads. Digital ads need to be updated regularly to keep audience interest and effectiveness high.
Privacy Concerns
Data privacy laws and rising consumer awareness mean brands have limited access to user data, making personalized marketing more challenging. Marketers must balance personalization with ethical data practices, which is really a hard nut to crack these days.
Measurement and Attribution Challenges
Tracking digital marketing’s effectiveness can be complex, especially when attributing conversions to specific channels (which allows you for audience segmentation and, finally, crafting more effective strategies). Issues with attribution can make it hard to assess ROI accurately, especially if you do not have some elementary skills in data analysis and interpretation.
What are the Limitations of Network Marketing?
Some essential drawbacks of network marketing are significant initial costs, social stigmatization, a target audience restricted to a personal network, income instability, high market rivalry, and marketing materials being (to some extent) beyond the control of participants.
Upfront Costs for New Distributors
Network marketing often requires new distributors to invest in products or joining fees, which can be a barrier. Many find this initial cost discouraging, especially with uncertain returns.
Fluctuating and Unstable Income
As mentioned above, earnings in network marketing are commission-based, leading to unpredictable income. Many distributors struggle with inconsistent earnings, making it hard to achieve financial stability.
Limited Reach Beyond Personal Networks
Network marketing depends heavily on distributors’ personal networks, which restricts growth. When a distributor’s immediate connections are exhausted, finding new leads becomes more difficult.
Restricted Control over Marketing Materials
Distributors often rely on the parent company’s branding and marketing materials, leaving little room for personalization. This lack of flexibility can feel limiting for those who prefer more creative control.
Challenges with Market Saturation
Network marketing opportunities can sometimes oversaturate local markets, leading to increased competition among distributors. This can make it challenging to find customers in a so crowded space (or it can decrease income per participant).
Stigma and Negative Perceptions
Network marketing can carry a reputation for aggressive sales tactics, making it hard to gain trust. This stigma can discourage potential customers and recruits from engaging with the business.
Grow your Networks and Elevate Digital Marketing with Landingi
Now that you know network and digital marketing strategies, it’s time to get some training. If you’re drawn to the subject, I have a solution for you – just for a good start. In Landingi you can unlock the power of both types of marketing at no cost and in one platform! Sounds promising? Here are a few essential features you may find interesting and/or you can benefit from as a digital or network marketer:
- building awesome landing pages with no code, based on 300+ ready-to-use templates or from scratch (this way you can build your online presence, capture leads, or showcase products to potential customers),
- creating pop-ups and lightboxes, micropages, forms, pages optimized for mobile devices and other digital assets (all of these allow you to engage visitors with interactive elements, boosting conversions and lead capture),
- learning about your target audience with online behavior tracking tools (to gain insights into what your prospects are interested in the most and what they eagerly interact with),
- optimizing your pages with A/B testing tools (to test different messages or offers to discover which communication strategy resonates best with your target customers),
- boosting SEO and content marketing strategy with AI toolkit (to effectively attract organic traffic and increase your brand visibility),
- integrating with 170+ other tools like CRMs, digital advertising apps, selling software or payment gateways (e.g. to manage leads, perform PPC campaigns, or connect with social media marketing channels),
- going global or expanding on a scale with automated multilingual translations, programmatic pages, and Smart Sections (great tools if you intend to give your business more momentum…).
All of this can be a great complement to the direct selling method and efficiently support your offline marketing efforts, especially in areas like lead generation, promoting offers to the target audience, or building credibility. Sign up right now and test Landingi for free!
