Amorphous thin films of NdxCo1−xand NdxFe1−xalloys were prepared over the compositional range 0.08⩽x⩽0.71 by e‐beam evaporation. Magnetization and anisotropy of the samples were studied over a wide temperature range with the aid of a force balance magnetometer, Hall effect measurements, and Mo¨ssbauer spectroscopy. It was found that the magnetization of the alloys could not be accounted for by a completely collinear alignment (ferromagnetic) of the Nd and transition‐metal subnetworks. Mean field analysis of the magnetization data showed a large reduction of the Nd–transition‐metal exchange coupling as compared to their Gd analogs. A model was developed which requires that Nd be dispersed in a cone whose axis is parallel to that of the transition‐metal subnetwork by strong coupling to randomly oriented local crystal field axes. This dispersion reduces the Nd net moment to 77&percent; of its free‐ion moment in NdxCo1−xalloys and to 25&percent; of its free‐ion moment in NdxFe1−xalloys. There is evidence that some dispersion also occurs in the Fe subnetwork. Anisotropy in NdxCo1−xalloys was found to be proportional to the square of the Nd subnetwork magnetization,Ku=CM2Nd.Cwas exponentially dependent on concentration according to the relationC=6 exp(−10x).