There are a lot of different ways that home based entrepreneurs can earn an income online ranging from selling tangible products to digital information. Affiliate and network marketing (also know as multilevel marketing) are two of the most popular choices for those seeking to earn a living from the internet. Both forms of merchandising are great for young and old entrepreneurs alike because you do not need a whole lot of skills or experience to get started with either one. Although either form of merchandising offers a great way to make a living on the internet, you should consider the differences between the two before arriving at a decision on which you would like to follow up on.

Network marketing by definition requires building up a down line of other sellers who earn you money from the additional members you recruited and from the products they sold. Having a down line is really great because it allows you to earn passive income, money that you don't have to work for to receive. Some of these programs requires fees to join them. The fees can often times be very excessive and the company will usually try to up sell you into buying additional products like training materials and samples. These materials are design to help you promote their products or services.

On the other hand the vast majority of affiliate programs do not have a down line feature built in making it a little bit more difficult to earn passive income. However, some do offer additional layers of commission for products sold through sub-affiliates you recruited. But these programs are not as comprehensive as the down lines you can create with network marketing. In contrast, joining an affiliate program is usually free. This means that they are open to anyone who wants to make money who don't have a whole lot of fund to start with. In addition, if your business ventures don't work, you will not be out a small fortune in membership fees.

Regrettably, multilevel marketing programs are notorious for fly-by-night business operators who take peoples money and never to be heard from again. While legitimate network businesses really do exist and can even be great sources of income, the vast majority are not legitimate.

Affiliate programs generally are legitimate and they will pay you what you earn. The difference between the two is that affiliate marketing involves much more work like advertising and promotion for examples than network marketing. You can make a truly fantastic living with either one or both of these merchandising programs provided you are willing to put the work into it.

In the end, whether you decide to pursue affiliate marketing or network marketing depends on what kinds of risks you are willing to take and how much work you are willing to do. Promoting other businesses products or services may sound attractive but in reality it can do you more harm than good and you'll likely end up with a thinner bank account.