MLM Network marketing is not Affiliate marketing--Just the Facts.

MLM is acronym for Multiple Level Marketing or now commonly called Network Marketing.  MLM has gotten a very bad name due to its very nature.  It incorporates the marketer to purchase a company's products by an automatic renewal program, focuses mostly on signing up users rather than actual sales, and the exploitation of personal relationships.  MLM or referral marketing will allow you to lose or diminish a personal relationship in a fast and expedient manner.  By soliciting you peer groups or local communities for membership in the programs the marketer makes money off of their recruit's high initial sign up costs and creates a down line.  A down line is the number of individuals below the marketer that feed income to the top members by the sign ups for the auto renewals.

Beware of these types of online money making opportunities because of the high risk involved.  Risk of losing valuable community relationships, risk of losing money faster than ability to generate from lack of down line creation by auto renewal products, and time invested that could otherwise be allocated to more fruitful marketing efforts.

MLM is a form of direct selling that creates high incomes for the top most level members and is reminiscent of Avon or Tupperware type of direct selling from an previous era of direct selling.  although direct selling in those days was not as similar to Ponzi Schemes like today.  Avon and Tupperware are reputable companies who do not prey on their down lines like some of the newer age Systems or companies.  They do incorporate direct selling as a major means of sales and bring quality products to their customers.

That being said, NOT all MLM are legitimate businesses.  Some are actual Ponzi Schemes with no products for the auto renewal, and prey on the values and hardships of the limited income households.  The FTC Federal Trade Commission, disregards most MLM as business opportunities all together if they do not provide enough information for the individual to make an informed decision.

The FTC also advises that MLM companies with significant motivations and incentives for recruiting over product sales should be highly scrutinized and skeptically approached. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states.

So when making business venture out into the reaches of the internet look for opportunities that focus on individual sales, personal growth, and education for the marketer in the business and also forums and communities with actual people to talk to rather than recordings or lacking community involvement.  Becoming an affiliate marketer is not network marketing for the reason that you promote products by reputable outlets or vendors and no auto renewal or required purchases. Beginners and intermediates can look into places like Clickbank, Amazon, JVzoo, Offervault for opportunities in affiliate marketing and feel secure in the review process of acceptance into programs and affiliate networks.  The vendors should be getting to know the marketer before accepting them in the program as an affiliate and creating a reputable relationship between one another.