For those of you who are new to the internet, or at least to the concept of making money on the internet, you will find that network marketing on the internet is not necessarily the same as what you may think from personal knowledge. Although it may involve the concept of recruiting new people to join your business network (network-based), it can also involve becoming an affiliate member of an established network (affiliate-based).

The key word here is "internet" marketing, thus meaning that the business you work with will be promoted and built using the power and global reach of the internet. As you know, the internet is the biggest source of advertising that exists in the 21st century. Business owners who take advantage of all of its advertising potential soon begin living a comfortable lifestyle.

For many people, the internet has made the difference between being self-sufficient or depending upon others for income. Many people unable to work a regular job due to family obligations or health issues are now able to contribute to the family income because of the abundance of home based internet business opportunities.

As mentioned earlier, network marketing on the internet can be either network-based, affiliate-based, or a combination of the two. If the business is network-based, you need to recruit new people to come into the network, becoming part of your downline. Some of the internet organizations actually do the placements for you so that you don't have to do any actual recruiting. Your income comes from a portion of the sales generated by you and your downline. The best part about network marketing is the residual income you can generate over time - income that keeps coming even after your business building efforts have stopped.

With an affiliate-based program, you have a website with the products you are promoting for the organization with which you are affiliated. You receive either a flat fee or percentage for every sale that you generate from your website. This is more like having a normal job - if you stop working and making sales, your income stops.

When you choose an affiliation, be careful that you know exactly what you can expect, and if it sounds too good to be true, it probably is.

It's important to be able to distinguish the scams from the real programs, and the best way to do that is in the way they advertise. The easiest way to notice a scam is if there is a fee to join. That should automatically send up a red flag because most reputable affiliate programs do not charge any fees to get started.

Both network marketing and affiliate marketing are very realistic options for you to begin building an internet based home business. Doing both is a good idea as the affiliate marketing business has the potential of providing immediate income, while the network marketing business you choose will eventually provide long term residual income for you and your family.