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Article Title: Internet Marketing Programs-The Truth about Multi-level Marketing
Author: Cat Williams
Category: Business Opportunities, Internet Marketing
Word Count: 436
Keywords: affiliate programs, affiliate marketing, MLM, pyramid schemes
Author's Email Address: [email protected]
Article Source: http://www.articlemarketer.com
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You've probably heard all the talk about multi-level marketing (MLM) cons and 
how they're just a pyramid scam. We've seen article after article about these 
internet marketing programs, and most of them aren't pretty.

Unfortunately, the whole bushel got a bad rap thanks to just a few bad apples. 
The truth is MLM can be one of the best internet marketing programs for a new 
online entrepreneur. We aren't here to recommend any certain one, rather we 
would like to give you a better understanding of what MLMs are.

Understanding the difference between a "pyramid scheme" and a "multi-level 
marketing" company is important. When you come across a pyramid scheme, you 
make money by other people giving you money. In return, you give them nothing. 
No product, no service, no shoelace, or anything else that would normally be 
transferred between two parties. The only people who really make money in 
pyramid schemes are the people at the very top.

In a MLM company, when you recruit people into the company, they become your 
sales force in a way. Because when they make sales, you get a percentage of 
their sale. You are, in effect, building a foundation of sales people under 
you. The more people you recruit who are good sales people and can sell the 
product, the more money you will make through the work of others. Of course, 
you need to work to make your own sales and to recruit other people.

Eventually you will build yourself a strong sales force and reap the rewards. 
This system is built around health and wellness products, the sports world, 
jewelry businesses, and a million other possible internet products out there.

Different companies have different compensation plans in MLMs.
We won't go into detail here but the most common types are the Unilevel plan 
which is considered the simplest form of compensation plan), the Stairstep 
Breakaway plan which has representatives who are responsible for both personal 
and group sales volumes, the Matrix plan which is similar to a Uni-Level plan 
except there is also a limited number of representatives who can be placed on 
the first level, the Binary plans which allows distributors to have only two 
front-line distributors, and Hybrid plans are a combination of more than one 
type of compensation plan.

Now keep in mind there have been companies that have gone belly-up, cheated 
their people out of sales percentages, or pyramid schemes that portray 
themselves as MLM businesses. But by doing your research before joining a MLM 
company, you will protect yourself against bad schemes and unscrupulous 
companies. And you could make yourself a very nice living in the long run.

Cat Williams is an internet marketer and freelance writer who provides valuable 
information on internet marketing programs. To learn more, go to her website 
at: http://www.internetmarketingfornewbiesreview.com/.
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