Passive Income – Network Marketing
As I wrap up my series on Passive Income it is time to look at Network Marketing, also referred to as MLM (multi level marketing), direct selling and referral marketing. I have left Network Marketing to last as it is where over time it is possible to build a very large passive income.
Understanding Passive Income and Network Marketing
Network Marketing is not going to give you overnight passive income. It takes consistent work and commitment.
If you are prepared to do the work Network Marketing has an additional leverage component coupled with the passive income concept. Not only do you earn a commission from what you personally sell, you also earn a small commission on all the products and services sold by the entire team you have put together and trained.
How do you choose a Network Marketing company?
To build a strong passive income in network marketing you need to find a good company that is going to last. If you are going to have a passive income that continues then you want to be sure the company is going to stay around. I have heard many stories of companies going out of business and the reality is even when we do our due diligence we don’t have crystal balls.
I have always thought it is really important who your sponsor is when you join a Network Marketing company. I have recently learned that sponsors can leave, so maybe it is more about joining a good team. You should make sure there is training available for you and your team and that you will get support.
Other factors to think about include;
- The product – make sure you are aligned with it and that there is a market for it
- If you want to sell online are you able to do this
- Is the company global (if that is important to you)
- How strong financially is the company
- Is it a good compensation plan?
So in summary Network Marketing can be a great way to build your passive income if you are prepared to do the work.
This is the ninth and final post in my series on Passive Income. If you have missed some of the the others you can find them at
- Passive Income
- Passive Income – Property
- Passive Income – Portfolio Investments
- Passive Income – from work you do
- Passive Income – from Affiliate Marketing
- Passive Income on Steroids
- Passive Income – Empower Network
- Passive Income – Banners Broker
Passive Income wrap up
I am sure there are other ways you can build a passive income. Looking at the list above and including Network Marketing I am considering which method, or methods, are truly passive.
When we discuss passive income, residual income and recurring income it is often said it is for work you do once and you continue to get paid. Is that the truth? There is very little that is truly passive.
How Passive is Passive?
We can have someone manage our properties but it eats into the profits and there are still times we need to be involved.
We can invest into Blue Chip stocks and forget about them – would you be content to do that in our current economy? I wouldn’t.
We can create our own products, write a book, sell something with trailing income. In my opinion they all need ongoing marketing or support to maximise the profits.
Affiliate Marketing, EZ Money Method, Empower Network and Banners Brokers need ongoing marketing and or support to build your passive income.
Network Marketing passive incomes usually start to decline when someone walks away and thinks it will sustain itself.
So if it is not really going to be passive income why bother building it?
It is still a whole lot better than trading time for money. So what if you have to do some work to grow and maintain a passive income stream (or better still several streams). There are many people earning six and seven figure passive incomes through these methods. They can choose when they work, they can travel and they have choice.
I think it is very worthwhile to pursue building a passive income. Do you? I would love your feedback on my series and if you enjoyed this post please share it. Are you building your passive income?
P.S. If You Don’t Have a Step-By-Step Blueprint For Generating More Leads, Check This Out (Unless You Already Have Too Many)