Passive Income – Network Marketing

Passive Income – Network Marketing

Passive IncomeAs 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 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?






Sue Price
Skype: sueprice

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30 thoughts on “Passive Income – Network Marketing

  1. Carol Minarcik

    Hello Sue,
    You just wrote on my favorite subject…Network Marketing. I have been a networker for 20 years and I simply love it….Nothing better!

    You described it very well and I think anyone looking for an extra income surely should check out all their options.

    Hope you have a wonderful day.
    Carol Minarcik recently posted..Money Refunds Update for Zeek RewardsMy Profile

    1. Sue Price Post author

      Hi Carol

      Wow you are a veteran to Network Marketing 🙂 I wish I had embrased it when I first saw the model. I just did not “get it” then.

      I do believe it has the potential to give people much greater income than most of the other methods if they stick with it.

      Thanks for your comment and enjoy your weekend.


  2. Gen

    Sue I love what you stated about passive income at the end. And no income is really sit back and do nothing. You always have to know how best to leverage your time and money to build the income and lifestyle that you want. Thank you for such a wonderful series I have enjoyed it so very much. =D
    Gen recently posted..The Power Of a DecisionMy Profile

    1. Sue Price Post author

      Hi Gen

      Thanks for sticking with me for this series. I have enjoyed writing it as it made me really think about the best options for me 🙂

      I think it is important people do not see passive as they do not have to do anything. But what needs to be done I think sure beats many other alternatives. Hey but you know that.

      Hope you are having a nice weekend.


  3. Viola Tam

    Hi Sue,

    Excellent and balanced view points about many different ways of earning passive income! I particualrly like what you talked about ‘How Passive is Passive?”. Some people may doubt the value of building a network marketing organization when the compnay itself can collapse. This is a valid point!

    Hence, it is crucial to build on ROCK. Choose wisely which company to join. Definitely, we need premier products that is in high demand and are reasonably priced. I could not agree more with you about finding a good team – for excellent success blueprint, mentorship and team support!

    Reaching the top by solo effort is a like carrying out Mission Impossible! Network Marketing is about developing great people skills and exceptional leaders. Do that, success is just a matter of time!

    Thanks, Sue, for your valuable insights!

    Viola Tam recently posted..MLM Success on Solid FoundationMy Profile

    1. Sue Price Post author

      Hi Viola

      You have added some very valid points here but of course it is the area you work in and love. Build on rock is great advice.

      I think it is really important for people to understand they will need to run their business as it grows. When I started with my first Network Marketing company I kept hearing that idea of “just get two who get two and that is all you have to do”. If only everyone duplicated perfectly 🙂

      I think Network Marketing is such a good model as it gives people from all walks of life the chance of success. It really levels the playing field.

      Thank you Viola for you feedback.

      I trust you are having a nice weekend.


  4. Louise

    Hi Sue. I have loved your passive income series and I am curious to find out what your next subject matter will be 🙂
    I think you make a very valid point in that even passive income requires some management and that if you walk away from it, the level of income is likely to decline over time. The beauty of passive income though is that it builds over time, unlike earned income where we are at the mercy of our employer for a pay rise. Thank you again for sharing.
    Louise recently posted..How To Increase Traffic To Your Blog With Blog Commenting – Part 2My Profile

    1. Sue Price Post author

      Hi Louise

      Thanks for your feedback on my passive income series. I have really enjoyed writing this one. Now I am curious to know what my next topic will be as well 🙂
      I have a couple of one offs I will do while I get inspired 🙂

      I agree with you that passive income does build over time and certainly your income from your employer has no guarantee. Also when you leave your employer the income stops immediately. Even if you do not work much to maintain passive income it gradually declines.

      Hope you have had a nice weekend Louise. I think Victoria is one of the only states without a holiday this weekend.


  5. Sylviane Nuccio

    Hi Sue,

    I appreciate the fact that you are telling your readers right away that you can’t make money over night with network marketing and that it takes work.

    You definitely have to be very involved to make money with network marketing,and have a taste for helping people will also be very beneficial. Some people have made a fortune with this model, but they sure did what it took.

    Thank you for your series.
    Sylviane Nuccio recently posted..Is Your Blog Content Mediocre At Best And How Can You Tell?My Profile

    1. Sue Price Post author

      Hi Sylviane

      I think people who go into Network Marketing should know it takes work. I think some of the bad reputation it has had is because too many people have seen it as a get rich quick thing. Clearly it is not.

      I agree you have to be very involved to make good money in Network Marketing. I think the upside is as you say there are fortunes that can be made.

      Thanks for your comment Sylviane.


  6. Adrienne

    What a great ending to this series Sue and to end it all with network marketing. An industry that get’s the tar beat out of it a lot of times.

    I think that’s the issue though with people not understanding how this all works and that you aren’t going to be filthy right your first month. Just like you described throughout this entire series that yes, it can be passive income but you have to work up to making it so. A little hard work never killed anyone though, look at all the rewards from those efforts.

    Great job with this explanation Sue and I did enjoy this series along with your others. You’ve explained them all so well.

    See you tomorrow.

    Adrienne recently posted..How To Become A Better Blogger – A Bloggers RoadmapMy Profile

    1. Sue Price Post author

      Hi Adrienne

      I agree with you that Network Marketing is not really understood by many people. I have come to the conclusion that it is some people in it that have contributed to it’s reputation.

      You are spot on a little hard work never hurt anyone so I am not sure how this whole idea of becoming rich overnight with little effort started. I know numerous very wealthy people and I know they all worked their butts off for it at least for some time.

      Thanks for your feedback on the series. I have enjoyed writing it.

      Yes see you tomorrow. I am looking forward to being on a team with you where we actually get to see each other 🙂


  7. Carol Lynn

    Wow, you said the most important thing of all here: at some point, you have to stop trading time for money. Otherwise you’re just going to keep working hour to hour and you’ll never get past the ceiling of hours to work in a day.

    Nothing is truly “passive”. Money isn’t going to fall out of the sky on top of you. But if you can take advantage of the “create once, sell over and over” motif, you can have the passive effect and save a lot of time.
    Carol Lynn recently posted..A Tale Of Two Managers: How A Customer Service Fail Turned Into A Customer Satisfaction WinMy Profile

    1. Sue Price Post author

      Hi Carol

      The trading time for money thing took me ages to get. I was a CPA and we charge for our hours. It took me so long to give that up and I get it is difficult for most people. It is security! But it does not create wealth as yes there is a ceiling to how many hours we can work. I gave it a good nudge and almost worked myself into an early grave like many others do.

      I love what you have said here “money isn’t going to fall out of the sky on top of you” – I can see it raining money 🙂

      Thanks for your comment Carol. Have a great week.


      1. Radu

        I totally salute your phrase ” money won’t fall out of the sky”. I worked for each of my penny but this is getting a bit redundant. I have to re-think my strategy if i want to get some passive income.

        1. Sue Price Post author

          Hi Radu

          I think there comes a time for many of us where we realise we need to do things differently. All the best with coming up with a strategy to get yourself some passive income.

          Thanks for your comment.


    1. Sue Price Post author

      Hi Becca

      Passive income does take work in the beginning and time but it is worth it.

      Thanks for your comment.


  8. Barry Wells

    Hi Sue,

    I haven’t read any of your series but will make a point of doing so and collecting all the tips I can.

    As with any work we apply ourselves to, if we want to make it work for us we have to put the work in, there’s no easy ride in business.

    I’ve never tried any form of network marketing but do take on what you said about finding a good company that’s going to last, especially in today’s climate. I used to sell books to schools and offices and set the whole business up around one supplier who, I found out later, rarely changed their stock. It was all good on the face of it but once I was up and running I needed different items or I had to find different clients.

    It pays to research who we’re dealing with in-depth before thinking we can run. As I said I’ve never tried network marketing but the basic fundamentals are the same for starting any business when we’re trying to sell something.

    Thanks Sue, I look forward to catching up on the series 🙂

    Take care, Barry
    Barry Wells recently posted..Bloggers Roadmap: My ReviewMy Profile

    1. Sue Price Post author

      Hi Barry

      Thanks for dropping by and do check out the other posts in this series when you have some time.

      Wow I think you are the first person I have met online that has never done Network Marketing at some stage 🙂

      Your experience selling books to schools and offices around one supplier is a familiar story to me too. We had a similar experience in an offline business where we were selling for one supplier. In our case the supplier went into liquidation and we were not in a good position.

      I have got to a stage now where not only do I believe we need to research whoever we are selling for but also that I want multiple streams of income.

      Hope your health is still on the mend Barry.


  9. Steve Jones

    Hi Sue,

    Some great information in here. Network marketing should be a long term strategy and the rewards are there for lots of people to enjoy in the right way. I like your honesty and you obviously really know your stuff.

    1. Sue Price Post author

      Hi Steve

      Thanks for your feedback I appreciate it. Yes Network Marketing is a long term strategy.


    1. Sue Price Post author

      Hi Barbara

      Thanks for the feedback on the series. I loved writing it and yes I saved the best topic to last 🙂

      Nice to see you today. Hope you have a week with less stress.


  10. Becca

    Network marketing although it’s a very simple business, only the tough need apply. Successful people in network marketing tend to be successful people tough inside and out and in life overall.

    1. Sue Price Post author

      Hi Becca

      It depends what you mean by “tough”. If you mean determined and people that will keep going in adversity I agree with you.

      Thanks for your comment.


  11. Property Management Minnesota

    Networking is not a right away money for me. It may be a long term and needs hardworking people to build the foundation. This is a great post Sue, as you discussed and well said the points in marketing and passive income. Thanks!

    1. Sue Price Post author

      Hi James

      I do not think Network Marketing is a quick money earner for many people. Sadly it is why so many people quit as they are not prepared to hang in and do the work. I think it can be the best source of passive income.

      Thanks for your comment


    1. Sue Price Post author

      Hi Julia

      I enjoyed writing the series on passive income. I am with you that I also think that the most effective ways are property and network marketing. For anyone with little starting capital then network marketing makes sense to start. Then as the income builds up it gives the ability to also move into property.

      Thanks for your comment Julia.

      Sue Price recently posted..Habits to Support Your Ideal LifeMy Profile