What is MLM? – Part 3

What is MLM?

What is MLM? – Part 3

Residual Income (also referred to as Passive Income and Recurring Income) is  my major reason for embracing  MLM (or the Network Marketing Industry).  This is part 3 in my series What is MLM?

In that first post you will find an overview of the industry What is MLM? .  I listed the benefits and am expanding on each of them in this series.

In   What is MLM? – Part 2 you will find more information  about this growing exciting industry and reasons why you should consider becoming a part of it.  You will also find information here in a previous article on Residual Income.

Most people do not understand the concept and importance of residual income. They trade their time for money and immediate gratification.  I explain more in this video.



Robert Kiyosaki’s game CashFlow is the best way I have seen people actually “get” the importance of residual/passive income. In the game it is only when your passive income is greater than your expenses that you can get out of the “rat race” and move on to create real wealth. The thing for most people in life however is that they go for immediate gratification.

Are you building your residual income? Do you see the importance of building it?

Please leave me your comments below. I love hearing what you have to say. And please share What is MLM? – Part 3with your Twitter and FB friends by clicking on the share buttons. I appreciate you telling others.

15 thoughts on “What is MLM? – Part 3

  1. Oliver Tausend

    Hi Sue,

    creating residual income is crucial. It is often frowned upon because people can’t imagine that such a thing really exists.

    When reading Robert Kiyosaki’s books, I realized that it is the same amount of work to create residual income or non-residual income.

    It’s “just” a different mindset that gets in different directions while the amount of blood and sweat was the same.

    MLM is an awesome way to create residual income when and if a few rules are being followed. There are only a few product categories that allow for stable and growing residual income.

    Trouble starts when these suitable product categories don’t fit into people’s self-image because then they have to choose products that are not suitable for MLM such as technology or telecommunication – or information. Then they can never stop recruiting because the profit margin of the original product is too thin. Or they’re rather in a direct sales business than MLM which keeps them busy to meet sales requirements in many cases. Well, would people go on autoship for water filters that cost 2,000 $ ?

    We all know what it means when the bulk of the money is made from recruiting and not from product movement from company to customers.

    Thanks for sharing your insights.

    Take care

    Oliver Tausend recently posted..If Jesus Were A Blogger What Would He Say My Foreword To Joseph Young’s e-BookMy Profile

    1. Sue Post author

      Oliver thanks for your comprehensive comment. You have raised a whole new topic here and some excellent points.
      Maybe that is information you should blog about (if you have not already).

      I often wonder what attracts people to various companies but then I think like anything it is an educational process.

      Thanks for sharing your wisdom.


  2. Linda G. Cox

    An MLM is a win-win situation. Residual income is earned for so many people, on many levels. Those purchasing the products are benefiting from the products, and sharing information with others who enjoy the products as well and receive residual income of their own. I’ve fallen in love with products that are only offered through the MLM platform, many products that are just superior!
    Linda G. Cox recently posted..Gilenya- The First Oral Disease-Modifying TherapyMy Profile

    1. Sue Post author

      Linda you raise a very good point in that some of the best products are only available in MLM. Now I need to add that one to my list of reasons for MLM. Thank you!

      It is a great system and you are right in that fact that it is so win – win.


  3. Don Enck

    As you mentioned there are many ways to create residual income. However for most of us creating it with a Networking marketing company makes the most sense, especially when first starting out. Most people don’t have the capital to invest in Real Estate, they’re not famous musicians yet or that Best Seller is still in a draft format.

    Network Marketing opens the door for everyone to create a residual income. There’s nothing like get notification that you made money while you were sleeping. What seems to be misleading for some though is the idea that it can be easy to do this. It’s often not communicated to people that you will have to roll up your sleeves and go to work in order to reap the benefits of residual income. Network Marketing is a simple business model but it requires work and for some…that’s not easy.
    Don Enck recently posted..Secrets To Creating Engaging VideoMy Profile

    1. Sue Post author

      Don thanks for your comment and words of wisdom.

      I totally agree that many people under estimate the work that is needed to build a Network Marketing Business. I think because many people start it part time they do not give it focus. It is a great model but as you say requires work.

      Take care


  4. Steph Chasen

    Hello Sue.. I have been following these series of post that you have about MLM and I should say it’s really worth the read! Thank you so much for sharing these very valuable information here..

    1. Sue Post author

      Thanks Steph. I appreciate your feedback.

      The more I write and do videos about MLM the more I love it 🙂


  5. Louise Steiner

    Thank you Sue….this is a great series you are creating explaining Network Marketing. As you point out, there are many ways of earning residual income, but the power of duplication that MLM brings to the party is unmatched. You have reached financial freedom once your residual income has reached a level that you can live from this residual income. That is certainly my goal.
    Louise Steiner recently posted..A Brand Awareness Strategy That Pays For Itself!My Profile

    1. Sue Post author

      Hi Louise
      I too have the same goal of living off my residual income. I only wish I could do it as fast as I can do it when I play Cashflow 101 🙂


    1. Sue Post author

      Thanks Andrew I really appreciate your comments.

      I think so many people misunderstand MLM. I know I certainly did in the beginning.


  6. Pingback: What is MLM? – Part 5

  7. Daniel Moors

    Hi Sue, I love all abut MLM and the people who have success behind. Thanks for sharing more about MLM, I do appreciate all of this. Keep on sharing!
    Daniel Moors recently posted..Pet Food BrandsMy Profile

    1. Sue Post author

      Daniel thanks for your feedback. I think MLM has been such a misunderstood model I try to educate on the true value of the model.

      I will keep on sharing 🙂