What happened to Income being Passive

Discussion in 'Network/Multi-level Marketing' started by NetMecca, Jun 4, 2013.

  1. NetMecca

    NetMecca Member

    You know the passive income buzz phrase is all over the net and especially in MLM. I have to wonder about it though. It seems to me that passive income is a myth for most of us, turning us all into slaves. Kinda funny when you think about how hard we all are working to get passive income, that never comes lol.... Seems a bit of a contradiction...

    Anyway, when considering if an opportunity is really a source of passive income, ask youself how much work you really have to put in. The more you have to put in the less it becomes passive income. That's what I think anyway.

    payment proof likes this.
  2. MarieA73

    MarieA73 Member

    Passive income, I believe, is really bonds or something that pays a set interest rate, fixed income investments. MLM is hardly passive, though it can provide residual income.
  3. Nizam Balram

    Nizam Balram New Member

    I never believed in passive income until I started to change my mindset about how to look at making money online. I've started this really really powerful training with Vick Strizheus. Research his name if you do not know who he is. He is the king of traffic. The reality is that to be able to build any business that provide you with the potential to earn a passive income is to have a vehicle that will allow to earn passively then to have the knowledge to drive traffic to that opportunity.
  4. payment proof

    payment proof Well-Known Member

    Most income I've made online has involved work. Some things like AdSense have brought in passive income. But for the most part, I have found you need to put in some work to really earn online.
    thirty6cash likes this.
  5. Bill Brine

    Bill Brine New Member

    Passive Income to me is income derived from some work you did once, and then it just keeps generating income over and over even if you never look at it again. I don't consider MLMs to fit in this category, since for an MLM business you always have to be working with your teams, motivating your teams, prospecting for new distributors, and putting other kinds of effort of work to build your business. MLMs are residual income - a cut of the income others are generating by you working with them.

    In the early days of Adsense, passive income was easy. Now with Google getting more and more insistent on ever-changing unique, quality and relevant content, it is much more difficult.

    The buzz right now on the internet for passive income is publishing Kindle books. It an interesting field which I am currently investigating. It is passive in the sense that each book you create requires no further effort or minimal effort, since Amazon does all the promotion for you. So each of the assets (books) you create continues to work for you once you create it.
    Dirul, kimboathome and MarieA73 like this.
  6. talfighel

    talfighel Silver Member

    The fact of the matter is that you need to have a few people who you personally sponsored become leaders themselves and when they go out and build a large team on their own, your income will grow each and every month.

    I am referring to your passive income.

    Thinking otherwise will keep you frustrated for a long time.

    You do the work once (build a few large teams under you) and your income will just grow and grow and grow.

    CRIPLEY Member

    It does take an effort but like minded people are out there. You just need to find them and help them. Then the passive aspect fall into play.
  8. FreeCashMan

    FreeCashMan Well-Known Member

    As Eric Worre put it "MLM is Better!" Passive Income does happen in mlm but it comes from work that many just don't stay the course in the "right" business to see the result.

    Even thought I may be working still because I'm looking to increase my monthly residual, its passive when you look in your back office and see people being added and dollars increasing on autopilot if you did anything that day, that week, that month or even that year or not.

    It's real folks but it may not happen your 1st, 2nd or 3rd go round, but stay on the "merry go round" and don't get off until you have some passive income flowing. Get a little going and it can turn in to a lot more but don't disregard making a few hundred. If you look at it that amounts to a 10%+ raise in many people's income...MONTHLY!
  9. MarieA73

    MarieA73 Member

    There is nothing quite like the feeling of going shopping, coming home, checking your email, and realizing you just earned more than you spent while shopping - very gratifying. But as many have said, to call it "passive" in MLM is probably a misnomer. "Residual" works better - the continuous pay for work already done.

    YAGOOFT Active Member


    Passive in my opinion refers to income for which you do not have to refer or market to others to earn. Residual income is income for which you worked to build, and then it keeps coming in regardless of your continued efforts referring or marketing to others. It is very rare to find a passive income opportunity short of investments, but there are a few I have researched.

    Success to all,
    MarieA73 likes this.
  11. robinincarolina

    robinincarolina Silver Member

    I am creating passive income with a paid members area of my forum which really seems to be taking off pretty well. Right now it's only about $150.00 per month, but it grows a bit everyday. It's not my only source of income though, but I am thinking in 5 years, it's going to be a nice little lump.
    MarieA73 likes this.
  12. MarieA73

    MarieA73 Member

    That's great. Robin! Remember, it's not what you make, it's what you keep!
    robinincarolina likes this.
  13. alex richardson

    alex richardson New Member

    Passive income is the holy grail of internet marketing!
    It is something that is very hard to get right and essentially there is only one way of achieving it and that is to recruit an army of affiliates under you.

    What you also have to remember is that passive income isnt for everyone, me personally, I like to be in control of everything I can so I enjoy working everyday - I guess it helps that I work from home for myself hahaha.
  14. annadenise

    annadenise Active Member

    The proper term with MLM is residual income. Calling it passive income can create legal issues because these are not companies licensed to sell securities like stocks, bonds, mutual funds, etc.

    To keep residual income at a level that will not drop does require some work. People in your affiliate and/or customer base may drop out of your business over time, or have financial or personal health issues where they cannot participate as much. An ex. is my mother. She was a customer and loved several products from my company. However she is now in a nursing home and is not capable of remembering what to take, etc. In those environments unless I could bring things to her daily, which I cannot, they do not permit you to keep these items in your room.

    To increase or maintain your residual income, depending on the company you are involved in, it can be as simple as purchasing buying rights to commissions on customers, which is also tax deductible in the USA. This is something that is easy, but you do need funds to purchase the lifetime buying rights to customers purchases. However, most companies would require you to either recruit more affiliates and/or customers to keep your residual income at a desired level OR work with your current affiliates and help them grow their business with helpful suggestions and advise. If you have a fairly big base of affiliates, in my opinion, it is preferable to lead them and help them earn more, which then helps you earn more.
    MarieA73 likes this.

    YAGOOFT Active Member


    Passive income is a term that is often used in the investment arena, so you are correct, it can be misused, but never the less, it is possible to create a passive income in the MLM industry. I've been receiving checks from several companies for years which I no longer actively promote, one is over 20 years old although it has gone through several transitions and owners, I still get paid. This is passive income, is it not?

    My focus has always been to create a multiple income streams, at least a dozen such programs where you jump start them and then they become perpetural income generators, hopefully for as long as my 20 year example. With so many business opportunities to choose from, and just as many which do not produce the results we hope for, you just have to keep on mining new programs and test them to evaluate your results.

    The latest one I am evaluating is based on a 17 year old successful business which is just going with new Network Marketing division, and this could be the best of all passive income strategies. I have seen it all, even created a few affiliate programs over the years, and this one could dwarf all the others. Not yet available internationally, but soon all legal issues will be in place to insure there are no issues with regards to passive income option. We all know what happened with these past passive income programs like JBP, Zeek, just to name a couple of most recent flops.

    Good luck,
    robinincarolina likes this.
  16. mbasa

    mbasa Member

    I believe that if you put in the hard work initially, your efforts will turn into passive income in the future. I guess we have to put the term into its particular context in this case. You gave us food for thought though.
    robinincarolina likes this.
  17. robinincarolina

    robinincarolina Silver Member

    Yes, I also have affiliates that market my own product. It amazes me the people that create a product and attempt to market it all by themselves. Affiliates are the bomb, especially if you give them good tools.
  18. ScottCofer

    ScottCofer Member

    The key is to stay in the game long enough to sponsor enough people. Too many people give up after sponsoring just a handful of people!

    On average, you need to sponsor about 10-20 people to find 1 rock solid leader. So then, if you plan long-term on sponsoring about 100 people, you'll end up with 5-10 personally sponsored leaders in your business. THEY are the key to your passive income.

    In addition, that is what I like about internet-based opportunities. Once you have your lead generation system setup and working well, it makes it much easier to sponsor people on a regular basis.
  19. Fabulousmiranda

    Fabulousmiranda New Member

    In order for anything to become passive you have to be willing to put in the work first. You have to be willing to become an employee; a slave to your our own business. It's about serving the people well now, so you don't have to be there later.

    It can be a challenge for sure, many people will try hard to use up all your time. I remember seeing this Facebook post that in short mentioned a business opportunity inviting anyone who wanted to join to email them at such-n-such with any questions. The post also stated that they were not placing phone calls nor receiving phone calls and if they (people interested) couldn't follow those simple instructions (sending them an email with questions etc.) then a phone call to them wouldn't make a difference. Now, some people may think that the person who made such a post was mean, disrespectful or arrogant BUT I'd have to say that the guy..... was just building on passive income.
  20. Art

    Art Member

    There's absolutely no doubt that you'll have to put a LOT of hours into any online business. I actually don't mind the hours I spend behind the computer screen, because each day I'm learning something new :)
    One of the best things for me is when I go to sleep and then wake up in the morning, check my opt-ins and sales and realize that I made money while I was in bed! That is Passive Income :)

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