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Network Marketing for Passive Income: Does it work?

So you're curious about network marketing and passive income. I'm glad you made it here!

In this post we're going to first define what is passive income, what are the different forms of passive income or passive income streams, and what you need to start each one.

I am not a financial advisor, but what I share is based on my own personal experience and knowledge. Are you ready to dive in? Let's get started!

If you would rather watch, I share the same information in this YouTube video.

What is Passive Income?

According to the World Wide Web... or Google lol, Passive income, also known as residual income, is defined by the financial wizards of the world as a source of income that comes in without regular effort to bring it in.

This means you are not actively working for it, but rather earning from previous work or investments. It's the dream of many to have a steady stream of passive income that allows them to live life on their own terms and have financial freedom.

Now that we know what passive income is, what are some well known ideas for passive income:

  • Online Courses

  • Memberships

  • Real Estate Rentals

  • Stock Dividends

You may have noticed that I haven't included Network Marketing, because we are in the middle of proving that it does count towards passive income and why. So let's dive into that!

How Network Marketing Fits the Definition

When I asked my Facebook community their thoughts were heavy saying that it is considered residual, not passive, which I thought was interesting seeing as we have already talked about that residual and passive income are the same thing. This is why defining something first matters or as Reacher says in the new Prime series... "Details matter."

But how does network marketing fit as a form of passive or residual income?

Network Marketing by definition is a form of affiliate marketing within your network. You go to those you know and ask if they would like to purchase your product, then you get paid every time that customer places a new order.

Another name that you may have heard along side network marketing is MLM or Multi-Level Marketing.

How does Multi-Level Marketing fit in? As you go out and talk to your network, you can ask them if they would also like to earn money by selling the product, they become part of you team, thus creating multiple levels on which you can earn an income. Yes, you read that right, you can now earn a percentage of the customers that your team now brings in.

So as long as customers that you brought in and your team continue to order or pay for the product that you sold, you get paid. See how this fits into the definition of passive income?

You did the initial effort of getting a new customer or team member and get paid for every order in the future.

TaDa!! We have now explained how network marketing fits for passive income or residual income.

We're not stopping there, now we're going to dive into how to start building your passive income source and which of those I've mentioned is the easiest and lowest cost to start and maintain.

How to Start Building these Ideas for Passive Income Streams

To answer this question, we're going to cover each form that I've mentioned.

Real Estate:

To start building a residual income with real estate, you first need to purchase a property, you'll want to do research on the right type, the location, make any renovations, and then decide whether it's going to be a short-term rental or long-term rental.

If you choose short-term rental, you'll need to worry about furnishing the rental; you'll need to be able to clean it regularly; you'll need to market it and get a listing on a site and maintain that listing.

If you choose long-term rental, you'll need to maintain and repair the property when required; you'll need to market it in between tenants.

This has one of the highest cost to start, with medium to high cost of maintaining.

Online Courses:

In order to start selling an online course, you need to have valuable expertise that you can offer that people are willing to buy. You'll need to record videos, host the videos, have a sales page, and regularly market your course. Because the Field of Dreams quote, "If you build it, he will come" doesn't work.

Having created online courses before, finding that valuable expertise that people are willing to purchase is the hardest part of creating this form of passive income.

This is medium cost to start, to access the necessary tools, and high cost of maintaining.


Memberships can be online or offline. The concepts are similar, the biggest difference is that with offline memberships, you'll need a physical meeting place such as a gym; with online memberships you'll need a digital meeting place such as facebook groups. After solving where the membership is being hosted, you'll need to solve what your customer is looking for. This entails a regular coaching, classes, and/or meeting times; which require a lot more effort than some of the other forms of passive income.

Similar to online courses has a medium cost to start and high cost of maintaining.

Stocks and Dividends:

To get started in creating passive income with stocks, you'll need to research stocks with good returns, those that pay out dividends, and will require a large sum of money to purchase the stocks. The amount you get depends on how well the stock market has been performing.

This has a high cost to start with low cost of maintaining.

Network Marketing:

To get started in network marketing, you have to find a network marketing company, simply join the company as a representative, have a phone, a minimum of 5 hours a week, at least 30 people to reach out to (these 30 won't build your whole business), a friendly attitude, a belief in the product, and a will to work.

Network marketing has the lowest starting cost and the lowest cost for maintaining. Some network marketing companies will even provide you with DFY (done for you) marketing materials and best practices to get started.

The company has already done all the research of what the customers want and are providing it, they simply need representatives like you to help spread the word.

Next Steps

Most of this, to be honest, is based on my own experiences, I am not a financial genius by any means. I hope that this helps you to understand that building a passive income is possible and I would like to offer my help to you in helping you reach your goals, which is why I have open times in my schedule for a 30 minute Vision Call on zoom.

It is a completely free chat where we'll talk about your business goals, what's important to you when it comes to creating financial freedom, and growing closer to God.

It is my mission to create a team of faith-driven people who want to help others become more confident through personal and professional development.

Since this post was mainly about proving that Network Marketing is a form of passive income, I have some advice to give you if you choose to move forward with building your passive income in network marketing.

Here are my big pieces of advice from my 10 years in network marketing.

  1. Find a leader that has had success in network marketing and is still currently in the business

  2. Find a company that aligns with your values as a Christian

  3. Your network (your friends and family) are not the "end all be all" for building your business

  4. Be patient, have courage, and persevere

Building passive income takes time, but here is little something I want to offer you that may help in shortening that time. There's a course called the Residual Life done by Michelle Schaffer. She is a 15 year network marketing veteran and has built a multi-7 figure business in the space.

There are two option for accessing this course. You can purchase just the course or you can choose to join the Kingdom Alliance mentorship program that has the Residual Life course and so much more included.

If you are curious about the mentorship program, schedule a vision call and select that you want to know more about it when booking.


Let's tie this post into a lovely bow, we defined Passive income, that it is known as Residual income and that it is a form of income that comes in without regular effort to bring it in.

After going through each option, you'll notice that everything requires some kind of effort, to build and to keep going, and that each has it's own cost.

And while network marketing has the lowest cost to start, many times is given the title of "scam" or "pyramid scheme" because you have to approach your friends and family and talk to them about what you're doing.

Believe me, you'll get some responses that you thought you would never hear from friends and family.

That is why it is so vital to surround yourself with a community of support and development that will help to lift you up out of the tough times, and encourage you to keep going for your dreams.

Over the last 10 years of network marketing, I thought I had found some great companies, but none truly connected with me as a Christian Entrepreneur.

Until I found the Kingdom Alliance. It is a Christian based Mentorship program (with a Network Marketing Ambassadorship option) that provides personal and professional development to Empower, Encourage, and Equip you to be the best in your business, family, and life.

As a mom of two girls, I have always tried to be my best, but something that I learned from being inside the Kingdom Alliance was how to better lead them in this world.

About 4 years ago, I felt that I would never succeed in my business, that I was cursed, I had no vision, I had lost my hope. Then I heard this... if you don't have a vision of the future, then you haven't included God.

That was when I realized that I needed to include Him into my business. He had given me the vision, aspirations to impact the world, but I had cut Him out, thinking that it was unprofessional to include my beliefs into building my business.

Instead of hiding my faith and trying to conform to societal norms, I decided to fully embrace my beliefs and incorporate them into my business. And it has been the best decision I have ever made.

I have seen more growth, both personally and professionally, since including God in every aspect of my life. He has given me the strength, courage, and wisdom to push through tough times and dream of success beyond my wildest dreams.

He does want us to have financial success so that we can spread more of His love into the world.

Thank you for reading this today and I wish you all the best!

Sarah Lawyer, MomPreneur

This post may contain affiliate links to products that I trust. This means that if you make a purchase using the links below I may receive a small commission at no extra cost to you. Thank you for the support!



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Jun 01

Such an interesting post! I'm always looking to improve my business and learn new things and network marketing is definitely something I've been looking into.

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