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What’s the Point of Passive Income?


All network marketers talk about the fantasy of passive income but is it real and how does it work? This post will help as I dive into personal experience.

Some Stats of my Personal Passive Income

Residual or Passive income is money that comes to you that is NOT directly tied to your efforts. There are many ways to accomplish this, I chose to do it through network marketing.

I did a bit of digging and calculating and here are the stats of my last four checks from my network marketing company:

bureaus interest

Last week, 88% of my check was from the efforts of others.

Two weeks ago, 94% of my check was from the efforts of others.

Three weeks ago, 91% of my check was from the efforts of others.

Four weeks ago, 88% of my check was from the efforts of others.

So, what does all that mean? It means that creating a passive income CAN be a reality but there are a few stumbling blocks along the way that snag most networkers. Before we dive into that, let’s take a scroll down memory lane…

My First Attempt at Residual Income…Real Estate

So a buddy of mine and I read several books on real estate and figured owning rental properties just made sense. If we could get enough rental properties to create enough passive income to cover our bills, we could quit out jobs at the insurance company!

If we could buy them right, so that we could rent them for more money than the PITI (principle, interest, taxes, insurance), calculate in a 5% repair, 5% vacancy, then, we will essentially have created cashflowing real estate and it was going to be awesome. So, we did!

In that first 12 months we got lines of credit on both of our homes, did every no-low money down financing deal we possibly could and actually bought 37 rental units. Some were single family, some triplexes, duplexes, etc. For the numbers to work they were all in low income areas, ghettos essentially. Landlording was not what I imagined and we both soon realized that when the market goes down, jobs are lost and rents go down. Even though I would never take back a decision as things happen for a reason the way they were meant to, let me just say, when it comes to residual income I prefer the low cost, low risk, low overheard way of building a network marketing business over any other that I have tried.

How to Create Passive Income

The thing with creating passive income is most people can do almost anything else to make money faster. Read that sentence again and really get that. MOST things that create passive income are not fast and not as lucrative IN THE BEGINNING as other ways of making money that will NOT generate residual income.

Same test, same network marketing company.

My first and second week checks were 100% based on my efforts.

Week three 89% of my check was based on my efforts.

Week four it was back to 100% of my check was based on my efforts.

From poking around with my checks, it looks to me that it was almost five full months before I ever got close to real residual income where my check was NOT based on the majority of MY efforts but check this out…I was ONLY focused on my primary company, not promoting anything else, total, 100% focus on building my team. It wasn’t until later that I even promoted affiliate offers. So what’s the moral of the story?

Creating a lasting, real passive income is possible but MOST people lack the 5-6 months of intense work and focus that is usually required.

Video on Passive Income Streams


My advice: find something you love and choose to focus on it and become a top earner of it. Eat it, breathe it, sleep it, focus now, now, now to celebrate later. If you would have told me that in years to come only 6-12% of my income would come from my efforts, I would have found it hard to believe. (By the way, my wife and I are pretty hardcore recruiters, that is the only reason it is even that high.)

I knew everyone should build a residual income when I took my wife on our honeymoon to Fiji, spending almost double what I made in the entire year 2009, just to come home to more passive income than we spent on the trip. The big question is…how much of YOUR income is passive? What is YOUR percentage? If it’s less than 10%, time to buckle down and focus my friend so you can live the life you’ve always wanted.

Don’t believe em when they tell you 97% of people fail, it’s baloney. Don’t believe them when they tell you only certain types of people have success, I’ve seen ALL types have success. Don’t believe em when they tell you that you are just dreaming. If I can do it, so can you. Share this message with other networkers that may need encouragement and comment below IF you are focused on building your dreams!

To Your Abundance!

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Ray Higdon Profile Image

Ray Higdon

Skype: ray.higdon
Email: [email protected]

“I Show Network Marketers How to Recruit More Reps, Get More Leads and Become a Top Earner in Their Network Marketing Company.”

Image(s): FreeDigitalPhotos.net

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