When you mention about passive income streams, most people immediately think about network marketing... But that's a very risky approach.
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When you mention about passive income streams, most people immediately think about network marketing…

But that’s a very risky approach.

Yes, network marketing works very well for some people, but it has its hazards. The biggest hazard is that people need to keep paying in order to be able to promote the opportunity. If they can’t make money from it, they stop paying.

While the commissions are often very good, the reality is that most people simply don’t make it. In fact, the “average life span” of a network marketer in any specific opportunity is about 57 days…

Meaning that most of them cancel just before their third payment.

Even lead generation MLM programs like MLSP have high dropout rates.

But what if there is another way to generate passive income?

Actually, there are a few options:

1. Sell services with recurring commissions:

Several hosting companies, and just about all of the autoresponder companies offer affiliate programs with recurring commissions. Yes, your commission may be as low as $6 per month per client – but most people stick with the same host or autoresponder service for years.

Imagine if you make just $10 per month per client (for both the hosting and autoresponder combined) – you will be looking at $120 per year. If the average person sticks around for three years, that translates into $360 per referral.

You can get these referrals by offering an ebook, video or e-course to help them get started with their blogs. If you create and offer a paid product, you can win both ways.

There are also plenty of other opportunities in other niches – for instance, subscriptions to professional newsletters, monthly access to specific tools for specific industries, etc.

2. Two-tier affiliate programs:

Many affiliate networks who are actively working to build their affiliate base will offer override commissions for referring other affiliates.

As such, if you help people to get started online, and you suggest the right affiliate programs to them, you can keep getting paid for as long as they keep promoting offers from those companies.

Names that quickly come to mind include WP Engine, eToro (Forex trading company), SellHealth, TravelPayouts, JvZoo and Dating Factory.

Another way to recruit affiliates into 2-tier affiliate programs is to offer promotional material for specific vendors participating in the program. This could be content, an ebook to give away, short videos, etc. This method also allows you to go after more established affiliates.

In fact, if you can persuade an established affiliate to add the promotion to his or her autoresponder back end, you can find yourself making commissions on a regular basis – for a long time, especially if the offer is evergreen.

3. Reseller hosting:

Many hosting companies offer the facilities to set up hosting that you can then divide among 50, 100 or more smaller clients.

There are two ways to get a client for reseller hosting (besides simply advertising it on your blog or website):

a. Offer the hosting to people you coach, or whom you help to get started online (by means of a short course, e-course, or ebook).

b. Build websites for local businesses, and offer to host it for them as well.

In conclusion:

Contrary to what some network marketers would like you to believe, it takes time to generate passive income. In most cases, the commissions you are paid are relatively small. As such, it takes quite a bit of work to grow the numbers to a point where it can replace your income.


If you do stick it out, and you do eventually reach the point where your passive income streams can pay the bills, you will have done it in a way that is stable and sustainable.

It won’t be dependent on people who may jump ship (to the next “golden opportunity”) – because you will provide your clients with things they need anyway – like hosting, autoresponders, etc.

They will be much less likely to cancel – because they will need it regardless of what they choose to do online. Yes, here and there someone will drop off – some give up, and others may outgrow the services you offered to them – but it will still be better than having to find new clients or customers every month.

And since it’s passive…

You will actually be able to take time off whenever you feel like it – without having to worry about your cash flow taking a sudden dive due to cancellations.
In fact, if you go after items like paid subscriptions, monthly software access, reseller hosting, and autoresponder services, you won’t even have “bad months” like other businesses (who sell once-off items) experience – because your clients consider these services as essential.

As such, your income will be both passive and stable – and THAT’s what you should aim for.



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