The idea of passive income is intriguing because of its promise of creating something out of nothing. But, in reality, for all sorts of passive income, there are risks associated with them that need to be carefully assessed.
Our first attempt for passive income was a short-lived experience in the form of signing up for the one of the biggest network marketing companies in the US. We were hooked in by the promise of checks coming in as we sit back and relax after setting up a broad network under us. The risky part seemed to be setting up the network for which the company offered help in the form of weekly and sometimes impromptu “client” meetings. We immediately signed up for roughly $100 for the materials. The materials came about a week later in the form of everyday household goods that we were expected to find a market for. At this time, we panicked a little trying to figure out how to hook in people to sell the goods to. Not to worry, our friend who signed us up offered all kinds of help and invited us to her place for a presentation. The presentation went well – the talk was focused on how good & competitive the products are, interspersed with information about the presenter’s lavish lifestyle made possible by the passive incomes realized through this. Another week was spent trying to figure out how to hook up people into the system. Another presentation followed - this time by someone higher in the network. The presentation was a complete disappointment. It was pretty much the same content as the first one with the only difference being the stylistic aspects. What put us down more than the boring content was the fact that the rest of the people listening to it were behaving as though what they were hearing was the biggest thing since sliced bread, even though more than half of the audience was in attendance for the first presentation we attended as well. To summarize, with some discomfort with our friend, we were able to wiggle out of the deal. What did we learn from this experience? – First, these types of deals are not for everyone, especially people with minimal experience in marketing & selling. Second, the benefits are fairly back ended in the sense that a lot of time & effort needs to be spent initially to start enjoying benefits – time working families may not have!
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Our first attempt for passive income was a short-lived experience in the form of signing up for the one of the biggest network marketing companies in the US. We were hooked in by the promise of checks coming in as we sit back and relax after setting up a broad network under us. The risky part seemed to be setting up the network for which the company offered help in the form of weekly and sometimes impromptu “client” meetings. We immediately signed up for roughly $100 for the materials. The materials came about a week later in the form of everyday household goods that we were expected to find a market for. At this time, we panicked a little trying to figure out how to hook in people to sell the goods to. Not to worry, our friend who signed us up offered all kinds of help and invited us to her place for a presentation. The presentation went well – the talk was focused on how good & competitive the products are, interspersed with information about the presenter’s lavish lifestyle made possible by the passive incomes realized through this. Another week was spent trying to figure out how to hook up people into the system. Another presentation followed - this time by someone higher in the network. The presentation was a complete disappointment. It was pretty much the same content as the first one with the only difference being the stylistic aspects. What put us down more than the boring content was the fact that the rest of the people listening to it were behaving as though what they were hearing was the biggest thing since sliced bread, even though more than half of the audience was in attendance for the first presentation we attended as well. To summarize, with some discomfort with our friend, we were able to wiggle out of the deal. What did we learn from this experience? – First, these types of deals are not for everyone, especially people with minimal experience in marketing & selling. Second, the benefits are fairly back ended in the sense that a lot of time & effort needs to be spent initially to start enjoying benefits – time working families may not have!
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- Passive Income - Part 3 - Rental Income.
- Passive Income - Part 4 - Dividends.
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