Building MLM Wealth from a part-time business
There’s a lot of talk in the network marketing industry about quitting your job and going full time. But what if you don’t necessarily want to quit your job? What if you even (gasp!) like it? Is network marketing still for you? Can you still build MLM wealth on a part-time basis?
I think so.
Here’s one idea:
Let’s say you work your network marketing business part time and build it to an income of $1500 per month. You still have your job paying your bills, so you decide that your network marketing income is going to be used to build your mlm wealth.
Save your money
You save your $1500 each month for 18 months, which gives you $27,000. You take the $27,000 and use it for down payment and closing costs on a rental house. You pick a rental in your neighborhood or one close by, so you can keep an eye on it and manage it without too much trouble. Le’s say the house costs $200,000. In some areas, that’s higher than you’d probably pay and in some areas lower, but we’ll use this as our example.
At today’s rates, your loan payment would be about $850, with another $300 or so for taxes and insurance. A $200,000 house will generally rent for more than $1150, but let’s say that the rent just covers your expenses, so you have no positive cash flow from the rental. You take your $1500 per month and pay down the mortgage on your rental property. Doing this pays the house off free and clear in 8 years.
Now you have $2650 coming in each month. You save up for another year and go buy another house, also whose rent just covers the payments. With your extra payments, you’ll pay this house off in just 5 years, giving you an income of $3800.
Rinse and repeat.
In 7 months you buy a house which you will pay off in 4 years. The next one you pay off in 3 years. So 8+5+4+3=20 years. You now own 4 houses free and clear, which are providing $5000 per month in cash flow. You still have your network marketing income of $1500 per month, so you’re cash flowing $6500 per month and have assets worth $800,000. Not bad for a part-time side hustle.
Now during that 20 years, I’m betting you got a few raises and managed to stick some of it into a 401(k), so there’s that, too.
Also, this little scenario didn’t figure on the real estate appreciating in value, rents going up over 20 years, or your network marketing income increasing, even though you’ve still been at it for 20 years. I think it’s safe to assume that some of those events might come to pass, as well.
You don’t have to be a rock star
So even if you don’t see yourself making rock star money with your network marketing business, there is something here for you. You can build a small business on the side, invest that income wisely and set yourself up very nicely indeed. If you’re reading this and you’re in your 20’s or 30’s, you’re looking at early retirement. If you’re older and haven’t gotten started saving for that fateful day, this is a plan that can get you there.
It’s steady and conservative and you don’t have to be a rock start to get it.
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