How to Use Your MLM Income to Buy Assets and Build Wealth

Today, I want to talk to you about how to use your MLM Income to buy assets and build wealth. My real goal is to get you to think outside of the box about how you can create wealth by using your MLM Income, even if you never become a top earner.

As I see it, MLM is a great way to build wealth.  Even if you can just build up an extra income of $300 to $1,000 per month, you can take that money and buy assets that produce even more income for you.  You can also use the money to pay off debt.  Combine that with the yearly tax savings from having your own business, and you have a winning one-two combination.

So, how can you use your MLM Income to buy assets and build wealth?  Here are just a few examples.

1.  Pay off debt – One of the best ways to get ahead financially is to use your MLM Income to pay off your personal debt.  Start with the debt that you owe the least amount of money on and get that paid off as quickly as possible.  Once that’s paid off, snowball your efforts and move to the next highest amount owed. Keep repeating this process until you have ALL of your bills paid off. I think that everyone should strive to be debt free.

2.  Pay down your mortgage – Once you have your personal debts paid off, now you can attack your mortgage.  Use your MLM Income toward the principal balance.  Keep putting your check toward the principal every month and watch how fast your home gets paid off. Even if you can pay off your home five to ten years early, you will save THOUSANDS of dollars in interest.

3.  Buy an investment property – Once your debt and home are paid off, you can now use your MLM Income to buy an investment property.  Check to see what type of property you could afford to invest in, and use your monthly commission check to pay for it.

4.  Buy gold or silver, art or antiques – This is another great option.  Use your MLM Income to buy some assets that appreciate in value, such as gold, silver, art or antiques. Stocks, bonds and mutual funds are also an option to consider, if you like paper assets.

5.  Create or buy a new business – You could use your MLM Income to fund a new business, such as a storage unit business, a vending business, a car-wash, or whatever else you can think of.

A Story

Big Al Schreiter has a book (I forget the name of the book) where a guy took his small MLM Income (about $500 per month) to pay off his mortgage early and then to take the money and buy investment properties.  Even though he never became a top earner, he used the money wisely and built a small fortune.

Once his residence was paid off, he bought an investment property and used his MLM Income to pay that off early. And then he bought another investment property and paid that off early.  By the time he retired he had his residence and three investment properties completely paid off.

Combined with his retirement savings, he could retire in comfort.  The cash flow from the properties and his MLM Company paid for all of his monthly expenses, and then some.

I cannot confirm if this story is true or not, but the moral of the story is VERY important.  Even if you can create small MLM Income, you can do some great things with it!

Final Thoughts

The bottom line is that you don’t ever have to become  six or seven figure earner in your MLM Company to build wealth and buy assets.  If you invest your money wisely and have a good game-plan, you can build your own financial empire, even with just an extra $500 to $1,000 per month.

What are your thoughts about this?  Leave a comment below to let me know what you think.

Disclaimer: All investments have SOME risk.  Please consult with a financial planner, or your CPA before making an investments.  Individual results will vary.  This is for educational purposes only.

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18 thoughts on “How to Use Your MLM Income to Buy Assets and Build Wealth

  1. Greg Boudonck

    I am happy I ran into this article, because it is something I have been really thinking about.

    As you know, I now live in beautiful Puerto Rico. Just recently, a very good friend and his wife came down here to take a cruise around the Caribbean. We spent 2 days with Joe and Julie. Joe and I were discussing investing in a beach-side home that we could rent out as a vacation get a way. I am considering using profits to do this and the income we could receive from this venture could be enormous.

    A person should always be looking for good investments. I sometimes kick myself for ones I missed. If we study the possibilities, and are wise with our money, we can live comfortably.

    Reply
  2. Nicole

    Most people can use debt relief and so I agree that MLM income is a perfect way to become debt free. Once all your debts are paid you can invest in property, gold and the like. Most people think their problem is that they don’t make enough money to live but the true problem is cash flow. Their money is tied up in debt and they don’t have any assets that they could quickly liquidate to pay for the things they need and want now.

    Reply
  3. chuckholmes Post author

    I’ve always looked at my MLM business as an investment or retirement plan. You should too. Regardless of your current age, your MLM business can provide a nice supplemental income for your family in you retirement years. You can use the money you make each month with your MLM business to pay off debt, to invest, to save for college, or simply to improve your lifestyle.

    I think everyone should consider starting their own MLM business in order to supplement their retirement or investment income. After all, very few people have a pension with their employer. And most people will earn much less in retirement than they do during their working years. If you could build a $500 to $5000 per month income with your MLM business, that would have a major positive impact in your retirement years.

    Even if it took you 15-20 years to build that part-time income with your MLM business, I still think it’s worth it. It’s always a wise idea to have multiple streams of income when you retire. After all, you never know what will happen with social security, your nest egg or your pension. If you have all your eggs in one or two baskets, you are setting yourself up for failure.

    In addition, you can use your MLM Income to help you prepare for retirement. You can pay off your mortgage early, buy additional investments, or simply save it an emergency fund.

    MLM is by no means a get rich quick business. Best of all, you don’t even have to get rich with MLM to significantly improve your lifestyle or retirement. For most people, an extra $500 to $1000 per month would drastically improve their standard of living.

    Regardless of how close you are to retiring, I truly believe you could build a nice income stream with a MLM business within a couple short years. This income could offset your inadequate pension or retirement accounts. And it could determine whether you eat dog food during your retirement years, or live comfortable.

    In conclusion, a MLM Income is a great way to supplement your retirement or investments. You don’t have to earn millions of dollars in network marketing to improve your lifestyle. Even an extra $500 to $5000 each month would help most people improve their retirement lifestyle. You can use this money to pay off debt, save for your kid’s college funds, increase your retirement savings, or even take more vacations. The options are endless. All I do know is that it is important to have multiple streams of income and diversify your income sources, even in retirement.

    Reply
  4. Liz

    Excellent points as usual, Chuck. Using assets to pay off debt and make solid investments will further benefit your company in the long run. With the additional wealth provided by investments and the funds no longer going toward debt, there is more cash to allocate toward personal development, acquiring leads and training.

    Reply
  5. chuckholmes Post author

    What does the term MLM Equity refer to? I define it as the process of looking at your business as an asset. When most people purchase a home, they want to build equity. This is the difference between what they paid for the home and what it is currently worth. Although homes do not always go up in value, they normally do. And most folks who have owned a house for a long period of time normally have a good amount of equity.

    Network marketing isn’t much different. As you get started and build a downline, you are really building equity. Sure, you might not make a lot of money right away, but as your team continues to grow each month, and the sales volume grows, so does your MLM Equity. In fact, even if it takes you 5 years just to earn a $1000 per month in passive income it’s a pretty good deal. Let me explain why.

    • To earn $500 per month in passive income from an investment earning a 6% annual percentage rate, you would need $100k saved.

    • To earn $1000 per month in passive income from an investment earning a 6% annual percentage rate, you would need $200k saved.

    • To earn $2500 per month in passive income from an investment earning a 6% annual percentage rate, you would need $500k saved.

    • To earn $5000 per month in passive income from an investment earning a 6% annual percentage rate, you would need $1,000,000 saved.

    In other words, you would have to save $200k over a 5 year period to earn $1000 per month in passive income. Most people simply cannot afford to do that. Can you? But, if you get started with your MLM business, there is a very good chance that you could build up a $1000 monthly residual income from your network marketing business within 5 years. This is the power of MLM Equity.

    And if you could manage to earn $5k per month, after working your MLM business for five years, that would be the equivalent of having saved $1,000,000 over the same five year period. As I mentioned earlier, most folks have no chance of saving this large amount of money, but anyone can build a successful network marketing business in five years.

    I’ll be the first to admit that it won’t be easy. You must be disciplined, have a game-plan and work hard. That applies to any type of online or traditional business. Unfortunately, most people who join our industry won’t be persistent and consistent. Instead, they will try it for a few months and then quit. But, the people who do the work and stay persistent always end up on top.

    For most people, building a MLM Equity is the only chance they really have to acquire true wealth and passive income. Of course, I recommend you save and invest a portion of your income, too. That way you can develop multiple streams of income.

    Reply
  6. chuckholmes Post author

    What is a MLM investment plan? I define it as having a MLM business as part of your retirement portfolio. And in my opinion, it’s a smart move. Let’s face it we’re all going to want to retire one day. To retire and maintain our standard of living, we need a steady income that will pay our living expenses.

    Most people follow the conventional route and save money, hoping the interest from their retirement savings will provide enough income during their retirement years. And other people are fortunate enough to have a corporate or government pension. Sadly, some people don’t have a pension or retirement savings, and therefore have to work until they die.

    In my opinion, there’s a better way. I think it’s smart to plan for retirement. You need a success strategy that protects your investments and guarantees your income during your golden years. My favorite way to do this is to follow the conventional route (401k and/or pension) and build a MLM business on the side. That way you have the best of both worlds.

    You could start a part-time MLM business and build a decent income within a few short years. And that income can supplement your retirement income. Think about it this way. To earn $50,000 per year in retirement, you would need $1 million in the bank, earning 5% annual interest. And that $50,000 per year equates to $4,200 per month.

    In my opinion, anyone could earn $4,200 within a few years of part time effort in their MLM business. With some consistent work and a marketing strategy, you could build a thriving MLM business that equals or replaces your retirement income. This provides extra security in case your investments go down in value. Or, it could simply improve your standard of living.

    Although this plan might not be for everyone who reads this article, I think it’s a good idea. After all, why would you want all of your eggs in one basket, with a 401K plan or pension? What if the stock market crashes? Or, what if your pension plan goes bankrupt? What would you do then? That’s why you need a Plan B.

    In conclusion, an MLM investment plan is a strategy of adding a MLM business plan to your retirement portfolio. It’s simple, easy to do, and it makes sense. And it even gives you some tax advantages during your golden years.

    Reply
  7. Diamond Grant

    The snowball strategy for tackling debt really does work and makes the process of becoming debt free simple and relatively quick (depending on the amount of debt you have). I know I was initially so overwhelmed by my debt, but when I started using this method I saw great progress. In fact, last year I was able to pay off about $7,500 in debt simply by using this method and I am on track to have paid off about $10,000 by the end of this year which will mean that I am totally debt free! Try it; it works!

    Reply
    1. chuckholmes Post author

      That’s awesome Diamond. Staying out of debt is huge. Most people are owned by their debt and they have to stay in jobs they don’t enjoy because they have so much debt and need a large paycheck just to pay the bills. Living debt free is one of the best things someone can do. And yes, it is possible.

      Reply
  8. S.J.

    Using income and assets wisely is one of the most important things a business owner can do. It will make or break a business – and something as simple as saving a few hundred dollars each month can make world of difference at the end of the year when it is all said and done. Thank you for sharing this information on using MLM income effectively and wisely!

    Reply
    1. chuckholmes Post author

      You definitely want to manage your cash flow, income and expenses wisely. Set aside money to invest every single month, no matter what. Always pay yourself first.

      Reply
      1. S.J.

        So very true- I have know far too many people who failed in their business plans because they did not pay themselves first or were not wise with their money management and spending habits.

        Reply
        1. chuckholmes Post author

          I recommend to everyone to start their business part-time while they have a day job. This lets them keep the financial monkey off their back, while they get their business up and running. Paying yourself first is also important.

          Reply
  9. Faye

    I agree with you that paying off your debt and paying down your mortgage are the two most important tips on this list, and in that order. Mortgage interest is (at least for now) still a tax deduction in the United States, but credit card and most other debt is not. So attack what hurts you the most, and work from there.

    Reply
    1. chuckholmes Post author

      Even an extra few hundred dollars per month can do a lot for wealth creation. Combine that in with your tax savings and it can be significant. Most people could live like royalty if they were completely debt free and just made a few thousand dollars per month. It’s not about how much you make. It’s about how much you keep. It also helps to stay out of debt and live below your means. You can be broke making $100k per month if you spend more than that each month.

      Reply
  10. Selina

    Interesting piece of information! The most appealing, profitable and safest way of growing wealth/passive income in my opinion would be buying gold/silver or rather invest in paper assets. This is not only a good form of savings but would also give you an extra income for your other expenses. Must invest hard earned MLM income wisely!

    Reply

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