Password for Private Forum

[MadStatus]

I've created a private forum where only approved members can enter. Though I'd also like to have a password available to select users so they won't have to wait for approval. We can advertise this password in our targeted marketing campaign.

That way they can register at their convenience and access private forums immediately using the password until we can promote their membership.

But it looks like the way passwords are used with Vbulletin, are they can only be used by people who already have permission to the private forum, and the password is just an added security measure.

Is this correct?