You have got to know these 3 kinds of income before you start making money online and offline. The sacred book even said “….that through knowledge the Just shall be delivered”.
My sincere advice to you is this: “Before you choose any business, first of all find out the type of income such business offer.”
Many people are not successful because they choose their business by chance; either because their father, mother, brother, relation or friend is doing it. However, a critical business analysis is required by any aspiring business man or woman who sincerely wishes to hit the ladder of success faster in life.
here are three types of income:
1) LINEAR INCOME:
This is the type of income where by you only earn money when you work. Failure to work means failure to earn.
Income streams from salary, or one-man trader/entrepreneur are linear. People that earn this type of income only get paid once for their efforts. Whenever they fail to show up for work or open shop/office, they will not get paid.
No one gets rich earning linear income. Those that fall under this income stream have a way of falling from grace to grass when they loose their jobs or business capital. It’s a pathetic and risky way of earning income. Those that earn this type of income remain there because it is convenient.
2) RESIDUAL INCOME:
With residual income you work hard once, and it generates a steady flow of income for months or years. You get paid over and over again for the same effort. Imagine dedicating the same amount of time and effort just like the linear income earner (for a period of time) and earning continuous income for years whether you work or not.
It’s simply and amazing way of earning a living.
When you view people’s lives through the filter of residual income, many groups of people aren’t as wealthy as they appear. Doctors, bankers, sales people, attorneys, consultants and others do not earn residual income from their labors. Their income potential is capped because they earn linear income. They may appear to be rich but they’re on a treadmill just like the rest of the linear income earners.
To enjoy more time freedom with your family while generating good and steady income on part time, every smart person in this should work towards getting involved in one income stream that offers residual income no matter how much he or she is earning. Very important to note!
3) LEVERAGE INCOME:
This is earning money through other people’s effort. A smart business is one that allows you to “leverage” your earnings through what other people are doing in a win/win way.
That means you can earn income when you refer people to patronize a business or join a program, and the people refers others, and the others refer others…and so on, to infinity.
By simply referring a few people to a business where they can buy products that they need, you can eventually have hundreds, even thousands of people putting money in your pocket around the clock for years. This money comes in form of commissions from the purchases the people you referred made.
With leverage income, money keeps coming in month after month, year after year. Money that keeps coming in whether you work ten or two hours a day; cash commissions waiting for you in your bank account when you return from yet another vacation or from sick bay; money that when you’ve left this planet earth continues to provide for your spouse, children, or grandchildren.
In the coming days, I will be doing more articles about these income types and I will show you examples of each. Do watch out for them.
Tell us the sort of income you enjoy now and how you plan to move forward.