Wednesday, June 4, 2014

The difference between Residual income and Job income

I wanted to share some information with you to consider your options to there full potential when considering to work at home even if you have a job outside the home.

If you are out there in the corporate world holding down a job you may never have thought about the difference between earning residual versus linear income or otherwise known as earning an income working at home.

So what’s the difference?

Let me ask the same question a different way. Would you rather get paid for your own time and efforts or receive a share of other people’s time and efforts?

Let’s look at a couple of LINEAR income (job income) examples first:

If you have a job and get paid hourly wages, that’s called linear income. You put in your time and you get paid for the hours you work. If you have a day off or you are sick you don’t get paid. Doctors, lawyers or anyone who is self-employed earns a linear income as well. If a doctor doesn’t see patients or goes on vacation, he doesn’t get paid.

Now let’s take a look at some examples of RESIDUAL income:

Elvis made a lot of records during his lifetime.  Although he’s been dead for a long time now, every time one of his songs plays on the radio his family still receives “royalties.”

The same goes for movie stars. Regardless of how long ago they made the movie, every time it plays on TV or is sold on a DVD they receive royalties for it. Just like Elvis, they get paid over and over for it forever.

You may ask, …”Well how does earning residual income
vs linear income relate to me??”

If you have a home based business you are creating a “royalty income” aka “residual income” of your own. You do something once, like acquiring a new customer for your company, and you will get paid on that customer as long as he or she stays with you. Every time that customer places an order, you get paid a percentage.

You can also leverage your time and efforts by inviting people to join your team and teach them to do the same … acquiring new customers for your company. Then you also get paid a percentage on their efforts.

Residual income happens when this royalty income starts to grow. Let’s say your customers love your products so much they start telling their family and friends and they all become your customers too. And then they in turn tell all of their friends as well. That’s kind of like how AOL grew so big so fast. Word of mouth is the fastest and most cost effective way of acquiring new customers.

Once this happens, things take on a life of their own. You can’t stop your business from growing, even if you tried.  When you’re sick or on vacation your business just keeps growing as one happy customer tells another.

Now, that’s the difference between trading time for money like with linear income, where you work a certain number of hours and get paid for those hours. And residual income where you do something once and get paid for it over and over again and also where you leverage your time with others.

Again, the question … would you rather earn residual income or linear income?

If you answered RESIDUAL INCOME than I would suggest you start working on that. Start today! You can do it part-time while you are still earning a linear income from your job.  Commit a certain amount of hours to work at home every week.  Set realistic goals. Remember, you eat an elephant one bite at a time. Be consistent. Be patient. And never, ever give up.

I love this quote by Jim Rohn: “Work full-time in your job and part-time on your fortune.”

That sums it all up, doesn’t it?

Also, Dont forget about the fact that you can Save money on your taxes

I look forward to talking to you soon and helping you achieve your goals!

1 comment :

  1. I look forward to ready more of this blog.
    Thanks Michelle