What is the difference between residual income and linear income?
February 10th, 2010 | by admin |
1. Linear Income
a. Salary: You work so many hours, you’re paid so many hours.
b. Sales: You make so many sales, you’re paid so many sales.
c. Services: You perform so many services, you’re paid so many services.
-When YOU stop; your INCOME stops.
-To expand your income you must work more hours and/or hire people.
-Either way, growth is linear too, and you always have to be there.
2. Residual Income
a. Continuing royalties on patents.
b. Continuing royalties on copyrights or performances.
c. Payments on renewals of memberships, subscriptions or insurance policies which were originally sold by you.
-These tend to dwindle over time and finally peter out.
-To expand your income you must work faster and/or hire people.
-Either way, growth is only linear, and you always have to be there.
One Response to “What is the difference between residual income and linear income?”
By nikbern525 on Feb 10, 2010 | Reply
1. Linear Income
a. Salary: You work so many hours, you’re paid so many hours.
b. Sales: You make so many sales, you’re paid so many sales.
c. Services: You perform so many services, you’re paid so many services.
-When YOU stop; your INCOME stops.
-To expand your income you must work more hours and/or hire people.
-Either way, growth is linear too, and you always have to be there.
2. Residual Income
a. Continuing royalties on patents.
b. Continuing royalties on copyrights or performances.
c. Payments on renewals of memberships, subscriptions or insurance policies which were originally sold by you.
-These tend to dwindle over time and finally peter out.
-To expand your income you must work faster and/or hire people.
-Either way, growth is only linear, and you always have to be there.
References :
http://www.freedomkeys.com/1way.htm