Residual Income VS. Linear Income
Here’s a secret known by many that can add immeasurably to your own wealth. It is the amazing differences between linear and residual income.
The difference between these two types of incomes is so important because I don’t know a single person on earth who wouldn’t prefer to work smarter than harder.
People who earn linear incomes are people who trade for money. This includes everyone from the traditional employee to some small business owners like dentists, doctors, contractors, etc..
No matter how much money this person may be earning they are still trading time for money. Even the highest paid surgeon must report for work come Monday morning 9 a.m. To me, and many other home based business entrepreneurs; this rigid schedule can hardly be called freedom.
All of us are familiar with some professions that offer a residual income. People such as authors, songwriters, inventors, and some marketers. These are people who essentially do a project one time and continue to earn money from that project long into the future.
This bears repeating. Do the work one time and he paid for that work over and over again. Now that is working smarter than harder, and can have an amazing impact on the quality of a person’s life.
My suggestion for everyone is that they consider starting a work from home business that offers the opportunity to earn a residual income. Even if this business is started on a part-time basis over time it can build up and easily exceed your current income.
Needless to say this would provide tremendous security and a great sense of confidence to a person’s life.
For a person looking to start this type of business inexpensively and on a part-time basis, I recommend that they seriously consider using the network marketing business model in order to become a home based business entrepreneur.
John T. Kelly
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