Did You Learn This Before Making Your Career Choice?

Did They Teach This in College?

Did anyone show you The BIG Picture? 

Were you shown any of it by your career counselor or whoever helped you make your original career choice before you made it?

Presenting...

THE FIVE INCOME TYPES IN TODAY'S WORKING WORLD

Ready to take notes? Which income stream do you prefer?

1. Linear Income When YOU stop working, 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.  Your investment is typically your time, as well as the loss of other opportunities due to time constraints.

Examples:
a. Salary: You are paid a flat amount, regardless of hours worked. 

b. Hourly: You are paid a flat rate per hour. 
c. Sales: You make so many sales ~ you're paid for those sales. 
d. Services: You are paid for the services you perform (per hour or flat fee).


2. Residual Income  A residual income stream will earn you money even when you're not on the clock.  Minimal hours are required to oversee activities.  Up front investment can vary.

Examples:
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. 

3. Franchise Income

Continuing payments based on gross volume produced by franchises you originally sold as a master franchisor or franchising company owner. May suffer in recessions. To expand your income you must sell more franchises (growth is linear) or introduce new products (slightly geometric). Requires a significant up front investment.

Examples:

a. Business Format Franchise

b. Product Franchise

c. Manufacturing Franchise

4. Passive Income  Income you earn by doing little or nothing at all.  Your up front investment is primarily your time. Risk can be higher than average and opportunities are fewer.

Examples:

a. Selling Information Products

b. Rental Income: requires the upfront purchase of real estate

c. Affiliate Marketing: Affiliate marketing is considered passive because, in theory, you can earn money just by adding the link to your site. In reality, you'll earn NOTHING if you don't find a way to attract readers to your site, click on the link, and buy something. It's a long-term "project."

d. Peer-to-Peer lending: A personal loan made between you and a borrower, facilitated through a third-party intermediary such as Prosper.com or LendingClub.com. As a lender, you earn income via interest payments made on the loans, but because the loan is unsecured, you face the risk of default.
e. Dividend-Yielding Stocks

5. Passidual (yes I made that up) Income A combination of Residual and Passive Income types (the best of both worlds)

Example:

a. Certain Network Marketing opportunities - examine each to see if it's a good fit for you.  Those with party requirements will take more of your personal time.  Those with commission level "buy-ins" can become expensive.  Look for a healthy balance and a money-back guarantee (within a reasonable time period).  

Would you like me to make a recommendation? Message me!

I hope you learned a little something here.  If so, please share this post with others so that they, too, can make more informed choices with their income streams!

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