rss
twitter
  •  

Would You Rather Earn Residual or Linear Income?

| Posted in Home-Based Business |

24

Earn Residual IncomeIf 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.

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 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 MLM 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 your network marketing business 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?

What are your thoughts on this subject? I would love to read your feedback in the comments below.

To Your Success,

Ilka Flood
The Enlightened Networker

P.S. If you enjoyed this post please re-tweet it and  share it with your friends. Thank You!

facebook comments:

Comments (24)

Hi Ilka,

Residual all the way.

No ceiling, unlimited prosperity and the cool part is we create the abundance we tune into my simply serving.

I have to admit, when I got into network marketing I saw dollar signs. I like the idea of helping but was too attached to the outcome. Now the most fulfilling part of what I do is serving, no feeling like it!

Thanks for sharing :)

RB
Ryan Biddulph invites you to read..Sizzling Hibachi- Fairness and Network Marketing…Lemme Explain!My Profile

[Reply]

Ilka Flood
Twitter:
Reply:

Hi Ryan,

I agree with you totally! I’m all for residual income. I know what you mean about the $ signs. However, it does not work that way. You can’t focus on the money.

Like Zig Ziglar puts it…”If you help enough people to get what they want, you will get what you want.”

Thanks for adding value to my post with your comment! I truly appreciate it!

Be blessed,

Ilka

[Reply]

Hey Ilka, I really like the way you explain the difference between residual income and linear income. Why would anybody not want residual income, especially after reading this post! Thanks for sharing

Sherman
Sherman Smith invites you to read..Confused about SEO Then you need to look into SEOpressor!My Profile

[Reply]

Ilka Flood
Twitter:
Reply:

Hi Sherman,

All I can say is “DUH!” It’s a no-brainer. The rich know how to leverage their time and money.

Robert Kiyosaki said (paraphrasing): The richest people in the world build networks, everybody else looks for work.

Residual income all the way!

Thanks for your valuable input!

All the Best,

Ilka

[Reply]

Hi Ilka,

It really is a “no brainer” for me and the reason why I was never able to tear myself away from the network marketing industry even though I was often very tempted.

Nothing else mad as much sense to me and since I was hardly going to be able to duplicate Elvis, here I still am! LOL

~Marcus
Marcus Baker invites you to read..Why you Want Your Facebook Friends to Come to Your FuneralMy Profile

[Reply]

Ilka Flood
Twitter:
Reply:

Hi Marcus,

I know, there can be tough times in this industry. But look at the alternative :)

Love your sense of humor!!

Have a great rest of the week!

Ilka

[Reply]

Hey Ilka,

Without doubt, I’d rather earn Residual income than linear income.

I first heard about the concept of residual income vs linear income from Robert Kiyosaki and have been hooked ever since.

He was also one of those who made me become open-minded to the industry.

The point of setting realistic goals and a set amount of time to work the business cannot be overflogged.

Thanks for sharing your insights, Ilka!

Tosin

[Reply]

Ilka Flood
Twitter:
Reply:

Hi Tosin,

Yes, Robert Kiyosaki does an awesome job explaining the difference. When you see it from his viewpoint it even makes more sense.

For a long time I thought being self-employed would be the way to go. But, not really. Doctors, lawyers, franchise owners, etc. they are still basically working a job. When they don’t they don’t get paid. Residual (passive) income, is the way to go.

And we know where Robert Kiyosaki wants us to go after that, right? ….Into investing!

Thank you for your great comment, Tosin!

Ilka

[Reply]

Tosin
Twitter:
Reply:

Hey Ilka,

You see, while growing up we saw doctors and especially franchise owners as people we wanted to be like.

I remembered reading Cashflow quadrant by Kiyosaki and was shocked when I realized that some of them might even be worse off than employees because they are basically the system.

That gave me something to think about for a long time. And thank God I found Network Marketing!

Yeah, Investing…from the B to the I. We should not lose focus of that.

Thanks for the reply, Ilka. It brought out some ‘deep’ memories. :-)

Tosin
Tosin invites you to read..Facebook Friend Request Lines – My FavouritesMy Profile

[Reply]

Ilka Flood
Twitter:
Reply:

Hi again Tosin,

You will find a lot of doctors in network marketing. There’s a reason for that :)

Cheers,
Ilka

Hello Ilka,
Of course everyone would prefer a residual income, but that also means coming up with your own product => you have to do a little bit of work. And it will also take some time to do so.
Still, I consider the benefits are way worth it.
Thank you for the post, Cosmin.
Cosmin Stefan invites you to read..11 Awesome Blog Rankers You Just Have to Add Your Site ToMy Profile

[Reply]

Ilka Flood
Twitter:
Reply:

Hi Cosmin,

You don’t need to come up with your own product in order to earn residual income. You can market somebody else’s products or services.

In fact, that’s the beauty of Network Marketing, MLM, Direct Sales or Affiliate Marketing. You don’t have the overhead, no employees, no hassle with shipping products, etc. The company you represent takes care of all that. Yes, there is still work involved though.

Thank you for visiting my blog! It’s very nice to meet you!

Ilka

[Reply]

Cosmin Stefan Reply:

Ah, you’re right Ilka. Silly me. Forgot about affiliate marketing for a second.
Even though I’ve never actually used it, maybe in I’ll give it a go in the future. Thanks!

[Reply]

Ilka
I have heard this before but not quite the way you put it. I would much rather earn a good residual income than work for someone else. I prefer it that way. I am still learning and have a long way to go but deep down I know I will make it. Thanks!
Melody

[Reply]

Ilka Flood
Twitter:
Reply:

Hi Melody,

Welcome to my blog! It’s very nice to meet you :)

Keep that attitude and you are half way there!

All the Best,

Ilka

[Reply]

Hi Ilka!

My vote goes out for residual income!

This is such a clear presentation of the stark difference between just plain earning and earning while living the life you wanted to live. Very clear and vivid examples!
Elmar Sandyck invites you to read..How To Get The Attention Of WomenMy Profile

[Reply]

Ilka Flood
Twitter:
Reply:

Hi Elmar,

Yeah, residual income all the way!!

Thanks for stopping by and leaving your thoughts!

Have a great week!

Ilka

[Reply]

Jim Rohn’s saying is really full of wisdom.
I am earning some residual income from my online business. What would you say about a full time regular job, where one is also paid even when he is on leave? Is it Residual Income or Linear Income Job?
nazimwarriach invites you to read..epc BelfastMy Profile

[Reply]

Ilka Flood
Twitter:
Reply:

Hi Nazimwarriach,

I used to get paid vacation when I was working “a regular job” back in Germany, but that’s still linear income. Is that what you meant?

Enjoy your week!

Ilka

[Reply]

Hi Ilka,
Came by way of Blog Interact. I suppose I always knew the difference between the two, but never had the “terminology” (well, for linear income). I definitely know what residual income is! I count on it everyday. This is a good read for those interested in starting their own home business.

Mikel
Mikel invites you to read..Identifying the Symptoms of StressMy Profile

[Reply]

Ilka Flood
Twitter:
Reply:

Hi Mikel,

Great to meet you! Thanks for stopping by and adding value to my post! I truly appreciate it!

Residual income is the way to go, as you well know :)

To your continued success!

Ilka

[Reply]

Hey Ilka!

Love the description of the difference between these two types of income. To me there’s really no question – residual is the way, it simple makes way more sense!

Once your network marketing business really takes off, that residual income can almost become ‘Passive Income’ which I suppose is the ‘Holy Grail’ of wealth generation in a way…

Thanks for putting such a clear and important post together!
All the best,
Jym

[Reply]

Ilka Flood
Twitter:
Reply:

Hi Jym,

Well, Robert Kiyosaki and Donald Trump know a little bit about wealth generation and they talk about passive income all the time. So I agree that’s the way to go. I’m all for it!

Thanks for stopping by and for your great comment!

All the Best,

Ilka

[Reply]

Jym from MLM Lead Generation
Twitter:
Reply:

Yes they do Ilka – very good example.

Following the example of these kind of people is definitely a good idea re:wealth and financial success! It’s also really helpful to have simple down to earth explanations as well, like the one you provided here!

To me the long term goal with all this is to be able to sustain my desired lifestyle, whether I choose to work at any particular time or not. If enough residual or better still passive income is established – then that goal can be a reality, for anyone who wants to attain it!

All the best and thanks again for raising a great topic!

[Reply]

Post a comment

CommentLuv badge

TEN uses premium CommentLuv Premium which allows you to put your keywords with your name if you have had 0 approved comments. Use your real name and then @ your keywords (maximum of 3)