Why Residual Income Opportunities
How Do Residual Income Opportunities Differ
I’m often asked to define residual income and what makes residual income so different from Linear Income. Well, there are major differences between the two and when you understand the differences — it’s like a bright light going on in a pitch black room — it’s that amazing.
The short and sweet way to describe the two are: Linear income is what a person earns when they trade their time for money, i.e. the 9 to 5 grind – where you earn a set amount of dollars for a set number of hours worked per week. Where as Residual Income is income that a person earns on a continuous basis for work that was done once; a revolving source of income for a one time effort.
When I think residual income, so many residual income ideas come to mind and as you begin to become more aware of your choices, I know and understand it may be difficult to choose what works best for you. Choosing the right opportunity is an important component to your success, but that’s for another post.
My goal here is create an awareness of what residual income is as well as to make a clear distinction between residual income and linear income. With that said Scott Lovingood from the Wealth Squad wrote an article a while back on residual income opportunities that echos this awareness:
Define Residual Income - Income that is generated without significant effort to maintain it.
Another way to think about it is streams of income that continue for a longer period of time after an initial effort to set up. Every person should work on developing these types of income streams.
One of the key limiting factors to every person’s journey to wealth is their time. While working for an employer, you are trading hours for dollars. While commissions and bonuses can impact that formula somewhat, it is still generally considered to be an hours for dollars relationship.
For us to be able to accelerate our wealth creation we need to find ways to circumvent this limiting factor. I mean none of us have more than 168 hours in a week… and I prefer to spend a good bit of that time pursuing other activities such as sleeping, having fun and enjoying life.
Since time is our single largest limiting factor, we have to find ways to leverage other assets so our time is maximized. So let’s look at some real world examples of income versus residual income opportunities.
An example of a normal income stream would be a Real Estate Broker. While this may not be a great example giving today’s current real estate environment, it does allow us to explore ways that we can leverage a normal income stream to create residual income streams.
A real estate broker or agent already has systems in place that allow them to leverage their time. They have advertisements, websites, flyers and yard signs in place to capture the attention of people looking to sell their home. They have realized that creating these systems allow them to maximize their time.
Yet they still leave a ton on the table by only focusing on one income stream.
So how could they develop multiple income streams from their current one?
How do you find and develop multiple residual income opportunities?
They could teach a class to people looking to sell their home on how to maximize the amount of money they can sell their house for. While this class itself could be a normal income stream (if you put a small fee on it), it can easily be leveraged into so much more. Every thing we are going to discuss below can be applied to nearly any job or business model. Everything you do in life can lead to the development of residual income opportunities….More at Residual Income Opportunities…
Network Marketing As A Source For Residual Income
There are many network marketing opportunities in the market place and the vast majority if not all of them has some type of residual income model associated with their compensation plan. HOWEVER the key to getting your business to the point of no return…to that sweet spot (sustained residual income) - is to have a residual income formula or system. Although the formula and system I use is geared towards my network marketing business, and has made our team the fastest growing team within the company, it can be adapted and applied to other network marketing businesses. There are Real Residual Income Opportunities all around us! The bottom line is, when you build leverage, you build a platform for residual income in your network marketing business.
Awareness is important and now that you are aware of the power of residual income, take some time to ponder on what will work for you!
Live Your Dream,
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