Different Types Of Income
April 23rd, 2007
- Linear Income - here you exchange your time for money. The more money you want to earn, the more time you need to give up. Examples include salaried workers. If you stop working, your income also stops.
- Residual Income - here you do the work once and get paid for e.g. by earning royalties. Examples include writers, singers.
- Multiplex Income - this is income earned by leveraging. Consider the McDonald franchise concept. Ray Kroc did not become a millionaire by selling hamburgers. He had independent business owners who bought a franchise from him. They sell the hamburgers for him and each pay him a franchise fee and also a percentage of sales. What Ray has is a proven system. A system that can be duplicated. Multiplex income is based on the concept of “the power of duplication”. Examples include franchising & Network Marketing.
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