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The Three Types of Income

By: Dan Chan For most people, achieving success in home based business means a lot more than just earning more money. It also means more time freedom, more relationship freedom and a better lifestyle. It means paying off the bills, getting out of debt and having more peace of mind. It also means having money flow into your bank account every single month, whether you work or not.

Why would you want to and trade your day for a dollar, when you can make money in your sleep? It's a different game that you are playing, and you make the rules. The fact is that there is more than one way to make a dollar. You have to be savvy and willing to recognize the three ways that you can earn money.

First thing you need to do is learn what the three types of income are. They are Linear Income, Leveraged Income & Passive Residual Income. Let's take a look at each one in detail:

Income Type #1 or Linear Income, is income generated by working at a job. When you work, you get paid. When you do not work, you do not get paid. This is how most people live their lives and why those who only work for Linear Income, can never stop working.

Income Type #2 or Leveraged Income is a little better than Linear Income, but still the optimum way to make money. This is because your income is based on the efforts of those who earn linear income. A good example is a small business owner with employees. Leveraged income does not offer true security, because linear income employees can quit, find a higher paying job, or even become your competition.

Income Type #3 or Passive Residual Income is the holy grail of income. It is income that allows ordinary people to achieve extraordinary success. Especially in home based business, where every distributor has the same opportunity to succeed. Anyone who will apply themselves can earn as much money as they like. There is a level playing field, and you can make money off of the efforts of others. Another feature of passive residual income is that you often see income flowing from repeat purchases of a consumable product. XanGo, the juice drink product, is a perfect example. People you sign-up will sign up other people, and a chain reaction begins. You make money off of everyone that orders new product in the down line.

Think for minute. What is best for your business? Get paid once or get paid forever? This is also the kind of income that grows each month a little bit more and allows people to live without financial limits. Imagine doing what you want, with whom you want, for as long as you want. Wouldn't this be the best type of income?