Advantage of Having an Online Income – One-time versus Residual Income

know_your_customerMost of you who would read this post would be looking for a way to make money online. You are not alone, in fact, thousands of people around the world everyday are moving to online ventures to make money. They are simply looking for an alternative income, to make a few extra dollars or looking to fully convert their income source to online.

I am sure you would agree with me that having an online income is a good thing. If you are also working and if the online income is in addition to your work, then it is really a good thing. One day you can consider to quit your day to day job.

What is a One-Time Income?

I believe more than 90% of the people around the world are accustomed to one-time income – they trade time for money. I am not sure what you do for living, but if you are just like most people, you are probably doing 40 hours per week job at a set pay per hour. This means you are not financially independent because you have to work to receive the paycheck. Based on how many hours you have worked that week, your paycheck will vary. Hence when you stop working, your income stops. Therefore, one-time, or sometime called the linear income, requires continued work.

It is difficult to be financially independent with such source of income. You have to continue to trade time for money on a regular basis. This doesn’t help you become rich but in fact, it makes the owner of the company you work for richer.

I find a kick out of watching people walk out of one of the busiest Train Station here in Toronto – the Union Station. I usually drive by there around the morning rush hour to get to my office. Usually on a typical day, I would see hundreds of people rushing to get to their work from the train station. I usually wonder where everyone is headed and whom they are making rich by rushing to work. All of these are smart people but they are working for someone else and they are making that someone else rich on a regular basis.

Of course everyone has to make a living and hence they work. What I am saying here is that, if you don’t plan to get yourself out of this sort of work, you will always be doing that until you retire.

What is a Residual Income?

A residual income is the most powerful and profitable source of income. This definitely is the income of the rich people. This is the source of income that keeps coming even if you are not putting in the required time. Yes this means you are making money even if you are not working. And yes, you don’t have to retire to get to this stage!

However, it requires time and effort upfront for it to work. For example, imagine you spend an entire weekend building a blog – yes a blog similar to mine. If you had worked elsewhere, you would have made 16 hours times the hourly salary (regular 8 hour job). But for the blog website, you did not get any money. However, in a month or so if your blog starts to make $10 a day, the story will change. Well this doesn’t really sound like a big number but just think about it for a second – this site is making you $10 every day, 365 days of the year. Within the first 30 days, you will probably surpass the amount of money you would have made over that weekend if you had worked elsewhere. From this website, you will continue to rake in the profits for the entire year and beyond.

This simple example demonstrates how people can enjoy the benefits for a long time on something they’ve spent time upfront.

This is the path to success and this is exactly what I am hoping to teach you on my blog over the next few weeks. Don’t be an employee, be your own boss and start making money online.

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