About Movie

Residual income model is described as income that is generated continuously after being set in motion with one action or sale. Robert Kyosaki wrote in the book, Rich Dad, Poor Dad describes this type of income as preferable over fees, commissions, wages, or salaries that are linear income, or income that is paid one time.

What's Wrong With the Linear Income Model?

The major problem with the linear income model is this income must be generated constantly through marketing a service or product. Examples of linear income are working a job for a salary or wages, selling products for a commission, and fees for providing professional services. You are paid one time for each of these, and then other customers must be obtained in order to keep a constant flow of income.

Why is the Residual Income Model Superior?

It allows you to earn continuous income even after the first sale. Here are some examples:

* Earning royalties from writing a book, writing or recording a song, or developing software
* Earning royalties as an actor from TV shows, movies, or commercials
* Earning a percentage from oil wells drilled on your land
* Renting or leasing real estate
* Interest or dividends from investments
* Creating information products to sell online or offline
* Becoming a distributor in a network marketing business

How to Choose a Residual Income Model

Most opportunities require an investment of money, skill, and time. While there are many opportunities out there, some take more money and effort than others. It's up to you to decide whether or not the business could actually fit within your budget and time constraints, and also if it's something that you would want to do.

Once your residual income exceeds your linear income, you will be able to decide whether to keep working for money or let money work for you.