Twitter 101: The Difference Between Linear and Residual Income

images5Not all streams of income are created equal. Some income is linear, other income is residual for us who buy Twitter followers. If you are currently paid hourly or on a salary, your income is linear. Income from a salary is linear because you are only paid once for your effort. When you don’t show up for work, neither does your paycheck, does it? With residual income, you work hard once and it unleashes a steady stream of income for months or even years. You get paid over and over again for the same effort. For example, an author will write a book one time and yet be paid over and over again on that book for years to come.

Although it might take years to write before the money starts to flow, it’s worth the wait. You’ll find that the ultimate benefit of those who are truly wealthy is that work is optional and leisure is affordable. This is because most of their income is passive and residual. Therefore, they can spend their time doing whatever they want.

When you start to view people’s lives through a filter of residual income, many groups of people aren’t really as wealthy as they may otherwise appear. For example, Doctors and Dentists have a limit on their income potential. They can only see a fixed number of patients in a day. And they have to be there for every single one of them. That’s linear. The same holds true for many top sales people, chiropractors and attorneys. Most of them don’t enjoy the benefits and power of a perpetual income.