“Linear income” vs. “Passive income” explained:
Linear income can be best described as an income that is earned by trading your time for making money.
Simply put, the more hours that you spend working at your job, the more money you will make. And whenever you are not at work, you do not make money. That is basically what linear income is in a nutshell. You are trading a significant amount of time out of your life to receive a paycheck.
Linear income is by far the most common income of the poor and middle class because time is simply impossible to duplicate (or multiply).
However a passive income is exactly as it sounds “passive”, which means your time is not required for you to make money.
A passive income will generate money for you no matter where you are, of course assuming that you have taken the steps to generate that income in the first place.
Once you have successfully executed the process, you will receive income on a regular basis and you will no longer be required to trade any of your time for it to generate constantly.
Only passive income will allow you to become wealthy simply because it can be multiplied easily. The more passive income that you generate, the sooner you will become wealthy.
As a matter of fact, once you are successful in setting up one online passive income stream it is a lot easier to do it a second time, and then a third, and so on.
Those who truly understand the concept of passive income as opposed to linear income are drawn to affiliate marketing, programs and websites to make their dreams a reality.
How? By using subscription based affiliate programs.
How does it work? When an affiliate refers someone through the website’s affiliate program, if that referral upgrades their account, the affiliate will receive a percentage of that paid monthly subscription by way of commissions. That is now a passive income being generated because the affiliate will receive that monthly income every month no matter where or what that affiliate is doing. Now what is exciting is that the affiliate can repeat the process to grow that passive income into whatever amount he chooses to reach.
By the way, affiliate programs usually pay high commissions to affiliates because affiliate referrals are like free money to the website owner. This makes the website owner want to encourage the affiliate to send many more customers to his website. Everybody wins!
Take Wealthy Affiliate’s affiliate program for example: Joining Wealthy Affiliate’s online community is free for the first 7 days. After 7 days, Wealthy Affiliate members are encouraged to upgrade from free member to Premium Membership for $47 per month.
Affiliates of Wealthy Affiliate earn $22.50 (out of $47) for every referral who upgrades to Premium Membership.
Now to put it into perspective… affiliates themselves who are Premium Members are paying the membership fee of $47 per month.
Let us say an affiliate refers only 3 upgraded referrals which now earns him/her $22.50 per month (times 3 totaling $67.50 per month in “passive income”).
That $67.50 covers the affiliate’s $47 monthly membership fee (now making the Premium Membership FREE) while putting the affiliate into a profit of $20.00 per month income.
The affiliate is now in possession of a FREE online business that has the possibility of generating an unlimited passive income working from home (even while sleeping or on vacation as they say).
And guess what, we at WealthyClick.club didn’t even have to sell you anything… or did we?!
Hopefully you now have a good understanding of how creating wealth actually works.
The more advanced affiliate marketers who make money through affiliate websites while working from home “spend their time” developing “multiple” streams of “passive income” by following a blueprint called a “click/sales funnel” which will be explained to you in part #2.
Many individuals such as youself eventually come to realize that having a linear income will never allow them to become wealthy and have decided to try building passive income streams through the hard work that other’s have already done for them (like Wealthy Affiliate’ affiliate program).
So remember, once you have set up your passive income generating system, you will not need to micro-manage it to keep it generating revenue for you.
You simply spend your time multiplying it over and over and over again.
It is truly a (set it and forget it system as they say).
If you want to direct you actions towards getting this type of “passive income” system set up properly, click the 2). – Wealthy Affiliate Website button below.