In part two of this series, we will answer another popular question, which is “Is it better to earn residual income or employee wages?” This is a complicated question, as some people think that employee wages provide more security, while others think that residuals are the way to build your income without doing much work. There are many ways to look at this issue, but first, it is important to know the differences between the two.
If you have not read my previous posting about what Residual Income is, you can do so by clicking here. Start there before you read this posting.
What’s the Difference between Residual Income and Employee Wages?
The difference between employee wages and residual income is very simple. When you are being paid a wage you will get paid a certain amount for every hour that you work. Most people earn their money this way, as it is the tried and true method to get paid for every hour that you work. Another commonality with people that earn employee wages is that they always wish their hourly pay was higher.
Residual income, as discussed in part one of this series, is money you make from work that you have done in the past. In MLM this is usually in the form of commissions or profits you have earned from someone in your network. The question remains, which is better?
Residual Income: Get Paid Over and Over For Working Hard One-Time
When it comes to the best ways to get paid, residual income is far better than employee wages, here is why:
-When you work for employee wages you will be paid only once for that hour of work. If you make ten dollars per hour then you will get ten dollars for that hour and you will never be paid for it again.
-With residual income, you can be paid several times for that hour of work. If you work 5 hours one day recruiting new people for your network, or selling products to customers then you will be paid for that time with commissions, possibly right away. The difference is that you can continue to earn money for these hours of work, even after the work is over. Earning ongoing commissions from customers and earning from sales members of your MLM network make allows you to make money from your work more than once, which is the biggest advantage of residual income over employee wages.
-Some people will tell you that residual income is not as secure as employee wages. This is somewhat true, as with employee wages you will always know exactly what you are going to get. However, residual income can offer just as much security. After all, you can continue to work an hourly wage or other types of job while you are earning residuals. In the end, residual income really just allows you to supplement your income without doing any extra work.
Now that you know why residual income is better than employee wages, it is time to move onto the next part of the series, which will break down the differences between residual income and passive income. You can do so by clicking here. Things are getting interesting! Enjoy!