If you are an Internet entrepreneur, or want to start an Internet business, you must know these 3 types of income that every web entrepreneur should generate. That way you will not only build a solid business on the Internet, but you will also have the freedom to expand more and more. The correct vision is to arm your business in such a way that there is a transition from linear income to passive income over time.
Internet business is booming. Apart from requiring a relatively low initial investment, they offer other very attractive advantages such as being able to work from anywhere, time flexibility and being able to reach a globalized market.
Another of the most convenient features is that it allows you to automate the sales and collections system. That way the web entrepreneur can literally make money while sleeping.
In order to reach that level of freedom, the web entrepreneur must generate these 3 different types of income:
1. Linear money actively earned
2. Money earned from operating leverage
3. Passive money
1. Linear money:
It takes work to deliver value to others. It is the type of income that most people receive: they work giving their skills, experience and wisdom in exchange for money.
This type of income is very useful in an Internet business, since it allows generating quite interesting income in the form of coaching or personal consulting, a service for which people are willing to pay a high price, as long as the expert is from your confidence.
Other examples of making linear money online are through consultancies, exhibitions, trainings, consulting and web page designs.
The great limitation of this type of income is that it has a natural ceiling: it is limited by the availability of time for the web entrepreneur. An Internet business that only generates this type of income is limited in its growth and very soon leads to the burden and exhaustion of the business owner.
That is why it is very important that the Internet entrepreneur builds his business in such a way that he can leverage his efforts and earn more money with the same job and even get to work once and then earn money again and again.
2. Money earned from operating leverage:
Operating leverage, according to Wikipedia, occurs when the growth of total costs is less than that of the income obtained from the sale of a higher volume of products, so that the profit increases much more than it would if it did not exist. leverage.
The great advantage of this type of income is that it also requires work to deliver value, but it is done on a larger scale. The internet entrepreneur delivers the same value, but in a group format.
This way you get a very high return on your investment.
For example, a coach who delivers his knowledge to a particular client for a work session of 1,000 USD, could use the same time - delivering the same knowledge - to a group of 20 people for 500 USD per person and thus multiply his earnings by plus 6 times.
Other ways to earn this type of income on the web, apart from group coaching: mastermind groups, conferences, traditional membership sites, etc.
3. Passive income:
It is a type of income that, once established, does not need more work (or only a minimum of supervision) on the part of whoever gets it.
In other words: it only requires a minimum of additional work to deliver value.
Some of the best known passive sources of income in the offline world are:
• Interest generated in bank accounts or deposits.
• Dividends from stocks, bonds, or a similar financial vehicle.
• Income from rental of inert goods.
• Intellectual property.
On the Internet, passive income is received when the web entrepreneur "packages" his knowledge and automatically sells it. The fundamental concept is: work once and earn money time after time, for months and even years.
The interesting thing is that the Internet allows the value to be delivered automatically, even in exchange for recurring money.
Some examples of products that generate passive income on the Internet:
• eBooks and online courses
• CD and DVD
• Home study courses
• Affiliate Products
• Internet software
• Licenses and Royalties
• Low maintenance membership sites
Without a doubt, the latter is the most interesting type of income, since it allows you to earn more and more money with less and less work. Thus the Internet entrepreneur has more freedom and can dedicate himself to the growth of his company or the creation of new sources of income.
