Why profits are better than wages

Dan explores some fundamental questions: what is the difference between residual income and linear income in both providing security and motivation?

This is a tough issue.  We are in a culture that has taught us to expect wages for our time.  The person who makes $10/hr wants $12 and so on.  The attorney who makes $100/hr wants to work his/her way up to $200.  Whatever the level, we’re talking about wages, or linear income.  Is your income linear or residual?  Here’s how you can tell.  Just ask yourself this question:  “How many times do you get paid for every hour you work?”  If you answered, “Only once,” then your income is linear – you are making wages.  Salaries offer linear income. Doctors … Read More

I just want security, great pay and no stress

I had a young man come in as a client who wants to find a “stable, secure and enjoyable” career path.  He received a degree in marketing six years ago but has been frustrated in the jobs he has had.  Employers seem to want clear results from his efforts and he resists being pushed so hard.  He clearly stated that he wants a job with security, no stress, and at least $45K that he will find enjoyable. Unfortunately, he has the process reversed.  He is standing in front of the stove of life saying, “Give me heat and then I’ll … Read More

Job Security – No Problem

Last week I had lunch with a young guy in the banking industry.  I met Al about 10 years ago when he was just a teller and hadn’t seen him since then.  Today he pulled up to the restaurant in a gorgeous new Infinity, had on a stunning suit and is now the community director of a very powerful bank.  I knew little about what had transpired for him in those last ten years – but I do know he’s in an industry that has been struggling and has a whole lot of people who have been let go. However, … Read More