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

Take a pay cut – double your income….

Recently I was talking with a coaching client who was bemoaning the fact that even with a PhD she’s only making $42,000 a year.  I agreed that was pretty marginal and we began discussing ways to leverage her education to increase her income.  As her degrees are in plant pathology we started looking at some specific areas of expertise she has that are very hot topics right now and how she could do a series of ebook on issues like mold prevention, growing your own organic herbs, success with African violets, etc. At $42,000 she is making $20/hr for her … Read More