Making Money & Income
First of all, our traditional education system will never teach you how to make money. Maybe at some higher level, there are some subjects about business and investing. But these subjects are also outdated and less relevant to the present time of money-making systems and rules.
The main focus and purpose of the education system are to force students to remember the textbooks and getting a degree. And then running for a job whole life.
In this post, I am going to share common and different types of income sources. These income sources are according to today’s age of internet and technology.
Before start making money, it’s really important to know about the different kinds and types of income. Because this will help you in understanding which types and methods suit your skillset and potential. This understanding will help you in persuading and choosing the right career for your life.
10 Types of Income:
1. Active & Earned Income
This is the most common type of income. In this type of income, we are trading our time for money. Our income will be only increasing with spending more time on work and job.
Because this kind of job works with our active participation. Wages, salaries, tips, commissions, etc are examples of active income.
2. Rental time
Rental income is a common income. When you allow your property to use by others and in return, they will pay you the rental income. The rental property can be a vehicle, house, land, plot, etc.
3. Royalty Income
Royalty income is your income for some kind of creation and result or output. Patent, copyright, music, books, films, etc. are common examples of Royalty income.
4. Business income
Business income is another common type of income. It’s a type of income when you are selling goods and services for profit. In other words, when your selling price of a good is more than the cost of production or purchase, it’s called business income.
5. Interest Income
Interest income is your income on the use of your money. When you give money to banks, businesses, or persons then they will pay you interest income for the use of your money for some specific time period.
6. Dividend Income
It’s a type of income you receive for a shareholding in the company. The company will pay you a dividend from profits according to the number of shares purchased or funds invested.
7. Marketing & Promotional Income
When a company reaches out to celebrities, athletes, or influencers and offered them a free product or fee for sharing pictures, videos, advice about their products and services with fans and followers.
For example, Rolando’s income from promoting the Nike brand is marketing and promotional income.
8. License, Branding, and Franchising Income
This income is the best among all types of income with low or no risk at all. When you give a license, or Franchise of your business, products, or service. Then these companies will pay you a yearly fee or sales-based fee as agreed in the agreement.
KFC’s franchise is an example of Licensing and franchising income.
9. Advertising Income
It’s a type of income when other companies want to advertise on your property or content.
Big boards on tall plazas and ads on blogs are the best examples of advertising income.
10. Freelance Income
This also earned income but according to your will and skills. You don’t need to be working in some office for 8 to 12 hours. But you can perform these works and jobs from home.
People will contact you for some specific task at a specific rate. It’s just limited to one task or objective and after the completion of tasks, you will free to work where and with whom you want.
I hope this post will help you in understanding the types of income. Learn here more about Income tips and Business ideas.