Types of Income - II

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In continuation to previous post

Business income:

The type of income in which you trade people for money. Wait, that's human trafficking right!!!!. 

That's not what I meant. Income is obtained by employing people and trading their skills/expertise to make money. This is best source of income. And all the wealthy people fall under this category. You can't find 9-5 employee owing a Lamborghini unless you are a CEO of a multi billion dollar company.

Advantages:

Best source of income.
You will have team of specialised people working for you to make money
Best scalable type of income
You can start small and build an empire. Example Microsoft. All the capital that ever went in the company was 5000 dollars.

Disadvantages:

You should be ready to take risk
It takes time to build a brand. Apple didn't start out as an apple what it is today. A trillion dollar market cap and most valuable company in the world

Royalty income:

The income earned by creativity comes under this category. For example you write an ebook, someone reads it, you will get a share of profit in it. Scientists who invent a technology have patents on their name, each product that uses their technology, patent right cost go to them.
J.K. Rowling is an author of Harry potter which made her multi-millionaire through books, movie and merchandise

Advantages:

This type of income is purely out of passion and creativity
This is recursive income
This type of income has no bottleneck.

Disadvantages:

You have to be creative/follow scientific approach which is not everyone's cup of tea


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