Residual Money Making Vs Commission based earning

residual money making vs commission money makingI wanted to talk about the difference between residual money earning and commission based earnings…There is a massive difference between these two types of earning money online and offline…Let’s first look at what they both mean…

Commission earning : This is where we earn a one time commission of profit between the difference of the cost of the product. This is a common form of retail business in the world today.  Depending on the product depends on the profit or commission..

Residual earning : This form of earning is similar to what people call royalties, when you set up the income it may be small but it is different in the sense it is on a continual basis.. Make your sale and then receive a small monthly commission on that sale for the duration of the service etc…This form of selling works well with monthly bills or things that we spend on a monthly basis eg hosting, telephone, Internet, etc…Residual overall is becoming a smarter way to do business and requires less effort once set up to maintain…

Example of Commission earning : Selling a credit card, you get once off $50 dollars commission for the sale of the credit card from the company…

Example of Residual earning : Selling a credit card, you get $4 per month per card you sell, while the person has the credit card..

As you can see they both are money earners but after a year the second one is better for the seller of the item and that person may have that credit card for many years to come… Now imagine the compound effect when you sell like 50 credit cards..With the commission based you have earned $2500 dollar, good bit of money yes well done…but wait with the residual earnings you are being paid $200 dollars a month even if you took a holiday…That’s $2400 a year and you just set up the income in that one time…which one would you prefer , the answer is easy for that one…

It is always good to do the commission based sale as well…But to build an income in the long run is always better… Build it once and keep earning…

The example above is just an example and is not a representation of how credit cards is…It is to demonstrate the difference between the two items for sale in relation to the paying structure.

Comments

  1. Egor from http://3xincome.com says:

    Hi buyers web, I have been searching for Affiliate Programs and Residual Income and found your blog reg Residual Money Making Vs Commission based earning…Residual earning seems to be heaps better…

  2. DANIEL MARTINS says:

    Hey man, very nice ideas! Nice blog and article! I do prefer working as affiliate, when the subject is passive money! You provide a bit more open-mind ideas!

    Thanks for sharing!

Trackbacks

  1. 7 Residual Money Sites says:

    […] Residual Money Making Vs Commission based earningApr 20, 2008 residual money making vs commission money making I wanted to talk about the difference between […]

Speak Your Mind

*