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PLEASE
GET BACK TO THE
PERSON WHO INVITED YOU TO
THIS PAGE |
Definition
of
linear - Income |
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The
income a person receives from the work s/he does.
For this one needs to put in certain number of hours every
week as work. |
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Definition
of
Residual - Income |
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Most
think of income as wages earned for a day's work.
Residual income is different because it continues
pay out long after the initial effort of earning it has
passed. |
Linear
: Income is an exchange of money for a devotion of
time.
An employer agrees to pay a worker a wage in
exchange for certain
enumerated services based on the employee's level
of education or
accumulated expertise within a given industry.
How much the worker earns depends on the type of employment.
An employer may elect to pay an employee in a
number of ways,
including an hourly wage,
a fixed salary or a commission wage based on total
product sales.
Linear income is directly proportional to the number
of hours invested in it
(40 hrs. of pay for 40 hrs. of
work)
| Residual
Income:
Is a percentage of the profit generated from the sale of
product.
As the volume of product increases with sales
turnover within the network,
the percentage of the profit generated from the product
turnover will also increase.
Residual Income:
is income that continues to be generated after the initial
effort has been expended.
Compare this to what most people focus on earning: linear
income, which is
"one-shot" compensation or payment in the form of a fee,
wage, commission or salary.
Residual Income:
is that once things are set in motion,
you continue making money from your initial efforts,
while gaining time to devote to other things...
such as generating more streams of residual income! |
MLM
Directory Comparison
www.azam.biz/residual - income The
Direct Selling Association of Australia
Retire-Early-by-Building-Residual-Income what-i-learned-in-30-days-about-what-is-multi-level-marketing
would-you-join-a-multi-level-marketing-company-for-retirement-income
What
is Direct Selling?
Direct selling is the sale of a consumer product or service,
person-to-person, away from a fixed retail location,
marketed
through independent sales representatives who are sometimes also
referred to as consultants, distributors or other titles.
Direct
sellers are not employees of the company.
They are independent
contractors who market and sell the products or services of a company
in return for a commission on those sales.
What is Network marketing ?
Also known as Multi-level marketing, is a form of marketing model that
was started decades ago.
The model uses direct sales to consumers through relations
and word of mouth from the company's team of marketers.
In this marketing model, the distributor is not only paid for the sales
they make but also for successful referrals that they
bring to the program or to the company.
What
is A Pyramid Scheme?
A pyramid scheme is an unsustainable business model that involves
promising
participants payment or services, primarily for enrolling
other people into the scheme,
rather than supplying any real investment or sale of products
or services to the public.
That is, services are an example of intangible economic goods.
What
is Multi-level marketing?
(MLM) is a marketing strategy in which the sales force is compensated
not only for sales they generate,
but also for the sales of the other salespeople that they
recruit.
This recruited sales force is referred to as the participant's "down
line", and can provide multiple levels of compensation
What
is A FRANCHISEE
pays an initial fee and ongoing royalties to a franchisor;
in return, the franchisee gains the use of a trademark,
ongoing support from the franchisor,
and the right to use the franchisor's system of doing
business and sell its products or services
What
is Affiliate marketing
at its very core, it is about relationships.
A relationship between three parties: In the world of Affiliate
marketing,
an advertiser can be a company selling a product like
electronics, airline tickets,
clothing or car parts, or an advertiser could also be an
insurance company selling policies.
What
is A Ponzi?
Is a fraudulent investment operation where the operator,
an individual or organization,pays returns to its investors
from new capital paid
to the operators by new investors, rather than from profit
earned by the operator.
What
is Chain mail
A typical chain letter includes names and addresses of several
individuals whom you may or may not know.
You are instructed to send a certain amount of money--usually $5--to
the person at the top of the list,
and then eliminate that name and add yours to the bottom.
You are then instructed to mail copies of the letter to a few more
individuals who will hopefully repeat the entire process.
The letter promises that if they follow the same procedure,
your name will gradually move to the top of the list and
you'll receive money lots of it.
Chain letters are simply low payment pyramid schemes in an envelope,
so, like them,
they make money only for the first few on the list. All the
others lose their money.
Chain Letter Scams that are Pyramid Schemes or Urban Myths
(crimes-of-persuasion.com)
What
is A Gifting club?
Many Oregonians are being defrauded by unlawful pyramid schemes
operating under the guise of so-called "gifting clubs"
such as the Dinner Club or Women's Empowerment Network.
These "clubs" are elaborate scams designed to make money for a few at
the expense of many.
The promoters of the scheme claim that IRS regulations allow people to
"gift" one another up to $10,000 per year tax free.
For example, persons are asked to pay $5,000 to enter at the bottom of
the pyramid or "tree" along with others.
As
these people encourage others to join the club, they rise on the tree
to the top position, where the total amount collected from
"gifts" is $40,000, a $35,000 profit. Often, people at the
top re-invest another $5,000 and start the process anew.
Each
of the eight persons just entering the tree delivers his/her $5,000
"gift" directly to the person at the top of the pyramid.
This also helps convince new players that they will eventually receive
a $35,000 return on their "gift."
These schemes are doomed to failure. Each "tree" involves 8 persons who
"gift" $5,000 each.
The
person at the top of the tree gets $40,000 and the other 7 people hope
that enough players come on board to push them to the top.
For each person at the top, there are 8 people who are likely to lose
their investment and the chance of a big "payoff."
Eventually, these schemes collapse because they run out of prospective
participants.
No matter what the promoters may tell you, gifting clubs are illegal.
They are unlawful pyramid schemes.
Gifting clubs and pyramids have not been approved by the Oregon
Attorney General, local district attorneys,
or the Division of Finance and Corporate Securities.
Operating or participating in a pyramid scheme violates
Oregon's Unlawful Trade Practices Act, which imposes civil
penalties of up to $25,000 per violation.
Gifting clubs and pyramid schemes may also violate Oregon securities
laws by virtue of being investment contracts.
Oregon law requires securities to be registered and licenses for
persons engaged in transacting business in securities.
A
violation of the securities laws could subject a person to civil
penalties of up to $20,000 per violation, or criminal prosecution as a
class B felony.
The IRS does not recognize gifting clubs or
pyramid schemes and considers all money gained from these schemes to be
reportable income.
Failing to report income from pyramid schemes on your tax return,
or attempting to hide such monies may subject you to severe
federal civil and criminal penalties. |
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