1. An Income Model Comparison And Why I Think The Online
Home Business Idea Comes Up Tops – Part 1
As you might have noticed, my website here at OnlineHomeBusinessIdeas.org is all about
creating your very own home business using the Internet. What might not be so readily
apparent, however, is why i chose this path and why i think it’s one of the best income models
available today.
With that in mind this page is going to discuss the most common ways we strive to earn money,
and provide a comparison of the different approaches people can take.
Please note, these are my thoughts on the subject, based on my personal experience in three
of the four categories i am going to discuss, although the overall model and labels were
borrowed from a Robert Kyosaki income quadrant diagram.
Income Model Comparisons
Employee
Essentially at the bottom of the income ladder is being an employee, meaning you work for
someone else and get paid respective to the amount of hours you spend working.
Some jobs also include a performance or profit sharing bonus as an incentive to work harder,
but you can guarantee that the company gets a bigger share of the profits from the extra hours
and hard work than you get for actually doing it.
You may get pay raises and promotions (now and then… depending on the economy, and
company performance), but you have to work hard and earn them and hope others aren’t
fighting for the same and doing it better than you are.
Now it’s definitely true that some jobs are very high paying, but it’s also true that most jobs
aren’t. To be well paid you usually need many years of experience following a long education
(think Doctors including Residency, or a lawyer including Bar exams).
Before moving into the online home business arena i was working as a Business Analyst
earning over $70k per year.
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2. There are some ‘Benefits’ to being an employee:
You get paid regularly – although how much you get depends on what the job rate is and
how many hours you worked.
You have a good understanding of what is expected of you
You may get Insurance coverage – although a lot of jobs don’t offer insurance,
especially at the low end of the scale.
You will learn useful skills over the years while you are building someone elses dream
for them.
You have the opportunity of overtime to get more money…
Problems of being an Employee:
Pay rate is usually set and doesn’t change very often.
Income potential is severely limited as you can only work so many hours a day.
You may need to work odd hours, at night, weekends, public holidays.
You have to get from your home to where you work everyday, even in the rain, or
freezing blizzard…
You are being paid for the time you spend working, while the business owner is profiting
off your hard work.
You have a boss telling you to work harder, come in earlier, work over lunch, your work
isn’t up-to-standard…
Self Employed
This is where you take your years of experience, education, and ideas, typically earned from a
job or university, and open your own business offering the services you are skilled in. This can
be anything from offering consultancy services to plumbing, roofing, child-minding, etc.
Being self employed means you are your own boss, and you manage pretty much every aspect
of your employment without anyone standing over you telling you what to do or giving you
deadlines.
What are the benefits of being Self-Employed?
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3. Typically no commute to work
No boss standing over you, breathing down your neck.
You can, depending on the type of home business, set your own work schedule and
hours.
You tend to need expert knowledge, skills, or training to go self-employed
Being self-employed takes dedication, motivation, and persistence – without a boss or
co-worker to spur you on, it’s up to you to keep yourself motivated.
Time control – you still need to put in hours to get paid, but you have some control over
when you spend those hours.
What are the problems with being Self-Employed?
Having to deal with getting your own Insurance.
Finding Clients and Customers.
You are still trading time for money – you only get paid when you work.
You may have equipment costs or other expense overhead to figure in.
When i was self employed, i loved being able to work from home, i didn’t have to get up
at any particular time, i could take breaks whenever i wanted – the only concern was
getting enough work to pay the bills and get by.
Next: Becoming a Business Owner ==>
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