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Leveraged income for understanding

“leveraged income” is the opposite of an “active income”. Here’s a brief explanation. Leveraged income is characterized by income leveraged by your personal effort and time. It’s just not that simple. Above all, something has to be done about it. How this is possible can be found here in this article. Have a look at our average annual income disclosure.

Active income versus leveraged income

An active income is achieved through the use of work and time. So for normal work, you get a salary. The more you work, the more you earn, so the wishful thinking.

There is usually no work or time spent on income after retirement. Nevertheless, depending on the previously invested work, you receive a monthly pension – a “leveraged income”. This no longer requires a direct exchange of work and time. Similarly, no pension or leveraged income can be obtained without prior work and time. Check out our average annual income statement.


In the fight against stress: Searchers versus institutions

Leveraged income for understanding

A “leveraged income” is the opposite of an “active income”. Here’s a brief explanation. Leveraged income is characterized by income being earned over the long term and without time investment. It’s just not that simple. Above all, something has to be done about it.

Active income versus leveraged income

An active income is achieved through the use of work and time. So for normal work, you get a salary. The more you work, the more you earn, so the wishful thinking. The leveraged income from the previous activity for quite normal work, for example, is a pension. During the period of normal work, the pension was provided for. In retirement, no work or time is usually spent on an income. Nevertheless, one receives a monthly pension – a “leveraged income”. This no longer requires a direct exchange of work and time. Likewise, no pension or leveraged income can be achieved without prior work and time expenditure.

Direct income

Active income, symbolically the water carrier

The parable for a leveraged income: Are you a water carrier or already building your pipeline?

In an Italian village around 1800, two water bearers were sought. This was to ensure the supply of water to the village. Both water bearers did the job well. One of them lived well and also gladly spent his earnings in the tavern. The other did not like the fact that he was doing the same work day after day for many years. So he started to build a pipeline after work was done.

But he was laughed at by the people because after work he was still working on the construction of his pipeline. After a year of hard work, he had already completed half the way with the pipeline.

Direct Sales Pipeline

Leveaged income, symbolic of the pipeline

Because he had diverted the water, he only had to carry the water half the way.

This meant that the working day was over more quickly for him and he had time for the further construction of the pipeline. His friend the water carrier, was doing the same work since the beginning. His hard work and lifestyle have left their mark over time. He dragged the water buckets more and more laboriously day by day and as a reward himself into the tavern. Months passed and the pipeline was completed. None of the inhabitants laughed any more, quite the contrary, he was admired. What was special, however, was that he still received the same pay for the unit of measure from a water bucket, although he no longer towed water buckets. With the pipeline, he had created a leveraged income for himself.


career ladder

Hamster wheel or career ladder? Is there an alternative?

Back to reality, here and now. Are you on the hamster wheel or on the career ladder?

Is there an alternative? Yes, there is!

When exercising for an ordinary job is paid for regular work and time. Worst-case scenario, you lose your job. If you don’t work for a long time, you don’t get any money. Time is sold for money and you are in the hamster wheel.

Even if the company writes high profits, the majority of them go to the boss and the investors. Even if you are willing to work more, the available time is limited. Because the day has 24 hours for everyone. As soon as you are no longer able to do the work, you do not get any money and the standard of living can no longer be financed. Are you trapped in the hamster wheel or on the way up the career ladder? Everyone has to answer this question for himself.

As an alternative, there is a third answer. One possible way out is to build up a leveraged income in time. Have a look at our average annual income disclosure.


Opportunities for a leveraged income

These are very diverse and require extensive knowledge and expertise. What leveraged income suits me and what should I pay attention to?

First of all, a leveraged income is by no means a fast income, because building a business requires work and time.

However, anyone can build a sustainable leveraged income and business. The way of earning must also fit the personal lifestyle and personality. For many, the dream of a leveraged income very often ends unsuccessfully after their own social contacts have been “harvested”. Rarely do your own social contacts clearly correspond to the target group. The target group must match the product or service exactly.

There is no doubt that there are very successful people who have been able to build up a leveraged income and who started a long time ago.

However, it is a big mistake to adopt their way of working 1:1 into today’s world. Their success is based on their way of working in the past at that time in the respective culture. That is why this is virtually out of date in this day and time. Above all, there are cultural differences. In addition, digitization poses new challenges to today’s business models. In summary, there is only one constant in the market and that is called change. Changing market conditions require a constant adaptation of existing concepts in a temporal context. Without prior employment of work and time, no leveraged income can be achieved. Below a few possibilities are taken up and briefly explained.

Direct Sales vs. Single-Level-Marketing (SLM) vs. Multi-Level-Marketing (MLM) vs. Network-Marketing vs. Structural Sales.

These are the most popular options for career changers. Everyone wants to build a leveraged income. What do the terms mean? Direct sales initially mean that the products are sold independently of the stationary trade. The personal contact between seller and consumer is characteristic. Single-Level-Marketing (SLM) means that members earn their income solely by selling to individual consumers. Multi-level marketing (MLM) refers to the form of organization. It offers every entrepreneur the chance to generate an income that corresponds to his personal performance. Additional members are recruited in order to earn money from their sales. Further terms based on MLM are Network Marketing and Structural Sales. Network marketing describes the sales structure via a network. Structure Sales describes the sale of enterprise services using a sales structure. A demarcation to the forbidden pyramid game can be found on the website of the Austrian Federal Economic Chamber (WKO).


Leveraged income using the example of direct sales vs. distribution with sales assistants

Leveraged income using the example of direct sales vs. distribution with sales assistants

Members in direct sales ensure personal customer contact and sales promotion. In direct sales, goods are delivered directly from the manufacturer to the end consumer. Since there are no wholesalers and dealers, the commission in direct sales flows directly from the provider to the member. In multi-level marketing (MLM), additional members are recruited in order to earn money from their sales. The members are the sales assistants. Sales assistants are legally independent natural or legal persons who support the sales process.

For scalability, the number of members and the number of end-users must be arbitrarily expandable. What are prerequisites to generate a leveraged income, around the clock, and all year round. The more members and consumers there are, the higher the chance of a leveraged income. Have a look at our average annual income disclosure.

In the case of distribution with a sales assistant, the goods are not delivered directly to the end consumer. Hence the term indirect sales. The goods are distributed to the final consumer via wholesalers and/or dealers. All participants in the sales channel participate in the value chain. The following video illustrates the difference between the described sales channels Direct Sales and Indirect Sales.


Leveraged income using the example of direct sales versus distribution with sales assistants

Members in direct sales ensure personal customer contact and sales promotion. In direct sales, goods are delivered directly from the manufacturer to the end consumer. Since there are no wholesalers and dealers, the commission in direct sales flows directly from the provider to the member. In multi-level marketing (MLM), additional members are recruited in order to earn money from their sales. The members are the sales assistants. Sales assistants are legally independent natural or legal persons who support the sales process. For scalability, the number of members and the number of end-users must be arbitrarily expandable. That are prerequisites to generate a levearged income, around the clock and all year round. The more members and consumers there are, the higher the chance of a leveraged income.

In the case of distribution with a sales assistant, the goods are not delivered directly to the end consumer. Hence the term indirect sales. The goods are distributed to the final consumer via wholesalers and/or dealers. All participants in the sales channel participate in the value chain. The following video illustrates the difference between the described sales channels Direct Sales and Indirect Sales.


Leveraged income using the example of multi-level marketing (MLM) for tradespeople

Facilities are not likely to need more customers. Can, however, derive more from their customer base. For a leveraged income, we, therefore, concentrate on four key features using LifeVantage as an example.

The customer problem:

Psychological problems as a result of stress often manifest themselves in physical problems. With the free service STRESSFREI, people are offered a decisive added value. Because the blog STRESS-FREE and the groups on Facebook and LinkedIn dedicated to stress management and work-life balance. Facilities have the opportunity to present themselves in the groups free of charge. In this way, seekers can be helped. Searchers can also contact institutions directly. The STRESS-FREE card can be issued free of charge in facilities such as masseurs, therapists and professionals. The one who feels addressed by it will be interested in it. As well as facilities can offer products for stress reduction.

Novelty and uniqueness:

It began with the scientific breakthrough of Dr. Joe McCord A worldwide recognized co-discoverer of “Free Radical Biology” ~15 years ago. For his work, he received the medal of the Franklin Institute, which puts him on the same level as Pierre and Marie Curie and Henry Ford. The groundbreaking science happens on the basis of NRF2 activation. This is one of the most promising breakthroughs in the history of health. Since then, the products have been expanded with the help of nutrigenomics. Further information on the product range can be found here. Detailed information can also be found in the download section.

Be there from the beginning:

LifeVantage’s products have only been available on the Austrian market since September 2018. LifeVantage is headquartered near Salt Lake City, Sandy, UT 84070 / USA. LifeVantage is a publicly-traded company with annual sales of USD 200 million. The European market has not yet been served. The BIOHACKER.TEAM offers ready-developed marketing for business development. As well as individual care and professional support based on many years of international experience. More about the contact person can be found on LinkedIn or in the Contact.

Scalability:

Marketing is completely scalable. New members and consumers can participate in the business model without limit (downline). Institutions can gain more from their regular customers. The revenues are used to reduce the fixed costs of facilities. Employees can be integrated into the business model and are thus tied to institutions. In summary, institutions can build a sustainable leveraged income.

From a tax point of view, it makes no difference whether the income is an active or leveraged income. For those who paid income tax, it is income. For start-ups and entrepreneurs, it is income. Income and revenue are subject to tax.