I learnt about the value of the most important type of online business income the hard way.

In 2006, I was in my 20s and looking for any way to generate money.

At that time in my life I was a new university graduate and had no income at all. I was living rent-free in the corner of my brother’s condo in Downtown Toronto and was relying completely on my parents to

support myself…

…so any money would have been good money!

Instead of getting a corporate job where I answered to a boss, I wanted to own my own business, and be my own boss.

But I didn’t have hundreds of thousands of dollars to start a McDonalds or Tim Hortons franchise, or buy a huge real estate portfolio…so the Internet really was the only choice I had.

I had read amazing story after amazing story of guys using the Internet to free themselves by the time they were 30 years old…and I wanted to be one of them!

So I began searching online for any information I could find on how to build an online income.

One of the first products I bought was a $197 “guru” online training program. This training outlined how people were making a killing selling

PDF e-books for $47 a pop. All I had to do was drive people to an online sales page and sell as many e-books as possible.

This method of making money online didn’t rely on search engine optimization or search engine rankings. Instead I would spend money on

paid advertising and as long as my ad spend was less than my e-book sales revenue I’d be making bank!

I thought I would sell a $47 e-book online forever, making $10,000 per month while travelling and surfing around the world.  The sales of this e-book would give me the freedom I dreamt of.

So I got to work and started buying online ads…at that time Google Adwords and Microsoft Bing Ads were the big giants in the market place.

Guess what?

It didn’t quite work out!

Yeah, I some times made as many as 40 sales a month but no one explained to me how difficult it was going to be to sell 200 copies of an e-book consistently, month after month, to hit my $10,000 monthly goal.

And this was before removing the cost of the Google and Bing Ads.

Looking back now it seems ridiculous that I actually thought I could generate enough income to support my dream lifestyle selling a single PDF ebook.

Every Morning I Woke Up To ZERO

The problem was that I was building an online business that was only generating what is called Linear Income.

Linear income requires you to trade your time and skills for money. This is the type of income that a 9-5 job provides.

As an employee, every day you go into work and for every hour of work you put in you are paid a fixed amount for that hour.

If you put in 7 hours of work that day, you are paid for 7 hours of work. Every day you start at ZERO and have to put in your 7 hours to make money.

The worst part is you are only paid what YOUR BOSS thinks your time and skills are worth.

But this is also the type of income I was making as a new, aspiring online entrepreneur.

Instead of being an employee and “having” a job…I “owned” a job…and this job required me to trade my time for money.

Even if I made $1,000 in sales of my e-book the day before, every single morning I woke up to ZERO sales.

Every day I had to sacrifice the same 7-8 hours of my day to constantly drive as many people to an online sales page to make sales that day. If I didn’t I would never hit my monthly target of 200 sales and $10,000.

Most Self-Employed People Are Making The Wrong Income

You see I stupidly thought I was on the path to becoming a business owner but really I was just becoming self-employed. The problem is this is the same income all “self-employed” people with their own businesses work for.

Whether you are a lawyer, doctor, fitness trainer, yoga instructor or run a “ma-and-pa” family restaurant. You don’t make money unless you are working.

Your business only generates linear income…income that requires your attention, presence and skills at all times. You are stuck working in a business you own.

Most people that are new to online marketing falsely believe that if they start an online business, or use the Internet to help bring in more customers to their offline business, that they are going to achieve a freedom lifestyle.

This just doesn’t happen until you start focusing on the most important type of income that your online business must generate.

I call this type of income FREEDOM INCOME!

Shift Your Income From Linear Income To Freedom Income

Your freedom income is the money that will give you the time freedom you are seeking as an online entrepreneur to do the things you truly love in the life with your loved ones. This is the freedom that you truly deserve!

Freedom income does this by providing you with recurring revenue; a predictable and stable flow of money that comes in month after month like clockwork!

This type of income is truly passive and residual because after you make that initial sale you continue to get paid over and over and over again whether you are putting in time working or not!

You could be laying on a beach in Barbados with your wife or scuba

diving the Great Barrier Reef in Australia with your kids and the money

will continue to flow in.

This is the type of business income that allows you to spend less time always stressing about making sales.

You stop thinking about how many e-books you have to sell today…or

how many clients you MUST book into your calendar to stay afloat.

Instead you have peace of mind and can decide what you want to focus on.

Now You Have The Freedom To Focus On You…

If you don’t want to work on your business today you can do whatever YOU want. You can focus on things like…

• Spending time with your loved ones and family
• Pursuing your passions and hobbies
• Being present as your kids grow up
• Taking trips to see more parts of the world
• Or maybe even volunteering to support a cause you are passionate about.

You see this type of income allows you to not only create money but have the time to enjoy it.

The Best Type of Online Freedom Income

So there are a number of different sources of freedom income being

generated by both online and offline businesses all around you. You are

even paying some of them right now!

Think of…

• Your cellphone plan
• Your gym membership
• Your cable TV or Netflix subscription
• Your magazine or newspaper subscription

But the most common online freedom income that you need to have in your online business, and the ones that I have in mine, are online memberships and premium monthly newsletters.

Customers who take you up on an online membership program or monthly newsletter subscription are paying you month after month to access extremely high-value content from you or the company you are promoting.

It is usually your best customers, your raving fans, that choose these online offers because they are serious about achieving extreme results. They know that the monthly fee is worth the value they are receiving from these offers. These customers will become your best case-studies and testimonials that help your business grow faster.

So if you aren’t generating freedom income in your business or life right now and are therefore relying on trading your time and skills for money, I highly recommend that you start looking to incorporate some source of recurring revenue as soon as possible.