Different Types of Income Streams - How many do you have?

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Almost everyone in the world is looking for ways to earn income as you grow. We need it to pay for food, home, travel, family, medical, or anything one wants to do. Most of people have only one kind of income stream. Key to success & take risks in life is developing multiple income streams. This will not only help you fulfill the needs but also reduce the mental pressure & you can think of ideas to create value in the ecosystem. Let's discuss few types of income streams:

Earned Income

This is the type of income most of us have. We do job/work or sell our skills to earn money. Almost everyone is aware of it & after college or getting education we always look for ways to land on a good job to have a better income. Others do tough jobs and get paid. It's one of the hard thing & requires consistent effort & energy. If you lose health or in someway can't do job, you loses the benefits & all the income.

Profit Income

Profit income comes from buying something cheaper & selling it for a better price. or Sometime creating something from raw materials & selling it to take out profits. Most of the business falling this category & is also quite common. We all use & buy things someone else has crafted.

Interest Income

Interest Income is mostly the way banks operate. If you have good amount of money saved, you can borrow it to others and have them pay interests. This type of income needs a good capital to start from. Although now a days we can save money in bank saving accounts and earn interest on it. Technically bank uses that money to lend & shares small amount of profits with holders. This income stream is not one of best way as one can make more money with other income streams, but definitely it requires less effort & so are the returns.

Residual Income

This type of income has became common after boom of internet. Residual income is when one gets paid after a long time of completing a work. For example, writing a book, when a good amount of books are sold one can get some decent amount of money. The best part here than earned income is you no more need to spend time to generate income. Once the value you provided is good enough, it would keep generating income over some time.

Dividend Income

We all know we get dividends from owning stocks. This is one of common income stream after interests from banks. Basically the stocks are publicly traded shares of company & mega companies often pay a nice part of their earnings in the for of dividends to it's shareholders. This can also be risky due to variation in stock market & businesses. but this can also lead to higher returns in long run if good research is made.

Rental Income

If you own an asset, rent it to others & earn some money. This is very common in case of land & real estate business. If you own a property or an apartment, a nice amount of money can be made. with advancement of technology & internet now more renting opportunities are available. This category can also produce capital gain income which is discussed in next section. This one is must to have for people. I myself plan to create one in near future.

Capital Gains

If one of the asset you hold increases in price overtime, the incomes generated by it is known as capital gains. People hold gold, precious metals, land, properties, stocks and many other things to get capital gains. Now a days even crypto can be held for capital gains. We are all familiar with Bitcoin example, that if you have bought one 10 years ago, how much capital one must have gained.

Royalty Income

Royalty income comes from selling your ideas or products or inventions. If someone else uses your idea to generate income they pay a part of it to creator as a royalty. This one is really hard to get in as you may have to think an idea which is unique. Brands do it in form of having franchises, once they get popular and have good products. Anybody who uses the same brand name pays a cut to brand.

Do you know any other form of income? let me know in comments.


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Love it! Everyone should develop multiple streams of income, but it's not for everyone, only for those with a strong will and good work ethic.

I've interviewed with 6 different firms in the last few months and you wouldn't believe how many recruiters or hiring managers were taken back when I tell them I'm currently self employed. Like they expect me to just be sitting on my ass and collecting government cheques or something..

That's how I know which companies are looking for legit self starters with entrepreneurial spirit and those looking to hire dummies to just fill the ranks.

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Indeed. Here startup & tech-companies are a bit flexible in those terms. Else everyone wants to get you ass kicked with extra work within fixed salaries & don't promote the build up culture to create values and healthy environment.

Good luck in landing a dream job/business.

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As an insurance agent, I am always looking for more revenue streams. I will be getting my health license. That will open up new areas. There is also a growing need for debt elimination. I will be working with a company on that as well.
Outside of my "real" job, I am actively engaged on Hive/LEO, etc. This is another great source for more income. I am always looking for places to put my HP/LP/CTP to work for me. There is no point in keeping it idle.

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Thanks for stopping by. Good Luck.
My 2nd source of income is also hive space. I haven't cashed out yet by I'm diversifying within hive and taking part in almost every project. Mainly I'm building it to a point that It can compete with my monthly income.

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There are lots of niches for income, using the various methods you described here. I think the most helpful advice you can get is to find something that won't burn you out so you can consistently do it over time. Don't worry if it's just pennies the first few weeks, just keep going. You'll see pennies double, quadruple over time as you show sustained effort in one or two areas with the highest quality you can afford to do. The more passionate you feel - that "Oh boy i can't wait" - the better for your audience, if your venture is sustained by audience reception.

  • Consistency, every day, one thing!
  • Suited to you, not a gigantic burden
  • Best quality you can do and not too much
  • Do research to make yourself the best version for the work you choose to pursue - blogging, video reviews, whatever

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