Scaleable Income: What Is It?

In an earlier post, I asked you How Do You Make Money? If you read it, you’ll remember that I talked about three different types of income – salaries, side hustles, and passive income streams. That may leave you confused when I offer up another type of income: scaleable.

Scaleable income is a subset, and it fits within side hustles and passive income streams. In my opinion, scaleable income is the single most important type of income. Let me repeat that: I think scaleable income is more important than passive income.

Fortunately, most passive income is a form of scaleable income. But regardless of what type of income stream you develop, you need to be looking for scaleable income.

Scaleable income is the key to financial freedom.

What is Scaleable Income?

Earned Income relates directly to time. You work 40 hours a week to earn $1,000. With a side hustle, you write 10 articles a month for $100 an article, or you drive 25 people through Uber to make $1,000.

All of these examples are limited by time. Even if you managed to go without sleep and somehow worked around the clock, your income stops at a certain point. You can only earn so much.

Scaleable income, on the other hand, is not limited by time. You can continuously increase your income.


What are some examples of scaleable income?

Scaleable income is any income stream that you can grow independent of time. In terms of earned income, a sales job is one of the few examples of scaleable income, but even it has its limitations.

Rental properties offer scaleable income. You aren’t spending any of your time (or, a negligible amount) earning the money. The rental itself earns money while you can do other things.

Dividend and investment income are scaleable. You don’t have to do time consuming work to continue receiving the money.

Another great example, if done properly, is drop shipping. If you set up the appropriate avenues, you will make sales through drop shipping with a site like Shopify or Amazon without calling or actively promoting your products at all.

Essentially, scaleable income is any type of income that you don’t have to trade time for income.


How do you get started with scaleable income?

Scaleable income is not immediate. You have to invest up front to begin building your income stream, and you typically have to invest whenever you want to increase the scale of the operation.

That doesn’t mean investing money. In fact, more often than not, you need to invest heavy amounts of time up front to get your project going.

Whether it’s turning a room of your house into an Airbnb spot or setting up a Shopify store, you have to work to create a good product that will attract customers.

The majority of the investment comes in ensuring you give customers something of value. If they receive something that is worth their time and money, your sales or rentals or whatever will continue to grow and you can scale it up relatively easily.


How does it lead to financial freedom?

Scaleable income leads directly to financial freedom because you can continue to build up your income without committing more time. That way, you can eventually replace your own salary with scaleable income or passive income.

This type of earnings growth gives you the opportunity to begin making more exciting choices. You can quit your job and live off the money from your scaleable income, maintaining it and leaving your worries behind. Or, you can continue to work and put more money into savings without stressing about the energy you’re expending to make that extra income.

In the end, you are no longer enslaved to earned income or even traditional retirement plans. You gain complete control over your financial future.


Scaleable income is the key to gaining financial independence. It will eventually transition into truly passive income. If you get it to a point where you’re earning enough but your income streams require additional maintenance, you can even potentially hire someone to manage it for you, letting you retire early on a beach somewhere, with no cares or worries.


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