July 30th, 2010 admin
Recently I have been approached by an unusually high number of friends and acquaintances giving me “the pitch” on a new MLM scam… uh I mean Scheme (Freudian Slip). This is to be expected I supposed in our current economic state. Unemployment is at recent highs and even those who are gainfully employed are facing financial difficulties as a spouse may be unemployed or at the least haven’t seen an increase in income in many years.
I try to be a good steward of the resources I feel that God has given me. In my core value system, I feel the need to take great steps in research, and prayer prior to making a significant decision that will impact the finances of my family. I must admit, that I always have been HIGHLY skeptical of all pyramid schemes and MLM “opportunities”. With the recent influx of solicitations, I decided to share some great resources with the few who will read this blog.
My first gut check reaction comes from the very basic laws of the universe that I learned very early in university studying Mechanical Engineering. The law is the Conservation of Energy. It basically states you cannot get more “stuff” out of a “system” than that what is put in. This has and always will apply to MLMs. This in itself is enough to steer me away. One look at how much money those top level recruiters are making and I am running in the opposite direction. Others may look at that as a motivation to sign up, but I see it in a different light.
If top level recruiters (or distributors as they are called in many cases) are making that much money, then logic dictates that they are consuming a large amount of resources in the “system” and GREATLY reducing the chance for you to have a nibble of the pie. At the very fundamental level, making money in a MLM is highly unlikely.
Beyond, my gut instincts, I have found a wealth of knowledge reinforcing my opinions on MLMs and how little of a chance there is to make money with them. The website MLM-TheTruth.com stood out. There are many articles and statistics on this website to help you understand the reality of MLM. One particular article that stood out is, “How do the odds of profiting in MLM compare to gambling?“. Here’s a hint, go to Vegas and have fun rather than signing up with that MLM. Your chances of walking away with more cash rather than less cash are GREATER!
Posted in Business, Making Money Online | 1 Comment »
February 12th, 2009 admin
If you are trying to start an online business, chances are you have a least thought about selling products online. With the power of the internet today it is easier than ever to procure and distribute goods regionally, nationally and even globally using basic ecommerce models. Discount shipping providers like UPS and FedEx make it easier than ever to create a track global shipments and it can all be done from your home office.
But what about payments? What if you want to accept electronic payments? What if you would like to accept all major credit cards (Visa, Master Card and American Express)? Not all small busniess owners are ready for the often heavy investments of credit card authorization terminals and the fees associated with these services. Where can one turn to for a low cost, no up front investment credit card checkout shopping cart service?
There are two great options available today. Perhaps the largest and most popular is PayPal’s checkout and cart tool. This out of the box provides very simple integration. Users can create “Buy It Now” style buttons for products and/or services that sends customers directly to the checkout after the first product or “Add to Cart” buttons to allow multiple product purchases.
The second option is Google’s new checkout system. Google has recently added great new tools to allow you to add a very impressive and professional shopping cart to almost any site. This one seems to work a bit better with the floating shopping kart that follows you around and shows what you have added so far. The tool works much like PayPal’s in that you can generate BIY buttons or add to cart style buttons.
The other difference to note is the fee structures. While true terminal services credit card authorization services may require a larger up front investment and equipment purchase, their per transaction fees are significantly lower than both PayPal or Google Checkout. PayPal charges 2.9% plus 30 cents per transaction on sales up to $3,000 a month. Google’s fee is 2% of the sale plus 20 cents, less if the merchant is a Google advertiser.
Another recent benefit released via the Google Checkout blog is that merchants who use FedEx can save up to 21% on their shipping costs. Google?s blog post can be read here. PayPal offers a ?Shipping Center? but there are no special incentive shipping rates with carriers, just free USPS and eBay branded boxes for your business.
Posted in Business, Making Money Online, Web Development | 2 Comments »
August 19th, 2008 admin
So you have a great idea for a new business. You thought it through and are sure it will be a success! All you can think of is the incredible success and rewards that this new business venture will bring you. Great! So what now?
One of the most important and yet challenging aspects of starting any business is securing a line of funding. Unless you are lucky enough to have enough cash on hand to fund your business venture you are probably already thinking about how you are going to pay for all of this?
Essentially there are two major options. If your business proposition can muster up enough excitement and promise you might want to get some venture capital investors to partner with you. This is especially popular with larger projects. The large down-side to this option is the fact that you are forced to share potential profits with your partners. In most cases, this can suck up a good portion of you future profits. While not the most popular option, this certainly has it place especially in larger projects that require large amounts of upfront cash.
The second is the more popular option because it puts you in direct control and sole ownership of your new business. This is securing a business loan or line of credit. Even if you are the select few who have disposable income available to invest in a new business, you should think long and hard before sinking your own hard earned cash into an even marginally risky business venture. Many investors who have learned the hard way will offer similar advice in “don’t invest cash that you are not ready to lose”.
Start an LLC or a legal corporation first by filing the appropriate paper work with a local attorney. Once you have a legal entity setup, you can approach bank to secure start up capital for your new business. By following this tried a proven method, you protect your loses in the case your business does not succeed. You can forfeit the business and separate your personal assets from losses.
Choosing the best bank to develop a business partnership can be difficult and extremely time consuming. Anyone who has been through this process will tell you that the more financial institutions you can talk to and research, the better terms and rates you will end up with. Sometimes local banks are best. Sometimes larger national and international chains offer better terms. Ultimately, you need to weigh out all the offerings and compare what is best for your case.
Innovative services like LendingTree.com offer a single source where you can fill out one single application and allow LendingTree solicit their large network of banks to bid on your business for you. They then allow you to compare terms and rates side by side in one place to allow you to make a more informed decision.
In the end, your cash flow will dictate to you how far and how fast you can grow and launch your business. Without good finacing options, even a great business idea can fall by the way side of missed opportunities. Take time to get as much information as possible and make your decisions the right one!
Posted in Business, Making Money Online | 1 Comment »
