Online Credit Card Approval

Needless to say, electronics and the Internet have changed the way that people maintain and conduct their financial affairs. Internet banking, Internet bill pay, and Internet credit card applications have paved the way for faster and more effective money management.

Pre Internet banking dominance, everything financial was done through the United States mail and telephone. Everything was a slow process. In regards to credit card applications, you had to go to your local bank and get one, or you had to wait for a credit card offer to be sent to you in the mail. You had to fill out the credit card application by hand and mail it to the credit card company. If your application was accepted, you would receive a letter a couple of weeks later telling you such. Another few days later, you would receive you credit card. On the other hand, if your application was denied, you had to wait those few weeks just to discover this fact.

Thank goodness for the Internet and instant credit card application decisions. Nowadays, all you have to do is go to the website of the credit card company in which you are interested. You select the credit card of interest. Next, you fill out the available credit card application. Once that is complete, you submit the application and get a credit card decision, usually, within thirty seconds. Thirty seconds sure beats a few weeks!

If you are in the market for a credit card and you have never used an Internet credit card application, I suggest you give it a try and get an instant credit decision.

Credit Score Conundrums

In my previous post, What are the Components of a FICO Score?, I discussed what the Fair Isaac Corporation takes into account, and each items respective weight, when calculating your FICO score. The interesting thing that I have noticed is that certain practices can both raise and lower your credit score. Lets look at a few of them:

(1) 30% of your score is based upon you debt to credit ratio, while 10% of your score is based upon the number of credit inquiries and “new” credit. The ideal situation is having a maximum of 25% of your credit in use as compared to your debt. Therefore, if you have $1000 in credit, you want to owe no more than $250 total.

As you continue to make consistent payments on your cards, you will most likely become eligible for a credit limit increase. However, you usually have to ask the credit granting company for an increase on your limit. This is good because it will lower your debt to credit ratio, however, you have just created “new” credit and just had an inquiry dinged against your credit report, and thus could lower your score. Interesting!

(2) Some experts state that you should pay off your outstanding balance in full while other experts say that creditors want to see consistent payments, thus you should always pay your bill over time. We now know that 35% of your FICO score depends upon timely payments. Nowhere in that calculation does the amount paid come into affect. Creditors send you a bill with the minimum payment set for you. Most experts agree that you should more than the minimum payment, but not for credit score reasons. You should make more than minimum payments so that you do not get hosed by the interest charges.

The bottom line is, paying off your amount due, whether in full or in parts, is not going to hurt your score (as long as those payments are timely). If you can afford to pay more than the minimum payment, do it. If you cannot, do not. I seriously doubt a creditor is going to penalize you (by means of a lower credit score) for paying back their money in one lump sum!

(3) 10% of your score is based on the type of credit you have. Most people build their credit score in order to take out installment loans, however, installment loans can lower your score. The situation that presents itself is an odd one. Most people build their credit score in order to purchase a car and/or home. However, taking out one of these loans can lower your score because some creditors may feel that this big monthly obligation could affect your ability to pay them back. Now we are back to the debt to credit ratio and the choice of whether or not to raise the credit limits.

The truth is, it seems that certain simple strategies (pay your bills on time, keep your debt low, and keep your credit high) have been to proven to build a credit score significantly. All of the other little things can either slightly chip away or slightly add to your credit score. As I pointed out, some strategies can have both a positive and negative effect. Therefore, if you want to play it safe, stick to the simple strategies and always be aware of the contents of your credit report and credit score.

Should You Obtain the Services of a Credit Monitoring Service?

As I have been discussing in previous posts, credit is a very important asset in today’s society. Differing views exist as to the overall importance of credit versus the importance of cash, however, supporters of the latter do not deny that credit can be a useful tool.

If you have credit, do you know how to protect it? As you may know, identity theft is one of the most “popular” (for lack of a better term) crimes to commit. Two problems exist with credit and identity theft. First, victims of identity theft have a hard time repairing their credit even though the victim is not the guilty party. Second, you are not aware you are a victim of identity theft until you try to make a purchase that requires a credit inquiry.

Many identity thieves use a different address when obtaining credit in the victim’s name. Therefore, the victim receives no bills, no late notices, and no phone calls about defaults and delinquencies. In the normal, everyday use of your credit card, you credit report is not inquired upon to see if you qualify for a purchase. Your credit report is only used if you intend to make a large purchase (such as a house or automobile). This can leave you “in the dark” as to any illicit credit activity for several months. In the meantime, your credit is literally being destroyed!

In order to prevent this, I use a credit monitoring service. The credit granting company I use offers such a service for $12.00 per month. It has every feature you can think of and gives me instant access to my full credit report and all three of my credit scores. I use this service because it will enable me to quickly identify any unusual information on my report, as well as show me if my credit score raising techniques are working. In addition to those services, the credit monitoring service also notifies me if any unusual activity is being reported on my report.

If you choose to obtain these services, make sure you follow some guidelines:

(1) Make sure the company is reputable. You are going to be giving this company all the information (including your social security number, your address, your birthday, etc.) it would every need to steal your identity. Make sure that the company has many safety features to prevent that from happening.

(2) A larger price per month does not mean better service or product. I have seen prices from $12.00 per month to over $100.00 per month for these services. Make sure you are getting some vastly superior product or service if you choose to shell out an addition $88.00+ per month.

(3) Make sure the service is easy to use and has a way to be immediately reached in the event that you notice suspicious charges on your credit report. You do not want to find something wrong and then find out that you have to submit a claim that could take weeks to process!

If you decide that these services are right for you, shop around, and find the best deal. Protect your credit now and you will be able to save yourself some frustration in the future. Think of this service as a necessary insurance in an identity theft rich time.

How Important is Good Credit?

Do you think that good credit is not an important asset? I have a friend that thought that very thing. Suddenly, not to long ago, reality slapped him in the face. His credit score was so bad that he could not get financed for a car! His lease was up and he tried to get another car, unfortunately, he was denied at every place he attempted.

You may be thinking that he did not look hard enough or was trying to get too expensive of a car. You may be correct, however, the point is that something like buying a car should be an enjoyable experience. Buying a car should not be an industrial pain that consumes one week of your life!

The sad truth about credit is that good credit is hard to get and bad credit is easy to get. If you have bad credit, you need to start today if you want to fix it. If you look at your credit report, you will see that negative information (such as late payments, charge-offs, etc) can stay on your credit report for years!

My buddy could not get financing for a $25,000 car. Could you imagine if he tried to get financed for a big purchase, like a house? That is too scary for me to imagine! Take care of your credit and you will be one step closer to financial freedom.

Tips to Raise Your Credit Score

In my previous post What are the Components of a FICO score?, I discussed the different components of a FICO score and their respective weights in determining your credit score.

This post will provide a few tips that you can use to raise your credit score. First, if you have no idea what your credit score is or what information is in your credit report, I suggest you get both. You can get a free copy of your credit report from all three credit reporting agencies by going to Annual Credit Report. This service is completely free (there is absolutely no catch) and is easy to use.

Your credit score is a different story. I am unaware of any website or company (except Washington Mutual that just started the promotion of giving you access to your credit score for free if you have one of its credit cards) that will give you free access to your credit score. If you really want to know your credit score and do not want to pay for it, there is a free way to obtain the information, although it is a little shady.

If you want to get a free look at your credit score, go car shopping! Better yet, just call a car dealership and tell them you are interested in a car. They will run your credit to see if you qualify for the car you are “interested” in. Once they say you qualify or not, ask the salesperson what you credit score is. They will almost always tell you. When the salesperson wants to move on with the deal, just tell them that you are doing some comparative shopping and price searching and that you will get back to them.

If you are uncomfortable with obtaining your credit score this way, all three of the credit reporting agencies will let you buy the information for around $15.00 for all three scores.

Once you have your credit scores and reports, you can see where you need improvement. There are some general things you can do to start to boost your score. Although you will no longer be able to use the authorized user method to boost your score, you can still, (1) pay bills on time; (2) keep your debt low; and (3) not open lots of accounts at once.

Those are general tips, but there are other things you can do and other information you should know.

(1) If you can prevent it, do not close credit accounts. Many people close credit accounts they hardly use or that they just paid off to avoid the temptation of using the card again. This is a bad move because 15% of your credit score is based upon the length of your credit history. If you find that one of your cards is not in use, start using it for a very specific thing (for example, only buy gasoline/diesel with that one card) and use it for nothing else. By doing this, the card is in use, and the payment will be low. This way, you get to keep your lengthy credit history, and you are building points by making your payments on time.

(2) Closing an account does not mean that you no loner have to pay what is owed. This seems simple enough, but you would be surprised how many people are under the false impression that closing a credit account means that they are no longer liable for the debt. This is a rookie move and should not be made by aspiring entrepreneurs! Do not close the account because you are having trouble paying, instead, stop using the credit card! None of the fees change and none of interest rates decrease by closing the account. Therefore, what is the benefit of closing the account? If you fear that by keeping the account open you will continue to use the card, destroy the card. Later, when you feel you have gotten things back in order, call the credit company and tell them that your card was destroyed (by the washing machine, the dryer, or whatever you can think of), and get a new card. By closing the account, you only hurt your lengthy credit history!

(3) Know that certain debts are weighed differently than others. Revolving debt is weighed more heavily in determining your creditworthiness. Revolving debt is money owed to a creditor who sets your monthly payment based on the current balance. This is different from installment loans, (such as student loans) where the amount owed is fixed (not based on your current balance), usually payable monthly, and almost never changes. Keep those revolving debts low and your score could increase.

(4) If you have bad credit and are having trouble getting a card, try a department store. If you find yourself having trouble getting credit from the “big boys” (Visa, MasterCard, Discover, American Express, etc.) try getting a card from a department store. Their interest rates are terrible, but they are usually much easier to get. This credit will help you start to reestablish yourself as creditworthy and will help improve your score, if you make timely monthly payments and keep the debt low.

(5) If department stores do not work, you can get a secured credit card. Secured credit cards are credit cards with a deposit backing. In other words, your credit limit is set by how much money you give the company. If you deposit three hundred dollars, your credit limit is three hundred dollars. Unlike a debit card though, charges do not come out of that deposit amount. You are sent a bill like a credit card and have to make the payments. Be cautious if you take this route because some of these companies are predatory and charge OUTRAGEOUS fees and interest rates! If you find out that you are paying more to possess the card they you are actually spending by using the card, dump it!

Cool Financial Calculator Website

I was reading some financial news yesterday and happen to stumble upon a really cool website. This website had any and every type and kind of financial calculator you could think of.

Every calculator was 100% free to use and could even be imported onto your website or personal profile page. And, when I tell you they have every financial calculator you can think of, I mean it! It is important to note, however, that using the calculators are free, but if you want to put one on your website, it is going to cost money.

The website is www.dinkytown.net. You definitely need to check it out. I do not believe that this website is really well know, therefore, if you do not feel comfortable as to the quality or accuracy of these calculators (I am not saying that they are inaccurate, and I have never had a problem with using them), www.bankrate.com is a pretty cool financial website that has a financial calculator option. Bankrate is not a pure financial calculator site like dinkytown.net is, but Bankrate.com is more popular.

Multiple Streams of Income: The Internet Part 9

Link exchange websites can help you get links. The more links you have on your website, the higher your PageRank may be. As I have stated before, a higher PageRank means your website shows up higher on search engine results.

There are three ways to acquire links: (1) you can pay for them; (2) you can join a free link exchange; and/or (3) you can manually add links.

Paying for links has its ups and downs. Usually, when you buy links you receive a massive amount at one time. What basically happens is you buy a webpage/website that has a couple thousand backlinks linked to it. The problem with this method, other than it costing a lot of money, is that you never really know what kind of links you are getting.

Joining a free link exchange also has positives and negatives. To find a free link exchange service, search the phrase “free link exchange” in your favorite search engine. Once you have found a site, you have to avoid many pitfalls in order to successfully acquire quality links. When you join a free link exchange, you usually have to submit your website/blog for approval. Once approved, you can begin exchanging links with other websites. The problem with free link exchanges is that the link exchanges are reciprocal . In other words, for you to place your link on another’s webpage/blog, you have to place their link on your webpage/blog. This is vastly different from a backlink .

You may be wondering why a reciprocal link exchange can be bad. The problem with a reciprocal link exchange is that you have to know what you are exchanging. A link for a link is NOT an even trade! Let me explain. Suppose your website/blog has a PageRank of 7 and the person you are exchanging with has a PageRank of 2. The 2 gets much more benefit from the link exchange than you do. Additionally, links have to be relevant to your website. Remember, you are trying to drive traffic! If you exchange links with somebody who sells dog food on their website and you provide real estate advice on yours, neither of you will benefit! Why would the dog food site’s visitors click on your link?! A link of this nature is NOT going to raise your website/blog in the search engine results rankings. In fact, your PageRank may be adversely affected if you reciprocal link to too many websites/blogs that have a lower PageRank than you.

The last method for obtaining links is to get them manually. This is the HARDEST and MOST TIME CONSUMING. However, despite these downfalls, this is my favorite method. As I discussed in previous posts (Part 3 and Part 4) article submission is a great way to create backlinks. Another way to acquire links is to personally ask webmasters of other websites/blogs. This is usually done through e-mail. This is even more time consuming than article submission and is harder to police. You never know when the other website/blog will remove your link. Therefore, you have to constantly check the other sites to insure that your link is still there.

All in all, I still believe article submission to be the very best way to acquire effective, quality backlinks. Instead of submitting articles one-by-one to the hundreds, if not thousands, of websites that exist, you need use an automated program. Article Marketing Domination is a great guide that shows you how to maximize your search engine results ranking using article submissions. Article Marketing Domination has two great qualities. First, if you purchase the product, you get automated article submission software as a FREE gift; and second, the whole program costs under $30! $30 is nothing! $30 is a night for two at the movies. Think about it like this. For $30, you and a friend can spend about 2 hours watching a movie that may or may not be entertaining, OR you can purchase a great product, ready to download, that can make you a limitless amount of money. By using Article Marketing Domination, you could easily make back your $30 investment with just one article! The choice is a no-brainer for me, but I have met people that make “questionable” decisions about their financial future. Whatever you decide, definitely take advantage of article submission in order to grow you backlinks, PageRank, and ultimately your traffic!

Multiple Streams of Income: The Internet Part 8

Traffic generation is an important tactic to master. The more traffic you have coming to your site, the better your conversion ratio should be. I say “should” because traffic alone is not enough. Website content, ad placement, and follow-ups are just as, if not more important than traffic.

Think about it like this. If a visitor comes to your website but does not like what he/she reads, will that person come back? Obviously, the answer is no. On the other hand, a visitor may love your content and return repeatedly. However, if your ad placement is bad and you do not follow-up, you essentially cut off streams of income that could be producing tons of dollars!

Many ways exist to obtain traffic. If you have read my previous posts, you know that article submission (which creates backlinks) generates traffic. Other ways to obtain traffic are:

(1) Link exchange;

(2) Search Engine Submission;

(3) Search Engine Optimization;

(4) Viral Marketing; and

(5) Friend Networks (MySpace, FaceBook, etc.)


The above list is not exhaustive. However, it does list some powerful methods for obtaining website traffic.

Each of the above methods will be covered in subsequent posts. Note that these methods are time consuming and will take some diligence before you see results if you choose to do each manually. Options do exist that will significantly reduce the time you spend on these tasks and at the same time will increase your traffic. Less time and more traffic is far better than more time and less traffic!

Currently, over 50 MILLION website are on the Internet. How would you like your website to be #10,000? I know that being # 10,000 does not sound that good, however, to put this into perspective, if your website is #10,000 in traffic ranking for all websites, this means that you are generating hundreds of thousands if not MILLIONS of visitors per month! Could you imagine if you had that many visitors to your website?

If you would like this much traffic, you sound definitely check out Michael’s Traffic Videos! These videos cover every aspect of traffic generation that you can think of. Would you like your traffic rank to look like this:



The proof is in the numbers! Additionally, the best of this program is that one video shows you how to get 100,000 FREE Ad Impressions. FREE is always a nice word to hear when you are trying to create income.

Michael’s Traffic Videos will help you achieve these traffic numbers! Create traffic, make money. What could be easier?

Multiple Streams of Income: The Internet Part 7

Adsense and Adbrite are two programs you can use to monetize your website or blog. Put simply, all you do is copy code into your website and advertisements will appear. Every time a visitor clicks on one of the ads, you will get paid. The price per click depends on the ads you are showing. Do not woory about having to learn HTML code or anything like that, because both Adsense and Adbrite are easy to use and offer step-by-step instructions.

Sign-up for Adsense and Adbrite are both FREE, so you have nothing to lose.

A couple of things you should note:

(1) Clicking on your on advertisements is considered “click fraud” and will result in an immediate cancellation of your account and any money due. DO NOT CLICK ON YOUR OWN ADS!

(2) Rules exist as to where and how many ads you can place on a webpage. Make sure you read the Terms of Service for both Adsense and Adbrite so that you do not get your account cancelled.

(3) The amount of traffic you bring to your website will help generate a steady Adsense and Adbrite income. The more traffic you get coming to your website, the better the chance that somebody will click on one of your ads. Therefore, TRAFFIC = INCOME. However, some exceptions apply.

It is important to note that traffic alone will NOT create a substantial income from Adsense and Adbrite. You have to know how to get people to click on advertisements. The Adsense Decoded Videos have gotten great reviews! The best part about the Adsense Decoded Videos is that it shows you how to turn a significant profit even if you do not have much traffic!

However, if you do not like to watch videos or learn better by reading, and want your information instantly, the Adsense Whizz Kid is also a great product. The best part about Adsense Whizz Kid is that you get a FREE 31 Page Report just for visiting the website!

Whatever you decide, take advantage of these of these programs so that you can build another, potentially massive, stream of internet income!

Multiple Streams of Income: The Internet Part 6

Blog advertising is a quick and easy way for you to monetize your blog. Websites like PayPerPost, Blogsvertise, and Blogitive provide advertisement opportunities to bloggers. This is how it works:

(1) You register/submit your blog to one of these sites for approval;

(2) In order to become an “approved” blog after submission, you have to meet some “minimum standards” set-up by the webmaster. These “minimum standards” include a minimum Google PageRank, minimum Alexa ranking, minimum Technorati rating, a blog that has been active for at least thirty (30) days, and/or a minimum amount of posts, (usually twenty (20)) in the last ninety (90) days;

(3) Based on your PageRank, Alexa rank, etc., you will qualify for opportunities at a certain pay rate;

(4) Lastly, you accept one of the opportunities at the given pay rate by writing a post about a specific website and/or product and submitting it to the blog advertising website from which you accepted the opportunity.

If you do not fully understand how the procedure works, do not worry. Once you sign-up to one of the websites, it will give you thorough instructions. Advertising opportunities range anywhere from $5.00 to $1,000+ per post.

Most of these services use PayPal to pay you. Therefore, if you do not have a PayPal account, you will need to sign up for one.

Do not worry about signing-up for any of the blog advertising services or for PayPal, because all of them are FREE to sign-up.

A couple of closing points: these blog adverting services allow you to submit as many blogs as you have that meet their “minimum standards.” Setting up a new blog that meets the “minimum standards” can be VERY difficult and will take an enormous amount of time! Software, such as Easy Blogger Creator can help you literally build hundreds of unique blogs in a mere fraction of the time it would normally take. Can you imagine having one hundred (100) blogs posting the same advertisement for $10 each? That means you would make $1,000 for ONE opportunity! These blog advertising services have HUNDREDS of opportunities. You do the math!

Creating hundreds of unique blogs will also help you create hundreds, if not thousands, of unique backlinks. Remember, backlinks = higher rating in search engine results = MORE TRAFFIC! Easy Blogger Creator will be able to do all of this in the blink of an eye! Take advantage of this system and you could create a relatively large stream of income from blog advertising. Keep in mind that blog advertising is only one of many ways to monetize your blog. If you could make thousands of dollars from only this one stream, can you image the total you will make from your combined blogging streams? Easy Blogger Creator will help create this large streams so you can fully utilize blog advertising services.

Multiple Streams of Income: The Internet Part 5

Some additional notes on affiliate marketing to keep in mind:

(1) Make sure that you are promoting a product from a reputable seller. If the seller is not reputable, two problems arise. First, your reputation suffers, and second, you may not get paid. If the seller does not correctly track sales from your hoplink, you will lose money! We are not in this business to lose money. Therefore, start smart by finding a reputable seller.

(2) When you do affiliate marketing, you may have to give the seller some personal information for tax purposes. This personal information may include your phone number and social security number. If you do not feel comfortable giving out this information, you will need to find a seller that does not track your income for tax purposes. If this occurs, remember to claim any income you make on your tax return. The last thing you need is to get audited by the IRS!

(3) As I stated in my previous post, Clickbank is a good website for finding affiliate marketing opportunities. Alternatively, you can decide to promote a specific product from one seller. There are advantages and disadvantages to both. If you promote multiple products, you can reach a more diverse group of possible customers; however, it will be harder to track sales. If you promote only one product, you may not be able to meet the interests of all you potential customers; however, sales will be easier to track. Whatever you decide, make sure that you consider your time commitments and selling strengths.

Keep these notes in mind when deciding on a seller’s product!

Multiple Streams of Income: The Internet Part 3

Now that you have your website and/or blog, you have to drive traffic to your site in order to profit. How do you do this? Article submission is one way to accomplish this task. Article submission is a key way to generate backlinks and traffic.

By submitting articles to various free article directories, three benefits occur. First, you start to establish yourself as an “expert” in the field in which you are writing. Second, you acquire back-links to your website and/or blog. Third, you acquire traffic.

Establishing yourself as an expert will help build your reputation and status. Article writing is the most effective and efficient way to “build a buzz.” Many free articles directories exist and most are easy to navigate and easy to submit. Search the terms “free article directory” in your favorite search engine. You may be surprised by how many sites result. If you search these terms, you should find hundreds upon hundreds of websites that publish articles. Certain software like Instant Article Submitter, 30 Minute Article Writing System, and Article Directory Pro will help you easily create and submit articles. These programs do cost a little money but are well worth it if you want quick results. Making money on the Internet does not have to be hard, and it can be easy if you are willing to invest a little money and a little time.

Backlinks are important for building your Google pagerank and your Technorati rank (for blogs). A Google page rank is important because it determines how high your internet site and/or blog appears on the Google search engine. You must become indexed in all the main search engines (Google, Yahoo, and MSN) also, but more on that later. Backlinks are links that are incoming. In other words, a backlink occurs when other websites put your link on their page. This is different from a reciprocal link because in a reciprocal link, your webpage links to a site and that site links back to your page. If you still do not understand, use this link to get a better understanding of backlinks . The more backlinks and links you have (depending on your links’ pageranks) the higher you should appear when your keyword(s) are searched in Google, Yahoo, MSN, etc. Submitting articles to various article submission websites will help you accomplish all of this.

Traffic on the internet is like location for a restaurant. Have you ever heard the saying, “location, location, location,” in the context of opening a new restaurant? Well, on the Internet, it is all about traffic, traffic, traffic!. Article submission helps you acquire traffic. Once you place you link in an article, an interested reader will click and be brought to your website, or any other website of your choosing. In order to obtain the largest amount of money from your internet site, you need traffic!

On a side note, you should visit Helium . This article submission site, allows you to submit articles, provide a link to your website, and pays you a percentage of all the revenue that Helium collects. Sign-up and submission are both free. Check it out because it is another way to create an income stream.

Multiple Streams of Income: The Internet Part 2

Instead of trying to pitch a specific product, I am going to give you many different options in which you invest your time and talents and can achieve a cash return. Keep in mind that most of these options will not make you a millionaire, however, all will provide you with some extra dollars if you have the desire to pursue them. Further, I am not saying that you cannot become a millionaire with the following options, all I am saying is that in order to achieve that level of income, you have much hard work to accomplish!

As I stated in my previous post, there are many options one can pursue in order to obtain multiple streams of income. We are still talking about the Internet. In this post, I will give you an overview of just some of the options available. In subsequent posts, I will discuss each one in depth.

Blogging
The word “blog” is an abbreviation for the phrase “web log.” Think of a blog as an Internet diary that the whole world can read. People post personal thoughts, ideas, conversation, or whatever they want in order to share with the world. However, as blogging has become more popular, people have used blogs as a marketing tool. The more traffic you obtain, the higher your potential income may become. In order to obtain income from traffic, you can sell a product on your blog, advertise, Google Adsense, and/or AdBrite to name a few. All of these options provide viable options that will monetize your website.

In order to find a blog service that you like, just search the terms “free blog” in the search engine of your choice. If you are interested in a subject and can write, you possess the elements necessary to start a blog. Most importantly, blogging is free and the tools available to monetize your blog are usually free!

Article Writing
Another way to make extra money is to write articles for websites like Helium. Using services likes this will do two things. First, your writing skills will become more refined, and second, you will market your name and your blog thus obtaining more traffic and a good reputation. These two benefits will help you obtain dollars and will also drive traffic to your blog.

Affiliate Marketing
By utilizing websites like ClickBank, you can sell products on your blog for a commission. Selling these products are easy because all you do is provide the link. If your traffic clicks on these links, they are redirected to the product’s pitch page and thus does all the work for you.

Multi-level Marketing
In the spirit of not promoting any specific product, I will not mention any names; however, multi-level marketing can be a powerful weapon to wield in the Internet jungle. It is important that you find an opportunity that is FREE or nearly free AND that provides income to members mostly on sales and not on referrals! If a company focuses too much of its pay-outs on referrals, you may be looking at an illegal pyramid scheme and should avoid the scam at all costs!

Blog Advertising
By utilizing websites like Payperpost.com, Blogsvertise.com, and Blogitive.com, you can make money by writing about a product and posting your writing on your blog. These services are free and very easy to use. The only disadvantage is that your blog has to meet certain requirements of Google page rank, traffic, and/or number of posts. Read the requirements and make sure you meet them before you sign up!

AdSense and AdBrite
These services post advertisements on your blog or website. Every time a visitor to your blog or website clicks on one of these advertisements, you get paid. Keep in mind that the pay ranges from $.05 to $5.00+ and are only really profitable if you have a lot of traffic coming to your blog or website. However, free money is free money and should not be passed up!

Surveys
Many Internet survey sites exist that will pay you to take surveys. Globaltestmarket.com is one such site. Like I said, I will not promote one specific product, so search the terms “paid surveys” in your favorite search engine to see what results. Most of these services will award you points for taking a survey. Once you acquire enough points, you can exchange them for cash. This opportunity will not make you rich, but like I said, extra money never hurts!

Check out all these opportunities and see how much you can make!

Multiple Streams of Income: The Internet Part 1

Let me start by saying that this multiple streams of income series is going to be long. There are going to be many posts over many days, but all should provide help and usefulness. We start with the Internet.

Entrepreneurs come in all shapes and sizes. Some have very specialized education, some are high school dropouts. However, all entrepreneurs share one distinct quality. That quality is the drive, the motivation, the desire to better our current situation. All of us share a deep seeded passion to create a better life for ourselves and our loved ones. As such, we have the talent to succeed in whatever venture we choose. Do not be discouraged if you lack a formal education or are attempting an investment in a new field. As long as you possess that deep seeded passion to achieve greatness, at whatever level, you will find your version of success.

On that note, we begin with the Internet and the most obvious question, “Do I need a website?” There are two ways to approach this problem. You can either spend money or try it for free. Do not get me wrong, I firmly believe the old adage that “it takes money to make money,” however, if you are a new entrepreneur, you may not have much money to invest. As such, you will want to conserve your money for your most important purchases. Therefore, why pay for a website when you can get one for free? A free website will most likely come in the form of a blog.

The word “blog” is an abbreviation for the phrase “web log.” Think of a blog as an Internet diary that the whole world can read. People post personal thoughts, ideas, conversation, or whatever they want in order to share with the world. However, as blogging has become more popular, people have used blogs as a marketing tool. For those of you that want to save some cash, you should check out (1) Blogger; (2) Wordpress; (3) MySpace; and (4) Live Journal to name a few. If you do not like any of these just search the terms “free blog” in the search engine of your choice.

Advantages of Blogging
• It is usually free
• Easy to use
• Many services and products to assist you in blog formation and creation
• Easy to find help with questions

Disadvantages of Blogging
• Your website will have a subname. For example, your website will not be www.yoursitename.com. Instead, you site will likely not have a “www” prefix or will have a name like www.blogservice.yourwebsitename.com.
• Harder to create multiple pages
• Webpage look usually limited to available templates

The choice is up to you. Buying a website can be expensive depending on the hosting you choose and whether or not you are competent with website design. Blogs provide a great alternative and are usually free. Do your homework and figure out which is better for your needs and wants.

Pyramid Scheme vs. Multi-level Marketing

Many people automatically associate a negative connotation with buzz words like “multi-level marketing” and “downline.” These people assume that those words denote a “pyramid scheme” and that the opportunity attached to those words is a scam. However, this is simply not true. If you know what to look for and what to avoid, you will be able to detect a true “pyramid scheme” from a potential money making opportunity.

Pyramid Scheme

Overview
A pyramid scheme is a non-sustainable business that involves the exchange of money, usually in the form of a sign-up fee, and usually has no product or service. Most importantly, pyramid schemes are ILLEGAL! The only people that are able to make money on a pyramid scheme are the people at the top of the pyramid.



Source: http://www.sec.gov/answers/pyramid.htm


The above picture proves that pyramid schemes are unsustainable. As stated above, because these businesses offer no product or service, no possible way exists for the people at the bottom of the pyramid to make any money. The only way to make money in a pyramid scheme is to sign-up new members for a fee. However, as the above picture shows, this becomes impossible when the scheme reaches a certain level. The end result is that people can spend upwards of several thousand dollars to enroll in one of these scams and will end up losing everything.

Common Elements
As the United State Securities and Exchange Commission states, “[t]he hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same. The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. But despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors.”

Some other identifying characteristics to look for are:
• Vague descriptions about the company from which your questions can only be answered by signing up and paying the fee
• No product or service being offered or a product that sells at a highly inflated price
• A majority or all of the possible income to be made comes from the sign-up fee from new enrollees.
• Repeated assurances that the company is completely legal.

If any of these characteristics are present, you will want to completely avoid the company and warn others from participating in this advanced form of fraud.

Multi-level Marketing

Overview
Multi-level marketing companies follow a similar concept to a pyramid scheme, which is a reason for most of the confusion, except that two significant differences exist. One difference is that members at any level of a multi-level marketing model can make income through the company’s products and/or services without signing up any new members. The second difference is that multi-level marketing companies are LEGAL!

You may be asking, “if all the confusion, why then do these companies initiate this business model?” The main reason for this type of model is to reduce the cost of advertising. We can all agree that effective advertising in this day and age can cost a bundle. Many new companies do not have this much capital in the beginning. Therefore, one solution is to reward the company’s members for “spreading the word.” Instead of the company spending hundreds of thousands or even millions of dollars on advertising, the company gives the members an incentive, usually in the form of money, for signing up new members to sell/use the company’s product and/or service.

Unlike a pyramid scheme, any member on any level can make money without ever having to sign-up a new member. However, like a pyramid scheme, once the company reaches a certain population level, it becomes impossible for any new people to sign-up. Therefore, the people at the bottom cannot make bonuses for sign-ups, but they will still be able to make money based on the company’s product and/or services.

Examples
The following is a list of companies that conduct business under a multi-level marketing business model. You may have heard of a few of these:
• Avon Products
• Tupperware
• Mary Kay Cosmetics
• Herbalife
• World Financial Group

Common Elements
Common elements of a multi-level business model are different from a pyramid scheme:
• Little or no enrollment fee
• The company completely explains itself, its products, and its services BEFORE you sign-up
• A member’s main source of income will come from selling or offering the company’s products and/or services
• A member can make money at ANY level of the model WITHOUT signing up new members

These elements assure that the member will have a fair chance to make money from the company. However, as is true with any venture, your income depends on your ability to sell products or offer services. Any company that promises you money for doing nothing is not being honest with you.

If you follow these guidelines, you should be able to tell the difference between the two types of companies. Some pyramid schemes are very cleverly hidden. If you should encounter a company like this during your entrepreneurial journey, and you discover that you cannot make a conclusive decision as to whether or not the company is a pyramid scheme, it is best to error on the side of caution and avoid the situation.

If you discover a multi-level marketing company that you may want to sign-up for, always do a cost/benefit analysis. Weigh all possible costs associated with signing up against all the potential benefits. If the benefits outweigh the costs, you may want to sign-up and try to make some money from the company. The same is true vice versa. In the end, the decision is up to you.

After reading this article, it is my intention that at the very least you should now be able to differentiate between an illegal pyramid scam that will take your money and a legal multi-level marketing company that offers a legitimate opportunity to make money. By knowing and recognizing the difference between the two, you should no longer worry when you here buzzwords like “multi-level marketing” and “downline.” Also, you should be able to take a closer look at multi-level marketing companies and possibly expand your entrepreneurial horizons.