Top 10 Myths About Making Money Online
Do you know anything about making money online? I mean anything that is tested and proven, not just seen elsewhere. I’ve heard and read hundreds of myths about making money online. A lot of people, especially newbies, read them, take them as granted and let them ruin their online business – by either not starting it or by walking the wrong way and sticking to it no matter how long it doesn’t work.Well, I’m working online since eight years and I have tested a lot of things. I know for sure that the following 10 claims are very, very wrong. If you’ve been exposed to them or worse – you believe in them – now is the time to realize how wrong they are.1. You need loads of traffic.
If your site(s) receive a lot of traffic this can really make it easy to monetize through advertising. But quality is more important than quantity. Sites with less but quality visitors can achieve much higher profits by selling own or affiliate products than the pennies one file-hosting site earns from advertising for example. I have a small site with around 1,000 visitors monthly which earns a lot more than a site with 5,000 unique visitors monthly.2. You can achieve good results submitting your site to thousands of directories.
Directories don’t bring traffic and have no meaningful effect on your search engine rankings. Almost all the site directories are worthless and submitting to them is loss of time and/or money. There are some directories like DMOZ and some niche directories which can bring some benefit if you get listed. But don’t spend too much time even on them – using the directories as promotional method can never make your business.3. Your products must have the lowest prices.
In fact it’s quite the opposite. If your products are very cheap it’s almost sure you are not going to make much money. First, your products will be perceived as low quality and will attract mostly low quality visitors, trouble-makers and so on. Second, you will need to sell a lot of these products to make profits with thin profit margins. This will not let you use paid advertising tools like PPC for example. And finally, if you are selling products at low prices, other sellers will quickly do the same and reduce your sales. Playing the pricing game isn’t the way to succeed.Set reasonable prices for your products. You can have quality service, good site, SEO, creativity, advertising, packaging, promotions and so many more advantages instead of low prices.4. You need top search engine rankings to succeed online.
I love getting search engine visitors. In fact many of my sites rely heavily on search engines traffic. But this is not the only method to succeed online. You can make lots of money online without getting a single search engine visitor. There are so many other free and non-free options to generate traffic: social networks, advertising, PPC, affiliates, referring sites, guest posting on blogs, niche directories, RSS aggregators and many more. In some industries (for example web design) getting top search engine rankings will cost money and efforts that may be out of the reach of an individual. On the other hand, everyone can make a Facebook fan page and promote it, especially with some creativity!5. You need to have money in order to make money.
For sure! At least $10 for a domain name (although some make money even without a domain name). But that’s all that you really need. Don’t get me wrong, investing money in your web business can help a lot and can speed up the things very much. You can buy advertising, get software developed, get professional design, pay for content, buy links and so on.But you don’t have to. I have started most of my sites without investment other than domain and hosting. Later I have invested money in some of the sites and kept developing other without investing money. Both ways work and have their advantages and disadvantages.6. You can build a site, then forget about it and just enjoy the income
With very few exceptions this is simply not true. Web business is just like any other business and requires work. Of course static content sites or software services can run relatively on their own. But some kind of support is always required. And there is a lot of hard work while you get to the moment of making money. Don’t expect that you will throw some site online and the money will start flowing and never stop even if you don’t lift a finger.7. At any cost avoid the “make money online” niche
People who write about make money online love advising their “students” against doing the same. They will explain you how you will be competing with the best, how the market is over saturated and how you just won’t succeed. I’m not sure why they do it – most probably they want to avoid competition.Make money online is a huge niche and there is an enormous number of people who are interested in it. While there is also huge amount of supply, there is still a lot of money to be made in it, and there will always be. You shouldn’t be afraid of the huge competition – it only means that the market is huge.While I make more money in other niches, “make money online” is the one that brings very large profits from a single customer.8. Relying on online income is very risky.
And how is relying on offline income less riskier? Is working for a boss who can say “you are fired” tomorrow less risky? Or having a small store on the street where a powerful brand can open a new store tomorrow is not risky?At least online you can have multiple sites and enjoy multiple sources of income. And if a site or even all your sites somehow lose their income you can always try new ones armed with the knowledge and experience of the first ones. And you can do this with almost no money, too.9. The only people who make money online are those who teach others how to make money online.
That’s the opposite of myth 7. It’s not true. There are millions of small niches where you can create and expand your online business. People make money with sites about curing headache, making pots or returning ex-girlfriend. “Make money online” is only one of the millions. You can try your chances with it, but you can also make money online without ever mentioning the words “money” or “online” in your sites, even once.10. Affiliate marketing is the best way to make money online
Just like offline, there are many methods to make money online. Affiliate marketing is good, but it’s only one of them. You can make money selling only your own products for example. You can create software (if you are not a programmer you can hire someone to program it), you can sell designs, information products, music, everything.Some online marketers make money only with AdSense and other advertising without selling neither their own, nor affiliate products. This is just as vital as affiliate marketing. Your business is not tied to the way it makes money and you should try various ways.
Be Prepared for the Problems in Used Car Financing With Solutions Before You Start
Financing properly is more important in financing a used car than when buying a new car. Most problems that occur in buying a used car are due to there being a problem connected with the financing. Getting the used car financing worked out properly is the key to a successful used car purchase.Most buyers aren’t aware of how important the paper work is to making the deal a successful one or a failure. They view it as paperwork that should be completed as quickly as possible so they can drive away in their new car.To start with, it’s very important to get the deal agreed upon by the salesman to be put in writing in the contract. This often involves determining monthly auto loan payments based on an interest rate. Sometimes, the interest rate a customer qualifies for is inflated so the dealership can make extra profit.This headache can easily be avoided by obtaining independent vehicle financing before going to the dealership. This means the consumer can proceed as a “cash buyer” and negotiate only the price of the car. Car salesmen prefer customers to be “monthly payment” buyers because, in this way, it is easier to obscure the total cost of the vehicle.Independent car financing can be obtained from a bank, credit union or on-line lender. With the popularity of the internet, applying for used car refinance is proving to be simple and very easy to do. Many on line lenders respond very quickly – sometimes as short as 15 minutes by email or telephone. If the application is approved, the borrower is given a credit limit at an established interest rate. Sometimes a blank bank check is issued with no obligation to use it.”For the majority of consumers, even if you know you have good credit, there is a little apprehension and tension around applying,” one lender said. “So instead of going into a dealership and giving them your information and being sent to the coffee machine to wait for an answer, you can apply on-line, 24/7.”Most people familiar with how used car dealerships operate confirm that obtaining independent car financing is beneficial to most consumers. .The most common problems that have a negative impact on a person trying to finance a used car –and their solutions – to ensure that things go smoothly are the following:Problem #1: Many consumers don’t know what their credit rating is when they apply for an auto loan. The strength of their credit score largely determines what kind of interest rate they will receive. Therefore, it’s critical to make sure your credit report is in the best shape possible before shopping for a car.SOLUTION: Order a copy of your credit report and look for items that may stand in the way of you getting a good rate. Correct any issues or errors promptly. Are all of your lines of credit in good standing? Are there any signs of identity theft? The credit bureaus will tell you how to correct errors when they send you the report. The following numbers and Web site addresses will assist you in checking your credit.Equifax: 800-685-1111, http://www.equifax.comExperian: 888-397-3742, http://www.experian.comTransUnion: 800-916-8800, http://www.transunion.comProblem #2: Many consumers are tempted to overspend once they get to the dealership.SOLUTION: It’s a good idea to set a sensible price range for the car you want to buy and stick with it. Experts suggest that monthly car payments and related expenses should not exceed about 20 percent of your monthly net income. You can even bring a printout of your budget to the dealership as a reminder.Problem #3: Most consumers arrive at the dealership without having researched the current interest rates being offered in the marketplace, so they have no idea if they’re being offered a competitive rate.SOLUTION: Use the Internet as a research tool to compare rates. Check out Web sites like bankrate.com for national averages, and the Web site of your own financial institution.Problem #4: Most consumers arrive at the dealership without approved auto financing in hand. This is either because they are not aware of all the financing options available, or they assume they will qualify for a low rate at the dealer. This approach deprives the consumer of bargaining power when it comes to negotiating the lowest possible interest rate.SOLUTION: Become an “empowered buyer” by getting a no-obligation loan before visiting the dealership. Having your own loan could save you significant money.Problem #5: Many dealers offer a choice between discounted (or zero-percent) financing or a rebate – but not both. Consumers may erroneously assume that the zero-percent loan will deliver the most savings.SOLUTION: Sometimes it’s better to take the cash rebate and apply it against the purchase price of the vehicle – and then use your own pre-approved car loan to finance the vehicle. The savings chart below shows how a low-interest rate and a rebate can “beat” a zero-percent deal.36-Month Car Loan ComparisonAPR 0% 3.99%
Cost of car $20,000 $20,000
Less equity in trade $4,000 $4,000
Less rebate $0 $2,000
Amount to finance $16,000 $14,000
Monthly payment $444.44 $413.27
Total cost $16,000 $14,877.85
Savings $0 $1,122.15Source: Capital One Auto FinanceProblem #6: By the time they get to the finance department, many consumers are mentally worn out and don’t review the contract thoroughly before signing. As a result, they may agree to buy things they didn’t plan on (such as an extended warranty, rust-proofing, etc.).SOLUTION: Before you sign any papers or hand over any money, check the figures in the contract and understand all the charges. The sudden appearance of extra fees should be questioned. Sometimes
dealers add extra fees – so-called “junk fees” – to retake profit they have lost by selling cars at invoice.PITFALL #7: The consumer feels rushed, pressured and confused by the dealership’s staff. In some cases these buyers have second thoughts about completing the deal – but sign the documents anyway.SOLUTION: Consumers who feel out of their comfort zone should walk away. The buyer – not the seller – should be the one in control of the process. Remember, the federal “cooling off” law does not apply to cars.If you do your homework ahead of time, and know what to expect before hand, the paperwork process can go quickly and easily. But more importantly, you will receive a deal on your car loans that you can feel good about for the life of the car.
Car Finance – What You Should Know About Dealer Finance
Car finance has become big business. A huge number of new and used car buyers in the UK are making their vehicle purchase on finance of some sort. It might be in the form of a bank loan, finance from the dealership, leasing, credit card, the trusty ‘Bank of Mum & Dad’, or myriad other forms of finance, but relatively few people actually buy a car with their own cash anymore.A generation ago, a private car buyer with, say, £8,000 cash to spend would usually have bought a car up to the value of £8,000. Today, that same £8,000 is more likely to be used as a deposit on a car which could be worth many tens of thousands, followed by up to five years of monthly payments.With various manufacturers and dealers claiming that anywhere between 40% and 87% of car purchases are today being made on finance of some sort, it is not surprising that there are lots of people jumping on the car finance bandwagon to profit from buyers’ desires to have the newest, flashiest car available within their monthly cashflow limits.The appeal of financing a car is very straightforward; you can buy a car which costs a lot more than you can afford up-front, but can (hopefully) manage in small monthly chunks of cash over a period of time. The problem with car finance is that many buyers don’t realise that they usually end up paying far more than the face value of the car, and they don’t read the fine print of car finance agreements to understand the implications of what they’re signing up for.For clarification, this author is neither pro- or anti-finance when buying a car. What you must be wary of, however, are the full implications of financing a car – not just when you buy the car, but over the full term of the finance and even afterwards. The industry is heavily regulated in the UK, but a regulator can’t make you read documents carefully or force you to make prudent car finance decisions.Financing through the dealershipFor many people, financing the car through the dealership where you are buying the car is very convenient. There are also often national offers and programs which can make financing the car through the dealer an attractive option.This blog will focus on the two main types of car finance offered by car dealers for private car buyers: the Hire Purchase (HP) and the Personal Contract Purchase (PCP), with a brief mention of a third, the Lease Purchase (LP). Leasing contracts will be discussed in another blog coming soon.What is a Hire Purchase?An HP is quite like a mortgage on your house; you pay a deposit up-front and then pay the rest off over an agreed period (usually 18-60 months). Once you have made your final payment, the car is officially yours. This is the way that car finance has operated for many years, but is now starting to lose favour against the PCP option below.There are several benefits to a Hire Purchase. It is simple to understand (deposit plus a number of fixed monthly payments), and the buyer can choose the deposit and the term (number of payments) to suit their needs. You can choose a term of up to five years (60 months), which is longer than most other finance options. You can usually cancel the agreement at any time if your circumstances change without massive penalties (although the amount owing may be more than your car is worth early on in the agreement term). Usually you will end up paying less in total with an HP than a PCP if you plan to keep the car after the finance is paid off.The main disadvantage of an HP compared to a PCP is higher monthly payments, meaning the value of the car you can usually afford is less.An HP is usually best for buyers who; plan to keep their cars for a long time (ie – longer than the finance term), have a large deposit, or want a simple car finance plan with no sting in the tail at the end of the agreement.What is a Personal Contract Purchase?A PCP is often given other names by manufacturer finance companies (eg – BMW Select, Volkswagen Solutions, Toyota Access, etc.), and is very popular but more complicated than an HP. Most new car finance offers advertised these days are PCPs, and usually a dealer will try and push you towards a PCP over an HP because it is more likely to be better for them.Like the HP above, you pay a deposit and have monthly payments over a term. However, the monthly payments are lower and/or the term is shorter (usually a max. of 48 months), because you are not paying off the whole car. At the end of the term, there is still a large chunk of the finance unpaid. This is usually called a GMFV (Guaranteed Minimum Future Value). The car finance company guarantees that, within certain conditions, the car will be worth at least as much as the remaining finance owed. This gives you three options:1) Give the car back. You won’t get any money back, but you won’t have to pay out the remainder. This means that you have effectively been renting the car for the whole time.2) Pay out the remaining amount owed (the GMFV) and keep the car. Given that this amount could be many thousands of pounds, it is not usually a viable option for most people (which is why they were financing the car in the first place), which usually leads to…3) Part-exchange the car for a new (or newer) one. The dealer will assess your car’s value and take care of the finance payout. If your car is worth more than the GMFV, you can use the difference (equity) as a deposit on your next car.The PCP is best suited for people who want a new or near-new car and fully intend to change it at the end of the agreement (or possibly even sooner). For a private buyer, it usually works out cheaper than a lease or contract hire finance product. You are not tied into going back to the same manufacturer or dealership for your next car, as any dealer can pay out the finance for your car and conclude the agreement on your behalf. It is also good for buyers who want a more expensive car with a lower cashflow than is usually possible with an HP.The disadvantage of a PCP is that it tends to lock you into a cycle of changing your car every few years to avoid a large payout at the end of the agreement (the GMFV). Borrowing money to pay out the GMFV and keep the car usually gives you a monthly payment that is very little cheaper than starting again on a new PCP with a new car, so it nearly always sways the owner into replacing it with another car. For this reason, manufacturers and dealers love PCPs because it keeps you coming back every 3 years rather than keeping your car for 5-10 years!What is a Lease Purchase?An LP is a bit of a hybrid between an HP and a PCP. You have a deposit and low monthly payments like a PCP, with a large final payment at the end of the agreement. However, unlike a PCP, this final payment (often called a balloon) is not guaranteed. This means that if your car is worth less than the amount owing and you want to sell/part-exchange it, you would have to pay out any difference (called negative equity) before even thinking about paying a deposit on your next car.Read the fine printWhat is absolutely essential for anyone buying a car on finance is to read the contract and consider it carefully before signing anything. Plenty of people make the mistake of buying a car on finance and then end up being unable to make their monthly payments. Given that your finance period may last for the next five years, it is critical that you carefully consider what may happen in your life over those next five years. Many heavily-financed sports cars have had to be returned, often with serious financial consequences for the owners, because of unexpected pregnancies!As part of purchasing a car on finance, you should consider and discuss all of the various finance options available and make yourself aware of the pros and cons of different car finance products to ensure you are making informed decisions about your money.