The internet is wealth creating resource. It has made millionaires of countless individuals who have found ways of providing products/services via the internet. This site is for e-marketers and future or home-based business owners. Here you’ll find ways to make money on the internet as well as work-at-home resources to help get you started. First, let’s start with the most common ways of making money online. Below are the 6 most common ways used today to earn income on the net:
Buying and Reselling/Ebay
Drop-shipping
E-trading
MLM (Multilevel Marketing) and Direct Selling
Affiliate/Referral Programs
“Out of the box”
1. E-bay Selling - Buying and selling products is one the most common ways of making money online. It can be very profitable if you find, make or channel a product that is in demand for example: e-books/information, electronics, furniture, office supplies, apparel, etc. The key is to out-think the competition, since the creation of the Ebay phenomenon thousands of sellers have monetized on the opportunity. It’s important to find a product that you’re familiar with in order to be an effective seller; for example, don’t sell computers if you don’t know what “processor speed” is, you’ll just set yourself up for failure. If your having trouble finding a product try going to WWB, they offer products as well as information/ tools on how to find niche products and sell them on Ebay. You can also go to the Ebaystore to set up an inexpensive storefront if you don’t want to build your own.
Drawbacks to Ebay selling are:
Finding/making a profitable product
Can be time consuming (Plan to spend 20-30 hrs/week)
Very competitive market
2. Drop-ship- Drop-shipping is very similar- however the advantage to drop-shipping is that you don’t have to worry about moving the products yourself. With drop-shipping you’re really working as a third party in the sense that you find vendor’s who’ll drop-ship, and when you make a sale, they deliver the products directly to the customer for you-thus, no inventory or overhead costs? It can also save you the money and hassle of running to UPS every month to send/receive shipments. Another perk is that you don’t have to buy the product before you sell it! You simply take the order and give it to the manufacturer for shipping, and you receive a check, without having bought a thing. I know I make this sound pretty easy but in fact it takes an adequate amount of information gathering in order find hot products. The first thing you will need to obtain is a drop-ship directory in order to find vendors who drop-ship, it will cost you anywhere from $55-85, but the money you spend will more than pay you back in safety and time. The only source I recommend for directories is WorldWide again because their the only vendor directory provider that’s Ebay certified-there’s a lot of fakes out their posing as drop-ship providers who are really just “middlemen” trying to collect a commission.
Drawbacks to drop-shipping are:
It can be extremely time-consuming finding reputable vendors with profitable products that will work with drop-shippers.
Backorders and returns can be a headache if you’re with a bad vendor.
3. E-trading is a trend growing more in popularity everyday. Right now the biggest e-trading market is Forex (Foreign Exchange Market) which has a higher turnover rate than the U.S. equity market. Foreign currency trading is a VERY lucrative market and involves simultaneously buying and selling currency online. Transactions take place OTC (Over the Counter) or via internet/phone, as there is no centralized location for trade such as with the stock or futures markets. Not only does Forex offer trading tutorials and conferences for you to learn to trade, but they also allow novice traders to get a taste of the market by allowing you to begin trading with as little as a $25 investment. Forex trading time is short in nature as it does not require long periods of holding before trading as with stocks or bonds. Actually 85% of all currency transactions last around a week or less. A great benefit of trading with Forex is that you aren’t charged commissions or exchange fees. They also offer “real time” price quotes. Go over to Forex.com to get more information about the currency trading market and how to get started.
Drawbacks:
Plan to have an investment of at least $250 to see the big bucks.
The market can be very sporadic and due to the short term nature you will need to stay informed (daily, even hourly) of trends and economic changes that will cause value fluctuation.
4. MLM and Direct Selling business opportunities in my opinion are the most misrepresented and underestimated income opportunities on the web. Most of this is due to false and misleading claims about products/services and income potential made by shady distributors and sales associates. Multi-Level Marketing or (MLM) companies are organizations that provide a product or service and market it by “word of mouth” advertising or paying independent distributors to sell the products as oppose to paid advertising i.e., radio, TV, newspaper. These distributors sell the products and receive commissions; however the majority of the money is made by “referring” or bringing in more distributors, who then bring in more distributors, and so on. The key to these businesses is to find established and legit companies with good commission structures and not spend time and money on small, “fly by night” corporations. Direct Selling is really in essence MLM (even though they try hard to distinguish themselves) except the products that are usually sold are “higher ticket” or more expensive products. Direct selling allows you to make more money with fewer recruits because you have higher commissions. Both of these opportunities are for people who desire and motivation to “run their own business”, because once you recruit people in under you, you have to teach them how to do the same, it’s called the process of “duplication” which involves duplicating the work habits of successful individuals and teaching others to do the same. Income is unlimited and residual, so even when you retire from the business (realistically anywhere from 2-4 years) you’ll still receive checks! An initial investment is required for both opportunities in order to purchase the products and/or start-up kit so if your not looking to invest anywhere between $50-250 for an MLM or at least $500-2k for Direct Selling maybe these businesses aren’t for you.
Drawbacks:
With so many un-established companies on the internet its hard to discern what companies are paying real people real money, so do your research before pulling out your credit card.
There is a high drop out rate in MLM’s due to lack of adequate training from the recruiter/upline and or motivation on the recruits part, so choose your upline carefully because some members will recruit you then leave you on the corner.
Direct selling is bit more challenging due to the type of products/services being offered. It’s more challenging to sell due to the fact that a lot of people who are looking for a business are doing so because cash is tight, so most of them don’t have a grand to invest in order to start (believe me I know).
5. Last but not least we have Affiliate programs. Affiliate programs are perfect for people who don’t want to sell their own product, don’t want to talk to people on the phone or in person, and/or don’t want to spend a lot of money. An affiliate is someone who advertises a company’s services/products on their site by placing banners/ads of the company’s site on their website. When the organization makes a sale from your website link, and in some cases even a referral from the affiliate’s site, the affiliate receives a commission. Affiliate marketing is inexpensive to start because 99% of the companies don’t charge you to become an affiliate, and why should they? I mean after all you’re bringing them visitors, which turns into more sales revenue. You don’t have to have your own site to be an affiliate, but it is necessary if you’re looking to attract more visitors and make more money. The key is joining a good handful of affiliate programs so that you can create multiple streams of income, that’s how top affiliates earn thousands/week.
Drawbacks:
It can be challenging finding quality affiliate programs to join. Many companies claim to “have the best” program.
If you don’t have traffic, what’s the point? It’s better if you actually KNOW HOW to bring traffic to websites. Many affiliates make money due to the fact that they don’t know how to market their programs.
Not enough??? Well try thinking out of the box. Most successful online marketers created income by simply finding a need or a solution for a product/service. For example, while vacationing in Colorado a few years ago I came across a guy who’d made millions simply by creating a website/lead capture page that surveyed people who were searching for real estate. The page, he stated, basically was a questionnaire collecting information about their requirements: price range, number of rooms, location, etc. After receiving the information from the site, he then sold their information as leads to mortgage companies and real estate agents in those local areas! This can be a very profitable business venture because real estate agents are always on the hunt for warm leads. You can even apply this to any other business where leads are sought after.
Don’t let drawbacks discourage you!! All of these strategies are viable and the most commonly used ways to make money online. You just have to have believe that you can be successful-besides what business doesn’t have its drawbacks? See you at the top!!!
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Tuesday, January 26, 2010
Sunday, January 24, 2010
How Steve Jobs Personally Benefited from Options Backdating at Apple Computer
Apple Computer stock dropped recently after the San Francisco Recorder, a legal newspaper, said Federal prosecutors are examining Apple’s stock option documents to decide whether to file criminal charges. That was an escalation from the previous level of expectations. Some of the stock’s cheerleaders are saying it won’t hurt Apple or Steve Jobs, and there is not a chance he will be leaving Apple.
I think that’s wrong, or at least expresses a lot more certainty than any outsider could know. The other, quieter announcement was that Steve Jobs has “decided” that he needs to hire his own attorney to deal with the SEC and the Justice Department from now on. Up to now, he has been represented by the company’s outside law firm.
One of the big advantages of being in and around Silicon Valley for 25 years is the déjà vu effect. I have seen this before. CEOs usually don’t hire their own counsel until the company counsel tells them that the company’s interests and the CEO’s interests have diverged. In other words, if Apple’s counsel has seen enough to believe the company was hurt and the CEO was involved in it, they have the potential of representing the company in a lawsuit against the CEO, and therefore have to advise him that they can no longer represent him..
Now that the company has admitted Jobs knew about the backdating, I think the next announcement we will see is that Steve Jobs has been notified he is the target of a criminal investigation, and then the Board will have a very difficult time doing anything other than suspending him until the investigation is over.
I think these things because I have been through the numbers, including what I believe is the largest stock option grant ever, to Steve Jobs in January 2000.
Overall, since the current proxy disclosure rules started in 1994, Apple made 15 rounds of options grants through their September, 2002 fiscal year. If you look at the price of those grants compared to the annual range of the stock for the six months prior to the grant and the six months following the grant, all 15 should average somewhere around the 50th percentile of the annual range. Some grants made right before the stock declined would be in higher percentiles, while others made right before the stock shot up would be in lower percentiles. But averaging all 15 rounds together, it seems reasonable to expect the 50th percentile if no funny business was going on.
Apple’s grants average in the 15th or 16th percentile. That is powerful evidence that a company backdated, or at least granted options right before they had reason to believe the stock was going to jump. Of course, Apple has now admitted that they backdated options, and Jobs knew about it
There are three transactions the SEC and Justice Department probably are looking at for backdating. One was on July 11, 1997, when Apple repriced options and executives turned in old options with a $7.44 strike price for an equal number of new options with a $3.31 strike price. There were only two other days in the 1997 fiscal year when the stock closed at a lower price. On August 6, only 26 days after the repricing date, the stock jumped 33% and then added another 11% on August 7. The question is whether someone decided on August 8 that July 11 would have been a great day to make the repricing effective.
A second case was January 17, 2001, when four top officers (not including Jobs) got options totaling two million shares at $8.41 a share. A few months before, on the last business day of the 2000 fiscal year, September 29, AAPL was cut in half when they preannounced an earnings shortfall. It kept dropping to the $8.41 option price, and then staged a nearly 60% rally in four months.
The third and most serous case is the giant 40 million share (split-adjusted) grant at $21.80 a share to Jobs on January 12, 2000. This one is a bit tricky, as the company has said Jobs “didn’t benefit” because the stock eventually went below the option price. But here’s what really happened.
In the previous 26 trading days, AAPL fell 26%. Jobs then got his grant on the exact day the stock hit its low, and the stock rose 65% in the following 10 weeks. The issue, again, is whether someone decided in February or March that January 12 was a great day to price the boss’s options, it being the lowest price for many months. AAPL stock eventually went below the option price, and the options were cancelled. The company says due to “irregularities in the grants, the options were canceled and resulted in no financial gain to the CEO.”
Oh, really? This bunch of options would have expired in January 2010. Apple’s stock kept declining in the tech bear market, so the Board gave him 10-year options on another 15 million shares in October 2001. But the second batch went underwater, too, and on March 19, 2003, Jobs “voluntarily cancelled” all 55 million options. That’s why the company claims there was no financial benefit to him from the perfectly-timed 40 million share grant.
But the Board of Directors Compensation Committee report for that year disclosed that “in exchange for his cancelled options” Jobs was given 10 million split-adjusted shares worth around $75 million at the time. They were restricted from sale for three years, and when they became free to trade on March 19, 2006, they were worth $640 million. Not bad!
Here’s the rub, and I am indebted to compensation consultant Graef Crystal for doing the calculations. How did Apple’s Board decide on the number 10 million shares? Almost certainly, they used an options pricing model to calculate the current value of the options, which still had seven and eight years to expiration. Even though they were underwater on that day, the long time to expiration gave them value. Crystal used the Black-Scholes option pricing model to calculate the current value of the 55 million options: $77 million. That’s close enough to $75 million to believe this was their methodology.
But remember that the value of the options also depends on their strike price, and the very favorable strike price on the first 40 million grant raised their value quite a bit. If the strike prices of the two contracts had been set at the 50th percentile of the daily closing prices in their respective fiscal years, the calculated value on March 19, 2003 would have been $10 million less, around $67 million. So the Board might have given him, say, $65 million in shares instead of $75 million, or 8.7 million shares instead of 10 million. Those 8.7 million shares would have been worth $557 million when the sale restrictions expired on March 19, 2006, instead of $640 million. That’s an $83 million difference.
Yet in an October 4, 2006 filing with the SEC, Apple said: “In a few instances, Apple CEO Steve Jobs was aware that favorable grant dates had been selected, but he did not receive or otherwise benefit from these grants and was unaware of the accounting implications.” He didn’t receive the grants? He didn’t benefit from the grants? What about the $83 million? Get real.
It now appears that the paper trail around the October 2001 grant (7.5 million shares at the time; 15 million split-adjusted) was falsified. Recently, Apple has been saying that, yes, there was something wrong with the first and maybe both of these grants, but Jobs was not aware of the “irregularities.” But Jobs also was CEO of Pixar at the same time, which also appears to have backdated stock options. So he is the only CEO of two companies caught in this scandal, and it looks to me like someone on the East Coast has decided to teach the freewheeling entrepreneurs on the West Coast a little lesson by nailing a very big target. I still think there is a substantial risk that Jobs will be forced to leave Apple, and therefore it is too risky to step into the stock yet.
Michael Murphy, CFA, has been a technology stock analyst for over 35 years. He founded the first technology investing newsletter, the California Technology Stock Letter, in 1982. He now writes New World Investor, a weekly advisory letter, with more information available at http://www.newworldinvestor.net/.
backdating crime greg reyes
I think that’s wrong, or at least expresses a lot more certainty than any outsider could know. The other, quieter announcement was that Steve Jobs has “decided” that he needs to hire his own attorney to deal with the SEC and the Justice Department from now on. Up to now, he has been represented by the company’s outside law firm.
One of the big advantages of being in and around Silicon Valley for 25 years is the déjà vu effect. I have seen this before. CEOs usually don’t hire their own counsel until the company counsel tells them that the company’s interests and the CEO’s interests have diverged. In other words, if Apple’s counsel has seen enough to believe the company was hurt and the CEO was involved in it, they have the potential of representing the company in a lawsuit against the CEO, and therefore have to advise him that they can no longer represent him..
Now that the company has admitted Jobs knew about the backdating, I think the next announcement we will see is that Steve Jobs has been notified he is the target of a criminal investigation, and then the Board will have a very difficult time doing anything other than suspending him until the investigation is over.
I think these things because I have been through the numbers, including what I believe is the largest stock option grant ever, to Steve Jobs in January 2000.
Overall, since the current proxy disclosure rules started in 1994, Apple made 15 rounds of options grants through their September, 2002 fiscal year. If you look at the price of those grants compared to the annual range of the stock for the six months prior to the grant and the six months following the grant, all 15 should average somewhere around the 50th percentile of the annual range. Some grants made right before the stock declined would be in higher percentiles, while others made right before the stock shot up would be in lower percentiles. But averaging all 15 rounds together, it seems reasonable to expect the 50th percentile if no funny business was going on.
Apple’s grants average in the 15th or 16th percentile. That is powerful evidence that a company backdated, or at least granted options right before they had reason to believe the stock was going to jump. Of course, Apple has now admitted that they backdated options, and Jobs knew about it
There are three transactions the SEC and Justice Department probably are looking at for backdating. One was on July 11, 1997, when Apple repriced options and executives turned in old options with a $7.44 strike price for an equal number of new options with a $3.31 strike price. There were only two other days in the 1997 fiscal year when the stock closed at a lower price. On August 6, only 26 days after the repricing date, the stock jumped 33% and then added another 11% on August 7. The question is whether someone decided on August 8 that July 11 would have been a great day to make the repricing effective.
A second case was January 17, 2001, when four top officers (not including Jobs) got options totaling two million shares at $8.41 a share. A few months before, on the last business day of the 2000 fiscal year, September 29, AAPL was cut in half when they preannounced an earnings shortfall. It kept dropping to the $8.41 option price, and then staged a nearly 60% rally in four months.
The third and most serous case is the giant 40 million share (split-adjusted) grant at $21.80 a share to Jobs on January 12, 2000. This one is a bit tricky, as the company has said Jobs “didn’t benefit” because the stock eventually went below the option price. But here’s what really happened.
In the previous 26 trading days, AAPL fell 26%. Jobs then got his grant on the exact day the stock hit its low, and the stock rose 65% in the following 10 weeks. The issue, again, is whether someone decided in February or March that January 12 was a great day to price the boss’s options, it being the lowest price for many months. AAPL stock eventually went below the option price, and the options were cancelled. The company says due to “irregularities in the grants, the options were canceled and resulted in no financial gain to the CEO.”
Oh, really? This bunch of options would have expired in January 2010. Apple’s stock kept declining in the tech bear market, so the Board gave him 10-year options on another 15 million shares in October 2001. But the second batch went underwater, too, and on March 19, 2003, Jobs “voluntarily cancelled” all 55 million options. That’s why the company claims there was no financial benefit to him from the perfectly-timed 40 million share grant.
But the Board of Directors Compensation Committee report for that year disclosed that “in exchange for his cancelled options” Jobs was given 10 million split-adjusted shares worth around $75 million at the time. They were restricted from sale for three years, and when they became free to trade on March 19, 2006, they were worth $640 million. Not bad!
Here’s the rub, and I am indebted to compensation consultant Graef Crystal for doing the calculations. How did Apple’s Board decide on the number 10 million shares? Almost certainly, they used an options pricing model to calculate the current value of the options, which still had seven and eight years to expiration. Even though they were underwater on that day, the long time to expiration gave them value. Crystal used the Black-Scholes option pricing model to calculate the current value of the 55 million options: $77 million. That’s close enough to $75 million to believe this was their methodology.
But remember that the value of the options also depends on their strike price, and the very favorable strike price on the first 40 million grant raised their value quite a bit. If the strike prices of the two contracts had been set at the 50th percentile of the daily closing prices in their respective fiscal years, the calculated value on March 19, 2003 would have been $10 million less, around $67 million. So the Board might have given him, say, $65 million in shares instead of $75 million, or 8.7 million shares instead of 10 million. Those 8.7 million shares would have been worth $557 million when the sale restrictions expired on March 19, 2006, instead of $640 million. That’s an $83 million difference.
Yet in an October 4, 2006 filing with the SEC, Apple said: “In a few instances, Apple CEO Steve Jobs was aware that favorable grant dates had been selected, but he did not receive or otherwise benefit from these grants and was unaware of the accounting implications.” He didn’t receive the grants? He didn’t benefit from the grants? What about the $83 million? Get real.
It now appears that the paper trail around the October 2001 grant (7.5 million shares at the time; 15 million split-adjusted) was falsified. Recently, Apple has been saying that, yes, there was something wrong with the first and maybe both of these grants, but Jobs was not aware of the “irregularities.” But Jobs also was CEO of Pixar at the same time, which also appears to have backdated stock options. So he is the only CEO of two companies caught in this scandal, and it looks to me like someone on the East Coast has decided to teach the freewheeling entrepreneurs on the West Coast a little lesson by nailing a very big target. I still think there is a substantial risk that Jobs will be forced to leave Apple, and therefore it is too risky to step into the stock yet.
Michael Murphy, CFA, has been a technology stock analyst for over 35 years. He founded the first technology investing newsletter, the California Technology Stock Letter, in 1982. He now writes New World Investor, a weekly advisory letter, with more information available at http://www.newworldinvestor.net/.
backdating crime greg reyes
Wednesday, January 13, 2010
Good Online Business Ideas – Four factors that you should consider
Many people sometime in their lifetime consider starting a business of their own. Lately, these entrepreneurs at heart tend to resort to the internet as the medium for their businesses. Unfortunately, most of them fail drastically. The reason for that most of these people fail is not lack of effort, knowledge or business background; it is their business plan. Some of these eager individuals are so enthusiastic about their new quest, that they forget to stop and come up with a plan. Now, I don’t recommend you over-plan things to the extent that your idea will sound impossible. But do consider whether or not your business idea has the following parameters.
First of all, your idea has to be something that excites you and drives you. You have to be completely passionate about what you want to do in order to be successful at it. It is very hard to find a successful entrepreneur that doesn’t like what he is doing. When you think of a business idea, consider whether you would be happy doing that for the rest of your life. Is your investment buying you freedom or is it buying you a job? It is interesting to me to see the number of people that invest their life savings in a business that doesn’t appeal to them; you see them buying franchises to become professional burger flippers, pizza toppers and chicken fryers, and they slave away firing manager after manager in order to make their business successful.
Once you have found an idea that sounds exciting, you should try to determine whether you can afford to carry it out. In this stage of the process it is necessary to find out how much will it cost to launch the business, but most importantly, how much it would cost to keep the business running. At first it is very likely that you will not be profitable; you have to make sure you have enough capital to run the business for at least two or three months without making a penny. It pays to be pessimistic when it comes to this. You should find out whether you are going to need partners, investors or creditors in order to finance your operation.
Another point to consider is how much work (labor) will take to keep the business running. If you are going to require a customer service department, or shipping department, then you must see how many people you will need to employ. This will be closely related to the budget aspect of your business plan; the more people necessary to run the operation, then the more money you will need to start out.
Last, but not least you must consider the most important aspect of all –the one you have no control over: time. Do you have the time to manage your business or will you have to hire somebody else to manage it? The more time your business takes out of you, then the less time you will have to start another venture.
In conclusion, you want a business idea that drives you, something that is within your budget, it doesn’t take too much labor to keep it running and it is time friendly. Only with a business model like this will you be able to succeed online.
Online Business Opportunities
Affiliate Marketing Program
First of all, your idea has to be something that excites you and drives you. You have to be completely passionate about what you want to do in order to be successful at it. It is very hard to find a successful entrepreneur that doesn’t like what he is doing. When you think of a business idea, consider whether you would be happy doing that for the rest of your life. Is your investment buying you freedom or is it buying you a job? It is interesting to me to see the number of people that invest their life savings in a business that doesn’t appeal to them; you see them buying franchises to become professional burger flippers, pizza toppers and chicken fryers, and they slave away firing manager after manager in order to make their business successful.
Once you have found an idea that sounds exciting, you should try to determine whether you can afford to carry it out. In this stage of the process it is necessary to find out how much will it cost to launch the business, but most importantly, how much it would cost to keep the business running. At first it is very likely that you will not be profitable; you have to make sure you have enough capital to run the business for at least two or three months without making a penny. It pays to be pessimistic when it comes to this. You should find out whether you are going to need partners, investors or creditors in order to finance your operation.
Another point to consider is how much work (labor) will take to keep the business running. If you are going to require a customer service department, or shipping department, then you must see how many people you will need to employ. This will be closely related to the budget aspect of your business plan; the more people necessary to run the operation, then the more money you will need to start out.
Last, but not least you must consider the most important aspect of all –the one you have no control over: time. Do you have the time to manage your business or will you have to hire somebody else to manage it? The more time your business takes out of you, then the less time you will have to start another venture.
In conclusion, you want a business idea that drives you, something that is within your budget, it doesn’t take too much labor to keep it running and it is time friendly. Only with a business model like this will you be able to succeed online.
Online Business Opportunities
Affiliate Marketing Program
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