How To Make Money Online Using A Funded Proposal

May 21st, 2010 - 
No Comments
Tags:
, , , , , , , , , , , , , , , , , , ,

There are only a few ways to make money online effectively. I am going to share the one that I use and was taught to me by a mentor I met online. This principle is so simple and just mind numbingly obvious that I was amazed I didnt think of it myself. The principle is called a Funded Proposal. What a Funded Proposal can do for your business is give you a constant stream of cash coming into your bank account all while giving you potential customers and business leaders into your business.

The Funded proposal is very simple and easy to understand. Here is how it works. When you walk into a Mcdonalds you usually are going to want a hamburger or fries. This is Mcdonalds funded proposal. If you look at the profit margin of a soft drink you will see that a fountain drink costs the company around 1 cent. They sell the drink for $1. Thats a 99% profit. So you think Mcdonalds is a hamburger place but really its money making comes from the drinks. You can apply this principle to your internet marketing campaign. There are 2 things that are going to make you money marketing an MLM company online. First is the funded proposal and second the big money earner is your primary MLM company. But first a little advice on picking an MLM company, you will want something with a wide range of products, products people are already using. You want a company that has a solid history and a solid infrastructure. You will also want a company that offers auto-ship a way for customers to get these reusable products month after month without re ordering every month. The company should also have a good public name a positive brand. A company that is socially and environmentally conscious.

Now back to the funded proposal and how to use it to make money online even if no one joins your company. You need to market something preferably a cheap and easy to buy product that will offer something to all internet marketers. This funded proposal will give something to everyone who wants to make money online. It should be cheap enough that everyone wouldnt think to hard about buying it; the best price is just under $10. So you will use this cheap product that offers something to all marketers. What all marketers want to know is how to market more effectively online. So market a cheap how to market online guide. This will make it easy to sell because everyone wants to learn how to market online. This will give you a constant way to have a steady stream of cash coming in. This money will be used to further your marketing and advertising efforts. Then once these marketers sign up for your how to market guide they will be shown your primary business. And in many cases they will join because the guide has a built in business presentation. This way you are making money even if no one joins your business.

Posted in:
How to Make Money

How To Make Fast Money Online

February 22nd, 2010 - 
No Comments
Tags:
, , , , , , , , , , , , , , , , , , ,

Everyone dreams of getting rich quickly and easily online. Unfortunately the truth is making money fast online is easy but only after you gain the knowledge and pay your dues.

You must be willing and disciplined to pay the price. Only those who consistently work to gain and apply the knowledge will achieve their financial goals online.

Online businesses are one of the fastest growing markets in the financial world. Making money online has many advantages over traditional brick and mortar establishments.

Businesses on the internet have very low start-up costs, little overhead, and are virtually always open and can provide automated streams of income. You do not even need to have any of your own products. Physical products are not required to create a fortune either. Digital products provide the highest profit margin imaginable for any online business. Usually employees are not required as well.

In contrast, traditional brick and mortar businesses do require employees, real estate costs, utility bills, insurance, among others and can only be open for business a limited number of hours.

But why do so many people fail to make money fast online? There are two major reasons.

First, many people who are looking to make money fast online are not willing to work. The truth is you cannot instantly amass a fortune overnight by magic or by flipping a switch. Yes, work is required to make money fast on the internet. Greed and laziness are two common characteristics many naturally own. Simultaneously these two characteristics are the most commonly exploited and preyed upon by shady individuals to profit from themselves.

Second, those who are willing to work, lack the knowledge of how to drive large amounts of traffic to their websites at a low cost. Failing to market properly to potential buyers often times breaks the bank, making it impossible for someone just starting out to make money fast on the internet.

Then how are so many people amassing fortunes quickly online?

Online fortunes are produced by those who simply gain the knowledge, then apply that knowledge, and are willing to apply it over a relative number of months rather than a few fleeting days. Making money fast and effortlessly online does not happen instantly. But it does happen fast every time knowledge is exercised.

Fast can be defined when understood within a contrasting timeline. For example, in order to become rich working for someone else in the corporate world, years and decades are a requisite to climb the financial ladder of success. Now compare the corporate world timeline to the online world. The ladder of financial success on the Internet is realistically weeks or months as long as real knowledge is gained and continuously applied.

The fastest way to gain the knowledge is to personally hire a mentor or coach as a systematic guide. However this student and teacher relationship can be expensive. A mentor will require substantial payment upfront in return for their time to properly teach a student. For example, a university or college expects students to pay their tuition in full before the semester begins.

Also, there is nothing in place to hold the mentor accountable to ensure your success. Once that mentor has been paid there is no guarantee you will be successful. As well, if you fail to graduate from a university, a refund will not be provided.

The alternative to hiring a personal mentor is to simply find a successful product or service where the supplier will financially benefit from your success. Selling a product where the profit is split between the student and the teacher holds both sides accountable. The teacher will be motivated to make sure the student is successful selling their product or service. Each time a sale is made, profit is divided among both sides in a previously agreed upon cut.

The bottom line is the more money made within a team, the more money divided among all members of that successful team. The secret of the very wealthy in any business field is leveraging the efforts of teamwork to produce the highest and fastest amount of money for all partners.

Now, you just need to find the right money-making relationship where both sides are held accountable to fast financial success. When you do find the right relationship, you will then be able to earn money as you learn the knowledge. As you continue to apply the knowledge, more money will be earned and you can then leverage more to make more and thus a relatively fast fortune is acquired.

Posted in:
How to Make Money

How An Insurance Company Makes Money

November 26th, 2009 - 
No Comments
Tags:
, , , , , , , , , , , , , , , , , , ,

I worked in the insurance industry for 16 years and saw first hand how profitable an insurance company can be. I will not attempt to go into the nitty gritty details but I will give you a pretty good idea in the form of an overview, how profitable a venture an insurance company can be.

Insurance is a form of risk management. It is purchased to avoid the possibility of a large , potential future loss. To compensate the insurance company for taking on this potential future payout, the insured pays the insurance company a certain sum of money known as the premium. In return for the payment of the premium the insured receives a written document, known as the insurance policy, that lays out what events are being insured and what the payment to the policyholder would be if that event actually occurred.

The insurance company collects the premiums of a large group of insureds to cover the few losses they would have to pay out for.They use historical data to figure the probability of losses and then charge premiums to cover them while building in a profit for themselves.

For example,let’s say there were 100 houses each worth $100,000 in a particular area. They would have a total value of $10,000,000. According to the history of that neighborhood, two houses are expected to burn down during any one year. Without insurance all 100 homeowners would have to keep $100,000 in the bank to cover the possibility of the house burning and needing to rebuild it. With insurance, each homeowner would only need to pay $2,000 into an insurance pool to pay for rebuilding the two houses that are expected to burn down.

2 houses burn x $100,000 = $200,000 for rebuilding the houses $200,000 divided by the 100 homeowners = $2,000 premium

That $2,000 premium will then have to be increased somewhat to add a profit margin for the insurance company.

In addition to the built in profit that the insurance company adds in to each premium it takes in, the company would also be subject to the actual experience of the insured group. If it takes in more money in premiums than it paid out in claims then it receives what is known as an underwriting profit. And, on the other hand if it pays out more than it has taken in then it has an underwriting loss.

One way of looking at how well an insurance company is doing is to look at their loss ratio. The loss ratio is calculated by taking the losses they had to pay out and add to that the expenses they incurred to actual pay out the
claims and divide that sum by the premiums taken in. A ratio of less than 100% shows a profit and a ratio greater than 100% indicates a loss.

In many cases if an insurance company’s ratio is greater than 100% they can still be profitable. That is because there is usually a period of time between taking in premiums and paying out claims. During that period of time the company can invest the money taken in and they can earn a profit from that investment to offset any underwriting loss and could actually end up with a net profit. For example, if the insurance company pays out 15% more in claims and expenses than premiums it took in, but made a 25% profit from its investments, then it would have received a 10% profit.

So, as can be seen there is more than one way to skin the profitability cat for an insurance company to make money. Two key factors in that regard are how well they can predict their payouts and how well they can invest the money they take in.

Posted in:
How to Make Money