Monday, June 11, 2012

How to Succeed in Personal Finance MLM

Personal finance MLM is a great opportunity and if you are armed with the right skills, you can go far in this business. For this reason many people fail in this business. Let’s face it, business structure, compensation plan, product and training systems etc are important but without the right attitude, these tools are useless. They can’t help you to build any real-time personal finance MLM. It makes sense for those who are just new to building personal finance in MLM to focus on this all-important aspect. The four primary keys to develop an attitude that will lead you to your personal finance MLM success:

• Be Open to Learn
If you are not ready to learn things from others, chances are that you may fail in the MLM business. It’s always wise to learn from those who have been there. Find out those who succeeded in personal finance MLM and ask them how you can make your business work, listen to what they say, and then follow through on their advice. If something does not seem to be working, contact them again and discuss the issue again.

• Understand Your Purpose
There are many people who join MLM because they actually enjoy the challenges of the sales process. Others join it because it had the potential to help them achieve something big in their personal finance and in their lives. The purposes may be different but everyone must have an aim behind joining MLM. And it is this purpose that motivates the people to keep on doing the work that needs to be done in MLM. They always keep their purposes at the forefront of their minds which motivates to work even harder.

• Stay Positive
In order to achieve success in personal finance MLM, you should develop the ability to stay positive. Like anything else, there will be ups and downs in the MLM business along the process. Staying positive through the downs would not just make you relax but will also help you become successful in the long run!

• Be Committed
Commitment is another great thing that determines your success in any niche. You should learn to meet your commitments in order to succeed. Your Personal finance MLM success hugely depends on it.

How to Use Guarantees to Increase Sales?

While the greater portion of my career has been in business development consulting and professional speaking, I have spent many years (over ten) in Direct Marketing and three years on the Web. My favorite marketing "guru" is Dan Kennedy, dubbed "The Millionaire Maker" . And if there is one lesson he teaches from which I derive the most profitable results (one of many from a system he calls "Magnetic Marketing") is the awesome power behind guarantees.
If you offer a product or service without a guarantee, you're losing a great percentage of potential sales. Obviously, the Internet has opened many doors, including those to many unscrupulous entrepreneurs. Scams on the Internet are rampant and, since there is no "official" police or watchdog, I would even venture as to say that millions of dollars are lost to these scamsters each month.
Guarantees Increase Sales
While there are many regionally accredited entities and watchgroups, it doesn't stop many a crafty entrepreneur to bypass the system by going through some obscure country/site to sell their snake oils. In fact, today on the news ("CBC Radio Canada International") was reported a scheme in which a weight-loss drug, not yet approved in Canada, has been bought by a company and sold in Canada on the Internet. The matter is currently under investigation by the pharmaceutical manufacturer and Canadian health officials.
Nevertheless, because of these tricksters and the multitude of challenges presented on the Web, people are leery and will increasingly seek out more secure means to benefit from offers on the Internet. Guarantees are therefore powerful tools for the prosperity-seeking cybermarketer and can do two very important things that will help grow one's profits: Increase sales and reduce returns.
When you offer a guarantee, you reduce the skepticism around the purchase of your product or service. Consumers are cautious of making a purchase via the Web and guarantees give you almost instant credibility with potential customers. If you have a professionally-looking Web site, an ethical sales approach, and a proven product or service, the lack of a guarantee will still, particularly on the Internet, cause most visitors to perceive your offer as questionable in the very least least. 
Guarantees Increase Perceived Value
Chris Ayers, an Internet Marketer and publisher of the FREE newsletter "Unlimited Traffic!" , gives an astonishing real-life example. Writes Ayers, "One of my first direct mail products years ago was a self-study program that I marketed to engineers preparing for a certification exam. (...) When I first offered the program in a trade magazine, my sales weren't even enough to cover the cost of the ad."
He continues: "I changed my ad and sales letter to include a guarantee and the results were amazing! The number of responses to the same ad increased by a factor of 20. And my conversion rate from my sales letter rose from 10% to almost 40%... Just by adding a guarantee!"
Take for instance the story of the Monaghan brothers. The two ran a pizzeria in order to pay their way through college. While one worked the day shift in order to attend school at night, the other did the converse. After about a year in the money-losing venture, one of the brothers sold his share of the business for a beat-up old car "and drove into the sunset." The other, however, with a good dose of stick-to-it-iveness, decided to make something of his fledgeling pizzeria.
According to some interviews he recently gave, Tom Monaghan said that, at the time, he wasn't quite sure that his decision to put a guarantee on his pizza delivery would change much. But obviously, history tells us that his decision was the greatest one he ever made. By simply marketing the strength of a guarantee, i.e., "Pizza delivered fresh in 30 minutes or it's free,"  became the multimillion dollar franchise operation we know today.
Guarantees Reduce Returns
Guarantees will increase sales. And the stronger the guarantee, the larger the increase. But unbeknownst to many marketers, one of the most important benefits of using a guarantee is the fact that it can actually reduce returns. According to certain successful cybermarketers such as Ayers, a strong guarantee results in fewer returns. For instance, Ayers got fewer returns with a 90 day guarantee than he did with a 30 day guarantee. Others got fewer returns when they offered to let clients keep some bonus items if the product was returned.
The parallel obviously dictates. While people order from the Web do so because of the convenience it offers, a site that offers a no-hassle return policy (or risk-free promise) adds to the convenience factor and instills a greater confidence in the buyer's psyche.
If you offer a product or service, find ways to offer a guarantee along with it. Rather than taking a risk by removing it from your potential clients' decisions, you will likely be decreasing it. In other words, use guarantees to guarantee your success.

How to Convert Hits into Sales?

One of the common questions asked by web site owners is: "I’m getting plenty of hits but no sales – what is going on?" This article will give you some tips on how to address this issue.
Your Product
The first area to review is the product or service that you are offering. Does a market exist for it? To answer this question you need to find out whether similar products are being sold on the Internet successfully. If not, you may need to rethink your Internet strategy. If others are selling a similar product successfully, then this would tend to confirm that there is a market for your product.
Next, look at the strategy and pricing being adopted by your competitors. How do you compare? Why should your visitors buy from you rather than one of your competitors? Answering these questions will provide you with valuable information you can use to improve your situation and generate more sales.
Also, take a critical look at your product quality. Does it live up to the claims you are making on your web pages? If not, improve your product so that it does or modify your web page to be more truthful about it.
Provide Solutions
Your visitors are looking for a solution to a problem. Do you know what problems your visitors are looking for solutions to? Does your web site show how your product will solve your visitor’s problem? You will need to put yourself into your visitor’s shoes to better understand what they are seeking so that you can provide the solution they need.
One way to better understand your visitors is to monitor where your visitors are coming from. If they are coming from the search engines, knowing what search terms they are using can provide some clues. You may find some surprises when you review this information about your site. The tool I use to capture this information is WebPosition Gold. More information can be found at the URL: http://www.ksinclair.com/sengine.htm
Once you understand the problem your visitors want solved, revise your web pages to show that your product will provide the solution they need.
Site Design
Your site needs to look like it is a commercial web site rather than an amateur home page. The design needs to be consistent from page to page and it needs to be easy to navigate. Contact details including physical address, phone numbers and email address need to be shown.
Graphics need to be minimized to ensure that your page downloads quickly. Also, ensure that your web host provides a fast connection to the Internet. Most people will not wait for a page that takes a long time to download. They will just move on to your competitor.
Make it easy to order. I recall seeing statistics recently that suggested that a large number of people abandon a web site in the middle of the order process. A common reason for this is that the order process is too time consuming and complicated. Make yours simple and quick and you will lose fewer sales.
Ensure that your web page has a strong headline that grabs your visitors and makes them want to read more. Your headline should in effect say "You have this problem, here is the solution". Your web site should then demonstrate that you understand the problem and that you can in fact provide the solution.

Testimonials and Guarantees
Testimonials and guarantees can have a huge impact on your level of sales. On the web, a key priority is to build credibility. The common methods used are having a privacy statement, publishing a newsletter, publishing testimonials from satisfied customers and providing a strong guarantee.
Take every opportunity to gather comments from your customers about how your product has helped them. Get their permission to publish these comments as testimonials. If need be, provide them with a gift for giving you their permission to publish their comments. A way of getting comments is a customer feedback survey. This can be used for the purpose of gaining testimonials as well as seeking ways to improve your product or develop additional products your customers may need.
A strong guarantee will provide your visitor with greater confidence to purchase your product. Try to make your guarantee simple and without too many conditions. Always honour your guarantee without question or delay.
Conclusion
Getting plenty of hits to your web site is a very positive situation to be in. By implementing some of the hints provided in this article, you can convert these visitors into being your customers.

Advertising on Your Site: When, How & How Much?

This has been a question I've been hearing a lot from my clients, as more and more of them start looking at their traffic analysis and think to themselves that there may be some income involved :)
First of all, there are a few do's and don'ts when taking advertising on your site, although these can depend highly on what type (industry, target market, traffic volume, etc.) of site yours is.
    Do's
  • Find out what your competition is doing in regards to advertising on their site. ***Note*** This must be followed with caution, however, since the fact that someone in your industry is doing it may not mean it's a "good" thing to do (See don'ts list)
  • Get some rate sheets. Ideally from sites in the same industry as your own, but if not, from major traffic sites (There is a caveat to this, as well, see "Pricing")
  • Keep track of your Web stats Even though your Web stats may not be 100% accurate (look for the article "Server Caching: When hits don't count" on Networld), the numbers that your server does log are vitally important, especially to those who may be about to pay you for space within your site.
  • Keep your site updated, fresh, interactive, etc. In other words, keep the traffic flow up. There's nothing worse than selling an advertiser on one set of traffic predictions only to have them fall short because you let the site go stale.
  • Choose carefully between who you allow to purchase space on your site. I'm sure I don't need to think of examples of ads that would actually drive traffic *away* from your Web site!
    Don'ts
  • Don't use link exchanges or banner exchanges if your site is a 'real' commercial venture. With due respect to these organizations, the ads are rather tacky at times, and every Tom, Dick and Jane has a banner exchange on their personal sites. This is not to mention the fact that the only money flow is in the banner owner's direction, since your 'paychecks' from hosting these ads can quite literally be in the decimals of a cent. (And coming from a Canadian, that's REALLY small change!)
  • Don't take ads from adult sites, unless your site is of an adult nature, as well. Like banner exchanges, everybody has 'em, and they do nothing for your commercial site other than slow the download.
  • Don't charge the same rates as Lycos or Microsoft, unless
    a) your traffic is upwards of one million hits a day,
    b) your target audience is so specialized that you are one of the very few serving the market.
  • Don't put a link or banner with the words "Your ad could be here!" on your site. It looks tacky and basically tells people you are hurting for money. Put a small link near the bottom of your page titled "Advertising Info", or similar, with contact information for the person selling the ad space on your site.
  • Don't try selling ads without at least three months of Web stats to back up your traffic claims (that's an absolute minimum, unless you have other publications in which you have advertisers already).
  • These are only a few of the typical do's and don'ts, but they're the most important. Much of it is (I hope) common sense. I have, however, seen many a Web site plummet down the black hole of forgotten Web sites due to tacky, tasteless or grossly inappropriate advertising. Remember, in marketing, all money is *NOT* the same!
Pricing
What can I charge for my ads? This is the question I hate the most, because I have to give the most annoying answer: It depends.
It depends on things like; how long has your site been up? How much traffic actually goes through your site? How many other sites link to yours? Do you already have advertisers in your other publications (magazines, newsletters, etc.) Is your site generally open to the public or closed to members or clients only? How much time do you have to guarantee (as much as possible) the continued traffic patterns?
Aside from that, this newsletter is international in nature, so there may be many factors in your home countries that are different from here (Canada).
One of the best solutions to pricing (on any item, service, advertising, etc.) is the simplest: Ask a valued client what they would pay for such a service. It stuns me how many people think their relationships with their client's are one way only. For example, the client asks you questions/requests services and then pays you for it. ASK. Tell one or three of your client's that you are thinking of allowing advertising within your site and what they, if they were interested in such a service, would be willing to pay for it.
Most will give you an honest answer, or a slightly low-balled one (After all, they may well be interested in the idea!) Most clients will also appreciate tremendously the fact that you value their advice and/or opinions and not only their checks!
What else do I need?
Information. A lot of it. To close the sale on any of the well-paying (and more importantly, regular) clients, you will need detailed demographics on who uses your site, which sections are the busiest, what your traffic patterns are like, who else is linking to your site, search engine visibility, your own advertising of your web site, the nature of your site and the products, services or information it offers, your update schedule, major events for the future, and so on.
Naturally, you will probably not need to give *all* of this information to each and every advertiser, since they will individually consider certain types of data more important than others.
You also need to make sure your site is as promoted as it can possibly be. Even after you've done that, do it some more. Get the cross-links with other sites, make sure your current advertising contains your URL. Be active in the newsgroups (in a helpful, contributing way, no spamming!) with your URL in the tagline. Make sure your invoices, faxes, letterhead, etc., have your URL on them prominently. Keep registering in the other search engines (no, you didn't get them all the first time around, and you never will, there are more every week )
To shamelessly plug my own firm, InternAlysis specializes in just the above types of information: Competitive Intelligence. If you're considering advertising as a primary or even consistent portion of your income model, it is highly suggested that you hire an outside firm to take a look at your site and it's positioning with the competition. There are many people out there that tend to miss a lot on the competition, simply due to their own bias.
will be on your Web stats, what they mean, how they should be telling you how to edit your site, and how to present them to your CEO's or your advertisers

Spin Money from Your Web Site with Rotating Banners

Banners can be found in almost every website. Its popularity as an online advertising vehicle is undisputed although its effectiveness has been under scrutiny lately. Just like radio and TV commercials, we are beginning to click past banners without paying much attention to them. The average click-through rate on banners is only 2.6% - about the same as regular direct mail.
If you want to sell banner ad space on your site, you must come up with a winning strategy to increase the banners' click-through rate. Here are some tips to make your banner advertising more effective:
1. Accept only advertisers whose products or services are complementary to your web contents.
2. Encourage the use of animated banners to attract viewers' attention.
3. Place only one banner per page.
4. Your web page should have a light color or white background for maximum contrast with the banners.
5. Entice people to click on the banners with phrases like "Click here for more information!" or "Win a prize!"
The above measures may attract first-time visitors, but definitely not the repeat visitors. Having seen the same banner in that same spot over and over again, it is unlikely that a repeat visitor would ever click on the banner.
This banner burnout phenomenon can be avoided with a good banner rotation engine. Each time a person goes to your site, the rotation engine will rotate the banners stored in its inventory and present a new banner to the visitor.
The rotation engine can also be used to rotate banners throughout the entire site, in effect, increasing your ad space inventory by many folds. With this system, you can actually run as many banners as you like if you accept advertising on a pay-per-impression basis.
Most advertisers want to place their banners on the main index pages for maximum exposure. As a result, it is not uncommon for popular portal to display up to ten banners on its homepage and none on its content pages. With an automated rotation engine installed throughout the entire site, advertisers need not specify where they want to place their banners. Their banners will be randomly displayed wherever the visitor goes.
Obviously, you need a good banner rotation engine to achieve the above objective - one that will let you track vital statistics such as impressions, click-through, and click-through ratio. There are more than a few banner rotation engines available on the net, but their prices of a few thousands dollars would cut deeply into your profit margins. This is where OrbitCycle comes in.
OrbitCycle banner rotation engine is free of charge! It provides real-time detailed statistics on your banners' impression, click-through and click-through ratio. With OrbitCycle, you don't have to know any type of programming. The program is hosted on OrbitCycle's server, which offers an easy-to-use interface that lets you add, delete and track your banners easily.
You can get the banner rotation engine at http://www.orbitcycle.com. There is no catch! For allowing you to use OrbitCycle free of charge, the company will use 10% of your account's banner impressions to run its own banners or its advertisers' banners. This is a low price to pay considering the fact that most banner exchanges offer a 2-for-1 exchange, which represent an effective cost of 50% for using their services.
Note: Aloha-City has installed a similar banner rotation system in Income Online - a classified ad site for work at home and online business opportunities. The same system can be installed throughout the entire site. Click here for more information on banner advertising in Aloha-City.

How Do I Sell Products Produced by Other people?

The short answer is indirectly, and with a very light touch.
We have all hit sites that seem like nothing but a catalog of stuff being sold. Flashy, blinking banners. Bellowing sound, if you allow it. I don't know how they can sell anything. I run quickly without even a thought of looking back.
When you are selling products produced by others, let the producer do the selling. (If they can't get it done, you have the wrong producer and product.) All you should do on your site is to recommend the product. And to do so indirectly, with little fanfare, may be best. Look at it this way.
When a visitor arrives at your site, the question is always what's in it for me. So you answer this with good useful site content. You provide the information the visitor came to find. Maybe it's air fares to Europe, the cost of renting a house boat for two weeks next summer, all known symptoms of hoof and mouth, or the latest rumors about the price of oil.
Your site has a purpose for being. If all is working well, your visitor arrived in accord with that purpose looking for information you can provide. Do so immediately.
To hit a visitor with a sales pitch is dumb. All surfers know where the Back button lives. And they use it frequently.
One way of looking at your point of view as a webmaster vs that of your visitor is to think in terms of MWR (Most Wanted Response). That is, think of what you most want your visitor to do relative to what your visitor most wants.
It doesn't take a lot of brain power to realize you and your visitor do not ultimately want the same thing. For example, your visitor wants information; you want a sale.
Taking this a step further, it should be obvious that what you want is meaningless to your visitor. Thus you are whipping a dead horse if you do anything other than seek to provide your visitor with exactly what is wanted. That is, your MWR must be for your visitor to find what is needed. To work toward any other objective is to fail.
Suppose your visitor is looking for information about pruning rose bushes. Then her MWR is to find that information. Your MWR at the time of her arrival must be to provide it. If you can, you have accomplished a great deal. You will have drawn her into your site. You have been allowed to demonstrate your resources and expertise. While you may not have made a sufficient impression to assure she will return, she probably will not unless you provided what she wanted.
Now suppose you have a marketing deal with a garden tools wholesaler. That your visitor is interested in how best to prune roses, may mean she is also interested in good pruning shears. Which of the following will bring more sales?
A sentence within the article: "The first step toward good pruning is making sure you have top quality shears. My favorites are made by Diltson. They are simply the best. (Click here for further info.)"
Or ...
Pop up a secondary browser window and in two inch red block letters toss up: SALE! Save 30% if you act right now.
If you think the second approach is even feasible, you're right in only one sense. It is feasible. Some will jump at a sale. Some will even do so when they have no real need for the item on sale!
But you can not build a loyal customer base with the latter approach. The soft sell in the middle of an article in which you are providing needed information will take you much further in the long run. If your visitor clicks on your link, it will be her choice. Thus at the other end of the link, you will know she arrived by choice.
Enthusiastic support is called for. But so is lightness. And grace and style help as well. Something very simple may work best.
"Being the gardening fanatic that I am, I think I've tried every gardening tool made. Those I haven't tossed, lie rusting in the garage. These days, I've given up looking. Diltson tools always deliver. They work better and last longer than any other tools out there. Nothing beats them.
And my visitors say the same thing. Many thank me for recommending them. [A great place here for a testimonial.] Check it out for yourself. Just click here."
Now look what has happened. If your visitor clicks on this link, she arrives at Diltson's showplace with an open mind, probably hoping to find a better tool. With less than eighty words, you have converted a total stranger into an excellent prospect.
Even if your visitor did not click on either link, you still have a big win here. For one, you have not offended her with a blatant sales pitch. More important, she found what was needed, good information about pruning roses. In this, there is at least the beginning of trust and an appreciation for your expertise. From here, she may explore further or come back later.
While we would like to believe this approach always brings a return visit, it just isn't so. A visitor who does not buy on the first visit, and does not come back, is a potential sale lost forever.
But the more important view is to look at this from the other end. If your visitor does not find what is needed, does not recognize your authority and expertise, there will be no coming back. Period. At bottom, your MWR at the time a visitor arrives is to provide precisely what is needed. It is the only way that offers the chance of a future visit and a further opportunity to make a sale.

Requires Of Successful Online Marketing

Knowing what you have to offer that is unique and valuable to others.
I have been online since 1995, and looking for a business opportunity since 1997. What I've discovered since then is, if my idea of an Internet business was to promote affiliate programs, I was basically an employee. I was still working to make somebody else's dreams come true.
Don't get me wrong, I'm an affiliate for some terrific companies, but I also wanted something that I could really call my own. Something to sink my teeth into; that I would make or break by my own creativity, personality, and persistence. I wanted the sense of satisfaction that comes from creating something from nothing; something that would never have existed without my efforts. That's when I started hearing about.
Discovering Your Niche
The Internet is a wonderful, new way to connect with more people, faster. But it is still just a tool, and only as valuable as the information it is the vehicle for. So what did I know (and do you know) that I could share with the world, using the power of today's technology? As a former professional cook, baker and Assistant Pastry Chef, I know more than a little about food, cooking and baking. I realized that, with relatively little effort, I could write ebooks on hundreds of food-related topics! I went from not believing I knew anything of value, to almost having too many great topics to write about!
So what niche can you lay claim to? What is your hobby or favorite pastime? What topic interests you enough to put together an interesting, informative ebook? An ebook that others with similar interests will find useful or even vital, to be considered well-versed in your topic?
Put some thought into the above questions and before you know it, you'll have generated several ideas for ebooks. And your books don't have to be hundreds of pages long. They just need to be long enough for you to explain your subject completely. It could take five pages, fifty, or more. It depends on your topic. If you're having difficulty coming up with good ideas, use the following email address to request a free, 5-day course on creating your first ebook in just 10 days. It's loaded with ideas that will get your creative juices flowing. timswebinfusion@sitesell.net
Hint: If you just want to write about something because it's popular right now, and not because you have genuine interest in the topic, don't be surprised if you find it difficult, or even impossible to finish your ebook. Others may tell you something else, but I've found, if you have no passion for whatever project your faced with, it won't be fun, and if it's not fun, well, it's often never finished!
Maybe there are enough ebooks on "How to make a fortune on the 'Net"? Dare to be yourself and step out of the copy-cat mindset. Be an original! Use the Internet to share yourself and your unique knowledge with the world. If you love fly fishing, or gardening, snowboarding or investing online, write your ebook about THAT!
Don't worry about what's supposedly "hot" right now. If you put some time and effort into a topic you're passionate about, and spend some time locating your target audience, you will create an ebook that others with the same interests will be clamoring to get their hands on! You are an expert at something. And no affiliate program will ever help you share that part of yourself with the world.
Once you have written your first ebook, you'll be faced with having to determine how much to charge for it. This used to be a shot-in-the-dark type ordeal, based on hunches and what other people were charging. Now, it's an exact science, and you can even use the system I'm about to tell you about, for free, to price your ebook, or anything else you are selling for that matter!
It's called "Make Your Price Sell!" by Ken Evoy, and it's so new, your kids haven't even heard about it yet! It's the ultimate product that empowers a-n-y-o-n-e to actually price thei r own products scientifically and exactly. Now you can determine the perfect price for your products with certainty. And no one else in the world is doing this, online or offline. You can learn more about this new tool, and even use it free, here: http://myps.sitesell.com/webinfusion.html
All of the tools you need are readily available, now you just need to get to it! By looking within yourself, you will find information a certain segment of the world "out there" is really dying for. No. you won't be able to be all thing to all netziens. But you will have a better chance of being of value to your niche of netziens. And THAT is something worth doing!

How to Profit on the Internet Easily

Now Over 50 million people have access to the Internet - and yet it is still in its infancy.
Every month sees millions of newcomers and thousands of businesses setting up online.
Combine this huge, expanding audience with the fact that marketing and advertising can be done on the Internet at a fraction of the costs of traditional methods . . . and you have a situation where the potential for online success is unlimited.
Here is a 7-step guide to ensure that you will cash in on this growing boom.
Decide What You Are Going to Sell
The online business opportunities that you will come across can be neatly divided into two areas: (1) Products (2) Services.
Selling Products
When you sell a product you can either carry out the whole operation of handling orders, stocking and shipping the goods, processing the payments
OR
simply market for a company that will handle all the administration for you. Your job is merely to get the orders to the company and then receive commission.
== What product sells well on the Internet ? ==
The item that has been hailed as the number one business product of the future is . . . INFORMATION.
Examples of highly successful information products are the 'how-to' and self-improvement books. If you are knowledgeable about a particular subject you could consider writing and developing your own product and delivering it via E-mail.
Selling Services
One advantage of selling a service is that you can often generate a 'residual' commission - a monthly income all the while that the customer continues to use the service.
== What service is suitable for online selling ? ==
As the Internet boom continues the most obvious candidate is any service which assists companies in using the Internet. A prime example is a web hosting service: a web host will provide the space to put up a web site, the tools to manage it and technical advice.
How to Advertise
The 2-STEP Approach
The usual method of advertising is to have short Classified Ads which leave the reader in a state of enticement, so that he then asks for the full detailed information in your sales letter, ideally sent by autoresponder. The purpose of the ad is not to try to sell the product - it is simply to get interested people to respond.
As your ad may be competing with dozens of others in the same publication you must aim for a winning headline to make it stand out. Use key words which attract readers such as . . . Free, How, You , Money, Secret.
Using a Signature File
A Signature File is a section of text that you place at the end of your articles or E-mail messages. It should contain contact details and a brief summary of what your company offers.
Where to Advertise
Where to place Classified Ads
Online Services Classifieds: The major online services such as AOL, Compuserve, Delphi, Genie, Prodigy, MSN have sections for placing classified ads.
Ezines (newsletters): Ezines are E-mail magazines which you can subscribe to - usually for free. Most Ezines offer low cost advertising and are also an excellent source of marketing tips.
WWW (World wide web): You can set up your ads at web sites for free or at low cost.
Using Signatures in Discussion Groups
A discussion group is a group of people with a common interest in a specific topic. If you participate in discussion groups with useful contributions or helpful articles you can add your signature files at the end of your posting. Here are examples of discussion group areas.
Mailing Lists: There are thousands of mailing lists available on every conceivable topic.
You become a member of a mailing list by sending a simple 'subscribe' E-mail message to the list. You can post a message to the list and it will be distributed automatically to all the subscribers.
Newsgroups: Newsgroups (also known as Usenet) are similar to mailing lists except that you need to access the newsgroup with a newsreader online (whereas mailing list posts are sent to your E-mail box).
Online Services Forums: Similar to newsgroups, usually better controlled and organized.
Other places for free ads
Newsgroups: Some newsgroups allow ads. Examples are misc.entrepreneur, alt.internet.commerce, alt.make.money.fast.
Online services Forums: There are forums where ads are acceptable: try looking for forums which have sections with titles such as 'Opportunities', 'Marketing', 'Business'.
Direct Mail
Direct mail is the sending by E-mail of your advert or sales letter to a list of people who are looking for the product or service that you are offering. Such a list can be purchased from a mailing list broker.
Put Your Work on Auto-Pilot
Here are some software tools which can automate your work and reduce time and money spent online.
Autoresponders
An autoresponder spends 24 hours a day responding to inquires with information such as sales letters, price lists, catalogs, order forms.
If you have ever had to reply manually to 100 responses to an ad you will realize the importance of an autoresponder to any business setting up on the Internet.
Free Agent (for Newsgroups)
Free Agent is a powerful and easy-to-use newsgroup reader. It allows you to browse newsgroups both online and offline.
Navigator (for Compuserve Users)
CompuServe Navigator (CSNAV) allows you to set up in advance a script to navigate the Compuserve Forums, sending and retrieving messages, downloading from or uploading to the libraries.
Waytogo (for AOL users)
If you want to post ads on AOL classifieds then, instead of manually navigating the various menus and options, you can automate the task with a program called "Way To Go".
Set Up Your Own Web Site
Once you have developed a portfolio of (ideally) related items you will want to bring all the information about them together on your own web site. The website will provide you with a 24 hour international presence and a means for people anywhere in the world to obtain free reports about your products or services instantly, especially when complemented with autoresponders.
Design considerations
  • Make your site easy to navigate
  • Don't clutter up your pages with information
  • Ensure that there are no long delays in loading web pages (the chief cause of this is the use of large graphics)
    Content
    Make a good first impression with your front page, make it interesting and let it show clearly what the rest of the site contains. You may only have ten seconds or so to keep your visitor's attention.
    Offer free information and useful articles. Ensure that the content of the site continually changes, consider a weekly column of hints and tips.
    How to Promote Your Site
    Register with search engines
    When people are scanning the Internet for a specific product or service they use 'Search Engines' to feed in a 'keyword' to specify what they are looking for. You can submit your site to these search engines specifying the key words that make up the site, so that your site can then appear in such searches. There are over 20 major search engines, some popular ones being: Alta Vista, Excite, Infoseek, Lycos, Yahoo
    Publicity
    Now that you have a web site you can include it in your signature and therefore publicize it
  • whenever you send an E-mail
  • when you contribute to discussion groups
  • when you contribute a posting to an Ezine
    You can advertise off-line by including your web address on your company stationery, business cards, letterheads, envelopes etc.
    Become an Expert
    Learn how to find information: Master the use of search engines.
    Learn from the work of others: Study other ads, other web sites, other signature files.
    Study online marketing methods: Visit newsgroups and forums, and subscribe to mailing lists. You will find excellent marketing tips from Ezines - just see the footnote below.

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Sunday, June 10, 2012

Glossary And Foreign Exchange Terms


 A

Accumulation swing index (ASI)  An oscillator based on the swing index
(SI.) A buying signal is generated when the daily high exceeds the
previous SI significant high, and a selling signal occurs when the
daily low dips under the significant SI low.
American style currency option  An option that may be exercised at any
valid business date throughout the life of the option.
Arbitrage   A risk-free type of trading in which the same instrument is
bought and sold simultaneously in two different markets in order to
cash in on the divergence between the two markets.
Ascending triangle  A triangle continuation formation with a flat upper
trendline and a bottom sloping upward trendline. (See Triangle.)
Ascending triple top   A bullish point-and-figure chart formation that
suggests that the currency is likely to break a resistance line the
third time it reaches it. Each new top is higher than the previous
one.
Atekubi   A bearish two-day candlestick combination. It consists of a
blank bar that closes at the daily high; the current closing price
equals the previous day's low. The original day's range is a long
black bar.
At par forward spread  Forward price is zero; therefore, the spot price is
similar to the forward price. It reflects the fact that the foreign
interest rate is similar to the U.S. interest rate for that particular
period.
At-the-money (ATM) option  An option whose present currency price is
approximately equal to the strike price.
At the price stop-loss order   A stop-loss order that must be executed at
the precise requested level, regardless of market conditions.
Average options   Options that refer to the average rate of the
underlying currency that existed during the life of the option. This
rate becomes the strike in the case of the average strike options; or
it becomes the underlying, determining the intrinsic value when
compared to a predetermined fixed strike in the case of average rate
options. Average options can be based on the spot rate (spot style)
or on the forward underlying the option (forward style.) The average
can be calculated arithmetically or geometrically, and the rates can
be tabulated with a variety of frequencies.


B

Balance-of-payments   All the international commercial and financial
transactions of the residents of one country.
Bank of Canada (BOC)  The central bank of Canada.
Bank of England (BOE)  The central bank of the United Kingdom. It is a
less independent central bank. The government may overwrite its
decision.
Bank of France (BOF)  The central bank of France.
Bank of Italy (BOI)  The central bank of Italy.
Bank of Japan (BOJ)  The Japanese central bank. Although its Policy Board
is still fully in charge of the monetary policy, changes are still subject
to the approval of the Ministry of Finance (MOF). The BOJ targets
the M2 aggregate.
Bar chart   A type of chart that consists of four significant points: the
high and the low prices, which form the vertical bar; the opening
price, which is marked with a little horizontal line to the left of the
bar; and the closing price, which is marked with a little horizontal line
to the right of the bar.
Barrier options (trigger options, cutoff options, cutout options, stop options,
down/up-and-outs/ins, knockups)   Options very similar to
European style vanilla options, except that a second strike price (the
trigger) is specified that, when reached in the market, automatically
causes the option to be expired (knockout options) or "inspired"
(knockin options).
Bearish tasuki   A bearish two-day candlestick combination. It consists
of a long blank bar that has a low above 50 percent of the previous
day's long black body, and closes marginally above the previous
day's high. The second day's rally is temporary, as it is caused only
by profit-taking. The sell-off is likely to continue the next day.
Bearish tsutsumi (the engulfing pattern)   A bearish two-day candlestick
combination. It consists of a second-day bearish candlestick whose
body "engulfs" the previous day's small bullish body.
Bilateral grid   An exchange rate system that links all the central
rates of the EMS currencies in terms of the ECU.
Black closing bozu  A bearish candlestick formation that consists of a
long black bar (upper shadow).
Black marubozu (shaven head)  A bearish candlestick formation that
consists of a long black bar (no shadow).
Black opening bozu   A bearish candlestick formation that consists of a
long black bar (lower shadow).
Black-Scholes fair value model  The original option pricing model, which
holds that a stock and the call option on the stock are comparable
investments and thus a risk less portfolio may be created by buying
the stock and selling the option on the stock, as a hedge. The
movement of the price of the stock is reflected by the movement of
the price of the option, but not necessarily by the same amplitude.
Therefore, it is necessary to hold only the amount of the stock
necessary to duplicate the movement of the price of the option.
Blank closing bozu   A bullish candlestick formation that consists of a
long blank bar (lower shadow).
Blank marubozu (shaven head)   A bullish candlestick formation that
consists of a long blank bar (no shadows).
Blank opening bozu   A bullish candlestick formation that consists of a
long blank bar (upper shadow).
Bollinger bands   A quantitative method that combines a moving
average with the instrument's volatility. The bands were designed to
gauge whether the prices are high or low on a relative basis. They
are plotted two standard deviations above and below a simple
moving average. The bands look like an expanding and contracting
envelope model. When the band contracts drastically, the signal is
that volatility will expand sharply in the near future. An additional
signal is a succession of two top formations, one outside the band
followed by one inside. If it occurs above the band, it is a selling
signal. When it occurs below the band, it is a buying signal.
Book method   Point-and-figure chart's original name.
Box spread A compound option strategy that consists of four options with a
common expiration date: a long call and a short put at one strike
price, and a long put and a short call at a different strike price.
Breakaway gap   A price gap that occurs in the beginning of a new
trend, many times at the end of a long consolidation period. It may
also appear after the completion of major chart formations.
Breakout of a spread triple bottom  A bearish point-and-figure chart
formation that suggests that the currency is likely to break a support
line the third time it reaches it. The currency failed to reach the
support line once.
Breakout of a spread triple top  A bullish point-and-figure chart
formation that suggests that the currency is likely to break a
resistance line the third time it reaches it. The currency failed to
reach the resistance line once.
Breakout of a triple bottom  A bearish point-and-figure chart formation
that suggests that the currency is likely to break a support line the
third time it reaches it.
Breakout of a triple top  A bullish point-and-figure chart formation that
suggests that the currency is likely to break a resistance line the third
time it reaches it.
Bullish tasuki  A bullish two-day candlestick combination. It consists
of a long black bar that has a high above 50 percent of the previous
day's long blank body, and closes marginally below the previous
day's low.
Bullish tsutsumi (the engulfing bar) A bullish two-day candlestick
combination. It consists of a second bullish candlestick whose body
"engulfs" the previous day's small bearish body.
Bundesbank The German central bank. In addition to its domestic
obligations, the Bundesbank has had international obligations since
1979 as the front player of the European Monetary System. The
Bundesbank is a very independent central bank.
Business firms (establishment) survey  Survey of the payroll, workweek,
hourly earnings, and total hours of employment in the non farm
sector.
Business Inventories  An economic indicator that consists of the items
produced and held for future sale.
Butterfly spread A compound option strategy that consists of a combination
of a bull spread and a bear spread, using either calls or puts.

C

Calendar combination  A compound option strategy that consists of the
simultaneous call calendar spread and put calendar spread, in which
the strike price of the calls is higher than the strike price of the puts.
Calendar spread  A combination option of two similar types of options,
either calls or puts, with the same strike price but different expiration
dates. The dissimilarity between the expiration dates allows this type
of spread to capitalize on both the impact of the time decay and the
interest rate differentials.
Calendar straddle A compound option strategy that consists of
simultaneous buying of a longer-term straddle and a near-term
straddle with a common strike price.
Call ratio backspread  A compound option strategy that consists of
short calls with a lower strike price and more long calls with a higher
strike price. The profit is twofold. The maximum upside profit
potential is unlimited. The downside profit potential consists of the
total premium received. The maximum loss potential occurs when
the currency price reaches the higher strike price at expiration.
Candlestick chart  A type of chart that consists of four major prices: high,
low, open, and close. The body (jittai) of the candlestick bar is
formed by the opening and closing prices. To indicate that the
opening was lower than the closing, the body of the bar is left blank.
If the currency closes below its opening, the body is filled. The rest
of the range is marked by two "shadows": the upper shadow
(uwakage) and the lower shadow (shitakage).
Capacity utilization An economic indicator that consists of total industrial
output divided by total production capability. The term refers to the
maximum level of output a plant can generate under normal
business conditions.
Cardinal square  A Gann technique for forecasting future significant
chart points by counting from the all-time low price of the currency.
It consists of a square divided by a cross into four quadrants. The
all-time low price is housed in the center of the cross. All of the
following higher prices are entered in clockwise order. The numbers
positioned in the cardinal cross are the most significant chart points.
Channel line A parallel line that can be traced against the trendline,
connecting the significant peaks in an uptrend, and the significant
troughs in a downtrend.
Chaos theory A theory that holds that statistically noisy behavior may
occur randomly, even in simple environments. This seemingly
random behavior may be predicted with decreasing accuracy if the
source is known.
CHIPS (Clearing House Interbank Payments System)  A computerized
system used for foreign exchange dollar settlements.
Christmas tree spread   A compound option strategy that consists of
several short options at two or more strike prices.
Classes of options  The types of options: calls and puts.
Combination spread (synthetic future)   A compound option strategy
that consists of a long call and a short put, or a long put and a short
call, with a common expiration date.
Commodity Channel Index (CCI)   An oscillator that consists of the
difference between the mean price of the currency and the average
of the mean price over a predetermined period of time. A buying
signal is generated when the price exceeds the upper (+100) line,
and a selling signal occurs when the price dips under the lower (-
100) line.
Commodity Futures Trading Commission (CFTC)  An independent agency
created by Congress in 1974 with a mandate to regulate commodity
futures and options markets in the United States. The CFTC's
responsibilities are to ensure the economic utility of futures markets,
via competitiveness and efficiency; ensure the integrity of these
markets; and protect the participants against manipulation, fraud,
and abusive practices. The Commission, based in Washington, D.C.,
regulates the activities of 285 commodity brokerage firms; 48,211
salespeople; 8017 floor brokers; 1325 commodity pool operators
(CPOs); 2733 commodity trading advisers (CTAs); and 1486
introducing brokers (IBs).
Commodity Research Bureau's (CRB) Futures Index      Index formed from
the equally weighted futures prices of 21 commodities. The
preponderance of food commodities makes the CRB Index less
reliable in terms of general inflation.
Common gap   A price gap that occurs in relatively quiet periods or in
illiquid markets. It has limited technical significance.
Condor spread   A compound option strategy that consists of either
four same-type options with a common expiration date—two long
options with consecutive strike prices, one short option with an
immediately lower strike price, and one short option with an
immediately higher strike price; or four same-type options with a
common expiration date—two short options with consecutive strike
prices, one long option with an immediately lower strike price, and
one long option with an immediately higher strike price.
Consumer Price Index (CPI)   An economic indicator that gauges the
average change in retail prices for a fixed market basket of goods
and services.
Consumer sentiment   A survey of households designed to gauge the
individual propensity for spending. There are two studies conducted
in this area, one survey by the University of Michigan, and the other
by the National Family Opinion for the Conference Board. The
confidence index measured by the Conference Board is sensitive to
the job market, whereas the index generated by the University of
Michigan is not.
Continuation patterns     Technical signals that reinforce the current trends.
Cost of carry   The interest rate parity, whereby the forward price is
determined by the cost of borrowing money in order to hold the
position.
Council of Ministers  The legislative body of the European Economic
Community in charge of making the major policy decisions. It is
composed of ministers from all the 12 member nations. The
presidency rotates every six months by all the 12 members, in
alphabetical order. The meetings take place in Brussels or in the
capital of the nation holding the presidency.
Country (sovereign) risk   A trading risk emerging from a
government's interference in the foreign exchange markets.
Covered interest rate arbitrage  An arbitrage approach that consists of
borrowing currency A, exchanging it for currency B, investing
currency B for the duration of the loan, and, after taking off the
forward cover on maturity, showing a profit on the entire set of
deals.
Covered long   A compound option strategy that consists of selling a
call against a long currency position. A covered long is synonymous
with a short put.
Covered short   A compound option strategy that consists of shorting a
put against a short currency position. A covered short is synonymous
with a short call.
Cox, Ross, and Rubinstein pricing model   An option pricing model that
takes into consideration the early exercise provision of the American
style options. As it assumes that early exercise will occur only if the
advantage of holding the currency exceeds the time value of the
option, their binomial method evaluated the call premium by
estimating the probability of early exercise for each successive day.
The theoretical premium is compared to the holding cost of the cash
hedge position, until the option's time value is worth less than the
forward points of the currency hedge and the option should be
exercised.
Credit risk   The possibility that an outstanding currency position may
not be repaid as agreed, due to a voluntary or involuntary action by
a counterparty.
Cross rates   Currencies traded against currencies other than the U.S.
dollar. A cross rate is a non-dollar currency.
Currency call  A contract between the buyer and seller that holds that the
buyer has the right, but not the obligation, to buy a specific quantity
of a currency at a predetermined price and within a predetermined
period of time, regardless of the market price of the currency. The
writer assumes the obligation of delivering the specific quantity of a
currency at a predetermined price and within a predetermined period
of time, regardless of the market price of the currency, if the buyer
wants to exercise the call option.
Currency fixings   An open auction executed in Europe on a daily basis in
which all players, regardless of size, are welcome to participate with
any amount.
Currency futures   A specific type of forward outright deal with
standardized expiration date and size of the amount.
Currency option   A contract between a buyer and a seller, also known
as writer, that gives the buyer the right, but not the obligation, to
. trade a specific quantity of a currency at a predetermined price and
within a predetermined period of time, regardless of the market price
of the currency; and gives the seller the obligation to deliver or buy
the currency under the predetermined terms, if and when the buyer
wants to exercise the option.
Currency put   A contract between the buyer and the seller that holds
that the buyer has the right, but not the obligation, to sell a specific
quantity of a currency at a predetermined price and within a
predetermined period of time, regardless of the market price of the
currency. The writer assumes the obligation to buy the specific
quantity of a currency at a predetermined price and within a
predetermined period of time, regardless of the market price of the
currency, if the buyer wants to exercise the call option.
Current account balance  The broadest current dollar measure of U.S.
trade, which incorporates services and unilateral transfers into the
merchandise trade data.

D

Daylight position limit   The maximum amount of a certain currency a
trader is allowed to carry at any single time, between the regular
trading hours.
Dead cross  An intersection of two consecutive moving averages that
move in opposite directions and should technically be disregarded.
Dealing systems    On-line computers that link the contributing banks
around the world on a one-on-one basis.
Delta (A) (1)  The change of the currency option price relative to a change
in the currency price; (2) the hedge ratio between the option
contracts and the currency futures contracts necessary to establish a
neutral hedge; (3) the theoretical or equivalent share position. In the
third case, delta is the number of currency futures contracts a call
buyer is long or a put buyer is short. Delta ranges between 0 and 1.
Descending triangle   A triangle continuation formation with a flat
lower trendline and a downward-sloping upper trendline. (See
Triangle.)
Descending triple bottom   Bearish point-and-figure chart formation
that suggests that the currency is likely to break a support line the
third time it reaches it. Each new bottom is lower than the previous
one.
Diagonal spread   A compound option strategy that consists of several
same-type options, in which the long side and the short side have
different strike prices and different expirations.
Diamond   A minor reversal pattern that resembles a diamond shape.
Direct dealing   An aggressive approach in which banks contact each
other outside the brokers' market.
Directional Movement Index   A signal of trend presence in the market.
The line simply rates the price directional movement on a scale of 0
to 100. The higher the number, the better the trend potential of a
movement, and vice versa.
Discount forward spread   A forward price that is deducted from a
spot price to calculate a forward price. It reflects the fact that the
foreign interest rate is lower than the U.S. interest rate for that
particular period.
Discount rate   The interest rate at which eligible depository
institutions may borrow funds directly from the Federal Reserve
Banks. The rate is controlled by the Federal Reserve and is not
subject to trading.
Discretion for range to trader stop-loss order   A stop-loss order that
gives the trader a number of discretionary pips within which the
order has to be filled.
Double bottoms   A bullish reversal pattern that consists of two bottoms
of approximately equal heights. A parallel (resistance) line is drawn
against a line that connects the two bottoms. The break of the
resistance line generates a move equal in size to the price difference
between the average height of the bottoms and the resistance line.
Double tops   A bearish reversal pattern that consists of two tops of
approximately equal heights. A parallel (support) line is drawn
against a resistance line that connects the two tops. The break of the
support line generates a move equal in size to the price difference
between the average height of the tops and the support line.
Downside tasuki gap   A bearish two-day candlestick combination. It
consists of a second-day blank bar that closes an overnight gap
opened on the previous day by a black bar.
Downward breakout of a bearish support line   A bearish point-and-
figure chart formation that confirms the currency's breakout of a
support line the third time it reaches it.
Downward breakout of a bullish support line   A bearish point-and-
figure chart formation that confirms the currency's breakout of a
support line the third time it reaches it. The support line is sloped
upward.
Downward breakout from a consolidation formation   A bearish point-
and-figure chart formation that resembles the inverse flag formation.
A valid downside breakout from the consolidation formation has a
price target equal in size to the length of the previous downtrend.
Durable Goods Orders   An economic indicator that measures the
changes in sales of products with a life span in excess of three years
More In
Lessons coming



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