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The Great Debate – Real Estate Investing vs Stock Market Investing

Breaking Investment Discovery

Invest in the Real Estate Market or the Stock Market?

Everyone should have a well rounded financial portfolio. This means that you should at least have some investments in the stock market. Over the past years the stock market does appear to have kept up with the rate of inflation; however, investment in real estate is a far more stable investment.

The stock market has made many people wealthy. The problem with the stock market is that profits can be wiped away in the blink of an eyes. An unexpected drop in the stock market can destroy an investors portfolio. If you have a large percentage of your investments in the stock market, you must move a large portion of your investments into a more stable real estate investment.

One of the greatest benefits of investing in the real estate market is the leveraging opportunity. With real estate investing, you can leverage your investment 10 to 1. With stock market investments, you can only leverage your money 2 to 1.

What does leveraging your money mean?

When you leverage money, it means that you can use the money of someone else to raise money. Just like a lever raises something up, in real estate, you can leverage money 10 to 1. If you have $10,000 ,you can use this to get (or raise) a loan of $90,000 for a total of $100,000 towards a real estate investment. With stock investments, $10,000 would only get you $20,000 for stock investments. This is called buying on margin in the stock market (very risky).

Now of course, no investment is perfect. If property values fall, this leverage can work against you. The solution to this is to hold on to your real estate investments for the long term. This will begin to secure your financial future.

Blessings to Your Real Estate Investing,

Valarie Jacobs

Online Commodity Investment – A Great Option For Investing Money Online

Did you know that there’s more that you can invest in online than just stocks and currencies? You can invest in commodities online as well. Online commodity investment is an option that you can use to help with getting commodities and trading them. In fact, you can use all sorts of different websites to use for online commodity investments.

Online investments involve handling certain types of investment transactions online, and commodities are one of those things. This is where you buy up a certain amount of a commodity and sell it at a predetermined date based on the future value of the product. Of course, while you can get a good profit on your investment there is always the risk of losing money, but this is something that is similar for all types of investments.

Another of the benefits of online commodity investments is that you can trade for all sorts of different types of commodities online. These include grains, livestock, metals and minerals. In fact, no matter where you live you can acquire commodities and invest in them. That?s because most every market for commodities, from Chicago to London, is available online to anyone.

Also, investing money online through this option is a great thing to consider in that various different markets are open at any time of the day. This is because there are markets that are open throughout the entire world. Of course, not all types of commodities will be available for trading at any time of the day, as certain markets will only be open for specific periods of time. For instance, you may be more likely to find good deals on metal futures when the London Metal Exchange is open for trading.

All sorts of different websites are open for investing money online with commodities. First Online Commodity Trading, which is online at 1st-online-commodity-trading.com, has some of the best options to use and handles markets from all over the world.

ClearTrade is another option to use. Located at cleartrade.com, serves various different groups online and all varieties of commodities. The site also features CT Xpress, a futures trading program that makes it easier for you to trade commodities online.

Of course, many different groups that have physical offices will have these services available online. You will need to check the websites of these specifics groups for additional information though.

Online commodity investment is one of the top forms of investments that are available online. When investing money online you can find all sorts of commodities from all over the world available for investing. You can even use all sorts of different websites for help. This is one of the top options to use in that you can find all sorts of options online for trading commodities.

The Top Ten Criteria For the Perfect Home Business

In the beginning, I thought my first major business was a dream business. I ran archaeological expeditions all over the world. It was fun, glamorous, and profitable. I had lots of incredible adventures and provided them for many other people as well. I consulted with foreign governments, flew everywhere first class, enjoyed 5 star hotels, luxury cruises, and cuisine to kill for. There were also austere accommodations in the mountains, in jungles, and deserts, but that was all part of the experience.

However, after a few years, I realized that I had created a monster with lots of employees, and a big building full of tenants. Unwittingly, I had turned myself into a desk jockey. It wasn’t fun anymore, so I quit and retired at age 45.

After too much leisure time and some more travel, I figured out that I needed a project that would make life worthwhile. I set out to find a perfect business that wouldn’t have all the negative aspects of the previous one that had grown to control my life. I set forth some criteria for what I felt would be the perfect business. Let me share them with you.

Ten criteria for a perfect home business

1. First and foremost, it had to be a business that didn’t require any employees. I was sick of employees. I actually felt as if I had been working for them in putting their welfare before mine in most cases. NO Employees!

2. It had to be a business for which I could outsource any temporarily required extra labor as in a virtual corporation or simply using commission or contract workers as needed. In that way, there wouldn’t be all the continued overhead of maintaining employees. Outsource labor when needed.

3. It had to be a highly profitable business with an extremely high profit margin. The problem with most businesses is that once you sell the product you have to purchase more raw materials and then make more product to sell. That’s not a good business.

4. It had to be a highly leveraged business that would allow me to make money while I slept. A bad business is one that requires that you trade your time for money. This is a particularly poor business model because there are only so many hours in the day so that your income is limited no matter how much you charge per hour. Even the highest paid professional working by the hour is limited in income potential. Not only that, but you are required to be at a certain place at a certain time to take care of business, and that sucks.

5. The ideal business is one that can be automated with a money-making engine that grinds away unattended.

6. It had to be a business that I could run on my computer as I had acquired a real passion for the fun and power of computers.

7. It had to be a business that I could run from home. I didn’t want to have to commute through traffic and bad weather everyday to an office downtown. I wanted my commute to be about 30 seconds or less walking downstairs to my home office. Of course that meant that I could go to work in sandals, T-shirt, and shorts as well. The other major attraction of a home office is the economy of it because the expenses are tax deductible rather than having to pay taxes on it. This makes the overhead low and adds to the profits.

8. It had to be a simple business that was easily duplicated in case I ever wanted to package it, franchise it, sell it, or take on affiliates.

9. The ideal product would not involve expensive shipping, packaging, and handling. Complicated shipping and packaging can be a profit killer, time consuming, and limit your ability to run the business remotely.

10. Clearly, the business had to offer a product or products that served a perceived need and for which there was a reasonable demand in the marketplace.

The painful process

It was a long, painful process coming up with the right product, for a lot of great ideas had to be eliminated along the way. While there were products that were unique, exciting, and satisfied needs, they were either too expensive, not highly profitable, or difficult to ship. I immediately eliminated all manufacturing and processing types of businesses-no cookies and no widgets. Of course I also immediately got rid of all service businesses, no matter how professional because all they did was trade time for money-a horrible business model.

It didn’t take long until I was scraping the bottom of the idea barrel. Franchises were costly and hugely labor intensive. Turnkey business solutions were abundant, but did not meet all of my criteria and had to be crossed off the list.

Naturally, I looked into the typical MLM business model that wants you to recruit all your friends, relatives, and neighbors, buy a bunch of crap and store it in your garage and then ship it out if you can sell it. I wasn’t into selling soap or vitamins. I wasn’t about to bug my friends and neighbors.

Besides, MLM is a dreadful business model. It’s supposed to a wonderful world, an ideal business because you recruit others to work under you who do all the selling. Your job then becomes that of a motivator. But, even if you can build up a nice residual income after a few years, and I stress the YEARS, it can all come crashing down on you because you are ultimately dependent on others under you. People get disenchanted, pull out, and move on. Nope, that’s not a good business for too many reasons to go into here other than to conclude that MLM should be avoided at all costs as a lousy business format.

Affiliate Marketing

What about the latest craze in online marketing- affiliate marketing? I must admit that it has its strong points and really fits most of my criteria. In fact, it is almost a perfect business model because you don’t have to invest in products or create products. The supplier ships for you, collects the money, and pays you. All you have to do is find a worthwhile product in demand and market it properly.

But, therein lies the rub. If you find a great product, probably a lot of others will have found it as well. Accordingly, there’s going to be a lot of competition for search engine placement, and pay per click keywords will be sky high, which drives up advertising costs and lowers profits. Speaking of profits, they usually are not all that high. The most I have ever seen is 75%, and of course those are the ones everyone wants to market and there is a lot of competition lowering your chances of success and high profits.

If the truth be told, most people don’t really make a lot of money with affiliate marketing. But some do, of course, and more power to them. Generally, I did not feel that affiliate marketing filled all my criteria for the perfect business.

The affiliate marketing lesson

But what can we learn from the affiliate marketing model? As I pointed out, there are many attractive aspects of affiliate marketing, and some people have taken advantage of the concept very successfully. Certainly there are people who have used other business formats successfully too. But, they usually end up working their butts off and become prisoners in their own traps.

Remember, I am looking for a business that is highly profitable and frees me from the day to day drudgery, a business that works mostly on autopilot that I can monitor from anywhere in the world while on an adventure. There is a huge difference.

What I learned from affiliate marketing is that the most highly profitable products, the ones that pay those 75% commissions are always information products. These are electronic products that cost almost nothing to produce, reproduce, and ship.

You can market these products online at little expense. You can even use an affiliate marketing structure to help you market the electronic products. What can be better than having other people spending their money to market your products? That is the real power of affiliate marketing. In general, use it to market your own products, don’t market other people’s products.

Be in charge of your own destiny by controlling the information you sell. It is all right to use others to help you market, but don’t become dependent on them as in the MLM model. I think the difference should be abundantly clear, however, because you are getting paid right now, upfront, and not waiting for an MLM residual income to build up that might never happen.

Conclusions

The perfect home business is one that creates and sells an information product that solves a problem, serves a need, and is in reasonably high demand. Obviously you have to do some market research to find a niche. Then you need to create the product. If you are a lousy writer, you can easily outsource an eBook for relatively little money. You can even create a whole line of products and eventually bundle them into a package.

With Websites, blogs, squeeze pages, newsletters, autoresponders, shopping carts, electronic payments and electronic shipping or downloading, an electronic information business can be put on autopilot and easily monitored remotely for tweaking and introducing new products from time to time.

There is one exception to the rule about creating your own information product, and that is if you find one that is amazing in the information that it provides and hugely profitable, then don’t reinvent the wheel. Wealth Actualization would be an example of such a program. It has the further all essential benefit of helping with the marketing and super support.

Now that we have isolated the criteria for the perfect home business and identified a class of products that qualify, we need to turn our attention to the creation of the products and ultimately how to market them. But those are subjects for future articles and not within the scope of this investigation.