Cast B2007

Archive for November, 2010

You can make money by selling advertising on your blog. It’s far easier than it sounds. I know the word “sell” scares a lot of people, including me, but blog advertisers will often approach you if you have an established blog. I have never approached an advertiser directly, yet have advertisers approach me monthly using the techniques outlined below.

Prices are all over the place. I have some advertisers who pay me five dollars a month for a simple text ad on a single post, to advertisers paying me $25 and up each month for a text ad in the sidebar. Typically graphical and other larger ads command higher prices as well.

How do you attract advertisers? There are two primary techniques I use:

1) You can add an “advertise with us” link prominently displayed. This technique earned me $600 the first week I tried it!

Unfortunately much advertising has gone underground as Google frowns upon advertising with live links in them, and much of what advertisers want is often the link to their site. Still, this technique works quite well.

2) You can simply display some ads to make it clear you accept advertising. But how do you get your first advertisers? Just approach some companies who have complementary services to your blog’s topic and offer them free advertising. It’s simple to get free advertisers; I tapped some consulting clients who were quite happy to have a free ad on my blog.

Another option is to use advertising networks to do the selling for you such as CrispAds.com, PerformancingAds.com and AdBrite.com. They will take a cut of the overall advertising revenue.

I turn down a lot of ads, and I recommend you do also. I turn down all ads to spammy Web sites and ones that are unprofessional. Also be prepared for some negotiation over ad prices. Sometimes advertisers will offer you an absurdly low price for ads and then quickly raise their prices. Some advertisers however will not be willing to pay a reasonable price and although I’ll negotiate, especially for multiple ads, I often turn down potential advertisers on price alone. On average, I work out a deal with about half the advertisers who approach me.

Advertising is a great way to make money from your blog. Many advertisers are happy to pay on a monthly or quarterly basis as well, resulting in a steady residual income.

The numbers are in and AIG, Allstate, Metlife, State Farm, and New York Life are not going to be happy-their industry continues to decline in profitability. This slide began in 2007 and shows no sign of letting up in 2010.

The numbers come from industry data collector and analyst SNL Financial, who showed that the industry lost over $900 million in quarter-two of 2010. Their net income, not profit, is down from this same time last year.

The bright side, the better capital and surplus numbers that are 17% higher than second-quarter 2009, are not enough to restore confidence in share-holders and brokers on Wall Street either.

However, the big shots at AIG, New York Life, etc, are still talking quite a game. They claim that the present market is an opportunity to grow stronger. They see that 2/3 of Americans are uninsured and think that they can capitalize on it. It’s tempting to dismiss this as bombast meant to boost the company’s stock prices. However, they are backing it up with action.

Tens of thousands of new agents are being hired this quarter. And hiring shows no signs of slowing down.

The economy scared these people away from life insurance in the first place and it certainly hasn’t gotten much better, so why are they so confident?

There is a formula of sorts that is very popular among these companies. It’s something along these lines: the economic crisis + tax hikes (end of tax cuts) = more customers.

If this equation doesn’t quite make sense to you, that’s normal. It doesn’t really make sense. It is kind of optimistic, but that’s good for you. We’ll get to that. For now, here’s another piece of information that might make sense.

They are going to rebrand.

Instead of just something you need to have in case you die so your family is secure, they are going to try to convince the public that life insurance is a financial investment-something that will allow the policy-holder to hedge their bets in a risky economy and be certain they don’t lose money while covering their butts.

This still might not make sense to you if you’re not a finance guru, and that’s okay! Because here’s the bottom line for the consumer is coming up. Fast ball, down the middle. Hit it out of the park now!

It’s never been a better time to buy life insurance.

They decrease in profits and the mass hiring of agents means one thing: they are as close as desperate to get you on a policy as they are likely to get. Given that Americans need life insurance more than ever before, you should be in the market.

You’ll get a better price on good coverage than you have ever gotten in the past and are likely to get in the future as the economy recovers.

You don’t have to talk to an agent though. Whittle the prices down even lower by comparing quotes online. Free life insurance quotes in this market will save you more money than you thought possible.

A lot of people ask us as part of their search for a condo, which ones are better investments. Personally, if I knew the answer to that 100%, I would be writing this from my own private island. Alas, that is not the case and I write in my home office, looking out at the snow.

There is no hard and fast rule when it comes to investment condos. A lot of it depends on what exactly you are looking to get out of it. Some people think of investment condos as rentals, while others are thinking of sales value down the road.

If you are looking to buy a condo to rent out, then there are a few factors you need to consider.

First, don’t just buy the smallest and/or cheapest unit you can find. Not too many people are going to want to live in it – would you? Instead, think of who your target market is going to be. If you want singles, then one bedroom condos would be fine. Once you get to couples (with the possibility of children), then you are going to want to think more in terms of larger units with two bedrooms.

Speaking of which, there has been a recent hue and cry over the lack of condos that are suitable for families. Sure, there are a few tired old buildings with three bedroom units, but they are few and far between. Where are the new units? What are the options for the families that don’t want a house? Or those than can’t afford a house? Before I get to really ranting, I just wanted to point out that condos need to be equal opportunity. They are not just for singles or couples or empty-nesters. Some people want to raise a family in the sky. Time to do something about it. Anyway, on with the article…

Location is also going to have a bearing on your target market, or on the available pool of renters who will make up your market. If you want primarily university students, then look to buy near U of T, York, Ryerson, etc. Don’t forget the smaller schools and colleges, such as George Brown or Sheridan. There are a lot of students in Toronto, so there are a lot of options for you to appeal to them.

The flip side of course, is that if you don’t want student renters, don’t buy near where they would want to live!

If you want doctors and nurses and interns and the like, then you are going to want to buy along Hospital Row, or not too far from it. Yes, there are more isolated facilties around the city, but stay close to where the biggest renter pool is likely to be.

Many people often ask about new condos versus resale as rental properties. This is a hard one, but my gut feel is that new buildings are not the best bet. Maybe if you are going for a 1,200 square foot penthouse with a view to die for, but a simple one bedroom just puts you in the pack with everyone else. If a 300-unit building has 30 people buy to rent out, you are going to be facing some stiff competition to get a renter into your unit. You may be best to simply avoid that sort of competition and look for resales or smaller new developments.

Speaking of competition, this might be a good time to delve into a discussion of rents and their recent decline. With all the condo action in Toronto the past few years, many units have been built and many have been bought to rent out. As with any market, supply and demand dictate pricing. When there are more units than renters, there is more and more competition to get those lease dollars. Thus, rents go down.

Even with a decline in rental amounts, if you are buying as an investment, you need to look at the larger picture. Don’t expect to pay your mortage and condo fees – and make a profit. Those days are gone. But add up all the monthly expenses and if you get a rental amount that is not so much less than you are spending, then you have to think about it more in terms of your mortgage only costing you $100 a month. Even if it is $300 a month, that is significantly less than if you were paying everything yourself. You don’t get much for nothing these days, so be happy that someone is helping subsidize your mortage.

Now, there is another group of people who are thinking more about sales in the future. Some may be buying a condo off plans with the thought of flipping it once the building is done. I don’t want to repeat myself, but basically re-read what I said above about buying in a new development to rent. Being one of the herd is not always a good thing.

It used to be that buying new and selling it after living in it for a few years was guaranteed profits. Not so much anymore. Land costs and building costs are up, plus builders know they can get more for their product. Thus you have to think more strategically these days.

There are three things I generally advise when people ask me what to buy that will increase over the years.

First is to buy large. Buy as big a condo as you can afford. This is for two main reasons. The first is as above, so as not to be one of 100 one bedroom units for sale in a building. The second is that a large segment of future condo buyers are going to be empty-nesters and downsizers. Many older couples will be leaving their larger homes and they are not going to want to live in a 650-square-foot one-bedroom condo.

Second is to look for up-and-coming areas. Of course, that leads to the question of what areas are up and coming. Anywhere the prices are not through the roof. Areas where there are very few new developments. Areas you see or hear or read about. Take the Queen East corridor – that is going to be the next King West, mark my words. Have you heard the terms Leslieville or Studio District or Corktown bandied about? There’s a reason for that…

Third and last is to try to find something as unique as possible. Again, when it comes time to sell, you need something to help you stand out from the crowd. Many people don’t want the norm, they want something interesting. Think about a loft, especially a conversion. Something with a unique layout or different location. Anything that is not the same as 99% of your competition.

I know this might be a lot to digest, but trust me, read it through and think about it. There are a lot of options out there and you need to narrow them down to only the best ones for you. Of course, every situation is different, but that is why the end result will have a different shortlist for everyone.

And that is what helps to keep the market unique and allows people to make money in real estate.

As with many things in life, timing is everything and investing in any type of real property is no exception. Whether one is a trained veteran or a newcomer to the field he should always employ proven strategies.

A realistic approach needs to be taken. This is achieved by educating oneself in investment strategies. The most common method of gaining advice is from individuals or companies, although there are always two sides to every coin.

Selecting an investment advisor can be a tricky process. One must consider their credentials as well as their investment history. When choosing an advisor here are some questions to consider asking: why are they willing to impart their knowledge, what percentage of their income is from real property investing, and how many properties do they presently have.

Another resource for investment knowledge is the experienced real estate agent. The market data and statistics at their disposal coupled with a background working with investors enable many agents to be quite adept in purchasing investment properties. They also have several resources that are not attainable by the average consumer.

The fundamentals of real estate, including but not limited to, supply, demand, location, and demographics are essential to a good decision making in investments. Most investors begin in the residential market. However, whether it is residential or commercial real estate there is a large amount of risk associated with any property investment. Furthermore, property maintenance and administration is essential to any investors success.

Achievable and pragmatic goals are necessary, for long or short-term strategies. While these goals may vary over time, they must be realistic and attainable. Does the investor want to build up equity, maximize cash flow, or use a pyramid approach (utilizing one property in order to acquire multiple properties)?

A long-term strategy can be more uncertain. While the return is almost always positive, it often requires extensive patience and time. Short-term investing is more precarious, and therefore, may be more profitable. One of the more common strategies is “flipping”, whereby one buys a property below market value, enhances it, and resells it. A miscalculation of repair costs could “eat up” any profits that initially were considered.

There are basic principles to which all investors should adhere. Be educated in all areas of the real estate, be it residential or commercial. Develop a plan. Make your goals within reach and practical. Investing in properties can be very profitable, especially when incorporating these principles.

In this hurry up and make money world where people are getting unemployed at a rapid pace, it is no wonder that more and more people are looking to start a successful online business. There are so many ways to make money online. With that said, there are two major types of business models that every day people like you and I can use to make money and blogging has everything to do with these.

One of the most common ways to turn a blog into a profit making money making machine is to sell some form of advertising to any number of different companies and brands who may want to reach your blog’s readers. These kinds of brands and companies are out there you just have to find them.

The second type of money making blog is one that offers to helps a single kind of brand or product to improve the image by allowing it to creating positive associations between the blogs and the product in the mind of consumers. Both kinds of blogs can or service/ This tens to make a lot of money, especially if the blog’s creator has a keen or sharp mind for marketing the blog or product or service. If you set selling advertising as your goal there are two basic ways that this can be done.

First you can start recruiting sponsors who want to put ads on your site. If you like and want to work smart, you can let someone else do all of the legwork. If you want to you can do the legwork for yourself. Many make money using blogging by selling space and with Google’s AdSense program. Some of the advantages of this AdSense are numerous, this requires very little effort and the blogger or webmaster is able to make money from the clicks quickly.

This method is not always as much money as your blog is able to earn however. At first there was a lot of people doing this method. As people saw what their blog was able to make they got the idea that it could be used to get even more money and more and more people started to do other money making projects with their blog. The truth of the matter is, that there are so many ways to make money with you blog today that everyone can use this form of money making as a business with much success.