The Economics of Online Education

As more and more universities are opening up to the idea of online proposition, it becomes important to raise the question: “Can online-education be a profitable and sustainable business?” To answer this question, let us explore the various important facets of this model which would decide the feasibility and financial sustenance of the e-idea. Some key parameters to be considered are the demand, ability to supply, technology and delivery process.

The demand for the service is abundant as previously discussed and so is the availability of market players who could cater to this growing demand. Hence, the viability of the proposition rests solely on the issues of effectively delivering the services and choosing or rather designing an appropriate business model. It is critical to analyze the following factors to assess the economics of the idea:

-Virtual university vs. traditional university (in transformation)
-Selling commodity vs. selling experience
-Technology: availability and costs
-Process of delivering quality and differentiation
-Cost analysis: Initial vs. marginal

Virtual University vs. Traditional University
There could be two different versions of an online education: a virtual online model and an existing university expanding its traditional model to accommodate the online proposition. Both models have different economics. A virtual model starts from scratch and has no prior experience with a traditional education model; it prepares curricula either by itself or in conjunction with an existing educational institution; it also has low infrastructure expenses but simultaneously no branding support.

It is relatively easy to start this business, but what matters are the quality of content and the process of delivery. For standard modules or programs, this seems to be a good venture as the content would not be difficult or expensive to produce or distribute. However, care needs to be taken to ensure the target segment for the program is carefully identified, as this model is not only competing with traditional models but also with online propositions of existing reputed educational institutions.

On the other side are the existing schools that would be extending their services to e-learning. These do face a challenge of adopting a business model which may not be compatible with their existing proposition. There is a risk of cannibalizing their existing successful business model. Both models, if to be continued simultaneously, need to be targeting reasonably different markets.

This model has an edge over a new virtual setup in terms of already available content and existing and successful brand; thus the institution could charge a premium. The model does not require huge costs as the content is available, and only needs to be digitized; it is also relatively easier to generate demand for the proposition, riding on the back of the existing traditional model. However, the institution still needs to work towards differentiating the model, not by the content but by the process of delivery.

Selling Commodity vs. Selling Experience
The institution may well decide to sell 10,000 degrees a year or may like a number that is much lower (i.e. < 200). The question is whether the institution is attempting to focus on the quality of the students and education or is merely happy with building the numbers and playing on cost. Online education does provide an opportunity to reach the masses with very low marginal costs but simultaneously could affect its reputation.

Though it is extremely hard to replicate the experience and environment of a traditional model, an attempt to get the program experience as close to the traditional experience would be considered a good differentiating factor. This experience would not stem from the content of the program as it is easily replicable, but from the content delivery process reaching the end user. Again, the type of module and the class of customer segment would decide upon the extent of the “experience” required to be instilled in the program.

Technology: Availability and Costs
The complete business idea of online education is dependent on technology. The base of this technology is the internet which is the fastest growing tool in terms of number of users. According to Lance Secretan, “It took 37 years for TV to reach 50 million homes and it took the web 4 years to do the same.” Though the base technology (the internet) does not seem to be a constraint, the bandwidth available to support the online education is questionable. Technology such as streaming audio and video requires huge bandwidth which may not be a constraint for institutions but for end users.

In most countries, the internet is at a nascent stage. More importantly the bandwidth to support “virtual reality” is not available. Even in developed countries it would be very expensive to have synchronous and interactive video lectures or sessions.

Though the pace of technological advancements is increasingly fast, and thus the bandwidth problem would soon be resolved, it may still be expensive to have a model that provides a similar learning experience to a traditional model. Therefore, the educational institutions would need to strike a balance between the “experience” and the cost depending on their target market segment(s).

Delivering Quality and Differentiation
In order to differentiate itself from others, it would be essential for an institution to focus on the process of delivering value to the end users. Educational institutions, keeping in mind their target market(s) and the available technology, would have to decide on the extent to which they should replicate or rather extend the strengths and benefits of their existing traditional model, if any, to the online proposition.

Aspects such as how to hold online lectures or how to transfer digitalized case material or even how to structure the program to make it more effective, would need to be evaluated.
If the proposition is to sell the program as a commodity, it would be better to conduct it in an asynchronous fashion, focus on delivering standard requirements, and cut down costs rather than add a new “experience” to it. This excludes premium programs with higher fees. These ones would be targeting people who are willing to pay for the technology needed to get a real experience of learning.

Cost Analysis: Initial vs. Marginal
The costs associated with an online proposition are low when compared to the ones of a traditional model which requires much greater infrastructure. The profits would depend upon the economic rent that could be derived from the services offered. This economic rent could only be sustained in the long run if the institution has sufficiently differentiated itself from its competitors.

The online model also has very low marginal costs compared to the initial set-up expenses. Unlike a traditional model which is limited by the size of its buildings (physical infrastructure) or the number of its faculty members, the capacity of an online model can be stretched to a great extent. This would help reduce marginal costs until a further increase in users requires significant investments in technology upgrades.

From the above arguments, there is no doubt that a sustainable online education model is definitely achievable. However, care has to be taken when defining the model that is in appropriate accordance with the targeted customer and service provision. Established universities, no doubt, have an edge over the new virtual universities but at the same time they carry the risk of endangering their established and successful traditional model.

The economics would also significantly vary depending upon the differentiation strategy, if at all, is pursued by the players. Selling a commodity would require a different strategy and would have different implications compared to the proposition when selling “experience”. The availability and costs associated with the technology would vary depending upon the geographical location of the institution and the students.

Five Steps To Successful Home Based Business

Due to the recent national economic down turn and the continued progress made on the Internet technology, the home based business is exploded globally. Now with the Internet smart technology, almost everybody can learn the various benefits of the Internet, how to work at home and make money online. What is wonderful about this opportunity for everyone is that it requires very little money to get started as opposed to traditional business requiring 100′s of thousand to get started. It is also a mobile business. You can operate your business anywhere in the world with access to the Internet. This great wonderful home based business opportunity is available to almost every one regardless of age, sex, education or physical capacity (to a degree).

Like any other business, home based your business also need your dedicated attention. You need to be willing to learn the tricks of the trade. be persistent and willing to commit. Initially you must spend lots of times researching on the Net. Fortunately the Internet now becomes a fountain of knowledge. It can deliver instantly almost any information you request. And information on the subject of home based business or making money online or even how to work at home is no exception.

Like anything else in life, there are scams. There are how to work at home scams, how to make money online scams or home based business opportunity scams. We just need to be aware of the devils. Sometimes it is hard to identify the devils and many of us will fall into their traps, losing money, times, effort and patients Most people will not make a dime online and yet there are others making more in one month than most people making in a whole year. Why is that? There are two main reasons: 1) the kind of choices they make in selecting products to promote and training program to learn 2) the degree of commitment the beginner make.

I believe that in order to make money online and build a successful home based business you must first have passion for what you do. Otherwise you will soon run out of energy and patience. I will have to say that many making money online experts are so good at what they do that they ignore passion because they can sell anything. But I’m concerned about those of you who are not so knowledgeable of how to work at home or work the Internet.

Basically there are 5 Steps every Internet marketer who do not need lots of money to operate a home based business:

1.Set up an online account with a merchant service like PayPal receive payments automatically.
2. Locate a reputable affiliate network like ClickBank and signup to be its affiliate to promote its products. (affiliate marketing).
3.Do research and pick highly marketable products to promote
4.Learn various methods of online traffic generation to bring traffic to the affiliate links.
5.Have basic understanding of SEO, Social Marketing, Community marketing, blog marketing, Cost Per Click ads( CPC) and email marketing.

There are tons of products you can promote as an affiliate and training programs to be purchased on the Net. I have tried many of them and discovered that most of the training programs will not fit those who have limited knowledge of the Internet technology.

Home Based Business Opportunity Seekers – Discover the Opportunities to Take Advantage Of

There are many home based business opportunity seekers who want extra money with fewer amounts of investments. People who want to see some extra money in their pocket take up this idea and there have been many successful people in it. Choosing a suitable business is crucial.A home based business can be done in many fields like arts, entertainment, marketing, information technology, teaching, home science etc. House wives and ladies can take up business related to home science, art, teaching etc. They can indulge in it very easily as they have lot of time to be used. Day care centers and private canteen can earn lot of money if they learn to manage them easily.The information technology field requires lot of people who can work part time. They are given work related to designing and software development. They need creativity and some software skills to survive in this business.Affiliate marketing is a very good home based business option. As many companies require affiliates or distributors to promote their product there are many opportunities in this field. It requires good marketing skills which will attract customers. If you have good literary skills along with marketing skills they can go for newsletter services. This is also a way of promoting products which is required by many organizations.There are many extracurricular skills which can be used to start a home based business. Music, dance, and photography are the fields in which home based business can be done.One can use their managing skills to become a home based event manager. Busy people may require third parties to organize an event for them. You can serve them by arranging the appropriate things required for the event.Consulting can also be done from home as many are in need of ideas from people having good expertise.

Starting Home Based Business – A How To Guide

Hello and welcome! As always thank you for stopping by and taking time to read. I hope that this article will help you answer some of the questions you may have and that it will point you in the right direction. More and more people are becoming aware that there is a new way to earn a living and that starting home based business is a very important step in becoming free.Starting Home Based Business
I know that there is a lot of junk floating around on the internet about starting a home biz, I also know that it can be overwhelming and frustrating because everyone is trying to sell you some kind of ebook, course, or program that promises the world-only to be left in disappointment. I have been there! So I will make this as full of meat-no-bones information that you can use and apply today and get started on the right track! In the time being, please put everything else aside and focus all your attention on this article. Print it if you have to, but please pay close attention and apply what you learn as soon as possible to make sure everything stays recorded in your brain.A 3 Step How To Guide
There are a few things you need to keep in mind to get you started. The very first step is the most critical step you can take. This will save you lots of time, energy, and frustration. Are you ready?1. Team up with successful home based business owners.This is THE most important step you can take when it comes to starting home based business. I speak from experience. You may feel the urge to just go out and do things on your own. You want to go and figure things out. You want to try things out for your self. I have been there! Trust me, if you are NOT part of a community of people who are already successful, you would have to be the most stubborn, bull headed person on the face of the earth (no offense) for not wanting to do so. Being a part of a group of people who are doing what you want to do is the best kind of leverage you can use to skyrocket your success. Carbon copy what people are doing- and you will get the same results.2. Pick the right market/product.Keep in mind that we as humans have a few basic needs to survive in life. We need; food, shelter, money, and love. These are not in any specific order, but they are essentially what we all humans need for survival. We need food to survive. We need shelter to stay warm and safe. We need money to buy food and shelter. And we need love to replicate and keep our human race alive. If you can tap into any of these markets, you CAN and WILL make a great living IF you know how to do it properly. Keep in mind also that these markets are here FOREVER and cannot be affected by the economy. We will always have these basic needs. All you need to do is position yourself just right, and you will become successful!3. Become A Student Of Marketing Until You Succeed.One of the biggest problems I have seen with new people coming in to start a home based business is that they don’t know the first thing about marketing. Trust me on this one, you can have the greatest product or service in the world-but if you don’t know how to market it, YOU will be your only customer! Too many people join some opportunity, try it for a bit, and give up when they don’t see quick results. A lot of it has to do with how the sales person presented their opportunity. They may have over promised and under delivered. Been there done that! You must, absolutely without a doubt HAVE to learn marketing. If you can learn this skill, you can take ANY product and sell it to ANYONE and ANYWHERE in the world!You must stay aware of what is working and what isn’t. As of today, January of 2011 the most powerful mediums to use for marketing are things like; social media, article marketing, and Facebook PPC. Learn how to use these tools and you will succeed. You can find information on how to use each of them on the internet. NOW, please do yourself a favor and don’t try to learn every-single-method and technique! Please! It will paralyze you and keep you from getting started. Pick one strategy, and learn it until you can spell it backwards! Then apply it until you get results.In essence what you must do is follow a system. Find a model that people are using, and is working for them. You are working against yourself when you try and reinvent the wheel. It is unnecessary to do so. Carbon copy what successful marketers are already doing and you-by the law of cause and effect will create the same results. When starting home based business, remember that it can be as easy or as hard as YOU make it based upon the choices you make. Your choices are; copy what’s already working or figure it out for yourself. If you are serious and ready to take the next step and if you have the desire to succeed, click on the link below and Gerardo Flores will be there to assist you every step of the way! Go now!

5 Foundation Principles For New Home Based Business Professionals

Why Become a Home Based Business Professional?Corporate downsizing, layoffs and a shrinking number of jobs available are all common reasons to look for new ways of generating income. With the power behind the internet and the declining job market, it is no wonder hundreds if not thousands are looking to legitimate home based business companies before the end of this year alone.But, is there more than meets the eye?Starting a new venture as a home based business professional is a very exciting idea. The idea of freedom to live the life you want and the freedom to come and go as you please…Sounds good right? Caution, it is not without its challenges.According to recent statistics, the odds of success past 3 years with a home business are greater than a traditional brick and mortar or franchise type business. Awesome, sign me up! Not so fast; it also comes with a lot of hard work and some hard lessons along the way.When starting from scratch, expect to put in many hours just learning your new business and honing the talents necessary to gain the level of success where freedom and flexibility exists along with earning an income.What are 5 Foundation Principles on the Journey to Success?Depending on what book you read or who you talk to there are infinite possibilities of achieving success with a legitimate home based business. That is probably why there are many home business professionals who are living the life of their dreams.You will find a short overview of 5 key ideas below. Each of these principles lends itself to some very in-depth discussion. However, for this discussion, a quick overview will suffice. You are invited to review the discussion presented and spend some time reflecting on the concepts offered. You decide for yourself if they apply in your life.Each Person We Meet is Our Teacher and StudentThink of this idea as you design a new life for yourself. You will come across others who have been there and done that and do not had the same values as you.Consider each relationship with curiosity and confidence. Be curious about what you can uncover about your business and yourself. At the same time, be open to the thought that you are unique and your view is unique to you.You have a fresh view and are able to share your experiences and knowledge. Regardless of the skill level of a mentor, sponsor or potential business partner, you are each the teacher and the student.We are Each a Product of our Own Belief SystemThink of a successful business icon like Donald Trump, Warren Buffet or Robert Kiyosaki; what are some of their core beliefs? Maybe some of their core beliefs sound something like, “if I can dream it, I can be it.” or “success doesn’t just happen. It starts for those who take action.” -D. TrumpHow successful would these guys be if at their core, they made statements like: “money is the route of all evil.” or “only people with money make money” or even something as simple as “I don’t deserve it.” or “No one should have that much.”The idea here is to be very much in tune with your core belief system. What is working for you? If you are not seeing the results you desire, take the time to go within. If you aren’t spending some time within, chances are, you’ll go without!Work is Doing, Being is EffortlessThis concept builds directly on how well you are aligned with your core belief system. When you are tuned into your belief system, it is serving you in your life today; you are in a position of choice.This is when you are able to consciously make choices to be in alignment with your core belief system and your core values. This is the point at which you cease to do work and you are simply being effortlessly.It may be that the number of hours you are being in your business may be many, but you will be in a place that is effortless. Your work ceases to be work. Talk about enjoying life! This is what all home based business professionals strive for.We Either Grow or Die”Life is a daring adventure or it is nothing.” -Hellen KellerSelf growth and entrepreneurship go hand and hand. Much in the way we are each teacher and student, each situation and experience we have is an opportunity to grow and learn.Look for the lesson around every corner and strive to grow at every moment. Two things that are critical to maintaining success as a home based business professional is to participate in a mastermind team and hire a coach.A mastermind team should consist of 4-5 people with different skill sets who come together on a regular basis. It can be based on a commonality of business or personal growth. You can’t go wrong. Imagine the teams of people that Trump or Buffet surround themselves with. They don’t do it all alone!Perhaps most important, all successful business entrepreneurs have a professional coach. Even the most successful business coaches hire a coach. The joy of working with a certified professional coach is they work with you to merge your inner self with the outer self to help you tap into your passion and purpose and help you create the world you want to live in.Now is all There Ever IsYesterday is gone and tomorrow is yet to come. All you have is right here and right now. Live with the expectation that you will achieve all that you desire and act as if it has been here all along. You have the power to manifest all that you dream.

What You Need To Know About An Internet Home Based Business

Internet home based business is one of the fastest growing segments of business these days. Many future business owners love the idea of a home based business compared to the expenses of an online business. Now not everyone is suited for an Internet business, but a lot of people are and the success they are finding is growing. Here is some information that will help you decide about an Internet home based business.Working on the Internet is a lot different than an offline job, but that does not mean it is not possible. The one thing that Internet does give you is endless possibilities which are something that people tend to like a lot. Starting a business is hard work no matter if you do it online or offline so keep this in mind.When it comes to working online and starting a business find something that you love to do. It can be a hobby or something that you have a lot of knowledge about. The main reason you choose something your passionate about you will tend to stick with it and success is much easier.Look over every option and do not discount any business opportunity. Once you starting looking for an online business many options will exist. Take your time and look over every possible opportunity. Many times people rush into an online business and it takes much longer for them to see success.Probably one of the biggest mistakes people make when starting an internet home based business is expecting too much too fast. No matter what you read or what anyone tells you it takes time to build an online business. Having a proven plan in place is a very good idea to help you keeping reaching your online goals.Look and see what is working well for others online. Many people are afraid to ask or seek help from other online people. Do not make this mistake as there are many online business professionals who are more than willing to lend you a hand. The Internet has plenty of free information as well you will be able to access as well.Running an online business is something that many people are trying these days. It is not easy and it will take some work on your part. By starting an Internet home based business you can control your future and the type of money you want to earn as well.Internet home based business is something that is growing at a very fast rate. With more and more jobs being eliminated going online is a logical choice. Starting your own online business will take some work, but the rewards can be worth it.

Home Based Business – A Rising Trend

The number of home based business is rising rapidly. With corporate downsizing and the current economic downturn, most people are exploring the new opportunities coming up putting the concept of telecommuting into use. There are quite a number of advantages that come with this especially for those who are looking for flexibility and a more balanced life.Increased Work TimeIt goes without saying that most people spend close to an hour a day travelling from home to their offices and way back to their homes. You have to grapple with daily heavy traffic issues, harsh weather and enduring hours of small talk with people you meet along the way. This does not only reduce your useful working hours, but it also leaves you fatigued and drained. When it comes to a home business however, all you need to take is a few steps to set up your home office and you will start earning your own money. You also do not have to worry about office close time as you can work for as long as your work permits. This leaves you with more time to respond to client phone calls, emails as well as handle other pressing business concerns.Increased ProductivityAlthough working from a corporate office may offer a wide base of clientele drawn especially from the walk-in clients; home business allows you to take advantage of all the business tools that come your way. Internet marketing is one crucial tool that is being used by both small and large business organizations to increase their sales. Online advertising gives a home-based business organization to enjoy level field in-terms of access to the market. A small company can also effectively launch an online advertising campaign just like large corporate organizations.Reduced OverheadsOperating a home business reduces your recurrent budget as expenses such as rent, service charges and other major office expenses are reduced. For most companies, you will find that rent is a major component of the recurrent expenditure as it has to be paid regardless of whether the company makes money or not. The global market is driving property rates higher to an extent that startups often find it hard to put up businesses in certain localities and neighborhoods. A home based business eliminates this unnecessary anxiety and pressure.Ease of Making DecisionsWhen you rent office space, you unintentionally make your landlord a part of your business. It hence becomes hard for you to make decisions about the business size without involving him. With a home business, the decision to upscale or downscale can be made easily as it does not involve other players. You can add more staff or reduces your staff size to suit the demands of your business.Unmatched FlexibilityIt goes without saying that more than 50% of startups fail in the first year of business. With the current global market trends, it is hard for a new business to survive unless properly managed. In this age of internet marketing and advertising, home based business allows you to try new ventures without incurring huge outlay costs.

Stocks Vs Real Estate – The 4 Ways You Can Multiply Your Money Faster & More Securely in Real Estate

Between stocks and real estate, most investors tend to stick to one type of investment or the other, depending on what they are comfortable with. But the only issues that should matter when considering an investment is what kind of “true” return on investment can I get verses what is my risk to earn that return. Hands down, real estate is far superior to stocks in terms of both high ROI and security.

Before we begin this discussion, it is important that I point out the major mistake made by just about every other writer who has ever written on this subject; in every comparison of stocks to real estate, either the Dow or S&P values are used as the basis of measuring stocks’ performance, however it is rarely mentioned that the Dow is a select sample group of only 30 stocks and that the original companies of the Dow are not the same as the present companies that make up the Dow Jones. Recently General Motors (GM), along with government bailed out Citigroup, were dropped from the Dow because they both fell below $5/share, and they were replaced by Cisco Systems ($20/share) and Travelers ($40/share). The real estate equivalent of this would be to choose a portfolio of properties in the beginning and then removing a poorly-performing shack from the collection and replacing it’s valuation with a stronger performing Trump Tower. Such a practice makes it impossible to truly measure the performance of the stock market, however it is clear that whatever gains can be measured are “slightly” inflated, if not completely overstated.

Now that we understand the shortcomings of prior comparative analyses, we will choose to use the S&P 500, despite the previous discussion, with the understanding that this provides a slight advantage to stocks, for we will show that real estate is still superior, even in a comparison favoring stocks. There is an abundance of circumstantial evidence all around us for this fact. The most significant and lucrative investment most people make is their primary residence. 85 to 90% of the wealthiest individuals in the world built and hold their wealth in real estate.

What specific ways does investing in apartments and rental properties help us multiply our money faster? There are 4 major ways:

Appreciation. This the gross increase in valuation of the asset. When the stock price increases to a higher value or likewise, when a house increases in value, appreciation is the profit from this change in valuation. Of course, a decrease in value is also possible in both types of assets, and the result of this is negative appreciation. This is the aspect that is most often focused on by previous comparisons. However, despite being the most important income with investing in stocks, appreciation is the least important of the ways of making money in real estate. Individuals who focus on appreciation in real estate are not investors, but speculators, many of whom were the hardest hit because of the burst of the housing bubble.
Depreciation. This refers to an estimation of the “loss” of valuation of investment real estate as a result of deterioration or obsolescence. The wear and tear is not tabulated from a list of specific damages, but rather takes the cost of the asset and spreads this cost over the legally estimated useful “lifetime” of the asset, 27.5 years in the case of residential property. When running your real estate investing as a business, this tax deduction can be huge, along with tax-deductable expenses, in offsetting income and legally decreasing your tax liability. There is no equivalent to this in offsetting capital gains from stock income.
Amortization. This refers to the building of equity in a property as the mortgage on it is paid off over time. This is another way of expressing the advantage of leverage in investing in real estate-the ability to buy an asset with only 3 to 25% of the purchase price and pay the rest off over time, preferably using the asset’s own income, is unheard of in the world of stocks.
Cash Flow. This has to be the sweetest money from your real estate investment; after all expenses, this is what is left over to go straight into your hip pocket. This is analogous to stock dividends, however the company in which you hold stock has the ultimate decision as to whether they will offer you a dividend, and they can change this decision without consulting minor stockholders. A properly structured real estate investment will provide positive cash flow FOREVER. And, again, if you run your investment as a business, this passive income will not be subject to self-employment tax.
About the only clear advantage that stocks have demonstrated over real estate is the relatively greater liquidity that is provided by having a ready market of buyers. However, the knowledgeable and experienced real estate investor understands this, and the investor builds a list of buyers and recruits real estate agents and brokers onto his or her team for this very reason. Even in a tough market, as exists today, investors are able to move property and maintain liquidity.
In addition, the clear and widely acknowledged advantage that real estate investments have over stocks-the ability to leverage your money and credit to buy the asset and the tax advantages and other streams of income benefiting owners of rental properties-are often greatly underestimated and understated. The accumulated tax savings and other hidden income streams when added up is a more than significant amount of money; all the annual tax write-offs translates into more money to leverage and reinvest into more income-producing real estate, and this cycle of reinvesting is the process that will multiply your investment money at a rate that the best stock can never hope to keep up with.

S Koonopakarn is the CEO and Cofounder of Saintly Assistance Financing & Equities Group, LLC, an Atlanta-based investing and consulting company that specializes in real estate and retirement investments. He has the investment plan that will get you back on track to an early retirement without depending on Social Security and without sacrificing lifestyle.

High Yield Investing

What does High Yield Really Mean?

High yield investing has taken on a totally new dimension since the introduction of the internet and the basic personal computer. In the United States, a high yield account is considered to be anything over 5% monthly. Of curse as the old adage goes, the higher the yield the larger the risk. This is true. You can not expect to earn more than an average percentage rate with less risk. It just doesn’t make sense.

When discussing high yield interest accounts, are we talking about a savings account that produces a 5.4% annual percentage return? Well, yes. And no. It depends on who you are and what you consider to be possibilities and realistic.

By now most of us have heard about investment programs that claim to be able to produce ridiculously high returns. Traditional investors cringes when they hear terms like 25% per month for one year plus the return of principle, and they nearly quiver when they hear claims of 300% in eight weeks. Certainly these high yield investment programs must be scams. How can it be possible to produce such returns in such a short amount of time? And why isn’t everyone out there doing this if it can really happen? If these high yield investments hold any water then in just five short years we could wipe out poverty and homelessness and no child would ever go to bed hungry or sick again!

Are High Yield Investments Scams?

Believe it or not this question is not a simple yes or no response. It can’t be. The short and safe answer would be yes, they are scams. However, it is important to understand what they are and why they have not all been shut down by the government if they are nothing more than a way to steal your money.

High yield investment programs are not a place to try to earn an income. They are extremely volatile and unpredictable. People can and do make money from them, and sometimes it’s a significant amount of money. But don’t get excited and start rushing out to re-mortgage your house just yet.

Read every single disclaimer on a high yield investment program website and they will all say the exact same thing. High yield investing comes with the risk of losing money. Never invest more than you can stand to lose. Why? Because every high yield investment program will eventually crumble and those with money invested are going to lose.

High yield investment programs are based on principles similar to gambling. While most of do not, there are people in the world who make their living traveling around to casinos and gambling. Is it a scam? No. In fact most of us at least respect the fact that the individual is competent enough at playing casino games that they can earn a living at it regardless of how we feel about gambling ourselves. The same applies to earning a living from high yield investment programs. Most investors do not even consider them real investments and scoff at those who attempt to earn a living through high yield investing.

Most people who are able to fund their lifestyle and earn a living through high yield investment programs started in using one of two methods. They either jumped in with both feet at the first program that sounded good to them and lost everything they invested or they researched high yield investment programs until their fingers went numb before ever investing a dime. Either way, both parties came to the conclusion that to come out ahead in high yield investments programs they would have to do ample research and completely understand the system and principles before they were going to succeed.

Earning a living through high yield investment programs takes a system that is easy to implement and follow to prevent early closing and hefty losses. This system takes a lot of due diligence and of course, some very specialized knowledge about forex trading and even gambling.

Reading the website’s method of investment can tell the average high yield investor a lot about the security, or lack thereof, for any particular program. Most will admit to trading in forex, which any average investor can do with a little knowledge and research. Some will tell you that they are trading in commodities as well and some admit that they are also gambling with the investors’ money, literally. Any website that says they are gambling using fool proof methods of winning should absolutely be avoided at all costs. There is no fool proof method of gambling.

High yield investing is probably something to be avoided altogether, although that is an individual choice only an individual investor can make. However, if you choose to get involved with a high yield investment program and you loose your money, that was your choice as well. Just like it is possible to loose money in the stock market, you are likely to loose money in high yield investments. An investor that looses money in the stock market doesn’t typically file a lawsuit against the broker, so why are people so quick to file lawsuits and complaints when they loose money in high yield investment programs?

The answer is unpleasant but for the most part it is true. Greed. We can accept that there are poor investments out there and should we loose three or four thousand dollars in a bad investment we accept it as part of the potential outcome of investing. Yet because we got excited and our minds started spending the money we were hoping to see through a high yield investment now suddenly the people who run these programs are thieves. High yield investments are investments even if they do border on scams and you run the risk of losing your money. Remember the basic principle of any investment? The higher the return the more likely you are to lose your money.

High yield investments are incredibly risky and some of them are actually scams. Scam artists are everywhere and if there are people in the world who are willing to fork over thousands of dollars in the unrealistic hope that they can turn it into ten of thousands of dollars in a relatively short period of time then there will be people who are willing to steal that money from potential investors.

People are willing to donate their money to any valuable cause, so there are people who are willing to set up phony charities to steal donations from giving people. That certainly doesn’t make every charity a scam and people aren’t going to stop donating to charities of their choice. Just as there are individuals who will take advantage of people’s kindness and desire to give to charities, there are individuals who are interested in scamming money from people who are trying to improve their financial portfolio through high yield investment programs. That doesn’t mean every single high yield investment program is a scam.

The one thing all high yield investment programs do have in common is that sooner or later they will all fold, even those that start out being profitable. Just because a high yield investment program starts off producing the returns that it proposed in the beginning doesn’t mean that it will continue to do so over a long period of time. This is how the high yield investor gets dramatically burned. One or two programs that delivers for a period of time doesn’t mean it’s time to quit the job and devote all the available resources to high yield investing. It means that one or two programs are doing well. They will not do well forever and sooner or later they will crumble. That is the nature of high yield investing.

High Yield versus Conservative Investing

Which investment strategy is right for you? Only an individual investor can answer that question for their own interests. Some people can tolerate the significant risk factors while others prefer the stability of the more conservative and conventional methods of investing. Some people are more willing to take a gamble than others, and by all means high yield investing is a form of gambling.

There are dramatically fewer scams in conventional investing. Some people will always believe that high yield investing is a scam and there is nothing that will convince them otherwise. Just because some people are able to be successful doesn’t mean that a program is not a scam. And just because something is a scam doesn’t mean that some money can’t be made anyway. Does it make it right or real or worthwhile? Again this is something that each individual investor needs to determine for themselves.

For solid investment advice and a clearer path to investment success, independent advice and research is the best way to go. For all kinds of independent investment advice, stop by onlinetradingideas for comprehensive investment strategies, advice, and independent research. This site is particularly useful for making the most from conventional trading ideas and profiting from forex trades without having to enter the realm of high yield investment programs.

How To Succeed At Online Product Creation The Easy Way

Product creation could be a frightening subject for a lot of Internet marketers to face. Some folks who get in the game with the intention of making a full time income are completely ignorant as to how an online business operates. One of the most profitable ways to create online cash is by creating a product that others are happy to pay for.

Product creation is legitimate method of generating money through internet marketing but many entrepreneurs get it wrong. They start by imitating their Internet marketing gurus by creating information products on Internet marketing in hopes of getting rich the way their heroes did. The problem is that they usually don’t know what they are doing and enter a highly competitive niche with very little marketing experience or connections.

Here are a few tips for effective product creation that may help you get on the right track:
Start by finding a profitable niche with low to moderate competition. If you conduct some rudimentary market research and keyword research, you’ll find many opportunities in areas that will surprise you. Amazon and eBay are two great places to brainstorm for product ideas.

Developing Your Product does not have to be a difficult project. You can find experts in the right field for your niche and pay them to write the material while an artist designs the packaging and website or blog. You can outsource the entire product creation part of the project after you conduct the research and testing to ensure profitability.

Sales and marketing strategies should be created while developing the product and learning about the market. Some experienced marketers use pay per click to drive traffic to their offer page; some folks outsource the entire marketing campaign to affiliates through ClickBank or other affiliate programs.

Product creation does not need to be hard, particularly when the merchandise is electronic. E-books, videos, audio and multi-media products sell very well. They are distributed immediately to customers electronically. Once you have a good feel for a niche market, try to service your customers with associated products and upgrades. If you want to earn money online through product creation, you must understand supply and demand. The majority of new online marketers fail miserably because they go after highly competitive markets or forget to research their chosen niche properly. You have to create your products according to the needs, wants and desires of the prospective customers.