The Most Important Affiliate Marketing Priority…….

Every affiliate is looking to create more traffic and achieve a higher sales volume.  If you are new to the game, the best affiliate marketing tips are really just common sense. By researching and promoting your niche, demand will pay off.

Affiliate marketing can be profitable however it requires hard work and staying focused on your plan.  There are more and more people using the internet and the following tip will assist you to stay in the game.

List Building

It simply is the most important need an affiliate marketer has to focus on.  One must always follow up with your prospects and promote to build your list.  Each visitor to your site is valuable,   you must make  sure you have an opt-in box for them to subscribe to in order to receive  your free product to continue building your list.. This is done so  you can continue to keep in touch with them and offer them useful information to build  relationships with them. Be sure to broadcast positive product reviews and occasionally after you have grown your list you can JV Partner with other affiliate marketers in the same niche to enhance further growth.  Do not go for quick bucks or promote  everything the whole world is promoting. Be selective and promote only the best!

One  powerful technique that I personally use is JV Partnering. JV Partnering is doing cross promotions by way of Ad Swaps and are a huge list builder. If you are successful marketer with a subscriber list of your own visit http://www.jvlistbuilding.com and join an Elite Membership of high quality marketers to promote JV Ad Swaps and grow massive lists together.

If you interested in a copy of my FREE Ebook titled “Affiliate Marketing Strategies visit http://www.activeaffiliatemarketing.com. Make sure to bookmark my blog so you can stop by frequently to get the latest tips and strategies to build successful marketing careers together by promoting one another.

To Our Success,

Charles

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Using Trading Volume as an Indicator…..

One of the tools an investor uses today is watching the trading volume of a stock. Although you cannot use trading volume of one stock by comparing it to that of another, you can learn a great deal from it.

If you notice that a stock usually trades 150,000 shares per day and starts to trade 400,000 shares there is probably good reason to take notice to the change. It could be the reverse, the stock trades a significantly lower volume. There could be one or many reasons that this may happen and it could be positive or negative.

Reasons for this may be the company has new developments, increased earnings, increased dividend payouts, a merger or insider trading to name a few. Decreased volume may be a result of dividend cut, poor earnings report, financial problems.

Using volume as an indicator has its place and can be used when evaluating a stock. Remember an increase or decrease in trading volume usually represents something that you should take notice to.

Warren Buffett……A fitting Quote…….

The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future — will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands…………..quote by Warren Buffett.

Book Value and Market Value Explained……

Occasionally I have the question asked, “what is the difference between book and market value”? I will briefly explain.

-Book Value- The book value is the amount that one has paid for a particular asset. As long as you own this asset the book value always remains the same.

-Market value- The market value of an asset is the current market price the asset could be sold.

An example of the difference is as follows. If you bought 100 shares of a stock last year at $10.00 per share the book value would be $1000.00. If the stock price today was $15.00 per share the market value would be $1500.00.

The calculation of book value when making multiple purchases would be the following. Lets say you bought a position in a stock last year. You bought 100 shares and the price was $10.00 per share. The book value would be $1000.00. You are very pleased with holding this particular stock because it pays a healthy dividend, so you decided you would add to your position. The current stock price is $15.00 and you purchased another 100 shares which cost you $1500.00. To determine what the new book value would be, add the total amounts invested from both trades. Your new book value of the 200 shares is $2500.00.

The book value is very important to know in the case of a sale. This amount will assist you in calculating your capital gain or loss. I will explain this calculation in a later blog post.

The Investment Loan and You…….


Did you ever consider an investment loan as an option for long term investing? This type of strategy is one of the overlooked wonders of giving your portfolio that extra boost. I will give an example of how it can work for you.

Lets say for rounded off figures you have an extra $300 per month to put toward your investments. You can either put this money into your investment portfolio or you can use it to service an investment loan. This amount of money should generally cover the interest on a $50,000.00 loan and the amount of interest paid is 100% tax deductible. By carrying an investment loan you have opted to invest the full value of the $50,000.00 sooner than doing it gradually. If you were to invest only your $300.00 monthly it would take you over 13 years to have accumulated the same initial investment. The compounding possibility of your initial investment has been significantly increased.

By taking on an investment loan you can accelerate your portfolio gains many fold rather than doing this over a very long period of time. Investment loams are not for everyone but should be considered as an alternative.

Re-Investment of Dividends into the RSP….

Most investors today wait until tax return time to come up with a one lump sum RSP contribution to offset the tax payable from the previous calendar year. One of my strategies is as follows.

If you have dividend paying stocks in your non-registered portfolio, transfer the received dividends into your RSP account. By doing so these RSP contributions are tax deductible and also will make the burden of coming up with funds at tax time less stressful. Just think, you may have created a tax refund by doing so.

Smart investing is critical to deferring taxes. This strategy is one I utilize every time I receive a dividend payment.

Knowing the Difference between Dividends and Interest…….

It is very important that the self directed investor understands the difference between dividends and interest.

-Dividends- Dividends are generally paid to shareholders of a publicly traded company.

-Interest- Earning interest would be from loaning your money. If you put your money in the bank or buy bonds you are actually loaning your money.

The single most important reason for knowing the difference is tax. Dividends are taxed at a different rate than interest earned. It is suggested to seek professional accounting advice on how these tax rates affect you.

Dividend Re-Investment Plans are Beneficial……..

The dividend re-investment plan is another useful tool that can generate a higher number of share holdings and incrementally increase your dividend payments. I will explain the basics of the dividend re-investment plan and its benefits.

Lets say you own 1000 shares of XYZ company and the shares presently trade at $10.00 per share. The XYZ stock pays a dividend of $0.10 per share on the 15th day every month and for easy explanation purposes the stock trades at exactly $10.00 per share for the next 4 months. You have chosen to use the dividend re-investment plan.

-Month One- You receive a dividend payout of $100.00 and it is re-invested into shares at $10.00 each. Now you hold 1010 shares.

-Month Two- You receive a dividend payout of $101.00 and it is re-invested into shares at $10.00 each. Now you hold 1020 shares and also keep the extra $1.00 in cash.

-Month Three- You receive a dividend payout of $102.00 and it is re-invested into shares at $10.00 each. Now you hold 1030 shares and also keep the extra $2.00 in cash.

-Month Four- You receive a dividend payout of $103.00 and it is re-invested into shares at $10.00 each. Now you hold 1040 shares and also keep the extra $3.00 in cash.

From this, it is clear that you are increasing your holdings of shares and dividends on a monthly basis.

I prefer to use this strategy in my RSP account and save taxes by doing so. One of the benefits by using this strategy is saving brokerage fees when purchasing the shares every month. Re-investment of dividend plans are exempt from brokerage fees. You also increase your position in the XYZ company monthly and have the possibility of the stock value increasing.     

It is clear to see how dividend re-investment plans can work for you.

A Cricket tells you the temperature very easily…….

Just listen to a cricket and count the number of chirps for 14 seconds. Add 40 and that will give you the current temperature. Go figure!!!!!!