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Independent Contractors and the New “Totality-of-the-Circumstances” Approach

The U.S. Department of Labor (DOL) recently introduced a final rule, effective March 11, 2024, which redefines the classification criteria for distinguishing between independent contractors and employees under the Fair Labor Standard Act’s (FLSA) Classification provision.

According to the FLSA, employees are entitled to various benefits, including minimum wage, overtime pay, and other perks. On the other hand, independent contractors enjoy more flexibility in setting their schedules and can work for multiple companies at once.

The new rule replaces the 2021 Independent Contractor Rule and resembles the agency’s proposed rule from October 2022. It adopts a six-factor framework called the "totality-of-the-circumstances" approach to evaluate worker-employer relationships.

The factors taken into consideration are:

  1. Use of Skill/Initiative: If the worker utilizes specialized skills similar to those required for managing a business, rather than merely performing a job, it supports independent contractor classification.

  2. Criticality: If the tasks performed are not crucial to the employer’s business operations, the worker may be classified as an independent contractor.

  3. Performance: If the employer controls the worker’s schedule, supervises work directly, or restricts the worker’s ability to work elsewhere, the worker may be considered an employee.

  4. Permanence: This factor considers if the worker is hired on an as-needed basis, operates independently, and works for multiple companies, supporting the classification as an independent contractor.

  5. Investments: It examines whether the worker or employer has made significant investments in equipment or resources resembling a business investment, which may indicate independent contractor status.

  6. Profit/Loss: This factor assesses whether the worker can earn or lose money based on their ability to manage their work independently. Factors such as negotiating pay rates, accepting or declining work, managing work timing, and determining the order of work performed favor independent contractor status.

The term "independent contractor" refers to workers who are not economically dependent on the employer for work and operate their own businesses. They may also be referred to as freelancers, gig workers, or self-employed individuals.

What to Prepare for Tax Season

With the 2024 tax season already rolling around, now is a good time to start preparing your documents. By January 31st, companies are typically required to send out tax statements. If you don’t receive any of the applicable documents soon, it would be wise to reach out to your employer or financial institution and request them. April will be here before you know it!

  • Forms W-2 

    • from employers

  • Drivers License 

    • just a copy for e-filing

  • Forms 1099, 1099-K, 1099-MISC, 1099-INT 

    • from brokerages, banks, dividends, unemployment compensation, retirement distributions, and more

  • Drivers License 

    • a copy for E-Filing

  • Forms K-1 

    • from LLCs, S-Corporations, and partnership ownership investments

  • Form 1095-A - Health Insurance Marketplace Statement.

  • Form 1098 - Mortgage Interest Statement

  • Other income documents and records of virtual currency transactions

  • Charitable donation records

  • Record of any federal/state estimated payments made

  • Business Owners: 

    • Profit & Loss statements, Payroll Summary reports, and a Reconciled Year-End Balance Sheet

FinanceTristan Searletaxes
10 Essential LinkedIn Posts for Finance Leaders

(This article is featured from GrowCFO.net)

LinkedIn clocks up around one billion user interactions per month and you could spend a lifetime trying to identify the most helpful content for your role.  That’s why GrowCFO has decided to do this for you – after all, time is by far your most valuable resource…!

Here are 10 essential LinkedIn posts to help finance leaders and your teams:

1. The #1 Metric that Determines your Success by Richard Medcalf
Determine how you can accelerate your personal impact by escaping the hamster wheel of financial operations to spend more time driving strategy and change within your organization.

2. Excel Verses Power BI by Philip Handke
Compare how to leverage the power of Microsoft’s industry-leading tools to automate your monthly close process, deliver powerful commercial insights and extend your influence.

3. The Average Size of a Finance Team By Dan Wells
Understand the size, characteristics and dynamics of a successful finance team, as well as the key skill sets and competencies necessary for success.

4. Dynamic Budgeting by Patrick Dunne
Discover how dynamic budgeting can help you drive growth and profitability in your organization, and make sure that decisions are supported by current financial information.

5. Make More Board Meeting Impact by GrowCFO
Learn how to effectively communicate and present at board meetings, build credibility with key stakeholders, navigate challenging conversations, and become a trusted advisor.

6. My Journey to CFO by Matt Hann and Andrew Waters
Explore the challenges of securing and transitioning into a CFO role for the first time, gain insights into the traits and skills required for success, and learn tips on how to maximize your impact.

7. The Best 50 Finance Cheat Sheets by Nick Boulcher
Save yourself huge amounts of time by quickly accessing practical guides, tips and tricks to effectively deliver a wide range of financial operations.

8. Leveraging Data and Analytics by Prashanth Southekal
Get ahead of your competition by unlocking the potential of data-driven insights to create better decisions, drive growth and create value for stakeholders.

9. The Biggest AI in Finance Guide by Adam Shilton
Uncover the secrets of data-driven automation within spreadsheets, presentations and other applications by using DataChat, ChatGPT and other powerful AI tools.

10. Performance = Potential – Interference By Dan Wells
Learn to identify roadblocks and other factors that can prevent you from achieving peak performance, and gain insights into how to overcome them for lasting success.

We hope that you find this helpful and a massive thank you to the following people for creating them: Patrick Dunne, Richard Medcalf, Philip Handke, Nick Boulcher, Adam Shilton, Prashanth Southekal and Andrew Walters. 

Lon Searle
Understanding Mechanic's Liens: Why They Matter

Mechanic’s liens can be a tricky subject to navigate. As an accountant or bookkeeper, you should understand what a mechanic’s lien is and how it can impact your client’s financial situation. 

What Are Mechanic’s Liens?

Simply put, a mechanic’s lien is a legal claim made against a property by someone who has provided labor/materials to improve it. This usually applies to construction projects, although it may also apply to other work, such as home renovations. 

Essentially, if someone has worked on a property and has not been paid for their services, they can place a lien on that property to ensure that they receive payment. 

Risks to Clients

From an accounting perspective, mechanic’s liens can pose a serious risk to your client’s financial situation. If a lien is placed on their property, it can (and likely will) impact their ability to sell or refinance the property until the lien is paid off. This can create a delay in their plans, or worse, lead to a loss in profit if they are unable to sell the property for the full value. 

Additionally, if your client indeed owes money to the contractor/supplier and fails to pay, they may also face legal action, furthering costs and delays to their project. As their accountant, you must ensure that they are aware of the risks associated with mechanic’s liens and have processes in place to protect themselves. 

Minimizing Concerns 

To minimize the risk of mechanic’s liens, verify that your client has a solid contract in place with any contractors or suppliers they work with. This contract should outline the terms of the agreement, including but not limited to:

  • payment schedules 

  • deadlines 

  • any potential consequences for failing to meet these terms

It’s also important to ensure that your client is keeping accurate financial records and tracking expenses related to the project. This helps identify potential issues early on and allows for a swift resolution. 

As a financial professional, it’s your responsibility to help your clients stay on top of their financial situations and understand how to meet their obligations. By ensuring that they have accurate financial records, solid contracts, and steady income, you can help protect your clients from the potential financial consequences of a mechanic’s lien.

Tristan Searle
Solo Entrepreneurs Should Use These Resources to Enhance Their Business

This article was guest-written by Christopher Haymon of AdultingDigest.com.

Starting a business on your own takes a lot of time, courage, and know-how. Sometimes it can feel like incredibly lonely work. Taking on so many tasks and responsibilities can lead to headaches, so it’s important to find out what kind of tech and services you can utilize to boost your business and take some of the weight off your shoulders. 

Consider forming an LLC. 

One simple way to make sure your business is in good hands is to form an LLC or limited liability company. Doing so will provide tax benefits, ensure less paperwork, and will help you keep your personal and business finances separate in order to avoid issues down the road. There are various steps to complete in the process, so you’ll want to read up on the rules in your state before starting. Complete LLC paperwork and apply for the necessary permits in a timely fashion to ensure that you’re able to secure the company name you want.  

Hire a freelancer. 

Once your business has been properly formed, you can focus on distributing some of the workload. Solo entrepreneurs are often on a tight budget, which makes freelance employees a perfect solution for tasks like writing blog posts, sending business-related emails, keeping up with social media, or designing a fantastic web page that’s easy for your customers and clients to navigate. Many freelancers charge by the hour, so make sure you both have a clear idea of what you need before you engage their services.  

Utilize software.

Whether you decide to hire outside help or not, it’s important to look for ways to make your job easier. These days, there are plenty of platforms and software specifically designed to assist small businesses, and some tools can be found for free. Google Suite is full of helpful programs that will allow you to stay organized and stay connected with your customers, and there are several inexpensive payment system options you can use both online and in-person. 

If you do decide to hire a freelancer, using a mobile time-tracking app can make things a little easier when it comes time to issue payments. These apps allow workers to easily track their time on the go and digitally sign off on their timesheets — which is especially helpful when you work with a remote team of freelancers. Additionally, you can track projects using the app and send any necessary notifications to your team. 

Turn to social media. 

While the latest software is crucial for your business, social media can also help you boost visibility and attract new customers. Your company should have a solid online presence, meaning you’ll need accounts on several major social media sites. Keeping up with these accounts is essential, as failing to post engaging content for even one day can disrupt the algorithm and make you all but invisible to your target audience. Get familiar with the rules of social media for business and take advantage of automated ads that will help you lengthen your reach and get more sales. Use clear photos in your posts and videos, as well; make sure they’re captioned and accessible to everyone.

Utilizing all the resources at hand can help you reach your goals in the coming year, so create a detailed plan that will aid you on your journey. Reach out to freelancers who can assist you and free up some of your time so that you can focus on running your business the way you want.

Agile CFO can bring fresh and efficient financial solutions to your business. Call (801) 835-8640 to set up a consultation. 

Photo via Pexels

AB5: What It Is and How It May Affect You
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What is AB5?

New bills and laws are passed frequently that affect the inner workings of businesses, and small businesses in particular. One such law is California’s AB5 (California Assembly Bill 5) and is commonly referred to as the “gig worker bill.” Because the law is only in place in place in California, you may be thinking this article doesn’t apply to you, but think again: other states often follow the example of adopting refined business statutes, and the rules of AB5 could soon be finding its way into your state legislature. 

Of course, you may be wondering what AB5 is and what it entails. This law—which came into effect in California as of January 2020—makes it a legal requirement to now classify independent contractors as employees. There are a few exceptions, which will be explained, but the majority of people previously classified as independent contractors for a company now need to be considered official employees of the company. 

AB5 is important to understand, as it can create financial and personal liability for those not aware or those that ignore the law. 

Why is AB5 necessary? 

There are a few reasons AB5 was passed, a major one being tax efficiency. Previously, independent contractors were responsible for keeping track of their income and how much to pay in taxes instead of getting an employee W2 that makes filing taxes much simpler. The state sought to make the lives and business practices of independent contractors easier by passing AB5 and allowing them to receive a W2 from the business they provide services for.

Another important reason AB5 was passed is because independent contractors were missing out on the same benefits as official employees, including health insurance, paid sick or family leave, and more. Additionally, the rising prominence of the “gig economy” (work done in the form of task fulfillment) has prompted legislators to seek extra protection for gig workers. This has particularly impacted popular apps such as Uber and Lyft, who were previously able to dodge paying the usual costs of official employees. 

What are the AB5 exemptions?

AB5 includes a useful way to determine what independent contractors do not need to be classified as employees. It is known as the ABC test. 

The new law requires you to classify independent contractors as employees unlessall three of the following criteria are met, in which case they may remain considered independent contractors: 

A. The individual is free from the control and direction of the company in performing work, both practically and in the contractual agreement between the parties.

B. The individual performs work outside of the usual course of the company’s business.

C. The individual is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the company.

Many agree that the third stipulation (C) is the most relevant and important to recognize, although each stipulation needs to be addressed. An easy way to think of rule C is: does the worker have their own business, and do they offer services to any other businesses besides yours? If so, they are almost definitely an independent contractor. 

Hopefully, this article has helped simplify AB5 as a law, and you will be able to apply knowledge of who is exempt to better your business.

The 3 Strategic Components of  Effective Capital Allocation 

Agile CFO     |    www.agile-cfo.com 

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Correct capital planning and sourcing can improve returns. Your sense of capital allocation will allow you to establish a clear company goal (investing or otherwise) in mind. Remembering a few simple things about effective capital allocation will allow you to overcome many plateaus in business growth…

The importance of having a well-defined investment strategy cannot be understated. If there are any problems with the company’s current investing practices, the problem should be rooted out at the source to prevent further complications. If the strategy does not incorporate most of the following elements for highly effective capital allocation, then a new strategy should be adopted: 

  1. A priority on investments. Having a defined marker for value. Define what exactly your company values and act accordingly. 

  2. A clear focus on where the company wants to compete. 

  3. An ownership mindset. This mindset keeps the company in mind. 

Book-Keeping Tips and Resources for Small Businesses

Written by Jim McKinley from moneywithjim.org

Book-Keeping

As the owner of a small business, keeping track of your company’s earnings, inventory, and expenditures is crucial—even when you’re already busy juggling everything from marketing to the day-to-day operations of running your business. To learn all about the importance of bookkeeping in small businesses—and for some useful tips on getting started—read on! 

Bookkeeping Basics for Small Businesses

Whether you’re about to launch a small business for the first time or you’re ready to take your ventures to the next level, proper bookkeeping and accounting functions will help your business grow, thrive, and achieve financial success. And when you’re ready to grow your small business and maximize cash flow, the financial consultants at Agile CFO can help.

●     Learn about the importance of accounting as you get your small business up and running. 

●     Check out Dave Ramsey’s 10 tips to small-business bookkeeping and accounting. 

●     Understand the key differences between accounting and bookkeeping. Then, determine whether you need to hire a bookkeeper or accountant (or both) to help you with your small business finances. 

Resources and Tools for DIY Bookkeeping

Can’t pay for professional bookkeeping services at this time? These great resources will help you record and manage your own books: 

●     Enroll in a free online course on bookkeeping. Several courses are available through Accounting Coach, Bean Counter, and Learn.org. 

●     Explore the best free and paid accounting software for small businesses, including FreshBooks, QuickBooks, and Xero. 

●     Have some money to spare? Hire a freelance bookkeeper that fits your business needs and budget. 

Additional Resources

These additional resources can help new and growing businesses to stay afloat amid COVID-19.

●     ZenBusiness Resource Center for COVID 19

●     Steps Small Businesses Can Take to Avoid Coronavirus Extinction

●     Get Growing: Free Online Marketing Tools for Small Business

Proper bookkeeping functions are key when launching and running a new business, and these resources will help you understand the differences between accounting and bookkeeping and find the help you need to get your financial transactions in order. Affordable accounting tools are also available if you’re on a budget, so don’t shy away from these if you can’t hire a bookkeeper or accountant until further down the road. 

(Image via Unsplash)

Lon Searle
The Challenge of Financial Planning When You Have a Disability

Written by Ed Carter

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Living with a disability is expensive. You have to pay for ongoing medical care and medical devices, pay to retrofit your home for accessibility, and pay for caregiving to keep you safe, healthy, and independent. These expenses tend to increase with age as people with disabilities grow older and their physical limitations more severe.

On top of these high costs, many people with disabilities need to keep their income low enough to qualify for the benefits programs they need to survive. This adds major challenges to financial planning for people with disabilities. The simple advice to earn more, save more, and spend less is complicated when a healthy bank account threatens your financial security.

Considering these challenges, how can people with disabilities ensure a secure financial future for themselves and their families?

Know Your Benefits Cliffs

Many people with disabilities rely on Medicaid and Social Security Disability Insurance or Supplemental Security Income (SSDI/SSI) benefits to stay afloat financially. These programs are important safety nets, especially when it comes to keeping healthcare costs affordable. However, they don’t provide enough to live on, let alone save on.

SSDI recipients who earn more than $1,220 monthly risk losing their benefits, as do SSI and Medicaid recipients with more than $2,000 in countable assets or income over $750 a month. The Social Security Administration offers work incentive programs that let people with disabilities test their ability to work with a trial period; however, if the trial is successful, benefits are lost. Before committing to full-time work, it’s important to make sure your earnings potential is greater than what you can earn via benefits programs and part-time or occasional work.

Take Advantage of Tax-Free Savings

Adults who became disabled before the age of 26 can save money tax-free and protect their benefits eligibility with ABLE accounts. Individuals can save up to $15,000 annually in a tax-advantaged ABLE account, more if they work and earn and income. Since money in an ABLE account isn’t considered for benefits eligibility, qualified individuals can save and spend money without losing benefits. However, individuals do lose SSI eligibility if their ABLE account balance reaches $100,000.

Plan for Long-Term Care

If you have a physical disability, your condition may worsen with age, causing you to need a higher level of care. Whether you move into an assisted living facility or hire in-home caregiving, the cost of long-term care services is high.

Medicaid will pay for long-term care services for covered individuals. However, strict care criteria mean people covered by Medicaid have fewer choices of where to receive care. Instead, the state determines whether you’re eligible for nursing home care, assisted living, or home- and community-based services.

Individuals with earnings that exceed Medicaid eligibility limits can look into other options such as long-term care insurance. Unfortunately, medical underwriting makes some people with disabilities ineligible for a traditional long-term care policy. In that case, life insurance may be a suitable option. You can purchase a whole life insurance policy with a long-term care rider or a policy with “living benefits” that can be tapped into while alive. A life insurance policy also provides a financial cushion to family after death, giving family members quick access to funds for funeral expenses, medical bills, and outstanding debts. The range of policy types and coverage levels scares some consumers away from life insurance, but purchasing a policy doesn’t need to be complicated. If you’re a homeowner, another option is to sell your home to help pay for long-term care. Before planning to fund long-term care by selling your home, make sure you have an idea of its approximate value.

This is just a glimpse of all the factors people with disabilities have to consider as they plan for their financial futures. If you’re worried about how your disability will affect your ability to save for the future, talk to a financial advisor. With the right guidance, you can develop a financial plan that works for today and secures your tomorrow.

(Image via Pexels)

Tristan Searlepersonal finance
7 Ways to Drive Website Traffic
Your business may depend on your website. Are you getting enough visits?

Your business may depend on your website. Are you getting enough visits?

The success of any online business (and to a degree, storefront businesses) often comes down to the success of its website. Your business’s website serves as the core element of public outreach. It is how people find out about you, learn about you, and eventually become convinced to buy from you. If you hear of a company and want to find out what it does, or are looking for any company that can fulfill a need, the Internet is going to be the first place you turn to, followed by social media accounts. But even a company’s social media accounts have the ultimate purpose of driving traffic website. Because it's this simple: the more traffic you get, the more successful you will be.

Use any of these seven tried-and-true methods to start increasing website traffic immediately:

1. Employ free search tools.

  • Take advantage of Google and other Internet search engines by optimizing your website to reflect keyword search results.

  • Adding new content to the website on a regular basis makes the website appear more prevalently on search engines, and so does being active on Google +.

  • Use social media search bars (on Facebook, Twitter, Instagram in particular, as hashtags make searching easier) to promote your page and website--the more you post, the greater chance of attracting attention you have.

2. Use other people’s traffic to increase your own.

  • One of the best targeted traffic-increasing methods is by guest writing on another business blog that complements, but doesn’t compete with, your own business blog. Be sure to incorporate a link to your website!

3. Pay to receive traffic.

  • Advertise your website using Google AdSense.

  • Pay for an a post promotion or ad on social media. Spending just a few dollars on a single campaign could generate over a thousand views.

4. Network on social media.

  • Simply participate in discussions and engage with users of social media to generate traffic.

  • Twitter, Facebook, Google+, and LinkedIn have been proven to be particularly effective at generating traffic for you.

  • Discover what people are searching for, and supply them with related, unique content.

  • Reach out to other website owners for mutually beneficial promotional agreements.

5. Network face-to-face.  

  • Depending on the nature of your business and your industry, some professionals may choose to have direct contact. Meetup.com is a great resource for arranging such contact.

  • You might meet with other website owners, instead of just reaching out online, to discuss in greater depth mutual arrangements to promote each other’s websites.

  • Discover and attend nearby business seminars or conventions.

6. Promote your website offline.

  • There are tons of ways to increase website traffic and brand-name recognition off the Internet. For example, you might:

    • Hang up and hand out flyers.

    • Sell cheap T-shirts.

    • Put up stickers around town.

    • Take advantage of public speaking opportunities. Visit joesabah.com to see if you can get on a radio show to briefly promote your website and business.

7. Try to guarantee personal and professional referrals.

  • Word-of-mouth remains a highly effective promotional tool.

  • People that get recommendations from people they know, like their friends, or respect, like a celebrity, are more likely to take that specific advice.

  • Even referrals from people that someone doesn’t know, like people on the Internet, are highly effective at generating traffic.

The Rise of Postindustrial Society Meets the Demand for a New Type of CFO
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The US has been making a transition into a postindustrial society for some time now, in which creative service-based goods (as opposed to material goods) are the driving force of the economy. As waves of technological innovation continue to flood the marketplace each year, industries have had to turn to a new brand of financial expert for ideas. This expert, known as the “postmodern CFO,” must be capable of overseeing the transitional effects of post-industrialization.

The new skills postmodern CFOs have, or in other words, the ones CFOs must soon expect, include:

  1. The ability to create business models that reflect market trends. This requires business and marketing expertise, and incorporates analytical skills.

  2. The ability to attend to core financial responsibilities while also recognizing and reacting to customer/client feedback, as well as social trends.

  3. With the influence that politics and media now have on modern economics, CFOs must have the ability to foresee the influence of external trends on business and finance.

3 of the Best Ways to Make Money Online
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Everyone knows the Internet is a goldmine. Knowing how to fully take advantage of that goldmine is a different story. Where to even start? It is important to keep an open but cautious mind when learning ways to increase your earnings off the Internet, as there so many opportunities out there, and it can seem hard to narrow them down. This article seeks to highlight some of the best money-making methods online:

1. Be an affiliate marketer.

As an affiliate marketer, your job is to promote products or services for others. This can be done through a variety of means--be it email campaigns, website advertising, or social media promotion. Affiliate marketing remains one of the most consistent ways to make serious money online, and requires less work than starting your own business.

For more on Affiliate Marketing, see our article “Affiliate Marketing: The Basics (Plus 2 Steps to Get Started!).”

2. Turn traffic into money through advertisements.

There are quite a few ways you can monetize your website traffic, including

Google AdSense, which remains the most popular go-to method for digital advertisers and people willing to sell website space for extra revenue. You can be making money whenever someone clicks on the ad. Additionally, useful analytical features of the program automatically discern what types of ads would be most successful on your website. One should keep in mind, however, that the revenue generated from these ads won’t be that big if your website has low visitation. That’s why it is so important to promote traffic!

Traditional banner advertising (TBA) is another advertising method that will monetize your website’s traffic. With TBA, you will most likely be working directly with advertising clients instead of going through third-parties like Google AdSense. Search the following forms of TBA on the Internet to find advertisers that would pay for ad room on your website:

  • Cost per click (CPC): You get paid a little every time the ad is clicked. When using this method, you must keep track of how many website visitors click an ad. This can be done using statistics-tracking software like Google Analytics. Report the number of clicks to your advertising client and they pay you at the established rate. Or, as is true with affiliate products, the link imbedded in the ad may be specialized for you so that the click or sale can be traced back to you. You may be able to choose how much to charge, or they may choose for you, but either way, the price should be relatively low, as clicks do not guarantee a sale or more business for that person. If the person provides you with the ad to use (which is most often the case), make sure it’s appealing and fits in well with your website.

  • Cost per 1,000 pageviews (CPM): This method is nice because the quality of the ad or what is being advertised (and the likelihood that the ad is clicked on) is not as important--you are paid every time the ad is viewed 1,000 times. The advertiser will probably decide to pay a rate of approximately $3-$10 in advance so you’ll showcase the ad up to 1,000 views, and then the process will repeat. This is a general contract--some advisters may choose to require more or less views. Advertisers will likely be more willing to pay more to advertise on more successful, traffic-driven websites.

  • Pay per lead (PPL): Often associated with pay per call (PPC) advertising, these methods include using ads that encourage visitors to take action with the client. The visitors see the ad and call, or email, or otherwise contact, the client. There is more than one way to employ pay per lead advertising (as is true with most advertising methods), like working the number into a blog article. Pay per call advertising is often arranged by third-party companies, like InterGMedia. Check them out and see what products you could be promoting.

  • Call per action (CPA): Common in affiliate marketing, this method means the advertiser only has to pay when an actual sale is made through their advertisement. You will be paid a commission of the sale, which can be quite substantial, depending on the commission percentage and the price of the product or service. Call per action advertising may seem harder to pull off successfully, but it should be noted it is the method with the greatest potential for obtaining high amounts of revenue. Likewise, you have a greater incentive to make the ad successful.

3. Market and sell your own products or services.

Having your own unique product or service is probably the best way to make money online, but not necessarily the easiest. The work goes beyond the digital realm and requires some creativity, aptitude, and long-term commitment. You must also consider manufacturing and shipping costs, if the product is physical. Your product or service doesn’t have to blow the world away--it can be somewhat basic, if you desire--but there has to be a recognizable need for your product or service, be desirable enough so that it won’t be a tough sell, and have a profitable production margin. Your are responsible for the success of your business, so the more work you put into it and the more you learn, the better you do.

Some general tips and guidelines for selling and promoting your own product or service:

  • Information products like ebooks are inexpensive and relatively easy to produce and deliver. You could probably sell actual books for more money and become more popular and potentially profitable by self-publishing, but e-books are less expensive to produce, don’t have to be shipped or bought at a physical location, and you won’t have any unsold physical copies burning a hole in your pocket.

  • If you prefer to write less, audio in its many forms is always popular. If you know a foreign language, you could easily create some language-learning content and sell it on disc or, more simply, require payment for online access. Or if you enjoy reading, you could record and sell non-copyrighted audio books. You could also make your own music or start a podcast that could get  sponsored.

  • Use video to demonstrate and promote your product or service. You might consider creating original content for sale or starting a video blog that could earn money from advertisements.

  • For everything you produce, create an entire product line by converting the product, into other formats. For example, if you wrote an ebook, you could convert and expand the information and niche using video, email campaigns, or an entire website.

Affiliate Marketing: The Basics (Plus 2 Steps to Get Started!)
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The Internet is full of thousands of examples of people that have made more money than they ever could imagine, all through affiliate marketing. In a nutshell, affiliate marketing is promoting someone else’s business, product, services, etc., and is almost entirely a digital craft. Marketing is done through a variety of methods like placing targeted ads and building email lists. Websites want traffic and are willing to pay you substantial commissions for successfully attracted business.

If you have no marketing experience (or really, no experience at anything business-related), fret not! People are often surprised by how simple affiliate marketing is to pick up and get started. Since the work you do to market is all done online, affiliate marketing allows you to become your own boss, work when you want, and depending on how much initiative and resolve you have, earn upwards to a six-figure salary or more. That is full-time pay for what often feels like relatively easier work, and indeed, one can even automate the process of affiliate marketing and be making money whenever, wherever.

So where do you sign up? This article contains the first two steps you need to get started, including the basics, the tools, and guaranteed success tips.

 

     1. Understand your role as an affiliate marketer.

Remember that your primary goal as an affiliate marketer is to gain money by promoting another person’s product, service, and/or website. This can be done a variety of ways, such as pay per click, but the most common payment method is a sale commission.

Sales commissions can be exceptionally high, and depending on the price of the product you are promoting (and of course, how successful you are at promoting) that means big bucks for you. You earnings are guaranteed through the use of hoplinks--when a particular person clicks a special link provided to you by a company for a certain product, and ends up making a sale, then you get paid.

Online programs such as Clickbank University provide useful instruction with additional clarity on these aspects of affiliate marketing, as well as useful tips on developing a marketing strategy.

 

     2. Find an affiliate product to market.

You should find a product that you are personally interested in and will be motivated to promote. The product should also coordinate with whatever marketing strategy you are employing. For example, if you have a blog dedicated to golfing, then you should probably be promoting golf equipment.

A website isn’t necessary to promote someone else’s product, although it admittedly makes it easier. You can promote as many products for as many companies as you want, but some companies will not allow you to be an affiliate unless you have a successful website. Also, you may be only be able to target certain product niches, and promoting even one product can be an extensive process, especially the first time around.

In any case, try to have an idea of what products or services you might be promoting before creating your website or starting a campaign, because naturally, your website and campaigns should reflect an interest in whatever the potential customers are interested in.  

If you are unsure of how to find affiliate programs or take advantage of available product promotions, simply Google it. Search for an exact product (if you know one) or topics that are industry-specific, and follow it with affiliate marketing. The aforementioned ClickBank.com is an excellent affiliate aggregator, as well as Commission Junction (cj.com). Affiliate aggregators are programs wherein marketplaces advertise available affiliate marketing jobs available. Programs such as these make it especially easy to be an affiliate marketer, with ease of payment options.

Getting started with affiliate marketing may seem intimidating, but remember, every successful journey begins with the first step. Just keep making steps forward and eventually, you will be smash success. Good luck out there!

The 3 Strategic Components of Effective Capital Allocation
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Correct capital planning and sourcing can improve returns. Your sense of capital allocation will improve, having a clear company goal (investing or otherwise) in mind. Remembering a few simple things about effective capital allocation will allow you to overcome any plateaus in business growth.

The importance of having a well-defined investment strategy cannot be understated. If there are any problems with the company’s current investing practices, the problem should be rooted out at the source to prevent further complications. If the strategy does not incorporate most of the following elements for highly effective capital allocation, then a new strategy should be adopted:

  1. A priority on investments. Having a defined marker for value. Define what exactly your company values and act accordingly.

  2. A clear focus on where the company wants to compete.

  3. An ownership mindset. This mindset keeps the company in mind.

Artificial Intelligence's Place in Modern Business
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Although human involvement remains a key factor in business development, recent studies may indicate that technology is--and always will be--the future of most industries. 56% of businesses have some established form of artificial intelligence (AI) that has increased productivity and allowed companies to cut back on expenses and resource their funds into more valuable growth opportunities.

Of course, it shouldn’t be assumed that technology is trying to replace anyone. In the professional world, technology should be thought of as a tool that’s there for business owners themselves to own and control. The evolution of technology, especially in the past decade, has expanded the field of business exponentially. Valuable labor costs have the potential to be refocused within one’s own business while productivity and returns are doubled. All of this is being achieved through AI.

The most informed CFOs should be well aware of the impact AI has on various fields of business. Besides its clear influence on any manufacturing-industry, AI itself is a promising market that serious business owners are not overlooking. Nearly 33% of major business owners are expected to invest between $500,000 and $5 million by this time next year.

AI’s strongest role is that of automation. Companies are often surprised by the number of tedious tasks that can be performed by AI, saving both time and money. The return of investment alone from investing in AI is enough to make investing a serious consideration. Keep in mind that the future of most jobs involves not how well conditions can be improved in existing circumstances, but how well the workplace will adapt to brand-new circumstances.

3 Key Elements of Smart Capital Allocation
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The expression is not new, but it remains truer than ever: Don’t put all your eggs in one basket. Fluidity is a near-guaranteed aspect of any market, and it is ultimately the uncertainty this fluidity provides that makes spreading out one’s investments so important. Unfortunately, the current trend in a lot of companies is to simply stack loads of capital in the same locations, when in actuality, there is less risk and better possible return rates available through diversification.  

Smart capital allocation can be obtained by investing in a variety of markets with different risks and return levels. The best markets are determined through a strategic perspective of financial goals, economic growth trends, stock market data, and more, entirely with both short-term and long-term goals in mind. Allocation strategy is something financial consultants understand well. All businesses (especially young ones) could improve their financial futures by sitting down with an expert and identifying, in broad terms, the company’s capital worth and growth potential.

The importance of having a well-defined investment strategy cannot be understated. If there are any problems with the company’s current investing practices, the problem should be rooted out at the source to prevent further complications. Follow these steps and you’ll be well on your way towards more effective capital allocation:

   1. Put your best ideas first.

Find the funding for the best investment options, depending on the company’s priorities and capital potential.

   2. Move from "possible" to "probable." 

Have foresight regarding what marketplace and industry the company is competing in and whether or not investing goals are realistic. Analyzing the company’s financial history, expected performance, and performance relative to competitors provides valuable insight.

   3. Align your team with a shared goal.

Consider the company as a whole, and don’t be swayed by the potential biases of private business owners. Clearly define what financial success means in accordance with the goal set.

Lon Searle
Best Cryptocurrencies to Invest In - 2018
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Most people, especially independent investors, are well-aware of the promising future of cryptocurrencies. Regardless of public discourse, cryptocurrency remains one of the fastest growing industries; although cryptocurrencies have generally more fluid markets, this can be owed in large part to people’s uncertainty and unqualified fear-mongering caused by misinformed people and even the government. In reality, cryptocurrencies have been shown to be a safe and more effective form of currency in places across Canada and Europe--in Amsterdam, bitcoin is a fully accepted and popular form of payment (there are even Bitcoin ATMs!). The shock and awe surrounding cryptocurrency is to die out in a few years and gain more stability shortly as people become more seriously informed about the economic benefits of cryptocurrency.

A lot of the uncertainty revolving around cryptocurrencies may also simply involve the actual amount of cryptocurrencies to choose from. Bitcoin may be the biggest but that certainly doesn’t make it the best. You should know all the major factors involved before investing seriously. If you are unsure of where to invest, or even where to begin, here is a full list and details of the most promising cryptocurrencies in 2018:

 

1. Ethereum (ETH)

  • Has grown 3000% since last year.

  • Second largest cryptocurrency behind Bitcoin.

  • Price as of Aug. 2018: $271.51

  • Ethereum’s unique platform allows developers to build and manage their own cryptocurrencies.

  • Blockchain experts such as Julian Hosp suggest Ethereum’s market cap could reach $200 billion soon.

 

2. Ripple (XRP)

  • Growth rate around 36000% since 2017--an astonishing number!

  • Low price of $.908 as of Aug. 2018, a perfect price to accumulate a large number of stocks at in anticipation of likely price increases.

  • Ripple is the cryptocurrency with the third largest market cap measuring at about $35 billion.

  • Ripple’s apparent popularity may have to do with the fact that it functions as both a digital currency and a payment method.

  • Utilizes blockchain technology, rendering international payments faster and more secure.

 

3. Litecoin (LTC) 

  • Growth rate of nearly 8000% in 2017.

  • Reached a price high of $358 in Dec. 2017, has since decreased to $55 with expectations of returning to a higher price with more stable growth.

  • 5th largest cryptocurrency, market cap of $11 billion.

  • Litecoin was originally designed to improve Bitcoin’s technology--indeed, Litecoin is able to complete transactions four times faster than Bitcoin. Litecoin is also the first cryptocurrency to perform a Lightning Network transaction

 

4. Bitcoin (BTC)

  • No cryptocurrency list would be complete without mentioning Bitcoin, which remains the biggest cryptocurrency, occupying 40% of shares in the total market cap.

  • Bitcoin Cash is another popular form of Bitcoin that has allowed investors to double their returns.

  • Bitcoin has experienced huge growth, skyrocketing from below a hundred dollars to its price high of $20,000. Its current price as of Aug. 2018 is about $6500 and is expected to reach former heights within the next few years.

5 Rules of Marketing that Every Business Should Know
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A good business model and a good marketing plan go hand in hand. They compliment each other like peanut butter and jelly--they may be fine on their own, but they taste much better together. Well-developed social media marketing in particular is a staple of modern business success. Whether you are new or seasoned in the marketing game, remembering the following marketing rules will allow you to reach your company’s goals successfully:

1. Not even the best marketing can improve a bad product or service.

Although experts have confirmed the fact that successful marketing ultimately contributes the largest amount of success to a business, it is common sense that people won’t want your business if it isn’t quality. Apple Inc. has arguably the most elegant marketing campaign of most businesses, but one can see how the effect of their marketing strategy would lose its touch if they technology wasn’t genuinely good.

Drawing people to your business is only the first step--drawing them back is the second and equally important step, and it all depends on their experience. Keep in mind that word-of-mouth remains one the biggest factors in a business’s success. Also keep in mind that higher quality products/services provide the freedom to increase prices, and depending on the success of your marketing campaign, substantially more profits.

2. People can sense authenticity and respond positively to it.

Any company people can trust is going to fare far better than a company they feel like they can’t. Even companies that offer better prices will probably do worse than competitors who appear more authentic and therefore more trustworthy. Honesty is a huge component of trustworthiness. If the consumers smell a fish in the water, it is time to re-evaluate.

Marketing is an opportunity to let your company’s voice be heard, and that voice should be real. This may be easier for small businesses, as they tend to come across as more caring, but one must remember large corporations have hearts as well. After all, they too started off as small businesses, and companies have roots. Business size does not have to be an indicator of ethics. Regardless, emphasizing the fact that your business is run by real people who are in it for more than the money will always attract more people to your cause.

3. Keep open ears--remember to listen and respond to consumers.

Have you ever been to a store where the employees treated you dismissively, or struggled to communicate with salty customer service reps? Odds are you did your business elsewhere from then on. As a customer (or client), there is nothing worse than feeling unimportant and unvalued. The saying “the customer is always right” has a definite amount of truth behind it. Whether or not the customer is a quote-on-quote “ideal” customer is not necessarily relevant--every last customer is of value to your business. You may consider employing marketing strategies that seek to respond to common customer concerns and re-establish any lost faith. For example, if consumers are concerned about the potential dangers of your product, post something or create an ad that clarifies it is safe or emphasizes the importance of safe use.

Additionally, anticipating what the customer might want or like ahead of time and giving it to them is a win-win solution. Ask yourself what your consumers would be pleased by--a new innovative product, perhaps, or even something as simple as having direct communication with the communication. The communication can be quite light-hearted. Have some fun with it! Make people know that you care about them and want to develop positive relations.

4. Look beyond the data.

If your company is trying to target a certain audience, and all your social media posts and ads clearly reflect this incentive, it is going to come across as selective. Nobody likes reading droll posts that only someone in the industry would understand, or sitting through a commercial that has nothing to do with them. Although they can’t technically be described as marketing, those annoying commercial run by lawyers targeting the few amount of people who might be able to take part in a class-action lawsuit are a perfect example of exactly what not to do when marketing; indeed, if you could list everything wrong with those commercials (such as impersonality and boringness) and create something that was the complete opposite, you would be well on the road to success.

Companies that appear to only care about drawing in certain people--regardless or not of whether they actually do--are not favorable. Even if your company is selling cat food, you should try to find a way to make the marketing accessible and open to dog owners, should they choose to get a cat. Appealing to everyone may be impossible but something as simple as throwing in the line “for pet lovers everywhere” could make all the difference. Otherwise, they have no reason to pay attention and will forget about you completely, when instead they may recall you later on and bring in business. As the experts teach, just one really effective ad can stay in someone’s subconscious and bubble up again when the time comes.

5. Make media content widely accessible.

This is a fairly simple concept but quite possibly the most crucial of all. When people have a need that your company can fulfill, it should be easy for them to find you. This means having a prevalent website that is connected to a variety of social media accounts, which are likewise all linked together. By strengthening the connections between different platforms--whether it be Facebook, Google, Youtube, email, television, etc.--you increase brand-name recognition, and therefore, success.