Best Home-Based Business Ideas

Is this the year you'll to start a small business from your home? If so, what opportunities provide your best bets for success? Menlo Park (Calif.)-based Homestead Technologies, which helps entrepreneurs design and maintain their Web sites, has come up with a list of the best home-based business opportunities for 2007. Manvinder Saraon, the company's vice-president of marketing and business development, discussed a few of them recently with Smart Answers columnist Karen E. Klein. Edited excerpts of their conversation follow.

How did you determine which business opportunities have the most potential for home-based entrepreneurs in 2007?

We looked at the business areas where there's a lot of spending going on and the areas that are hugely popular right now. We also looked at commonly held "pain points" for consumers, and trends where there are markets breaking out. We also looked at how difficult it is to get started, in terms of experience, education, and money. For instance, we feel that one of the best opportunities presenting itself for the home business market is being a garage organizer.

Why specifically focus on garages?

Because there's been a popular trend toward home makeovers and interior design and closet organizing for a few years. You don't have a big barrier in having to educate the marketplace about whether this is a valuable idea. But the one area of the home that's not been focused on so far is the garage. And garages of typical Americans tend to be very cluttered. So there's a market there, and it also presents easy entry: You don't need a specific degree to organize a garage. You're offering your skills and your time and hard work.

What are some other categories with a similar familiarity in the marketplace?

Another one is a niche market created by the eBay phenomenon. There are more than 700,000 businesses selling on eBay, and many of them recognize that they would be more successful if they had access to market research like pricing strategies, shipping information, and product analysis.

Home-based entrepreneurs who have some experience with eBay themselves could provide educated recommendations to these sellers or would-be sellers on a consulting basis. It's a classic business-to-business niche, but with an application in a new and growing marketplace (see BusinessWeek.com, 9/7/06, "EBay Sellers Go Back to School: 10 Tips").

A similar idea would be doing specialized outsourcing jobs. Outsourcing is integral to many firms that have limited resources and need to focus on their core competencies, and a lot of companies prefer doing business with other small-business owners. So we could see home-based entrepreneurs doing outsourcing jobs for small companies.

What kind of outsourcing services would they provide?

It depends on their backgrounds. They could specialize in business functions like sales, customer service and support, human resources, recruiting, accounting—any competency that they have and that a small business cannot afford to build in-house, or chooses not to establish in-house. For instance, there are people who love interacting with the public and who are very good on the telephone. Small companies could hire a home-based person like that to answer telephone or e-mail inquiries and take orders, as long as they can get them the proper training and familiarize them with the company's products, policies, and services.

One of the specialized services that we pull out for inclusion in the list on its own, by the way, is running a home-based debt-collection agency. There is so much outstanding debt that we currently have more than 6,000 debt-collection agencies in this country. But we believe there is going to be more growth in that area and more fragmentation in terms of individual debt-collection services popping up to specifically service small businesses.

Doesn't that require the entrepreneur to have education or some special training?

Yes, you do need to know about the federal laws that cover debt collection and small business, and those specific to your state and any other states where you'll be doing collections. There are also laws that are specific to home-based businesses and what they can do vs. what office-based businesses can do in terms of debt collection. The best way to familiarize yourself with the whole arena might be to get a job working for an established debt-collection agency for a while. That's also a good way to figure out whether it's something you are good at and enjoy doing.

Related to that idea is another outsourced service: doing background checks for employers who are considering potential hires. Small businesses with limited resources understand that pre-employment screening is becoming mandatory because of security concerns and issues like workplace violence. But they don't have a human resources department that can do this. So they are turning to background-check companies to handle reference checking, criminal background investigations, and due diligence. This business is ideal for startups who want to operate from home and provide a vital service to companies. Again, they will need to understand the legal requirements involved, particularly those having to do with privacy.

Here's another idea that you think is going to pop in 2007: pet sitting.

Right. Providing companionship for pets while people are out of town is another great home business idea that doesn't require specialized education, just a love of animals. People don't like to keep their pets at veterinary clinics in a cage, but they may be reluctant to impose on their friends and neighbors if they travel a lot. There's a $34 billion-a-year industry in pet services in this country, and 135 million dogs and cats in the U.S., so again we know there's a huge market out there.

Digital photography also provides what you think might be a huge market in "scrapbooking." But hasn't that trend already peaked?

You're right that people have been teaching scrapbooking workshops and selling products for several years now. But our idea is a twist on that, as an opportunity for the home-based entrepreneur to market herself as a professional scrapbook artist. The reality is that we all have these digital cameras that take beautiful pictures, but they're all stuck online or in a computer or a camera and nobody ever looks at them.

Also, most of us don't have the time or the talent to download the photos and put them together to make a tangible memory or a gift for a relative or friend. Someone creative who has done this for herself as a hobby could turn it into a business. We suggest they get started by doing things like donating their services to their kid's school as part of an auction, or teaching a summer class through a community college or local recreation center. Once they can show potential customers their work, those people will hire them to do the same thing with their own photos. It's a great gift business for holidays and birthdays.

Finally, you also recommend that creative types get into the business of providing children's art education.

Yes. The tutoring market alone is around $4 billion annually, so home-based businesses that create products or services aimed at educational companies should find a lot of customers. Schools long ago reduced art budgets, but parents are recognizing that creativity and innovation are important skills for their kids to have. And art, music, drama—these all foster those kinds of skills.

Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.

How to Get Ideas by Jack Foster

Clever marketers infiltrate video Web sites

One day in June, MerlynDHZ shot a digital video of himself and his buddies flying down ramps, gliding across railings, and doing other skateboard-like stunts in their Heelys, sneakers with retractable wheels hidden in the soles.

The next day, he uploaded the clip onto the video-sharing Web site YouTube. Within a month, more than 2,000 people had viewed the 90-second snippet. A few fans even linked to it on their personal MySpace homepages.

What MerlynDHZ's fans may not know is that he and the other skaters in the video work for Heeling Sports Ltd., the Carrollton, Texas, company that makes Heelys. Heeling Sports is one of a growing number of businesses seeding YouTube with short videos to generate buzz on the cheap. The homemade quality of the clips appeals to young consumers who are constantly bombarded with ads, says Brooks Radighieri, Heeling Sports’ marketing manager.

“It has more validity if it doesn't look like a corporate-sponsored video,” she says. “Kids are sharp — they know when you're trying to sell them something.”

So-called video viral marketing has exploded over the past year, thanks to increased broadband capacity and sites like YouTube, which make it easy to upload and share videos online. Indeed, seven out of 10 Internet users have watched an online video, and 30 percent of those people have shared one with friends, usually via e-mail, according to a survey by the Online Publishers Association, a research group in New York City.

“Videos seem to have replaced the jokes in my in-box,” says Stefan Tornquist, research director at MarketingSherpa, a research firm in Warren, R.I. The same study shows that viral videos translate into sales. Sixty-six percent of the people who watch videos online have seen an ad clip. About one-third of those viewers visited the marketer's Web site, and 8 percent made a purchase.

A lot of that is thanks to YouTube, the dominant player in a category that includes Google Video and AOL. Every day, people watch more than 100 million videos on YouTube and upload 65,000 new clips. Many videos are posted by amateurs playing around with camcorders in their backyards, but sprinkled in are Hollywood movie trailers — and clips created by companies eager to capitalize on the craze.

Amid such clutter, it’s easy to get lost. The funnier or more creative the spot, the better, Tornquist says. To build buzz for its new iced-tea malt beverage, for example, Smirnoff posted a two-minute parody of a rap video that featured country-club prepsters rapping about finger sandwiches, croquet, and, of course, Smirnoff Raw Tea. Within a few weeks, more than one million people watched the “Tea Partay” video.

“You can't be a classic brand manager, worried about having the right words,” Tornquist says. “The companies that are going to benefit will be the ones willing to stick their neck out.”

Even then, there are no guarantees. Case in point: Robert Alvin, founder and CEO of online swap shop BarterBee.com, who donned a bee suit to kick off an online video contest this summer. Contestants shot 60-second films with bee motifs and submitted them to BarterBee.com, which reviewed the clips for questionable content before posting them on YouTube.

BarterBee offered flashy prizes, including a 42-inch plasma television, and sent e-mail blasts to registered members of its site. In the end, though, only 30 videos were submitted, including the grand prize winner, which featured a man in a bee costume skateboarding through suburbia to deliver a BarterBee package. Still, considering that the campaign cost less than $10,000 — “We didn't make the creative and we didn't host the videos,” he says — Alvin may try again next year. For one thing, he adds, the clips still have legs on YouTube: One entry that spoofs the Mac vs. PC commercials has been viewed almost 5,000 times since August.

Heeling Sports has adopted a subtler approach. MerlynDHZ is actually David Chau, a 33-year-old member of Team Heelys, a group that the company formed six years ago to demonstrate its sneakers at in-store events. The skaters, who range in age from 10 to thirtysomething, try out for regional teams and are paid per event.

They also help Heeling Sports stay current. Based on their feedback, the company set up a MySpace page this year and Chau began filming videos with a digital camcorder. Every other month, when he uploads one on YouTube, fellow team members post alerts on Heeling Sports' online message boards and on the company’s MySpace homepage. Fans leave messages on YouTube, mainly in awe of the team’s tricks, and Chau occasionally responds with plugs for Heelys.

Radighieri admits that the campaign hasn’t had the same effect on sales as, say, the company's commercials on Nickelodeon. Still, she’s pleased with the low-cost exposure. Heeling Sports’ sales more than doubled, to $44 million, last year. The company recently went public. “It’s helping us build brand recognition,” Radighieri says.

There is one thing about YouTube that Radighieri doesn’t like: Heeling Sports can’t stop fans from posting clips that don't jibe with the company’s message. Many of the 150 videos that turned up in a recent search for Heelys on YouTube feature kids skating without the safety gear that the company recommends. One video depicts a Heelys-clad teenager hanging on to the back of a moving pickup truck until wiping out. Such videos make Radighieri cringe, but so far she hasn't tried to remove them.

Right now, Radighieri's more focused on making her own films. Plans are under way for a series of clips starring Team Heelys members showing fans how to perform skate stunts. Perfect content for YouTube, right? Maybe, but this time Radighieri is posting the videos on Heeling Sports’ official Web site.

Copyright Mansueto Ventures, LLC 2006

By Kids For Kids Kicks Off 'Get Your Head in the Game' Maryland Sports Invention Challenge

Help Employees Stay Fit and Healthy

Health-care costs are rising, and businesses that don’t prepare and adapt will be left in the dust. But this year, smart companies will start workplace wellness programs to help workers stay healthy and productive—and to lower health-care costs and employee absenteeism.

A recent survey of hundreds of companies found that 41 percent had already launched a health-related strategy. Statistics on bigger companies indicate that the savings can be almost $5 for every dollar spent on making workers healthier. And while larger businesses can afford more formalized programs, even smaller companies are getting in on the act.

In talking to small-business owners for my book, The Entrepreneur Diet, I found that many were really creative in how they brought a healthy culture to their company. They’re proof that you don’t necessarily need a lot of extra capital lying around for a lavish workout facility to help employees stay fit.

Here are some low-cost ideas from The Entrepreneur Diet to make a wellness program a seamless part of your business plan for 2007:

• Make exercise a work goal. Entrepreneur Gini Dietrich, who owns a growing public relations firm with more than 20 clients, gives her staff an incentive to exercise by adding a billable job code for their workouts. “It counts toward their annual billable goals,” she says. “I also offer a small gym membership reimbursement.”
  
  
• Serve up the right snacks. Dan Santy, founder of Santy Advertising, keeps healthy snacks in the office lunchroom for both himself and his staff. “I firmly believe that the people who are the most active and fit, and who have good healthy diets,” he says, “don’t miss work.”
  
  
• Give a health-related benefit. At Stacy’s Pita Chip Company, business owners Stacy Madison and Mark Andrus give a $500 annual benefit to be applied toward anything that is health and fitness related. “It’s an incentive for people to start bringing some healthier aspects into their life,” Madison says.
  
  
• Communicate. Newsletters and paycheck inserts can keep the idea of health and fitness regularly in the minds of employees, says the American Institute for Preventive Medicine, which works with health-care organizations and corporations to help implement health promotion strategies.
  
  
• Map it out. Other ideas from the Institute include posting a map in the office that measures out a short walking route around the neighborhood, placing some comfortable chairs in a quiet area so employees can take stress breaks, and having a local massage therapist come into the office once a week for inexpensive 15-minute massages, which employees pay for out of pocket.

Creating a healthy work environment can be done with a minimal budget. And it not only makes for fitter, more productive employees, it also encourages wonderful workplace camaraderie.

Tom Weede is a certified strength and conditioning specialist, a certified health and fitness instructor with the American College of Sports Medicine, and a former senior editor for Men’s Fitness magazine. He recently authored The Entrepreneur Diet, which provides a six-week menu plan and time-efficient exercises for anyone on a tight schedule.

Special Topics in Calamity Physics

Top 25 Personal Finance Myths

Someone once said that if you were to make a list of your 10 closest friends and acquaintances and order your earnings and theirs from smallest to greatest, you'd probably find yourself somewhere near the middle. All that this means is that we are subtly influenced by our friends, even when we're not aware of it, especially in matters of money. Being somewhere in the middle is probably more comfortable for the average person.

If you are that rare person at the high end of the list, then you probably don't need to read this article. If you are not, then find out what's holding you back. There are hundreds of personal finance myths which are either misunderstood, taken out of context, or just plain incorrect. Here are our top 25.

General Perceptions

There are a lot of very general negative feelings and perceptions about money in several societies, built up over several generations.

1. I don't deserve to be rich.
   Why not? Intuition suggests that no matter which religion you follow, there are people who are successful and got there by honest means. What is wrong with that? Believing this myth cripples your willingness to be open to opportunities. Keep in mind that the government, Medicare, and other programs are not going to take care of you as much as you think.


2. Rich people are scum.
   Or greedy, selfish, uncaring, or whatever. It's just that the scummy rich are more played up in the media because it sells newspapers. Of course, the rich didn't get that way by giving away their money. At least not until they are ultra-rich like Bill Gates, Warren Buffet, and others who have donated to the Bill & Melinda Gates Foundation. One principle you could live by is this: you can't help the poor if you are yourself poor. Idealism is romantic, but reality is more sobering. This is a variation of the belief that "money is the root of all evil." What the Bible really says is that "the love of money is the root of all evil" (Timothy 6:10). These are two wholly different things, but the misinterpretation causes some people, even whole societies, to shun money. Become wealthy, then start your own prosperity project and give away wealth to good causes of your choosing.


3. You have to have X dollars to be wealthy.
   Wealthy is what you think it is for you. Don't try to keep up with the Joneses. Keep things simple. CNN Money has 10 rules for building wealth. [via LifeHack] Key is starting early, or at least starting now. Compound interest takes care of some of the growth, but if you are not keeping up with inflation, then you are not building wealth.


4. Those with obvious material wealth must be rich.
   Experience suggests we humans get jealous or resentful for so many reasons, and witnessing someone's material wealth is often one of them. But don't be so sure that the neighbor with all the cool ATVs, skidoos, swimming pool, and latest car is actually wealthy (has liquid assets), or even happy. He/She could be deep in debt to maintain the facade.


5. Money makes you happy. Money makes you unhappy.
   Well which is it? Money does not have the power in and of itself to make you happy or unhappy. There are happy poor people and miserable rich people. More money does help with the bills, provided you know how to manage your wealth. But people with more money can also spend more than necessary and actually end up with less. Read this money sermon by Coty Pinckney for a bit of insight.


6. There's only so much money in the world.
   There isn't enough in the world for everyone to be wealthy. This couldn't be farther from the truth. Honest economists — yes, there are some — have said that there is more than enough money in the world for every single human being to live comfortably. Some people also believe that the Internet is the great leveller that will help redistribute at least some of the world's wealth, for those pioneers who participate.


7. Becoming rich is hard work.
   It can be easier than you've been told. Dr. Marsha Sinetar's book Do What You Love, The Money Will Follow is one of the best guides for an organic approach to wealth. It also does not have to be linearly dependent on your earnings. It does not mean you don't have to work hard and smart at it at first, but it doesn't have to be "hard" in the sense that it's not enjoyable. And eventually, it gets easier to build your wealth — once you've made your mistakes.


8. Working hard and saving your money makes you rich.
   These are components of becoming wealthy, but not by themselves sufficient. Saving is linear; investing increases your wealth. Jesus said to "multiply talents." This has been interpreted to mean that you should multiply your wealth. Do more than save. Start by having a small sum automatically deducted from your paycheck each pay period and deposited into a 401(K) or Roth IRA.


9. Earning lots of money makes you rich.
   Only if you actually save and invest it. If you spend it all, like some high-earning individuals, then you are not rich. Wealth is defined by liquid assets and investments, not how much you earn from a job. In fact, people who earn more money but have no plan for the so-called disposable income end up doing just that — disposing incoming. Some do it out of guilt of having "more than necessary", others because they feel they owe it to themselves to "have something nice", and still others to "keep up with the Joneses".


10. Pinching pennies is the way to wealth.
    Hardly. What this really does is set up an emotional enivronment of lack, causing you to miss out on opportunities to gain wealth because you become focused on every little penny. In fact, penny-pinching is actually one common catalyst of divorce.

Spending and Saving

It's been said over and over, but too many people are not clear on the concept: to build wealth, you have to save more than you spend. Once you gain the money, however, you can spend some and enjoy yourself.

11. Buying on-sale items saves money.
    It's that "use your coupons" myth in another form. What really happens is that the items you buy on sale are items you want, not need. It's even worse if you drive out of your way to buy it. A lot of people shop at big box stores on the premise that they are saving money, even if they drive miles there and back, spending gasoline and time. They also buy giant boxes of food items and sometimes end up eating more of it than "because it's cheaper" than they normally would have. Also remember that if you purchase a $100 item at half-price, you didn't just save $50; you just spent $50.


12. Two incomes are better than one.
    This is not always true, as two incomes often tempt or require you to spend more, resulting in less savings. If you do have two incomes in the family and can actually manage on one, save the excess instead of spending. That might feel like a bit of sacrifice, but you could always use the savings for a yearly family vacation. Saving then puts you into the frame of mind of realizing that you do not have to spend to show off luxuries now, bought on credit. Instead, you are paying because you can afford to, later, after your money has collected interest.


13. You need to earn more to save.
    Try this. What happens if you suddenly start earning less money in your job? You adjust, right? So save a percentage of what you make and set it aside somewhere. If you are undisciplined, have it deducted from your paycheck automatically into a 401(K) plan or Roth IRA (Individual Retirement Account).


14. Saving is hard, and I don't make enough.
    What's hard is developing a bit of savings discipline. Sure, you need to sacrifice a little, but it's a question of what is more important to you. Annually, there are approximately 48 weeks of work for the average professional, or about 240 work days. On each of those days, if you are spending $4–6 on breakfast in the cafe near work, then ask yourself whether getting up 15 minutes earlier to have breakfast at home for about $1–2 is worth saving $3–5/day x 240 days = $720–1,200 per year. If it's not an inconvenience for you, what could you do with that money? If you want somewhere to save it, for easy access, you could try an online savings account. These give you more interest than a regular savings account, and they are more liquid than stocks or bonds. To give you a leg up, track your finances by using the right tools

Credit, Debt and Loans

Credit and debt seem to have the biggest collection of myths.

15. Debt is bad.
    Managed debt is actually good, and builds up your credit rating. On the other hand, credit card debt tends to be amongst the worst, so eliminate that first. Any debt where the cost is used to gain wealth (such as property or stocks) can be good if managed properly. But get the best rate you can find, not necessarily the first offered to you.


16. Co-signing a loan is no big deal.
    Tell that to all the ex-spouses or friends that got swindled, intentionally or unintentionally, by someone they knew. Think twice before you co-sign a loan, no matter who it is. Because legally, you are responsible for its payment if the primary signer skips out on it. And if it all goes bad, your credit rating will be affected (PDF, 2 pgs). Unfair but true.


17. Zero percent credit cards save you money.
    Of course they don't (always). They tempt you to spend more than you otherwise might have. If you don't make the payments on time, the interest rate you pay is probably higher than normal. And of course, we all know that misuse of credit cards (usually due to poor personal finance discipline in payments) results in a bad credit rating.


18. Zero percent car loans save you money. This is a variation of the last point, except that in this case you are probably paying the interest up front. That is, you could probably find the same car for less elsewhere, and the loan interest would be paid out over time. There are several other related myths, as the Triple-A points out, despite the popularity of zero percent car loans.


19. You must have a credit card to survive.
    Sure, some things just cannot be purchased without a credit card or an enormous deposit. But people got along without credit cards in the past and can still do so today. Though the advent of RFID-enabled contactless credit cards seems to be changing that, as there are some outlets including vending machines that are refusing cash. Nevertheless, it is still possible to live without a credit card, though it sometimes takes more effort to get by without one. Just make sure that what you want is something you really need.

Investing

Investing has its own slew of myths, often perpetrated by the uninformed or those who gave up after their first loss. Get your losses out of the way.

20. You have to earn Y% each year on your investment.
    Again, you have to define wealth and increase for yourself. What do you want out of your savings and investment? Money for a vacation? Money for retirement? Payouts every month? If the latter, go for a dividend-paying mutual fund or stock. If for a retirement, try an appropriate plan such as long-term stocks and funds in a 401(K) or Roth IRA. For short-term, liquid investments, try an online savings account. Though keep in mind that the latter, while relatively safe, are probably just keeping up with yearly inflation.


21. Property is always the best investment.
    Note that property can sometimes be a great investment if you already have wealth and know what you're doing. But if you can't afford the property and have to take out a large mortgage or even a double mortgage, you should think twice. Real estate debt is not always appropriate. Don't forget to factor in the property taxes, property insurance, maintenance, and all the other costs. Sometimes it actually is better to rent.


22. Property is always the best investment, part 2: it's an easy way to build wealth.
    If you have a residence and want to invest in additional properties, consider how much effort it will be to maintain them, including actual maintainance costs, property taxes, and the bother of finding reliable tenants. Unreliable tenants can destroy your property value, ruin your credit rating, wreck your wallet (in court costs) and generally sap your energy like a bunch of vampires (though tenants generally feel the same about landlords, thinking they are rich leeches). And a property management service costs money.


23. Property is always the best investment, part 3: mortgage is tax deductible, which is great.
    What about all the mortgage interest you are paying over time? What about saving more money first and starting with a smaller mortgage? This reduces your monthly payment, and you can invest the savings in mutual funds, stocks, or CDs (Certificates of Deposit). Sure, you'll be taxed on the capital gains, but do the math and you'll find that you'll be out ahead in the long run, not behind.


24. Dollar Cost Averaging (DCA) works for all investments.
    DCA works best for market indexes (or stocks or funds that mimic them) because they work on the premise that an index will eventually recover, even if it takes a few years. A regular stock or mutual fund may not recover, so DCA is not always suitable.


25. A positive average return over several years means profit.
    Randy Carver gives an example of a client who had invested in a fund with a positive average over two years. In year one, the fund gained 100%. In year two, it lost 50%. Total actual gain for money invested at the start of year one is zero. But one magazine indicated that the average return over two years was (100-50)/2 = 25%. Averages for investing returns just don't work like that, and are meaningless when any negative returns are involved. What's worse, the fund took a management fee, and the investor actually ended up in year two with less than he started. Mutual funds are notorious for this sort of thing.

Go to source.
Is 'Anyone Can Do It' Just A Marketing Schtick?

Why You Should Knock Yourself Off.

One of the secrets to market domination is knocking yourself off. NOT cloning yourself, but creating a new Unique Selling Proposition in the same market.

That's why Toyota created Lexus. It's why McDonalds started Chipotle. It's not just big companies either - it's just as true with 'little' guys on the Internet. In some of the most competitive markets imaginable, you see 11 real ads on the first page and most people don't know that two parent companies might be responsible for 5 or 6 of them.

Hey, if you've successfully gained a foot hold in one market - and you understand that market deeply - then if you want to grow your business bigger then why go to the trouble of learning a brand new niche?

Do something in the one you're already in. Create a NEW offer that's so appealing, it takes its place along with the other top dogs. New product, new website, new Google account.

Don't ever forget that on *any* search term there's a whole spectrum of tastes and desires that the keyword represents. One website and one ad can only cater to a handful of them. There are still others you're not serving. But you can.

[Via Perry Marshall]

Do Sales Contests Work?

A New Twist On Affiliate Marketing

http://www.deprice.com

Affiliate marketing is nothing knew. There are hundreds of thousands of affiliate online, all looking pretty much the same. But being the same is something that John Gromovski didn’t like. So he decided to become the first affiliate discounter. How’s that possible? Well, John works only with vendors, who let him offer discounts … out of his own commission.

“I started DePrice.Com in December of 2004 with 9 dollars,” says John. “As an affiliate, I didn’t need any inventory. I simply signed up with several vendors, got permission to offer discounts out of my own commission, created a simple website and started selling software, using forums, Froogle, search engines, etc. The very first month I’ve sold about $2000 worth of software, clearing $500. Next month, I tripled my profits. Last year, Deprice averaged $17,000-$20,000 in sales a month. This January our sales are up 20-25%.”

Is it really that simple? Well, not quite, John insists. The trick is to find a software title in high demand and offer the lowest possible price, so that people talk about the site, making advertising expenditures unnecessary or minimal. John claims that he sells East-Tec Eraser for $39.96 an offer that nobody on the internet matches. The very same software is offered at Amazon.Com for fifty dollars.

Another niche he actively pursues is finding shareware titles that big vendors don’t carry and don’t offer discounts for. He especially likes downloadable casual games like Luxor: Amun Rising that are under the radar of big game sellers. Still, persuading software makers isn’t always easy.

“Some software developers are afraid of affiliates who sell at prices that are lower than their own. But that’s really silly. Discounters generate extra sales, they don’t take sales away.”

As far as competition goes, John is not afraid of anybody undercutting him either.

“Being a discounter is a tough business. Most people simply can’t do it because they don’t have any free or real cheap traffic. Plus, the margins are really slim, so most folks who follow my model don’t do software, preferring niches where 50% commissions are quite normal. eBooks, online courses, membership sites – things of this nature.”
Starting your own home based business

10 Totally Stupid Online Business Ideas That Made Someone Rich

1. Million Dollar Homepage

1000000 pixels, charge a dollar per pixel – that’s perhaps the dumbest idea for online business anyone could have possible come up with. Still, Alex Tew, a 21-year-old who came up with the idea, is now a millionaire.

2. SantaMail

Ok, how’s that for a brilliant idea. Get a postal address at North Pole, Alaska, pretend you are Santa Claus and charge parents 10 bucks for every letter you send to their kids? Well, Byron Reese sent over 200000 letters since the start of the business in 2001, which makes him a couple million dollars richer. Full Story

3. Doggles

Create goggles for dogs and sell them online? Boy, this IS the dumbest idea for a business. How in the world did they manage to become millionaires and have shops all over the world with that one? Beyond me.

4. LaserMonks

LaserMonks.com is a for-profit subsidiary of the Cistercian Abbey of Our Lady of Spring Bank, an eight-monk monastery in the hills of Monroe County, 90 miles northwest of Madison. Yeah, real monks refilling your cartridges. Hallelujah! Their 2005 sales were $2.5 million! Praise the Lord. Full Story

5. AntennaBalls

You can’t sell antenna ball online. There is no way. And surely it wouldn’t make you rich. But this is exactly what Jason Wall did, and now he is now a millionaire. Full Story

6. FitDeck

Create a deck of cards featuring exercise routines, and sell it online for $18.95. Sounds like a disaster idea to me. But former Navy SEAL and fitness instructor Phil Black reported last year sales of $4.7 million. Surely beats what military pays.

7. PositivesDating.Com

How would you like to go on a date with an HIV positive person? Paul Graves and Brandon Koechlin thought that someone would, so they created a dating site for HIV positive folks last year. Projected 2006 sales are $110,000, and the two hope to have 50,000 members by their two-year mark.

8. Designer Diaper Bags

Christie Rein was tired of carrying diapers around in a freezer bag. The 34-year-old mother of three found herself constantly stuffing diapers for her infant son into freezer bags to keep them from getting scrunched up in her purse. Rein wanted something that was compact, sleek and stylish, so in November 2004, she sat down with her husband, Marcus, who helped her design a custom diaper bag that's big enough to hold a travel pack of wipes and two to four diapers. With more than $180,000 in sales for 2005, Christie's company, Diapees & Wipees, has bags in 22 different styles, available online and in 120 boutiques across the globe for $14.99.

9. PickyDomains

Hire another person to think of a cool domain name for you? No way people would pay for this. Actually, naming domain names for others turned out a thriving business, especially, when you make the entire process risk free. PickyDomains currently has a waiting list of people who want to PAY the service to come up with a snappy memorable domain name. PickyDomains is expected to hit six figures this year. Full Story

10. Lucky Wishbone Co.

Fake wishbones. Now, this stupid idea is just destined to flop. Who in the world needs FAKE PLASTIC wishbones? A lot of people, it turns out. Now producing 30,000 wishbones daily (they retail for 3 bucks a pop) Ken Ahroni, the company founder, expects 2006 sales to reach $1 million.

Proposed Tax Breaks

By Kids For Kids Kicks Off 'Get Your Head in the Game' Maryland Sports Invention Challenge

Stamford, CT (PRWEB) January 30, 2007 -- By Kids For Kids Co. (BKFK) announced today the official launch of its 2nd annual Maryland invention challenge, "Get Your Head in the Game." This year’s competition will uncover the best new sports or sporting equipment ideas dreamt up by Maryland’s youth. Winners will partake in an exciting awards ceremony in front of a roaring crowd at Camden Yards ballpark this spring. Winners can also expect to see their ideas become reality with the help of kid empowerment company By Kids For Kids.

The competition seeks ideas in the following categories: Aquatic Apparel/Accessories, Boards (water/snow/skate), Cycling, Equipment, Fitness, Ice/Snow/Winter, Off Road, Physical Education, Safety, Table Sports, Track & Field, Training, Weights/Cardio, Water Sports and more.

Entries must be submitted via the By Kids For Kids website at: www.bkfk.com/mdchallenge, no later than April 27, 2007 at 9:00PM EST. There is no entry fee. All kids currently resident in the State of Maryland, ages 5-19 qualify to compete. The judges will look to "marketability" as the determining factor in selecting the winners. "Originality" and "inventiveness" will also be important judging considerations.

Grand Prize winners (up to 10) will receive a $1000 US Savings Bond, a licensing contract from BKFK, patenting (if patentable) for the invention and an all-expenses paid trip to the awards event at Camden Yards. Additionally, winners will be invited to identify the teacher who was most supportive and inspirational to them on their personal inventing journey. That special teacher will be awarded a $500 US Savings bond and also attend the awards event.

Norman Goldstein, Founder and CEO of By Kids For Kids Co., commented: "I encourage all the kids of Maryland to let their imaginations run wild! You can create an entirely new sport, or invent something to make an existing sport better. BKFK will help the winners develop their inventions - and get them out onto the store shelves."

By Kids For Kids has discovered the State of Maryland to be fertile grounds for kid’s creativity. "Get Your Head in the Game" follows last year’s successful "Cool School Tools" competition where kids were challenged to create new school supplies. Furthermore, with the cooperation of the Maryland Board of Education, By Kids For Kids successfully has made the BKFK "Inventive Thinking" program available throughout the Maryland public school and library system. One of last year’s "Cool School Tools" winners, Brenda Santiago, accepted a special congressional award on behalf of By Kids For Kids for the implementation of the Inventive Thinking program.

The BKFK "Inventive Thinking" program, developed in collaboration with the US Patent & Trademark office, is the definitive guide that helps kids tap into their creativity and navigate the often confusing inventing process. The program can be downloaded free of charge from the BKFK website at http://www.bkfk.com

Sponsors of "Get Your Head in the Game," the Maryland sports invention challenge, include: The Baltimore Orioles, The Baltimore Ravens, The Daily Record, Tessco Technologies and Whiteford Taylor & Preston. Companies interested in BKFK sponsorship opportunities should contact Shirley Stone at: (845) 876-2194.

About By Kids For Kids
By Kids For Kids Co., a closely held corporation based in Stamford, Conn., is the leading global marketing, branding and licensing company dedicated to making kids’ ideas a reality. Their mission is to inspire, motivate and stimulate the innovative spirit within all kids. In addition to providing free support and educational resources to America’s children, BKFK provides entrepreneurial experiences for young inventors and supports the entire ideation through commercialization process. By Kids For Kids represents some of the most brilliant young minds in America.

For more information about By Kids For Kids, visit www.bkfk.com

Contact:
John Forrester
+1 (323) 702-3684
American Theocracy: The Peril and Politics of Radical Religion, Oil, and Borrowed Money in the 21stCentury

Ad Choices Made Simple

Every entrepreneur from New York to Los Angeles faces the same daily dilemma--a finite marketing budget and an infinite number of advertising options. After all, your customers are bombarded with hundreds of advertising messages each day. From the moment they wake up, they're exposed to advertising on television and the radio, in the morning newspaper, their favorite magazines and their e-mail inboxes, and on websites, outdoor billboards and subway signage. There are even ads on fruit in the supermarket, corporate signage on secluded nature trails and marketing pamphlets promoting products in dental and medical offices.

This flood of marketing messages will only continue to increase, and that leaves you with critical choices to make about how you'll reach your prospects and hold their attention. Since every business is different, there aren't pat answers regarding what'll work for everyone. What I can provide are four great questions. Answer these, and they'll point you toward the right media.

Question 1: Where do your prospects look first?
People who already know they want to buy what you market are your top-qualified prospects. They need what you offer and are actively shopping in what are called "marketing search corridors." Will your prospects use search engines, the Yellow Pages or both? Are they looking for you in trade magazines or in a particular section of the newspaper? Identify exactly where your best prospects look first when shopping for what you sell, and place your ads there.

Question 2: Which media touch your prospects most often?
Each of us is touched by media at various points throughout the day. The key is to discover the media with which your prospects have meaningful interactions. Find out which TV programs they watch and which radio stations they listen to, and at what time of day. If your customers read a newspaper, which one is it? And if you're targeting B2B prospects, identify the industry publications they rely on for information. Then construct an integrated marketing campaign using a mix of media that will consistently reach them during their daily routines.

Question 3: Where will your message be best remembered?
Putting your advertising message in the right context is critical to success. In fact, your prospects are probably touched by all kinds of media that would be completely inappropriate for you. When evaluating your media advertising options, look for opportunities to communicate with your prospects when they're in the right frame of mind.

For example, your customers may often dine in restaurants where they're exposed to the posters on the bathroom walls. But while this particular advertising form may reach your best prospects, if it's inappropriate for your message, you should discard it as a marketing option. On the flip side, a website your prospects turn to for information on a subject related to a product or service you market would reach them when they're in exactly the right frame of mind, making advertising on that site a good choice for you.

Question 4: Can you stick with it?
Effective advertising requires frequency for your message to be remembered and acted on. As you construct your list of advertising options, choose a mix of media you can stick with for the long haul. It's preferable to choose media in which you can afford to advertise frequently, rather than to advertise just a few times in a larger range of media. Start small with sufficient advertising frequency in a cohesive group of marketing vehicles. Then, as your company grows, you can expand into additional media.

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Kim T. Gordon is the "Marketing" coach at Entrepreneur.com and a multifaceted marketing expert, speaker, author and media spokesperson. Over the past 26 years, she's helped millions of small-business owners increase their success through her company,National Marketing Federation Inc.

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Escape from Alcatraz with invention

It is a perfect gift idea that will stump even the most brilliant minds.

Brian McDermott, a magician grew bored of his usual tricks and was in search of new ideas. His quest led him down a path of familiar tricks he had already used. He began pondering the idea of his own invention.

Through a long trial and error process of sketching shapes and patterns, he formed a cube with a sphere trapped inside, illustrating a ball in a cage. And then it was born, "Alcatraz the Puzzle." A simple idea turned into a theme that only the most intelligent minds would be able to solve, he said.

"If you think you are up to it, I challenge you to escape from Alcatraz," said McDermott.

Read more on hometownlife.com.

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Want Your Start-Up to Be Successful? Appearance is Everything

A new report highlights the importance of making new businesses appear credible to employees and customers.

The success of an emerging business depends largely on the owner's ability to convince potential employees or customers that the nascent company is operational, according to new research.

In an attempt to explain why some organizations succeed and others flounder, Erno Tornikoski from the Seinajoki University of Applied Sciences and Scott Newbert from the College of Commerce and Finance at Villanova University, analyzed data collected in the panel study of entrepreneurial dynamics, or PSED. The PSED was a three-year study that identified and repeatedly surveyed 830 Americans who were actively involved in starting a small business. Their report appears in the current Journal of Business Venturing.

About half of the survey participants ultimately created successful businesses -- defined by researchers as ventures that had made a sale, hired employees, or received external funding. The researchers found that an entrepreneur's personal characteristics, such as level of education, had little to do with the success of his or her venture. Rather, the quality shared by successful entrepreneurs was the ability to make their emerging organization seem legitimate.

"People are likely to buy products, work for, and give money to entities that are credible, that they perceive as operational," said Newberg. "Organizations that make their fledgling operation appear more legitimate than it might actually be are better able to access customers and recruit employees."

While the education and previous experience of each entrepreneur had little bearing on the ultimate success of his or her venture, the collective experience of people on the start-up team such as employees, mentors, and financiers, did influence the venture's chances for success.

"It is an advantage to have some amalgam of start-up experiences within the team," Newberg said. "Even people who have started a successful business in the past, can fall victim to the 'sample size of one' because they are limited to that singular experience. A more diverse set of information about what seems to work and what doesn't, seems to be helpful."

The researchers also found that whether or not an entrepreneur had created a business plan for their start-up venture had no bearing on the success of that venture. Newberg speculates that perhaps investing a lot of time creating the perfect business plan document takes time away from executing the ideas described in the document. He also suggests that entrepreneurs may become too attached to their initial conceptions or misconceptions once they are formalized by inclusion a business plan. Because things change so rapidly for an emerging venture, it is important to be flexible, Newberg explained.

"Of course you need to have a reasonably crystallized idea of what you are going to do -- whether you write it down or have it in your head," Newberg said. "But it's important to remember that as soon as you write it down it's going to be wrong."

See sources.

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Sheltering Income from Your eBay Business

If you run a profitable eBay business, full-time or part-time, you may be able to gain tax relief and build up retirement savings through a qualified retirement plan and/or IRA. For example, if you net $40,000 from an eBay business and make a tax-deductible contribution of $5,000 to a retirement plan, you only pay income tax now on $35,000. If you're in the 25% tax bracket, the write-off essentially means that the contribution is only costing you $3,750 out-of-pocket; the government is contributing $1,250 through the taxes you save by making the contribution.

The type of plan you use and the amount of money you put into it depends on several factors, including how much you want or can afford to save, whether you have other retirement plans, whether you have employees, and your years until retirement. Here are just three options to consider:

The 401(k) Plan
If you want to put away as much as possible on a tax-advantaged basis, look closely at this plan. The paperwork for the plan must be signed no later than the end of the year to which contributions relate (so it's too late now to open a 401(k) plan for 2006). As long as the plan has been set up on time, you then have until the extended due date of your income tax return to actually put the money into the plan.

Where earnings permit, the maximum contribution for 2007 is $15,500, plus $5,000 for if you are age 50 or older by the end of 2007. The amount is not deductible; it is simply not included in income for the year. In addition, you can add an "employer contribution" (even if you're self-employed), to bring the total contributions for the year up to $45,000 ($50,000 if 50 or older).

Caution: Those who run their eBay business part-time and work a full-time job with a 401(k) plan must apply these contribution limits to a combination of both plans - those maxing out at work will not be able to shelter eBay business income by setting up a 401(k) plan for it.

The SEP (Simplified Employee Pension) Plan
You can contribute up to 25% of wages (or 20% of net earnings from the business) in 2007, up to a limit of $45,000 (the 2006 limit is $44,000). Even if you are covered by a company plan at a day job, contributions to your eBay business plan are not limited in most cases by company coverage.

IRAs
You can contribute up to $4,000 ($5,000 if age 50 or older by year-end). A deductible contribution is allowed if you do not participate in a company plan or if you do but have income below a threshold amount. Alternatively, whether or not you are covered by a company plan, you can contribute to a Roth IRA - while there's no current deduction, income builds up to become tax free.

Caution: Roth IRA contributions are allowed only if overall income for the year does not exceed set limits.

Last minute opportunities for 2006 returns
Even though the tax year for 2006 has closed, the ability to fund retirement plans for tax advantage on 2006 remains open. Assuming you are eligible, you can set up and contribute to a traditional or Roth IRA up to the due date of the 2006 income tax return, which is April 17, 2007 - you do not gain more time if you obtain a filing extension.

SEPs can be set up and funded through the extended due date of your return, so if you have a filing extension until October 15, 2007, you can sign the paperwork for a SEP for 2006 and make deductible contributions to it by this date.

Final word
All retirement plans are based on earned income - from a job or a business. Those who are only casual sellers on eBay do not have earned income from this source and cannot shelter eBay income in a retirement plan.

Similarly, if your eBay business has not been profitable (your expenses exceeded your income for the year), you usually cannot make a retirement plan contribution.

For more details, see IRS Publication 560, Retirement Plans for Small Business and IRS Publication 590, Individual Retirement Arrangements: http://www.irs.gov

About the author:

Barbara Weltman is a nationally recognized tax and small business tax expert. Her popular newsletter, "Big Ideas for Small Business ®," is available without charge via http://www.barbaraweltman.com/newsletter. She is the author of "The Complete Idiot's Guide to Starting an eBay Business" and her newest book is "J.K. Lasser's Small Business Taxes 2007: Your Complete Guide to a Better Bottom Line."

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