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Why the Salesperson Needs to Know the Psychology of Sales

2009-05-11T10:37:00.001-10:00

Every single step in the process of a sale is a mental process. The mental attitude and mental impression of the customer; the mental attitude and mental expression of the salesperson; the process of arousing the attention, awakening curiosity or interest, creating desire, satisfying the reason, and moving the will- all these are purely mental processes, and the study of them becomes a branch of the study of psychology.

The display of goods on the counters, shelves, or windows of a store, or in the hands of the salesperson, or the product shown in a banner ad, or a PPC advertisement, must be based upon psychological principles. The argument must not only be logical but must be so arranged and worded as to arouse certain feelings or faculties within the mind of the prospective buyer- this is psychology.

And finally, the closing of the sale, in which the object is to arouse the will of the buyer into final favorable action- this also is psychology. From the first glimpse of the product to the final. closing of the sale, each and every step is a psychological process. A sale is the action and reaction of mind upon mind, according to well established psychological principles and rules. Salesmanship is essentially a psychological science as all must admit who will give to the subject a logical consideration.

Elements of Personality in Sales - Enthusiasm

2009-05-11T10:28:00.000-10:00

Enthusiasm in a salesman is the quality that makes him talk in an intense and earnest way that carries conviction. The enthusiastic salesman spontaneously overflows with self- confidence and belief in the goods and the satisfaction they hold for the customer. Confidence can only be secured by knowledge; knowledge of one's own ability, of the customer, of the goods, and of the selling process.

Enthusiasm based on confidence begets confidence and enthusiasm in the customer. It is contagious. The salesmen with enough confidence in the product and themselves to become enthusiastic, soon bring others to see their point of view. Sincerity, reflected by enthusiasm, is impressive and will command the attention and respect even of customers unable to share in their belief.

Enthusiasm backed by facts is a combination of the spiritual and the material. The latter lacks life without the former, while the former is hollow hypocrisy without the latter. Enthusiasm cannot be faked. Without the background of knowledge and belief it stands forth in all its shallow futility. Counterfeit enthusiasm can never pass for the genuine for it lacks in weight, sound and appearance. Salesmen who attempt to be earnest and eager in their sales talk will fool no one except themselves. Only by intelligent observation, reflection and study can salesmen create a harmonious background for the efficient functioning of enthusiasm.

Not only does enthusiasm stimulate self- respect and enhance the customer's esteem for the salesmen, but it also develops loyalty for the brand and its methods. To be loyal to a sales institution salesmen must have confidence in its integrity and belief in its policies. Enthusiasm developed from knowing the goods will go far towards developing loyalty to the store that sells those goods. Further knowledge regarding the store's history, its aims and ambitions, will generate new enthusiasm which will form the basis for a broader and stronger loyalty.

Perhaps it is not too obvious to note that loyalty to a store can only be based on its honest and square dealing. Truthful advertising, honest representations by salesmen and sympathetic treatment of customer's needs are some of the foundation stones for the building of the loyalty structure. Some firms that deserve it don't get it from all salesmen, but no firm that doesn't deserve it ever, wins it from any salesman.

Elements of Personality in Sales - Enthusiasm

2009-05-11T10:15:00.000-10:00

How To Make Money From Passions

2009-02-08T09:30:00.004-10:00

To make money online many people jump right in before they are properly prepared. You know that to be a rocket scientist, a doctor, a brick layer, a construction worker, an office worker, a teacher there are prerequisites, things you must learn, before you can be successful, you don't just jump right in unprepared.
The same applies to the Internet marketing industry even though there are unsavory people out there who'd have you believe it's a "Walk in the Park" and requires no more than the belief that you can just do it.
And I'll have to admit, it is a walk in the park compared to what you have to put up with in the working world punching a clock being a subordinate to someone who does not have your interests in mind, but there are still rules you have to follow and pitfalls you must avoid to actually make Internet marketing work for you.
Most people will not make a dime online and yet there are others who will make more in one month than most people make in a whole year. Why is that?
My answer begins with the age-old chicken or egg question, "what comes first the chicken or the egg"? Personally I vote for, well never mind, each argument you or I make comes back to the same old conclusion - I have no clue and I don't think many of us do either.
But one thing I do have a clue about and know for sure is that to make money online you must first have Passion for the company products and/or service of any Internet business from which you expect to make money.
Passion in this sense simply means that you've researched and like the company and products or services. It is then that you translate that like (or Passion) into the education, excitement and work that usually accompany Passion.
I will have to say that many online entrepreneurs are so good at what they do that they ignore passion because they can sell anything. But I'm concerned about those of you who are not so knowledgeable at working an online business successfully.
Now, I'm not trying to make anyone believe that Passion is the only thing necessary. Because to be successful you must also have a good website, good marketing, widespread advertising, company support, effective keywords, and etc. Those things are often learned from the company you join - but sidestep Passion and you reduce your chances for success dramatically.
It therefore follows that, if you have no Passion for the company and the products and services provided by that company, again, you won't attempt to do the work you are being taught.
Internet marketing work is typically not all that difficult or time consuming but it does take motivation caused by Passion to get you off and running with a sustained effort so that you won't stumble.
You have a great resource in the Internet search engines to search about the Internet Marketing industry for business opportunities, USE IT!
Your research should uncover a company that you like and have confidence in. It should be solid, founded on great principles, and easy to understand with great products and services that are sell-able for which you can have Passion. If you don't find it move on,You can find the right opportunity containing the attributes identified above.
Comments like, well, that one sounds good and the compensation plan is excellent so I guess I'll start that business - does not sound like a decision based on anything near Passion. And remember when you hear that an Internet "guru" does that, don't be tempted, because as I said earlier they are experienced and can sell just about anything, without being Passionate about the company products and services.
Note: By the way it's your goal to get to the point where you can sell about anything online. That end skill and goal is a worthy one indeed.
Remember, there are other steps you must make before you step into Internet Marketing but if you don't first find the right company products and services to be passionate about, all of those other steps may just cause you a lot of frustration instead of bringing you great success.
Not being Passionate about a company and products and services that has market proof that it will sell is a pitfall you simply must avoid.
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Attracting Customers

2009-01-05T07:11:00.003-10:00

There are always two lines of effort to be used by the salesperson: First, to help the uncertain customer, who doesn't know exactly what is wanted for the desired purpose, and second, to attract the desire, of the passing customer to the thing not thought about before. To be successful, in either of these directions, requires complete knowledge of the goods being sold.

The salesmanship that is shaky about the technical features of the products is going to be very weak about catching or holding the attention of the customer.

Every ambitious salesperson will be a constant and thorough student of the trade publications in his or her line of merchandise. In all lines of business these publications are usually subscribed for by the firm, or they will be subscribed for, as a rule, upon the proper request being made. Every merchant and manager will be glad to have salespeople request to see every issue of the trade papers, for it proves that they are earnest and thoughtful about their work, and desirous of improving their knowledge of the goods they sell and learning more about methods of selling them. If salespeople do not know the names of the various trade publications that they should read, they can get the information from the buyer or from the merchant.

In other words, even if you are just doing affiliate sales from a site like Clickbank, you need to have a knowledge of the products you are selling. You may be asked by a visitor to your site about some feature or even if it is suitable for what the customer wants or needs. If you have no answers, you have lost a sale.

60-Day Trial of Microsoft Office Project

2008-12-02T09:55:00.003-10:00

Microsoft Office Project Professional 2007 helps you stay informed, keep project teams aligned, as well as control project work, schedules, and finances.

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What Your Visitor Sees In Ads

2008-12-02T09:16:00.003-10:00

A two year series of experiments on the psychology of advertising utilizing actual ads and created ads was performed to test:

the initial attention value of text matter as against cuts,
relevancy and irrelevancy of each to the article advertised,
the effects of repetition on each of these four elements,
different colors,
different sizes of type
different parts of the page.

By means of answers to four sets of artificial advertisements, in which each article was presented in six different kinds of advertisements, an effort was made to get at the reasons, which influence buyers in their choices. Any differences in the sexes were kept in view throughout. From the three figures and twenty tables, mostly taken on college juniors and seniors, there resulted the following conclusions:

Attention:

Best gained overall by relevant words or text matter, next by relevant and then irrelevant cuts, and least by irrelevant words.
Through five repetitions, the relevant words increased steadily in value, while the cuts decreased, and the irrelevant words remained on their initially low level.
The female observers were attracted proportionally more than the males by cuts and by irrelevancy.
In colors, males were attracted mostly by black and green, females by red and green.
A progressive increase of attention within the sizes of type from 2 to 5 mm. high.
The left side of the page was seen more than the right.
The horizontal quarter above the middle was overall more effective than the other quarters, with the bottom quarter decidedly least valuable.

Only about half our informants seemed to be influenced consciously by advertising, the females somewhat more so than the males. However, a considerable amount of advertising acts upon people below the threshold of their conscious attention and memories.

The reasons given for choosing one advertisement over others as the place from which to buy were:

Decidedly foremost from the age or reliability of the firm; then from cheapness, statement of qualities, with statement of prices and style least effective.
For last choice cheapness was by far the main reason, either directly or under the brand of “fake” while an unanalyzable distrust and suspicion from too great claims or details was next operative.

Creating a New Want

2008-11-04T12:14:00.002-10:00

Advertising may be defined as the art of creating a New Want, for successful advertising does not stop with publishing the claims that are made for a product. The advertising must not only tell the possible consumer all about the product, but must create in his mind a desire to possess it-in fact, I am willing to go far enough to affirm that advertising which does not create a New Want in many minds is not good advertising.

It is not enough to tell an automobile enthusiast of the good, strong mechanical points in a particular machine. The advertising should not stop with giving information to those who are already interested in automobiles; it should create "automobile enthusiasm."

In other words, it should imbue the mind of the reader with a longing to participate in the pleasures and delights of driving that particular car, for if the sale of the particular machine which is being put upon the market is to be limited to those who are already enamored of it, the possibilities of the industry would not justify a very heavy or extended expenditure for publicity.

Take the safety razor as an illustration. There are now many safety razors on the market, but the man who made the first safety razor and ventured to put it on the market had to spend a lot of money creating a New Waat in the minds of men. He had to talk to that portion of the race which grows, a beard on its face and which was anxious to escape the tiresome thralldom of the barber shop.

He had to appeal to the universaI desire of man to escape the enslavement of the imperial tonsoral fiend who, with reckless disregard for his time and patience, makes him fritter away precious momemts, even hours, in his shop awaiting his turn.

In other words, the maker of the first safety razor had to lay the foundations for all future business with an educational campaign. At mch expense and through the tribulation of possible loss he blazed the way for the manufacturers of safety razors yet unborn. It was his lot to convince mankind that they could emancipate themselves from the despotism of the barber shop.

It was his mission to point out the avenue of escape. It was his task to convince bewhiskered humanity that the safety razor was a practical thihg; that it was a time-saver, a money-saver, a blessing to tender faces and that it was possible for the man who could not shave himself with the old-fashioned razor to scrape his face quickly and smoothly with this new device.

Thousands of other examples might be adduced to illustrate the fact that modern advertising must seek to create a New Want, and the man who knows best how to do this through the medium of the English language is the successful advertiser of today. So go out there and create a New Want for your product.

THE CREATIVE POWER OF ADVERTISING

2008-10-31T10:26:00.004-10:00

B EFORE advertising was developed into a fine art, and before it became a factor in the commercial world, the business of the manufacturer and merchant was to supply the normal needs and desires of the human family. Merchandising was bounded by man's necessities and by his meager knowledge of the luxuries which he deemed within his reach.

Modern advertising has made the luxuries of yesterday the necessities of to-day. It is something more than a "drummer" knocking at the door of the consumer--something more than mere salesmanship-on-paper. It is a positive creative force in business. It builds factories, skyscrapers and railroads. It makes two blades of grass grow in the business world where only one grew before. It multiplies human wants and intensifies human desires.

Advertising is not merely a method of diverting trade away from the merchant or manufacturer who does not advertise. Its function is not merely to pull business away from unprogressive competitors. It has "news" value as well as psychological power. It not only supplies regular information at stated periods concerning the best and most economical methods of supplying the needs of a normal 'and comfortable existence, but, operating through well-established psychological laws upon the human mind, it gradually implants in multiplied mentalities the idea that certain things are needed which were never before regarded as necessary to human contentment or happiness.

It enlarges and expands the horizon of man's daily life and experience by bringing to his attention new commodities designed for his comfort and convenience without which he would have been perfectly happy in his ignorance; but, having learned of their existence, he cannot find it in his heart to be happy or contented until he possesses them. It is the constant reiteration of the so-called "selling arguments" in connection with a product that convinces and finally impels the reader to purchase. The constant dropping of the water of publicity gradually wears away the stone of indifference. The human mind is so constructed that it is appreciably affected by repetition-and, after all, advertising is only repetition.

The Power Of Suggestion In Sales

2008-09-29T12:11:00.003-10:00

The strength of a suggestion depends in part on the degree to which it appears to be our own - to be of spontaneous, internal origin. A particular theatrical manager and producer, it is said, is particularly successful in handling obstinate employees. It is said further that he is accustomed, on broaching a proposition to which he does not expect the other person to assent readily, to remark, "It seems to me it would be well to do as you suggested the other day and . . .” The method is peculiarly effective although the manipulated person does not remember ever having any such suggestion. It is enough that the plan seems to be his own or is stated by another to be so. So in advertising, arrogance, domination, should not be attempted. It is at once resented and resisted. The more indirect the suggestion, the more it can be made to be an original determination or plan or conclusion on the part of the reader, the more its dynamic power
Suggestion Must Accord with Regular Habits and Instincts
The dynamic power of a suggestion will be the greater the more forcefully and vigorously the association is presented. This law is especially true when the suggestion is in line with pre-established habits and tendencies. When the suggestion violates life-long habits and instincts, attempts to be forceful and vigorous usually lapse into arrogance and thereby defeat their own purpose. The following head-lines on the one hand conform to, and on the other hand violate this law:
A forceful suggestion –
I WANT YOU TO CHOOSE BETWEEN THESE TWO SHAPES
A weak suggestion –
HERE ARE TWO SHAPES, TAKE YOUR CHOICE
Positive, Not Negative
It is more effective to suggest the desired response directly than it is to argue against a response that is not desired. Thus it is more effective to say to a child, "Put the potato peelings in the garbage pail." than it is to say, "Do not put the peelings in the sink." The positive feature of the association is always the most effective. In the one case the positive association is "peelings"-"pail." In the other case it is "peelings "-"sink." The negative suggestion always tends to defeat its own purpose. The attempt to dissuade from the use of substitutes is the classical illustration of the futile negative suggestion.
The customer should be asked, "Does the shoe feel comfortable?" not "Does the shoe pinch?" The cadet should be told "Stand erect with feet together" not "don't slouch". Passengers should be told “get off this way" rather than shown how not to get off. Thus a customer at your website should see “Buy my product” and not “Don’t buy their product”.

Take this with you as you approach people trying to get them to join your team or purchase your product. Lead people through the power of suggestion to believe they have come to the conclusion all on their own and make it positive not negative.

Some Links

2008-09-26T10:38:00.002-10:00

SECURING RE-ORDERS FROM A CUSTOMERLIST

2008-09-05T13:28:00.002-10:00

I came across this article in a book from 1914. So if you think that using lists is something new that these "gurus" have created since the internet came about, think again. Read this for some good tidbits on using your list. Just update the thinking to today's world of the internet. One of the key points I took away from this is that you need to keep track of more than just email addresses with your customers.

By J. Harry Selz President, Selz, Schwab and Company

AVERAGE clerks or department heads are inclined to regard the cabinet of names called the "house list" solely as a piece of modern ingenuity for the expansion of business. While this is showing the proper spirit of push and progress, it is a mistake to think that so valuable a tool as a "house list" can be put to only one use. The cabinet of cards containing the names of the current, former and prospective customers, is one of the most flexible pieces of filing mechanism ever devised, and the active head of any large merchandising house can well spend hours in its company.

Suppose it possible for him to assemble in one great •hall all the men at the moment carrying live accounts with him and all who had traded with him in the past. That privilege would instantly arouse his enthusiasm. But where this list runs ten to twenty thousand individuals and firms, the assemblage would be somewhat unwieldy, so far as actual results are concerned. There might be much poise and good feeling, but small opportunity for the wholesaler to learn definite and directly helpful things about his trade.

But what are his privileges with the "house list" in the card catalog drawer? With it he can assemble his whole trade and quickly interview each customer. And customers, thus approached, consume no time in comments on the weather. These cards will tell him the fluctuations of each customer's trade, from month to month and year to year.

In these quiet card conventions with his buyers the merchant learns how much may be done with a right business system, besides adding more customers to his list. The word expansion has been as popular in business as in politics. There is something else to be done in the course of sound business progress besides expanding. To solidify your business structure is quite as essential as to expand it.

This fact is enforced with emphasis by an intelligent study of any system that really puts before the eye of the executive a complete picture of his relations with each customer on his list. There is nothing in which you can better invest two or three days' time, at intervals of three or six months, than in a direct personal study of these cards. Handle them with your own hands, read them with your own eyes and make your deductions and conclusions from your personal contact with the list.

WHEN you go through the customer list

get in mind a way to strengthen weak purchasers

and a plan for enlarging small accounts with frequent re-orders.

But what should you have in mind as you go through the "cabinet," turn one card after another and scan each customer's relations with the house? Two things: First, how to develop weak customers into sound ones; second, how to build small accounts into larger ones without increasing the tension of credit. In my opinion the first object to be held in view is quite as important as the second. It is more vital to have a trade that is absolutely sound and closely knit than to have a big trade full of weak spots that are causing work and worry. Enough weak accounts will strain the credit of the best wholesaler and will absorb more time and high-priced energy than they are worth — ten times over ! A glance at each card tells you how much your customer bought last month, how much the corresponding month of the previous year; how he has made his payments; and the whole character of his transactions.

After picking out the weak points which need to be fortified, the shrewd manager will carefully formulate the general lines of a campaign directed wholly to making stronger the customers he already has, without regard to getting new ones.

This must be done in a thoroughly systematic manner to be effective. In fact, it would be wholly impossible to make even the preliminary investigation necessary to such a campaign without having in operation a modern system, which, at least to a degree, is analytical in its operation. In this sort of campaign it should be remembered that the object is not to load your customers up with a larger line of goods, but to make them so strong that they will need more goods and can take them with less credit than under existing conditions.

Tools you may not think of

2008-09-03T08:11:00.002-10:00

There are a number of tools out there that people bypass because of the stigma that has been attached to them.

Take the opt in mailout business. You sign up and you get to mail to the list. Of course in return you are being flooded with emails. The thing to keep in mind is that almost everyone on that list is trying to sell you a product in the "get rich" genre. This means that they will do like you; tune out the emails. You can only see the "make a gabillion bucks in 9 seconds" type headlines a few times before you just say "blah blah blah". And if you are doing it, so is everybody else.

BUT what if you go in with something else? I have gone in with my Salad book This throws them for a loop and they actually go look at it and amazingly a number will buy it. Afterall, everyone needs to eat.

On top of that, you need to make the subject something that catches the eye and is different. I talk about that in detail in "Psychology Of Advertising". Have you ever tried an email subject of 1 word? You will be shocked when you get a better response from a 1 word headline than from a longer one. Some of those gurus are starting to catch on to the "less is more" mindset. I have recently gotten emails with just my first name in the subject. Nothing more. But I then look at who is sending it and trash it.

So what word do you use? Something to grab the eyes and pique the curiosity. I did one that said "Toilet" in the subject. My open rate went to 50% on a 2 million person email blast where I had rarely gotten more than 1 or 2% before. Of course then you have to somehow tie the subject into the sales pitch.

This is how you use the email blasters and such. You have to sell something different and you have to get their attention. There are other things you can do like give something away just to get them to your site but the day of the squeeze page is long gone.

Finally I will leave you with a couple of the opt-in list sites that I've had fairly good reactions from.

Herculist Has a free option that is okay. But their Pro and Gold are not that expensive. I've had moderate success with this list but the flood of emails back is higher than most. That is probably a good thing because it means emails are FLYING out from them. I worry when one of these sites only gets me 1 or 2 emails a week. Have to wonder about those.

Web Traffic Marketing is fairly inexpensive. A 1 time fee allows you to blast to an outrageous number of people. Once again, they are all trying to sell YOU get rich quick products. Hit them with something different. If you have a tracker link or something you can use it on this one. Prepare to be disappointed if you try selling the same old garbage on this one. You can get no response at all from about 3 million members. You have to do something different.

Now how does this help your website? It gets traffic there. Not the best traffic but they are looking anyway. Hopefully they will at least click on your AdSense ads.

Keyword Research

2008-09-01T16:28:00.002-10:00

A lot of emphasis is put on keyword research and finding that little niche that you can occupy and be profitable. However, that isn't the end all and be all for marketing which so many try to convince you it is.

First you have to find a product that can sell and then you go find the best keywords or phrases that will bring in people looking to buy what you have without competing against the "big boys". Pretty foolish to try and out rank big companies like Microsoft, IBM, Amazon and so on. So you need to find how to get traffic from them whether it is PPC or organic.

One way is the old fashioned way of trial and error. Just take a guess at what you think will work and then go for it and see what happens. But here is another idea. How about looking at what other people are doing in the same general niche and then copying their campaigns?

Sound unethical? Not by a long shot. Why reinvent the wheel? If somebody is selling widgets using specific keywords and they are paying $x.xx per click, then why not use their ads, their keywords, and up the ante on the bid to bring people to your site? Do NOT copy their site tho. Well, there is an instance where you basically are doing that. When you are selling affiliate products and sending the customers straight to the product page. Then you will have copied the entire campaign. But this stuff happens all the time. Look at the emails you get whenever there is a "launch" of a "new killer .. gonna blow the internet marketing world wide open" product. I get 4 or 5 emails that are EXACTLY the same. From those "gurus". Still think they are smarter than you?

I can get into that more in another post but for right now I will stick with the subject of finding good keywords for your product.

What I used to have to do was actually use Google AdWords and a number of other sites to find a good idea of what might be good keywords. Then I would search on those and find the top PPC ads and copy them down. Top 10 usually. Then I would come back in a week and see if they were still there. If they are still there, then they are probably making money. Either that or the person is a fool.

This took a LONG time to find good keywords.

Now, I can spy on other people and see what they are doing. Even the big boys. How?

With Keyword Spy you can do this. If you are just trying to launch one product, use the free version. For serious marketers, you have to get the full version to find those gems in the rough. This gives you the edge on those other affiliates especially where ClickBank is concerned.

30 Day Challenge In Hindsight

2008-09-01T08:20:00.003-10:00

Have you heard of the 30 Day Challenge? If not, it is a training session that is free that walks you through making money on the internet. Or so they claim. I faithfully went along with them on their journey this year and found that it is not toooo bad for a rank beginner or if you are looking at finding some new tools to use.

One tool they relied on is Word Press Direct. This is supposed to be a Search Engine Optimized blog. Now even tho it has some problems, if you know how to edit the templates you can make it work very well. The good thing about it is the auto posting where it pulls content from different sources to put on your blog. You choose. As is the case everywhere, templates may not be very good and so you either have to fix them yourself or go get one that works. This is a problem with the whole CSS world of templates. They break very easily. Also AdSense does not work on WPD for some reason. It displays ads but I never saw the impressions in my account at Google.

Now one thing about blogs, if you want to get the attention of Google, maybe using Google's blog (this one) would be the better choice. I think I will do a test and put my TDC blog onto Blogger and see what happens. In the meantime if you want to see my TDC blog it is http://salads.brighterplanet.org

Probably the most vexing thing about TDC (Thirty Day Challenge) is their insistance of no links except to some stupid social thingy. Okay, I can see wanting to limit affiliate links but they go overboard. Do like a lot of discussion boards are doing, put one board for people to post affiliate links to their heart's content. Put a time limit on how often they can post so they don't go crazy. Like once a day or week.

But here are a whole bunch of people trying to follow along and you can't put up a link to your project so others can see it and critique it (in a constructive way). To me, part of market research is testing your advertising etc BEFORE going big time with it. Having built websites and been involved in marketing them for a very long time, we ALWAYS had people come in and test the sites and make comments and critiques. These people were a mix of potential customers and just surfers. So by limiting people in the TDC to doing it on their own, there is a fantastic chance of failure.

Okay, enough for this post. I'll go into things the TDC people failed to talk about in my next post.

Tips to Reduce Your 2006 Income Taxes in 2007!By Scott Sherrill

2007-02-24T08:14:00.000-10:00

Income taxes are a substantial burden for business owners and real estate investors. There are few actions which can reduce your 2006 taxes after December 31, 2006. This article summarizes four options for reducing your 2006 federal income taxes during 2007. These include reducing revenue, increasing real estate depreciation, increasing expenses by conducting a fixed asset audit and increasing expenses by converting capital expenditures into operating expenses.

The basic process for calculating income taxes is simple:

Revenue - expenses = net income, or taxable income,

Taxable income x tax rate = income taxes

The formula is not quite as simple as stated above. The tax rate for most taxpayers steps up as their income increases. Hence, the calculation of income taxes is usually taken from a tax table. However, the above concept is correct.

Two options for reducing income taxes are to reduce revenues or increase expenses. It is not possible to change the tax rate except through congressional action. It may be possible to reduce revenue for taxpayers on an accrual accounting system. Taxpayers may be able to increase expenses by increasing real estate depreciation, personal property depreciation or operating expenses.

Accrual accounting recognizes revenue when it is earned. For example, revenue for a project completed in December would be recognized in December even though payment was not expected until January. Cash basis accounting recognizes revenue when payment is received. Accrual basis taxpayers can review revenue which has been booked but not yet received. In some cases, it may be appropriate to increase the allowance for bad debt. There is little cash basis taxpayers can do to reduce revenue (after the end of the year).

Most real estate owners can sharply increase depreciation by obtaining a cost segregation study. Cost segregation is a more accurate method of calculating depreciation than simply separating land and long-life property. The IRS has developed detailed guidelines for correctly prepareing a cost segregation study. Real estate depreciation schedules are typically established by simply separating land and long-life property. Long-life property is depreciated over 27.5 years for rental residential property and 39 years for commercial property. Cost segregation can usually increase depreciation by 50% to 100% during the first five to seven years of ownership by allocating a portion of the cost basis to 5, 7 and 15 year property. Short-life property includes items such as carpet, vinyl tile, some signs, sidewalks, landscaping and paving. In addition, real estate owners can "catch-up" depreciation under reported in prior years without filing amended tax returns.

Fixed asset audits can be a cost effective means to increase operating expenses by removing phantom assets, removing operating expenses mistakenly coded as capital expenditures and correcting the depreciable life for incorrectly coded items. Phantom assets can include assets which have been lost, stolen or disposed of without removing them from the accounting records. The undepreciated basis of these assets can be converted to an operating expense after the error is discovered. In some cases, substantial operating expenses are incorrectly added to the fixed asset listing as capital expenditures. This could include items such as substantial roof repair or parking lot repair. Another example is extensive repairs to a massive chilled water cooling system; are these repairs or a capital improvement? Accounting professionals could vehemently argue both points of view. The undepreciated basis of these items can be converted to an operating expense and written off when the error is discovered. The fixed asset listing is massive for many companies, sometimes exceeding 1,000 pages. With so many assets, it is difficult to ensure all are accurate. For items added with an incorrect and excessive depreciable life, it is possible to revise the asset life and "catch-up" depreciation under reported in prior years without filing an amended tax return. Instead, a form 3115 is filed with the tax return.

The difference between capital expenditures and operating expenses is often subjective. Are substantial roof repairs a capital expense or an operating expense? Reviewing disbursements which were listed as capital expenditures in 2006 may uncover items which can be converted to operating expenses.

Federal income taxes are a substantial expense for successful businesses. However, since it is difficult to profitably operate a business, it is worth reviewing legitimate options to keep more of what you have earned. Tax planning is less glamorous than purchasing a new company or developing a new division. However, a modest effort focused on reducing federal income taxes can sharply increase net income.

Patrick O’Connor, MAI is president of O’Connor & Associates, a 180-person real estate services firm in business since 1974. Further information on reducing income taxes is available at: http://www.poconnor.com/federal_tax_reduction_overview.asp. O’Connor can be reached at 713 686 9955 or poconnor@poconnor.com.

Patrick O’Connor, MAI is president of O’Connor & Associates, a 180-person real estate services firm in business since 1974. He can be reached at 713 686 9955 or poconnor@poconnor.com.

Article Source: http://EzineArticles.com/?expert=Scott_Sherrill

THE PURPOSE OF AN AD CAMPAIGN

2007-01-01T17:28:00.000-10:00

Establishing Reputation

Advertising is not always required for the purpose of increasing the sales of a product, although that must be the final effect of the advertising if it does its work. It frequently happens that business organizations at various times in their careers need advertising for the extension of values along more general lines in connection with the organization and its market. Sometimes it is necessary to forestall difficulty by establishing relations of confidence with the public, not merely in connection with the product but in connection with the organization itself. It is frequently necessary to find other uses for a product and impress them upon the consumer.

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In the last 15 years of rapidly increasing activity along the internet lines, many concerns which have started and gained a considerable amount of business have been obligated to set themselves at work to devise advertising for the purpose of establishing an organization reputation. This has been particularly the case with organizations making a number of products, where the sale of the one product cannot altogether carry the sale of another product, but where an established organization's reputation can increase the sale of both. It is obvious that the plan of action will materially differ if this is to be the central idea. Every piece of copy and every piece of printed matter must be selected physically with the same idea so that type, border, illustration, the text of articles in the magazine, internet, or publication, and the whole atmosphere of the campaign will intensify the suggestion contained in the copy.

Extending Organization Values

Allied to this matter of establishing reputation is that of extending the value of the organization by suggesting not so much its repute but the individual character of its actions. This point of view has been necessary in a number of cases where it is difficult for the consumer to be able to determine from the appearance or general survey of a product, the value which it will possess for his purpose, and where consequently the discrimination is not exercised except in a negative way.

There are many products which to all appearances may be made to look equally good with a 50 per cent difference in cost. In such cases the only hope of the serious manufacturer is to extend his organization value to the public by showing the care that is taken in giving to the public a product which will fulfill the purposes required of it ant1 possess a value equal to the price which is asked for it. The plan which requires this point of view will not be effective particularly as to media, but it will be thoroughly effective as to copy and illustration.

Look at the clothing and accessories industry. Put a name brand on the same pair of pants and the price asked will skyrocket. This comes from convincing the consumer that the brand is worth more than other brands based on reputation and image set forth in advertising copy. Thus when you do your research into the niche market you are going for, you should have sufficient reason to ask a higher amount, if, in fact, you are setting a higher price. Much of that will be in selling your organization, which could just be you, as a superior producer of the product.

The Way Advertising Is Used

2006-11-30T08:25:00.000-10:00

Advertising is in reality the machine, or bulk, method of selling. It takes a large portion of the public and, directing them to matters of fundamental interest, turns these matters to the advantage of the product and firm involved. It is the mass action of selling, selling to the group, handling the sales question wholesale.

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It is used, therefore, either to supplant the personal selling force, to supplement it, or act upon it. In some cases the printed method of selling in bulk is the only method used. This is the method employed by the many internet companies, which secures its business by Pay-Per-Click advertising and through search engine optimization. In this case the personal selling force is eliminated, and the whole proposition is put up to the customer, his approval secured and his order placed without the personal representative of the seller having been called in at all.

In this case, the advertising is used by directing the consumer to the product in question, and instituting discrimination among the consumers in favor of the product being sold or their acceptance of its quality and reliability.

Advertising as a Control

That part of any business organization which comes in contact with the public is the one upon which the good-will of the business depends, and the one which can be controlled only with the greatest difficulty. The work of the agent or representative can be controlled only to a very minor degree, as his time is spent where there is no check upon his actual methods of doing business. He may exaggerate, change his arguments, guarantee and do other things not consistent with the house policy, and so long as these matters do not assume vital importance, may be allowed to continue.

Theoretically the principal is responsible for all the acts of his subordinates in business, but there are a great many small minded men, and the individual methods of each of these representatives cannot effectively be held to the policy which the principal desires. Advertising aids the central control upon the conditions of sale and does this very definitely. It takes the claims, the advantages, and factors of service, puts them into the most carefully worded phrases, and, by printing them gives them a definite .character and record, which may be quoted against the concern in question at any time.

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The statement of the salesman is no longer the only statement of the house; another statement is found in the printed messenger of the organization. This statement, moreover, is authoritative because it is printed, definite, and limited. A measure of comparison is set up by this printed message by which the statements of the representative and the character of the service can be equally measured. This measure of comparison acts as a control upon the condition of sale in all its phases by fixing the estimate placed by the principal upon the services of his product, and consequently obliging all other conditions to come to this.

A Good Title Is A Work Of Genius

2006-11-23T15:48:00.000-10:00

=============================

A Good Title Is A Work of Genius

By Yanik Silver
http://surefiremarketing.com/?46532
=============================

That's what Emanuel Haldeman-Julius said about changing the title of a book to increase sales. And he should know, he's the guy who single-handedly sold more than 100,000,000 "little blue books" during the first part of the 20th century (Yes, I said 100 million copies).

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His book entitled "The First Hundred Million" gives a rare glimpse into how to use certain tested title words to increase your sales. In fact, his book is one of the most scientific studies of what a title change can do for your sales.

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The most remarkable thing is that Haldeman-Julius simply advertised his books by title alone. There was no selling copy, only the title of the book. That's it.

So before you decide on any haphazard title for your next ebook, manual, ezine article or free report, you might want to take advice from this savvy marketer.

Haldeman-Julius had a policy in his business - if a title didn't sell over 10,000 copies a year it was sent to a place in his office called "The Hospital". Inside the Hospital he went to work coming up with a new title for the poorly selling book and re-releasing it. If the revised title didn't sell, the book went into the 'morgue".

He tells about a book originally being titled "The Art of Controversy" which never really sold until it was changed to "How to Argue Logically" and then it leapt up to 30,000 copies. The amazing thing is that nothing else was changed inside the book, just the title.

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And from this "in the trenches" research, Haldeman-Julius discovered certain title words that could increase the sales of almost any book when applied. For instance the words "The Truth About" increased sales for one book starting its publishing life as "Patent Medicine". This book by Dr. Arthur Cramp only sold 3,000 copies in 1925 but when the title was changed to "The Truth About Patent Medicine" it rose up to a respectable 10,000 copies.

Therefore the words "The Truth About" are magical.

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Next, he found the words "Life" and "Love" to work well. Followed by the worn, but still very powerful phrase "How To". Books with "How To" in the title were almost always placed at the top of his sales list. Take for example, the title "How to Psycho-Analyze Yourself" sold 43,000 copies while a similar title "Psycho-Analysis Explained" sold 5,000 less copies. And the title "How I Psycho-Analyzed Myself" managed to attract only 13,500 buyers.

What's more, Haldeman-Julius discovered the public was (and still is) clamoring for facts. So the words "The Facts You Should Know" proved a big winner.

So how can you apply this information?

Easy! The way you should use this wisdom from the ages is by applying it to titles, ebooks, ezine articles, free reports and your headlines. For instance, if I was a cosmetic surgeon I'd give out free ebooks like this: "The Facts You Should Know About Liposuction" or "The Truth About Laser Hair Removal" or "How To Erase The Years With Laser Resurfacing". Each of these could almost be a headline by themselves. That's what you want to strive for because that's what people want!

=========================================
Yanik Silver is recognized as the leading expert on creating automatic, moneymaking websites...and he still doesn't know how to put up a website.

He is the author, co-author or publisher of several best-selling online marketing books and tools, which can be found at http://surefiremarketing.com/?46532/?46532
=========================================

Principles and Practice of Advertising - The Importance Of Association

2006-11-08T08:16:00.000-10:00

Given a knowledge of the target audience with their needs, and given an analysis of the product's specific qualities which may be presented to the consumer as able to satisfy those needs - the next step is the psycho-economic technique of advertising is that of establishing associations, in the thinking and the acting of the consumer, between the need and the product in question.
A common error of advertisements is in assuming that the mere repetition and constant reiteration of the name of the product, company name, or a trade mark will effect a sale by simple brute force. The theory is psychologically wrong. What is desired is not merely that the consumer be familiar with the name of the product. Familiarity may breed contempt. Connection and association, rather than brute impression is what will be effective - connection of such a kind that, given the moment of need, the product name will come to mind before any other product. Not the mere driving of one idea, but the connection of the two ideas, is the task of advertising. The following law should be kept in mind:

The Law Of Contiguity
In general, the best way of establishing mental associations between two things is by presenting them together. Thus "Abraham" at once makes you think "Lincoln" because these two words are so frequently seen together. No matter how familiar you may be with the word "Lincoln", that word will not tend to come to mind when you think "Abraham" unless this association by contiguity has been formed. Similarly, the mere repetition of "Yuban", "Yuban", "Yuban" does not lead you to think "Yuban" when you go to purchase coffee, unless, along with the word "Yuban" the idea "coffee" has also been presented. In advertising, then, the Law of Contiguity means that whenever the name of the product is mentioned it should be accompanied by the idea of the need which the product is to satisfy.

Principles and Practice of Advertising - The Law Of Sequence

2006-11-07T10:11:00.000-10:00

The Law of Contiguity states that one thought will lead to another based on conditioning. Such as "Abraham" and "Lincoln". As a matter of fact two ideas are never present at precisely the same moment; so that "contiguity" really means "rapid succession". One idea being given, the other follows directly in its wake. So in reading advertisements one word of a headline is seen before another, one part of a paragraph follows an earlier part, so that a "train of ideas" is set up. The Law Of Sequence states that mental associations work more easily in one direction than in the other. "Forward associations", that is, associations in the direction in which ideas were originally presented, are stronger, more lively, and more easily recur than backward associations.

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This is especially true of such ideas as take the form of spoken words and other sort of acts that involve motor processes. Thus I have seen the letters in the word "advertising" so often, one immediately after the other, that I can begin with "a", "d", "v" and go on quickly and easily to spell the whole word. But it is a very significant fact that I cannot spell the same word backward. The letter "a" calls up "d" and these two call up "v" etc. But if I begin with "g" and try to reverse the direction of the original sequence I can proceed only with difficulty.

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In advertising this means that ideas should be presented in the order which they will later be desired to take. The first idea in the mind of the prospective purchaser will be the feeling of some particular need - such as "hotel". Effective advertising means that when this need is felt, it leads at once, by virtue of established associations, to the hotel you are advertising. First the need then the product is the sequence in the mind of the buyer. This should be, therefore, the order in which the two ideas are presented in the advertisement, in the brand-name, the trade-mark, etc. Some examples would be :

Hotel Astor
Academy Riverview
Cafe Boulevard
Encyclopedia Britannica

Contrasting with these names are those such as the following, which fail to take advantage of the law and in so doing sacrifice real association and memory value:

Douglas Shoes
Mennen's Talcum
Ridgefield School

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The same law holds for the arrangement of items in the advertisement as a whole. The common practice of beginning the advertisement with the name of the brand or firm or company and following it with a description of the need it satisfies may gratify the personal vanity of the firm, but it does not establish the most effective associations in the mind of the reader. In reading the advertisement the mind should be led in the direction in which it should go on the occasion of need.

Who says 3 seconds?

2006-09-21T10:47:00.000-10:00

In the internet marketing world there is this misconception about how long you have to get a person to make a purchase, and I wonder where it really came from and why nobody has really thought it out.

Let's put on our thinking caps for a minute and figure this one out. Use a brick and mortar mall for an example. People are "surfing" the mall all the time. Thousands of them, maybe millions. But the processes are the same as the internet. There are 4 distinct groups of people running around that mall.

Let's start with the 4th group. The group that has no idea what they want and may not want anything at all. Maybe they are waiting for the movie to start. Maybe they are waiting for the kids or friends. In other words, they are not really doing any serious shopping. They are just surfing. Today, the younger generation does this alot on the internet. I've watched this with my children and their friends. They go to websites just to "check it out". No intent to buy anything. Matter-of-fact, no MONEY to buy anything. My son loves to go to Rolls Royce websites. Like he can afford one.

How long do you have to get one of these people to buy something from you? 3 seconds? 2 seconds? Never? You really don't have much chance of a sale here and should not even bother with them. Sure. 1 or 2 may buy something or even come in and look around a bit but are they really worth your effort? Obviously you have to put SOME effort into them, but they should not be your main focus.

I'm going to jump back to Group 1. These are people who go into the mall knowing exactly what they want and who they want to get it from. These are you loyal customers. You don't have to worry about 3 seconds with them. They are already sold. You can focus on getting them to buy MORE stuff or just on making sure they remain loyal. Buyer incentives and such.

Now comes the Group 2. They probably comprise your largest group of people. They know what they want and are checking everything out. They may not have an exact idea but they know they want say a widget. They look at the directory and see what places carry widgets and go check them out.

These people are where you should be focused. What are they looking at? First thing they see is your entrance. If it is a mess and hard to get around in, they are gone. So a nice neat easy to use entrance is essential. Give them the ability to search on your site (a greeter) to find what they are looking for easily. Do the hardsell on them once you have them inside. Show them what they want but recommend upsells etc. You have more than 3 seconds but also less than 3 seconds to grab these people. If they walk up and see a nasty store front and right next to it is your competitor with a very nice front, you will lose them in less than 3 seconds. But once they are in, then you have time to get their attention and get them sold. As long as everything goes smoothly. If they get inside and find the aisles are too close together, the cash registers are hard to find, nobody to ask for assistance, etc etc they will leave.

Group 3. These may be your 3 second group. But actually they are less than that. They are wandering the mall just window shopping. They have money but no real idea what they want to spend it on. You have to grab their attention quick as they walk by. Now on the internet this is advertisements. Get them to your homepage or a landing page and grab their interest NOW. No 3 seconds, but 1 second. They have to see something they want NOW. They will not go any further into the site unless they see something that grabs their attention.

So really there is no 3 second group. Where did this idea come from? Marketing research? I've done that. While working at a big firm building e-commerce sites for companies the 4 groups above are what we found to hold true. The basic truth of the matter is that you have to have a good site that is easy to navigate and displays what people are looking for right away.

The Little Known Marketing Secret

2006-09-10T17:38:00.000-10:00

By Yanik Silver
http://www.SurefireMarketing.com/?46532
===================================

By now we've all become accustomed to the "bonus pile on" that's almost a required part of any online offer. But even though it's quite common place, never forget that adding extra value to your offer is essential - especially when you're selling information products.

This bonus concept is so important, I have frequently taken something out that I was originally going to put into the product just so I could use it as a bonus. Bonuses really do sell (if you handle them the right way)!

Most people put some lame bonuses in that have been "around the block". A bonus can't just be an afterthought. It's got to be part of your initial offer strategy.

I know a lot of people struggle with bonuses so here's an easy way to develop bonuses with high perceived value. Just look for public domain works you can repackage.

I love public domain bonuses for many reasons. First, they're completely free - you don't have to pay anyone to write them. Second, they're often truly unique - with millions of pages of public domain material available, you're bound to find a "sleeper" on a great topic.

And best of all, they can jazz up just about any old information product. Even a commonplace how-to course can seem extra special when you've added some "vintage gems" as bonuses. Talk about an underutilized marketing secret weapon!

Here are just a few ways to use public domain materials as bonuses...

Software - Believe it or not, many software developers don't copyright their works because they want them to be free for public use! Check out what's available by typing "freeware" in your favorite search engine. Don't forget to clear the rights with the author first.

eBooks - Even if you can't find a public domain work on a related subject, inspirational and motivational topics go with just about anything. There are thousands of public domain works that fit into this category, from words of wisdom to prayer books.

Government publications - US Federal works (and some state) are in the public domain, and they are an absolute gold mine. For example, when I created an anatomy drawing book for artists (also in the public domain material!), a little quick searching revealed government lists to grants for artist. People love free money, making this an awesome bonus with a high perceived value!

Diagrams, patterns, technical spec sheets - While finding these may take a little more digging, they're perfect for marketing to hobbyists, crafters, or collectors. If you're selling a how-to guide to hand quilting, just a couple of vintage quilt patterns will make your audience swoon. Or what about diagrams or specifications for antique car parts or vintage airplanes? Here's one instance where your audience might grab your product simply to get the bonuses!

Drawings and photos - The copyrights on many old illustrations and antique photos have expired - or they were never copyrighted to begin with. Bundle these graphics into themed sets to complement your product. While scanning in old artwork may be a bit time consuming, this is one of those "work once, reap the rewards forever" products.

Finally, here's a bonus for YOU. Remember that the more unique your public domain bonus is, the more likely you can package or even sell it in its own right! Sometimes something as simple as changing a title can give your bonus even more perceived value.

What a great way to breathe new life into those old forgotten works... and pile on value-added bonuses that justify a premium price tag for your product!

(c) Surefire Marketing, Inc.

==========================================================
Yanik Silver is recognized as the leading expert on
creating automatic, moneymaking websites...and he still
doesn't know how to put up a website.

He is the author, co-author or creator of several best-
selling online marketing books and tools, including his
definitive guide for finding and profiting from public domain:
http://www.PublicDomainRiches.com/?46532
==========================================================

Drowning in Debt? Learn to Swim!

2006-08-19T10:22:00.000-10:00

How many of us have run into that problem? Our bills each month are killing tree after tree because we have little or big loans out there all over the place. We've all been there at one time or another, but I am no longer there. Want to no why I have no outstanding loans? First off it takes some self control. Many of us lack that key ingredient. One of the first rules I started living by was to wait a week before buying something on credit. If I still wanted it, then I would do a week of research looking for the best bargain. If I STILL wanted it, then I would go out and take a week talking to vendors seeing if I could talk them down on the price or whatever. This meant that I was doing away with compulsive buying.

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But what about all those pesky credit card bills and small loans for furniture and such things? Some of those have 18% and higher interest. How do I get rid of all that? Debt consolidation. That is not the whole solution, but that gives you one bill instead of many bills. And hopefully you can get a lower overall interest rate so you save money in the long run.

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Debt consolidation can be from a number of unsecured loans into another unsecured loan or, more often, it is a secured loan against an asset that serves as collateral, most commonly a house or other property; in other words, a mortage. The collateralization of the loan allows a lower interest rate, because by collateralizing, the asset owner agrees to allow the foreclosure (forced sale) of the asset in order to pay back the loan. The risk to the lender is reduced so the interest rate offered is lower.

Bad credit? No credit? You can still get a debt consolidation loan.

Debt consolidation is theoretically best when paying credit card debt. Credit cards usually have a much higher interest rate than even an unsecured loan from a bank. A secured loan will lower these rates dramatically, then the total interest and the total cash flow paid towards the debt is lower allowing the debt to be paid off sooner, incurring less interest. In reality, most peoples' credit card debt trouble is there because they spend more than their income. If that habit continues, the consolidation will not benefit them much because they will simply run up the balance again. Is that YOU?

One serious consideration you might have to look at is a second income. There are plenty of opportunities out there even if it is working at the local coffee shop. You could try your hand at things like Type At Home or take surveys online.

If you are a property owner with a mortgage, you should consider refinancing your mortage, especially if interest rates have dropped since you first received financing.

A debt consolidation company helps people, individuals or companies, get a grip on their finances by managing their payments and debt. They provide a modicum of relief from heavy interest that build up over the years. If you secure the services of a debt consolidation company, create a list of what you want them to do for you. Most important is they should do is provide you with a dedicated debt counselor who will go over all your debt records. See if You can Reduce Your Debt Payments up to 50% or more with a Free Financial Evaluation!

Once you have your debt payment down to a manageable level, how do you keep it there? Some people advice you to destroy your credit cards (that is what I did) and that may be the best thing you can do for yourself if you have a serious lack of self-control. The better solution is to leave them at home or in a safe place such as a safety deposit box until you need them. Keep one with you for emergencies only.

The real secret to managing your debt and becoming debt free? Self-control. Make a budget, stick to it, and stop impulse buying. Live within your means not above them. Everyone knows these things but so few practice them. Take it from me, it works.

The Scam Client

2006-08-14T12:39:00.000-10:00

One thing that is sometimes hard to spot is the person who is advertising for a freelancer but is not really on the up and up. There are a few tips to which ones these might be and I'll cover a few of those here.

1 - The person on a freelance website that says they will not pay for the work but give you a good referral instead. Forget it. This person will take a job that will supposedly only take 5 minutes and milk it for as many hours as you will tolerate before quitting. And you get nothing in return except a "good" review. I watched one guy do this and then not even give out top reviews. He would complain about poor communications or not finishing the project etc.

Get more for your 2 cents

2 - Always check on the previous programmer/designer or whatever because a sure sign that the client is not to be trusted is a lot of previous freelancers working on the site. One of the things I usually do is ask to speak to the previoius programmer. If it illicits a response of "oh he just took off and I don't know where he is" but the site is 90% programmed, warning bells start going off. Or if the programmers did as they are supposed to do and left a log of what work was done on the site and you see quite a few over a short period of time (2 or 3 in a year or 2) and the client compains that they just weren't trustworthy or whatever, take a hard look at the situation.

He may be a jerk but he IS rich

3 - One that I love is the person who advertises saying "I am a programmer so I know how long this will take ...." and then says the job will take an experienced programmer only 1/2 hour to do. Well this one should clue you in that s/he is NOT a programmer and is trying to scam you into a low price. First, if they are good enough to know that it will take "x" number of hours to do it, then they won't tell you. They will wait and see what you come up with and decide if you are trying to inflate the hours. If they say some silly number like "5 minutes" then they are really clueless. IF they really were a programmer and IF the job was really going to take less than an hour, then it would have been faster for them to do it than to go to a website and write an ad and then screen the responses. They DON'T know what they are doing and are trying to intimidate you into a low price. These types will run up the time and if you try and raise the price they will keep on with "I KNOW how long it should have taken and you are OBVIOUSLY not as good as you said you are .... " Putting the blame on you so they can refuse to pay more.

I never told anybody this secret before

4 - The ultra clueless person. Seriously, I have received emails asking if I will clone E-Bay or PayPal or Amazon for $100 or less. Keeping it professional I decline these jobs. Inside I'm saying "are you smoking dope?" This is how I screen a lot of potential jobs. Look at the scope of the job and the top pay they are willing to give you. If it is a LOT of work for little money, then they obviously want to be working with offshore companies that charge $1/hr.

How to protect yourself? First, recognize the situations for what they are. Second of all, always have a contract, and 3rd, if in doubt at all, insist on an escrow account. BUT get that 50% upfront.