Two of the top Professional Bloggers have finally written a book

If there are two names who are synonymous with making money on the Internet and making money blogging, those two names are: Darren Rowse (Problogger.net) and Chris Garrett (chrisg.com).

These two guys are the top of the game and are the premier leaders on the Web. They have collaborated and produced a book that should be on everybody’s reading list who wants to learn:

• How to make money on the Internet
• How you can make money from a blog
• How to earn a substantial income to replace your 9 – 5 job

The product description notes the following topics are covered in this book:

• How Bloggers Make Money
• Direct Income Earning vs. Indirect Income Earning methods
• Why Niches are Important
• Using 20 critical blogging tools
• 20 Ingredients for a successful blog post
• Optimizing advertising
• Which advertising platforms work best
• Expert analysis of Technocrat’s Top Blogs - why they work

I’ve been looking at spending more time on the study of topics for making money online. There are several obvious first starts, but as I study more and more, I am find a lot more ways to make money online. There are a long list of advertisers and affiliate programs and I intend to learn, assess, and test the different programs to help you, the reader of this site, and me as I seek to monetize my websites and blogs.

Widgetbucks

Recently, I discovered Widgetbucks and am initially impressed with this new site. Widgetbucks offers two ways to make money online:

1) through an ad unit like this:

WidgetBucks - Trend Watch - WidgetBucks.com

2) and through a referral program through links like this one:

Make Money with WidgetBucks

There are several good points about the ad units and only a couple of drawbacks.

What is good

• You can display the ad unit along with AdSense (allowing multiple ad units on a page).
• They do not restrict the number of ad units you can display on a page, but reason dictates that the site should still be usable. You should only display what fits in with the content of your site.
• The ad units work great for sites about products, because most of the ad units are lists of products.
• The Ad units are animation items, so it presents a slightly better look to the website (you can also customize the color to match your site).
• I’ve heard that the units get good click through rates (CTR), but it is too new on any of my sites. (The site advertises $2-$6 per CPM (thousand impressions).
• It is quick and simple to setup.
• The site pays through Paypal.
• You earn 10% of any referrals earnings for up to the referrals first 12 months.
• Right now, you can get a $25 bonus when you signup.
• The site pays out monthly with a minimum of only $50.

If anyone is using Widgetbucks, I would be interested in learn how you are doing. Submit a comment below.

You can sign up for Wigetbucks here:

Make Money with WidgetBucks

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Make Money Online with Google AdSense

By far, the easiest way to make money online is with Google’s affiliate program – Adsense. There have been wide spread speculation that some publishers earn as much as five figures every month! There is room for growth, but there is also the potential as some have reported earning merely a few dollars every month.

To maximize your Adsense earning, check out these two books:

1) The AdSense Code: What Google Never Told You About Making Money with AdSense

2) Google Advertising Tools: Cashing in with AdSense, AdWords, and the Google APIs

Both of these books are popular and I have read both. The AdSense Code covers the broad strategies of making money online with Google AdSense. Google Advertising tools covers the technical details of using AdSense and includes the added benefits of covering AdWords and Search Engine Optimization.

• If you are web publisher and you would like to quickly and easily start making money online:

• If you want to improve your earnings with AdSense or you want to start using AdSense at the programs potential, pick up both of these books:
  

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Special Report Series: the Philosophy of Making Money

This is the final entry that I am going to write for series on the philosophy of making money.  For all the other articles, please see: 6 Myths of Making Money – Special Report: the Philosophy of Making Money, 7 Points and 2 Categories of the Philosophy of Making Money, and The 7 Steps of How to Make More Money.

There is a simple formula to follow that is the most powerful formula for creating wealth.

The best formula for making money and creating wealth:

Creating Wealth = Discovering Scarcity + Solving Scarcity

Scarcity

To understand scarcity is not difficult for it’s not a complicated subject, but rather a very common and understood subject.  The difficulty is that most people don’t know how to use scarcity to create wealth.  Scarcity is concept that there are unlimited wants and needs, but there are limited resources to meet those wants and needs.

Example

There is a lot of discussion of different car manufacturer trying to create a “cheap” car to sell in India.  In India, there are a lot of people who want and need a car, but cannot afford most new car prices.  The scarcity is the lack of cheap cars for people to buy.  Solving the scarcity are what car manufacturers are trying to do by creating a “cheap” car.

How to Use

Scarcity creates opportunity.  When you discover scarcity in the economy, you have found an opportunity to make money and create wealth.  All you need to do is follow that opportunity and solve the problem of scarcity.  I suppose that’s a lot easier said than done, but it really can be that simple.  The only difficulty is finding the solution for scarcity – solving scarcity.  That takes creativity or, better yet, innovation.

Innovation in India

The innovation in the example of “cheap” cars for India is how to create a car that:

1. Consumers will buy.
2. Consumers can afford.
3. Manufacturers can still make money (profit).

To read more about this, click here.

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State of Mind

Psychology plays a role in making money and creating wealth.  Wealth is a state of mind is the concept that I first read about in Robert Allen’s Creating Wealth, published in 1983.

Nine years after receiving his MBA from Brigham Young University, Robert wrote the book that outlined the system he used to create a wealth “nest egg.”  Robert was one of the first to publish books on the no down payment methods for real estate and other high leverage real estate strategies.

While most of these techniques are high risk and some are outdated, the one thought that I remember from the book is that creating wealth is a state of mind.  Robert used the thought to outline that even if all of his personal wealth and income where gone, he would still be able to buy properties and create new wealth, because his knowledge, attitude, and belief.

Knowledge

The focus of knowledge is the core information you need to know.

1. The fundamentals of business, finance, marketing, accounting, and the like are all the starting piece of knowledge.
2. Industry specific knowledge is also important, whether you are in real estate, Internet business, retailing, etc. 
3. Personal knowledge like socializing and networking with friends, co-workers, associates, and partners.

You can have too much information, but you cannot know too much.

Attitude

A positive attitude is critical to any success.  A negative attitude can be the straw that breaks the camels back, while a positive attitude can be the force that propels you to soar to new heights.

Belief

Belief is directly influenced and related with your attitude.  Belief calms nerves and builds confidence.

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On Wednesday, I wrote about George S. Clason’s The Richest Man in Babylon.  The book is a succinct presentation of the philosophy of making money.  Inside the front cover, the author wrote a reasoned argument for how he was able to write parables of ancient Babylon and apply the principles of finance for the modern world.

From The Richest Man in Babylon:

“Ahead of you stretches your future, like a road leading into the distance.  Along that road are ambitions you wish to accomplish…desires you wish to gratify.
 “To bring your ambitions and desires to fulfillment, you must be successful with money.  Use the financial principles made clear in the pages that follow.  Let them guide you away from the stringency of a lean purse to that fuller, happier life a full purse makes possible.
 “Like the law of gravity, these laws of money are universal and unchanging.  May they prove to be for you, as they have proven to so many others, a sure key to a fat purse, larger bank balances and gratifying financial progress.”

George S. Clason’s Reason for Understanding the Laws of Money:

• “Money is the medium by which earthly success is measured.
• “Money makes possible the enjoyment of the best the earth affords.
• “Money is plentiful for those who understand the simple laws which govern its acquisition.
• “Money is governed today by the same laws which controlled it when prosperous men thronged the streets of Babylon, six thousand years ago.”

In the second chapter, the author wrote the seven cures for a lean purse.  The seven cures are seven steps for the acquisition of money – the best “How to make money” that everyone can follow.

The Seven Cures for a Lean Purse:

1. “Start thy purse to fattening” = get a job; start earning an income.

Any income is better than no income and you need to start to make money by earning some sort of income even if it may not be a lot.

2. “Control thy expenditures” = start and live on a budget.

The smaller the income, the more important it is to have a budget and control how much you spend and where you spend it.  Take a hint from someone like Donald Trump, who is worth billions; he still knows exactly how much it costs to merely power on his yacht - $5,000.

3. “Make thy gold multiply” = Save 10% and invest that savings so that it will earn interest.

This a compounding effect that is the cornerstone of making money – having your money work for you!  Your money can work for you by earning interest in a money market account, mutual fund, 401k, IRA, or some other interest earning, money management fund.

4. “Guard thy treasures from loss” = risk management and diversification.

Your bank should be able to connect you with a good financial planner (if not, you should find a new bank). The benefit of working with a financial planner is he or she will be able to assist you in defining your plans for investments that will protect your money against loss. Diversification is one of the more popular methods. If you lose money in one investment or one market, you can still come out ahead in the long term from your other investments. A good financial planner will be able to tell you more.

5. “Make of thy dwelling a profitable investment” = own, don’t rent.

Living expenses is a major expenditure, but that expanse can also be an investment.  A home, in the long-term, works to your benefit as the value of the home will increase with the rate of inflations adjusted for the marketplace.  Another cornerstone to making money is to turn your expenses into investments.

6. “Insure a future income” = plan for retirement.

We get old and have to face a period where, for most, the expenses of living outperform income earned.  Nearly everyone in this day and age understands the importance of planning for retirement.  The problem is that most people do not save enough over their lifetime.  Your bank should be able to connect you with a good financial planner (if not, you should find a new bank).  A good financial planner will help you set up an Individual Retirement Account (IRA) and accomplish step six.

7. “Increase thy ability to earn” = position yourself to get a better paying job.

We started these seven steps with starting a job, any job that you can get.  The job may not pay well, but it’s a start.  The next five steps positioned you for a lifetime of better money management and long-term money principles for a lifetime of making money.  The final step is to compound the effect of each of these by increasing what we started with, your income.

Education is a great investment

One of the best investments that anyone can make is on education.  Paying for college is expensive, but, for most, the return on investment is high.  A lawyer or a doctor may have to pay for seven or more years of college, but the end result is a large salary that allows most to pay off the student loans and still have money left over to live a nice lifestyle.

What everyone can do

While a college education may not be the best fit for everyone, you can still gain experience in a job, learn everything about the industry that you work in, demonstrate a strong work ethic, work towards a promotion (or multiple promotions) and earn a higher paycheck.  The higher paycheck results in steps 2-5 having a greater effect on your wealth.

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If I were restricted to suggesting merely one book about making money, I would be grit my teeth and complain that there are several valuable books, but then I would recommend this one: The Richest Man in Babylon by George S. Clason.

This is one book that everyone should read. I don’t mean merely those who want to make a lot of money or those who want to be wealthy. I mean everyone. I think this book should be required reading in our public schools. I think every student should be exposed to the articulate presentation of the fundamentals of finance that George Clason wrote in this book.

The book is a quick read at merely 144 pages, but the pages are packed with valuable nuggets. I have recommended this book to and have received feedback from several friends who were pleasantly surprised and started to think about and look at money with a different (better) perspective after reading this book. One friend said he wished he had read it twenty years ago and is having his children read it.

The book is writing in fictional short stories. Each story presents the knowledge of money through examples and explanations. The author has highlight key rules and points about money, making money, keeping money, and using money to make more money. These rules were true several thousand years ago; these rules are true today, and these rules will be true for the rest of time.

Who should read this book? Everyone! (and you can pick it up at Amazon for a very small investment.)

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The Differentiator: They have a plan.

Those who make a lot of money, versus those who do not make a lot of money, have a plan to make a lot of money.

1. They determine that they are going to make a lot of money.

If you do not make a determination, you will not accomplish anything.

2. They determine how and when they are going to make a lot of money.

There are methods of saving, investing, compounding interests, and wise spending that will allow anyone, irregardless of income to be better off financially.  Those who determine how to and the timeframe to make a lot more money, do make a lot more money.

3. They work towards making a lot of money.

Laziness accomplishes nothing good.  You become less energetic, less desiring to do anything; you will gain weight; over a lifetime you will have health problems that complex a happy and successful life; and you will die without accomplishment, notoriety, without leaving something better for your children and grandchildren, and without knowing what a better life is like.

Learn to love work and, then, learn to balance life and work.  And have a plan!

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Why do so many people focus on making money?  This may seem like there’s some obvious answer, but if you think about people’s actions about making money then you start to think differently about this question.  People are highly irrational when it comes to making money.  So many people will take dangerous jobs and work many long and stressful hours at work just to make some money, not even a lot of money.  The first thing that you need to do is determine your want and desire.

Want and Desire

1. Determine what you want and desire.

Do you want to just make money or do you want to enjoy how you are making money?   Hint: if you enjoy how you make money, you will work more, and better, at making money!  Many people who just want to make money will go after marginally better paying jobs with a great deal of sacrifice – don’t like what they do, may be stressful and dangerous, and may cost more in the end than the benefit of the extra pay.  Think about the miners in Utah right now.  They were doing a job that needs to be done and they are paid a little more than a median wage, but six miners have been trapped for twelve days and maybe dead or, at this point, barely alive.

2. Learn how to measure the accomplishment of your want and desire.

A great improvement about earning more money will come when you think about measuring that accomplishment.  Keep track of how much you make now.  Set a goal for how much you will make in five years and measure the progress.  A majority of those who make a lot more money have a career focus and measure their accomplishment.  They do not take a job that pays them more money.  They determine a career, which may have a not-so-great starting pay, but will increase exponentially over the time of the career.  The best example is the individual who starts as a college graduate professional for a corporation and sets a career path from entry management to top management; the increase in pay is compounded with top executives who earn four hundred percent more than a average employee; it’s like the steep incline of a bell curve where the rate of increase surpasses the rate of inflation – the best circumstance.

Learning Where to Spend

Once you have determined your want and desire and have set a goal of how to make money.  The most important step, after making money, is learning how to spend money.  Follow these five steps and you will do quite well:

1. Buy quality where you need it

When an item needs to be replaced on a periodic basis, the quality of the item plays a calculated role.  Better quality may mean a longer lasting and may present a better image.

2. Buy cheap where quality does not matter

If you have a suit jacket that costs $100, but will be worn out in six months versus a suit jack that costs $500, but will be worn out in a year.  It would be more economical, better spending, to buy two $100 suit jackets rather than one $500 suit jacket.  There’s an additional consideration of an expanding waste line also – will that jacket still fit you in a year (I’m thinking about going for run today, how about you? ).

3. Accumulate debt only where inflation works for you

Inflation is an important measure against the value of an item.  For example, inflation works against buying a new car, but works for buying a new house (assuming you don’t need one of the subprime mortgages that are adversely affecting the US stock market).

4. Accumulate debt when scarcity works for you

Even though, generally, inflation works against buying a car on debt, the scarcity of a classic or limited edition vehicle may produce a different result.  The good, recent example is the redesigned Ford Mustang in 2005 when the 2006 models came out; the value of the used 2005 models (in like new condition) were of greater value than the new 2005 models!

5. Strictly avoid debt when inflation works against you

When considering steps 3 and 4, you need to keep the mindset to strictly avoid debt when inflation works against you.  No matter how much money you make, if you spend money through debt on items where inflation works against you then time is your greatest enemy.  A basic principle in finance is that a dollar today is worth less than a dollar tomorrow for two reasons – inflation and loss opportunity (stay tuned to this series on the philosophy of making money for more on loss opportunity).

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Book Review: Investment Megatrends by Dr. Bob Froehlich

Wednesday is Make Money Book Reviews at MakeMoneyJot.com. Every week I review a book related to the topic of making money. Last week, I took a look at Hedgehogging. Today, it’s Investment Megatrends.

In Dr. Froehlich’s book, Investment Megatrends, you will learn about a consideration for investing that is one of the more secure predictions for long term investments, but is not commonly discussed for investments – the statistics of demographics.

We are all familiar with trends. Anyone who paid attention to the US stock market for the last couple of weeks would have noticed a disturbing downward trend, because of the real estate decline, which lead to declines in the subprime mortgage market, and which has lead to a larger scare because of how subprime mortgages are packaged and sold.

Megatrend for Investments 

A megatrend, a term coined by John Naisbitt, are large scale changes that effect the political, social, or economics forces for decades. The trends are large scale to the point of effecting nations, regions, continents, or the entire globe. These trends point toward the global shifts that will change the marketplaces for the next twenty years or more.

 According to Dr. Froehlich, the megatrends which are highly significant for investments are demographics, particularly three statistics:

1. Fertility
2. Mortality
3. Migration

Those three demographics produce a valuable picture about the health, wealth, lifespan, and population shifts of global regions which are valuable considerations for investors.

Analyzing Demographics 

To properly analyze the demographic data, Dr. Froehlich suggests four steps:

1. Focus on the extremes – where the statistics produce the greatest variances.
2. Cluster the data – combine the data in to logical groups and correlations.
3. Identify patterns – the indicators which predict future trends.
4. Draw comparisons – where one group of data relates with other groups of data.

Global Shifts 

In this book, Dr. Froehlich reveals four global shifts that produce significant investment opportunities to make money:

• Global Shift #1: The Ponce de Leon Effect: Focusing on the American Baby Boomers
• Global Shift #2: The Walls Keep on Tumbling Down: Focusing on Eastern European Workers
• Global Shift #3: The Rising Sun Is Clearly Setting: Focusing on the Aging Japanese Population
• Global Shift #4: Napoleon Was Right: Focusing on the Chinese Consumer Generation

You will have to read the book to learn more about these global shifts and how they will impact your portfolio. The considerations are significant and definitely impacting on a megatrend scale. Dr. Froehlich has completed all the work with the data necessary for you to benefit in your investment decisions. He even goes as far as laying out twenty stock picks which are best positioned to benefit from these global shifts.

This was a very interesting book to read and the information presented is quickly and easily digestible, so you will be able to benefit from Dr. Froelich expertise. I highly recommend that you consider these global shifts for your 401k and retirement funds. Of course, individual results may vary and I can not guarantee success; I can merely recommend it.

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