How to Qualify for Business Credit Lines

As a small business owner having access to cash continues to be a growing concern during these tough economic times. The majority of business owners prefer a line of credit because it allows a business to establish a significant amount of cash on demand to make purchases that are too large for a credit card and too small for a loan. However, when it comes to qualifying for a line of credit many small business owners are left in the dark.

First of all, the ideal time to apply for a business line of credit is during times of growth and cash flow. Banks are more likely to approve a credit line to a business when it doesn’t need the funds compared to one that is financially strapped. I would strongly encourage you to adopt a ‘dig your well before you get thirsty’ philosophy for your business.

If you think you’re business is just making it fine despite the current economic times and you don’t need the credit line think again! The reality is that your business will at one point require an influx of cash in order to cover unforeseen operating expenses, development, expansion, legal fees, inventory or a range of other items that a business may require in order to grow.

So when you apply for a line of credit and your business is coming from a position of financial strength such as having a strong bank rating, business credit scores, good cash flow and so on the risk is greatly reduced and your chances for getting approved are much greater compared to applying from a position of weakness.

Secondly, it’s much easier to get approved for a $50k line of credit compared to a $100k line of credit simply because of the documentation and amount of financials required on larger credit lines. Most banks only require a low 5 bank rating, a favorable business credit rating, and personal credit scores of 680 or greater to approve a $50k line of credit.

If you are applying for a credit line greater than $50k than you end up having to also provide 2 years of personal and business tax returns, profit & loss statements and financial statements. So you can see the difference in documentation is substantial when it comes to the amount of credit that you are applying for.

Here are my ‘Four Factors to Qualify for a Business Line of Credit’

1. The first factor is your bank balance rating. You will want to aim for a $10,000 balance which rates your business as a “Low 5″.

2. The second factor has to do with how you manage your business bank account. It’s important to avoid bouncing checks at all costs!

3. The third factor is your business credit reports -D&B report, Small Business Equifax, and Corporate Experian should reflect a solid business credit history and scores.

5. The fourth and final factor is having a personal credit score of 680 or greater.

These four factors can improve your chances for getting approved for a business line of credit. The important thing to remember is that banks are in the business to lend money and they make money from the interest they charge. So when they do lend or extend a line of credit to a business there is an amount of risk involved which they want to limit as much as possible.

Prior to applying for a line of credit you can minimize this risk by complying with the four factors I’ve outlined for you and have full confidence in knowing that qualifying for a business line of credit is just an application away.

Selling Your Technology Business – Business Broker or Merger and Acquisition Advisor

Most business owners only sell one business in their lifetime. The results of that sale can have a major impact on the financial future of the family. For most business sales we recommend that the seller engage a professional specializing in business sales to assist. There are two broad categories of professionals that engage in business sales – business brokers and merger and acquisition advisors. What should the seller be looking for? This article will discuss the type of services offered by both groups and help the business seller decide which professional to use.

Most business owners only sell one business in their lifetime. The results of that sale can have a major impact on the financial future of the family. For most business sales we recommend that the seller engage a professional specializing in business sales to assist. There are two broad categories of professionals that engage in business sales – business brokers and merger and acquisition advisors.

What should the seller be looking for? This article will discuss the type of services offered by both groups and help the business seller decide which professional to use.

The first criteria is type of business. Generally, business brokers specialize in €Main Street€ types of businesses such as dry cleaners, gas stations, restaurants, and convenience stores. M&A advisors specialize in more B2B types of businesses such as manufacturers, distributors, information technology firms, etc.

Size of Business – BB’s specialize in businesses under $1.5 million in revenues and M&A’s represent larger businesses or smaller businesses with a high component of technology or intellectual property.

The Targeted Buyer – BB’s are generally targeting individual buyers while M&A’s are seeking to locate corporate buyers.

Business Valuation – BB’s specialize in commodity type businesses that have €rule of thumb’ valuations that are consistently applied to arrive at a business selling price. There is usually a pretty narrow range of valuations applied to these businesses. M&A’s are recommended where there can be a broad interpretation of €strategic value€ and rules of thumb do not apply. A high component of Intellectual Property, a unique niche, a hard to penetrate customer base are characteristics that can demand strategic value and purchase prices can vary widely.

Complexity of Transaction – BB’s are generally selling to individual buyers that have a finite approach structuring the transaction. The contracts are usually fairly straight forward and the negotiations focus on price, financing, and seller notes. For the M&A’s the targeted audience is the corporate buyer with vast experience in acquiring businesses. They employ both an internal legal team and outside council and make the purchase contracts quite complex. The number one goal is protecting the corporation. The contracts are 35 pages of complex legal language and schedules of reps and warranties. The seller will need someone that is familiar in navigating in that environment. Corporations generally send in a due diligence team that is well versed on finding every little wart in a seller company and will attempt to reduce transaction value during the process. The seller will need good advisors to offset these pros.

Exclusivity – because the BB’s are targeting individual buyers, their audience is vast so exclusivity is sometimes required and sometimes not required. Business sellers often engage multiple non-exclusive BB’s to insure the broadest coverage in presenting their business to the buyer audience. BB’s are often part of a network of BB’s to help broaden this exposure. Sunbelt Business Brokers and BBN are two very good networks.

M&A’s require exclusivity because they are targeting corporate buyers and the audience of potential buyers is finite. These corporate buyers have M&A departments or sometimes the president handles the process. If a target is presented to a corporate buyer by more than one professional the credibility immediately drops and the chance of serious interest drops significantly.

Number of Clients Represented – BB’s want to represent as many business for sale as they can. When contacting their vast network of individual buyers it is a real benefit to have a vast inventory of companies. Because on this, their approach is more of a mass mailing, mass email, post the business on a business for sale Web site, type of approach and their attention is spread over 25 or more simultaneous clients.

M&A’s usually limit their number of engagements to 3 or 4 per professional at a time. Their approach is very hands on and labor intensive. M&A’s usually rely on a direct selling approach of calling the buyers and talking with the M&A department or the president. Often M&A’s will have specific industry niches and will have a customized data base of contacts. They often have had several prior contacts with the buyers and are able to penetrate the call screening that is set up to protect these individuals. A corporate buyer does not buy through a posting on a business for sale Web Site. A corporate buyer will open 2% or less of letter solicitations. A corporate buyer will read less than 1% of unsolicited and unknown emails. Corporate buyers demand personal and professional contact to get their interest.

Up-Front or Monthly Fees – BB’s generally will charge a minor up-front fee to begin the engagement or have a simplified valuation completed. Generally there is no monthly fee charged. M&A’s generally charge either a substantial up-front fee or a monthly fee in the $3500 to $10,000 per month range depending on the size of the business.

Success Fees – BB’s generally charge a success fee of 10% of transaction value. M&A’s generally have a sliding scale based on the anticipated size of the business. The known Wall Street firms that sell the mega businesses will not touch a transaction where they are not guaranteed $1 million in fees. The big regional firms require at least $750,00. The M&A firms that deal in the lower end usually charge considerably less than that with a minimum or $150,000 cash at close. If your transaction value is in the $10 million range, count on paying your M&A firm $300K to $400K.

Conclusions – The deciding factor is in cost benefit. An M&A firm is going to cost a lot of money and you are going to be paying either an up front or monthly fees without a guarantee of success. If your business is smaller and is a commodity type business or Main Street business where the target buyer is an individual, an M&A firm will not add much value and is not worth the fee.

If your business is larger, complex, unusual, strategic, with a high component of intellectual property or technology and subject to a broad interpretation of value in the marketplace, an M&A firm is the right choice. In the final analysis, is a swing of 20% in your company’s selling price worth $5,000 per month for 8 months?

Home Based Businesses – Business Or Hobby

Many people who engage in businesses run from home do so at what could really be called a hobby level. The various tax authorities of western countries all pretty much allow a certain latitude for activities run from home that also make some income, but not much. The US IRS and the Australian ATO amongst others have limits of how much can be earned and still remain in the hobby realm.

This is what the Australian Taxation Office says about whether you are a business or a hobby:

“How do I tell whether I am in business?

There is no simple answer to whether you are in business or not, it depends upon the facts in each case. However, you can use the following questions to help you determine whether your activity is actually a business:

Does your activity have a significant commercial purpose or character?

Do you have more than just an intention to engage in business?

Do you have a purpose of profit as well as a prospect of profit?

Is there repetition and regularity to your activity?

Is your activity carried on in a similar manner to other businesses in your industry?

Is your activity planned, organised and carried on in a business-like manner?

Does your activity have characteristics of size, scale and permanency?

Would it be true to say your activity is really better described as a business, rather than a hobby, recreation or sporting activity?

Each time you answered ‘yes’ to the questions above, it increases the probability that you are in business though no one indicator is decisive, they must be considered in combination and as a whole.”

Source: ATO Website 2009

The Internal Revenue Service of the USA says;

“Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.
In order to make this determination, taxpayers should consider the following factors:

Does the time and effort put into the activity indicate an intention to make a profit?

Does the taxpayer depend on income from the activity?

If there are losses, are they due to circumstances beyond the taxpayer’s control or did they occur in the start-up phase of the business?

Has the taxpayer changed methods of operation to improve profitability?

Does the taxpayer or his/her advisors have the knowledge needed to carry on the activity as a successful business?

Has the taxpayer made a profit in similar activities in the past?

Does the activity make a profit in some years?

Can the taxpayer expect to make a profit in the future from the appreciation of assets used in the activity?

The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year – at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses.”

Source: IRS Website 2009

As you can see, both tax authorities have very similar ideas of what is a business and what is a hobby. HM Revenue and Customs of the UK is a little more confusing and approaches the issue in several ways, including hobby trades, pet breeding and so on.

Basically though the same thinking prevails. If it is part time, done for fun and barely covers costs then it is most likely a hobby and income derived is not taxable. Of course in that case it often means the expenses incurred are not tax deductible, either.

One of the benefits of being in business is the deductions you can claim for legitimate business related expenses. You can also usually claim a lower rate of tax on profits than you would if that income was salary. A business can run at a loss for several years and depending on the business format, indefinitely in some cases.

Think hard whether your home based business is a true business or a paying hobby. Always get professional advice on all accountancy and tax matters and never, ever try to rip off the Taxman. You will get caught and it is never worth it. The system is there to be used but not abused and there are more than enough ways you can pay your share of tax and not a cent more. Be creative, not criminal.

Online Claims Management System – The Significance

In free exhibit, you ought to check all the working modules, undertakings and essential controls in the most sufficient way. Along these lines, you will have the capacity to distinguish any blemishes or mistakes promptly in the framework before buying.

When you need to choose specific practice administration program programming, it is extremely key to remember certain focuses to expand the general benefit and effectiveness. Case in point, whether the system is comprehensive or concentrates on a specific part of documentation must assume a part in choice method. Then again, you have to deliberately survey the program’s utility and adequacy also.
The chose project ought to be extremely adaptable and flexible. In the event that you have picked an extremely helpful and viable administration program framework, then your business will absolutely work in the most expert and proficient way. At the point when selecting specific project programming, you have to check all the peculiarities and use enough. It has been proposed to get thorough Catastrophe claims management software programming that has all the peculiarities and utilities.

You will unquestionably get all the included gimmicks and utilities if you get exhaustive programming. The online claims management system progressed programming will incorporate every day parts of charging, receipt, representative payroll, reports, medicinal protection cases, history and other critical components. The product is the best arrangement if you are dealing with a clinic, salon, center, spa, or some other kind of business.

This compelling and ingenious online practice administration framework is not difficult to introduce on your desktop or some other processing framework. You can undoubtedly diminish your working expenses if you introduce the product in your office. The point of interest of the product is that you needn’t bother with extra representatives and it truly diminishes the requirement for supplementary labor. Ease of use and adaptability are two viewpoints that ought to be given due significance while getting this sort of framework.

Get helpful project Casualty claims software programming that is not difficult to translate. Your specialists and managerial staff ought to have the capacity to utilize the product without any troubles or hiccups. If the product is difficult to see, then it nullifies the very idea of helpfulness and productivity. In this way, it is exceptionally fundamental to buy a capable framework that is simple and easy to utilize. The framework supplier ought to offer reinforcement and specialized help at whatever point required.

It is critical to choose an organization that gives different varieties of administrations. You will have the capacity to know all the peculiarities, working modules and deformities if there are any before acquiring.

Theme Based Events by Top Event Management Companies

Recreation is different from the usual concept of play. It is important for work to be supported by recreation, recreation being useful to €recharge the battery’ so that work performances are improved. It is an important element that creates a balance between work and life.

Why is recreation required in an organization? What are its benefits? Having fun activities in offices or organizing fun theme based events by top event management companies throughout the year does not mean a waste of time, resource and productivity but in turn boosts morale, increases productivity and helps in better revenue generation.

Following are some points that can define the importance of recreation in any organization may it be banks, IT firms, FMCGs or even corporate event management companies in Mumbai
€ Breaks boredom / monotony
€ Helps interact with other departments / management
€ Increases productivity
€ Reduces stress
€ Builds unity
€ Creates a perfect balance between work & leisure
€ Builds self-esteem
€ Generates higher revenues
€ Enhances relationships skills
€ Develops time management
€ Concentrates on employee health and wellness
€ Generates leadership qualities
€ Recharges and rejuvenates the individual
€ Increases focus / concentration on goals
€ Leads to speedy accomplishments of goals
€ Creates a friendly atmosphere
€ Identifies high employee attendance levels
€ Boosts employee morale
€ Increases percentages of achievable targets
€ Helps generate innovative & big ideas

Some of the recreational activities include:

€ A room in office dedicated to games like pool, table tennis, carom, chess etc.
€ A gym or other work-out / stress reduction sessions like yoga / art of living etc. for employees to follow, pre or post work time.
€ Adventure trips / picnics for employees and the management team.
€ Indoor and outdoor team-building activities.
€ Celebration of festive events like Diwali, Christmas, Independence Day etc.
€ Music related sessions for better concentration and high spirits.
€ Theme based fun events clubbed with annual / bi-annual awarding ceremonies.
€ Screening of movies before heading for the weekend.
€ Celebration of employee birthdays in special and innovative ways.
€ Talent competitions to develop self-confidence.
€ Stress management / motivational & other feel good seminars / speeches by professional and renowned artists.
€ Library set-ups with a good collection of books catering to all individual tastes.
€ Open terraces for quick breathers.
€ Canteens stocking and supplying healthy and anti-depressant food & beverages.

What are the consequences of zero / no recreation in organizations?

€ No employee / department interaction
€ Hampers team-work
€ Negative & non-friendly exchange of attitudes
€ Identifies low employee attendance levels
€ Sluggish & dull work ambience
€ Slow accomplishments of tasks / projects
€ Non-unified work culture
€ Slow productivity
€ Lack of confidence
€ Low acceptance of work
€ Non- punctual work hours
€ Non-focused / low concentration levels at important gatherings, meetings, seminars etc.
€ High number of employee resignations
€ Lack of innovative and big idea generation
€ Low percentage of achievable targets

It’s extremely vital for organizations to focus on recreation to double up business benefits and not live in the belief that it is a mere interference in productivity.

Purchase Durable Wrenches and Saws at Unbeatable Prices

In the marketplace, you will find different types of power tools that are available for sale at the best prices. Such tools or instruments are used in different applications in the residential and industrial sectors. Whether it is a home improvement job or any industrial work, these quality instruments play a significant role. While using such power tools you can efficiently finish your work in a proper and timely manner. It is important to use high quality power tools for all your residential, commercial or industrial works.

Many suppliers are available worldwide that sells a wide range of power tools. When looking to purchase these products from a trusted source, then it is advisable to go online. Plenty of online stores have been introduced these days from where you can get the best products in an easy and secure way. Online shopping can be done from anywhere throughout the world. The most important thing is to choose the right shop, as many fake online stores are also available nowadays.

If you are looking to buy top quality power tools at cheap rates, then there is a trustworthy online shop on whom you can depend for all your requirements. They are one of the ultimate sources from where you can buy a range of DeWalt, cordless power tools that include wrenches, drills, saws, drivers, torches, grinders/ sanders, radios, cases and bags. If you are thinking to get high end DC822 Impact Wrench online, then they are the most authentic source for you. As a prominent service provider, they specialize in selling the best quality tool kits at low prices.

For many years, they have been serving quality products and exceptional customer service. Being one of the top sellers of such products nationwide, they have built a good prestige in the market. If you want to purchase excellent quality dcf880 impact wrench from a reliable online store, then you are at the right destination. They are an independent supplier of these products and also known as a trading division of PF Trade Limited. They are dedicated to providing every single customer with pleasant and exciting shopping experiences.

In their store, they carry an outstanding selection of power tools in wide ranges, brands and models. If you are in search of a licensed online shop from where you can buy the best dcs391 circular saw in a fast and secure way, then they are the one stop destination for you. They have many satisfied customers across the nation. They are committed to delivering world-class customer service that is beyond expectations. Customer satisfaction is their top priority.

Finding Excellent Logistics Solutions in Seattle

There are many ways that you can find an excellent Seattle based logistics company that will help you with all of your logistics needs without hassle. There are many ways that you can have guaranteed success for your business if you use only the best logistics services that are available to you.

When you begin searching for the best logistics company in the area, you may discover that there are a lot of options that you will have to sort through before being able to pinpoint the right company for you. You have a lot of choices at your fingertips that can easily help you find the best logistics company.

First, you can decide to use the Internet to help you find a local logistics company in your area that can help you get the best service that you need. Find a listing of logistics companies in your areas and then you can narrow down your options to the best choices possible. There are many options available to you, when you search online. Use a search engine to find local logistics companies and then check each of their websites to see which products and services are offered. Next, carefully review the websites and then contact the companies directly via email or phone, in order to get more information about the company that will help you decide which company will be the best service provider to you.

From there, you can begin the process of negotiating the different terms and conditions that you would agree to, if they provide you with the services that you need. You should also get a written estimate of the services that you will receive. The estimate will provide a detailed outline that will show you the cost of the services and exactly which services you will be paying for as well. This is a very important document to have when you decide to go forward with getting services from a particular company.

You can also contact a local chamber of commerce to help you find an excellent logistics company in your area that can help you with all of your logistics needs. There are a number of ways that a local chamber of commerce can help you with getting the right service that you need. There are many ways that the chamber of commerce can help you pinpoint the exact logistics company that you would require to assist you with setting up your logistics. The chamber of commerce can help you with finding the best logistics companies and they can also help you schedule meetings so that you can get to know the representatives at the company well.

One of the advantages to getting a meeting set up with a representative from the chamber of commerce and the logistics company is that you can ask any pertinent questions that are key to deciding whether or not you will decide to use that company or not. This is an important part of the process that should not be overlooked. This meeting will also be an opportune time for the company to make an offer to you for the cost of the logistics services that you need. It is recommended to meet with a few companies prior to making a contract with one company.

What Leaders Can Learn From Homemade Bread

This post is written to celebrate Homemade Bread Day, and while it may seem strange to connect homemade bread and leadership, please get past the quirkiness and follow along. I believe there are powerful points that follow, even if you aren’t (gasp!) a fan of homemade bread.
As I made notes to create this article, I thought about the things that make homemade bread so special and tied them to important leadership ideas. Most importantly though, I have chosen to provide you with a challenge related to each of those connections. If you have a recollection of a great slice of homemade bread, revel in that as you read.
There is Positive Anticipation
Several important people in my life have made homemade bread, including my mother, wife and mother-in-law. All of them make excellent bread. But the person I most connect homemade bread with is my Grandmother. She made it every week for most of her life, and it was awesome. And as a kid I can remember the anticipation of knowing it was €bread day€ and the feeling of walking in knowing bread would be baking, or hopefully, already be out of the oven.
As a leader, people likely have some anticipation of your arrival for a meeting, or what to expect when you walk into their work area. While it may not carry the fond positive emotions I have just described, what do they anticipate?
As a leader, how do people feel when they think about your presence, your actions and the way you lead? Is it positive? If not, how can you begin to change that anticipation, even a little bit starting today?
The Effort Required is Necessary and Noticed
Anyone can go to the store and pick up a loaf of bread. Making bread requires forethought, planning, effort and time. Even before you take your first delicious bite, you know that effort and care went into creating what you are about to enjoy.
Anyone can be promoted to a role of leadership. Doing it well goes far beyond a job title. To be even marginally effective you must work at it. To become significant (or as I would say remarkable) at it requires dedicated effort to get better at the skills required, and a care for those you are leading. The effort and care will be noticed, as will the lack of it if you lead like a loaf of nondescript store brand white bread.
How much effort are you putting into your role as a leader? If you care about the organization and the people you lead, how does it show?
It Creates Something More
The Grandma homemade bread experience was about more than the bread. It started with the smell. It was inviting. It drew you in, the warmth and aroma adding to the experience. It wasn’t just about a piece of bread for sustenance.
The best leaders are also creating something more – something more lasting, something more real. They aren’t just €doing the work€ of a leader, but rather are creating a place and an environment where people can grow and thrive.
What are you creating for your team?
It is Unique
No two loaves of homemade bread are exactly alike. In the store, all are the same. Pick up five and you can’t tell them apart. But homemade, all are a bit different in how the ingredients interacted with the pan and the heat. They are wonderfully different – and that actually makes it better.
Great leaders know they don’t need to be, nor should they strive to be, like any other leader. Yes, they need to learn and grow and adapt. Yes, they need to apply principles that will improve their ability to be successful. And yes, they need to be themselves. There is no one perfect way to lead – you must bring yourself, imperfections and all, to the role.
Are you willing to continue to improve but still be yourself? Are you willing to let your team see you as a human as well as a leader?
I made more connections than these between homemade bread and leadership, but I believe these are the strongest and most powerful. If you think of other connections, please ponder and share them as well. Mostly though I hope you leave these words hearing my challenges, and taking them on in your own leadership journey.
I also hope this was helpful, and that I didn’t leave you feeling too hungry.

Different Ways To Build And Managed Your Own Automotive Locksmith Business Entity

Having a comprehensive idea of your objective is vital to operating a prosperous locksmith service business. Meeting your goals doesn’t mean very much if you don’t need to overcome significant obstacles to get there. These techniques will help you advance your 24 hr locksmith business goals confidently.
Your auto locksmith service business website ought to be inviting and professional. It’s okay if you’re unable to put a website together yourself, as there are a number of professional website designers who can do it for you. You could make your website look professional by making use of premium-quality templates and images. Online commerce reigns in today’s 24 hr locksmith business world; be sure that your automotive locksmith center maintains an active web presence to guarantee your success in this field.

Always accept people into your auto locksmith service business with a lot of care and consideration. Ensure that they are fully certified and competent. It’s your job to make sure they are well trained and prepared to handle multiple tasks. The best companies employ happy, well-trained, and driven employees.

Success isn’t reached by the realization of a goal, and many Dealer Locksmith locksmith service business owners are not conscious of this. A 24 hr locksmith business begins to die the second it stops growing. By staying up with new trends and staying determined, you can improve your business. When you keep up with market trends and constantly try best to improve your automotive locksmith center, success is bound to follow.

The key to your automotive locksmith center’s success is excellent products, services and locksmith supplies. When you upgrade the quality of the products and services you provide, you’ll notice a corresponding spike in both sales and cash reserves. You’ll get a steady stream of referrals from your customers when you deliver an outstanding shopping experience every time they make a purchase. If you could visualize your auto locksmith service business as the undisputed leader in your industry, you could make it happen.

A small auto locksmith service business cannot survive without loyal buyers. Businesses that have been around for a long time all understand that to continue being successful, they need to treat each customer like an active member of their family. The devastating effects of one bad customer review can wreck a 24 hr locksmith business. Management of your online reputation is important.

In the operation of a profitable auto locksmith service business, nothing is much more important than a great plan. Setting detailed, attainable goals is one of the best methods to lay the foundation for a lucrative company; you should always include them in your marketing strategy. Planning for your automotive locksmith center’s future success is easier if you could devise a group of clearly stated goals. By keeping your goals smaller and more manageable, you will likely be more effective as an owner than if you set larger, more complicated objectives.

Starting an auto locksmith service business is one of the hardest things you could choose to do. Before you jump into the world of 24 hr locksmith business, research thoroughly. You could develop a prosperous business with the right planning. There’re countless online sources of valuable info on starting a 24 hr locksmith business.

Affiliate Marketing Business

how to start affiliate marketing

The number of companies with whom you can start your affiliate business is pretty near as large as the list of human interests. I am personally involved with four major programs and a number of minor ones and they are all worth being involved with if you promote them correctly. They range from the household names like General Motors all the way down to your local flower shop who might offer a cash override on future introductions for referring customers to them.

You need to structure your company such that you can profit from them all over time.

How Does Affiliate Marketing Work?

You refer new people to your individual link. When clients decide to buy through your link, they company sees it and pays you a commission ranging anywhere from 4% to 100%.

It is fairly straightforward, although the successful execution does have some amount of artistry to it:

Decide which affiliate programs you want to join.

Decide how you are going to market that program.

Create individual content that is relevant to that method or channel.

Drive traffic or folks to that content, which is to say promote that content.

Decide What Affiliate Programs You Want To Join

In order to determine what Internet affiliate marketing program you want to start your affiliate business with you have to decide what your goals are. Making money is so undefined that I am afraid it will not inspire you to get up and walk away from the great one-eyed mindsucker after you get home from 8+ hours at your place of employment.

You need well-defined goals to motivate you.

For instance, if you just want to earn a couple of extra bucks from time to time, you really don’t have to spend a lot of prep time. If you want a serious business that will cover your car payment this month, your car payment and utilities next month, and these plus your rent or mortgage in 3 to 6 months, you are going to need to invest a little more thinking and planning.

I want to strongly encourage you to consider regularly promoting subscription affiliate products, too. Why?

Subscription affiliate products pay you every month. In addition to getting paid for what you produced this month, you will get paid… again… for what you produced last month.

I hope this is starting to set some bells off in your head because if you get with and promote the correct, high quality subscription affiliate product or service you can be looking at a lifestyle change.

Decide How You Are Going to Promote

There are a ton of ways to market your affiliate link. They include:

Blogging about the services and products on your blog

Talking about it on other blogs or including it in your signature when you post on other blogs

Creating unique articles for posting on the article directories

Making videos about what you are promoting

… and this is just the tip of the iceberg on ways to promote your content.

Create Content Relevant to the Channel

Blog posts, especially those you post on your own blog, have a lot more leeway in the content you create and post. For instance, what you post on your own blog is really only subject to approval by you while that which you post on the article directories have an entirely different set of rules. Don’t get frustrated when they refuse what you wanted to post, just go edit it and follow their rules and you will get posted.

Likewise, you don’t create a blog post and post it to YouTube. You create a video of yourself discussing or instructing on the benefits of visiting your link. (Although that line is getting blurred by software that will create a video from your blog text and read it to your viewers like the lead in to the original Star Wars movies.)

Drive Traffic to that Content

Remember, the goal of articles and videos is to get people to view your original content on the products and services which you are promoting. Many, if not most, article services do not allow you to place links directly to your affiliate link. Some will let you slip by, but it is just frustrating your efforts when you have to edit an article so that it gets posted. Even in the affiliate marketing business time is money.

For an exceptionally effective primer on starting an affiliate marketing business and reaching profitability within 30 days, go here and watch this free instructional video.