Fifteen billion smackers: That's the value Microsoft recently slapped on Facebook when the computer giant invested $240 million for a 1.6% stake in Mark Zuckerberg's online social-networking site.
You could seethe with envy--or you could chase your own fortune on the Web.
Some online businesses require only a few hundred dollars in equipment, while others demand significant hardware and perhaps even a warehouse. Some might make you rich; others might just cover beer money. And all involve various levels of time, capital and technological skill.
In Pictures: Eight Ways To Make Money Online
"Some people have dreamed about owning their own business and have not followed through because of the investment in resources," says Jim Griffith, head of eBay University, for those aiming to set up shop selling goods at the online auctioneer's site. "The Internet allows people to at least try without making a large initial investment."
Army veteran Brandi Ramos of Springfield, Ill., did it. As a single mom in need of extra income, she started her online retail career peddling "big and tall" men's clothing on eBay.
Three years later, Ramos, 32, makes a good living working online out of her 600-square-foot basement packed with hanging displays and baker's racks piled with tupperware containing underwear and belts. Ramos aims to offer quick service, answering all e-mails within four to six hours. She claims to net $25,000 on $100,000 sales a year, and even earns a few bucks per order on shipping.
If managing inventory seems too big a chore, play virtual landlord and charge other retailers monthly fees (or per-transaction fees) for the opportunity to market their products on your site. Amazon.com (nasdaq: AMZN - news - people ) nabbed 28% of its revenues this way in 2006.
Craigslist is another take on this model: The 25-person company, worth a reported $2 billion, charges businesses to post help wanted ads in San Francisco, New York and L.A.; it also collects fees for apartment listings in New York City. Total page views per month: about 5 billion.
Then there's every pajama-clad blogger's dream: producing content supported by advertising dollars. Selling advertising is how thousands of established online media outlets pay their electric bills. They charge advertisers two ways: by the number of overall Web pages (called "impressions") served up, and by the number of people who click on the ads.
Setting up a blog requires not much more than a basic publishing program, a server and software to track ad clicks. The hard part, though, is attracting enough eyeballs to make it worth someone's while to pay to advertise on your site.
To have any prayer of attracting large advertisers, sites need to attract at least 500,000 unique visitors per month, says David Hauslaib, publisher of Jossip.com, a media and gossip blog that counts Coca Cola (nyse: KO - news - people ) and Sketchers among its advertisers. Sadly, even if you do generate enough traffic, the "click-through" rates on ads tend to be quite low--in the neighborhood of one half of 1%.
Subscription-based models are even harder to crack. Unless your site fulfills an urgent need (for tangible investment ideas, a potential mate, etc.), users aren't likely to pay for the content.
One way to garner subscription revenue is to run a virtual marketplace. These sites collect by allowing buyers and sellers easy access to each other. Many of these marketplaces flamed out in the dot-com bust, but some persist. Mfg.com, for instance, matches equipment manufacturers with smaller component suppliers. Dating sites like Match.com charge subscription fees for access to their members. And H2Bid.com links municipalities with wastewater-equipment vendors.
As with tangible real estate, you can buy virtual plots (URL addresses), flip them and make a buck. GoDaddy.com sells unused domain names for under $10 dollars apiece. To attract buyers, run tests to determine how often certain key words are searched so that you can demonstrate the likelihood that your URL will show up in a Google (nasdaq: GOOG - news - people ) or Yahoo! (nasdaq: YHOO - news - people ) search. One tip: The best domain names are short, sweet, specific and easy to remember. (For more on this model, check out "Meet Noah Of The Internet" and "The Most Expensive Web Addresses.")
As Internet usage grows, so too will the sophistication of online business models. Take 3-year-old Yoonew.com, which sells futures contracts on sports tickets.
Fans buy the right to take delivery of tickets if their teams make it to a coveted playoff game, perhaps months away. Given the uncertainty of the bet, those contracts sell for a fraction of the future market value of the underlying tickets. If your team makes it to the big game, you've locked in a cheap seat; if it falls short, you lose that insurance premium.
Yoonew makes money when the revenue it collects from selling all those contracts exceeds the cost of delivering a small number of very expensive tickets on game days. The danger: If ticket prices spike, or there are no seats available, the company could suffer a loss or alienate its customers.
Sure, you can make money online. But no one said it was easy
Saturday, May 16, 2009
Falling Mortgage Interest Rates
During times of economic slowdown, the Federal Reserves Bank decides on the appropriate measures how to deal with the situation. There are two main economic policies on how to fix an ailing economy. One is through fiscal policy wherein taxes and government spending are being dealt, while the other is through monetary policy of central banks that focus mostly on interest rates.
The US Federal Reserve Bank tweaks interest rates during an economic bust or boom to keep matters in equilibrium. The Fed Board meets to discuss this decision. When interest rates are treated, this signals that there is neither too much money supply nor too little going around the economic system. When interest rates rise or fall, the banking sector absorbs the blow. Although different sectors of the economy will be affected in the long run, its effect on the mortgage interest rates do not happen in an instant.
Fed rates are indicators for banks overnight borrowings to maintain reserve requirements to avoid bank runs. The Fed usually increases interest rates to calm rising inflation and cut the supply of money in the economy. During recession, the Fed nips it to curb recessionary effects. Inflation and recession then influence the mortgage rates giving it some time before the impact is felt.
When banks approve loans for purposes of purchasing new homes or refinancing, banks then resell them to Fannie Mae (FNMA), a nationalized mortgage company, or Ginnie Mae (GNMA). The funds obtained from these financial institutions will be used again to finance more loans.
These financing agencies belong to the secondary lender market wherein the funds they use to buy out loans from banks come from selling their securities as bonds. These securities are billion dollars worth of individual mortgages to be sold. Once these mortgage-backed securities are repackaged as bonds, people and other institutions perceive these as secure investments. Stocks and bonds usually go up against each other in the market as form of investments. When the demand for bonds is high, meaning interest rates are attractive, its effect is felt in the stock market wherein there is a dip in the investments, and vice versa.
For these bonds to lure more dollars, there should be a higher rate of return, which then translates to high interest rates of mortgages sold. This activity drives interest rates of mortgages to vary every day. Mortgage rates vary, depending on economic conditions of different countries according to different lenders.
Several economic indicators influence a lender's decision to determine a viable interest charge to mortgages. If a country is experiencing economic lag due to default rates in different sectors such as banking or property, lenders draw back in giving out loans. And when they do amidst higher risks, they set assurance by imposing high interest rates.
Lenders also have to consider the qualification of clients such as credit scores. They also check for debt-to-income and loan-to-value ratios. Loans differ accordingly; that is why the advice of a professional mortgage planner should be sought.
The US Federal Reserve Bank tweaks interest rates during an economic bust or boom to keep matters in equilibrium. The Fed Board meets to discuss this decision. When interest rates are treated, this signals that there is neither too much money supply nor too little going around the economic system. When interest rates rise or fall, the banking sector absorbs the blow. Although different sectors of the economy will be affected in the long run, its effect on the mortgage interest rates do not happen in an instant.
Fed rates are indicators for banks overnight borrowings to maintain reserve requirements to avoid bank runs. The Fed usually increases interest rates to calm rising inflation and cut the supply of money in the economy. During recession, the Fed nips it to curb recessionary effects. Inflation and recession then influence the mortgage rates giving it some time before the impact is felt.
When banks approve loans for purposes of purchasing new homes or refinancing, banks then resell them to Fannie Mae (FNMA), a nationalized mortgage company, or Ginnie Mae (GNMA). The funds obtained from these financial institutions will be used again to finance more loans.
These financing agencies belong to the secondary lender market wherein the funds they use to buy out loans from banks come from selling their securities as bonds. These securities are billion dollars worth of individual mortgages to be sold. Once these mortgage-backed securities are repackaged as bonds, people and other institutions perceive these as secure investments. Stocks and bonds usually go up against each other in the market as form of investments. When the demand for bonds is high, meaning interest rates are attractive, its effect is felt in the stock market wherein there is a dip in the investments, and vice versa.
For these bonds to lure more dollars, there should be a higher rate of return, which then translates to high interest rates of mortgages sold. This activity drives interest rates of mortgages to vary every day. Mortgage rates vary, depending on economic conditions of different countries according to different lenders.
Several economic indicators influence a lender's decision to determine a viable interest charge to mortgages. If a country is experiencing economic lag due to default rates in different sectors such as banking or property, lenders draw back in giving out loans. And when they do amidst higher risks, they set assurance by imposing high interest rates.
Lenders also have to consider the qualification of clients such as credit scores. They also check for debt-to-income and loan-to-value ratios. Loans differ accordingly; that is why the advice of a professional mortgage planner should be sought.
Wednesday, May 13, 2009
SAVE BLACK RADIO
TO MY RADIO ONE FAMILY:
The Honorable John Conyers, our 80 year old African-American Congressman is the sponsor of a new bill that could put many black owned radio stations out of business. And force others to abandon their commitment to provide free music, entertainment, news, information, and money losing formats like gospel and black talk.
This is Cathy Hughes, founder and chairperson of Radio One with an urgent call to our Radio Family.
The John Conyers Performance Tax Bill is the brain child of the foreign owned record industry who would receive at least 50% of the revenue that would be charged to radio stations in order for them to play music. The music that you now receive free from us - we would have to pay millions of dollars for.
And20in the midst of this economic depression, black radio stations simply do not have that financial ability.
There has been only one hearing on the bill and that hearing did not have any black ownership representation. Black radio owners and community leaders including Rev. Jesse Jackson, Rev. Al Sharpton, Dick Gregory, Tom Joyner, and myself have all begged Conyers to at least allow us the opportunity for a hearing. He has flatly refused.
We now ask you, our radio family, to assist us in saving the future of black radio. Please call or email or visit the offices of John Conyers today. His phone numbers are 202-225-5126 and 313-961-5670 and his email address isjohn.conyers@mail.house.gov
TELL HIM that you oppose this bill that would murder Black owned radio and the free music that you now hear on all free radio stations. In the midst of an American economic recession, it is not the right time to send millions of dollars to foreign owned record companies that don’t even pay taxes like you and me in this country. This bill is not in the interest of Black people! Please help us save Black radio!
WANT TO LEARN MORE? See below why it is IMPERATIVE that we act to save Black radio:
1 . The promotional value of free local radio airplay translates into significant revenues for artists and record labels:
According to the Recording Industry Association of America (RIAA), record sales in the United States in 2007 were approximately $10.4 billion;
Touring revenue in 2007 in the U.S. was approximately $5 billion;
The above figures exclude the several billion dollars derived annually from merchandise, songwriting royalties and licensing deals for commercials, films, etc.; and
Also excluded is the boost that U.S. popularity provides for foreign sales and concerts.
2. Local radio also actively promotes artists by:
Devoting considerable and valuable airtime to promoting artists’ concerts;
Featuring artist weekends
Providing opportunities for live in-studio performances; and
Creating buzz through on-air ticket and album giveaways, helping to drive concert and merchandising revenue.
The Honorable John Conyers, our 80 year old African-American Congressman is the sponsor of a new bill that could put many black owned radio stations out of business. And force others to abandon their commitment to provide free music, entertainment, news, information, and money losing formats like gospel and black talk.
This is Cathy Hughes, founder and chairperson of Radio One with an urgent call to our Radio Family.
The John Conyers Performance Tax Bill is the brain child of the foreign owned record industry who would receive at least 50% of the revenue that would be charged to radio stations in order for them to play music. The music that you now receive free from us - we would have to pay millions of dollars for.
And20in the midst of this economic depression, black radio stations simply do not have that financial ability.
There has been only one hearing on the bill and that hearing did not have any black ownership representation. Black radio owners and community leaders including Rev. Jesse Jackson, Rev. Al Sharpton, Dick Gregory, Tom Joyner, and myself have all begged Conyers to at least allow us the opportunity for a hearing. He has flatly refused.
We now ask you, our radio family, to assist us in saving the future of black radio. Please call or email or visit the offices of John Conyers today. His phone numbers are 202-225-5126 and 313-961-5670 and his email address isjohn.conyers@mail.house.gov
TELL HIM that you oppose this bill that would murder Black owned radio and the free music that you now hear on all free radio stations. In the midst of an American economic recession, it is not the right time to send millions of dollars to foreign owned record companies that don’t even pay taxes like you and me in this country. This bill is not in the interest of Black people! Please help us save Black radio!
WANT TO LEARN MORE? See below why it is IMPERATIVE that we act to save Black radio:
1 . The promotional value of free local radio airplay translates into significant revenues for artists and record labels:
According to the Recording Industry Association of America (RIAA), record sales in the United States in 2007 were approximately $10.4 billion;
Touring revenue in 2007 in the U.S. was approximately $5 billion;
The above figures exclude the several billion dollars derived annually from merchandise, songwriting royalties and licensing deals for commercials, films, etc.; and
Also excluded is the boost that U.S. popularity provides for foreign sales and concerts.
2. Local radio also actively promotes artists by:
Devoting considerable and valuable airtime to promoting artists’ concerts;
Featuring artist weekends
Providing opportunities for live in-studio performances; and
Creating buzz through on-air ticket and album giveaways, helping to drive concert and merchandising revenue.
Monday, May 11, 2009
Living The UnAmerican Nightmare
Poverty is still at an all time high in America. 39.9 million people live below the poverty line in America. Including 12.9 million children. According to the Bread for the World Institute 3.5 percent of U.S. households experience hunger. Some people in these households frequently skip meals or eat too little, sometimes going without food for a whole day. 9.6 million people, including 3 million children, live in these homes. The United States of America is one of the world's richest nations and we got families living in poverty. Everyday I drive pass a housing project filled with mainly black families. Living in poor housing conditions, some maybe getting assistance from the government for food and some maybe on public housing assistance but, if you walk about 1000 feet from that housing project there is a gated community of half a million dollar homes and town houses. You would think that you were living in surburbia. See that makes me ANGRY and if I feel angry i wonder what those families living in the housing projects feel? I wonder if anyone else is angry or even think about this same situation. If you ask me i think it maybe racially motivated. Does the government really care about it's citizens? Watching television doesnt make it any better. I saw President Obama spending $7,000 on a jungle gym for his children. When it's families loosing their homes, can't afford to pay rent for the month, lights got turned off because they had to buy food for their children, people living with no heat in their homes with winter temperature outside and the president is courtside at a basketball game with a beer or playing one on one with his assistant. This angers me terribly. I know the president can't make things better overnight but, does he really know the struggle of some AMERICANS? Does he really know what going on in the hood and what will happen if summer comes and there is still no jobs and unemployment continues to rise? Does President Obama really know the struggles of the American People? I dont think he does. Why is medication for senior citizens which is so needed for them so expensive but you can go to the corner store and pay $4 for a pack of cigarettes or pay $1 for a blunt? It's so easy to just kill yourself but, what about people on medication who need their medication to live and they cant afford it? Why is there still so many Americans without healthcare? Why do I have to pay $715.39 for a 5 minute ride to the hospital in the back of an ambulance truck? Why is it that 63% of african american children raised in a single parent home? why so many young mother's get $700 foodstamps a month and the government told my elderly neighbor he mad $2 too much in Social Sercurity and he didnt qualify for food stamps? Why milk cost the same as a gallon of fucking gas? Why do I pay taxes and I don't know where my money is going? Why do we vote to put government officials in a higher position when they do nothing for the american people? Why the government spend billions on a senseless war and war veterns are living homeless? Why People can't afford to live? Why one job dont pay you enough to pay all your bills at one time? Why when payday come around government take out more taxes and companies take out more insurance then what I actually get paid? Have you ever seen Uncle Sam? if so, what that muthafucka look like and why am I paying this son of a bitch and I don't know him? And once again what the fuck is he doing with my money? If he cant show me what he doing with my money why should i be paying him? Uncle Sam is a rich and heartless muthafucka getting all this bread and won't feed the hungry children living in poverty. I guess it's true the richer gets richer and the poor gets poor. I guess the millions of americans living below the poverty lines aren't americans cause we not living "THE AMERICAN DREAM"
Saturday, May 9, 2009
State of Hip Hop
What happened to the creativity and passion when it comes to HIP HOP? Does anyone care anymore? There are two questions that everyone is asking, "How do you feel about the state of hip hop? and Do you think hip hop is dead?" Well I cant speak for everyone else but I will give my opinions on this controversial topic. The state of hip hop in my opinion isn't what it use to be but, what people fail to realize is that "HIP HOP" is a culture, its a movement. The culture consist of rap music, fashion, dance, ect. Hip Hop isn't dead the muthafuckaz that represent hip hop is dead. What are these major labels going to do about it? I know!! Stop signing these bullshit ass artist. These labels are the reason the consumers aren't buying cd's no more, these labels are the reason artist are flopping, I blame the labels. The number one changer of the music industry is the internet. Now alot of people say change is good but it can also be bad so therefore there are some pro's and con's when it comes to the internet and the music industry. Let's start with the bad news. The bad news about the internet is you have alot of bootleggers and alot of music leaking through the internet before the official release dates by the labels. There is some good news when it comes to the internet and the music industry. The internet is another avenue for revenue. It allows the real supporters of music another avenue to purchase good quailty with sites such as, itunes, rhapsody, amazon, ect. So what can labels do to bring the music industry back to where it use to be? They're going to have to sit down with these computer companies and find ways to stop bootleggers, leakers from stealing money out of their pockets.
Enough with the bullshit ass artist too. What happen to the lyrical content? Artist don't have any substance to what they say with their lyrics anymore. Once again, HIP HOP is not dead. The muthafuckaz that represent the movement is dead. Shout out to my favorite rappers tupac, biggie, jayz, jeezy, talib kweli, mos def, common, kanye, t.i, trick daddy, and all the real muthafuckaz who saying shit in they rhymes. Oh yea, and last but not least ME cause I am my favorite rapper
Enough with the bullshit ass artist too. What happen to the lyrical content? Artist don't have any substance to what they say with their lyrics anymore. Once again, HIP HOP is not dead. The muthafuckaz that represent the movement is dead. Shout out to my favorite rappers tupac, biggie, jayz, jeezy, talib kweli, mos def, common, kanye, t.i, trick daddy, and all the real muthafuckaz who saying shit in they rhymes. Oh yea, and last but not least ME cause I am my favorite rapper
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