My Vision of Multiple Streams of Income, Part 2

Written by Peter Dobler

Copyright 2005 Peter Dobler

A while back I wrote a little article called “My Vision of Multiple Streams of Income”. After receiving several emails asking for a sequel and sharing more real life experience I decided to give an update on my journey with SFI and Stone Evans’ PIPS system.

As I mentioned in my last article I went off a good start with this system and I honestly can attest it really works. The only negative thing is, if you want to call it this way, that I put a lot of effort into this project. The system is designed to run on autopilot, that’s great. But until you’ve reached a certain level of visibility, you need run your promotions aroundrepparttar clock. I’m almost there.

As an example: I run several Google AdWords campaigns to promote my website and SFI. The reason for this is simple. This is a highly competitive market and achieving high rankings withrepparttar 145284 major search engines takes a long time and due torepparttar 145285 rough competition you won’t be able to reachrepparttar 145286 top without a few backdoor tricks.

So I tookrepparttar 145287 route of actually spending some advertising money and in return I have a wide spread exposure. Rememberrepparttar 145288 baseball movie with Kevin Kostner “Field of Dreams” withrepparttar 145289 famous remark “If you build it they will come”? Unfortunately this is no longer true forrepparttar 145290 internet.

Back torepparttar 145291 topic of controllingrepparttar 145292 advertising cost with Google AdWords. I closely track my expenses and I keep a lit on it if it gets too high.

The tricky part is to decide when it is too high. I don’t have an answer for this. For me it means whatever I’m comfortable with. Because you’re building residual income and you’re not aiming for a single sale. This is hard to gauge. Conversion rates are useless, although my conversion rate so far is over 20%. That is pretty good from what I read about this topic. What this number means in subsequent income has to be determined.

Accounting for Affiliate Marketers

Written by Charles Waters

If you are an affiliate marketer, then you are in business. Therefore, you should treat it like a business. Keep in mind that Linkshare, Clickbank, Commission Junction and allrepparttar other affiliate marketplaces are going to report your earnings torepparttar 145283 IRS.

Each of them requires that you provide a Social Security Number or EIN number when you apply with them. These numbers are used to report your earnings. Atrepparttar 145284 end ofrepparttar 145285 year, you'll receive a 1099 form which isrepparttar 145286 IRS earnings document given to Independent Contractors.

Since you have to pay taxes on your income, you should take care to make sure that your income is properly calculate. Remember, gross adjusted income is going to berepparttar 145287 total amount that you earned - your expenses. For this reason, you really need to keep track of all of your affiliate marketing expenses.

Keep receipts and track allrepparttar 145288 following:

* Web Hosting Costs

* Affiliate marketing tools (such as your WordTracker membership fees,repparttar 145289 cost of products like Adwords Analyzer, etc.)

* Any PPC advertising that you purchase.

Don't do as I have been prone to do and wait tilrepparttar 145290 end ofrepparttar 145291 year before you start putting these numbers together. You'll forget many and you won't be able to gain access to others.

For example, with PPC advertising, Google seems to keep records online forever. Great. But Overture only keepsrepparttar 145292 last 90 days and you can't - I repeat - You CAN'T get those records older than 90 days. (Ask me how I know :(

Cont'd on page 2 ==> © 2005
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