Things You Need to Know About the Residential Loan Programs

There are hundreds of different residential loans in the financial markets. As a first-time home buyer, you might get so confused about the complicated financial terminologies. To choose a right type of loan is crucial for your property purchases. Let me introduce you to the most common residential loan types.

OPM.Other people’ money (OPM) refers to the money that does not belong to you, but you borrow from other people. The sources of OPM could include bank loans, government loans, hard-money lenders, small-business loans, and so on. Borrowing money is always risky, but it allows you to double or triple your investment returns. You can also gain controlled of a property with far less equity you have put in.

Interest-only mortgages. With an interest-only mortgage, you pay only interest for a certain number of years, usually 3-5 years, and pay a lump-sum payment at the end of loan life. It sounds like a good deal for people who short of money and purchase houses in a property appreciation environment. However, the interest-only loans are adjustable-rate mortgages (ARMs). Instead of paying a fixed amount of interest with a fixed interest rate, interest-only loan usually has a premium over the market index. If the index rises, the interest rate charged on your loan will rise too.

ARMs.Adjustable-rate mortgage loans (ARMs) are flotation loans. ARMs are tied to an index rises or falls based on government loans. Several indexes are commonly used; they are usually Treasury index, the London interbank Offered Rate (LIBOR), the Cost of Funds Index ( COFI), the Prime Rate, various T-Bills, and the Fed Funds Rate. For example, if the interest rate of your loan tracks the LIBOR, when the LIBOR rises to 5%, you will pay 5% plus the premium you have agreed on the loan contract. ARMs are often easier to qualify for, but the cost of your debt is therefore, higher than the traditional mortgage.

Hybrids.A hybrid loan is a combination of an ARM and a fixed-rate loan. With a hybrid loan, you can pay fixed-rate interest for a certain number of years, after that, you will have to pay floatation interest, i.e. the interest rate is tied to the reference index.

Government secured loans.Even though the government is not usually in the business of lending, government provides the guarantees for the purchases of owner-occupied properties. The FHA ( Federal Housing Authority) is the program that federal government used to promote the American Dream of homeownership. FHA programs are primarily available for the first-time home buyers. However, because FHA programs are government-secured financing, if you can use these programs to purchase the residential properties, you can be more flexible on capital in your other real estate investments.

The bottom line.

There are advantages and drawbacks in different types of loans. There is no one type of loan better than the other, estimate your own financial situation and the goal of your property purchases, find out the best loan type before you rush to a real estate investment.

5 Deadly Marketing Sins: Do You Make These Mistakes In Your Online Marketing?

The worst thing you could do in your marketing is commit one of these sins I’m about to share with you.

As a market strategy professional and copywriter, I have first-hand experience of how devastating these 5 common errors can be and the most alarming thing is these crimes are constantly being committed by rookies and even some more of the “gurus” (I hate that term).

After working with over 30+ students in helping them get their business on track, I’m going to highlight the top 5 most common sins that cost you money

So if you’re struggling to make any long term money online,chances are you’ve committed one of the following 5 deadly sins, but don’t worry because once you know the problem it becomes much easier to solve.

So sit up, peel your eyes and lets look at some of these deadly sins that could be killing your marketing efforts.

Sin#1 Direct linking

I see this sin being committed an awful lot in marketing, when people join my coaching group to become better marketers, even during the qualifying stages, it’s easy to see the “criminals” from some of the answers they give…

But after some business diagnostics, this crime was easily one of the most common.

Direct linking from an ad, straight to sales page, ranks high on this list of sins.

The blood of any business relies heavily on having good leads that can be converted into customers, some people go as far as to say that you don’t actually have a business until you acquire your first customer, now although direct linking can make you some sales, you will lose far more than you gain in the long term, because sales aren’t very common first time round, they require additional follow up to convert your leads into customers.

On average every 100 people that will eventually buy your stuff only 19 people will buy first time round, that means a potential 81 additional sales are lost by failing to capture the lead first.

The standard practice for effective marketing is to capture the lead first and then redirect your prospect to your offer, so you can still make a sale immediately, but you now have contact details to follow up, as a sound backup plan.

Sin #2 Upsell

Following on from the first sin that we just discussed, this next sin is a simple error but very common error, and that error is failing to have an upsell offer.

According to scientists, humans have what is called a dopamine release which causes people to feel good when they buy stuff (this is where the term retail therapy comes from) this makes people very impulsive and can cause them to buy more than they originally planned to, so when people are “hot” let them buy.

The worst thing you could do is deprive them from buying more stuff and this why an upsell sequence is so important, for the same amount of time and effort you could dramatically increase your bottom line profits.

The key to repenting this sin, is having higher ticket offers that complement the last offer, so it’s still relevant to your prospects problem.

Lets take a look at what a sales funnel looks like with and without upsell offers.

Without upsell

Let’s say we spend $300 and generate 375 leads.

Out of the 375 leads, 200 buy our product at $30.

200 x $30 = $600.

$600 – ad cost (300) = $300 total profits.

We’re in the profits, so we can’t feel too bad.

But let’s take a look at what it looks like if we include a sales funnel to our marketing.

With upsell

OK this time we’ve got an upsell in our sales funnel.

So we spend the same amount of ad dollars ($300) and get the same amount of leads (375 Leads).

And the same 200 people buy our product at $30.

But this time, they are sent to an additional upsell offer priced at $100.

Now of the 200 people that bought our first product.

10 people buy our second offer priced at $100.

10 x 100 = $1000.

(first prod sales) $600 x $1000 (upsell sales) = $1600.

$1600 – $300 (ad cost) = $1300 profits.

So for no extra work on our part, we were able to generate an additional $1000 for the same cost.

Now you can see how powerful the upsell can be, this should always be used in your marketing.

Sin #3 Failing to follow up

Of all the students I’ve had in the last couple years, I can think of about 2 who actually have a follow up in place, but this sin is rife in the online marketing world, with many marketers failing to implement one or having a really bad one in place (which in my eyes is just as bad… ).

Think of your auto responder as your virtual sidekick, it allows you to get the job done without being around, giving you more time to do everything else, this is not something that should be overlooked as some sort of extra credit assignment, this is a vital cog in a long term online business and good automation to say the least.

As I discussed in sin #1 on average only 19% of your buyers will buy first time, which means the rest have to be sold by a follow up process.

When people don’t buy first time round, it’s usually for a couple of reasons.

1) Your prospect is not sold on your offer

2) Your prospect is not convinced by you

So for this reason we use the follow up process to build a relationship with our leads and show them that not only can we help them, but they can trust us.

this can be achieved by offering lots of value in your emails, videos and even some webinars.

To be honest, some leads will never buy from you regardless of how much value and free content you provide… that’s just the numbers game.

But you can seriously increase your bottom line by creating a strong followup system that states who you are, how you can help them and then actually helping them.

Sin #4 Trying to appeal to everyone

Nothing can end an ad campaign before its gets started like committing this sin, it’s so frequently used online, it is the single biggest mistake you can make as a serious marketer.

Trying to appeal to everyone is easily one of the most common errors on the list.

because naturally we want to make the most money, common sense tells us the more people we can get to view our offer, the more likely we are to make a sale.

But this is only half the truth, although the laws of averages tells us that the more people that see our offer, the better chance we have of making a sale.

In actual fact, the more people that see our offer in a specific niche for our ideal prospect increases the likelihood of making a sale.

This goes back to the basic principal of message to market match.

We create the right message and attach it to the right people and “presto”, the bank balance grows.

So firstly we need to focus on who would be a perfect fit for our product or service, then we need to create a message that would appeal specifically to that group of people.

Once we have built a “tribe”, naturally we begin to expand our business by reputation and word of mouth, its important to specialise in one core area first and then expand into other areas.

Here’s an example to further demonstrate my point.

Imagine this…

A mother of a new born wants to shift the baby weight.

She’s looking for a personal trainer.

She comes across 2 personal trainers.

1) Personal trainer helps new moms lose weight.

2) A personal trainer who can help anyone.

Now naturally she is more drawn to trainer number 1, because its better suited her situation.

Lets look at another example to drive this point home.

A 42 year old woman is unhappy with her shape and wants to shift some pounds.

She seeks a personal trainer and comes across.

1) Personal trainer who works with 40+ women.

2) Personal trainer who work with elderly people.

Again the prospect is more enticed by trainer #1 because it’s a better fit.

This sin isn’t specific to weight loss niche either, this is just effective marketing.

Specificity counts and can be the difference between highly qualified leads and little to no leads at all.

Sin # 5 not selling what you’re really selling

Now the last sin will make it really difficult to get some traction in your marketing efforts.

The key to effective marketing is finding out your target market.

1) Demographic information (age, gender, marital status, kids etc).

2) Psychographic information (thoughts, feelings, beliefs etc).

Then creating a marketing message that appeals to your prospects “core desires.”

If you think you’re selling the product or service to your prospect then you’re wrong.

The big sin being committed is the lack of focus on the things that really matter… the benefits.

When you promote a product or service, you’re promoting the solution to the problem not that product itself.

Truth be told, your customer could care less about how it’s made and where it comes from.

Your prospect simply wants the end results.

Talking solely about the technical stuff (such as features, design, source) does little to win over your prospect because they don’t care, focus on the beneficial goods of the product.

Failure to realise this little truth can leave your marketing message “limp and lacking in appeal.”

Now on the few odd occasion when it’s necessary to include the features, make the feature tie in with the benefits of the product.

For eg.

Instead of “made from natural extracts”

Include a benefit that brings, “made from natural extracts, so you can lose weight quickly and safely.”

See what I did there…

Now the prospect knows why the feature is useful and gives the product or offer more appeal as a result.

Mastering this golden nugget will have a substantial increase of leads and sales for your online business.

And there you have it, now we have covered 5 of the most common marketing sins I see being committed by rookies and seasoned marketers.

Avoiding these sins in your own marketing will help you increase leads and sales as a result, so don’t just read this article… implement.

Until next time

Ezekiel S Marshall

The One Thing That Everyone Asks About Internet Marketing

Internet marketing consists of anything you do to earn money online. Regardless of whether you’re selling you own products or services online or earning commissions by promoting other people’s products you need to use internet marketing. And the one thing that everybody always asks is:

“How does internet marketing work?”

Internet marketing works when you have the correct mix of strategies to reach your potential customers. There is not a set formula that will work for every person, product or service. Let’s take a look at the top 5 internet marketing strategies.

1.Search Engine Optimization (SEO)

Search Engine Optimization (SEO) is the process of managing the content on your website so that it appears in the search engine results. Your content needs to contain the keywords that people are going to search for when looking online for the type of products or services that you offer. Other SEO strategies include things like obtaining backlinks from other websites, superior website layout, and consistently updating your website with top quality content.

2. Email Marketing

Email marketing attracts new prospects, maintains and develops relationships with current ones and up-sells or cross-sells your products and services. To build up your database of email addresses, you need to offer something of value to your prospects in return for their email address. This could be an eBook, newsletter, report or video course. You will need efficient email marketing software, like an autoresponder, because as your database grows, you will not be able to do it manually.

3. Social Media Marketing

Social media provides an incredible opportunity to connect with your target audience, increase your exposure, generate leads and bring in sales. Social media websites bring website traffic directly to your website, and when people check out and share your material it will register with the search engines and improve your search engine optimization.

4. Content Marketing

Content marketing is about gaining understanding, confidence and a relationship. It is the process of communicating with your customers and leads without the need of the hard sell. The foundation of content marketing is that as you deliver reliable and valuable information to potential buyers, they will inevitably become loyal and regular customers.

5. Affiliate Marketing

Businesses and product owners like affiliate marketing because they get their affiliates to do their marketing for them. If an affiliate makes a sale, the product owner will pay them a commission. But if the affiliate sells nothing, the product owner pays nothing. Both for the product owner and the affiliate can benefit from this internet marketing strategy and when done correctly, it can be extremely profitable for both parties.

Why Email Marketing Is Less Effective Than Ever Before, And What You Can Do About It

Ask most anyone who’s been online for any length of time if open rates on broadcast emails have gone down and the majority will give you a resounding YES!

By some accounts email marketing is in proverbial toilet. Yet, there are others who say email marketing is still one of the most effective methods they use to promote products and services.

So who’s right; the majority or the handful who swear email marketing is alive and well?
Actually, both. Here’s why.

The majority of people who use email marketing are still throwing mud on the wall and hoping something will stick.

Those who are getting incredible open rates are doing something the others are not; segmenting more than ever before.

You’ve heard how important it is to have a “sweet spot” niche market, but have you heard you need to go deeper into the process?

Case in point… The Women In the Pet Industry Conference. By far, it is one of the best conferences I’ve not only participated in, but also presented at.

As the title indicates, it is for women – and a few brave men. Additionally, the majority of those in attendance are entrepreneurs. Some are in manufacturing. Others are dog trainers. Still others are service providers such as Debra Hamilton, attorney at law, who is committed to educating pet owners on the ins and outs of making sure you and your pets are protected in case of accidents, illness, death and any unforeseen circumstance life may throw your way.

Although a woman who owns a multi-million dollar company that manufactures dog doors is in the exact same industry as someone who has a $100,000 dog training business, how you market to each is likely different; or at least it should be.

It’s the same with your niche market; there is likely an umbrella industry that has multiple segments within the industry.

Let’s say your market is the dental industry. Would you market the same to dentists as you do hygienists as you do office managers?

If you market the same to each segment there’s a great chance your email open rates are minimal at best. If you segment your marketing, there’s a great chance you’ll have a much better open rate by not throwing “marketing mud” on the wall and hoping it will stick.

According to one report by MarketingSherpa, 32% of marketers say segmenting their email database is one of their organization’s top objectives, while 52% of marketers say they have a great need to improve email database segmentation.

Not all buyers in an industry are alike. Nor do all buyers have the same buying cycle. Nor will they all buy the same thing.

In my business, I have various levels of investment my buyers make. There are those who are very seasoned, have been in business for years, make a great living and need something very different than those who are just starting out.

More seasoned entrepreneurs may choose my private consulting services over a $27 eBook. Or they may find a small group coaching program is far better for their needs than a $7 report.

What an entrepreneur who has been in business for 20 years needs is very different than the person who is just starting out, doesn’t even have a DBA and is trying to grow their business on a shoestring budget.

What the entrepreneur who has a wealth of knowledge looks for when they create multiple streams of revenue is night and day from someone who wants to create their first eBook.

So before you jump on the bandwagon of those yelling from the mountain tops that email marketing is dead, perhaps you need to look at your marketing behaviors and your overall messaging. Are you lumping all your subscribers into one group over and over? Or are you fine tuning what you’re doing in order to more fully serve your market with your messaging?

So what are you doing to fine tune your marketing efforts? Are you clear on the needs of the various segments of your market? If not, isn’t it time to make the necessary changes in order to have a laser beam approach to what you do? I daresay it is.