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Archive for March, 2008


Spendthrifts Unite!

Monday, March 31st, 2008

This quarter, according to a new number from TrimTabs Investment Research, we’re poorer than we were a year ago. What makes this number significant is that, unlike other statistics used to gauge the health of the economy, it measures people’s ability to spend by including oft-overlooked sources of cash – like capital gains from stocks. And what makes it so useful is that it takes into account the cash people get from selling property or by extracting equity from their homes.

This stat may be the hammer that bangs the final nail into the recession coffin.

With consumers having less cash to spend, sales of things people don’t really need will be affected the most. Splurging on jewelry, cameras and electronics, nice cars and clothes, and dinner at pricey restaurants will be done only by the very wealthy, reckless, or clueless. On the other hand, retailers of inexpensive cars, food, and clothes should be affected the least.

Invest accordingly.

[Ed. Note: ETR's Investment Director, Andrew Gordon, is the editor of INCOME, a monthly financial advisory service that uncovers income-generating stocks that promise safety (first and foremost), along with much-higher-than-average profit potential.]

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Why Cardio Doesn’t Work

Monday, March 31st, 2008

Cardio exercise is perplexing. In theory, it should work the same for everyone. But it doesn’t. Some people do cardio six hours, nine hours, or more per week, and still have belly fat to burn. It works just fine for others.

To get some insight into the reason for this, British researchers studied 35 overweight men and women who weren’t previously exercising. Subjects did cardio five times per week for 12 weeks. On average, they lost a respectable 8.2 pounds. However, the variance between individuals was huge. One of the 35 subjects lost a staggering 32.3 pounds, while one actually gained 3.74 pounds.

The scientists think they know why.

They classified the subjects into two groups: those who lost the least amount of weight (the "Compensators") and those who lost the most (the "Non-Compensators"). Turns out the cardio exercise made the Compensators hungry. As a result, they wound up consuming more than 250 extra calories per day… all but wiping out their weight-loss efforts. The Non-Compensators, though, did not experience an increase in their appetites.

If your cardio program is not working for you, check your post-exercise appetite level and calorie intake to see if you are a "Compensator." If you are, you might be better off with a program of high-intensity resistance and interval training.

[Ed. Note: Fitness expert Craig Ballantyne is the creator of the Turbulence Training for Fat Loss system. For a free online source of information, motivation, and social support to help you improve your health, lose weight, and get fit, sign up for ETR's free natural health e-letter.]

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Worth Quoting: Gary North on Career Insulation

Monday, March 31st, 2008

"One of the marks of an insecure employee is that he tries to build layers of busy-work insulation around his job. He tries to make it appear as though it would be a lot of trouble to replace him.

"The problem is, this keeps him from getting promoted. He locks in his job for a while, but that means he locks himself out of a promotion.

"Then a change in technology that makes his tasks easy to reassign to a low-paid worker leads to the termination of his career. In a high-tech world, this is the wave of the future. ‘I can get it done cheaper in India’ is the slogan of this brave new world.

"To survive these days, a worker should make himself easily replaceable. He should go out of his way to recruit and train a potential replacement – maybe two. He should let his superiors know this. That way, if a job higher up the chain of command opens up, the company can award the job to him. It’s less hassle to promote him.

"It is not possible to hide for long behind a wall of make-work insulation. Technology will not allow it. It is best to plan for the future and spend your time preparing for the promotion rather than hiding behind unnecessary make-work. You can’t climb up the ladder if you’re locked to the lower rung."

(Source: Gary North’s "Tip of the Week")

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It’s Good to Know: How to Give Great Answers in Business Meetings

Monday, March 31st, 2008

The next time you are in a meeting, performance review, or job interview, try this "stalling" technique if you are asked a tough question: Take a sip or two of water or coffee. Then use those few seconds to formulate your answer. You will, of course, have prepared for the meeting, but the short pause will allow you to collect your thoughts and phrase them well.

(Source: Web Worker Daily )

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How Long Should a Sales Letter Be?

Monday, March 31st, 2008

Issue #2317

  • WEALTHY: Say goodbye to life’s luxuries – at least in your portfolio (Andrew Gordon)
  • HEALTHY: All those hours at the gym could make you eat more (Craig Ballantyne)
  • WISE: Richard Armstrong on marketing copy

ALSO IN THIS ISSUE:

  • Do your customers need to know … or do they want to know? (Michael Masterson)
  • A "Tip of the Week" from Gary North
  • It’s Good to Know… how to give great answers in business meetings
  • Add "coign" to your vocabulary

(more…)

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Word to the Wise: Coign

Monday, March 31st, 2008

A "coign" (COIN or KWOIN) is, architecturally speaking, a projecting corner used for observation.

Example (as Shakespeare used it in Macbeth): "Smells wooingly here: no jutty, frieze, / Buttress, nor coign of vantage, but this bird / Hath made his pendant bed and procreant cradle: / Where they most breed and haunt, I have observed, / The air is delicate."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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How Long Should a Sales Letter Be?

Monday, March 31st, 2008

Sales letters – how long should they be? In this age of multitasking and the Internet, isn’t it more sensible for marketers to send short ones to prospective customers?

That’s the question posed by Connie Prin, an ETR reader in Grand Rapids, MI who is working on completing the AWAI copywriting program.

"As a decently educated busy parent and community volunteer trying to build a new career, I cannot, do not, and would not invest the amount of time in reading sales letters that often come to resemble written ‘infomercials,’ whether via Internet or direct mail. Only for this copywriting program do I suffer through as many as I do. MORE and more people must share this same perspective in dealing with increasing competition for our attention in this era of the ‘information availability’ explosion.

"Even Tim Ferriss, author of The 4-Hour Workweek, whose writing you featured a while back in some issues of ETR, advocates nixing newspapers and uninvited e-mail completely in order to take control of productively scheduling your time.

"Wouldn’t a more effective style of copywriting concise the sales message to a page or two? Unless your intention is that more people base a letter’s credibility (and thus, their order) on the amount of content rather than actually having to read the whole thing.

"My gut tells me in order for people to read through them, effective letters will have to be shortened in the overall picture. You and your successful team know far more than I – but I can’t be that wrong about this… or can I?"

The answer, dear Connie, is yes, you are wrong. At least when it comes to want-to-know information products.

Let me explain.

There are two kinds of information products that can be sold by mail (posted mail or e-mail): need-to-know products and want-to-know products. The need-to-know products would include information about food, clothing, fertilizer (for gardeners), auto parts (for mechanics), labor law case analyses (for labor law lawyers), etc. The want-to-know products would include just about everything Early to Rise sells: how-to information on becoming healthier, wealthier, and wiser.

Do you see the difference?

Need-to-know products don’t need long copy because the customer needs them. In order to sell a need-to-know product, the copywriter has to do two things: establish the product’s USP and make the offer irresistible. You can do those two things relatively quickly – usually in two pages or less. That’s why need-to-know products are so often sold by catalog and by space ads – two direct-marketing methods that don’t give the copywriter much room.

To sell want-to-know products, you need more length. That’s because you have to do something you don’t have to do with need-to-know products: you have to stir up a desire for the product where none existed. People don’t actually need another book, newsletter, or CD collection on negotiating or investing. But when a good copywriter gets finished talking to them (via a long sales letter), they think they do.

It’s counterintuitive, but it’s true: When it comes to want-to-know products, longer letters usually work better than shorter ones. That has always been true and it’s still true today – even with e-mail sales letters.

The feeling you have is based on logic and your own experience as a consumer. You are very busy. You don’t have time to read long letters. You throw most of them in the trash or delete them. Like Tim Ferriss, you are annoyed by all this long copy. So if you hate long copy so much, doesn’t everybody?

Well, yes! Everybody hates long copy. At least that’s what everybody says. But the truth is that though we think we don’t like long copy, we respond to it. If you have bought any want-to-know products in the past, Connie, you probably responded to a long sales letter – even though you don’t like them.

I used to do focus groups with my clients’ customers. I would ask those people which they preferred: short sales letters or longer ones. They all said they preferred shorter sales letters. Yet they had all become our customers by responding to the longer ones my clients were sending out!

I have personally overseen at least a hundred long copy vs. shorter copy tests. When the leads were the same, the long copy always did better.

I had Jason Holland, my research assistant, contact three of the top copywriters working today and ask them "How long was your best-selling sales letter?"

John Forde said: "My most successful promo this year, measured in subscriptions sold, clocked in at 32 pages. And this, by the way, is a promo I actually wrote seven years ago and have been revising and updating ever since. It’s added thousands of readers to a resource-investing newsletter, and it’s made me a pile of cash. I have a 24-pager that’s done about $1.3 million since the start of 2008. This one, I probably could have written shorter, but not by much." 

Mike Palmer said: "The best package I wrote in the past year was a 52-page bookalog, which translates to at least a 25-page letter. You know, I hear this all the time from new copywriters – ‘Why can’t we write shorter copy?’ One important reason, I tell them, is because good copy must ’startle’ your reader with an idea he’s never heard before. That’s the only way to have a breakthrough promotion. And an idea that truly startles your reader takes a lot of explaining… proof… answering objections. You simply need a lot of space to get your point across."

Paul Hollingshead said: "My best mailing recently was a financial package that ran about 22 pages. In fact, when I look back at most of the financial packages I’ve written, they typically fall within the 20- to 24-page range. The main reason, I think, is because that’s how long it takes to get in all the needed elements of a strong financial sales letter – your promise, your credibility, the track record, the offer, bonuses, and whatnot. Also, I tend to write i n a more conversational ‘chatty’ tone, which can lengthen a letter. And I make an effort to keep paragraphs very short so there’s a lot of ‘white space’ in my copy for easier reading. "

You see, Connie, direct-response marketing is not about fitting your sales pitch into the small amount of space most people will read. It’s about finding the one person in a hundred who will give you the time you need to sell him.

Have you ever walked down a city street and seen people canvassing for some charitable, political, or religious cause? What do they do? They say something – a short, catchy sentence – to get you to stop and listen to their pitch. In most cases – perhaps 99 out of a hundred – passersby won’t give them the time they need to make the sale. They listen for a few seconds and then shake their heads and go on. But those canvassers are pros. They don’t worry about the people who don’t have time for them. They focus on the ones who do stop and listen, because those are their prime prospects.

Imagine if, instead, they tried to fit their entire sales pitch into the 10 or 15 seconds they could get by following a prospect partway down the block. What chance would that strategy have?

It all boils down to this fact: the Internet has changed the world, but it has not changed human psychology. If you are going to convince someone that he needs something that he really doesn’t need… you need time to do it.

So, Connie, don’t resist this part of the copywriting program. Go with it. Later, after you’ve proven yourself as a master of long copy, you can try shorter copy and see if it works.

By the way, you should know that copywriters who can write long copy (i.e., want-to-know copywriters) make about twice or three times the money that need-to-know copywriters make. Keep that in mind as you go through the AWAI program.

[Ed. Note: Discover how to master one of the most profitable skills you can develop with ETR's Direct Marketing Masters Edition program.

And learn hundreds of copywriting techniques from master copywriters in AWAI's Accelerated Program for Six-Figure Copywriting.]

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Using Your Emotions the Right Way for Investing

Saturday, March 29th, 2008

Figuring out when to sell a stock is never easy. And most experts wisely recommend keeping your emotions out of the decision. Of course, every rule has its exceptions. So let’s revise this one.

Edwin Lefevre, one of the greatest investors of all time (he made a fortune back in the 1920s) routinely used fear and hope – two emotions that often lead investors astray – to determine whether to get out of a trade or stick with it. But he used them in a very specific way. Here it is…

  • If a stock was losing money: Instead of hoping it would turn around, he would fear losing more money and sell out of his position.
  • If a stock was making money: Instead of fearing it was hitting a high, he would hope to make more money and hold on.

This approach gets you out of stocks that can keep dropping in value. It also keeps you in stocks that can continue rising. Of course, once that winning stock starts losing money and you "fear losing more money," you sell your position and capture a profit.

Edwin used his strategy strictly for short-term investing (any trade that lasts under a month). But you could still apply it to longer-term investing. All you have to do is set a stop-loss point at your personal "pain threshold." That is, if it hurts when a stock drops 10 percent from where you bought it, use 10 percent as your sell point. If it hurts when a stock drops 25 percent, use that as your sell point.

[Ed. Note: Charles Delvalle is a contributing editor to ETR's Investor's Daily Edge newsletter, and a regular contributor to INCOME. INCOME lets you in on the safest high-dividend-paying companies, with the goal of providing you with a total return (dividends plus capital gains) of at least 14 percent per year.]

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6 Steps to Making a Good Impression

Saturday, March 29th, 2008

Issue #2316

  • WEALTHY: Getting emotional could make you money (Charles Delvalle)
  • HEALTHY: A common "cure" that could be causing health problems (Dr. Joe McCaffrey)
  • WISE: Cullen Hightower on putting your best foot forward

ALSO IN THIS ISSUE:

  • Why achieving your goals is a little like dating (Bob Cox)
  • Finding a needle in the ETR haystack (Rick Maggio)
  • It’s Fun to Know… about the 3,000-mile monarch butterfly migration
  • Add "labile" to your vocabulary

(more…)

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6 Steps to Making a Good Impression… Every Time

Saturday, March 29th, 2008

Remember when you were a freshman in high school? When you were headed out on a first date, what was your main concern? I’m guessing wanting to make a good impression ranked high on your list.

So to prepare for making that good impression, you may have gotten a haircut… put on a new outfit… practiced a few witty remarks… and reminded yourself to smile at your date as much as possible.

If you think about it, preparing to make a favorable first impression is something you do all the time. You do it when you interview for a job, meet potential clients, have that first dinner with your fiance’s parents, and in many other situations.

Making a good first impression begins with a conscious decision to put your best foot forward. And then, whenever and wherever possible, you must make the effort to live up to that first time.

When you stop deciding to put your best foot forward and quit making the effort, your image will suffer and your financial or social goals will go off track. And here’s a harsh truth: It is much harder to reclaim a favorable impression than to sustain one.

Let’s say you applied for a job and are confident you made an excellent first impression on the Human Resources director. You wore your best suit, you researched the company to prepare for your interview, and you were courteous and friendly when you met. You promptly followed up the interview with a thank-you note. You are happy, thinking you have done all you can to secure the job. So you begin arranging your life around the job offer you know is forthcoming. However, it never arrives. Instead, you receive: "We selected another candidate. Thanks for your interest."

What happened? Maybe you were rude to the director’s secretary. Maybe the handwriting on your thank-you note was illegible or your resume was full of typos. You may have been well-prepared and well-dressed. You may have had all the right answers during the interview. But if you made other impressions that didn’t measure up, that great first impression you worked so hard on is gone.

Successfully achieving your goals includes having people think well of you over and over again. To maintain and reinforce a positive first impression, follow these simple guidelines:

  1. Know what you want from each new encounter.
  2. Greet everyone with a smile. Smiling relaxes people and draws them to you.
  3. Feel positive about yourself – and look like you do. Whenever I have to make a good impression, I say to myself "It’s show time!" and put on my happy face.
  4. Use your friendly voice. Saying "Hi, nice to meet you" with enthusiasm goes a long way.
  5. Extend your hand first, and give a firm handshake. I have met people who shake hands so weakly that all I can think is "What are they afraid of?"
  6. When having a conversation, lean slightly forward. This shows that you are interested in what the other person is saying.

But it’s not only important to make a good first impression. You have to make a good second impression too.

Here’s a personal story that illustrates what I mean…

I became a private pilot in March 2006. That was one of my proudest personal achievements.

There are a small number of flight schools in my area. I went down to the closest one to check it out. They seemed legitimate: They had quite a few students. They had training airplanes for their students. And they had an adequate staff to meet my needs. Based on the limited research I had done, I determined that their price was fair. Overall, I got a good first impression.

It was the second impression that didn’t make it.

You see, during the course of my training, I started noticing things that made me uncomfortable about the way they did business. For example, though they really wanted as many training planes in the air as possible (because that’s how they made their money), they appeared to neglect such vital things as maintenance and customer satisfaction.

I continued despite my discomfort. Eventually, I completed my training. After the FAA check ride, I earned my private pilot’s license. However, since that day, I have not gone back to lease one of their airplanes or take lessons for advanced certification. Although I achieved my personal goal (attaining my private pilot’s license), the negative "second impression" the school left on me prevented them from achieving what should have been their primary goal: to turn me into a long-term customer.

When a private pilot receives his license, the learning process is only beginning. I still had a lot of money to spend on completing my education.

I found another training school, have since purchased my own airplane, and use this new flight facility for all my aviation needs. To my delight, this has been an extremely rewarding experience. I enjoy spending my time (and money) at an establishment that exhibits a warm, welcoming, and supportive environment.

The contrast is shocking. Both businesses make the effort to give off a good first impression… but only one works to maintain that good impression every time. And – not surprisingly – I prefer to patronize the company that cares about making a positive impression over and over again.

Keeping yourself in the best possible light isn’t always easy. But, as I said, it’s harder – maybe even impossible – to restore a tarnished image.

Remember: Your power to impress or alienate others is a matter of personal choice.

Success is about your willingness to keep the big picture in mind every step of the way. Choose to make that extra effort and go that extra mile. In both the short and long run, you will be happier and accelerate the achievement of your goals.

[Ed. Note: Robert L. Cox is the creator of The Billionaire Way and is the "voice" of ETR's Total Success Achievement program. Get weekly motivational messages and twice-monthly teleseminars full of proven advice to help you stay on track with your goals and push past any obstacles in your path. Learn more here.]

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Beneficial Bacteria

Saturday, March 29th, 2008

Do you think bacteria are evil – nasty microscopic things that do nothing but make us sick? Many people do. And they think we’d all be better off if bacteria were wiped off the face of the earth. 

Nothing could be further from the truth.

Good Types of Bacteria
Most strains of bacteria are harmless… or even beneficial. They peacefully co-exist with us the vast majority of the time. In fact, there are normally more bacteria in your colon then there are cells in your body. 

Researchers are just starting to unravel the importance of normal bacteria to our health. Meanwhile we know that things go wrong when antibiotics take out the good with the bad.

Antibiotics don’t discriminate between bacteria that are causing disease and bacteria that are doing a good job for us. You may be taking an antibiotic for a skin infection, but the antibiotic doesn’t just go to the area of infection. It kills any bacteria in your body that are sensitive to it. This causes problems in a couple of ways. 

First, it allows for the development of bacteria resistant to the antibiotic. 

More immediately, you may experience diarrhea, a yeast infection, or a colon infection caused by Clostridium difficile. (Clostrium difficile – "C diff" in medical jargon – is a spore-producing bacterium that can overgrow and cause disease when normal bacteria in the bowel are disrupted.) 

Taking a couple of steps will reduce your risk of these problems. First, take antibiotics only if you really need them. Second, if you do need them, take probiotic capsules (beneficial bacteria) while you’re taking the antibiotics and for at least a few weeks after you finish treatment. 

[Ed. Note: Dr. Joseph McCaffrey is a board-certified surgeon with over 30 years of experience helping people overcome health problems using both conventional and complementary medical practices. For more information about the factors that empower people to attain optimal wellness, visit www.jfmccaffreymd.com.

And to get a free online source of information, motivation, and social support to help you improve your health, lose weight, and get fit, sign up for ETR's free natural health e-letter.]

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It’s Fun to Know: The 3,000-mile Monarch Butterfly Migration

Saturday, March 29th, 2008

Monarch butterflies embark on a 3,000-mile journey every August. First, they fly west to California and Mexico. Then, in spring, they head north to areas across the United States and Canada. It takes several generations of butterflies to complete the trip.

(Source: MonarchWatch.org)

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Word to the Wise: Labile

Saturday, March 29th, 2008

"Labile" (LAY-bile) – from the Latin for "to slip" – means adaptable or open to change.

Example (as used by Lev Grossman in Time magazine): "[Michael] Faber’s prose is an amazingly labile instrument, wry and funny, never pretentious, capable of rendering the muck of a London street and the delicate hummingbird flights of thought with equal ease."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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Word to the Wise: Arrant

Friday, March 28th, 2008

"Arrant" (AR-unt) – from the Latin for "a journey" – means downright/ confirmed/ extreme/ notorious. It was originally a variant spelling of "errant" (meaning "wandering") and was applied to vagabonds.

Example (as used by J.D. McClatchy in The New York Times): "More deplorable is his [James Dickey's] arrant and compulsive hypocrisy…. Under all the chest hair, he was a hollow man."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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Just How Bad Is the Economy?

Friday, March 28th, 2008

Report after report has come out detailing just how bad the economy is. But February’s Philly Fed Survey really put it into perspective. The February reading came in at -24, much worse than the expected reading of -10. It was even worse than the terrible January reading of -20.9. Take a look at the chart below from Briefing.com.

Your browser may not support display of this image.

Look at the blue General Activity line. Not only is it trending downward, it is as low as it has been since February 2001. Even more troubling is the red Prices Paid indicator. It is trending upward. Take note of how back in 2000-2002, that indicator was trending down. 

The combination of General Activity trending down and Prices Paid rising suggests that we are in a period of stagflation.

This means you should be adjusting your portfolio by taking money out of the market. You should not have more than 50 to 60 percent of your portfolio in equities right now. The rest should be in cash, natural resources, or fixed-income investments.

[Ed. Note: Rick Pendergraft is a professional trader and market analyst. Rick teaches investors how to read chart patterns and how to take advantage of them in his new K.I.S.S. trading program. This program is a great way to earn and learn at the same time. Learn more here.]

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It’s Good to Know: Toxic Waste Is for the Birds

Friday, March 28th, 2008

Scientists at Cardiff University have found that male starlings develop superior singing ability after being exposed to an estrogen-like toxic waste. Because singing is a sign of virility among birds, the pollutant-enhanced males attract more females. It turns out the toxic waste changes the part of the birds’ brains associated with singing. Of course, the news isn’t all good for the animal kingdom. When the same chemicals pollute streams and rivers, they have been known to turn male fish into hermaphrodites.

Throw off the delicate balance of hormones in birds, fish, animals – or people – and you never know what will happen. (Male athletes who abuse steroids – which mimic testosterone and other "male" hormones – often wind up with results that are less than virile.)

(Source: Wired )

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The One-Person HR Department

Friday, March 28th, 2008

So you’ve broken free from the corporate rat race. You’re a freelancer now, working from home. And the checks are already rolling in from your new clients. It’s what you’ve always wanted: financial independence.

But before you start spending that hard-earned money, remember that Uncle Sam still wants his piece.

There’s no HR department to automatically deduct Social Security and income taxes from your paycheck. No one to make contributions to your retirement plan. No one to make payments for health insurance coverage. Now you have to handle those things on your own. It can be tedious. But if you don’t do it, you’ll be scrambling for money that may not be there when tax time (which is quarterly, not annually, for freelancers) or payment-due dates roll around.

When you get a check from a client, first set aside money that will go into savings for future investment. "True wealth builders," Michael Masterson says, "set aside money for savings well before they pay any bills. By making personal investing a priority, they force themselves to conserve where they need to conserve… in their discretionary spending."

Once you’ve got your savings accounted for, do as novelist and freelance writer John Scalzi suggests: Cut your earnings in half. One half pays your bills, buys groceries, and covers other living expenses. The other half, which you put into a no-risk, interest-bearing account, will cover taxes, insurance payments, and your retirement plan.

(Source: scalzi.com)

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Don’t Can the Beans

Friday, March 28th, 2008

Last week, I was talking with a diabetic friend. During her latest weight-loss effort (and there have been many), she gave up beans. But she was still eating whole-grain bread and pasta. She reasoned that "beans are too high in carbs," believing they would worsen her diabetes and waistline woes.

When I told her I eat beans (dark red kidney beans or chickpeas) just about every day, her jaw dropped. "But you’ve never been leaner or more fit," she said. Exactly! Beans are a great low-glycemic carbohydrate that helps keep blood sugar in balance and your appetite in check.

The Benefits of Eating Beans
A recent study published in the American Journal of Clinical Nutrition proved just how much better beans are than popular wheat-based products for keeping blood sugar levels stable.

At each meal, healthy participants were given 50 grams of carbohydrate – either from chickpeas, wheat-based foods, or white bread. Researchers found that plasma glucose levels of those eating chickpeas was substantially lower 30 minutes and one hour after each meal than levels of the participants eating the other carbohydrates.

What makes beans so effective at stabilizing blood sugar? Fiber and protein. This powerful combo helps slow digestion and blunt the spike associated with eating other carbohydrate-rich foods. Plus, you’ll stay full longer and eat less, which is the key to losing weight… and keeping it off.

[Ed. Note: Kelley Herring is the founder and CEO of Healing Gourmet (www.healinggourmet.com), and is editor-in-chief of the Healing Gourmet book series. Learn more about how simple lifestyle choices can improve your health by reading ETR's free natural health e-letter.]

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The Hidden “Horsepower” in Your Copy

Friday, March 28th, 2008

Issue #2315

  • WEALTHY: How to know when to take money out of the market (Rick Pendergraft)
  • HEALTHY: A powerful combo that makes some carbs better than others (Kelley Herring)
  • WISE: Shakespeare on words

ALSO IN THIS ISSUE:

  • James Watt’s "steam engine secret" for capturing your customers’ interest (John Forde)
  • How freelancers can make Uncle Sam happy (Jason Holland)
  • It’s Good to Know… about toxic waste
  • Add "arrant" to your vocabulary

(more…)

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Unlocking the Hidden ” Horsepower ” in Your Copy

Friday, March 28th, 2008

When I was 17, I wanted to buy a car.

Not just any car. But a cherry-red 1968 GTO convertible.

Lucky for me, the very one I wanted happened to be parked in a nearby lot. And it was marked for sale.

It needed paint.

And there was a tear in the canvas top.

But under the hood, it was lovingly restored. A custom "four-on-the-floor" Hurst transmission. The Quadrajet carburetor. Extra-wide tires. And, of course, a 400 cu. inch Hemi engine under the hood, packed with a rumbling, growling, thundering 360 horsepower.

Today, I call it "the fastest car I never drove."

It was the horsepower that was the hurdle.

For me, it was plenty. For my wise mother, who insisted on coming with me to look at the car, it was way too much.

The mechanic selling the car underscored the point: "Last guy who test drove this beauty got a ticket just taking it around the block!"

Instinctively, Mom knew that that kind of horsepower and a teenage boy with car keys was not a good mix.

How did she, who has zero interest in muscle cars, have any idea what "horsepower" meant?

I know. Seems like a silly question. Because today we all know what horsepower is. Or at least we have an immediate sense that a lot of it means a lot of power.

If you buy a motorcycle, you ask about it. If you buy a tractor or a lawnmower, you note the horsepower too.

In Germany, Japan, Italy, and France – all car-making countries – they have their own version of "horsepower." And in each of their languages, it directly translates to the same image: power measured in "horse" units.

What’s a "horse" unit?

Sure, it has a number behind it. This is supposed to be a scientific term, after all. But could 360 horses really pull a Pontiac from 0 to 60 mph in 5.2 seconds? I think not. Though I’d love to see them try.

And which horses? Clydesdales can pull more. But race horses can run faster. And plow horses? Ah, not so much. You get my point.

Here’s the funny thing… "Horsepower" isn’t really so much of a scientific term after all, even though it plays one on TV. Rather, it started out as marketing. That’s right.

See, the word "horsepower" itself was cooked up by engineer James Watt in 1782. He wanted a metaphor to help him sell people on the newfound power packed into his revolutionary invention, the steam engine.

Watt had, of course, scientifically measured what the machine could do. But he quickly realized that talking about "pounds-per-square-foot" just wouldn’t light his buyer’s fire. So Watt redefined the unknown and complicated… as something most people could immediately understand and accept: the pulling power of a horse.

He got the idea while watching a mine pony lift a pulley-suspended bed of coal out of a coalmine. The pony could lift 22,000 foot-pounds per minute.

So why not "pony power?" Watt must have realized that only pre-teen girls would have been interested. So he doubled the values of his data and called it "horsepower" instead.

The gambit worked. Watt sold lots of his steam engines and other inventions, lived extremely well, and died filthy rich.

The How and Why of the "Horsepower" Secret

I bring this up because lately I’m seeing a lot of the same logic work its way into today’s marketing copy. And often with huge success.

The trick works like this…

Let’s say a concept near the core of your sales message is a little dense and unwieldy…

Or maybe it carries some emotional baggage…

Or maybe you’re just selling something so familiar, you worry people won’t hear you out long enough to see what’s different about your pitch.

That’s where the "horsepower" technique comes in handy. What it does is let you reframe the concept into something new.

It’s familiar in one way, mysterious in another. So the prospective customer can embrace it instantly. But they’re also intrigued to hear more.

A friend did this recently in a promo for an investment newsletter, where the editor’s latest favorite hot topic was geothermal energy. Knowing that term would bore the socks off prospects before he could lay down his case, the copywriter re-dubbed it "slow volcano power." And it worked. That one promo is bearing down on $2 million in sales, if it hasn’t passed that mark already.

Another info publisher I know of uses this same technique as a starting point for almost all their new pitches – with huge success. They did $60 million in sales last year.

The same technique can add new drama to common problems that your product can solve. You might even consider a term that adds more mystery rather than clarifies.

For instance, asking your reader if they’re "Tired of suffering the embarrassment of ‘halitosis’"… is just asking them if they want to get rid of their bad breath.

But transforming "bad breath" into the lesser-known "halitosis" – the clinical term for bad breath – both ups the stakes and raises curiosity.

If this is an old technique, why talk about it now? Because prospects are hit so hard, so often with pitches that say much of the same thing for similar products, re-inventing terminology gives you a time-tested way to breeze past all that new resistance.

Call it "brain grease," if you like. Just so long as you know that it works. And that it’s worth testing as soon as you get the chance.

[Ed Note: John Forde, a published writer and a direct-mail copywriter since 1992, is a featured expert in The Magic Button, ETR's step-by-step guide to starting a profitable Internet business. Applying John's proven techniques for writing promotional copy will make every customer contact an opportunity for a sale, whether it's your company's homepage, sales letters, emails, ads, and even editorial content.

Sign up for John's free weekly e-zine, The Copywriter's Roundtable.]

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How to Produce an Expert Video When You’re Not an Expert

Thursday, March 27th, 2008

A few years ago, I suffered from terrible back pain. It was so bad that I was taking steroid injections and trying every other pain-relieving method I could find. Looking online, I discovered that millions of others were going through the same ordeal. That’s when I had a brainstorm: If I could find a way to rid myself of my own back pain… maybe I could create a little side business by helping other people get relief at the same time.

How was I going to do that? I had no idea.

Then one night I was talking to an acquaintance, Jamie K., about my back. It turned out that Jamie was a certified physical trainer – and she had some stretching techniques that she was sure would help me. She taught me a few of her stretches on the spot, and it felt good. After performing those stretches for just a few weeks, I felt noticeably better. And after a few months, I felt better than I had in years.

A light bulb went off in my head. I would produce an instructional video to help people use stretching to ease their back pain!

I’d already produced a successful ballroom dance instruction video, so I had experience doing it. And that video was pretty easy for me to make. After all, I’d been a dance teacher for years, so I was qualified to teach the material myself. I was totally unqualified to teach others how to do stretching exercises – but Jamie was the perfect person to do it.

That was the first instructional video where I hired an outside expert to be on camera. It turned out to be a bonanza that profited me over $5,000 within 48 hours of putting out my first ad. Three years later, I still regularly fill orders for that video.

Realizing I could use outside experts in my instructional videos opened up a whole new world of opportunity. I no longer had to stick with skills I was personally adept at.

My next video featured a very fit senior who had created his own exercise program for middle-aged and older men. That video brought in over $30,000 in 30 days.

Now you might think it costs an arm and a leg to hire an expert to star in your videos. Sure, if you asked Tiger Woods to star in a golfing video for you, you’d need to shell out big-time. But it can be surprisingly inexpensive. For instance, I paid Jamie only $100 to do the back-stretching video.

The instructional video business is an easy and fun way to make extra income. There’s a demand for how-to videos in just about every area of interest. So the opportunity to make money is practically unlimited – especially when you realize you don’t have to star in your videos yourself.

Here are some guidelines to help you…

* Choose a subject that you believe will fill a need in the marketplace.

Like I said, there’s a demand for videos in almost every area of interest. Just be sure the market isn’t too obscure. Let’s say you want to produce a video teaching people how to do magic tricks. Based on the fact that there are plenty of books and videos on the subject, you could guess that the market would be large enough for you to earn a reasonable profit. On the other hand, a video that teaches people how to identify the nest of the North American Spotted Owl would appeal to too small a market. You might find a handful of customers, but not enough to make the venture worthwhile.

* Figure out what you’re going to pay your expert.

When I was working with Jamie, she was employed by a spa where she made $15 an hour. I offered her $25 an hour for the time it took to shoot the video, which made her quite happy. But if, for example, you wanted to hire a lawyer to be your expert, you’d probably need to pay quite a bit more.

You can also go the royalty route by offering your expert a low upfront payment as well as a percentage of the video’s sales. This is often the better deal for both sides. It keeps your out-of-pocket costs down, and eases any worries he may have that he’ll get a piddling amount for his time… and then your video will wind up selling 100,000 copies.

I’ve found that offering a royalty of something like $1 per sale is usually well received. Even if your video ends up selling only 500 or 1,000 copies, your expert would still be getting a pretty good deal for a few hours’ work.

* Recruit your expert.

I’ve had a good deal of success advertising on Craig’s List for a variety of different experts. Those who responded to my ads were all well-qualified and willing to work for a reasonable fee.

You can also find experts in special-interest chat rooms on the Internet, via local newspaper classifieds, or sometimes through simple word of mouth.

* Get an agreement in writing.

I’m not an attorney, so I’m not able to offer you legal advice. But I can tell you that having a contract in writing is a good way to protect yourself and your experts. In my contracts, I always spell out very clearly what the compensation will be. In fact, I write in big, bold letters that this is the only compensation the expert will be getting and that no other promises have been made. My agreements also include a statement that says I own the full rights to the video, and can do whatever I please with it. And I include a clause that says I’m allowed to use the expert’s image, name, and material in any way I choose to promote the video.

You can find templates for contracts in the library or online that you can adapt to your purposes. But if you want to be sure you are fully covered, you should consider having an attorney write up a contract for you. Yes, this may cost a pretty penny. But you can use the same basic contract for every expert, so the cost won’t be that great in the long run.

Producing specialty videos is one of the best low-capital businesses you can get into. And by using outside experts, there is almost no limit to the number of subjects or markets you can appeal to.

[Ed. Note: Paul Lawrence is the creator of the Quick and Easy Microbusiness System, ETR’s program for starting a business for under $100. Learn more of Paul’s video-business secrets HERE.

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Edging Away From the Cliff

Thursday, March 27th, 2008

Banks are tightening lending standards to businesses and would-be homeowners. But not to individuals with a hankering for plastic. Less than 10 percent of banks are tightening standards for credit card applications.

For the economy to turn around, individuals have to stop living off their credit cards. (If you’re in debt, how can you save? How can you follow my investment tips? How can you sleep at night?)

More people are defaulting on credit cards these days, but not enough to dissuade banks from issuing high-interest cards to anybody with a heartbeat. The banks are borrowing money at such low rates that the higher rates they’re charging on credit cards are making them a bundle. Defaults on those cards would have to spike before they would think twice and cut back on continuing to issue them.

Look, the banks are out for themselves. So you need to be out for yourself. Tear up those credit card offers. Let’s not help the banks push us – or the economy – over the edge.

[Ed. Note: ETR's Investment Director, Andrew Gordon, is the editor of INCOME, a monthly financial advisory service that uncovers income-generating stocks that promise safety (first and foremost), along with much-higher-than-average profit potential.]

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Word to the Wise: Luminary

Thursday, March 27th, 2008

A "luminary" (LOO-muh-nare-ee) – from the Latin for "light" – is a person of eminence or brilliant achievement.

Example (as used by Ruth Harris in Lourdes): "Those who came to the Pyrenees sought the sublime in the mountains and the exotic in the population, drawn by the descriptions of ethnographers and literary luminaries like Vigny, Sand, Baudelaire, and Flaubert."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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The Ready, Fire, Aim Business Proposal

Thursday, March 27th, 2008

When someone comes to me for advice about a business idea that will require a considerable expenditure of time and money, I often ask for a Ready, Fire, Aim business proposal.

The purpose is not to slow down the start-up process but to outline goals, identify costs (obvious and overlooked), and analyze expectations to make sure they’re realistic. To keep the momentum going, I tell them that the proposal has to be finished and delivered to me within 24 hours.

The ideal Ready, Fire, Aim business proposal looks like this:

  • It is more than one page but no longer than four.
  • It includes ballpark financial projections, including costs.
  • It identifies critical tasks.
  • It identifies a project champion and key support people.
  • It has a timeline for major tasks to be completed.
  • It describes Plan B (a "what if it fails?" course of action).

[Ed. Note: The above is an excerpt from Michael Masterson's latest book, Ready, Fire, Aim: Zero to $100 Million in No Time Flat, published with permission of John Wiley & Sons. The book has hit the New York Times, the Wall Street Journal, and now the Business Week list of business best-sellers. Inside, Michael shows how veteran and rookie entrepreneurs alike can take their businesses to the next level. You'll learn how to identify and solve the problems that crop up during each stage of a company's growth... and how to take advantage of profit opportunities along the way. Order your copy of Ready, Fire, Aim now.]

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How to Produce an Expert Video When You’re Not an Expert

Thursday, March 27th, 2008

Issue #2314

  • WEALTHY: Are your credit card habits sabotaging the economy? (Andrew Gordon)
  • HEALTHY: Get your antioxidants, hype-free (Kelley Herring)
  • WISE: David Ben-Gurion on experts

ALSO IN THIS ISSUE:

  • 4 steps to giving your video business expert credibility (Paul Lawrence)
  • The Ready, Fire, Aim business proposal (Michael Masterson)
  • It’s Fun to Know… about crocodile tears
  • Add "luminary" to your vocabulary

(more…)

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It’s Fun to Know: Crocodile Tears

Thursday, March 27th, 2008

When accusing someone of a hypocritical display of sorrow, you might say they’re shedding "crocodile tears." The expression comes from a myth that crocodiles cry fake tears to attract help… then, while still crying, snatch and make a meal of their would-be saviors. The story probably got started because crocodiles do, indeed, have lacrimal glands (like humans) – which means they can produce tears.

(Source: That’s a Fact Jack! )

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Not a Sure Shot for Health

Thursday, March 27th, 2008

It seems to be everywhere you look. Giant SUVs plastered with the purple logo. Postcards on the counter at the gym. Widespread hype for a $39 bottle of juice that proponents claim to be a "health miracle in a bottle."

MonaVie is one of the hottest nutritional products right now, and it comes with health claims that are as numerous as its many neighborhood distributors. But this product could not only drain your wallet, it could harm your health.

The alleged benefits of MonaVie come from its "high level of antioxidants," which, according to the company, are primarily derived from acai (the fruit of a palm tree). But go to MonaVie’s website and see if you can find the ORAC score (Oxygen Radical Absorbancy Capacity) of their product. Nope. How about just finding out how much acai is in the blend? No again. The company states: "Because MonaVie product formulas are proprietary, the extract amount of acai or other fruits in our blend is not disclosed."

The Dangers of Drinking Monvie
While MonaVie does not disclose specific amounts, they are required by law to disclose their ingredients. And on this list, you will find the preservative sodium benzoate. You may remember the ETR article by my husband Jon that described how benzene forms when sodium benzoate interacts with vitamin C in the presence of light or heat (i.e., pasteurization). And MonaVie is heat-pasteurized.

Benzene is an aggressive carcinogen, even in minute amounts. And science shows that it can cause severe damage to mitochondria, the power station of your cells. Not exactly a "health miracle in a bottle," if you ask me.

Another not-so-sweet tidbit you may want to consider before you jump on the MonaVie bandwagon is the amount of sugar in the blend – six grams per ounce. Drink the "recommended" four ounces a day, and you’re downing 24 grams of sugar (mainly fructose). That’s a recipe for a blood sugar spike.

Antioxidants are an essential part of a healthy diet, and one of the keys to aging gracefully and preventing disease. That’s why Jon and I stay well-stocked with the best organic sources. Here are a few that we always have on hand. They are ORAC chart-toppers according to the government’s 2007 Agricultural Research Service report:

  • blueberries (6,552 ORAC)
  • blackberries (5,347 ORAC)
  • red beans (8,459 ORAC)
  • black beans (8,040 ORAC)
  • artichokes (9,221 ORAC)
  • cocoa powder (an astounding 82,000 ORAC)

We even like to add some unsweetened acai (3,800 ORAC) to our Organic Cocoa Berry smoothies every once in a while.

To enjoy the benefits of acai, try Sambazon Organic Acai Smoothie Packs. You can find them in the freezer case at your local health food store for about $2 each. With zero grams of sugar and no preservatives, this is a smarter and safer way to include a superfood in your diet… hype, spike, and benzene free.

[Ed. Note: Kelley Herring is the founder and CEO of Healing Gourmet (www.healinggourmet.com), and is editor-in-chief of the Healing Gourmet book series. Learn more about how simple lifestyle choices can improve your health by reading ETR's free natural health e-letter.]

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It’s Good to Know: Dust-Borne Germs

Wednesday, March 26th, 2008

You know that sneezing, coughing, and unwashed hands are common ways to spread germs. But recent research by a pair of Swiss scientists indicates that microscopic dust particles can also spread bacteria. And those particles can be carried by windstorms across oceans and continents. The good news is that most of the bacteria that cause sickness in humans are not hardy enough to make such a long journey. But the researchers say this discovery provides important proof of the strong links between all parts of the planet. 

(Source: National Geographic )

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Word to the Wise: Redound

Wednesday, March 26th, 2008

To "redound" (rih-DOWND) is to have a consequence or effect. The word is derived from the Latin for "to be in abundance or excess."

Example (as used by Edward L. Widmer in Young America): "[John L.] O’Sullivan busied himself writing would-be contributors, outlining his plan for the enterprise and how its glory would redound to all associated with the project."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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The 25-50-25 Formula for Business Success

Wednesday, March 26th, 2008

"I was quite eager to learn about marketing, and began reading everything associated with it," one of my subscribers, KM, told me in a recent e-mail. "However, with AWAI’s Golden Thread e-zine, ETR, and, of course your insightful newsletter, I find myself reading more than applying. How do I sift through the worthy (but time-consuming) information that would benefit my business? Sometimes I force myself to read, fearful I may overlook some exceptional nugget. Help! Where do I stop?"

I hear similar stories all the time…

You are interested in some aspect of marketing – whether it is copywriting, Internet marketing, whatever. But you are overwhelmed by all the information being offered on the subject. (After all, we live in the Information Age.)

So you go "information crazy"… buying every course, attending every conference, reading every e-book, listening to every recording, and dialing into every teleseminar you can find.

Before you know it, a month… six months… or a year has gone by – and you are no closer to your business or career goal. That’s because you’ve spent all your time reading, studying, and learning the thing you are interested in… rather than actually DOING it.

Sadly, you are suffering from a syndrome I call "analysis paralysis."

All the information you are taking in has overloaded your circuits. You can’t process it all, sort through it, and figure out what to do first. So, instead, you do nothing. You take no action – other than to order yet another course or report to read.

You have become a marketing-information junkie – avoiding the harsh realities of the business world by retreating to your favorite comfy chair with yet another neat marketing book.

You spend all your time reading about starting a business. So there is no time left to actually start or run a business. You are an "armchair entrepreneur" – more enamored with the idea of entrepreneurship than the actuality.

Fortunately there is an easy solution: the 25-50-25 rule. It provides a simple guideline to help you get unstuck.

The rule says there are only three ways to learn a process (e.g., how to start an Internet business) or a skill (e.g., copywriting): studying, observing, and doing. The 25-50-25 rule says that to master a skill or process, and put what you learn into practical action, you must divide your time as follows:

  • No more than 25 percent of your time studying – i.e., reading books, going to bootcamps, attending workshops, listening to recordings in your car.
  • No more than 25 percent of your time observing – watching what successful people in your field are already doing. If, for example, you want to become a direct-mail copywriter, this means reading and analyzing the direct mail you get in your mailbox.
  • At least 50 percent of your time actually DOING the thing you are studying and observing. For example, if you want to sell information products on the Internet, you are spending 50 percent of your time creating your first product… designing your website… or building your list.

The idea is similar to Michael Masterson’s Ready, Fire, Aim approach. He says that you should take action right away, and then learn as you go.

Acquiring business knowledge is a worthwhile activity. But without action, that knowledge is worthless to you.

KM’s worry that, by not reading everything, he may miss a "nugget" of information is accurate: You will never know everything there is to know in your field, or even most of it.

But so what?

You don’t have to know everything – or even most of what there is to know – to succeed in most endeavors.

For example, there are hundreds of strategies for making money on the Internet. But you can make a six-figure annual income online using only a few of them, even if you never bother to learn the others.

In freelance copywriting, there are many top writers who write only one type of promotion. Or work in one narrow niche. And they make a fortune doing so.

When we were kids, our parents and teachers told us to study, study, study. But I see many people today much more enamored with studying and reading about marketing and entrepreneurship than actually doing.

Well, I understand that. Reading about marketing is fascinating – and fun. But the money is in the doing, not the reading.

Follow the 25-50-25 rule, and you’ll be doing – and making money – at least half the time.

[Ed Note: Freelance copywriter Bob Bly is the creator of The Direct Response Letter, the author of more than 70 books, and co-creator of ETR's Direct Marketing Masters Edition program.

Learn specific strategies for how to take action on all your business and personal goals with ETR's Total Success Achievement program. It's not too late to sign up and learn how to make your longest-held dreams come true. Click here to learn more.]

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