Issue #2443
- WEALTHY: Why I’m soft on Detroit (Christian Hill)
- HEALTHY: The fava prescription (Kelley Herring)
- WISE: Albert Einstein on information
ALSO IN THIS ISSUE:
- The difference between "user" and "junkie" (Michael Masterson)
- The one and only way to know if your business idea is a winner (Charlie Byrne)
- It’s Fun to Know… about silly names in New Zealand
- Add "impecunious" to your vocabulary
Do You Need to Start Out Small ?
If you don’t have an Internet business yet, or if your company is smaller than $1 million, then you need something different… something that lets you start off small.
One man I know turned $10 into over $500,000. How’s that for starting small!
Let me show you how you could get a similar Internet income stream running for almost nothing.
- Charlie Byrne
ETR Associate Publisher
My Case for the Automakers
"You make money when you buy, not when you sell." So says the old adage. It’s especially important to keep this in mind in today’s market. Buying opportunities abound, and now is the time to take advantage of that and make your money.
I must admit, I have a soft spot in my heart for Detroit. That was where I was born and raised. And the entire southeastern part of the state of Michigan is dependent on the automakers staying in business. So whenever talk of the Big Three (or Two, if you prefer, since Chrysler is now privately owned) going bankrupt surfaces, I take note. But no matter what you hear, I believe the chances of them going bankrupt is very remote.
Here’s why: If Ford or General Motors, for example, ever filed bankruptcy, it would likely shift consumers immediately away from their products and to those of its competitors, further hurting revenue. Because that sudden loss of customers would make it nearly impossible for the company to recover from bankruptcy, a more likely scenario would be a recapitalization of debt, and favorable concessions from suppliers and unions to ease the financial burden. It could also mean that new debt sources could be found at more favorable terms.
The government, having bailed out Chrysler in 1979, is well aware of the consequences of a major automobile manufacturer going out of business. It wouldn’t just be GM or Ford going out of business. It would also mean the end for the hundreds of auto parts suppliers in the region, including Delphi, Visteon, and Johnson Controls. The trickle-down effect would be devastating.
So how does this tie into the old "you make money when you buy, not when you sell" adage? Ford and GM are currently trading near their 15-year lows. The outlook for them is bleak. Everyone is dumping shares. But, for the above reasons, I don’t think these companies are going to go away – and it is time to look at them as long-term recovery investments.
Buying near 15-year lows gives you two advantages: You are buying at a very low price, so the upside is huge. At the same time, that low price makes your downside relatively small in the unlikely event that they do go bankrupt.
[Ed. Note: You may be surprised to hear it, but there are plenty of ways to make money in a down economy. Take, for example, market analyst Christian Hill's advice about investing in Detroit automakers. And there are more ways to keep your money safe while allowing it to grow. You can also make big bucks in the coming years with companies searching for new sources of oil and gas. Discover two best-in-class drilling rig companies that will be on the receiving end of this tidal wave of cash here.]
"Information is not knowledge."
Albert Einstein
Are You an Information Addict?
I hadn’t seen Dave in almost 20 years. He was my dentist when we moved to Boca Raton in the early 1980s. He continued to take care of K and the kids after we moved to Delray Beach 10 years later, but I opted for dental care closer to home.
Dave contacted me when he discovered that I was the man behind the "Michael Masterson" pen name. He’d been receiving ETR for a while and liking it. One day, he went to the website and saw my photo. "I know that guy!" he thought. So he got my e-mail address from K. "How about lunch?" he wrote. "I’ve got a bunch of things I need to ask you."
Several weeks later, we were eating chopped chicken salads at City Oyster on Atlantic Avenue. Dave seemed nervous. It was as if he was intimidated by the Michael Masterson persona. I did my best to assure him I was the same person who used to wince in pain when he cleaned my teeth. We talked a bit about family news, but it was clear he had something else on his mind.
On his mind was a decision he was trying to make: Should he spend $100,000 on the highest level of an Internet marketing program he had been looking at?
"I’ve been studying their stuff," he told me. "It’s really good. But I’m not sure it makes sense for me to invest that kind of money."
"A hundred grand is a lot of money," I said. I felt like Sam Spade talking to Gutman about the price of the Maltese Falcon.
"But you get an awful lot for your money," Dave explained. "They do all the technical stuff for you, which I’m not very good at. All I’d have to do is come up with the ideas."
"Well," I said, practicing my best Sam Spade drawl, "what ideas do you have?"
In fact, Dave didn’t have a single one. "All I know is that I am in the wrong business," he said. "I took this self-test online – and I found out I’m in the worst business in the world for me."
At nearly 50 years of age, Dave had just concluded that his entire career had been a waste. "I wanted to be a dentist since I was eight years old," he told me. "If I had known then what a bad business it was for me, I would have done something else."
"Like what?" I asked.
"Like what you do," he said. He was smiling, but he looked serious.
"Look," I told him. "My business is a great business – but I don’t think you should conclude that your life has been wasted simply because you took some pop quiz that was probably designed to sell you something."
"But it was right," he insisted. "It proved something I had always known but was afraid to admit."
The waitress filled our drinks. We ate in silence for a while.
"So what I’m thinking is that, since I’m not into the technical stuff, this Internet marketing program would be very good for me."
"How much time have you invested in learning about Internet marketing?" I asked.
"About three years," he answered.
And how many information products on the subject have you bought in that three-year period?" I asked.
Dave laughed. "I can’t even count that high," he said.
"How much money have you spent?"
"Tens of thousands. Probably more."
"And yet, you haven’t actually started an Internet marketing business," I said.
He nodded, then rattled off the names of every Internet marketing program he’d bought – all the ones that I knew and dozens of others I had never heard of.
"That’s a lot of buying," I told him.
"Tell me about it," he said.
Dave explained that when he reads an advertising promotion pitching a new Internet marketing product, he is "totally taken in by it," even though he realizes he is just reading "a sales pitch."
"But even though I know that I’m being seduced by a professional wordsmith, I can’t stop myself from buying."
"I hear you," I said. "You are an information junkie."
"You think?"
"I do."
"What about you?" he said. "I read that you read a lot of informational books – about one every week."
"I do," I said, "but I’m not an information junkie. I’m an information user."
"So what’s the difference?"
I explained that the difference is huge. An information junkie is addicted to the process of buying information. Although he may delude himself into thinking otherwise, he has no intention of ever using the information he buys. An information user is very practical about his purchases. He buys information for specific, pragmatic purposes. He uses the information he buys to achieve specific goals – to start or grow a business, to learn a new language, to improve his negotiating skills.
An information junkie is happiest at the moment he is buying the information. His enthusiasm soon wanes, however. Within hours or days of receiving it, the information junkie is on to other things. The new product goes up on the shelf with the old products. He’s excited about the next new one.
An information user makes progress. See him reading a book about nutrition, and there’s a very good chance (if he likes the book) that his eating habits will change in the immediate future. The information junkie, in contrast, may have 26 books about nutrition in his living room. He may have even read them all – while he was lying on the couch eating potato chips.
An information user is someone who consumes information to profit from it. If he invests $100 in learning about some subject, he expects to see a substantial return on that investment – perhaps a thousand dollars’ worth of value, material or spiritual. An information junkie consumes information like drugs or candy bars. It gives him an immediate rush and then nothing afterward. That’s why he needs to buy more.
The information user has long-term expectations when it comes to knowledge. He believes the knowledge he acquires now will compound over time as he learns more and is in a better position to leverage what he has learned for greater benefit. The information junkie is in it for the here-and-now. He doesn’t believe in saving. He’s always on to the next hot thing.
What about you? Are you an information junkie? Take this test and see…
1. In the past year, I’ve purchased more than 12 books that I haven’t read. (If your answer is Yes, give yourself 2 points.)
2. In the past year, I’ve purchased:
- Only information products that I have used. (Yes = 1 point)
- Between 1 and 3 $100 information products that I haven’t used. (Yes = 2 points)
- Between 3 and 5 $100 information products that I haven’t used. (Yes = 3 points)
- More than 5 $100 information products that I haven’t used. (Yes = 5 points)
3. In the past year, I’ve purchased at least one $1,000 information product that I didn’t use. (Yes = 5 points)
4. I am most excited about the information that I buy:
- When I am ordering it. (Yes = 3 points)
- When I receive it. (Yes = 2 points)
- When I begin using it. (Yes = 1 point)
5. When I read a book, I feel compelled to read it from cover to cover. (Yes = 2 points)
6. I generally take notes when I read something. (Yes = 1 point, No = 2 points)
Well… how did you score?
If you scored 8 or above, you are indeed an information junkie. You might think the good people at ETR would like that (since they are in the business of selling information). But they don’t. The people at ETR know that their business will grow most strongly if they develop a customer base of information users rather than junkies. That’s because information users benefit from the knowledge they buy. This means they are more discriminating (which favors ETR’s products, since they are some of the best in the business), they buy more products in the long run, and they request fewer refunds.
If you are an information junkie, don’t despair. You can convert yourself into an information user simply by following two rules:
1. When you buy an information product, set specific deadlines for reading it and implementing what you learn. For instance, set a goal that you will take one of its recommended actions within 24 hours of receiving the product. Then resolve to take at least one more recommended action each week thereafter.
2. Don’t buy another product until you have made some progress with the one you previously purchased.
That’s all there is to it. Obey these two rules and you’ll not only break your addiction, you will radically improve your life.
[Ed. Note: At ETR, we've got dozens of top-notch products that can help you build your wealth, create a business, and lead a fuller, more satisfying life. But unless you put the information in them into action, they won't do you any good. So, please, take a look at what we have to offer... but buy only when you are ready to put our recommendations to work.]
The Easy Way to Internet Profits for Lazy Entrepreneurs
If you can push a button, you can make money online. Yes, there’s more to it than that, but not too much. Just 3 simple steps. This new online business opportunity is for truly lazy entrepreneurs who still want to make a very nice online income.
I’m still shaking my head at how shockingly simple and easy this is. And this business has been purposely kept “low-key” to keep others from discovering and using it. Not anymore, because one of the Internet’s elite has just spilled the beans…
Click here to get all the inside details…
The 6 Most Dangerous Words an Entrepreneur Can Hear
By Charlie Byrne
1. That
2. Sounds
3. Like
4. A
5. Great
6. Idea!
When running your new product ideas past friends and family, don’t pay much attention to what they say. Heck, they don’t want to burst your bubble by telling you you’re not the next Ron Popeil.
Of course, they’re going to give you plenty of encouragement to your face. But at the same time, maybe they’re wondering "Hmmm. I don’t know if that’s going to work."
Here is the one and only time you will know you have a good, marketable idea: when a complete stranger hands you cash for it. End of story.
[Ed. Note: The best way to find out if your business idea works is to test it. As quickly and cheaply as possible. You can get step-by-step advice on how to turn your idea into a full fledged business right here.]
Have Parkinson’s? Eat Fava Beans
If you have Parkinson’s, the cells in your brain that make dopamine have been damaged or destroyed. And as dopamine levels decline, the simplest movements become increasingly more difficult.
The good news is that there is a natural way to boost your dopamine: Eat fava beans.
A recent study conducted at St. Luke’s Medical Center in Chicago found that Parkinson’s patients who ate large quantities of fava beans (10 ounces a day!) got the same benefits as they did when taking medication. That’s because fava beans contain levodopa – the same active component in medications like Sinemet, Madopar, Dopar, and Larodopa.
You don’t have to eat a bushel of favas to get the benefits. Three ounces (canned and drained) contains between 50 and 100 mg of levodopa. One note of caution: These healthful legumes can create problems for people who have a rare genetic defect. So check with your doctor before you load up.
[Ed. Note: Long before pharamaceutical companies started trying to make a buck, Mother Nature was serving up her own medications. Fava beans are just one type of food that can help you feel better. For more on the foods you should be eating to feel healthier and live longer, sign up for ETR's natural health e-letter. Get your free subscription here.
And for an all-natural dessert that tastes devilishly delicious, try nutrition expert Kelley Herring's special chocolate cake. Find out how to get a slice right here.]
It’s Fun to Know: Silly Names in New Zealand
In New Zealand, parents have a penchant for giving bizarre names to their children – and now the government is stepping in to save those children from embarrassment. Take the recent case of "Talula Does the Hula From Hawaii," the name of a nine-year-old girl who won the right to change it when the government made her a ward of the court. "Sex Fruit," "Keenan Got Lucky," "Yeah Detroit," "Fish and Chips," and "Stallion" are a few others that have been ordered changed and blocked from future registration.
(Source: Daily Express)
== Highly Recommended ==
Clever Solutions to Life’s Problems in Under 3 Minutes
What if you had an ingenious solution or answer to almost any of life’s little frustrations or major problems? Sound like a dream come true, but almost too good to believe? Maybe it’s time to start believing…
From gossip to liars to lousy credit ratings…to irritating neighbors, IRS audits, and bully bosses…to billing errors, back pain, and out of control in-laws…
We’ve got answers for you – tons of ’em - to these and hundreds more of life’s frustrations. You’ll be amazed at how quick and effective these clever solutions are for almost all of life’s problems. And they are all contained in a FREE book we want to give you.
Just flip through the index, find the page number that deals with that problem, and take a couple of minutes to read the answer. To claim your FREE copy, simply click here.
Word to the Wise: Impecunious
"Impecunious" (im-pih-KYOO-nee-us) – from the Latin – means poor, habitually without money.
Example (as used by Tag Gallagher in The Adventures of Roberto Rosselini): "He had gotten to know [Giuseppe] Garibaldi during the impecunious soldier’s last years and would send him woolen socks, underwear, and money."
[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.]
Similar Articles:
- Are You an Information Addict? – I hadn’t seen Dave in almost 20 years. He was my dentist when we moved to Boca Raton in the early 19…
- Why You Should Be More Like a Drug Addict… Going for It… the Remedy for Fleeting Happiness… and Much, Much More – As I explain in today’s essay, you can learn a lot about wealth building and success from your avera…
- The 25-50-25 Formula for Business Success – "I was quite eager to learn about marketing, and began reading everything associated with it,&q…
- Information Overload: How to Escape the Crush – Stanley Bergen has a problem. As a regular reader of ETR and a new member of the Oxford Club, he’s g…
- The More You Learn, the More You Earn – Years ago, a famous rock star returned to her high school to speak at an assembly. Although she had …
- It’s Good to Know: The Going Rate for Your Personal Information – Identity thieves trafficking in personal financial data from bank accounts and credit cards are havi…
- What the National Enquirer Can Teach You About Selling Information on the Internet – American Writers and Artists Inc. (AWAI) co-founder Don Mahoney recently e-mailed me an article abou…
I agree with your assesment of Detroit’s automakers. They’re not going away. Especially GM. GM may be facing tough times at home, but the American public at large does not see/hear about GM abroad. Chevrolet is the hottest selling brand in Eastern Europe, and GM owns significant market share in Europe as a whole. In Mexico, where I currently reside, GM dominates the marketplace. GM has experienced significant growth in China, India, and SE Asia too.
I worked in the industry for many years in a variety of capacities. Having worked for GM and Ford, and later having Chrysler, Toyota, and Honda as customers, I can say that GM is one of the best in the industry. GM can still trim fat, perhaps getting rid of several brands, and it could improve it’s marketing, but I believe they are on the right path.
I drive only GM vehicles – they’ve never let me down. We’ve owned Ford, Volvo, and Honda – all vehicles which gave us headaches. My parents believe in Toyota, however they have problems with their vehicles I’ve never experienced with my GM cars & trucks. My Tahoe is now 12 years old with 162,000 miles and has only required routine maintenance. Earlier this year, I sold my 2004 Malibu with 100K trouble-free miles.
Despite what the media and their love affair with foreign vehicle manufacturers has to say about GM, and Ford for that matter, the domestic manufacturers are here to stay.
It has been disheartening to watch the value of GM’s stock drop, but I’m excited about GM’s future as they begin to turn out more exciting products with very fuel-efficient powertrains over the next few years.
Of the “native” automakers, GM is better than Ford & Chrysler, by far. I own a 2003 GMC Sonoma PU w/34k miles. I hate the truck. Hard to drive & park. It’s always getting hung up on flat ground. It will take an after market differential to cure the problem. Don’t get me started on the sagging door hinges, as that is a KNOWN GM problem. It remains parked most of the time. But it will start & run even after being parked for 2 months at a time. I’ve owned a lot of ’80s Toyotas, and they are my favorite. The newer ones are not as nice, though, as they do have problems and are overpriced. GM does have the potential to become great once again, IF it rethinks it’s vehicles. Meantime, I drive a rebuilt ‘93 Ford Ranger PU, that has had it’s share of problems as well…………….
if american auto makers get off their butt ,and stop wasting time and money get to work like japs did they can save the industry.americans are lazy and take things for granted both the consumers and factory.world has gone far ahead of us ,just watch olympics.
Your article was so right. But what I have also found is that when I get TOO MUCH information at one time, it can be overwhelming, and instead of using it, I become discouraged.
This is an excellent article. I see myself as being the information junkie instead of the information user. I will put these two steps into action.
I will bet that if you have Parkinsons, and you go to your Doctor who has been giving you a medication for Parkinsons, he will not want you to substitute for Fava Beans.