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Tuesday, April 18, 2006
Message #1706

  • WEALTHY: Ratcheting up profits with other people's money ( Michael Masterson )
  • HEALTHY: The "Distant Night Exercise"
  • WISE: Leo Burnett on marketing

ALSO IN THIS ISSUE:

  • A master copywriter's guide to selling online (John Forde)

  • The strategic approach to planning your day (Rich Schefren)

  • Add the word "exiguous" to your vocabulary


*Highly Recommended *

Three Stocks that Can Make You an Absolute Fortune

How would you like find an investment with a massive upside... like 5 to 10 times on your money... and with a VERY wide margin of safety? It might sound too good to be true, but that's exactly what you can expect when you find a company with massive hidden assets.

Well, my colleague, Andrew Gordon, has just spent the last several months searching for these types of situations... companies with hundreds of millions of dollars that Wall Street is overlooking. And he found three of them. Buying these stocks is like buying dollar bills for 30 cents a piece... small risk and an astronomical reward. Andrew just wrote a complete analysis of what he found in a document called The 1000% Report. I highly recommend you check it out.

- Will Bonner


Why You (Yes, You) Should Invest in Real Estate

By Michael Masterson

Next to owning your own business, investing in real estate gives you the highest potential return on investment (ROI). The reason you can get such high returns on real estate is because of the power of leverage.

Let me explain.

When you're a real-estate investor, you're essentially in the business of finding other investors to back your projects. Those investors are lending institutions or private lenders. They receive interest payments from you and, initially, loan fees. You get to keep the profits.

This is what is called "positive leverage." Essentially, you are borrowing most of the money you need. It means you can ratchet up your profits by using other people's money to control an appreciating asset - and it's one of the great advantages that real estate has over the stock market.

In a typical leveraged (i.e., mortgaged) real estate deal, you can invest $10,000 to $20,000 (or less) to buy a $100,000 property. If that property appreciates 4 percent (or $4,000), then the ROI you achieve is not 4 percent but 40 percent or 20 percent, depending on whether you invested $10,000 or $20,000.

I'm simplifying things for the moment, but stick with me. This is a pretty interesting subject. If the property "cash flows" (meaning, if the rent you get for it covers your loan costs plus taxes, insurance, and an allowance for vacancies and maintenance), you benefit from all the appreciation multiplied by the amount of leverage you took.

A 90 percent mortgage (one in which you put up only 10 percent of the property cost) gives you a 10-to-1 leverage advantage. A 95 percent mortgage gives you an 18-to-1 leverage advantage.

In other words, you get all the net cash flow. And you get all the equity built up from paying down the loan (amortization).

For example, let's say you put $10,000 down on a $200,000 property. If you waited three years to sell it and, at that time, its value had gone up to $300,000, you would have turned your $10,000 into $110,000 - not including the net rents you've accumulated and the amortization you've picked up. Subtract your buying and selling costs, and you should still make 10 times your money (or more) in just a few years. That's the power of financial leverage.

Having a mortgage would increase your costs - roughly by the amount of interest you would pay (the cost of the money you are financing) - and so you might end up paying some additional fees. But overall, your returns on the property would greatly outweigh the cost of the investment.

(Ed. Note: The above article is an excerpt from the book EVERY graduating student should haven Michael Masterson's just released Automatic Wealth for Grads... AND ANYONE JUST STARTING OUT.)


"A good basic selling idea, involvement and relevancy, of course, are as important as ever, but in the advertising din of today, unless you make yourself noticed and believed, you ain't got nothin'."

 - Leo Burnett

11 Things You Can Do Right Now to "Fix" a Business Website

By John Forde

The bigger the Internet gets, the more important it is to have a website that works. And I'm talking not only about sales websites but also about editorial-style websites. Here are the 11 best ways I know of to do it:

1. Define the site's purpose in five words or less.

Is this a sales site? Then the goal is: "Sell ______." Is its purpose to build an e-zine's mailing list? Then the goal is: "Get names for mailing list."

The purpose needs to be that simple. Pick the most important result, make it narrow, and stick to it. The more you try to accomplish, the less the site will accomplish in terms of quality results. You can always create other websites to serve other purposes.

2. Get a headline at the top of the first page.

Forget big logos. Forget splash pages. Get words up top in type bigger than you think you need. And not just any words. You need a powerful emotional "hook." A big problem identified. A shocking statement. A huge benefit.

3. Get a big benefit "above the fold."

If your headline at the top of the page is benefit-driven, you've done this. If your headline is fear-driven or something other than a clear benefit, apply the "no-scroll" rule: Make sure the reader sees the benefit before he starts scrolling down the page.

4. Get rid of "click here to continue" page breaks.

For a fluid, more effective reading experience, you need one long scroll. The less clicking your readers do while soaking up your message, the better. Don't let anyone tell you otherwise.

5. If it's a site for building a mailing list, get your signup box "above the fold."

If you're after e-mail addresses, the sign-up box should be featured prominently in one of the corners. And it should reassure readers that there's no risk to their privacy when they sign up (which had better be true).

6. Strip away pointless graphics and links.

Don't risk having readers miss what you have to say by obscuring it with unnecessary links and graphics. You don't want images that aren't relevant to your message, no matter how cool, cute, or stylish. Nor do you want to give links to other websites (at least, not on a promotional page) or anything that does not further the sale. Stay in control of the reader's attention.

7. Eliminate technological "tricks."

Flashing banners, java-programming, flash-programming or frames are not only distractions, they take too long to load. Worse, they could crash your website or the user's Web browser. Obliterate them.

8. Reread all your subheads.

Skim through the document and read the subheads. Not all of them have to sell, sell, sell - but it's a mistake for none of them to do so. You need subheads to keep hooking the interest of the page skimmer, which is what most people are when they read both online and printed direct mail. Subheads are there to pull the reader back in. Well-crafted subheads offer a path that the reader will want to follow.

9. Check and recheck your offer.

When sales websites go wrong, the offer is often the reason they flop. Is it the best possible offer you can make? Is there an aspect of the sale that can be fulfilled online (to cut costs and motivate the buyer with instant-satisfaction urgency)? Can you offer a better guarantee? Is the guarantee featured close to the push for action? Have you reassured your readers that your reply page and their information are secure?

10. Read the copy out loud.

This old technique still works. Print the page and read the copy out loud. You can even record it and listen to the playback. Do any phrases sound dull? Are there sections that are boring or long-winded? Or parts so good you realize they should land closer to the front? You'll discover flaws and opportunities this way that you'll completely miss otherwise.

11. Run a local usability test.

Get at least three people who know little or nothing about the product you're selling. Let them read the Web page without giving them instructions on how to navigate. Provide no warm-up about what to expect. If they all have similar complaints, fix the problem. If their best response is that they "like" it, you still have work to do. If they start asking questions about the product and how to get it, you've got a winner.

(Ed. Note: John Forde is a popular presenter at AWAI Bootcamps and seminars. He writes extensively for Web promotions, and is the author of AWAI's new copywriting program, Secrets of Writing for the Internet.)


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Deciding What to Do Each Day

By Rich Schefren

Strategic entrepreneurs don't start out their days by asking, "What do I want to do today?" They ask themselves, "What are the most important, highest-leverage activities that need to get done today?"

Take, for instance, Jack Welch. When he took over as CEO of General Electric, points out the Harvard Business Review , he realized that "what needed to be done ... was not the overseas expansion HE WANTED to launch. It was getting rid of businesses that, no matter how profitable, could not be number one or number two in their industries."

As an entrepreneur, you have to focus on the needs of your company when choosing how to spend your time. Are you picking tasks based on what you want? Or are you making those decisions based on what your company needs from you?

If you pick the most important task to work on first, you'll be more effective and your company will be more profitable.

(Ed. Note: Rich Schefren is arguably one of the world's best small-business strategists. His marketing strategies have been featured in The Wall Street Journal , and he's appeared on every major television network, including ABC, CBS, and NBC.

Rich's businesses have done over $35 million in sales, and he currently coaches many of today's top Internet gurus and service providers on streamlining their businesses while exploding their profits.)


Today's Action Plan

Whether you already have an online business or are just thinking about starting one, you'll be interested in ETR's special teleconference series, "Secrets of Easy Internet Money." Rich Schefren, Yanik Silver, and Matt Furey will be revealing the most profitable "hidden" Internet income opportunities around. Learn more.


It's Good to Know: An Exercise to Reduce Eyestrain

By Jon Herring

At the end of a very long day last week, my eyes were tired from too many hours in front of the computer. But before I called it a night, I happened to catch an e-mail from health writer Chet Day about an exercise to relieve eyestrain. It worked for me right away, so I thought I'd share it with you. It's called the "Distant Night Exercise."

1. Cup your hands and place your palms over your eyes. Position your hands so that no light is coming through. Your palm can touch your eyelashes, but do not put pressure on your eyes.

2. As long there is no light coming in, you can keep your eyes open or closed. Now, relax and imagine that you're looking into the distant night sky.

After 30 seconds or a minute, the eyestrain should be diminished. This works because your eyes are much more relaxed when you are looking out at a distance, rather than focusing on a near point. Give it a try.


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Word to the Wise: Exiguous

Something that is "exiguous" (ik-ZIG-yoo-us) is extremely scanty. The word comes from the Latin "exiguus" ("strictly weighed").

Example (as used by Terence Brown in The Life of W.B. Yeats): "Among the pressures provoking these distresses were a father's financial inadequacy and a growing awareness that, by finding employment himself, he could ameliorate the family's exiguous circumstances."


Michael Masterson
Copyright ETR, LLC, 2006


Have a Question for Michael Masterson? Want to know the secrets to his success? Have a perplexing business problem? ETR welcomes your thoughts. Post them online at  http://speakoutforum.com/forum/

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