Quick word of advice: diversify

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narayan

narayan

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Nov 17, 2008
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I was laying in bad trying to fall asleep but my brain kept on wondering about the stats on the new campaign I just launched. So I jumped out of bad trying not to weak up my wife, raced to my computer and hit refresh button about 15 times with intervals of 5 seconds each. Campaign is doing well. But then my mind started thinking about finances.

Here's the thing. I met a lot of very smart afiliates. Some of them are fucking brilliant, I would say. Very ambitions and motivated. Most of them are still in school or fresh out of school and making lots of monies from the internets. And they keep on reinvesting and making more money. They have the brains, the balls and the finances to make it big by common folk standards. And you sure enough, you gotta a be a risk taker to make to be doing affiliate marketing full time.

So where am I going with all of this? Well, I want to put my conservative 2 cents in and say that no matter how good the going is today, take some of that cash and put it away. And not in your savings account but into long term investments. Yes, I know that you would rather invest in your business. Yes, I know that you may not understand stock market or Real Estate. And yes I do watch the news and I realize the economy may be still the shithole for a few years. Do it regardless. Just take 10% of your profits and start saving for a rental property or put it into Index Funds and ETFs. Now is a great time to do it if you're in it for the long term. Do it now and you will thank me later.

Lets face it: we may or may not be making all this dough for the next 20-30 years. Why not play it safe for a change?
 


I don't mean to sound like an ass, but I thought that was common sense? I'm not making the dough to warrant doing that kind of stuff yet, but if I were I'd make my money 'work for me', and not just let it sit in the bank.
 
The problem is - right now - there aren't a lot of easy answers for places to put money.
 
What happened? Did taxman come knocking asking to declare something you haven't declared? Or did they audit you and found hmmm you haven't paid enough...?

trigatch4 said:
Or learn like me and instead of putting it away for "investments" put it away for "taxes"... son of a BITCH
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Put it into the stock market. Trust me, it's less risky than you think. And there's a way of doing it and getting Tax benefits. So if you're in a high income tax bracket there are many great investment options.

The idea is to take money out of your busienss and diversify. Gold, Silver, Real Estate, Stocks, whatever. Just don't keep all of your eggs in one affiliate basket.

bitsdawg said:
The problem is - right now - there aren't a lot of easy answers for places to put money.
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I agree about diversification.

See, I'm a lot closer to retirement than you guys are - maybe 20 - 30 years. And while many of you are in college, my kids are facing college in a couple of years... My retirement accounts disolved before my eyes, but I still have time for them to come back - and they are pretty solid - energy, tech, pharma, some bullion etf, and of course, and overseas online gambling (which is the only thing that's moved up!) Plus I collect coins as a hobby, and that includes bullion.


But still I want to keep some cash, and it is depressing to realize that in real money terms, that 1% interest rate is also disolving my money.

Look - companies that did well during depression number 1 kept on keeping on (as we used to say in the 70's). So I still roll money into advertising, and it still pays. People will still have to spend money, so just try to be the one who can convince them you provide good value for their money.

I also want to have a business I can pass on to one of my kids if the college thing isn't for them. I am college educated, and I believe it was worth it, but things are changing..... and even though I have a computer degree, what I do now is nothing I ever learned in FORTRAN class!
 
Why advise people to move their money from a high-ROI activity (AM) to a relatively low-ROI activity (stocks)?

Unlike stocks, the money you put into AM won't disappear overnight. If something bad happens, it just means that your income stops. In that case, moving to the 2nd-highest ROI activity you can find (real estate, stocks, etc.) would be logical. It would help to be knowledgeable and prepared for that contingency.

Cutting back on the exponential growth of your AM business sounds like a good way to harm one's future, not help it.
 
Yeah, and I just love paying into Social Security for that old age fund that won't be there when I reach that age.

Personally I like virtual real estate a helluva lot better. You are going to have certain companies/products/niches that crash and burn, but you can always replace them with something that is selling and promote that. Even when spending overall is down, people are still feeding their addictions - gaming, porn, dating, food/weight loss, etc. Some things never change. :)

Dan
 
If you really want to *diversify* in terms of making money online, don't be retarded and limit yourself to affiliate marketing. The true security comes from 100% owning your own product.
 
dreamache said:
If you really want to *diversify* in terms of making money online, don't be retarded and limit yourself to affiliate marketing. The true security comes from 100% owning your own product.
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ok... I've never owned a product. And I know this is totally hijacking this thread....but I'd be interested in what you have to say about it.
 
Dude, can you use proper grammar, PLEASE? It gave me a headache to read your post. Even sumit's posts are easier to read than your garbage.

Plus, what you wrote is something most of us already know.
 
narayan said:
Put it into the stock market. Trust me, it's less risky than you think. And there's a way of doing it and getting Tax benefits. So if you're in a high income tax bracket there are many great investment options.

The idea is to take money out of your busienss and diversify. Gold, Silver, Real Estate, Stocks, whatever. Just don't keep all of your eggs in one affiliate basket.
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With property values as shitty as they are, particularly in my neck of the woods, I wish I had the free cash to dump into foreclosures right now, sit on them and rent them out (likely for more than the mortgage + property taxes / insurance etc). I've also heard some stuff about 1031 Tax Deferred Exchanges that sounds like it could be pretty killer.
 
nvanprooyen said:
With property values as shitty as they are, particularly in my neck of the woods, I wish I had the free cash to dump into foreclosures right now, sit on them and rent them out (likely for more than the mortgage + property taxes / insurance etc). I've also heard some stuff about 1031 Tax Deferred Exchanges that sounds like it could be pretty killer.
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A few people make a lot of money in real estate, but most people don't, and it's a pain in the butt. Think about how people you know treat rental property.

When I used to rent out a town house, the renter would show up late and count out $20s, $10s, $5s, and finally change to make her rent. She did it in front of ther kids, and it was heartbreaking. Ugh. Never again.

Being the type who doesn't like to get her hands dirty, I'd rather find something else.
 
bitsdawg said:
A few people make a lot of money in real estate, but most people don't, and it's a pain in the butt. Think about how people you know treat rental property.

When I used to rent out a town house, the renter would show up late and count out $20s, $10s, $5s, and finally change to make her rent. She did it in front of ther kids, and it was heartbreaking. Ugh. Never again.

Being the type who doesn't like to get her hands dirty, I'd rather find something else.
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Ya, true. Finding quality tenants is probably a pain in the ass. It would be nice to buy a bunch of houses though for a fraction of their value and be able to sell 20 or so of them at once for 2x+ what you paid for them (while mitigating most of your risk).
 
narayan said:
Put it into the stock market. Trust me, it's less risky than you think.
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This is completely false. It's incredibly risky. It is mythology that it is not risky. Nothing is guaranteed, and past performance is only an indicator, not a proof of future success.

I recommend everyone consider the concept of confirmation bias.

Every day that the stock market goes up, reinforces the notion that it has a permanent upward trajectory. Which makes 50% slices as there is right now seem completely random. There is an element of randomness, but it becomes worse because people have built up a confirmation bias that what was, IS, and what was, ALWAYS WILL BE.

In '71, the Dow was around 885. Gold was $35 an ounce.

Gold has gone up about 30 times. The Dow has gone up about 8 times based on today's trading. Gold is not actually an investment, it is just a hedge against inflation. It is a standard that can be used to calculate the real price impact of monetary inflation on an economy.

People need to start thinking, and stop repeating conventional nonsense. Much of it is just silliness, repeated over and over.

Btw, there are people who make a lot of money in the market. And a lot that lose too. You just never hear about the losers, because again, we're all about confirmation bias. Just as if you knew the odds in Vegas, you would never gamble, and yet people continue to gamble anyways, convinced that the odds don't apply to them.
 
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