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Nothing makes an entrepreneur feel more excited than understanding their true profit potential. Is your chosen industry growing, or slowing down? Let’s face it, how many times have you had the right approach, but not the materials to rely on to gain confidence in your business pursuits. Direct Marketing growth will give affiliate marketers the confidence they need to be tremendously success.What is Direct Marketing, and why is it GrowingFrom huge corporations, mid-size companies, to start-ups all have products or services to sale. The main question they ask themselves are, who is their target market, and what is the best way to reach them? Some companies may choose to use direct marketing. Direct Marketing is selling products and services right to the end-user without a middle man. For example, clicking links from our personal email box then being swept away to another website to see a product, or service promotion. This is a common practice for people who regularly make purchases online in this day in age. According to the newly published eMarketers Report titled “Worldwide Retail and Ecommerce Sales eMarketer’s Updated Forecast for 2016-2021″. The report mention:• In 2017, retail ecommerce sales worldwide reached $2.304 trillion, a 24.8% increase over the previous year, eMarketer estimates. Mobile was a key factor, as M-commerce accounted for 58.9% of digital sales.• Global M-commerce sales rose 40.3% last year to $1.357 trillion, representing 6.0% of total retail expenditures. Markets with significant mobile spending include China, Japan, South Korea, the UK and the US. Growth has been helped along by consumers feeling more comfortable making purchases on their smartphones and, in some regions, a greater selection of low-cost items like apparel, which encourages impulse buying.The growth of direct marketing is coming from the use of the internet, and more potential customers are spending a significant amount of time on it each day. With this idea in mind, we are drawn to the accessibility that the internet offers us. From our tablets to smartphones are digital devices that we carry with us every day. As technology increases it places a consistent demand for the need of the internet. Businesses that fully recognize this dynamic will strategically place themselves in a position to take advantage of this growth. This is why direct marketing will be the best approach to reach a target audience from now into the future.Using Direct Marketing As A Business StrategyWith online sales increasing companies can better track what’s being sold, how much is being sold, and what region is purchasing the most of that product or service that is being offered. By understanding this, companies are able to maximize their marketing efforts in the best products in the right places, which will, reduce marketing expenses, and enhance profit margins. It’s all about measuring profitable performance. When companies are using a direct marketing approach most financial questions are being answered more effectively.How Does Affiliate Marketers ProfitThere’s a great line between working on your business, and working in your business. Working on your business is creating products and services that will better help your customers, or finding different ways to aid them with different problems they may face. Working in your business is the daily activities of promoting products or services getting it in front of your target market. So, where does affiliate marketing step into play? Affiliate marketers provide assistance with working in company’s businesses. Affiliate marketers are able to leverage their expertise in a particular subject to help promote the product or service. This allows other companies to do the heavy lifting of creating products that fits well for customers, and allow us the affiliate marketers to use our knowledge to demonstrate the most effective ways to utilize the product or service.As savvy affiliate marketers we realize that matching a direct marketing approach with a growing industry translates into great monetary success.
With a broad stroke concept of the benefits of direct marketing and how it relates to profits of an affiliate marketer. We can, if we wanted, dig deeper into the subject and find out how it directly relates to your profitability of what you would like to market. This is no more than researching the companies you would like to be an affiliate with, and seeing if they have a direct marketing approach that you are able to apply with your business pursuits. Besides, every entrepreneur should feel excited when they understand their true profit potential.

There are three main reasons many people fail building business credit. The 1st BIG reason people fail, is that their business isn’t setup credibly in the lender’s eyes. The perception lenders, vendors, and creditors have of your business is critical. Before applying for business credit a business must insure it meets or exceeds all lender credibility standards. There are over 20 credibility points that are necessary for a business to have a strong, credible foundation.To insure you are seen credibly, it is very important that you use your exact business legal name. Your full business name should include any recorded DBA filing you will be using. Insure your business name is exactly the same on your corporation papers, licenses, and bank statements.Whether you have employees or not your business entity must have a Federal Tax ID Number (EIN) to start getting business credit. Just like you have a Social Security Number, your business has an EIN. Your Tax ID number is used to open your bank account and to build your business credit profile. Take the time to verify that all agencies, banks, and trade credit vendors have your business listed with the same Tax ID number.Your business address must be a real brick-and-mortar building, deliverable physical address. It cannot be a home address, cannot be a PO Box and cannot be a UPS address. Some lenders will not approve and fund unless this criteria is met. There are Business Address Solutions available at companies like Regus including address only where you receive mail and packages at your dedicated business address.You must have a dedicated business phone number that is listed with 411 directory assistance, under the business name, to successfully obtain business credit. Lenders, vendors, creditors, and even insurance providers will verify that your business is listed with 411. A toll-free number will give your business credibility, but you must have a LOCAL business number for the listing with 411.Lenders perceive 800 number or toll-free phone numbers as a sign of business credibility. Even if you’re a single owner with a home-based business, a toll-free number provides the perception that you are an even bigger company. It’s incredibly easy and inexpensive to setup a virtual local phone number or a toll-free 800 number.A cell or home phone number as your main business line could get you “flagged” as an un-established business that is too high of a risk. DON’T give a personal cell phone or residential phone as the business phone number. You can forward a virtual number to any cell or landline phone number.Credit providers will research your company on the internet. It is best if they learned everything directly from your company website. Not having a company website will severely hurt their chances of obtaining business credit. There are many places online that offer affordable business websites so you can have an internet presence that displays an overview of your company’s services and contact information.It is important to get a company email address for your business. It’s not only professional, but greatly helps your chances of getting the thumbs up from a credit provider. Setting up a business email address is just too easy and inexpensive to neglect.The 2nd BIG reason people fail building business credit is that they apply using their social security number. Always apply first without using your social security number. Some vendors will request it and some will even tell you on the phone they need to have it, but submit first without it. Many don’t even know you can get approved without it.When you apply using your SSN you almost always are giving a personal guarantee. One easy way to know if you have business credit already is if you obtained credit without signing for it and providing your SSN. TRUE business credit doesn’t require an SSN in most cases to qualify.Business credit is using your EIN to qualify for credit. When you have enough credit built for your EIN, you can then get approved without providing your SSN. If you provide an SSN, your personal credit WILL be pulled in most cases. That personal credit will then be used for the approval decision.Most credit issuers will approve you without your SSN if your EIN credit is strong enough. If your EIN credit is not good enough, you might be declined and they then might ask for your SSN. No matter what ANY credit representatives tell you, credit CAN be obtained based on your EIN only.The 3rd BIG reason people fail building business credit is that they apply for credit in the WRONG ORDER. A business credit report can be started much the same way as a consumer report commonly is, with small credit cards. The business can be approved for small credit cards to help them build an initial credit profile. These types of initial cards in the business world are commonly referred to as “vendor credit”.A vendor line of credit is when a company (vendor) extends a line of credit to your business on “Net 15, 30, 60 or 90″ day terms. This means that you can purchase their products or services up to a maximum dollar amount and you have 15, 30, 60 or 90 days to pay the bill in full. So if you’re set-up on Net 30 terms and were to purchase $300 worth of goods today, then that $300 is due within the next 30 days.You can get products and services for your business needs and defer the payment on those for 30 days, thereby easing cash flow. And some vendors will approve your company for Net 30 payment terms upon verification of as little as an EIN number and 411 listing. When your first Net 30 account reports your “tradeline” to Dun & Bradstreet, the DUNS system will automatically activate your file if it isn’t already. This is also true for Experian and Equifax.You need to have a total of at least five (5) Net 30 day pay accounts reporting. Some vendors require an initial prepaid order before they can approve your business for terms. Vendor accounts are hard to find, so keep in mind that your vendors do not necessarily have to serve 100% of your business needs.Avoid these three BIG mistakes to quickly build an exceptional business credit profile and score that you can use to obtain credit for your business.

PROBLEM Since early 2006 to the present our financial system in this country has been in disarray and significantly crippled. Hundreds of banks have already failed and been closed; hundreds more have been forced into mergers (shotgun marriages) with stronger banks; hundreds more are operating as “zombie” institutions-they look like banks and they try to act like banks but they cannot make loans. Most of the “too big to fail” banks based in New York, California, or Atlanta appear to be operating normally, but the truth is they are not lending to the “little guy”. They are lending to the publicly traded corporation primarily. In plain English, getting a loan from a bank for the average borrower is next to impossible.SOLUTIONS – Don’t operate your business or don’t do the transaction
- Pay all cash-don’t borrow
- Borrower from non-banks-friends, family and private lenders
- Do transactions using non-traditional methods-creative financingJUST WHAT IS “CREATIVE FINANCING? Creative real estate financing is an all-inclusive term. It essentially means arranging a transaction whereby any and all types of financing is considered to do the deal. Most or all of these types of financing happen to fall outside of the standard government mandated banking guidelines and restrictions. The financing vehicles considered do not conform to Fannie Mae, Freddie Mac, FHA, VA, or other HUD guidelines.Examples of “creative” financing vehicles are: Private Party Financing, Seller Financing, Bank lending that does not comply with the HUD guidelines, Exchanging Equities, Lease with Option Financing, Contract for a Deed Financing, Equity Sharing Financing, Home Equity Financing, Credit Card Financing, and any combination of the above.EXAMINING “CREATIVE FINANCING” TOOLS INDIVIDUALLYOf all of the various types of creative financing tools mentioned above the most common and the most easily understood is private party mortgage financing, which includes seller financing. The underlying concept is that the bank is not involved in the transaction and the private party lender takes the place of the bank. There are many advantages to removing the bank form the transaction. The main benefits are:- Qualifying (accepting) the borrower is the decision of the private party
- Qualifying (accepting) the property is the decision of the private party
- The interest rate and the monthly payment is the decision of the private party
- The maturity date of the loan (balloon date) is the decision of the private party
- The down payment amount is the decision of the private party
- The time necessary to close the loan is much shorter
- A valuable, long-term stream of income is created
- The interest earned may be higher than any other available investmentAll of these benefits, when combined, make private party mortgage financing a very powerful tool to cause a transaction to close that otherwise would have failed. And, additionally, they may offer investment benefits not elsewhere available.THE OTHER SIDE OF THE COINNow, after examining the benefits of private party financing, we should, in fairness, look at the negative aspects. No tool is the perfect tool for all jobs, and no type of financing is the perfect type of financing for all transactions and for all people.The negative aspects are summarized below:- Emotionally, not everyone is comfortable waiting for monthly payments
- Emotionally, not everyone is comfortable with financial details
- Emotionally, not everyone is comfortable with a risk of loss
- Emotionally, not everyone is comfortable doing something new
- Practically, a lump-sum of cash may be needed nowMAKE IT A WIN-WIN TRANSACTIONIt is very important to honestly and objectively evaluate each part of the financing transaction. The goal is to make it be a win-win transaction for both parties. Are the personalities of the borrower and the lender compatible? Has the note and mortgage been properly structured so that there is a high probability that the borrower can meet his obligations over the term of the loan? Has the lender anticipated accurately his future need for cash flow income and lump-sum income?As with most important things, the devil is in the details!In subsequent articles we will examine some of the other types of “creative financing”.