Sunday, February 8, 2015

Fundraising Solutions: Comparing The Options



By Eric Beans CEO of Texting Base, Inc./www.textingbase.com  

Fundraising has been around as long as politics itself and it has become vital in the current political landscape.

In 2008, 5.3 billion dollars were spent on federal elections.  Barack Obama spent 730M and John McCain spent 333M.  The average winner of a house seat spent 1.4M on his or her campaign. In 2012 that federal election number jumped to over 6.3 billion dollars.  Obama spent 985.2M and Mitt Romney spent 992.5M.  The house number jumped to 1.5M to win a seat. The numbers are rising fast!

As political battles become more expensive, political fundraising becomes more important to the success of these campaigns.  It is nearly impossible to win a race without outspending your opponent.  Outspending your opponent means raising more money. The traditional methods for campaign finance include hosting events, direct mail, email blasts and telemarketing.  With the meteoric rise in the usage of mobile devices, texting is starting to change the way organizations target donations.

You may be surprised to hear that direct mail is STILL the single biggest marketing expenditure.   In 2014 email was the most effective form of fundraising.  This is in spite of more than 70% of emails worldwide being reported as spam.  Text messaging was not widely used for fundraising in 2014.

In 2012 for every dollar spent on direct marketing, the expected return was $12.18 (across all industries). Those are great returns, but where should you spend your money?

The following numbers are averages across all industries.  Sources are listed at the end of the article.  Below is a breakdown of the various means used for fundraising:

READ RATE:

1)      TEXT: 98%
2)      MAIL: 66%
3)      EMAIL: 22%
4)      PAY PER CLICK: 3.81%
5)      TELEMARKETING: N/A

Text messages have 148.5% read rates over direct mail.  Pay per click is the impression and click through.  Telemarketing has no ability to brand your entity.  Either people pick up the phone or they don’t.  If you want people to receive your message, there is nothing better than texting.

RESPONSE RATE:

1)      TEXT: 19%
2)      TELEMARKETING: 8.21%
3)      EMAIL: 4.2%
4)      PAY PER CLICK: 3.81%
5)      MAIL: 3.4%

Again, text messaging comes in at over double the effectiveness of telemarketing.  Keep in mind though that the “response rate” for text messaging, email and pay per click involves clicking on a link.  The response rate for telemarketing and email involves sending in money.

CONVERSION RATE:

1)      TELEMARKETING: 8.21%
2)      MAIL:4.2%
3)      TEXT: 1.68%
4)      PAY PER CLICK: .22%
5)      EMAIL: .21%

Direct mail and telemarketing are so popular because they are consistent with high conversion rates.  Fundraising campaigns love that they can count on consistent numbers when they start a campaign.  The challenge as you will see in our next set of data, is that there are massive costs associated with direct mail and telemarketing.

COST PER MESSAGE:

1)      EMAIL: $0.01
2)      TEXT: $0.04
3)      MAIL: $0.49
4)      TELEMARKETING: $0.64*
5)      PAY PER CLICK: N/A

Email has a cost when sending through a service (as you should for compliance).  Texting costs can be as high as 10 cents a message and as low as 2.5 cents a message.  This is why email was the number one tool last year.  With response rates that are around 8 times as high as email, texting could cost up to 7 cents a text and still be a better option.

*Paying telemarketers $9/hour.

COST PER CUSTOMER ACQUISITION*:

1)      TEXT: $2.49
2)      EMAIL: $4.98
3)      MAIL: $51.40
4)      PAY PER CLICK: $99.47
5)      TELEMARKETING: $309.28

STACK RANKING THE MARKETING SOLUTIONS:

MARKETING TYPE
READ RATE
RESPONSE RATE
CONVERSION RATE
COST PER MESSAGE
COST PER CUSTOMER ACQUIRED
AVG
TEXT
1
1
3
2
1
1.6
EMAIL
3
3
5
1
2
2.8
MAIL
2
5
2
3
3
3
TELEMARKET
N/A
2
1
4
5
4
PAY PER CLICK
4
4
4
N/A
4
4

The clear winner is text messaging.

These numbers should make Campaign Finance Managers and Executive Directors all over America take notice. It should come as no major surprise that email and texting have a lower customer acquisition cost.  Staffing telemarketers takes space, resources, software, phones, management and per dial costs.  Direct mail takes paper, ink, stuffing envelopes, management, space and postage.

The cost of acquisition for texting is half that of email, which has the second lowest cost. Texting is also 124 times less expensive per customer acquisition than telemarketing and over 20 times less expensive than direct mail, which again was the number one expense last year for direct marketing.

SO WHAT DOES IT ALL MEAN?

Fundraising has a new weapon.  Mobile fundraising is just scratching the surface in this arena.  At any given moment, 91% of people in the United States have a cellular phone within arms reach.  This is power and effectiveness that should be making Campaign Managers, Finance Directors and Executive Directors perk up. 

Email was the most effective tool for fundraising in 2014, and texting has response rates up to 8 times higher, a 50% reduction in customer acquisition cost and a read rate over 4X higher.  Perhaps the most amazing part of this story is how little texting base been used thus far for politics and fundraising.

Much like telemarketing, there are certain rules and regulations that need to be implemented.  One of the first things an organization interested in using mobile marketing would be to change their contracts (online and other) to allow for the usage of cellular phones.  The second step would be to start collecting more mobile phone numbers.  The third step would be to look into regulation.

More information can be found here: 


Texting is significantly more effective when compared to other marketing techniques in terms of cost per acquisition, read rate and click through rate but it does not mean it should replace every other type of marketing.  To the contrary, the more effective fundraising campaigns incorporate multiple methods of contact and use the various tools to complement each other.

For information on 12 ways to reduce risk and stay within compliance for texting campaigns, please visit:


For more information, please visit:


Sources:








ABOUT THE AUTHOR:

Eric Beans is CEO of Texting Base, Inc., out of Orlando, Florida.  Texting Base is a cloud-based software that adds efficiency and power to business texting communications. Combining the efficiency of a “mass text” and the effectiveness of a personal text message, Texting Base uses patent pending software to allow businesses to build relationships with their customers like never before.  Prior to Texting Base, Eric Beans owned Premier Mortgage Capital, Inc., a nationwide state charted mortgage company.


Friday, February 6, 2015

Will the Market Crash in 2015?



Right now the U.S. stock markets are trading at record highs. This is the very reason so many analysts and investors are bullish about the stock market. With the stock market doing so well, why would anyone think a stock market crash could take place in 2015?

Let me first say this. I don't believe the market will crash in 2015. However, I also know the stock market is very volatile and things could change at any given moment. While the S&P 500 has climbed over 200% since 2009, it could just as easily start going the other direction.

Keep in mind the stock market is only as strong as the companies within them. Right now, on the surface, every thing looks great. The U.S economy is improving, unemployment is going down and consumer spending is on the rise. Here's the thing though. Yes, more and more consumers are spending. The problem however is they aren't using cash. That means debt levels are also on the rise.

One of the biggest things that can lead to a potential stock market crash in 2015 is the fact the stock market euphoria will eventually fade. Right now everything is good so investors are happy to invest. However, more and more investors are starting to realize just how risky the stock market is and can be. That means euphoric irrationality will no longer be a key driver in the stock markets. Investors will start to think twice before investing.

Another indicator of a potential market crash in 2015 is weak global growth projections. The stock market crashed back in 2008. Since then growth in the U.S. economy has been very inconsistent. In 2013 U.S. GDP growth was a very low 1.9%. In 2014 it wasn't much better coming in at just 2.2%.

The International Monetary Fund predicts in 2015 the U.S. economy will grow by 3.1%. The IMF previously estimated a 4% growth rate but quickly changed it. This is because they believe there is a 38% chance the eurozone will fall back into recession during the first part of 2015.

There are also issues in Japan, China and Russia as far as economic expansion goes. Here is something you might not be aware of. Close to 50% of the public companies traded on the S&P 500 get the bulk of their sales from Europe. So yes, the outlook for the U.S. stock market is pretty good. The problem however is not all stocks will perform well.

Here's the message I want you as an investor to understand. America is limited in its ability to carry the global economy all by itself. Despite what you are hearing from Wall Street, the truth is the market is overvalued. When compared to their 10 year average, stocks are priced much higher than they usually are. History shows us that stocks usually have a price to earning ratio of 15.

Right now that ratio is at 26.51. In other words, stocks are currently priced 76% higher than their 10 year average. That alone should tell you a lot about what's going on in the stock market. Again, I don't believe the stock market will crash in 2015. But if it does happen, I wouldn't be surprised.

Tuesday, January 27, 2015

Valuating A Pre-Launch Software Product

By Eric Beans

One of the hardest things to do is put a value on a piece of software before it launches.  This becomes even harder when investors tell you that your software is worth less than it actually is to set you up for a lovely "one-sided" deal.

How are you supposed to raise money on your company if you can’t put a value on it and defend it?  Not having a number that can be quantified puts software professionals and entrepreneurs at a severe disadvantage when talking with “money people.”  The last thing you want to do when talking to a potential investor is defending your valuation without any data.  The world of investors and capital is filled with snakes, sharks and vampires.  You will want to be prepared so you don’t get bit! 

There is no "perfect formula," but there is a better way.  A simple formula would benefit the investors as much as the entrepreneurs.  The "current system" is predicated on valuating a company based on guess work.  That "guess work" often includes projections from up to 60 months away to determine a valuation today.  In software, that is an eternity.

A better way would quantify and value the actual work performed, the idea, intellectual property and the potential.

Let’s help you put a real value or range of values on your company, so you can survive in the dog-eat-dog world of investors.

First of all realize there are 4 types of investors:

1)        Friends and Family
2)        Angel
3)        Peer-to-peer (crowd funding)
4)        Venture Capital

I left off banks because this entire discussion is pre-revenue.  Banks don’t lend money to pre-revenue companies in 2015.

Friends and family are your low hanging fruit, but don’t think for a moment they don’t want their money back with a profit just as much as a Sequoia Capital would (huge VC company).  Doing business with family and friends carries an emotional risk so keep that in mind.

When you get an Angel or Venture Capital company to invest, keep in mind you just agreed to sell your company within 5 years.

As a rule of thumb, the Venture Capital crowd looks for 10-30 times return on their investment.  They also expect 7 out of 10 investments to fail.  Let’s hope yours is not one of those!

Here are some additional categories of investors to sort through:

1)        Qualified or “Accredited”
2)        Unqualified


Qualified does not mean “they have money,” it means they are licensed to invest in SEC/Stock and high-risk items. This is a good transition into investors:

1)        With real money.
2)        Like to act like they have money.

Yes, some “investors” don’t actually have money and will never invest, but they ask a lot of questions and request a lot of information.  I will never figure it out.

Don’t forget there are two kinds of investors:

1)        Those who understand software.
2)        Those who don’t.

Real estate investors in particular seem to have a very hard time with software.  They want to put a value of ZERO on anything not on a plot of land or generating revenue.  The educational process is long and tedious as they are very much used to "assets."  If your investors come from real estate you will want to be aware of the inherent challenges because software goes against everything they have ever known.  That said, finding people with real money who will listen is never something you walk away from when trying to build your company.

Finally you have:

1)        Will offer you a fair deal.
2)        Pull out the Vaseline.

Some investors watch "Shark Tank" a few times and want to emulate “Mr. Wonderful” (who is actually a very skilled and fair investor).  Some of the deals I have been offered are so one-sided it makes one question the world we live in.  Desperate moves are almost always bad moves.  Keeping in mind you have something of value and believing in yourself (and sometimes a higher power) never hurts.

Now that you know what to look for, it’s time to put a value on your company.  Please feel free to provide feedback, as opinions can and do vary.

I scoured the internet and found a lot of information.  Most of the information is not of much use by itself but I put it all together to try and create a helpful tool for software companies and startups.

I read a number of articles on valuations for pre-launch companies to try and price an offering appropriately and found a lot of information that was helpful, but it is not an exact science.

Based on the articles I read the main factors to determine value are:

1) Sweat Equity
2) Intellectual Property
3) Potential

NOTE:  The most common way to value a company is projected revenue.  Projected revenue is always a factor, but to rely on it exclusively leaves a lot of room for expensive errors.  I am going to skip the valuation formula which allows you to back into a number based on revenue projections 3-5 years from today.  The reason I am going to ignore that way of coming up with a value is because:

a)  It's too easy for the person most likely to benefit from a higher value to manipulate by increasing hypothetical sales.
b)  Even if the person creating the pro forma is incredibly honest, the number is going to be incredibly inaccurate without a lot of luck.
c)  We are trying to quantify REAL value based on what is together TODAY.  Long term value is included in this formula, but is not (and cannot) be the only factor as it is a "guess."  You do not want the entire value of your company riding on a "guess."
d)  The investor should put their own number on "potential," and not rely on a biased source.
e)  The formula below helps investors separate "real software" from "all sizzle, no steak."   Let's minimize the mistakes and level the playing field, shall we?

Too much emphasis is on long term revenue and investors almost never "pop the hood to look at the engine."  Right now, a pretty design with 3000 lines of HTML/CSS/JavaScript could easily be valued the exact same as a product with 300,000 lines of real code.  This makes NO sense.

This would be like putting the same price on every computer that looks the same, and ignoring RAM, Processors, etc.

Don't get me wrong, potential is a huge factor but should not be "the only" factor.

So on to other ways to value your company...

1) SWEAT EQUITY:  This can be quantified in a number of ways.  The general billing rate for IT people is $80-$250/hour (a big range).

Using the sweat equity formula, here are hypothetical numbers for a company with 1 founder and 4 employees scattered in duration with a new hire every 6-12 months.

- Employee 4 has been on board for 6 months.

- Employee 3 has been on board for 18 months.

- Employee 2 has been on board for 24 months.

- Employee 1 has been on board for 30 months.

- Founder has been on board for 36 months.

2,080 hours a year equates to 173.33 hours a month.

This would mean (first number is $80/hour, second is $250/hour):

Employee 4:   $83,198.40 - $259,995.00

Employee 3:   $249,595.20 - $779,985.00

Employee 2:   $332,793.60 - $1,039,980.00

Employee 1:   $415,992.00 - $1,299,975.00

Founder:        $499,190.40 - $1,559,970.00

Total:  $1,580,769.60 - $4,939,878.00

Mean: $3,260,323.80

2) INTELLECTUAL PROPERTY: This is where most of the value of a software company lies.  The intellectual property includes:

* Patent
* Trademark
* Code

PATENT:  To attempt to put a value on a patent is the toughest part.  The value is in the upside of the idea and the actual money spent on obtaining the patent but this is hard to quantify.  Investors do need to fall in love with the idea, and having something that is proprietary only helps the valuation.

TRADEMARK:  The branding, marketing and name of the organization have value.  Do you have marketing videos?   Each video can be valued between $2,000 and $6,000.  Do you have training videos?   Each training video can easily cost $1,000/minute.  Have you trademarked the logo?  That has value. 

Social media does have value and investors will want to know the numbers.  Unless this IS your company value, don’t expect a massive valuation for having a few thousand followers.  Only calculate this if it’s a high source of conversions (i.e., you are not “pre revenue”).

For this example company, let’s assume they have 30 videos at $2000-$6000 including training and other informational material, a trademark and a patent.

Value of videos:  $60,000 - $180,000

Trademark Cost:  $1000

Patent Cost:  $15,000

CODE:  Code is the centerpiece of your product. This value is closely tied to the "sweat equity" number, but as a multiple of the sweat equity.  What that "multiple" is depends on the upside of the idea.  I have broken out the valuation of code in more detail below.  This is the key piece for any software company.

3)  POTENTIAL:  The best way to gauge potential is through your projections for gross and net revenues.  Do you have an exit strategy number?  Is it a number supported by similar valuations?  Be realistic.  This is NOT going to be included in the formula.  Let’s assume our hypothetical company has a 30 times return on revenue projection (which would be a 1X as this is in the range of ROI that major investors look for).

These are how the numbers work out:

Sweat Equity:  ~3.26M

Patent:  $15,000 minimum

Brand:  $61,000-$181,000

Potential:  1X (remember, this is standard 30X return - 60 times return would be 2X)

Estimated Valuation Using This Method:  ~3.34M-~3.46M

Mean: ~3.4M

CODE, WHERE THE MAGIC IS

One of the common ways projects get valued is CPLOC or "cost per line of code." (Line of code is also called "SLOC").

There are four main issues with using CPLOC for evaluating work or using it as a valuation method.

1) It's hard to know exactly how many lines a project will have BEFORE or DURING development.
2) A company could pad the lines of code to increase costs.  If you are reading this and thinking “we need more lines of code,” you will fail horribly well before you raise money.
3) Code varies greatly in quantity and quality.  There are great and horrid programmers.  Less is often more.
4) Different languages/environments can create different results.

For the purpose of this article, we are going to assume your product works.  It is far more accurate when you have a product and your programmers have worked hard to reduce the lines of code, which is what good programmers do.

I found this matrix on CPLOC "cost per line of code."

The cost range they came up with is that it costs $15-$40 per line of code.

$15 is for the easy stuff (yes, "stuff" is an industry term).

$40 is for the complicated stuff.


A second site came up with:

$12 is for the easy stuff.

$103 is for the complicated stuff.


So now that you understand and can validate the formulas, how does this translate to your company?

Plug in your numbers off your GitHub account.

Here is some information on how to pull this data off of your Git:


Let’s use a hypothetical and plug in the numbers.

Our imaginary company has a healthy 300,000 lines of good code.  "Good code" is defined as code being used for the purpose of the product…no junk.  Our hypothetical company has a fairly complicated application directly in the middle of easy and complicated.

The value of our hypothetical code using the first formula:

Low End:  $4,500,000

High End:  $12,000,000

Middle:  $8,250,000


The value of our hypothetical code using the second formula:

Low End:  $3,600,000

High End:  $30,900,000

Middle:  $17,250,000


You might be wondering whether embedded software is easier or more difficult than E-Commerce software.  It is easier per government data:

Embedded vs. E-Commerce 2:58: 3:60 as a linear productivity factor.


What this means is that the numbers produced under the first formula are slightly low, but we are going to stick with them for simplicity.

The formula used to price out a project that is not yet developed is:

Linear Productivity factor*KSLOC= X Person Months

3.60*300=Effort=1080 Person Months (feel free to check these numbers inside the link).

Using this formula and an average salary of $60K (which is low), our project could have been billed out $64,800,000 to develop!

This is NOT going to be used for your valuation, but could be used for bidding out future projects. 

So now you have a lot of real, quantifiable information to take to an investor. 

Using these numbers we came up with:

Formulas:

A)     (Sweat Equity + Intellectual Property + Potential) ¯x= 3.4M
B)        {($15 x LOC (300K)) + ($40 x LOC (300K))}/2 = 8.25M
C)        {($12 X LOC (300K))+ ($103 X LOC (300K))}/2 = 17.25M

FACTORING IN RISK FOR THE INVESTOR

This article would not be complete if we ignored investor risk and did not factor that in.  The reality is the over 2/3rds of software projects never work.  In the examples above we have a product that works, which significantly reduces the investor risk.  Investors need a way to protect themselves against investing in a concept that never quite finishes.  Adding a simple formula to the end of the "final valuation" that multiples based on how much of the project is done allows the investor to capture that risk.  Currently, the investor looks at the team and tries to use their "gut" to answer the question "can they get this done?"  Let's quantify it, and cover the risk.

For example, if the project is about half done and investor would multiple the valuation by .5 to cover the risks.  Risks can also be managerial, revenue and/or regulatory.  The risk multiplier will always be a number <1 (as there is always risk) and would be lowered the closer the product was to being released.

This gives investors another honest and fairly quantified method of protecting their capital.

In our product below the software works and is ready for launch.  For simplicity sake let’s make the risk factor a 1.

FINAL VALUATION:

Formula {(A+B+C)/3} * Risk = Final Valuation

{(3.40M+8.25M+17.25M)/3} * 1= 9.63M

So we are saying that our hypothetical company is worth 9.63M. 

What does it mean?  Not much unless your idea can back it up. In this example we have a LOT of code.  The space shuttle has 400,000 lines of code.  300,000 lines of meaningful code should be valuable.

Keep in mind the average “app” has 50,000 lines of code.  Most companies will NOT be worth almost 10M before launching.

For a VERY BASIC example, a 1-person company for 1 year and 50,000 lines of code would be:

(343,200+1.375M+2.875M)/3 * RF1=~1.5M

The formula is spot on.  Fully developed applications routinely raise money between 1-3M before launching, which means most experienced software investors would not flinch at this valuation (assuming the product/idea is not a bad one).

If this app were half done, the risk factor of *.5 would be applied bringing the valuation down to $750,000.

This again is not an "exact" number, but it does factor in and quantify elements of a project that have previously been left to guesses, instincts, intuition and looking in a crystal ball.

CONCLUSION

The entire point of this exercise is that you need to know the value of your own idea, be able to quantify it and defend it when an onslaught comes from the people with money.  When you are in negotiations, you will often be faced with some tough decisions. 

Some snakes are going to try and bite you.  Your job as an entrepreneur is to make the best decisions you can for your company. 

If your idea is good, your valuation is realistic and your connections are right, you should be positioned well to raise money.  That still doesn’t mean it will be easy…people turn into vampires when money is involved. 

We all wish someone would just throw money in our direction and say “I trust you!”  The reality is you need to be smart, know your value and target the right investors for your product.

At least now you hopefully have some good ammunition to support a strong negotiating position so the snakes, sharks and vampires don’t get the best of you.

At the end of the day, it's up to the people with the money to come up with a number they are comfortable with and for you to agree to that number.  At least now you will have a few cloves of garlic to keep the vampires at bay! Good luck!

Eric Beans
CEO Texting Base, Inc.

Friday, March 21, 2014

New Soccer Coaching Drills App To Be Released Live in the App Store!


Soccer Coaching Drills App Icon

Royal Oak, MI – March 21, 2014 - A new soccer coaching drills app will be released live in the App Store next week. If you are one of those looking for new soccer drills for your team then this app is for you. It is beneficial especially for the new soccer coach who needs to learn the core drills in order to increase the team’s skills and get them winning some games. You can find more details about this new app on this website at www.soccercoachingdrills.net.

Research has shown that information is much better retained when combined with a visual aid. Thus the creators of this new soccer coaching drills app include in-depth coaching points as well as animated session plans letting the coaches see exactly how a session will look before they reach the field. These features allow coaches to optimize coaching sessions, design productive and effective coaching plans and quickly understand new session ideas.

With a wealth of combined coaching and playing experience, this new app showcases a host of innovative coaching sessions providing you with the tools you need to increase your coaching knowledge and improve the confidence and skills of your youth soccer team. This app contains a huge range of features and functions to help get you creating the coaching content you've always wanted to. What’s great? Well, this app gives you over 70 of the best soccer drills in your pocket!

The app features 70+ Drills that will help with the following: • Attacking • Dribbling • Defending • Passing

Soccer Coaching Drills App shows step by step drill animations with detailed text instructions designed to improve drills and skills. The soccer coaching drills app will benefit whether you're a beginner, intermediate, or even the advanced coaches. Therefore this is good for any level of soccer coach.

Here are some of the testimonials from satisfied users and you can read more at the website. “This app gives me so many practice drills to use with my team. It's totally worth it!" – Ken and another one says "I just starting coaching my son's soccer team. This app is so handy to have as a resource." – Brian

SoccerCoachingDrills.net constantly adds new videos and content. The app is free for everyone to download however if you want all the coaching drills there is an option to unlock all videos for $19.99. For more information, visit the website at http://www.soccercoachingdrills.net. 

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Contact Info:
VSM Enterprises, LLC

Sunday, March 16, 2014

MAKE IT TO THE TOP OF YOUR NICHE WITH A NEW SERVICE PROVIDER IN THE MARKET - MoreThenSeo.info

March 17TH 2014- A new choice in the world of SEO is available to online and offline businesses now. This new company, http://morethenseo.info/  has the perfect search engine optimization and online marketing services that businesses in the world would need to dominate their niches. The company has launched an innovative SEO program powered by hugely experienced and skilled team members, which will provide businesses with top rankings with the biggest internet search engines.

For businesses that are just starting up or are looking forward to be ranked high and indexed by renowned search engines, http://morethenseo.info/ is now providing the most basic and also top priority SEO services. The company is introducing a new deal worth only $19.95 that will provide businesses with top SEO rankings with the 66 top search engine giants.

Services provided by http://morethenseo.info/ will include SEO, website appraisals, MRR products free of cost, web design and webmaster tools. The working strategy of the company will include researching potential keyword phrases referring to the niche a certain business and help the business make it to the top of the search engine indexes around the world.

The company also provides media related marketing on social networks like Facebook, Twitter, LinkedIn, Pinterest etc. Also listing services are provided for businesses which help them get ranked in and be found by. “Our company is aiming to help local and global businesses make it to the top of their niches. We’ve started small but our aspirations don’t stop here”, says the company’s hardworking strategy team. “We have hardworking and dedicated professionals working with us. Most of us are fresh pass outs and with new and innovative ideas for the industry. For us the sky is not the limit”, they further added.

If you think you have got what it takes to be on the top of your niche, http://morethenseo.info/ can help you get indexed and ranked high with search engines. The company can help you make it to the top and get proper recognition you deserve. Build your business and market it properly online with the help of this new company in the market. Although new, the company is striving to make a name for itself through its hard work and dedication.

To learn more about the company and services offered, you can visit http://morethenseo.info/.

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MoreThenSeo.info
PO BOX 1312 Jamestown CA

Friday, March 7, 2014

What You Need To Know About Forex Trading Systems Vs. Commodity Trading

Recently many people have become very interested in the speculative Forex trading market. It’s a very popular market, indeed; however, there are many who wonder if there might be a better one. People just starting out in a career of speculation and trading often seek to explore other alternatives such as commodity trading or currency futures. In this article, we will compare and contrast these forms of trading to help you decide what will work best for you. Read on to learn more.

A few points to keep in mind when thinking about investing in Forex…

With any life changing decision you make, your personal preferences should loom large. After all, you are the one who will be doing the work and reaping the benefits. Some people greatly prefer a physical market, such as the commodity market because this sort of market deals in goods and services that are tangible in everyday life. More mature traders are more likely to be comfortable trading in these known quantities.

Regulations concerning Forex trading and commodities trading are different. Forex has far fewer regulations, and the ones it does have are often applied unevenly. Very frequently, a Forex trader can just use a workaround to bend the rules a bit. This is absolutely untrue of commodities. If you are person who likes more flexible rules, you will like Forex trading better. If you like hard and fast rules, you will prefer commodities trading.

Your startup amount is a lot smaller with Forex trading than with commodities trading. You can get started with Forex with pocket change as compared to commodities trading. There’s a bit of leverage to be had in commodities markets, but to be realistic you have to realize that your influence in commodities is strongly measured by the size of your investments. If you want or need to get started with investing on a shoestring budget, Forex is probably the right choice for you. If you have some money to spare, and you want a more sure bet, you may prefer commodities.

Of course, you can always combine the two by starting out with a small budget in Forex and then reinvesting your earnings in some solid commodities. Diversification is always a smart choice. So is education. As you become more and more successful, remember to invest some of your earnings in learning more about the commodities market and Forex.

No matter what you invest in, you should be careful. Only go with proven financial houses and brokerage firms, and follow the same rules you would follow in a gambling casino. Set the amount you are willing to lose and don’t extend it. Keep a cool head, and don’t make impulsive decisions. Establish a schedule for trading and stick to it. Weigh your investments carefully and don’t make foolish investments against bad odds.

No matter how you decide to manage your investments, you should play it smart. Beware of being tricked and cheated. It happens all the time. Investigate every opportunity to invest very carefully. Make certain you are dealing only with legitimate players. Be sure to safeguard your personal information and play your cards close to your chest.

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