Thursday, August 20, 2009

Free is Not Good Enough

Why Nothing in Life is FREE

“Nothing in life is free.” That old saying rings true when it comes to offering online freebies. Even when you offer something FREE to consumers, that doesn’t mean there isn’t a “cost” behind that freebie.

Everyone is shaking up the Internet with freebies – sign up for this spectacular newsletter and receive a FREE SPECIAL report, whitepapers, or the latest and greatest trial sample.

Freebies don’t necessarily equate to “high value.” Have you ever tried a free sample and thought “Aw, no wonder they gave away that product for FREE!” It just wasn’t THAT great! You don’t want to be that kind of online marketer!

Sometimes the “buck stops there” – literally! Companies think they can blast out their freebies and consumers will automatically jump all over these freebies.

The Art of Persuasion

What makes YOUR freebie better than your competitors? With all the free offers floating around on cyberspace, you need to give people a GOOD REASON to sign up for your freebies.

How many times have you unsubscribed to newsletters because they were boring and didn’t offer relevant information? The last thing you want is to send worthless content to your subscribers.

“Time is money” and your visitors/customers don’t have a lot of free time on their hands. Monetary costs are just one aspect for consumers– what about the time it takes to READ your free content and marketing campaigns?

What can you do to PERSUADE people to actually WANT to read your content and actually USE your free samples?

It comes down to sales persuasion tactics!

Persuasion gives people the choice to make an informed decision – persuasion is not about manipulation or hype.

However, persuasion will only get you so far. Reel them in with free stuff BUT give people want they actually want. VALUABLE content is what makes people come back for MORE…and WHY people will buy your products and services!

•INCORPORATE POWERFUL CALLS TO ACTION

o HOW will your free content SOLVE crucial problems for people?

o What VALUE do you offer them to make them WANT free information?

oHow will it CHANGE THEIR LIVES on a positive, long-term basis?

o Add URGENCY to your call to action – they NEED to read/try your content or product NOW. Give them every reason to take action immediately!

• SOCIAL PROOF – People will “jump on the bandwagon” and copy other people’s action (especially if they like and trust them). Use testimonials and endorsements. SHOW benefits that other people have experienced as a result of signing up for your free newsletter or report.

• VISUAL ELEMENTS – Use photos, music and videos as part of your freebie offers. People are visual creatures and you are more likely to really CAPTURE their attention through visual elements.

• SHOWCASE YOUR AUTHORITY/EXPERTISE – Show you’re an authority/expert in your field. Link to third party sites to back up your facts when offering free information (people will trust you even MORE!) Reference figures of authority (i.e. government/political officials, health leaders, etc.)

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What is the Top Plan For Bear Market Investing?

The past was a horrible time for the market as decline fears scared away all the buyers. The Institute of Supply Management published a crucial index viewing that non-manufacturing concern interest fell Hugely. The Dow Jones Industrial Average followed suit, down 370 points or almost 3%. It was nasty and lots of people were losing profits.

I hope you listened to our alert.

The 200-day moving average had just bowed negative. When this last occurred, we Had a two-year recession in the market. We warned of rough era ahead.. . Who thought we would be correct so fast?

Looking at the full market, not a single sector was up. Conjecture who hurt the worst? That's right; the economic services industry posted a loss of 4.6%. They were outdone only by the construction & supplies industry which lost 4.8%.

I'll say it again. Stay away from the fiscal and construction industries for now. I know they are dealing at multi-year lows and appear to offer desirable dividend yields, but they are classic estimate traps. The bad news continues to filter in, losses are mounting and you won't make money being premature on this trade.

How can you profit in a bear market?

The secret to making money on the long side right now is short-term trades. Don't kid yourself. We're in a bear market, and the rallies will be short lived. Positioning your portfolio for a bear market is not difficult. Take a few moments and do it today.

One of the best ways to hedge a portfolio and profit from downside movement is through Inverse ETFs. The Proshares Short S&P 500 (SH) ETF is one of the best. As a matter of fact, you could have purchased this inverse ETF on Friday for $64. On Tuesday it traded for more than $66. That's a quick 3% on your money in just a few days.

I honestly like Inverse ETFs. They allow you to "short" the whole market in a single transaction. You don't need a margin account to place the trade. And, unlike open-end mutual funds, you can enter and exit your trades at any time during the trading day.

Although Inverse ETFs are relatively new to the markets, they have become widely used. For example, the Proshares Short S&P 500 (SH) was established in June 2006. Average trading volumes, however, are in excess of 563,000 shares a day. This liquidity makes the Bid/Ask spread tighter which helps us minimize our trading costs.

One word of Warning. These funds are collected of many underlying stocks. The estimate tends to fluctuate more than normal at the open and close of the market. Sometimes, these ETFs start trading as much as 15 minutes after the market opens. As a general rule, I suggest placing orders at least an hour after the open or an hour before the close.

Remember, we can manufacture money in a bear market. We just need to be suitably positioned. Inverse ETFs are a great way to accomplish this.