Understanding risk
UPDATE 2007: We are no longer participating in
paid surfing. Too many failures. Too many people
losing money. Too risky. Suggest you do the same.
There is always a degree of risk in any business
(including internet-based business activities) and
in any investment. Although the cost of online
ventures is usually much less than traditional bricks
and mortar business, it is harder to follow up the
owners if you lose your money. It's part of the risk.
With paid surfing and also other online money making
opportunities, there are no guarantees
about what you will earn from these programs. Well,
come to think of it, there are no guarantees if you
buy shares on the stock exchange or if you invest
in forex or futures or...
If you play big, you can win big - or lose
big. So if you can't afford to lose money,
you should NOT participate.
Suggested strategies
Start with an amount that will NOT cause hardship
if you lose it all.
Aim to recover all your initial costs as soon
as possible. Yes, pulling out your initial money early
will slow your progress down but it will also reduce
your losses in the event that the program falls over.
After you've covered your initial costs, each time
you get paid, withdraw some and re-invest some.
Sometimes you may want to withdraw your entire earnings.
The main point here is... be sure to profit take.
From our point of view, we've only really profited
when the money is back home in our bank account.
Do not keep large balances in your payment processor
accounts. Yes, there are fees involved in bringing
your funds home but weigh those against the possibility
of unexpected difficulties with payment processing
companies (think StormPay, think INTGold and others
over recent years) or with your individual account.
These payment processing companies do not come under
the same government regulatory supervision as banks
so problems can occur.
Don't withdraw tiny amounts because of the
fees. On the other hand, there is a risk when you
choose to compound your profits -- the risk being
that the program may fail before you withdraw any
cash, so don't let the withdrawal fees turn you away
from getting a payment while you can... if it's not
too small.
Diversify. Don't put all your eggs in one basket,
no matter how good that basket is. If you join some
of the higher-paying (thus higher risk) programs,
you would be wise to also join some of the more stable
lower-paying programs. This is an example of a diversified
approach.
Pay the low risk, long term programs from
your high risk programs. Not the other way round.
Never risk funds you cannot afford to lose
If you lose your money, you cannot blame other people.
Your decisions are entirely your own, at your risk
entirely. We're all grown-ups here. The disclaimer
below says the same thing, just in more words and
bigger words.
- If you play small, you win small.
Or you lose small.
- If you play big, you win big. Or you lose big.
Diversify
Don't rely on just one or two programs. No matter
how good your favourite program is, how can you or
they guarantee it will last forever? Even world leading
corporations (think Enron) and companies listed on
the stock exchange fail. When your current favorite
business slows down or fails, what will that do to
you?
Take paid autosurf sites, for example. We try to
select the best of them to put our own money into,
but historically paid to surf programs have a high
mortality rate. So your best plan is to diversify
-- dont put all your funds into one surf site. Instead,
join several. When one paid surfer falls over, you're
not hit so hard if you have a handful of paid-to-surf
sites.
More considerations for your risk management strategy
Ask yourself...
What is the source of the income for a program
you are interested in? Is it sustainable?
No refunds!
You should understand that 'No refunds' is the general
rule that you will find for 'make money' programs
on the internet. A few programs stand out by allowing
you to withdraw your funds.
Watch those earnings reports
When examining somebody's published earnings figures,
be careful to exclude any referral income unless you
are also able to promote the program. Compare apples
with apples.
Read their Terms & Conditions
To reduce your exposure to risk, we strongly suggest
that you always read the terms of programs you are
considering, along with the site's FAQ. Make sure
you clearly understand how the program works, where
the money comes from to pay you, and what you have
to do to earn your money.
Do your due diligence
Here is information on how
to investigate internet business and investment opportunities...
The
Profit Lance Automated Wealth Course - Instead
of chasing every dream that is described to you, and
being led by promises of quick riches to buy into
every program or e-book, you should instead focus
on acquiring real long-term internet marketing skills
that allow you to identify opportunities and monetize
them, almost as if by will - and - in the shortest
time possible. This is what the gurus do. This is
the secret. There is no other secret. There is no
other "magic formula".
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