Affiliate Marketing, Your Business, and Taxes

Taxes, Taxes, Taxes. Be it an on-line business or an off-line business,
it is always wise to research this area before getting starting. As you may know,
the IRS does not excuse ignorance of the law. Thus, I hope this Intro to your tax responsibilities will answer some of the first questions that you may have -- and will encourage additional questions and research.


Your Affiliate Business and Taxes
By Vickie J. Scanlon


Starting a home-based business on the Internet is easy you say.
You have your web page built, your affiliate links and you're
ready to go. Not really, you need to make sure you have all your
i's and t's crossed when it comes to taxes.

Getting Started

First, you will need to register your business name with
the city government. When I registered my business name with the
city I was charged $11 -- so expect to pay a small fee when filing
this legal document with your local government.

Second, you need to apply for an Employer Identification
Number with the Department of the Treasury (IRS). To file for an EIN,
you will need to complete Form SS-4. You can find these forms
in post offices, public libraries, online, or by contacting the IRS.

Once you receive this document, keep it in a safe place -- in other
words, don't crumple, stomp, or throw away -- this identifies you
and your business with the U.S. government and you will need this number
when you file your taxes.

Third, you will need to check with your state government to determine
if you need any specific licenses. Such as Retail Sales Tax Permit --
if you are planning on selling items offline or online.

Fourth, you may want to open a Business Account at your local bank
once the money starts to roll in. Keeping your money separate from
your family account -- helps you to keep your accounting accurate
for your business.


What percentage of your income will go to
your State and Federal Government?

You will need to pay the following taxes, at the following rate,
on a quarterly basis:

States Taxes -- 3.7%
Federal Taxes -- 11.3%
Social Security -- 12.4%
Medicare -- 2.9%

The first year in business is difficult, because you have no idea
what you will be making--You will need to make a conservative guess.
However, you will only pay what you owe against that of your
expenses (your net income). For example, if you believe you will have
$3000 in expenses during the year -- and you believe in your first year,
you will make $6000-- you would report the following:

$6000 (Money Made)- $3000 (Expenses) = $3000 (What you owe)


This amount would be divided among the four quarters within the year
and paid to your State Government and the Federal Government.
If you find that you will be making more and you have paid
in for one quarter -- you will have to adjust the balance
and divid it between the remaining quarters.

The following is what you will submit to the Federal Government:
1) Federal Taxes-11.3%, 2) Social Security-12.4%, and 3) Medicare
payment-2.9%.

The State Government will receive only the 3.7% of your net
earned income.

(Please note: If you are unsure about anything, you should enlist the
help of a CPA, regarding tax matters).

Your estimated taxes are due on the following dates
throughout the year:

April 15
June 15
September 15
January 15

To obtain more specific information you can read IRS
Publication 505: Estimated Tax payments.

Note: You are not required to make estimated tax payments
until you have income not subject to withholding
on which you will owe tax. If you don't make
your first payment until a later period, you
must divide your entire estimated tax by the
number of payment dates remaining. If, for example, you
have three payment dates pending, you would pay one third
of the total tax by June 15, the other third by
September 15 and the last by January 15.

Typical Expenses To Deduct

Here is a list of some of the expenses you can deduct.

1. Your home mortgage -- If you use a room solely for
conducting business then you can take this deduction.
There are a couple of different formulas to determine
the percentage of your home that is used for your business.

You can use the "number of rooms" method or the "area method".
I would suggest using the "area method" because I can't imagine
having a home where all the rooms are the same size.

With the area method, you would take the area of your home
office divided by the area of your home. Example:

Your Office= 10' X 10' = 100 square feet
Your home is 1000 square feet
Your deduction = 100/1000 or 10%

2. Indirect Expenses -- with indirect expenses you will only
be able to deduct the area percentage (Note: use area percentage
calculated above) of the total cost. These indirect expenses
would include such things as:

House payment
Utilities
Telephone
Garbage collection
Internet connection (If other people are using the Intenet)

3. Direct Expenses -- these are expenses that relate only to your
business.

Supplies
Advertising
Business account bank charges

Keeping Track of Expenses
To keep track of all your expenses. and you are comfortable working
with a spreadsheet software, I would suggest purchasing a small
business accounting package such as QuickBooks or Peachtree
Accounting.

To conclude, this definitely is not an exhaustive list of
what you need to know. However, this will give
you a beginning as to what you will have to be aware
of when starting a home-based business. As your
business grows, your CPA will be able to assist
you and keep you on the straight and narrow to your
success on the Internet.

Vickie J Scanlon has a BBA degree in Administrative Management and
Marketing. Visit her site at: http://www.myaffiliateplace.biz
for free tools,articles, ebooks, and how to info or check
her blog for additional insights to the Affiliate Business
– http://myaffiliateplace.blogspot.com
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Affiliate Marketing, Your Skills, Your Success

Surviving on the Internet involves many skills that can be learned. And yes, learning does take a long time. But as your expertise increases, hopeful so does your paychecks.

Frustrating as it may be, you must not be afraid to learn, and to admit what you don't know. However, admitting what you don't know, does not give you the excuse to give up. You can learn! I've included an article by Jim Edwards, who enlightens you to what you should know or learn to survive online today.

Keep abreast of the changes, learn, and utlize what you can.


Can You Survive In An Online World?

- by Jim Edwards

© Jim Edwards - All Rights reserved
http://www.thenetreporter.com
-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-

Do you have the skills to make it in a computer driven,
increasingly online world?

Your immediate, knee-jerk reaction may be "Yes! Of course I
have the skills."

"I know how to send and receive email and surf the web."

"I can even download and install files."

Well, three or four years ago, email, Web surfing and
downloading files qualified you as "electronically
literate," but not any more! Computer and online survival
skills now encompass much more than that.

Surviving in an online world involves maintaining a high
degree of "electronic literacy," which means focusing on
and developing skills in the following areas:


** Personal Computer skills **

In the old days of 1998, the ability to use a computer,
keyboard and mouse rated anyone as computer-literate.

In fact, you were a real pro if you could burn a CD, scan
documents and manipulate digital pictures.

Fast forward to today and "personal computer skills"
carries a whole new meaning. You must know how to maintain
and update not only anti-virus, but "anti-spyware," and
firewall software too.

You also need to understand how operating with Windows ME,
or 2000, or XP will affect your ability to use certain
software along with specific security precautions to avoid
trouble from hackers.


** Internet Skills **

In the bygone era of 1998, friends considered you an online
genius if you possessed basic surfing and navigation
skills.

They watched in awe as you used search engines like
InfoSeek.com (a long-defunct search engine) to find and
download programs, pictures, and information on specific
topics.

Now electronic literacy means the ability to set up,
upload, and maintain basic web pages and blogs.

It also means understanding terms such as "RSS" and "news
aggregator" because that's the next generation of how
information will get disseminated online (and it arrives
for the masses this year).


** Email Skills **

Perhaps the most deceptively simple of all the areas of
electronic literacy, email actually presents the most
challenges for keeping up with the times.

Previously, clicking the "send and receive" button meant
you were proficient at using email.

Now, because of spam, viruses and "phishing scams"
(identity theft schemes delivered through email), email
requires a whole new set of skills, "street smarts" and
software just to survive.

You must understand how to use an email "preview" program
such as MailWasher.net to eliminate spam and virus email
messages before they ever reach your computer.

You also must learn to protect your identity and avoid
"phishing scams" by learning to recognize and defend
against online con-artist tactics.


** Buy or Borrow Expertise **

Though you should constantly upgrade your skills through
personal education, nobody can do or know it all (except
maybe your know-it-all bother in law).

The good news is that you can always buy or borrow someone
else's expertise to solve any online challenge.

A prime example of outsourcing in the consumer market is
all the little stores popping up in strip malls to help you
sell your stuff on eBay.

Through outsourcing, online survival skills can also mean
taking what was previously the exclusive realm of computer
geeks and making it as easy as dropping off the dry
cleaning.

--
Jim Edwards is a syndicated newspaper columnist and the
co-author of an amazing new ebook that will teach you how
to use fr^e articles to quickly drive thousands of targeted
visitors to your website, affiliate links, or blogs...

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Affiliate Marketing and Your Thoughts

I found an article that I found fitting for those who are in affiliate marketing. As you know, we all have good times and bad times -- but it is our thoughts that wage a bigger war. Why? Disappointment, frustration -- the whole range of emotions and thoughts that can determine whether you reach your goal or not. I found this article by Gerri D Smith very helpful and insightful -- and helped me to re-establish my focus.

Your Thoughts Are Powerful
Gerri D Smith
gerri@distinctivebusinesswomen.com

Distinctive Business Women's Newsletter
http://www.distinctivebusinesswomen.com/

"You create your thoughts, your thoughts create your intentions, your intentions create your reality. Learn to act as if the life you visualize were already here."

-Dr. Wayne W. Dyer

The only thing between you and your desire to be successful and wealthy is one single fact: You are not successful or wealthy because of how you think. This little known fact keeps many from reaching their goals of success and wealth.

Are you sabotaging yourself from reaching your goals? Do you find yourself spending lots of time doing things to change what you don't like in your life? Most problems are caused by the way you think. If one thing doesn't work, you may try something new, then something else, and still another something.

The trick to solving problems is to understand what is going on in your mind. Focus on your thoughts and become aware of how many of your thoughts hold you back or push you forward. Understanding your thoughts helps you answer any problems you may have, too. This leads you to understand your dreams and goals.

All thoughts begin in your subconscious mind. Before they can be expressed in your physical world, you must know how to set them in motion. This in turn, produces a certain result. What then, is the ‘missing ingredient?’ How do you set your thoughts in motion?

There is no other way than this: you need to think differently. If your old ways of thinking aren't working, you must learn a new way to think. And if you are to be, do, and have all that you wish for - success, wealth, health, positive relationships, you name it - you must learn to think in a different style that works. When you enhance the new understanding of your thoughts, there is nothing in your life that cannot be accomplished.

In order to do this, you must ‘wake up’ and mentally ‘watch’ your thoughts. Just thinking that you wish to be successful and wealthy is not enough, You must also ‘see’ it. When you watch yourself think, your mind is open to receive the answers you desire. This new way of thinking is based upon the true understanding of your mind and the way you think. It’s magical!

You are at the mercy of your thoughts. You can't stop them - so you must be aware of them and understand them. This powerful insight ’awakens’ you. With this kind of power over your thoughts, you magically know what’s happening in your life.

In order to achieve your dreams, you must live in a constant state of awareness. Be totally surprised about everything around you. When you learn to think in this new way, you start living the kind of life you wish. You change because your way of thinking changes. You get ideas you've never had before. You see things, people, places, and events in a whole new way.

You also become aware of opportunities. Learn how to identify them for what they are and how you want them to benefit your life. Remember, the only barrier between you and what you desire is your lack of understanding. Knowledge alone of a certain thing isn't always the answer. Understanding is the knowing how and why a certain thing happens.

Success lies just beyond your thoughts. Know that this understanding is what inspires you to accomplish what you really desire in life. And if you are satisfied with yourself - and your thoughts, there is nothing you cannot do or be - because your thoughts are powerful!

Copyright 2005, Gerri D. Smith
---
Gerri D Smith publishes and hosts a Free monthly newsletter to inspire, motivate, and encourage individuals, small business owners, and entrepreneurs to reach for their dreams. An Internet resource creating multiple ways for you to unlock the doors to success and wealth. You deserve to be successful and rich. Visit: http://www.distinctivebusinesswomen.com Or, send your correct email address to: gerri@distinctivebusinesswomen.com?Subject=Subscribe

To your success.

Vickie J. Scanlon
http://www.myaffiliateplace.biz
Always learning, Always growing
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Promoting My Affiliate Programs. How?

Getting your website up, is really just the first phase of your journey to a career on the Internet. You must promote your website, your product or your service to the world. Well, how do you do it? Maybe this article might help you in getting started or give you additional ideas.

Promoting My Affiliate Programs. How?
By Vickie J. Scanlon

There are many different ways to promote your affiliate program, however, it depends upon what type of program it is, “Your Turnkey Program” or Affiliate Linked-Program for selling a product. Hmm-mm, interesting. What works, what doesn’t?

GET OUT THE WORD

Bulk Emailing – Bulk emailing use to be the craze. Did you notice the word use to be the craze. That has changed with the stricter spam rules and penalties – all to protect us. But bulk emailing can be done, if you have an opt-in list – such as, through a newsletter. But don’t overextend the use, you may lose subscribers.

Classified Ads – With free classified ads you can definitely get hits – and possibly some sales. But don’t choose this as your only way of getting sales.

There are some drawbacks. You ask, “What drawbacks”. From my own experience, I’ve encountered individuals requesting information about my program – as a ploy to getting me to listen to their sales pitch. SPAM? Maybe. Annoying? Definitely. The height of annoyance is when they ask me to call them long distance, so that I can speak with them – only to have them give me a sales pitch on their program.

However, if you have a classified ad site on your website – you’ve got yourself a built-in opt-in list. You can gently sell to them, while verifying or thanking them for their ad.

Traffic Generators – Traffic generators can work on a turnkey site that many others are also partaking in to generate money for themselves. What I found is traffic generators are better suited for turnkey businesses. It is basically a simple way for you to entice other people in business to look at your program. You know – it’s the “I’m not really happy with what I’m doing. I wonder what else is out there” syndrome. Or it’s the – “I really need another program so that I’m not a one-man Joe in business” syndrome. In either case, it’s a safe place to see what’s happening or new on the Internet.

Messageboards, Discussion Groups, Forums -- These are great ways to get your message out and be personal at the same time. But you have to follow the rules, and you should contribute constructive and/or helpful information that is relevant to the discussion at hand. This is a time-consuming way to build sales – but a great way to build credibility, business relationships, and sales. Note: Please don’t blatantly advertising. This action could cause the following problems to occur: 1) you being banned from the forum; 2) your advertising being eliminated and noted by the administrator; 3) making the other members angry and thus, losing credibility. All in all, follow the rules.


Ezine and Safelist Advertising -- Ezine advertising and safelist advertising are good methods of advertising. In each case, you have to join their list and follow their rules to submit your ads.

If you want to try your hand at safelist advertising, I would suggest that you create a separate free email account on Yahoo. Why? A safelist allows all that have joined to submit their ads to you, as well as, you to them. Here, your subject line is your eye catcher – so choose wisely.

Ezine advertising is a very good way to advertise your turnkey site, website, product or service. You have the option for free (need to watch for their instructions), and various paid ads. What’s great about ezines? It’s an opportunity to sell to a more targeted market. The more targeted your market, the better the opportunity to get a sale.


Articles – Articles are a great way to get the word out about your website and your product or products. However, please make the article informative – or you’ll lose your credibility and the reader.


Search Engine Optimization – If you have a website you should submit to the search engines.


Linking – Linking is the exchange of your link with that of another webmaster.

This can be very beneficial, however, make sure the websites that you link to compliment but does not compete with your site.

I’ve touched on only some of the methods of advertising that you can use to get the word out about your product/service or website. The most important thing to remember is to keep your mind and eyes open for new ways to promote your product or service – and do your research.

To your success.

Vickie J. Scanlon
http://www.myaffiliateplace.biz



Things have changed since I wrote this article, for more update info check out my website- Promoting your Business.
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