The Housing Market Pitfalls and How I got Trapped.

The housing game in Gainesville Virginia, let alone all other areas in Virginia, has become something to smirk at. I mean it’s obvious that during the real estate boom everyone made money except those that were watching from the sideline and jumped on the train as it was inching away only to slip and get crushed on the tracks. Well welcome to my world.

I am a 26 year old unemployed young man who is in a little over his head but at least has the gall to spit his experience online so that others can benefit from it. When all else fails vent out and let the world feel your pain. I live in Gainesville Virginia (yes there’s another Gainesville other than Florida) with my wife, beautiful little girl, and brother-in-law and you might ask what the heck are we doing in a 5 bedroom, 5 bathroom, 4 level, 3800 sq. ft .25 acre property when we can hardly afford it? I’ll tell you what trying to make a buck but boy did that hit us square in the jaw.

We bought our home from NV naïve as can be hoping to flip this burger and cook it on the other side but we’re the ones that got flipped and as far as making a buck we are definitely losing a buck or three. How can I be so chipper about the whole thing, well life is hardly over for me, my wife, my daughter and my brother-in-law so I really have no reason to complain, especially because I’m in good health and in a good state of mind. But has it hurt our family, yes, more financially than anything and I would advise young home buyers to slow your breaks down when jumping into getting a new home.

Not to blame NV homes but the used their own appraisers based on the sale of their overpriced homes and even speculated further that our home was worth 100k more than what we paid for it. We were even at the point of putting 20% down of other equity borrowed from our parents-in-law to make the deal even better.

HEY EVERYONE let’s get one thing straight here ok, first of all never and I mean NEVER go by the builders word when they say that the property is worth more than what it really is, they’re shoveling that hot garbage down your throat all day, if you really want to buy that nice new home get an independent appraisal always, ALWAYS! Because I’ll tell you what you may just lose more than your appraisal money, you may be in way over your head, especially if you want to flip the property thinking you already have equity in the property. For one thing you will waste a lot of TIME and ladies and gentlemen time is not money for the records you can’t earn it, multiply it, lend it or get it back like you can with money so please factor time into any investment relating to real estate and heck anything else in life.

So we got that one part straight new home builders will give you the heavens and earth to make a sale, do you have a decision in all of this? Of course I certainly did and I mucked up and am paying for it dearly I mean my mortgage is 5 times more than I make 5 TIMES! I thought by now I would’ve flipped this cash hog that is literally eating my capital alive (what little I have left).

You may say hey MR. 5 times more than you make what are you smoking? But the truth is that’s the whole point. Young people are buying to flip and make a buck and that’s what they’re really trying to do is flip so what do they care if they can’t afford the property 6 or 7 months down the road they think it will be someone else’s problem by then and that’s where you need to realize that you should never buy out of your means because nothing is a sure bet, but then again you get great returns with minor risk investments (but that’s neither here nor there, but certainly more here than there).

We have now become a society that can get loans without having enough income to afford them. You can flip burgers at McArches (and there’s nothing wrong with that) and own 3 houses trust me I do taxes and I’ve seen it a lot this year. Is there some level of residential fraud? Yep sure is but I’m not the arbitrator (or arbi-traitor) in this game and won’t sell anybody out that’s for sure.

But think for a minute why this is an important lesson in life for you young and old people who don’t have a clue (the rest of you probably know this) banks give out no income loans with decent credit for large amounts (more than the average person can afford) and honestly expect to have a low-default level (default meaning people who can no longer afford their mortgage and give up on it literally “foreclose”) that’s crazy.

These banks drove up the market because if you can buy outside of your means then you aim to buy higher without fear (initially) and that means people will up the prices of the houses that they are selling because the banks are giving out cheap money (that’s when the interest rates are low) and suddenly the appraisals will cover these exorbitant amounts because houses are selling for these high prices so essentially are “worth” that much but really they’re not, it’s all speculation. And once the buying frenzy begins prices go up and up and up and up until finally people stop buying because they say hey “I’m not paying 500,000 dollars for a 1 bedroom apartment in Washington DC” and then the laws of gravity begin to come into play. It’s cliché but hey “what goes up must come down” and the market will come down it must because if it doesn’t the next generation won’t be able to buy anything.

The point I’m trying to make is that when these markets get out of control, because it is all cyclical although this particular boom of 2003-2005 was like no other ever seen in history, you don’t want to be buying houses like I did. You want to be waiting like a patient little bee or looking into to other markets that people are moving their money to wherever it may be North, East, South and West or in the stock market (although it’s so volatile that I don’t see people in the foreseeable future investing in it because of the crash in 01’ but this generation will eventually forget to inform the next and the cycle of life will once again commence).

So in a nutshell that was my experience do I blame NV homes or the Banks, no way after all builders keep an economy moving and the banks (although they always win) help you leverage your investment for after all if I were buying when the market goes up (again this is hard to do don’t let the get rich quick real estate guru’s tell you otherwise because it is all based on speculation) then banks would be particularly useful to me for I could use their 100% financing and buy me a property that was certain to go up in value because I did the necessary research and realized it was an emerging economy in that particular area and their was substantial job growth, and developments, etc. But the most important factor would have been that I bought at the right price not some over inflated value. And remember that fact if you buy something that is really only worth half of that value watch out because as you may have noticed incomes have not skyrocketed like real estate values have so careful when you bite the cheese in the trap for it just might be rotten and you’ll still get snapped.

If you know of anyone that would buy my house go to: www.newgainesvillehome.com

The Home Based Business Phobia: An Analysis

Home based businesses have been around for a long time, even long before the internet gained the popularity it has today. Before MLM as we know it, there was Amway and Avon and Mary Kay. All reputable ways to earn a side income. But with the birth of similar opportunities and new business models operating primarily online, our society has been blanketed by a fear of such opportunities, which we are now calling the "home based business phobia."

While there are many reputable business opportunities online, there are just as many "scams" that have been grouped into the same category. These are usually services in exchange for post-payment (which never comes) or pyramid-type schemes that contain no real products, only the opportunity to earn from recruiting others. Unfortunately, as with most any situation, the negative starts to outweigh the positive. Before you know it, all home based businesses are overshadowed by the reputation of the few actual scams.

I believe that the fear of home based business stems from this fact, as well as others. While there are many potential customers who fear the scams without knowing what is and what isn't, there are also those who fear anything that is different from the norm in terms of earning a living. Lets face it, society raises us to work hard at a physical job. Even from youth, we are trained to do well in school all the way up through in the hopes of securing a decent job. It is what our parents did, and their parents, and all of our ancestors all the way back through time. So when the proposition of earning a decent living without working at a physical job makes its way into the minds of society's leaders, it is viewed in a negative light. This, I feel, is because we as humans naturally fear anything that is different, or that we don't understand. This is not how we've been raised, this isn't how anyone has every earned an income before (not a full-time income, anyway). Therefore, it is not easily accepted.

The truth is that entrepreneurship is what drives our economy. Even the largest of corporations started out as mom&pop stores or small-town restaurants. Small business and entrepreneurship help to balance out the hold that "big business" has on our economy. Without them, large corporations would have no competition and therefore no standards to uphold.

So exactly what is the biggest fear surrounding any home based business opportunity? I have a theory, and it involves initial start-up. Most individuals are afraid of losing the money they would have to invest. They are afraid of the risk involved. But what is so bad about risk? Don't most things in life involve some type of risk? The old adage "Nothing ventured, nothing gained..." comes to mind. If we never step out of the box that society has created, we will never know what could be. We will never experience different or better. We will, in short, become the one thing that our species fears the most...stagnant! Our world's best inventions (products and services like electricity, stop lights and air travel) came from forward-thinking individuals who dared to look outside of the "norm" for better and more efficient ways of living. Without those who embraced this mindset, we would still be living as Neanderthals, barely using fire to heat caves and cook food (and even this was forward thinking for the time).

The risks we take should always be calculated, to an extent. We should consider heavily the pro's and cons of our decisions. And the decisions we make should not be anything that would hurt us, injure our loved ones, or cause us to go completely and utterly broke. Well, home business doesn't do any of these things, does it? It does not threaten or harm us or our families, and if we are researching and investing wisely, it should not expend all of our income either. Home business in its original state was not meant to ruin financial situations, but to improve them, either by supplementing the existing income or surpassing and replacing it. So the fear is simply losing a few hundred, or possibly $1000 or more. A valid and understandable fear from those who work hard for every cent they have. However, part of the point of earning money is to put it to work for us. This is done by investing in programs (whether through stocks, money market accounts, CD's, savings accounts that accrue interest, online businesses or otherwise) that allow us to earn more than we've invested. When you put your money to work for you, you have a better chance of achieving financial security, which is what we are all working toward.

So then, should a person go out and join every money-making opportunity they can find? Of course not! Investing or starting a home business is a wise decision, but should be done with care. It is always a good idea to do ample research on the program(s) you are interested in joining. You must consider everything from the legal aspects to the products being promoted. And as an important side note, you should always investigate the person or entity that has introduced the opportunity to you. Often, this person will become your "sponsor" in the program, and the one responsible for guiding you and helping you to get going in the right directing. As disturbing at it is, there are some "sponsors" who are not fit to be so. The do little, if anything, to help their customers or affiliates. People like this unfortunately give their parent companies a less than desirable reputation. Most distributors work independently of their parent company. While there are certain regulations to follow, they are not limited in the ways they can advertise or market. For this reason, I recommend that when researching home business opportunities, you maintain an open mind and do just as much research (if not more) on the individual who will become your sponsor.

Lets talk about some of the other fears surrounding home based business. One of the most common ones is that the opportunity is illegal; not approved by state and government regulations. The easiest way to circumvent this issue is to check with local and state officials (usually the State Attorney General). If you are interested in a program, contact your state official to learn the requirements and restrictions for involvement in a home based business. And of course, one you join, take the necessary steps to report your income to the IRS, and to register your business with the federal government.

There are other less verbalized fears that pertain to our own abilities. Many individuals feel that they do not have what it takes to run a home business. They may feel they lack experienced in the industry, or lack skills necessary for marketing and customer service. The majority of home business programs in existence today offer some type of training and support. While some programs are better than others (according to current and past members or affiliates), it is not hard to gain the skills and experience necessary to succeed. If you are interested in joining a home business, be sure that your research includes an investigation of the company's (and sponsor's) training regimen and support. Join only if you are satisfied that you'll receive the individual help you need for your skill level and situation. Along with this, many fear that they will need large budgets for advertising their business. This issue too can be solved by the training offered with the opportunity. There are several methods of advertising for free that are very effective (though they can be a bit time-consuming). Your chosen home business program should know a good number of these methods and be willing to train you on these methods also. Be sure to ask if they include this in their training and support. If they do not, move on to researching another opportunity.

One of the last fears I have encountered is the investment of time. Individuals fear that operating a home business will take too much of their time; time away from their jobs, school, family or hobbies. The point of working from home (however you choose to do it) is to allow you more time at home to spend of your family or hobbies. A regular job in the workforce takes more time from these interests than a home business would. While jobs and school may seem secure, they do not allow you the freedom that you so rightly deserve. Home business programs seek to solve this problem by giving you the freedom to set your own hours. Also, home businesses, while they may take a bit more time in the beginning for initial set-up and marketing, can eventually run from just 2 or 3 hours of effort per day. Imagine earning more from a sale in one day than you would earn in 2 weeks or even a month from your job, and from 5 less hours of work? Is that not what we ultimately strive for? Time is important, especially because it is not guaranteed to any of us. The best way to maximize your time here on earth is to do what you can to enjoy more of it. A home based business can bring about an opportunity for freedom that most of us never though possible, thanks to society. Why not go for it, when there is so little to lose?

While all of the fears discussed are valid, none are so disheartening as the possibility of no future stability, no security or no retirement. More than anything, I fear having to come out of retirement to make ends meet. I fear having to compete with a younger, sharper and more technologically-inclined generation for a job at an older age. I fear not being able to retire when I want because I have not built up a deep-enough income or secure-enough future. I fear my children not being able to go to college if they want, or not having enough to provide everything they want and need. I fear working to the point where I have missed out on life's most precious moments...my children growing up, my relationship with my spouse, my grandchildren and so on. Most of all, I fear passing on nothing but debts to my loved ones. For me, these fears far outweigh the possibility of losing money or learning something new. It is for this reason that I became involved with the home business industry. I am young, and as so many say have my whole life ahead of me. I would like the personal and financial freedom to enjoy some of it. I would like to start off my marriage on a solid and secure plane. I would like to stay home with my children when they are born. I would like to see them off to school each day (or even home-school them), teach them new things, attend their performances and games, and be there to encourage their individuality. I would like to have something to pass on to each of them (a home, a substantial inheritance, a car...a future). I don't want my family to "want" for anything. My home based business is allowing me to do all of those things and more!

A few thoughts to those who are considering a home business of their own.

What is stopping you? What is it that you fear most about investing in a home based business? Do you not want all of the things described above? If all of your fears were addressed and dispelled, would you still be hesitant? If so, why?

The ugly truth is that today's economy and our workforce do not provide financial security. Your position can be terminated or passed on to another at any time, and without any notice. Most businesses, especially large corporations, focus only on the needs of the business. If you, your pay grade or your skills stand in the way of these needs, you pose a threat and will be removed without much consideration. And unfortunately, this type of treatment is legal in most states. Does this sound like security to you? Wouldn't you rather have control over how your family is allowed to live than a corporation that cares little about them? Wouldn't you want a back-up plan in case this happens to you? It is another sad truth that most individuals live and think inside their own little bubbles. They see unfortunate things happening all around them, but never stop to think that it could happen to them at any time. None of us are immune to such occurrences. None of us in invulnerable to the trials and tribulations of life. It may be someone else, but it can always just as easily be us! One more thought...if a major situation came about the required a large amount of money to solve (a fire, your only vehicle breaking down, a flood, a break-in or theft, even a baby being born), would you be able to handle it without depleting your life's savings? Would you be able to take care of it immediately? Or would it take months to save up enough?

A home business can be a great addition to any lifestyle. Most do not take exceeding amounts of time to work, most do not rob our wallets of of unbelievable amounts, and they allow us to earn enough to greatly supplement our current incomes, even replace them! With so many more pro's than cons, why shouldn't you consider a home based business of your own?

The Great Price Comparison Con

Price comparison sites are taking over the internet.  It has never been easier to buy cheap DVDs, CDs, fridges etc.  The likes of Kelkoo and Shopping.com dominate the paid advertising on the search engines and are promoted heavily through MSN and Yahoo where the price comparison is offered as a “service” to users.

But this is not a service, this is elite advertising for the few, and what is being offered is not a complete picture, but a partial view, based on who is prepared to pay to be seen.  These sites are trading under false pretences.  They do not help you find the cheapest DVDs, CDs, fridges etc.  They help you find the best discount amongst retailers who pay to advertise on their site and that is a Big difference.

Whilst this might be well known amongst internet marketers, retailers and the like, it is my strong view that most users have no idea.  What reinforces this for me is the knowledge that the main price comparison sites offer a shop the opportunity to appear first in the price results for a particular product if they are prepared to pay a higher cost per click…   And guess what? It works!   Paying a higher click rate results in more visits and the conversion rate doesn’t drop a bit!

That tells me that consumers either aren’t using the sites correctly or the results are being displayed in such a way as to maximise the revenue for the price comparison site rather than the saving for the user.

To my naive utilitarian notions of the future of the Internet this approach appears the absolute antithesis of what the Internet is all about.  Information is power.  Controlling information is therefore extremely lucrative.  But controlling/withholding information is never a positive thing for those who rely on it.

By using aggressive internet marketing tactics and huge budgets these bloated glorified link farms have set themselves up as the middle men of internet retailing.  Corrupt and greedy they willingly dupe the user to maximise their own interest whilst claiming to be the consumer’s champion!

So what is the answer?  Essentially price comparison sites are a fantastic idea and should highlight all that is right with the Internet, it is the pay per click element that has led the key ones astray.  The future lies in the impartial services.  Those that are based on earning commission for a sale rather than simply driving traffic towards the most valuable target.  Affiliate marketing and price comparison sites are the obvious pairing going forward.  Any they are appearing in their hundreds.  For example have a look at www.cashbackers.co.uk and search for “Lost series1”.  Cashbackers shows 20 UK DVD shops, Kelkoo shows 7,   the cheapest DVD being better value using the former.

Using affiliate marketing programs cuts out the prohibitive costing that mean a lot of smaller or newer shops can be listed.  And as these are the ones that will often be promoting on price rather than marketing budget, these are exactly the shops that should be on a price comparison site for the benefit of the consumer.

As these sites grow and as consumer awareness does as well, no doubt things will improve but until then the cheap DVDs, CDs etc are only to be found using commission based sales programs.

The Good Thing about Full Color Printing On Catalogs

Several companies are now interested in the business industry particularly in catalog printing since many companies are using catalogs as their promotional material to be able to give information to their potential customers and to show the pictures of their products that can be purchase from their company. In some cases, catalogs are being used as to show services that can be offered by certain businesses as well.

Perhaps these are some reason why there are more companies that are interested in catalog printing business. Despite of what they are used for, catalogs are truly helpful for advertising and boosting sales in business because your customers need to have a clear idea of the products and services you offer. In this way catalogs are the perfect way to show to your prospective customers what you can offer to them.

As many companies are putting their best in advertising strategies, one of the most common choices of businesses in catalog printing is the full color catalog printing. You don't want your catalogs to look anything less than 100% professional. Catalogs are more effective if they are in full color catalog printing because as most consumers want to get a good look at the product they are interested in purchasing. By means of this full color printing, your catalog can stand out above the rest and can be very attractive, as your customers can’t help themselves to read and browse through it.

Regardless of the reason full color printing is often more expensive compare to any other catalog printing service, but a full color catalog can truly grab the attention of your potential consumers and this makes your extra expense worthwhile. A good catalog can mean increased sales, and a bigger outcome, thus, it is recommended that you find the right professional printing company to ensure the high quality of your print catalogs.

The right professional printing company can offer you a full color printing services for your catalog. Another advice, a full color front cover is also essential, since it is the first thing people see. Your cover often determines whether people will actually pick up your catalog to read it or not. So, always check the binding options that the catalog printing companies offer. Make sure also that the binding is a top quality as you don't want your catalog falling apart. Also, take some time to compare prices between companies to ensure that you are getting an excellent price.

The Golden Key to Success is in Your Hands, But You Ignore It!

Success is the Blue Bird everybody is chasing, struggling to catch, but only a few people have been able to grab it!

Most probably, you have been one of the hard chasers, extremely busy writing ad copies, articles, press releases, sending them to media outlets and popular publications,   striving night and day to promote your business using the most powerful Internet marketing strategies.

You had subscribed to hundreds of safe mailing lists, ezines, newsletters, sent your ads and articles to them regularly, spending your valuable hours and days. But the response has been disappointing.

Then you tried to hire advertising agencies to make the effective e-mail advertising for you. You paid them a lot of money.  Finally you made a number of sales. But the results were far from being satisfying. The money you made did not even cover the expenses.

Then you wrote articles, you hired copywriters to write more articles and press releases for you and you sent them out to thousands of media outlets and thousands of popular publications. To your surprise, the profits you earned were not enough to pay the bills. You wonder why!

You have launched several weblogs (blogs), now you're working hard to place fresh content in your blogs everyday or every other day, while submitting your blogs, comments, content to other blogs, which take a great deal of time, but you have not received one single visitor to your blogs yet. You don't know why!

You have purchased an aggregator to read the RSS feeds you were receiving, you also bought a software to turn your articles and press releases into XML and RSS formats before sending them to RSS feed providers and distributors, e-zines, newsletters, news portals, blogs/journals, media outlets and relevant publications.

So, you're spending a lot of money, time and efforts, struggling like mad to market your business, website, blogs using the most powerful Internet marketing strategies, hoping to make your business a success to earn you a comfortable living.

After so much struggle, tears and sweat, are you happy and satisfied with the results you are getting  now? No, most probably you are not!

How do I know? I know, because I had been there, too, until I discovered what was missing. Then I also discovered what the solution was. There is one thing you must do; there is one thing you and I and everybody must do to earn more money. Do it now, do it everyday until the end of your life:

READ !!

You are extremely busy submitting your ads, your articles, your press releases night and day, but you do not read other submissions.

You might say you do read some ads and articles when you find time to read. But I'm sure you find time to read only once in a while, because you're too busy writing ads, articles, press releases and submitting them to millions of places every day. You are an extremely busy marketer.

All other marketers and business owners are too busy to spare time to read. So, eventually you don't read other marketer's articles and ads, and they don't read yours. Or, you all read only once in a while, which is obviously not enough to produce the positive results to make you happy.

Then what's the use to work so hard to write articles, press releases, ads, RSS feeds and more, and struggle so hard to post them to millions of portals, websites, media and publications, if nobody or only a few people would read them?

It's a great waste of time, efforts and money! Of course, there are businesses and individuals who earn truck loads of money, but it's only a small percentage in a crowd of millions of income seekers.

I am sure that the number of big money makers will grow fast when we learn how to play the game abiding by its rules.

We must admit that we need a great number of audience to read our ads, articles and other content in order to receive the great response we expect.

The great number of audience we need to earn more money is composed of you and I and other online business owners and opportunity seekers.

We can earn more money when our ads and content are read by more people who are our potential customers.

So, you and I and all others must read as much articles, ads, press releases, RSS feeds as we can. There is a simple solution for all income seekers to earn more money, which is a one small magic word.

READ !!

Don't just write and submit, but read, too.

Read and encourage your friends, members, affiliates, associates, customers, potential customers to read!

If you and all other millions of marketers and income seekers spare one hour a day to promote their businesses, they must spare another hour to read other marketers' ads, articles, press releases, RSS feeds, content at websites and blogs.. Reading must be considered as the important part of Internet marketing.

Reading, you get valuable information on profitable marketing strategies, secrets, tips, new income opportunities, you get motivated, learn how to earn more money, how to improve your website, how to advertise to increase number of traffic, your revenues, sales, and much more.

Benefits you will get from reading is unlimited. If all entrepreneurs, marketers and business owners perceive reading as an extremely important part of their marketing program and spare more time for reading others' ads and articles daily, can you the imagine the insane amount of increase in everybody's profits and  income?

First of all, you should believe that when reading other business owners' and marketers' promotional content, you yourself will benefit from this reading as much as the content writer will.

Read and have other marketers read as much as you and they can. This is the solution to get much more of your potential customers read your marketing materials and reach you. Not only you, but other marketers as well would greatly benefit from reading regularly.

If we all build a reading habit,  if we all perceive reading as an important part of marketing, we all could be sure that our ads articles, RSS feeds and other promotions will be read by thousands of more potential customers daily, which will substantially increase the number of our sales, revenues, profits, and ROI (return on investment).

We learn the most powerful Internet marketing tactics and secrets by reading. We find out about new opportunities, new technology, new powerful ways in effective Internet marketing, The benefits we get from reading articles written by other entrepreneurs are unlimited.

Reading is the golden key to success which shouldn't be ignored. Never!

Keep reading !!

The Fundementals of Marketing

Marketing gives you a better understanding of potential opportunities within the market that will help develop the vision of the company. Therefore, it is definitely a process worth cultivating.

In this section, we will identify Marketing fundementals that will help you develop your Marketing plan.

Is there a Market for your product or service
This must be the first question that you answer as you need to know whether your product will survive or not. Factors like competition, location, uniqueness and demand all need to be analysed. One word to help you, Research. The key is to gather as much information as possible on the current Market situation. This will give all the answers you need.

Better yet, you don't need to do it yourself, there are plenty of Marketing agencies out there who do Market research as part of their core products. Take a look at our recommended business section where you will find information on such companies.

Getting your Marketing message heard
Who, How and when. Who needs to hear the message, how will the message best be implemented and when is the best time for them to hear it.

An example:
Company A wants to inform the Market about a new Telecoms product that they are selling.
Who? The product is designed around a small business infrastructure as it will help them cut down on costs. Great, thats one question answered.
How? The recent rise in broadband consumption amongst small businesses and homeowners make Email Marketing an appropriate choice. Direct Mail Marketing would be too expensive and results would be difficult to measure. Using return receipts make it possible for them to measure delivery of emails whereas they would be 'left in the dark' trying to determine whether or not someone received something in the post.
When to send the email?
9 o' clock on Monday morning...yeah right. People are bombarded with Spam, so the chances of your email being read are slim to say the least. After lunch on Wednesday has been proven to have a high response rate.

Let's summarize:
Company A determined that their product was best suited for small businesses. Answering that all important first question led to them to identifying how to communicate their message and when an appropriate time to send it would be.

Fail to measure and you'll end up measuring your failure
Measuring and testing different ways of implementing Marketing strategies or getting your message put across is a key aspect in the Marketing process. I tell most of my clients that you have to fail once and most of the time they do...but only once. Why? Because I also advised them on how to measure their results. So at the end of the day, they are able to see where they went wrong or where the Market wasn't very hospitible to their product which ensures that they never make the same mistake again.

Results, Results, Results
Always remember what the objective of the Marketing is. This will ensure that results are measured effectively. For instance, you shouldn't be reconciling the cash at the end of the day if the objective was to increase Website traffic and not to sell any products.

The First Rule of CRM for Financial Services

The Consumer's Perspective

Let's take a look from the consumer's perspective. Financial illiteracy is alive and well, especially with baby boomers. Next, throw in brand confusion—the convergence in financial services has produced new players, company names, and products. Everybody is now playing in everybody else's backyard. Insert the media's frequent coverage on retirement planning and increased advertising dollars being spent targeting "the confused generation." Now, throw in the fact that there is widespread incoherence around what the term "financial planner" even means. At its best, this situation is overwhelming to prospects, current clients, and maybe even your employees. At its worst, people are sticking their heads in the sand and saying, "leave me alone!"

Marketing financial products and services has always been an information and relationship sale. You are in the personal finance education business, whether you like it or not. And it's not nearly as sexy as the ad agencies make it seem. No matter how many sailboats, moonlight beaches, or mansions your advertising agency plasters in print and on the airways, selling financial services and products makes prospects and clients deal with issues with which many are uncomfortable. It is no wonder that selling financial services demands a set of tools that moves far beyond the info dump and plethora of brochures that dominate the industry.

The Financial Firm's Perspective

Let's now take a look from the financial firms' perspective. Mergers and acquisitions have been in full throttle. Corporate identities are still being created. Not only is there more competition, but it's possible that the more serious competitors are residing within your own company. CRM is slowly permeating the lexicon of the financial world. Yet, with a few notable exceptions, financial firms lag far behind industries like retailing and airlines in data mining, making it almost impossible today to build a single integrated view of their customers.

On either side of the spectrum, change is the dominant theme. So given the current state of affairs, how do you execute a CRM strategy that promotes cross selling and up selling? How can you increase the chances that your CRM strategy will stick? Here are some of the best conditions for selling: When the sales force has complete access to a particular customer's need or near-term future needs.

When the sales force knows and understands what cross selling and up selling mean in your firm.

When staff, partners, and suppliers work together to deliver what is promised.

When leadership teams agree on how to lead the transformation necessary to change culture, structures, systems, metrics, and behaviors to promote cross selling.

The Softer Side of CRM

All of the above conditions require more than technology solutions and product knowledge to execute. They require the softer side of the CRM equation: relationship building with customers, prospects, your boss, your peers, other departments, partners, and suppliers. If you want to solve the business challenge of cross selling and up selling, you'll need to: Build trust. For financial planners, brokers or agents, that might require working with prospects in new ways. For corporate or home office staff, that might include building bridges with other departments or field staff. Develop a network of helpful relationships that will act as "oil" for the CRM machine. Research shows that the more helpful relationships there are, the more information is willingly shared. For financial planners, brokers or agents, that might mean prospecting in new ways. For corporate or home office staff, it might mean articulating and agreeing on a practical policy of real-time knowledge and information sharing. Build crucial social currency both with customers and with people inside the organization. The core of any social or economic relationship is trust. It's all about influencing others to take action in the direction we want them to go.

It's a Process

Relationship building is a process of trust building. It is also an iterative process. It is a process of layering...the relationship starts at arm's length, then grows more intimate as the trust builds, passing little tests along the way. This applies to all relationships—with customers, employees, peers, partners, and even competitors. Your internal experts in technology, marketing, corporate identity, operations, and sales must grow to learn how to be content experts in the business of relationship building. In today's environment, CRM is screaming for experts on relationship building. Managing customer relationships can only happen after they've been properly built.

One word of caution for financial services firms as they march forward to the CRM tune: don't worry so much about selling the features and benefits of your products. You're already really good at that. Start worrying about how you can build relationships with your customers and prospects in new and different ways that will allow for cross selling and up selling. Remember the aphorism: A sure sign of insanity is doing the same old thing while expecting new and different results.

Originally published by CRMGuru.com , a service from Front Line Solutions, ©1998-2001