Hello there and in this article I am going to show you best home based business startup ideas. And also I must say that if you are planning to start your own home based business you have landed on right article because I am about to show you best 3 one’s so make sure you read this article to the end.Home based business startup ideas – idea number 1 is making money online with blogs.This one is for sure one of the best idea you can find out there and it can give you lots of income in short time, if you will do everything right. The process of making money with this home based business plan is simple: pick up a niche you would like to work in, create blog using free or paid tools, put AdSense from Google and banners on your blog, fill your blog with articles and videos related to niche you have picked up, start driving targeted traffic to your blog.If you think it’s very hard to start seeing your first income online with this idea you are very wrong. I can show you how you can start making some money in less than one week time with blogging. Create simple white blank page blog but with something interesting and funny inside. You know most people always like to be entertained, so if you will create a blog that would entertain them they will be more than glad to come back to your blog on daily basis. So after you will create a blog tell about it to your friends. Also join social networks like Facebook or MySpace and start making friends out there. The more friends you will have the more visitors to your blog you will have hence the more money you will have as well.Home based business startup ideas – idea number 2 is making money online with PLR products.This one is one of the quickest one. As you can find PLR products with readymade professional sales page, so that means your home based business can be up and running in less than 24 hours. Imagine high quality product, with your own landing page, professional sales page in less than 24 hours. So literally tomorrow all you will have to take care of is just start driving targeted traffic to your products page, couldn’t be simpler.Home based business startup ideas – idea number 3 is making money online as affiliate marketer.This one for sure can make you financially free. If you will be patient and will be keep working with it on daily basis you can start making five or six figure online in less than 6 months. And that’s %100 true. You just need the right knowledge’s, support and hard work of yours. Just imagine what potential is of this home based business program if once you will build a list of 1,000 subscribers you will be getting in profits at least $2,000 every single week. And that’s minimum. How much money then you will be making on weekly basis if you will have 10,000 subscribers – $20,000 every single week. I know you are shocked, me too actually.OK so those were home based business startup ideas and those were three best ones. Keep in your mind that it does really possible to start seeing results in less than one week with every single one of them you just need the right knowledge’s.

The Poverty Fighters are raising money for charities, they are helping people making money from home and they are putting together what they are calling “The Road To End Poverty Tours”So would you call them a home based business, a charity, or both?Some are calling them a charity because of how much they are focused on ending poverty. They actually have a really good plan to end poverty.Have you ever heard the saying “If you give a man a fish he will eat for a day, But if you teach a man to fish he will eat for a lifetime”?You could say the Poverty Fighters took this saying and put it to work, because that is almost exactly what they plan on doing. Their “Road To End Poverty Tour” is going to travel the world teaching those in poverty how to make money with no money, they are going to also teach and help those in poverty how to build their very own successful businesses.They are also giving at least $2 from every paying member that joins them to charity and they are on track to hit 250,000 members in their first year in business, that means they will have raised $500,000 USD to give to charities in their first year in business.So looking at these two aspects of the Poverty Fighters you could say they are a charity.But if you look at them from the home based business side of things we see something really creative that no other home based business or work from home opportunity would dream of doing. The Poverty Fighters are giving away free level 8 positions and all the tools you will need to succeed online.But the one thing that the Poverty Fighters are doing that no other home based business is doing is they give you everything you need to be successful without even asking for any money up front. They don’t ask you to leave any kind of payment information they don’t even ask for your name!They have so much faith in what they are doing and in their members that they say try everything and if you really like the program and want to help make a difference then make a small one time investment.But if you decide you don’t like the program and everything they give you, then you don’t have to pay anything and they let you keep everything.So how is this working out for them, are people actually paying?They say about 95% of their members are paying members and as mentioned earlier they are on track to hitting 250,000 members in their first year in business.So what are the Poverty Fighters a home based business, a charity or both?Looking at what we now know I would say they are more of a charity than anything, but they don’t ask for donations! Is it possible to be a home based business and a charity?You will have to make the decision for yourself.

If you are gifted with any additional curricular activities like singing, painting, dancing, etc, you can teach students who have an interest in learning. Not only can the children, but the adults also learn from you. This is one great home based business idea. Work at home is really an advantage for females.Females can do both household work as well as home based business together. If qualified, you can take tuition for school students. Most of the students have difficulty in subjects like science, math, etc. If you have online facility and registered with a tutoring site, students from many parts of the world can learn from you.There are online home based business ideas as well as offline ideas. Some examples of offline home based ideas are candle making, home gardener, etc. You can take up the training work of how to make a candle. There is always a great demand for candles during the festive seasons like Christmas, New Year, etc. You can also sell these products through online. Many people do not have the time to look after their home garden. Such people can definitely select home gardeners. Babysitting is also a good idea for the neighboring area for students to take up during summer holidays. You can earn funds through home based daycare.Be bold to select one from home based business ideas and begin your business soon. Virtual assistant job is also lucrative. You begin by registering your name with a freelancer site, which provides such job facilities for people. When you are selected by the buyer, you can work for him and earn funds. A good example for such work is freelance writing. You can research the net for the topic as you research the library book for writing. The content should be original and free from grammar mistakes.Home based daycare for senior citizen is also one of the home based business ideas. Nowadays, both the husband and spouse are earning members of a family. Their children will be at the school and the senior citizens will be alone at their home. If there is such a daycare for the senior citizens, from morning until the sunset, they will not remain alone. They can play and enjoy the daytime with such other members of the daycare. Transportation facility should be provided to pick up the citizens. Also, immediate medical care facility should be arranged for emergency situations.If you are interested in animals or birds, you can collect and sell them. For example, some people sell puppies to earn income. Like this, you can do with birds or fancy fish. This is also one of the home based business ideas. Earning through eBay as a seller is one online idea to make money. You can sell anything that you do not need any more and want it to be sold.To create a reputation in the field, you should sell a specific product. Another home based business is catering service. At first take little orders and provide nice service to customers whether for a party or a simple get-together event.

Critique of Traditional Real Estate Brokerage Compensation Model

Given the apparent paradox between real world endurance and academic/political criticism the current real estate brokerage compensation model, a review of recent literature on the topic provides a structure for parsing out the relative merits of the current percentage-based split commission model as well insights as to how it may evolve in the future.

In their 2007 paper, “Is the Compensation Model for Real Estate Brokers Obsolete?” authors Miceli, Pancak and Sirmans (2007) argue the traditional percentage-based split commission model for brokers has become obsolete, given contemporary legal agency relationships and technology-driven information availability. As a result, they conclude buyers and sellers experience substantial transactional inefficiencies during the two primary phases of the real estate transaction, matching and bargaining. They then proceeds to mathematically model the existing compensation model and identify alterations, which would mitigate the inefficiencies he describes. Finally, Miceli et al. (2007), proposes a list of policy actions, which if undertaken, could facilitate the emergence of the compensation model they propose. This paper reaches some useful conclusions in terms of policy actions, however some of the assumptions upon which the supporting argument is made, may neglect certain functional roles of real estate brokerage. In addition, the proposed the compensation model, while elegant, does not address the fundamental basis for why real estate brokerage services, have, up until this point in time, been delivered wholesale. Never the less, Miteceli at al. (2007) is an useful in formulating a vision of how compensation in real estate brokerage may evolve.

The main assumption Miceli et al. (2007) make upon which their central argument is made, is in oversimplifying real estate brokerage services into two all encompassing functions: matching and bargaining. While doing so allows Miceli et al. (2007) to formulate an economic model of broker compensation, it excludes many of the functions brokers perform, which have economic value, but which have here to fore lacked independent pricing due to the existing bundled service model.

As discussed previously, the agent provides a range of services, not only subsequent to the matching and bargaining phases, but within these phases as well, which are omitted by Miceli et al. (2007) in the interest of modeling broker compensation. For example, decisions regarding pre-listing activities such as level of property fix-up (requiring monetary investment) and home staging decisions are often critical in the matching phase and can have substantial impact on the final sales price. Alternatively, decisions involving choice of appraisal company can influence property valuation, thereby influencing the probability of a successful a bargaining phase. In the Miceli et al. (2007) model, these types of services are essentially considered to have zero economic value, as Miceli et al. (2007) advocate for a collective listings aggregations model in lieu of the process by which brokers search for listings: “we will argue however, that unlike an unimpeded search for buyers, competition for listings is unproductive in that it does not increase the likelihood of a sale…” Miceli et al. (2007). It is precisely within this process that brokers and agents market their skills (compete) in the aforementioned examples and affect sale price. The underlying supposition in the Miceli et al. (2007) analysis is that all seller brokerage services are commodities.

Another potential weakness in the Miceli et al. (2007) broker compensation model, is in their economic overvaluation of the role of the broker during the matching phase as associated with property search. Miceli et al. (2007), argue the emergence of information technologies has allowed buyers to search through property listings information independently of the real estate agent, which they juxtapose to the era when agents controlled access to such information. Their argument posits that free and unfettered public access to listings information should have resulted in a reduction in broker compensation, to reflect the reduced value add of the broker: “The traditional compensation model for brokers has not evolved to reflect their diminished role in the matching stage” Miceli et al. (2007). In reality, the persistence (growth) of the traditional percentage-based split commission compensation model in the face free listings information on the internet and disaggregated real estate service providers reveals a fundamental truth: for-sale property listings information in and of itself has little economic value; access to information was used as an inducement to enter into a formal agency relationship, during which value added services were provided. It follows from this, that use of traditional brokerage service would remain steady and no reduction in broker compensation would be seen when such information is made freely available. And in fact, this has been the case, as is demonstrated in the reduction in the rate of FISBO’s seen since 1987 and persistence of brokerage commission rates over the same period. “Between 1998 and 2005, the real median real estate broker commission per transaction grew by 25.5%. However, commission rates remained relatively stable during that time irrespective of market conditions, home prices, or effort to sell a home (US Government Accountability Office (GAO), 2006).”

Perhaps the most instructive oversight in the Miceli et al. (2007) argument is in their lack of treatment of the true economic justification of the current compensation model, which is based on risk and reward. Currently, in real estate brokerage, agents and brokers assume 100% risk in the transaction purchase sale and sale process. They incur tangible and intangible expenses throughout the entire process without guarantee of payment. Buyers and sellers on the other hand assume no risk and only make payment upon successful consummation of a transaction. In this respect, the real estate brokerage model exhibits attributes of an insurance model, with wholesale payment for services rendered upon successful transactions required to compensate for expected losses on unsuccessful transactions. In order to justify his compensation model, Miceli et al. (2007) make the leap to a future point in time when the provision of disaggregated brokerage services are proven to be independently economically feasible and more importantly, to when the provision of such services does not undermine the structural “insurance” dimension of real estate brokerage; the attribute which allows buyers and sellers to incur no upfront expense in the purchase and sale of real estate.

The traditional percentage-based, split commission compensation model in real estate brokerage is still prevalent today because it crudely, yet none the less effectively, compensates brokers and agents for their direct and indirect expenses. While there is evidence the industry has engaged in anticompetitive behavior on an institutional level, these actions are a rational given the potential unintended consequences associated with undermining the economic underpinnings the industry. However, while anti-trust proceedings continue to move forward, the very same trends the industry has sought to curtail, such as unfettered access to MLS listings by the public and the emergence of limited service discount brokerages, have taken place none-the-less. And yet, wholesale real estate brokerage remains the dominant business model and the percentage-based, split commission compensation model continues to endure. The main conclusion which can be drawn from these circumstances is that the primary value agents and brokers bring to the real estate value chain is not associated with information control but rather, with information management. In the long and complex real estate transaction, agents and brokers collect, analyze, interpret, and transmit data. Given the relative infrequency of sales transactions, the public at large does not attain the collective skills to engage in these activities, wholly or partially. The risks and costs associated with engaging in these activities motivate the public to contract with traditional wholesale brokers and agents as opposed to experimenting with alternative models.

It’s always good to have at least a basic foundation of fundamental investment knowledge whether you’re a beginner to investing or working with a professional financial advisor. The reason is simple: You are likely to be more comfortable in investing your money if you understand the lingo and basic principles of investing. Combining the basics with what you want to get out of your investment strategy, you will be empowered to make financial decisions yourself more confidently and also be more engaged and interactive with your financial advisor.

Below are a few basic principles that you should be able to understand and apply when you are looking to potentially invest your money or evaluate an investment opportunity. You’ll find that the most important points pertaining to investing are quite logical and require just good common sense. The first step is to make the decision to start investing. If you’ve never invested your money, you’re probably not comfortable with make any investment decisions or moves in the market because you have little or no experience. It’s always difficult to find somewhere to begin. Even if you find a trusted financial advisor, it is still worth your time to educate yourself, so you can participate in the process of investing your money and so that you may be able to ask good questions. The more you understand the reasons behind the advice you’re getting, the more comfortable you will be with the direction you’ve chosen.

Don’t Be Intimidated by the Financial Lingo

If you turn on the TV to some financial network, don’t worry that you can’t understand the financial professionals right away. A lot of what they say can actually boil down to simple financial concepts. Make sure you ask your financial advisor the questions that concern you so you become more comfortable when investing.

IRAs Are Containers to Hold Investments-They Aren’t Investments Themselves

The first area of confusions that most new investors get confused about is around their retirement vehicles and plans that they may have. If an investor has an individual retirement accounts (IRA), a 401(k) plan from work, or any other retirement-type plan at work, you should understand the differences between all the accounts you have and the actual investments you have within those accounts. Your IRA or 401(k) is just a container that houses your investments that brings with it some tax-advantages.

Understand Stocks and Bonds

Almost every portfolio contains these kinds of asset classes. If you buy a stock in a company, you are buying a share of the company’s earnings. You become a shareholder and an owner at the same time of the company. This simply means that you have equity in the company and the company’s future – ready to go up and down with the company’s ups and downs. If the company is doing well, then your shares will be doing well and increase in value. If the company is not doing well or fails, then you can lose value in your investment.

If you buy bonds, you become a creditor of the company. You are simply lending money to the company. So you don’t become a shareholder or owner of the company/bond-issuer. If the company fails, then you will lose the amount of your loan to the company. However, the risk of losing your investment to bondholder is less then the risk to owners/shareholders. The reasoning behind this is that to stay in business and have access to funds to finance future expansion or growth, the company must have a good credit rating. Furthermore, the law protects a company’s bondholders over its shareholders if the company goes bankrupt.

Stocks are considered to be equity investments, because they give the investor an equity stake in the company, while bonds are referred to as fixed-income investments or debt instruments. A mutual fund, for instance, can invest in any number or combination of stocks and bonds.

Don’t Put All Your Eggs in One Basket

An important investment principle of all is not to invest all or most of your money into one investment.

Include multiple and varying types of investments in your portfolio. There are many asset classes such as stocks, bonds, precious metals, commodities, art, real estate, and so on. Cash, in fact, is also an asset class. It includes currency, cash alternatives, and money-market instruments. Individual asset classes are also broken down into more precise investments such as small company stocks, large company stocks, or bonds issued by municipalities, or bonds issued by the U.S. Treasury.

The various asset classes go up and down at different times and at different speeds. The purpose of a diversified portfolio is to mitigate the ups and downs by smoothing out the volatility in a portfolio. If some investments are losing value at some particular period, others will be increasing in value at the same time. So the overarching objective is to make sure that the gainers offset the losers, which may minimize the impact of overall losses in your portfolio from any single investment. The goal that you will have with your financial advisor is to help find the right balance between the asset classes in your portfolio given your investment objectives, risk tolerance, and investment time horizon. This process is commonly referred to as asset allocation.

As mentioned earlier, each asset class can be internally diversified further with investment options within that class. For example, if you decide to invest in a financial company, but are worried that you may lose your money by putting everything into one single company, consider making investments into other companies ( Company A, Company B, and Company C) rather than putting all your eggs in one basket. Even though diversification alone doesn’t guarantee that you will make a profit or ensure that you won’t lose value in your portfolio, it can still help you manage the amount of risk you are taking or are willing to take.

Recognize the Tradeoff Between an Investment’s Risk and Return

Risk is generally looked at as the possibility of losing money from your investments. Return is looked at as the reward you receive for making the investment. Returns can be found by measuring the increase in value of your investment from your original investment principal.

There is a relationship between risk and reward in finance. If you have a low risk-tolerance, then you will take on less risk when investing, which will result in a lower possible return at any given time, relatively. The highest risk investment will offer the chance to make high returns.

Between taking on the highest risk and the lowest risk, most investors seek to find the right balance of risk and returns that he/she feels comfortable with. So, if someone advises you to get in on an investment that has a high return and it is risk-free, then it may be too good to be true.

Understand the Difference Between Investing for Growth and Investing for Income

Once you make the decision to invest, you may want to consider whether the objective of your portfolio is have it increase in value by growing overtime, or is it to produce a fixed income stream for you to supplement your current income, or is it maybe a combination of the two?

Based on your decision, you will either target growth oriented investments or income oriented ones. U.S. Treasury bills, for instance, provide a regular income stream for investors through regular interest payments, and the value of your initial principal tends to be more stable and secure as opposed to a bond issued by a new software company. Likewise, an equity investment in a larger company such as an IBM is generally less risky than a new company. Furthermore, IBM may provide dividends every quarter to their investors which can be used as an income stream as well. Typically, newer companies reinvest any income back into the business to make it grow. However, if a new company becomes successful, then the value of your equities in that company may grow at a much higher rate than an established company. This increase is typically referred to as capital appreciation.

Whether you are looking for growth, income, or both, your decision will fully depend on your individual financial and investment objectives and needs. And, each type may play its own part in your portfolio.

Understand the Power of Compounding on Your Investment Returns

Compounding is an important investment principle. When you reinvest any dividends or other investment returns, you begin to earn returns on your past returns.

Consider a simple example of a plain bank certificate of deposit (CD) that is rolled over to a new CD including its past returns each time it matures. Interest that is earned over the lifetime of the CD becomes part of the next period’s sum on which interest is assessed on. At the beginning, when you initially invest your money compounding may seem like only a little snowball; however, as time goes by, that little snowball gets larger because of interest compounding upon interest. This helps your portfolio grow much faster.

You Don’t Have to Go at It Alone

Your Financial Advisor can give you the investment guidance that you need so that you don’t have to stop yourself from investing in the market because you feel like you don’t know enough yet. Knowing the basic financial principles, having good common sense, and having your Financial Advisor guide you along the way can help you start evaluating investment opportunities for your portfolio and help get you closer toward achieving your financial goals.