October 28th, 2008
There are a lot of reasons that Clickbank has been a successful gateway to internet profitability for so many people. But two big reasons so many findsuccess with the Clickbank system is that it is simple to understand and get started on quickly and everything in the Clickbank system works. It is such a well run Internet Marketing resource that a lot of people have turned to it as a payment gateway rather than PayPal or one of the other more well known funds processing agencies on the web.
Clickbank does an outstanding job of handling third party credit card transactions. And because everything about Clickbank is digital including all products and the means of delivery, the accountability for handling payments has to be absolutely rock solid dependable and trustworthy.
The ability for any internet marketer to quickly and easily become a Clickbank affiliate is another reason it is such a stunning success. It’s simplistic to select a product from the Clickbank marketplace once you have a free account on the service which you can easily set up on their web site. And once you have that account, Clickbank generates tracking codes so it can tell when you have selected a digital product and started promoting it online. This means with the simple step of creating an account, the door is open for you to sell ten thousand products on your internet marketing web presence with little more work than that. Suddenly you go from a newcomer to cyberspace to the owner of a Wal-Mart of the web.
Any marketplace in cyberspace or not relies on the meeting of sellers and buyers. And to be a success Clickbank also has to make it easy for creators of digital products to sell their goods through their marketplace too. For a seller, there is a fee to get started on Clickbank but considering that by putting their product into this marketer, it could get picked up by an army of 100,000 sellers, a $50 start up fee and a small percentage commission to Clickbank is entirely reasonable.
Now you just get your product into the Clickbank library. You might have to hold your breath to get a sale because you need one sale to get noticed by the marketing software in Clickbank. But once you are listed, the odds are somebody is going to pick up your product and begin to sell it. Clickbank tracks and records those sales scrupulously so other affiliates will start to pay attention as your sales pick up and before long you are making tons of sales being promoted by this sales army you never met and have no idea who they are.
Clickbank is a full service marketplace for the seller because you don’t have to find affiliates or even promote your product. Just get it out there and once the momentum of sales picks up, it can snowball into a huge seller for you. The profits roll into your Clickbank account and on your regular distribution cycles you established when you set up the account, Clickbank sends the money to your bank account.
October 28th, 2008
Tax Information and Deductions About Adsense and Other Online Businesses
These Tax Deductions are aimed at U.S. internet marketers. Keep in mind, these go hand in hand with your personal tax situation. Consult a tax attorney or other tax professional in your area. I never realized this until I started preparing taxes, but being aware of your tax situation all year is a must. Just by paying a little attention and learning the basic tax code, you can save thousands in taxes. It is your hard earned money, this money should be in your pocket, or in a interest bearing account.
Google Adsense and Similar Programs
Google Adsense is required to collect tax information from those who participate in the program. If you’re a business, you’ll need to put your EIN number on your application. If you’re an individual, all you’ll need is your social security number. If you don’t have that information when you initially sign up, you can still apply for the Google Adsense program. But be advised that Google Adsense will withhold payments to you until they receive your tax information.
While Google does not withhold taxes or provide any tax advice, they will send you a 1099 once your earnings reach a certain amount. Of course, if you are a Non-US business and have no activity in the United States, you will not need to provide this information. For more tax information regarding the Google Adsense program, visit the Google Adsense Support site. For other tax-related questions or concerns, you can log onto irs.gov. Google will also send a copy of the 1099 to the IRS, so you must report this income and pay taxes on it.
Software, Computers and Other Hardware
If you use your computer for 100% business, you can deduct the full of the cost of your internet service, phone, computer, printer, fax machine and copier, even your computer desk and other equipment. Say the PSU went out on your business computer. The entire cost to repair the PSU is deductible. Bought memory? Yep, tax deductible. You can take the section 179 deduction or depreciate the equipment. Software you buy for your business, your web hosting fees, domain registration fees, and the cost of ads you place across the Internet are also tax deductible.
I stress though, only the business costs can be deducted, nothing for personal use. For example, if you use your computer for 75% business and 25% personal use, you can deduct 75% of your yearly internet bill. If you have an online business, it is vital to keep accurate records. I would suggest keeping a log of hours you spend on business and personal use, like pizza delivery people do for driving, or should do.
Membership Site Fees
If you promote your business through traffic exchanges or safelists and you pay for upgrades or buy credits, these are also tax deductible. Membership fees for sites related to your business are also deductible. For example, say you sell PLR or Resell Rights products as your business, and you pay a membership site $29.97 a month for your products, you can deduct those fees. If you buy website templates and graphics for your business site, those are also deductible. Fees for payment processors are also deductible. Pay a freelance programmer for some work? Deduct it!! Don’t forget your autoresponder fees!
Home Offices
For a room to be considered a home office, it must be used 100% for business purposes only. No tv’s, radios, or hanging clothes in the closet, no sleeping in the room, nothing but business, or it will not be allowed. The IRS has really cracked down on this in the past couple of years, and a preparer who uses due diligence will not allow the deduction. I know I won’t. If you also deduct your mortgage interest, it is even more important. If you do this properly, you will receive a great tax benefit.
Put Money Off to the Side
If you make most of your money online, I would suggest putting away at least 20% of your earnings for taxes, more if you start making high 5 figures or higher. Of course, this depends on your personal tax situation, like state or city income taxes, filing status and dependents. Myself, I’m single, live in Florida, so my returns are pretty easy, and for now, I only need to put 10% away. One last thing, and I cannot stress this enough: the vast majority of the time it is better to file Married Filing Jointly instead of Married Filing Separately. This is true even if only one spouse has earned income.
Keep Your Records
Always keep detailed records, and keep them organized, which is very easy to do. Make the records on your computer, print them, and also burn the files to a CD or DVD, and label them properly. I suggest keeping the records for at least 3 years, but 5 is better. If you make 6 or 7 figures online, I would keep the records even longer. When tax time comes around, you will be very well prepared, and you will get the best tax benefit possible. And if the IRS does an audit, you will have the records to prove your deductions are legit.
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