Forex Options Market Overview

The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large international corporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an "interbank" market. However, with the plethora of real-time financial data and forex option trading software available to most investors through the internet, today's forex option market now includes an increasingly large number of individuals and corporations who are speculating and/or hedging foreign currency exposure via telephone or online forex trading platforms.

Forex option trading has emerged as an alternative investment vehicle for many traders and investors. As an investment tool, forex option trading provides both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.

Most forex options trading is conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.

Forex Option Defined - A forex option is a financial currency contract giving the forex option buyer the right, but not the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the forex option buyer pays to the forex option seller for the forex option contract rights is called the forex option "premium."

The Forex Option Buyer - The buyer, or holder, of a foreign currency option has the choice to either sell the foreign currency option contract prior to expiration, or he or she can choose to hold the foreign currency options contract until expiration and exercise his or her right to take a position in the underlying spot foreign currency. The act of exercising the foreign currency option and taking the subsequent underlying position in the foreign currency spot market is known as "assignment" or being "assigned" a spot position.

The only initial financial obligation of the foreign currency option buyer is to pay the premium to the seller up front when the foreign currency option is initially purchased. Once the premium is paid, the foreign currency option holder has no other financial obligation (no margin is required) until the foreign currency option is either offset or expires.

On the expiration date, the call buyer can exercise his or her right to buy the underlying foreign currency spot position at the foreign currency option's strike price, and a put holder can exercise his or her right to sell the underlying foreign currency spot position at the foreign currency option's strike price. Most foreign currency options are not exercised by the buyer, but instead are offset in the market before expiration.

Foreign currency options expires worthless if, at the time the foreign currency option expires, the strike price is "out-of-the-money." In simplest terms, a foreign currency option is "out-of-the-money" if the underlying foreign currency spot price is lower than a foreign currency call option's strike price, or the underlying foreign currency spot price is higher than a put option's strike price. Once a foreign currency option has expired worthless, the foreign currency option contract itself expires and neither the buyer nor the seller have any further obligation to the other party.

The Forex Option Seller - The foreign currency option seller may also be called the "writer" or "grantor" of a foreign currency option contract. The seller of a foreign currency option is contractually obligated to take the opposite underlying foreign currency spot position if the buyer exercises his right. In return for the premium paid by the buyer, the seller assumes the risk of taking a possible adverse position at a later point in time in the foreign currency spot market.

Initially, the foreign currency option seller collects the premium paid by the foreign currency option buyer (the buyer's funds will immediately be transferred into the seller's foreign currency trading account). The foreign currency option seller must have the funds in his or her account to cover the initial margin requirement. If the markets move in a favorable direction for the seller, the seller will not have to post any more funds for his foreign currency options other than the initial margin requirement. However, if the markets move in an unfavorable direction for the foreign currency options seller, the seller may have to post additional funds to his or her foreign currency trading account to keep the balance in the foreign currency trading account above the maintenance margin requirement.

Just like the buyer, the foreign currency option seller has the choice to either offset (buy back) the foreign currency option contract in the options market prior to expiration, or the seller can choose to hold the foreign currency option contract until expiration. If the foreign currency options seller holds the contract until expiration, one of two scenarios will occur: (1) the seller will take the opposite underlying foreign currency spot position if the buyer exercises the option or (2) the seller will simply let the foreign currency option expire worthless (keeping the entire premium) if the strike price is out-of-the-money.

Please note that "puts" and "calls" are separate foreign currency options contracts and are NOT the opposite side of the same transaction. For every put buyer there is a put seller, and for every call buyer there is a call seller. The foreign currency options buyer pays a premium to the foreign currency options seller in every option transaction.

Forex Call Option - A foreign exchange call option gives the foreign exchange options buyer the right, but not the obligation, to purchase a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign exchange option buyer pays to the foreign exchange option seller for the foreign exchange option contract rights is called the option "premium."

Please note that "puts" and "calls" are separate foreign exchange options contracts and are NOT the opposite side of the same transaction. For every foreign exchange put buyer there is a foreign exchange put seller, and for every foreign exchange call buyer there is a foreign exchange call seller. The foreign exchange options buyer pays a premium to the foreign exchange options seller in every option transaction.

The Forex Put Option - A foreign exchange put option gives the foreign exchange options buyer the right, but not the obligation, to sell a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign exchange option buyer pays to the foreign exchange option seller for the foreign exchange option contract rights is called the option "premium."

Please note that "puts" and "calls" are separate foreign exchange options contracts and are NOT the opposite side of the same transaction. For every foreign exchange put buyer there is a foreign exchange put seller, and for every foreign exchange call buyer there is a foreign exchange call seller. The foreign exchange options buyer pays a premium to the foreign exchange options seller in every option transaction.

Plain Vanilla Forex Options - Plain vanilla options generally refer to standard put and call option contracts traded through an exchange (however, in the case of forex option trading, plain vanilla options would refer to the standard, generic forex option contracts that are traded through an over-the-counter (OTC) forex options dealer or clearinghouse). In simplest terms, vanilla forex options would be defined as the buying or selling of a standard forex call option contract or a forex put option contract.

Exotic Forex Options - To understand what makes an exotic forex option "exotic," you must first understand what makes a forex option "non-vanilla." Plain vanilla forex options have a definitive expiration structure, payout structure and payout amount. Exotic forex option contracts may have a change in one or all of the above features of a vanilla forex option. It is important to note that exotic options, since they are often tailored to a specific's investor's needs by an exotic forex options broker, are generally not very liquid, if at all.

Intrinsic & Extrinsic Value - The price of an FX option is calculated into two separate parts, the intrinsic value and the extrinsic (time) value.

The intrinsic value of an FX option is defined as the difference between the strike price and the underlying FX spot contract rate (American Style Options) or the FX forward rate (European Style Options). The intrinsic value represents the actual value of the FX option if exercised. Please note that the intrinsic value must be zero (0) or above - if an FX option has no intrinsic value, then the FX option is simply referred to as having no (or zero) intrinsic value (the intrinsic value is never represented as a negative number). An FX option with no intrinsic value is considered "out-of-the-money," an FX option having intrinsic value is considered "in-the-money," and an FX option with a strike price at, or very close to, the underlying FX spot rate is considered "at-the-money."

The extrinsic value of an FX option is commonly referred to as the "time" value and is defined as the value of an FX option beyond the intrinsic value. A number of factors contribute to the calculation of the extrinsic value including, but not limited to, the volatility of the two spot currencies involved, the time left until expiration, the riskless interest rate of both currencies, the spot price of both currencies and the strike price of the FX option. It is important to note that the extrinsic value of FX options erodes as its expiration nears. An FX option with 60 days left to expiration will be worth more than the same FX option that has only 30 days left to expiration. Because there is more time for the underlying FX spot price to possibly move in a favorable direction, FX options sellers demand (and FX options buyers are willing to pay) a larger premium for the extra amount of time.

Volatility - Volatility is considered the most important factor when pricing forex options and it measures movements in the price of the underlying. High volatility increases the probability that the forex option could expire in-the-money and increases the risk to the forex option seller who, in turn, can demand a larger premium. An increase in volatility causes an increase in the price of both call and put options.

Delta - The delta of a forex option is defined as the change in price of a forex option relative to a change in the underlying forex spot rate. A change in a forex option's delta can be influenced by a change in the underlying forex spot rate, a change in volatility, a change in the riskless interest rate of the underlying spot currencies or simply by the passage of time (nearing of the expiration date).

The delta must always be calculated in a range of zero to one (0-1.0). Generally, the delta of a deep out-of-the-money forex option will be closer to zero, the delta of an at-the-money forex option will be near .5 (the probability of exercise is near 50%) and the delta of deep in-the-money forex options will be closer to 1.0. In simplest terms, the closer a forex option's strike price is relative to the underlying spot forex rate, the higher the delta because it is more sensitive to a change in the underlying rate.

PayPal - What it is and How to Set it Up

If we're going to succeed in making money, there's one thing we all need:

A VESSEL

A vessel gives us the opportunity to hold in it whatever we are interested in placing inside it. The bigger the vessel, the more it will be able to hold, and the more we will be able to have. The smaller the vessel, the less we will be able to hold on to.

The famous story is told of the old days, where everybody would store their money under their mattresses (although I'm sure there are many who still do!) Of course, once one is making huge amounts of cash, it becomes a little difficult to do this - and a little uncomfortable for sleeping purposes as well!

And so, banks came about. Banks have evolved from institutions that would store huge sums of cash, to the additional and more necessary electronic storage system. Essentially banks store our money today in electronic form. Even though there must be real cash to have an effect, when we inquire about our money from a bank, we are not shown some huge vault with every cent we've earned. Instead, we receive a small piece of paper with a representative figure of it, indicating the value of money we have "saved" in the bank.

When it came to the issues of transferring money on the Internet, this same concept followed, when PayPal came about. Essentially PayPal is a secure Internet Banking system that allows money to pass by from one person to another in an electronic manner. The great thing about it, is that everybody who has a credit card - or a PayPal account with money in it - can make use of it to purchase things online - and of course to receive payments for their own things.

That means that even if a person is not registered as a credit merchant, he can still obtain funds from someone across the globe by means of asking for their credit card details. He incurs no credit card fees for the transaction, although PayPal do take a commission (which can easily be seen on their site.)

In addition to being able to sell things online - no matter what you have - and receiving payment for them, PayPal embedded another useful utility - the Donate utility. It works quite simply! Put one of these icons on to a web page or blog page of yours, and ask your friends and family - and of course every other person in the world to donate a small amount of their hard earned cash - for your noble causes.

These are the vessels. Suddenly what once may have been an outstretched arm with open hand asking for money, is exchanged for an icon on your web page allowing all and sundry to bestow their wealth for your own purposes. Isn't life terrific?!

So how much does it cost?! How does one go about joining the PayPal craze?! Will people actually trust this? Will I get paid? Is it reliable? How will I practically use it? Can I really make money on the Internet with such a simple system?!

COSTS:

PayPal costs practically nothing to join! It's open to a number of countries - although unfortunately not all yet. If you're in the USA and have a bank account, there will be no charge at all. If you are located in certain other areas - such as Israel, you will need to submit your credit card details to PayPal. They will take off $1.95 (at the time of writing this article) to check that everything is in order, but you will receive it back again when you withdraw your first amounts. So... you really don't lose anything!

If you do make use of the Israel system (for example) you will be charged another 22 Shekel each time you make a withdrawal, so do be careful not to take out your money in small quantities as it will end up costing you a lot!

PayPal also has certain restrictions as to how much you are allowed to take out in one day (if you are forced to using the credit card system.) You can find out more on their site, or alternatively email them to confirm exactly what the maximum amounts may be for your location. In Israel, one is only permitted to withdraw $750 per day.

HOW TO JOIN PayPal IN JUST A FEW EASY STEPS:

1. Go to http://www.PayPal.com 
2. Click on Sign-up 
3. Choose what type of account you'd like - Personal, Premier or Business.

The information on the page is clear enough to help you select which is better for you. 
If you're private and just purchasing things, go for personal. 
If you're wanting to make some money yourself, choose Premier. 
If you're serious about business transactions, you'll need to select Business.

Remember, each carries certain tax constraints, and you must select the option best for you.

4. Fill in your details...

AND YOU'RE DONE!

NB: Choose a strong password. PayPal is a target site for hackers just wanting to get at your wealth - as easily as they can! Keep in mind that if anything happens to your wealth, you'll have a hard time retrieving it again!

PayPal'S TRUST

Almost every single commercial site on the Internet is using PayPal. It's a huge success! Those who may mistrust such things as credit card transactions on the Internet etc., may just as well be concerned regarding their credit card in real life situations as well. It doesn't take much to use a credit card on the Internet, and whether or not the credit card is used for the Internet or in real life person - it is equally as easy to misuse it.

GETTNG PAID

It's an amazing feeling to log into one's account and see the wealth accumulating. But it just seems too unreal! Is it actually mine?!

Yes. With just a few clicks after logging into one's account, one can select how much money to retrieve. The money will either be deposited into one's bank account (if one is in a place like the USA) or alternatively onto one's credit card (if for example, one is in Israel.) Don't forget there are fees attached for the credit card!

It can take a few days or more for the money to come through, so don't get in a panic and do be patient.

RELIABILITY

PayPal works like a wonder! For those purchasing, they simply enter their credit card details with the normal numbers and expiry date etc. and the transaction is completed! For those receiving funds, the moment this happens, one will receive an email verifying the transaction has taken place. Check it out on your PayPal account directly if you're unsure of things.

There *are* phishers and others out there who regularly send emails requesting your personal details. These people will claim that they're PayPal and you know... "Just checking in... checking up... updating details" and the like! Don't reveal anything to them. Go back to your account and check that everything is in order, and never reveal your personal information to anyone claiming to be PayPal. If in ANY doubt about a PayPal transaction or email - that vaguely speaks of the need for you to reveal your personal information, be sure to log in to your account and email PayPal directly first!

PRACTICAL USE

You're going to want PayPal for two things. You're going to want donations! Everyone does! Almost every site making use of PayPal sticks the DONATE button somewhere where everybody can see it. Actually you might be amazed at just how many people want to help others involved in some sort of contribution to the Web.

You'll also want PayPal so that you can sell things to others.

I'm going to be publishing other articles to share a number of things you can use the Internet for in order to let others know that you have something - that someone else wants! And with ease, you'll be able to let them know all about it, and - donate, or no donate - they'll be happy to pay using this nifty and easy tool!

CAN *I* MAKE MONEY USING PayPal?

YES! As they say with a click of the fingers - it's that simple! You're going to need to let others know what you have for them. You may wish to create a blog. It's easy to do as we'll learn together in future articles. Once you begin sharing something of yourself to others and what you have available for them, you'll be able to charge them - or of course to simply ask others to help in donating to your causes and allow you to progress in your own work. It's mutual. You give something to others who enjoy what you have to offer, and in return you see some sort of return on investment!

CONCLUSION

Join me for further articles, when we'll be talking some more about PayPal later on again and come back to it when we deal with using it in more detail for other purposes.

PayPal is the Internet ticket to receiving wealth. It's the ultimate vessel needed to allow others to pay you whatever it is you're asking from them. It's fun to use, easy, user friendly when everything is set up correctly, makes a big impression on users (who think you're a real Internet professional and a huge business!)

So, get started today. Sign up with your account and let's move forwards to our next lesson, where we'll get to better grips with setting ourselves up for generating income.

Top 10 eBay Trading Assistant Drop Store Reality Checks

Running an eBay consignment business can be complicated, time consuming, and nerve wracking...

As a business, consignment selling on eBay is not the easy get rich quick scheme some would have you believe. While initially setting up an eBay consignment business may sound like a ticket to easy street...

Whats better than selling other peoples stuff and making a 40% commission from the sale?

Having a retail store without owning inventory... 

When one gets right down to the facts, its not that simple...

eBay consignment has its rewards and challenges, like any other business. The difference here is the dependence eBay consignment sellers have on outside influences. Outside factors have a great deal to do with how well an eBay consignment based business will prosper or if it will even survive.

Some of those outside sources of influences are:

1.     eBay - eBay itself controls whether you have a business at all. If you make just three bad decisions, your account can be closed forever and you will be shut down. Tough to be a eBay consignment business without eBay. Knowing the rules of eBay is sometimes just enough to stay out of trouble. But as we all have seen recently, eBay can change the rules at any given moment and these rules are interpreted by different eBay employees with differing view points at different times. One day you can be perfectly OK, the next day all 250 items you have listed this week can be removed without even an email warning. Be aware of the risks because the listing fees you lose will be your own.

2.     Local Government - Your local or State Governments can decide in a moment to come down on your operation for breaking rules you were not breaking the day before. (SEE PENSYLVANIA)

3.     Customers - Your first customers - the sellers, are your life blood, without them you have nothing to sell. They all want you to work for minimum wage and they have a hard time understanding why you need to "charge so much". Customers can also lead you into peril with outside factor number 1 - eBay, if just one customer places a shill bid, or gives you stolen merchandise to sell... can lead to trouble your business can not withstand and you did not deserve.

4.     Expenses - You are not really running a store without inventory, your landlord knows that and so does you're insurance agent. You are operating what the insurance companies want to classify as a Pawn Shop. When insurance company underwriters see the code for "Pawn Shop", whatever that code may be, on the agents form for your quote... they immediately think guns, and robbery and all kinds of unsavory situations involved with bailee insurance coverage. They quote high rates, if they return a quote for coverage at all... and you end up paying much more than a simple retail store would for a similar exposure. - Other expenses including eBay fees, PayPal fees and Software expenses sometime become a reality no one at the franchise office or eBay warned you about.

5.     Hours - If you thought eBay consignment was a 9-5 type of job for a store owner, well you may have been mislead. Running an eBay consignment or drop store will take a great deal of time. Each item you accept through your doors must be handled and processed in multiple steps both in intake and when processing for shipment. Plan on each item taking up at least one hour of employee or owner time, start to finish, if your lucky. Multiply that by the 250 - 400 items you should be trying to process per week and you get the picture. Lower the number of items processed by raising the bar on what you accept is one option... but then you reduce your overall numbers and raise the amount of time each higher priced item will demand of your man-hour pool. (Higher priced items get more questions, demand better photos and need more careful handling and packaging).

6.     eBay Sellers & Buyers - As a consignment seller it is necessary to include numerous disclaimers in your listing details sections on your eBay auctions detailing the facts . i.e. "This is not a new item, there is no warranty, we only take returns if we did not describe it correctly, you will pay shipping for returns etc"... All of these necessary protections are reasonable from your point of view as a consignment seller. They are not reasonable from the point of view of most buyers on eBay. If the eBay buyer smells a possible problem, they bolt and do not bid. Your standard disclaimers hurt your chances to sell your items. It is a catch 22. Buyers are your second set of customers for each item you list and hopefully sell. This second set of customers, the buyers, are very inquisitive and they demand to know certain facts about certain items you have listed for sale. Some of these questions may be difficult to answer. This in turn causes you to either fake an answer, ignore the question from the buyer, or to forward the question to your seller. Your first customer the seller may answer in a less than honest manner to get the item sold. All of these questions and answers take time and in the case of incorrect answers returning from your seller customer, can put you in a bind with the buyer customer. - In the end you are in the middle serving two customers for each item sold.

7.     Unsold Items - It is a fact that not every item will sell on eBay. Some items will not sell, no matter how much you lower the price. If you run these items as auctions on eBay too many times for your first customer the seller the eBay listing fees will build up to unacceptable amounts. Even if you charge an up front fee, the eBay fees are lost money if an item does not sell. To make money on each item brought through your door just from a man-power and eBay listing fee perspective, you would need to charge an upfront fee to your first customer - the seller of $25 or more. (Consider labor, electricity, lease payment, insurance costs, etc etc...). We all know mechanics charge $35 to just estimate the repair on a car, but when it comes to eBay consignment it is very difficult to get reimbursed from your first customer - the seller what you have spent for your time.

8.     Employees - Do you need employees? Yes, you do... One person can not process the amount of product necessary to meet the monthly overhead of a full eBay drop store operation. Three full time people is the usual minimum used for successful operations. (By successful I mean meeting the overhead and paying the landlord). So, why are employees an outside source of influence over your business? Most business owners know why, but in this instance the reasoning can be a bit different. Finding good employees, who understand the intricacies of this business is the first challenge, keeping them is the second. After those challenges are met, your next hurdle includes trusting other people to handle and describe , merchandise you do not own. If a description is incorrect or the right keywords are not selected for the title of the item on eBay, you can lose money for yourself and your first customer the seller. As the owner of the business your job is to bring in sales and handle marketing. You must depend upon your employees for your product presentation (eBay description). Unless you plan on describing every item yourself... You should have good employees. Good employees with computer skills, customer service skills, no criminal record etc... are not inexpensive, nor are they easy to find and keep. Offer those employees incentives in the form of commissions on sales and you will open up a whole new can of worms. Shill Bidding - Your employees can not have any incentive to bid on your consignment items themselves. If they do it, you will lose... possibly your entire business. Be very wary of offering commissions on sales.

9.     Limited Venue - eBay... Yes eBay... Everyone I know is painfully aware of the fact that I sing the praises of eBay every chance I get... I fully and completely believe, as a marketplace eBay is unmatched, but it is just one marketplace. Placing your entire business plan and future prosperity in the hands of just one provider or one outlet to sell your consigned items... is a very risky proposition. I think the events of the past week have proven this to be true (See REDOL). eBay changes the rules, when they want to. They have not a care about the investment you have made in your business. When you set up an eBay consignment store or TA business, your banking on the fact that eBay will be there with you 100% and will not change the rules or raise the fees, or eliminate your ability to offer your services (as in the case of eBay Motors recently) to the public. Almost every successful Internet business today sells in many "channels" or on multiple venues. Stand alone eCommerce websites, Amazon, Yahoo, Buy.com, Overstock, even Craig's List. eBay is not the only game in town any longer. As an eBay consignment seller, especially if tied to a franchise, you are pretty much locked into one solution or venue to sell your wares. This is a choice no savvy marketer would make in good conscience, not if long term stability and profitability were in his/her goals.

10.   Progress - Read the tea leaves... eBay is changing and morphing into a new and some think a better place. eBay is too large and has too many high dollar, high profile new merchandise sellers to remain a place where used Pez dispensers can be sold at a profit. Repeatable inventory sales is the future... or actually the now of eBay. No consignment seller will have repeatable merchandise to compete with the big sellers on eBay. When you list a used item for your customer -( the seller) and learn that a brand new item or one very similar, can be purchased for pennies more than what you know your customer should receive for his nearly new item... you know the game is up. eBay has become the land of mass merchandising.

Used item auctions will remain as the core of eBay but the role of auctions will continue to diminish over time. See the recent quotes by new eBay CEO John Donahoe. In addition as people become more Internet savvy and sell their own items on Craigslist or Kijji for free the demand for eBay professionals to provide this service will be diminished. Progress is inevitable, when the eBay consignment industry was born most of our consignment customers did not know how to turn on a computer or surf the web. Now it is estimated high speed Internet connections will be available in 70% of US homes in the next few years.

Grandmothers are selling on eBay and kids are inventing new and interesting worlds online like Second Life or Club Penguin. If you don't know what those last two places are, you are no longer an Internet savvy pioneer and have become one of the old school Internet professionals. Kinda feel like a blacksmith?

What to do?

If you are contemplating opening an stand alone eBay consignment drop store, one which sells nothing but merchandise brought through the door by consignment customers... Please study your numbers, your costs, your soul... before dedicating any of your own assets to this type of venture. As a former franchise representative for an eBay drop store chain, I can tell you the numbers were not looking good nationwide back in 2006. This is 2008 and many of the market factors limiting the profitable outlook for a stand alone eBay drop stores have only become more competitive.

If you are thinking about adding eBay sales and eBay consignment in a limited fashion to your pre-existing business...

Great idea! Just be aware of the consignment challenges and be sure to include selling other new and repeatable merchandise in your eBay business plan. eBay selling and an eBay Stores website can be a huge benefit for any retail or wholesale operation needing a boost in exposure, sales, and eCommerce revenue. Using consignment to boost your existing revenue or offer a trade in program for your regular customers is a great way to increase overall business. This is what we do for our clients at All Business Auctions and I can tell you it works. There is no better and less expensive way to get your brand and your products in front or more buyers worldwide. As long as your outlook is focused on the advertising and exposure benefits and possibly the service to existing customers aspects, you will find an eBay program to be very rewarding for your business.

If your currently a eBay drop store franchisee or owner...

Look for ways to move your business into other markets. Most franchises are trying to offer import good from the far east as a way to placate their franchisees who are not generating the revenue originally projected for the eBay drop store consignment business. I think these measures are someone foolhardy. Yes, every eBay drop store owner could profit by selling repeatable merchandise. The merchandise offered by the franchises does not seem to be repeatable however. (small lots of no-name brand second run merchandise). Be careful about what types of merchandise you import or buy to supplement your store sales. You do not want to end up owning a container full of widgets which also can not be sold. Some drop stores have begun to sell pallet loads of returned electronics and other merchandise bought from brokers. This is a difficult way to add to your bottom line. The high rate of returns inherent with this kind of already returned merchandise will do nothing for your feedback rating or your labor costs.

Bottom line for current drop store owners is... look for a way out.

If your store is just on the edge of profitability or it has never reached profitability then you should be looking for better ways to make your money work for you.

You can do what I have done with All Business Auctions and move your business from a consignment only model to that of a business to business service provider. Become what you are in your community - an eBay and eCommerce expert. Use the knowledge you have gained during this time of eBay growth and decline of eBay consignment to further your goals in business. Business to business coaching and consulting is one of the most lucrative professions in the world.

If set up and trained correctly you can make enough money in one afternoon of consulting to cover the overhead of your store for a month. How many businesses in your community would be interested in learning about how to sell product on eBay without having to pay you a commission on each item sold? What if you could set them up with the software, the eBay store design and the tools necessary and then be there for them as a paid consultant to help them get online and selling smoothly and efficiently? Could you sell your local chamber members on a service like that?

I am sure you could... Sometimes there is opportunity in the darkest moments. If your consignment sales business has been floundering, maybe you should look at it differently. Look at the time spent as a training program for your future.

Become an Internet Business Mentor... rather than a eBay Drop Store owner. It even sounds better...

YouTube Marketing Service

By hiring a professional YouTube marketing service, you can take advantage of marketing through videos. Video marketing is one of the best ways to position your business and brand name in the minds of the masses. YouTube offers you an amazing facility to introduce your business, products/services and most importantly your message, out to a large number of people on the Internet through video sharing. As the most powerful video sharing network on the web, YouTube gives you unfettered access to people all around the globe. It offers outstanding features, facilities and quick traffic on your website.

Millions of people are using a professional YouTube marketing service to promote their business and services and to grab the attention of targeted audiences. The popularity of YouTube is the main reason why it is ideal to use it as a marketing medium; however, you need to know a number of things about YouTube to make your campaign successful. Getting lost in the YouTube shuffle is very easy when thousands of new videos are uploaded every day. So for the visibility of your video, you must prepare YouTube marketing strategies.

You could spend time promoting your video yourself, and there is nothing bad or wrong in that. But building back links and submitting your video to bookmarking sites can take so much of your precious time, why not hire a YouTube marketing service provider?

Hiring a YouTube marketing service not only saves you time, but it also guarantees that your video will get the number of views that you specify. Those views will then help you get ranked in YouTube search engines, making it easier for others to find your video so that you can start getting organic traffic. If you need to ensure that your YouTube campaigns are successful, the only way to make that happen is by getting eyeballs in front of your video. A qualified YouTube marketing service provider can help make your YouTube campaigns successful.

By hiring a professional YouTube marketing service, you can take advantage of marketing through videos. Video marketing is one of the best ways to position your business and brand name in the minds of the masses. YouTube offers you an amazing facility to introduce your business, products/services and most importantly your message, out to a large number of people on the Internet through video sharing. As the most powerful video sharing network on the web, YouTube gives you unfettered access to people all around the globe. It offers outstanding features, facilities and quick traffic on your website.

Millions of people are using a professional YouTube marketing service to promote their business and services and to grab the attention of targeted audiences. The popularity of YouTube is the main reason why it is ideal to use it as a marketing medium; however, you need to know a number of things about YouTube to make your campaign successful. Getting lost in the YouTube shuffle is very easy when thousands of new videos are uploaded every day. So for the visibility of your video, you must prepare YouTube marketing strategies.

You could spend time promoting your video yourself, and there is nothing bad or wrong in that. But building back links and submitting your video to bookmarking sites can take so much of your precious time, why not hire a YouTube marketing service provider?

Hiring a YouTube marketing service not only saves you time, but it also guarantees that your video will get the number of views that you specify. Those views will then help you get ranked in YouTube search engines, making it easier for others to find your video so that you can start getting organic traffic. If you need to ensure that your YouTube campaigns are successful, the only way to make that happen is by getting eyeballs in front of your video. A qualified YouTube marketing service provider can help make your YouTube campaigns successful.

5 Ways to Market Your Youtube Videos and Get More Website Traffic

If you're currently uploading videos onto YouTube for more potential business or are looking to do so, then this article is just for you. Because inside, you will learn a vast amount of ways to get traffic to your website from using Youtube.

As you already know, YouTube is very popular. In fact, it's so popular, that it's currently ranked one of the top 10 sites on the internet in terms of the amount of internet traffic that it gets. So if you're not marketing on YouTube or are using it ineffectively, you're missing out on a ton of new customers that you could be getting on a daily basis.

But first, let's talk about why you would want to market on Youtube. I'm sure you're heard of the term "social networking" or "social marketing". Well, YouTube is more than a video site - it's a social site - and has a ton of user interaction each and everyday. So if you don't like the idea of social marketing, then YouTube can be your answer, because it is a social networking site.

Since uploading videos to YouTube is a form of social marketing, it only makes sense that one of the easiest ways to get traffic to your website from YouTube is to let your friends and family members know about the YouTube videos that you created. Right?

On YouTube (and social networking sites in general), you can make a lot of friends quickly. A great way to make relevant friends on YouTube is to subscribe to channels of users who create similar videos that you do. Some of these users will in turn subscribe to your YouTube channel just because they want to make new friends also. So when you create a new video, guess what? Your new friends will get a notice that you created a new video!

Oh and by the way, I use the term "Youtube channel" because uploading videos to YouTube is like having your own tv station. Viewers can tune into your channel to see if you have anything new, and can watch whatever you have to offer, and watch it anytime they like. But showing your videos to friends is just one great way to get traffic to your website. Another great way is via classified ads.

There are two great classified ads sites that I use to get traffic to my website, and if you want to make your YouTube videos very popular and get more subscribers to your channel, you will want to link to your videos via classified ad websites.

One great classified ad site that I use is usfreeads.com. It currently costs $9.99/month to post ads on this website but it is definitely worth it. With your $9.99 a month membership, you can post unlimited amounts of classified ads. This means that each time you post a new YouTube video, you can market it via your usfreeads.com account, and get more traffic to your video.

With more traffic, you get more views and more subscribers assuming that your information is awesome. But you don't have to stop at classified ads, you can also market your YouTube video via your blog.

In addition to uploading your videos to Youtube, you can upload your videos to your blog and create something that is called a "video blog" - or vlog. Video blogs are just what they sound like - blogs created out of videos. You will want to do some blogging and pinging to get the search engines to index your content, and also will want to do some RSS marketing to get others to insert your blog content onto their website.

But you don't have to stop here. You can also do some viral marketing. Video's in and of themselves can become viral, but the kind of viral marketing I'm talking about is with free ebooks. You can write ebooks related to your niche, and distribute them around the internet via free eBook directories and article marketing. With the eBook directories, you simply insert information about your ebook, and include the link to your.PDF ebook, and submit your info.

With article marketing, you can write articles about a particular topic and submit them to the article directories. You will want to link to your free eBook page where others can download and read it. You will want to include a short blurb that others can pass it around freely - and not modify its contents. In your free ebook, you should include links to your YouTube videos so that you can get traffic to them, and build your YouTube channel subscribers.

Do you see how easy all of this can be? It's very simple, and once you start doing it yourself, you will see how easy it is too. Good luck on your YouTube marketing efforts, and I wish you the best on your YouTube marketing campaigns.

Three Ideas To Get Right Co-Branding Partner

Partnership is a key to great success. Good marriages result in big personal achievements. Long and strong marriages pave a way for major accomplishments that seem impossible individually. Well, this article is not about marriage but it is about sound business partnerships or co-branding. 

You must have heard about two big brands forming a merger or getting into partnerships. Yes, it can be possible even at the smallest level. Two like minded people can start a brand together. As it grows, a third person who has a complimenting business can be your partner.

The chain can grow in this manner, mutually benefiting each party. Such an example, is present in the nature, Lichen is a plant that is formed by the symbiotic association or partnership of an algae and fungus. The algae provides food to the fungus while the fungus provides protection to the algae. Together, they form a strong partnership and survive the changing climatic conditions.

Co-branding thrives mainly on the "Lichen" phenomenon. Where one party provides a complimentary benefit to the other. It is also an improved version of the old fashioned barter system. Recently, such a co-branding example was shown by Spotify and Starbucks. It is needless to say, that Starbucks has already charmed the world by its amazing business model. 

The Starbucks and Spotify partnership will set another big example of successful co-branding. In this partnership, Spotify subscribers will be getting "reward points" or stars and they will also get to recommend songs to be played in the Starbucks stores.

Now, let's see how co-branding can benefit a small business owner or an e-Commerce business owner as well.

1) Make Your Own Statement:

There is something about being different and thinking out-of-the-box that appeals to the audience. Taking this mantra search for the partners. If you sell the locks then search for the partner who sells keys and not locks. This will benefit both of you. Hang your ego and preset notions on the tree in your backyard. Move forward with a flexible and open mind.

2) Search For The Soulmate

This is not a dating article and it does not intend to be. But no matter how much this concept is considered illusionary, it has it's roots in reality. Similar minds and souls make successful and lasting partnerships. Just like your life-long friends are your soulmates, your brand partners should be just the same. It can be an odd partnership but if you vibe in the same way, go for it!

3) Choose A Valuable Partner

Co-Branding is a very risky business. In fact, it can be riskier than starting your own business if you don't partner with the right brands. Bad partnership can be a call for the dooms day. Therefore, while you make your choice, select the partner who elevates your value. 

It is essential to note that this does not necessarily mean aiming for the big name although it may be a good thing. It actually means, going for the right partner who will be a positive influence on your brand.