January 13th, 2010 Wray
If you have kiddos, here are ten things the IRS wants you to consider when preparing your taxes this year.
- Dependents In most cases, a child can be claimed as a dependent in the year they were born.
- Child Tax Credit You may be able to take this credit on your tax return for each of your children under age 17
- Child and Dependent Care Credit You may be able to claim the credit if you pay someone to care for your child under age 13 so that you can work or look for work.
- Earned Income Tax Credit The EITC is a benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund.
- Adoption Credit You may be able to take a tax credit for expenses paid to adopt a child.
- Children with Earned Income If your child has income earned from working they may be required to file a tax return.
- Children with Investment Income Under certain circumstances a child’s investment income may be taxed at the parent’s tax rate.
- Coverdell Education Savings Account This savings account is used to pay qualified educational expenses at an eligible educational institution. Contributions are not deductible, but qualified distributions generally are tax-free.
- Higher Education Credits Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credit are tax credits that reduce your federal income tax dollar-for-dollar, unlike a deduction, which reduces your taxable income.
- Student Loan Interest You may be able to deduct interest you pay on a student loan. The deduction is claimed as an adjustment to income so you do not need to itemize your deductions.
Simple online bookkeeping with Outright: Get started now or subscribe to the blog.
January 12th, 2010 Jennifer
When an organization needs fundraising, they hire a fundraiser. When they need publicity, they hire a public relations consultant. Rarely do they get two for the price of one – until they meet Sonia Wilson. The New York City-based fundraising and PR consultant has made a career out of combining two disciplines that have much in common, but do not traditionally go together.
Wilson’s passion is for publicizing and empowering brands she believes in. She got her love of public relations from her mother, a registered nurse, who imparted to her the values she runs her business by – integrity, common-decency, character and education. Wilson realized she would base her business on those values after her daughter came home one day from her internship at a PR firm with a startling admission, “I don’t like working for these people because they lie too much.” Said Wilson, “It was like a light bulb went off in my head. She was right. Many PR people try to project, at any cost, the ‘proper’ image. My focus is to make sure that I can be held to my word. So if I say that my client serves its food in biodegradable products, I mean it. I won’t put my reputation or that of my client on the line just to get some kind of publicity.”
The fact that Wilson’s services fill a unique niche has helped her succeed in her business. For example, when planning a fundraising event, she can call on a PR contact to book a newsworthy keynote speaker, thus ensuring her client donations and media attention. Also, the fundraising aspect of Wilson’s business ensures that she is able to work with non-profits that share her goals. Her clients include Medgar Evers College, and GirlsBlossom.org, a Brooklyn based non-profit that helps at-risk girls succeed. She also represents professional organizations such as the National Bar Association.
But, says Wilson, it’s easy for a consultant or sole-proprietor who publicizes her client list to get pigeonholed. For now, the social and community non-profits she works with are related to minorities, but in the future plans to market her services to non-profits of all stripes in order to diversify. “Like an actress, I want to go mainstream,” Wilson says.
For aspiring publicists, Wilson says this, “You have to really care to be a publicist. You can’t be in it for the money. Money is a byproduct of quality work or service delivered. The minute your focus becomes the money, that’s when you fall short. Your focus needs to be on creating value and making yourself indispensible to this client.” She adds, “And don’t do something just because someone else is doing it. Find your passion. Work hard.”
Sonia is a tenacious and compelling publicist and fundraiser representing: Youth Empowerment Mission, Metropolitan Black Bar Association, National Bar Association, Medgar Evers College, New York Association of Black Journalists, United States Tennis Association Eastern Section and The Network Journal. She has handled fundraising for Legal Services of New York and publicity-community education for NYC Department of Health Diabetes Prevention and Control Program. She executes publicity, fundraising, corporate sponsorship sales for clients’ awards events; while securing media coverage, gift bag items, keynote speakers, event hosts, honorees, celebrity appearances and entertainment.
January 11th, 2010 Akilah
Social media is a great tool for baiting. Yes, clever teaser sentences followed by a shortened URL may be enough to get visitors clicking over to your site, but the point is to get them to take action, which likely means BUYING OUR PRODUCT/SERVICES.
Social media is like an all-access pass to the party. Everyone’s invited, and all party people are free to mix and mingle. Isn’t that wonderful?! Um, yes, but eventually, you’ll get thirsty, and access to the bar (if even just for a bottled water!) requires more than a pass to make it through to the end of the party. The point of it all is for us to get paying customers, the people who will purchase our wares and keep us in business. So how, how, how, do we get them to stop oohing and aahing over our witty tweets and well-thought out posts, and B-U-Y?
A great Web site and an awesome portfolio are integral pieces of the puzzle, but there’s more to it…there’s that small issue of proof.
What are some means of proving to our customers that we are reputable good guys who are worthy of their almighty dollar?
One important step in the direction of our desired results may very well be to capture why they leave without buying, or at least subscribing to our site. Want some free tools to help you figure it out? Check out Conversion Rate Experts’ blog post HERE.
Now that we have an idea of what’s pushing them away, we’ll work to fix that. The next step is to make sure that we and our customers are speaking the same language. Wondering what that means? It’s all about the language of perception, and SmallFuel Marketing talks about targeting through language HERE. Check it out.
Don’t forget about the value of great copy! A great design company should have a couple of dynamic copywriters who can take the words on your shiny new site from blah to Pow! Here’s some perspective on how to make people want your products/services.
One of my favorite blogs, DoshDosh, has a blog post that tops my list of absolute must-read advice in the area of turning your audience from potential purchasers to confirmed clients. The post offers insight on the elements that influence online behavior, as well as eleven tips you could implement on your Web site today! Check out DoshDosh’s research results HERE.
What methods have you found successful? How have you converted your visitors to clients? Happy converting!
January 11th, 2010 Jennifer
When Amy Brimicombe worked at a sports charity, dealing daily with the spouses of professional sports players, she got a chance to see a whole new side of the sporting industry, one that few people ever even take the time to contemplate – the untold story of pro sports spouses. Working with pro sports spouses taught her that celebrity, especially for families, isn’t all big houses and fancy cars. “It’s actually very isolated world,” Brimicombe said.
Two years ago, when she was casting about for a business idea, Brimicombe asked herself, “What’s fresh out there?” Combining the sound business practice of filling a new niche with her own experience working with the spouses of pro sports players, Brimicombe dreamed up CelebritySpouses.net, a social network for the spouses of celebrities in the pro sports, film and television, and music industries.
“[Celebrity spouses] lose their identity,” Brimicombe said. “Your high school friends don’t understand it. Your family doesn’t understand it. When [people] pay any attention to you at all it’s because they are trying to get to your spouse. There’s no roadmap for a celebrity spouse.” CelebritySpouses.net is a way for the unsung heroes in celebrity marriages to connect with other people who understand the particular demands of their highly specific world. In fact, Brimicombe intentionally chose the name Celebrity Spouses because of its double meaning. Though the users of her social network are the spouses of celebrities, the celebrities at CelebritySpouses are – you guessed it – the spouses themselves. “Everyone should be a celebrity in their own home,” Brimicombe said.
Brimicombe’s community stays relevant to her audience because she is constantly up on the latest trends. Though when many people think celebrities they think “Lifestyles of the Rich and Famous,” Brimicombe is well aware that the majority of pro sports players end up divorced and bankrupt within 5 years of ending their careers. In response to that sobering statistic, and to the plethora of financial scammers who constantly prey on celebrities flush with new money, Brimicombe handpicks financial advisors and other service providers to recommend to her community members. She also invites experts to contribute informational articles relevant to celebrity spouses and families. For example, did you know that those houses every pro sports player promises to buy their mother are subject to a 45% gift tax? Brimicombe does, and she makes sure her network knows it, too.
As for her advice for new small business owners, Brimicombe has one word – flexibility. “Don’t think what happened yesterday will happen today, because it will not,” said Brimicombe. When she first conceived CelebritySpouses.net, it was merely a website. Within months, it had evolved into a social network. Even today Brimicombe is constantly rewriting her business plan and updating her revenue model to flow with the direction her social media network is taking. Her second piece of advice to new business owners is to know the industry. And for social network owners like herself, she recommends David Silver’s The Social Network Business Plan: 18 Strategies that Will Create Great Wealth.
As for her plans for CelebritySpouses.net, Brimicombe wants to take her social network to where her audience is – on the road. She plans to launch a mobile version of CelebritySpouses.net soon so that her audience can connect and meet in person when traveling or moving to a new city.
And last but not lease, for those of us simply wondering how the other half lives, we’re out of luck – CelebritySpouses.net is invitation only and tightly regulated!
Recognizing the unique needs of the spouses and partners of Entertainment Industry people, CelebritySpouses.net founder and CEOAmy Brimicombe, formerly of the Pro SportsWivesAssociation and Magazine, has created an online social and informational haven for those who are often just a step outside of the glare of the spotlight
January 11th, 2010 Linda
In the wonderful downtime just after New Year’s Day, I found myself listening to the January 1st edition of the NPR Science Friday podcast. It was utterly fascinating for me as a small business owner and online retailer. The podcast features Ira Flatow interviewing William Poundstone, the author of Priceless: The Myth of Fair Market Value (and How To Take Advantage of It). Poundstone, who refers to retail prices as a collective hallucination, unveils some of the psychological tricks used by retailers to encourage consumers to buy. And while the information presented was targeted at educating consumers, I got a lot of important tips about setting prices as well. And a lot to think about.
- $.99 Sales: Poundstone talked about the hypnotic effect of items priced at ninety-nine cents - the magic number – and I was surprised to learn from him that the profit margin of dollar stores is twice that of Walmart. Those of us who sell on eBay know the appeal of the ninety-nine cent auction and the kinds of strong it can draw to our higher-priced items.
- Anchoring: Conversely, having one or two items in your online – or brick and mortar - store that are very much overpriced can help to make all of your other items look like bargains in comparison.
- Ends in Nine: Poundstone cited the well-known practice of ending prices in a nine, such as $12.99 instead of $13.00, but mentioned further that research shows that when the same item is priced at $39.99 vs. $34.00, for example, consumers are still more likely to purchase the product at $39.99. Wow!
- Double the Price: Poundstone and some retailers who called into the show talked about the practice of doubling prices and then offering a fifty percent discount, reminding listeners that consumers gravitate toward perceived bargains. (I would love to get advice from anyone who has done this successfully. I have tried raising prices and then offering discounts, but can’t get past how manipulative it makes me feel.)
- Raising Prices: Several retailers who called in mentioned that when it comes to prices, particularly when it comes to high-end items, sometimes pricing higher is better. One retailer mentioned that his low prices on gemstones lost him sales, since consumers questioned their authenticity and/or quality. When he raised his prices, his sales went up substantially. We have found this is true for our online sales as well, even though most of our items are moderately priced. Being the lowest priced item isn’t always the best strategy, even when it comes to attracting über bargain hunters like eBay shoppers.
Setting prices can be one of the most important and challenging parts of your business and of your marketing strategy. I just found out that one of my wholesale distributors is raising prices on their entire line for 2010. Sadly, price inflation is to be expected, but it doesn’t make it any less exasperating. Not only does the increased price of the items mean a higher up-front cost for my business, but now I must calculate what, if anything, this increase in wholesale price is going to mean for the retail prices that I set for these same products. In addition to the mix of information I got from the Science Friday podcast, here are a few things I will keep in mind as I set my prices for 2010:
- When setting prices, remember to keep in mind the total price of your item including overhead, packing materials, shipping costs, eBay, PayPal, Amazon fees, etc. and your time;
- Learn from the experience of others. There are lots of tips you can use to set your prices, including remembering that customers are not always looking for the lowest price;
- Use a profit margin calculator to help you determine appropriate markup. Or create your own profit margin template with your own unique specifications (fees, shipping costs, etc.) by using a simple excel spreadsheet;
- Remember to use your experience, both as a retailer and as a consumer. I always have to remember to don my consumer cap on when I am setting prices. Experience is a wonderful, though not infallible resource.
What strategies do you use to set prices?
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