As crude oil prices reach record levels, it seems you can’t go a day without hearing two or three people complain about the price of gas or heating oil. Indeed, the surging prices are a source of concern—and sometimes anger—for everybody. Well, almost everybody: while the rest of us suffer at the pump, some people are actually making money off the situation, and it’s not just CEOs of oil companies that are cashing in. Here’s how you can get a share of the oil boom.

Steps

1. Do your due diligence. No matter what you’re investing in, you need to make sure you go into the decision as well informed as possible. Reading an investment’s prospectus is a good start, but your research should not end there. Due diligence is the process of researching an investment before you buy in, and it involves looking at the historical returns on an investment, understanding the terms of the investment, and analyzing its future potential. While no one can know for sure how any given investment will fare in the future, you can make a better guess by being well informed.
2. Think about your risk tolerance. Every investment carries some degree of risk or uncertainty, but some carry far more risk than others. Each person should choose investments based on his or her own risk tolerance, which should be dictated by his or her age and financial situation, the level of diversification in his or her portfolio, and personal preferences. A young person just getting started in investing typically has a greater risk tolerance than a retired person, because the retiree needs a steady income, while the younger investor probably has a steady income and is looking for the greatest return on investment. In addition, the more diversified your investment portfolio, the more risk tolerant you may be, since you stand to lose only a part of your total portfolio if any one investment goes south.
3. Open a brokerage account online or with a local brokerage firm. Most of the investments listed below must be purchased through a stockbroker or through an online brokerage account. Whether you use a stockbroker or go it alone is up to you. A stockbroker generally charges a higher commission, but you can get more advice and develop a personal relationship. Online brokerages vary in their degree of customer assistance and advising, but may be suitable for some investors.
4. Consider your options. There are a variety of ways to profit from high oil prices. Some of them are listed below for your convenience. The list progresses from the theoretically highest risk investment to the lowest risk investment, although the actual risk involved in each type of investment will depend on timeframe and the specific stock, fund, or situation you are investing in. Generalizations of risk level are no substitute for performing due diligence on an actual investment prospect.
   1. Buy an oil well. Obviously, if you own an oil well, your revenues increase as oil prices rise. There are, of course, a lot of operating expenses to be considered before purchasing such an asset, and there is a lot of uncertainty, as well. Wells that produce oil inexpensively and those that have large proven reserves are typically not for sale, and those on the market are outrageously expensive. Beyond producing wells, you can purchase exploratory wells or invest in start-up drilling ventures, but such investments are even riskier than they sound. You’ll need a fair amount of money and a gut of steel to get into this part of the market.
   2. Buy oil futures. Crude oil is a commodity and futures are traded on the commodities market. The market has developed a number of sophisticated financial instruments, but the most common is the futures contract, in which the buyer purchases the obligation and right to sell a certain quantity of a commodity on a certain date in the future. Buying oil futures essentially entails guessing what the price of oil will do down the road, and is extremely risky.
   3. Invest in a commodity exchange-traded fund. Exchange traded funds for commodities are like index funds that track the price of one or more commodities. As with futures, these are risky and depend solely on the price swings of the commodity. They are traded like stocks, however, and thus offer a good deal more freedom in buying and selling. An example of an exchange traded fund (ETF) that tracks the price of crude oil is USO (The United States Oil Fund LP).
   4. Invest in an oil royalty trust. Oil royalty trusts provide the shareholders with distributions on the profits from one or many oil producing operations. The distributions — often called “dividends”, although technically they are distinct from dividends, and must be reported separately on U.S. tax forms — can be staggering: up to 30% per year or more on the investment. Unfortunately the amounts are difficult to predict because any given field’s production is subject to all sorts of uncertainties, not the least of which being that the field’s reserves could be depleted. Some examples of royalty trusts in the United States include PBT (Permian Basin Royalty Trust); BPT (BP Prudhoe Bay Royalty Trust); and TELOZ (the TEL Offshore Trust). In Canada, there are even more, including PWE (Penn West) and HTE (Harvest Energy Trust). An additional advantage of owning trusts, as opposed to other dividend-paying stocks, is that the distributions are often paid out monthly.
   5. Buy stock in supporting players. There are only a few large oil companies that are publicly traded and produce most of the world’s oil, and their stocks are usually quite expensive and do not experience tremendous, rapid fluctuations (either up or down) very often. If you’re looking for something a bit riskier (and potentially more profitable), consider buying stock in the companies that supply Big Oil with its specialized tools and research. Some such companies are quite large and diversified themselves, but many are smaller engineering or tech firms that might land a huge contract for a new technology. Or they might just go bankrupt.
   6. Buy stock in companies engaged in transport of oil. These include companies that own pipelines (such as Constellation Energy in the United States) or oil tankerage firms (including names such as Frontline Ltd. and Nordic American Tankers, both out of Bermuda). Firms such as these also pay large dividends, and their share price typically correlates roughly with the price of crude oil.
   7. Buy stock in an alternative energy company. In the long run, rising oil prices should make alternative energy sources much more attractive. If you want to prepare for this scenario, or if investing in oil leaves a bad taste in your mouth, you can invest in companies that research, design, and produce alternatives to oil. Since it’s hard to say just what will be the big new fuel or fuels of the future, and it’s even harder to say what companies will find the best way of exploiting these fuels, this can be a risky gambit. Ironically, the big oil companies are the biggest players in alternative energy, as well, so don’t overlook them if you’re purely seeking profit from this growing market.
   8. Buy stock in Big Oil. Seven huge oil companies control most of the oil in the world, and their stock prices benefit from record crude prices. What’s more, these companies are large and diversified enough to offer some shelter from sudden drops in oil prices. The stocks are expensive, though, and don’t offer much of a chance for overnight riches. Smaller oil companies offer a bit more risk (and potential return) for more intrepid investors.
   9. Invest in a mutual fund that holds oil company stock. Most mutual funds hold at least one or two oil companies, and many hold stock in some of the supporting companies as well. You’re best off holding a mutual fund for the long haul and choosing a mutual fund on its overall performance and management, rather than on specific holdings, but if you want to bet on oil and expose yourself to a bit less risk, mutual funds may be the way to go for you.
   10. Use less oil. There’s one sure bet on this list, and that’s to reduce your own dependence on oil. Drive less, use mass transit, buy a fuel-efficient car, and improve energy efficiency in your home, and you can partially avoid the burden of rising prices. It may not seem like making money, but remember: a penny saved is a penny earned.
5. Implement your investment as part of a diversified portfolio. It’s old advice, but it can’t be stated enough: the surest way to make money while protecting yourself from the uncertainties of the market is to diversify your investments as much as possible. No one should put all their eggs in one basket.

Tips

• Remember the adage: “Buy low and sell high”? Oil prices are booming now, so everybody wants to get in on the action. But will they stay high, or will they plummet? No one knows, but make sure you come to your own conclusions before investing. One good rule of thumb is that if there’s a “wikihow” about an investment, it means the market is already oversaturated and it’s time to sell.
• If you’re looking to hedge your stock portfolio with commodities, oil probably isn’t the best choice. If the economy takes a downturn, oil demand is likely to decrease, and the price of oil may plummet along with your stocks.

Warnings

• This article is intended for general information only. Do not make investment decisions based solely on this information or any other general source of information.
• Do your own research. Don’t merely trust the advice of others, including your investment advisers. In most cases, if you end up losing money because you weren’t reasonably well informed, you have no one to blame but yourself.
• Beware the tax implications of certain investments. Taxes can be a pain for any investor, but for sophisticated financial instruments, the tax implications can be extraordinarily complicated.

Source

Enjoy

Money Academy

arn money selling oil

]]> http://www.smasra.com/make-money-as-oil-prices-rise/feed/ 2 http://www.smasra.com/3-things-you-must-do-if-you-want-to-create-sales-pages-mini/ http://www.smasra.com/3-things-you-must-do-if-you-want-to-create-sales-pages-mini/#comments Mon, 29 Dec 2008 02:18:22 +0000 Mohammed http://www.smasra.com/?p=307 by: Jim Kelley

Almost everyone I have known since getting on-line five years ago
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1. Hire a professional, do a lot of study time, or use a program
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leads a research group that tests new ideas and reports on
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money online, visit Jim at http://www.seldomrest.com

]]> http://www.smasra.com/3-things-you-must-do-if-you-want-to-create-sales-pages-mini/feed/ 0 http://www.smasra.com/4-tips-to-saving-a-bundle-at-your-next-car-auction/ http://www.smasra.com/4-tips-to-saving-a-bundle-at-your-next-car-auction/#comments Mon, 29 Dec 2008 02:10:32 +0000 Mohammed http://www.smasra.com/?p=305 by: Chris Fox

Many of us have been at the car dealership and have been drained by a salesperson during price negotiations for the purchase of a new car. Most people give in too easily or do not negotiate at all to avoid the dreadful act. This only means more money in the car dealers’ pocket, while you are out of several thousand dollars! Yes, they make that much in profit per car.

This article unveils the dealer’s selling tactics and how you can get around them. But before we dive into the new car buying tips, we need to understand what makes up the dealer’s profits.

In addition to the MSRP (manufacturer suggested retail price), which is the dealer’s cost for the car plus an additional 20-25% profit, a dealer also gets financial incentives from the manufacturer when a new car is sold. This is called Holdback.

Depending on the car, dealers can make hundreds on each car through holdbacks. Dealers also get additional incentives and bonuses on selling a car before the end of the month and/or quarter.

A shrewd dealer can make several thousand on a new car even by selling it at invoice price. This is how new car buying can become tricky for the consumer.

Ready to learn how not to put a dent in your wallet on your next car purchase? Here are four tips to get you started. Each one is a dealer tactic to watch out for.

1. The Guilt Trip

As you may have noticed, every desk in a dealership has photos of the salesperson’s family, instead of photos of cars. Midway in the negotiation, the sales person will bring them up and make it look like his little commission check can hardly pay for his daughters college and little Bradley’s braces.

A seasoned salesperson will soon have you feeling guilty for driving the price down and hurting his commission. Watch out not to fall for this tactic, since you already know about holdbacks and incentive programs from manufacturers.

2. Wearing You Down

Come prepared to spend half a day at the dealership or pay whatever the dealer asks for. Car Dealers are trained to delay and tire you out to the point where you give in and accept their price just to get out of there.

After you make your offer, sales people typically claim they would have to run it by their manager. You may then have to re-start negotiating with the manager, who is also a seasoned salesperson. This dance goes on for a while until you give in.

Remember, there are multiple dealerships in a city, so they need you more than you need them. Demand to speak to the manager after a certain time period or threaten to leave.
Because you are devoting a lot of time to bargain with the dealer, they know you are a serious buyer, so they will not let you leave. The earlier you can speak with the manager, the faster you can leave.

3. The Test Drive

We all enjoy a good test drive and look forward to it. Although it is essential to test drive a car before you buy it, remember to not show your absolute love for the car to the salesperson. Their goal is to get you emotionally attached to the car, so it becomes a must have for you. I have learned it the hard way.

To hide your emotional tears from the salesperson, mention the features of a competing car in the same class, like the new shape, light, leg room, resale value etc. This will make the salesperson a little vulnerable.

4. Monthly Payments

This one is to confuse you. Dealers will start talking about monthly payments rather than the total price of the car. They will start by asking how much you are willing to pay per month and how much of a down payment you are willing to pay. Since people don’t want to look like they cannot afford a certain car, they will usually give a higher number. Big Mistake!

You have left little room for negotiation when this happens. Always steer the conversation to the total price of the car and do NOT mention any trade-ins at this point. Only after the total price of the vehicle is completely negotiated then talk about interest, monthly payment and trade-ins.

General Rule;

As a general rule, remember to only focus and negotiate on the Total Price of the vehicle. Everything else is pretty much the car dealer’s trough.

If the above new car buying tips seem like a lot of hassle, yet you still want to get the best price in town, there are some websites that do this for you. www.autoauctionbids.com for example is a great website for this because you can collect price quotes from multiple local dealers for a particular car as well as its competing car models (like Honda Accord, Toyota Camry and Ford Taurus) and compare them.

The website then allows you to send back the lowest quotes received for each car make to all participating dealers in your area through the website itself.

Dealers view this price and continue to submit new lower prices over a 3 day period. By putting local car dealers in such a price competition allows you to avoid the dreadful face to face negotiation and yet gets you the lowest price in town for up to 3 competing car makes.

The best part about AutoAuctionBids.com is that it is absolutely free for you and there is no obligation to buy after the new car auction is over.

About the author:
For more information on cars and car auction visit http://cheap-car-auction-portal.com

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]]> http://www.smasra.com/4-tips-to-saving-a-bundle-at-your-next-car-auction/feed/ 1 http://www.smasra.com/1-business-building-tool-in-network-marketing/ http://www.smasra.com/1-business-building-tool-in-network-marketing/#comments Mon, 29 Dec 2008 01:52:03 +0000 Mohammed http://www.smasra.com/?p=301 by: Jerry Olthoff

Ever wonder why one person succeeds and another fails in MLM? Or why someone has massive success in a company, then leaves, goes someplace else, and never, ever again duplicates that success? Or why some people spend 5, 10, even 20 years in network marketing with NO success…

Yet they never quit!

Or how an industry that does so many things so wrong can still be so popular …

This Tool Can Change Your Life
On December 12, 2004, our team released the ebook “Success In 10 Steps”, the story of what we have learned from 26 years in MLM.

The feedback has been astonishing.

People say, “I could have written that book!

That was my story.

Why did you steal my story? How could you know exactly what I went through?”

Back in 1991, my mentor was making full-time income from MLM.

He retired from that company and actually joined over 100 network marketing companies in the next few years, to figure out how this industry really works: the good, the bad, the ugly.

Here’s what he did:

1. Got on dozens of company conference calls

2. Organized & categorized companies, products, compensation plans, distributor kits, & marketing materials to compare each company with all the others
3. Studied their business models, to understand what kind of behavior certain business models drove

4. Studied how different “upline gurus” trained (or did not train) their people

This process answered all the mysteries. It also revealed some valuable, valuable secrets about network marketing.

Example #1:

The hard-driving, closing salesperson is about 8% of the population. And those 8% have convinced the other 92% that the 8% are right and the 92% are wrong.

How did they do that?

Because that is what THEY do. It works for them, so they have total confidence they are right, and when you feel their confidence, you KNOW they must be right, so you do what they tell you.

92% of the world’s population is sales-resistant.

They do not like to be sold, and they do not want to become that pushy, aggressive salesperson nobody likes. Yet when they join MLM, some upline leader tells them,
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It still only works for the 8%.

If you let them mesmerize you, you can wander aimlessly in the “failure” desert for years…

Maybe forever.

The Choice Is Yours

You can’t become something you hate in order to be successful. This model works for the 8% who are real salespeople.

It’s a disaster for the rest of us…

A very bad business model.
Example #2:

Every person on the planet has to be educated in the skills of what they’re doing.

Whether you’re a doctor, carpenter, plumber, ditch digger … whatever you are… You’ve got to be taught the skills of that business.

And what “Success In 10 Steps” does for people is, it gets them to realize,

It’s not your fault! The people teaching you didn’t know any better.

They weren’t bad people. They weren’t lying to you intentionally. They just didn’t know any other way to do the business.

Do you think you can wake up one morning and say, “I’m going to be a doctor!”

And you go down and join a company, get a distributor kit for 50 bucks, and you’re a doctor?
Of course not. That’s ludicrous.

How about a carpenter?

No way. You have to learn pitches and square and level and plumb.

You have to be taught the skills. Yet people get in network marketing, and they’re told,

“Call your friends & family.” It’s the biggest fallacy in the industry.

Network marketing is not a sales business.

It’s a teaching & mentoring business.

When you build people, people will build your business. Those upline guru leaders will tell you,
“Well, you didn’t make enough phone calls. You’re a loser. If it’s to be, it’s up to me.” Have you heard all that stuff?

I bet you believed it, too, haven’t you?

Why This Ebook Is Such a Hot Tool For Building Your Business

So the ebook really opens people’s eyes to the fact that they’ve been lied to. You must do your business with people who WANT to be in business with you. You have to sell product to people who LOVE the product and want to buy it. That only comes through target marketing.

We learned early-on about targeted marketing.

Only talk to people who have raised their hand and want what you have.

Well, guess what? EVERY person who downloads “Success In 10 Steps” is trying to figure out why MLM is not working for them. When you call them up, they could be in a company already. They could be working the business a year or 2 or 5, 7, 10 years. But why would they download that ebook?

They’re divulging some critical information. The business is not working for them.
They want to figure out what the problem is. And they’re looking to you for help. THAT is the basis of a long-term relationship, and THAT is the effect you can create with “Success In 10 Steps.”

See for yourself. Download your copy now.

About the author:

Jerry Olthoff lives in Apache Junction, AZ, with his wife, Dr. Nancy Olthoff, and their 2 mini-dachshunds. For years he owned an insurance agency. Now he helps people achieve success in network marketing. Get your complimentary copy of “Success in 10 Steps” at http://drolthoff.bigmlmlies.com/?mad=2823
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