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[T895]Three Different Types Of Volcanoes

by Michael Press, Mic

Capital Gains - When you buy a stock, and sell it for a higher price, you have made a capital gain. If you buy a house and then later sell it for a profit, you have made a capital gain. If you buy an antique at a low price and then sell it for a nice profit, you have made a capital gain. Capital gains are not passive income. They are a one-time payment that you receive from an investment because your investment has increased in value. Investing for Capital Gains is great because you can keep your money moving, instead of just letting it sit in the bank. The government loves to tax capital gains, especially if you bought and sold your investment in less than one year. Lets say you buy a stock, and the stock doubles in price during the week so you decide to sell it. You've made a nice capital gain, but the government could take as much as 35% on that capital gain, depending where you are in the income-tax bracket. If you hold onto your investment for a year or more, the government rewards you with a more favorable capital gains tax rate.

Passive Income - Passive income is payments that you receive from the assets you have created. These payments usually come monthly, and require little or no work for you to receive them. Some types of assets that produce passive income are rental properties, dividend stocks, and businesses. Assets that produce passive income continue to do so until the asset is liquidated (sold). Passive income is what makes a person rich. If a person has more than enough passive income to cover his or her expenses, that person is rich.

Earned Income - Earned income is the primary source of income for most American's today. Any type of job that pays an hourly wage, pays earned income. People who rely only on earned income, pay the most taxes. Federal, State, Unemployment, Social Security, and Medicare taxes are all deducted from a persons paycheck. With passive income and capital gains, the types of taxes you pay (if you have to pay any at all) depend on your investment. Earned income is not necessarily a bad thing. Having a job or career is a great way to earn the capital required in order to create assets.

Almost everyone who starts his or her own journey to financial freedom begins with earned income. Relying solely on earned income should be temporary. In America today, many people rely on earned income alone, and saving most their earned income for many years until they retire. The path to financial freedom requires making the transition from relying on earned income, to passive income

I've heard it argued that if you're provided with an e-book, it's not a scam. It doesn't matter how good the e-book is. It you've been given a product in return for your money, it's not a scam.

I disagree. I believe that a scam is, quite simply, an attempt to get someone to pay money by being in some way dishonest. This can involve a great range of things, but when it comes to affiliate marketing I have divided into three main categories. I outline them below.

The first is the most obvious: when someone lies about what you will receive for your money. They might claim to give away a free website, only for none to appear when you've given up your money. It might be bonus e-books, or a video course that you never get to watch.

Whatever it is, it's clearly dishonest. This is the easiest type of scammer to catch. By lying about what they offer, they are breaking the law, and there are many genuine affiliate marketers out there ? including myself ? that wouldn't hesitate to report them.

Sometimes, they are a bit more subtle. For example, claiming that with the information they give you can start making money in minutes without doing any work at all. If anyone has ever found a program that can really tell you how to do this, please send it to me! Claims like this are clearly impossible, and yet are often written in such a way that they seem completely convincing ? and can lead to thousands of people giving their money away.

A second type of scam can also be easily caught. Some scammers, rather than writing their own material, simply sell other peoples. I have seen e-books sold that are nothing more than collections of articles taken off free article directories. The information might be useful ? but this is also illegal. It is plagiarism, plain and simple.

That's not the only way it can be done. A scammer might find an e-book written by a genuine affiliate marketer and edit out the author information. They then insert their own name in place of the real author's. Again, the information might be good. Again, this is illegal: plagiarism.

A third type is more subtle, and therefore easier to get away with. Many scammers will quite simply sell information that is either useless, inaccurate, or available elsewhere for free.

One of the difficult points if that they might not be aware that they are, in effect, scamming people. They might genuinely believe that the information they are offering is helpful. It could just be that they are a very poor writer, or that they are unable to explain what they mean clearly enough to help others. They could have the best intentions in the world, but if they are asking for money for information that is worthless, they are scamming you. After all, it is their responsibility to make sure their product is good enough.

They might also take amusement from the idea of selling inaccurate information. Sad as it is, some people are like they: they enjoy the idea of hurting or annoying other people. They ask for money, and give information they know is bogus. The result is that people who try to follow it could end up losing even more.

Or there could be another, more innocent reason. They might have decided that selling an e-book on affiliate marketing would be a great way of making money ? without actually knowing anything about affiliate marketing. They therefore write the best e-book they can, but because of their lack of any practical experience it is useless.

Finally, there are those who try to make money by selling information you could get for free elsewhere. I saw an excellent example of this just a few days ago: a site offering to sell you a list of legitimate affiliate marketing opportunities! No doubt, after you buy it you are presented with a list of affiliate links to make him even more money with. There are plenty of websites that review genuine affiliate marketing programs, and they do it for free. The same goes for other types of information. If someone thinks they can convince you to buy something, they will ? many people are too lazy to pause and search to see if they can find it free elsewhere.

Scammers need to be stopped. They are making money through illegal and dishonest methods that hurt the entire affiliate marketing community. The best way to get rid of them is to hit them where it hurts: their wallets. Before you buy, always make sure a site is genuine. Don't be their next victim.

Article Source : Pg. 23

About Author

Both Michael Press & Anita Buchan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Michael Press has sinced written about articles on various topics from Personal Finance, Site Promotion. Michael Press is an investor and teenage entrepreneur. He currently owns and operates , a free website with articles about how to bu. Michael Press's top article generates over 590 views. to your Favourites.

Anita Buchan has sinced written about articles on various topics from Affiliate Programs, Affiliate Programs and Online Surveys. Anita Buchan is a full-time affiliate marketer who now wants to help others earn the same money she does. For reviews of genuine affiliate marketing opportunities and free resources visit. Anita Buchan's top article generates over 2900 views. to your Favourites.