Category: Finance

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Finance Technology

Make Passive Income Selling Digital Products Online

So you’re looking for a side hustle. Who doesn’t want some extra money for rent or a new car?

There are two kinds of products you can sell online: physical and digital products. Physical products are just that: something that you can actually touch—smartphones, T-shirts, mugs, and more. Digital products are those that don’t need to be delivered to your customers’ homes such as eBooks, training videos, online games, or even graphic design.

We’re going to focus on selling digital products. We’ll walk you through the different types of digital products you can sell and exactly how you can start selling.

Benefits of Selling Digital Products Online

The gig economy is gaining its footing among millennials as it can be an easy and simple way to get some extra money without having to quit your day job. Read on to learn more about it and how you can get a piece of the action.

Did you know that as of 2017, 44 million Americans are reported to have a side hustle? People aged 18 to 36 are earning themselves some extra money aside from the income they receive from their 9 to 5 jobs. A considerable chunk of them, about 36%, earn at least $500 a month from side hustling.

If you’re thinking of creating an online business, side hustling can be a good starting point as it lets you test the waters. Side hustling can give you freedom as you can work only on things that you are passionate about, on your own sweet time. And since consumers are spending more time and money online, the potential is huge!

What are the Types of Digital Products?

The big difference between physical and digital products is the amount of work involved when managing your side hustle. We all know that selling physical products can mean coordinating with courier services, inventory management, product development, and more.

In general, if you want an easy side hustling venture that’s convenient and simple, selling digital products online is highly recommended for its many advantages. Here are some of the most viable digital products you can sell online:

eBooks

Self-publishing has become big nowadays as it gives a chance to budding, yet talented writers that can’t get into traditional publishing. If you don’t know anything about writing code but have a knack for the written word, then selling eBooks is for you. Not only can you pursue your passion for creating the next bestseller, but you’re also making money as well.

Graphic Design

If writing isn’t your thing, designing logos, icons, letterheads, and many others can be your niche. There is a great demand for artwork that businesses can use for their marketing strategies. You can create templates or customized work and sell them online for entrepreneurs or people who just love to buy art.

And if you are skilled at acquiring clients but not at designing, hire a freelance graphic designer to help you with the workload. You get the clients and your freelance partner gets the work done. Just be sure that you’re charging enough to make at least 50% profit from the split.

Software

If you are adept at writing code, you’re one step ahead. The software industry is seeing a lot of growth opportunities. The markets are already established and a clamor for useful software that you can turn into profits. Desktop software, mobile apps, or web-based apps are the most feasible to sell online as they provide value to customers and continuous earnings for you.   

Training Courses

If you’re knowledgeable in your chosen field of industry, you can sell training courses online. eLearning is a growing industry and even established institutions are getting on the bandwagon. Make yourself stand out from the rest by adding more value. For example, if you love knitting and cats, you can create an online course on how to knit cat sweaters and offer it to the knitting and cat communities.

Music and Audio

Whether it’s for entertainment or communication purposes, music is an excellent product to sell online. You can create soothing music, background noises, original songs, or even karaoke versions of popular songs. Then, you can hum your way to the bank.

Professional Services

Website design, translation, coaching, proofreading, or consultancy are some of the services you can sell online. Find the best method of showcasing your offering (website, social media, email, etc.) and find the clients in need of your services. In this case, you’re using a digital method to sell your time in exchange for an output.

Photography

Selling your photos online can be a great money-making side hustle. Website owners and bloggers use stock photos. By providing them with your photography, you can make a fun and profitable business. You’ll gain recognition as a photographer and your photos are almost guaranteed to be used frequently. You can also take in commissioned photos for businesses that can afford to pay for customized images.

How to Start Your Side Hustle

There are many more digital products you can sell online so don’t limit yourself to the ones listed above. As long as you have the determination to start a side hustle, you can start one and reap its benefits.
Here are a few tips to start yours:

Define Your Goals

Before you begin your side hustle, you need a clear definition of your goals. Determine what your expected outcome is and work your way from there. Do you want to forego your 9-5 job and work at home? Or do you just want an outlet for your artistic pursuits? Knowing what you want out of it will determine how you’ll go about your business.

Identify Your Skills

You can’t sell vocal training videos if you can’t carry a tune even if your lifelong dream is to become the greatest singer that walked the earth. Be realistic with your skills and identify where you’re really good at. With millions of people selling their wares online, you need to be competitive enough to create your space in the digital world.

Get Validation

One paying customer is all you need to get the validation for your side hustle to work. This will prove that the product or service that you’re selling has a market. Your business won’t move forward or may even fail if there is no one willing to buy it.

Stand Out from the Rest

Even if you see a thousand other people selling the same product like yours, add a twist to it to make it your own. It’s a good idea to keep tabs of what your competition is doing. You want to outperform them. 

Final Thoughts

Launching your store can be an exciting challenge and a fruitful one if it starts providing you with enough to let go of your day job. Once you build a strong foundation for your side hustle, you can easily turn it into something more stable and profitable to allow you the freedom and benefits of having a business that sells.

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Finance

Top 10 Questions to Ask When Interviewing CPA Firms

When it comes to considering a tax firm, you may find yourself struggling to come up with what questions to ask, which services to consider, and how to determine what are the appropriate fees.  Here are some key considerations to keep in mind as you’re going through the process:

  1. What Services Do They Offer?

Your search for a CPA Firm may arise because of a specific need, but since you’re going through the process of vetting firms already, you should take this time to get a better understanding of all the services offered. Your personal and/or business needs may change, resulting in the need for additional services.

  1. Fees

It is very important to get a full understanding of how the firm charges fees. Are they charging you each time they speak with you? Do they only charge for the services they perform? Having a clear understanding of this at the onset will be hugely beneficial as you’re budgeting for the cost.

  1. Credentials and Certifications

There are some firms that can help with the tax advising and planning side, but depending on the level of sophistication needed for your personal and business matters, it may make sense to ensure that the firm has Certified Public Accountants (CPAs) and, if necessary, Master’s in Taxation (MT).

  1. Do You Feel Comfortable with the Team?

You may be wondering why this matters. Truth is that it matters A LOT! You’re sharing your personal finances and relevant information about your business with this person. You want to make sure you’re doing so with someone who is not only capable, but someone you trust.

  1. Accessibility

How quickly do you get a response? This is important, especially during peak season for CPA Firms. If your point person isn’t able to take your call, do you have other points of contact on the team?

  1. Ease of Working with Your Other Service Partners

This one is often overlooked or understated. Tying this in with number 4 above, your tax advisor should definitely be someone you trust since this person will very likely be interacting very closely with your other service providers, such as your lawyers, money managers, and business partners. 

  1. Comprehensive Planning

This may not be a need on day one, but whether the services needed are for your personal or business needs, you may want to consider a firm that has the ability to not only prepare your returns, but also provide tax planning solutions and strategies for the future.

  1. Versatility

Although this may not be a requirement, it would be helpful to have firms that specialize in certain services (i.e. forensic accounting) or have expertise in a specific industry, such as manufacturing or industrials.  Again, this may not be a dealbreaker in your decision-making but it could be a huge plus, especially if your circumstances require specific needs.

  1. Access to Other Services Providers

This one is also often overlooked as a key consideration when interviewing CPA Firms.  When you think about your core team of service providers, your CPA is definitely on that list.  As you’re considering a law firm or money manager, it would be hugely beneficial for the CPA Firm to have a robust network of lawyers and financial advisors, insurance providers, and other service providers that they could refer to you.

  1. Successors

The harsh reality is that nothing lasts forever. People move onto other firms, some retire, and other circumstances may arise that may result in a change to your primary point of contact. Rather than starting the process all over again, it would be a huge advantage to you to ensure that there is a successor in place working alongside your point of contact for continuity, and of course, familiarity.

Categories
Finance

Interviewing Money Managers? Top 10 Questions You Should be Asking

The process of interviewing money managers could be a daunting one, particularly if this is your first time entrusting another person with the oversight of your hard-earned money!  Here’s a list of some 10 questions you should consider asking:

  1. Are you acting as a fiduciary? 

This should be one of your very first questions (if not the very first). You want to make sure that your advisor is acting in your best interest.

  1. Tell me about your background. How do you work with clients? Give me a sense for what your clients look like.

Of course, you should learn more about the advisor’s background, credentials, and interests. Not only do you want to make sure that the advisor is qualified to do the job, but you also want to make sure there’s a good personality fit. During this conversation, it also makes sense to get a better understanding of the existing clients he or she currently works with.  Does it appear that he or she has the ability to advise on a multitude of different scenarios? Is there diversity amongst his or her clientele? Do you think you would be a good addition to the clientele?

  1. What is the way in which you invest money?

The advisor’s response should provide you with insight on their investment philosophy, their offerings, and how they factor in risk, volatility, and of course, your personal goals and objectives.

  1. What makes you and your firm different from others?

The reality is that investments is a commoditized business.  You have to identify what are some non-negotiables for you.  Ideally, you’re hiring an advisor that you hope to have a longstanding relationship with.  This person will ultimately meet other members of your family. Be prepared to look for some key differentiators the sets the advisor apart from others.

  1. How many clients do you currently have?

The number of clients is important. It gives you an idea of their capacity and their ability to provide you with time and attention.

  1. What are some of the services I should expect to receive from you?

Depending on the size of the firm, the services could very limited or, in cases where you’re interviewing a large institution, their services could be more than what you need presently. It is good to ask. As circumstances in your life changes, it is good to know how your advisor and the firm could be helpful in the future.

  1. Who are other members of your team?

It is helpful to know all members of the team and the role each plays in your relationship.  If you are unable to reach your advisor, particularly in an emergency situation, you should have the contact information for others on the team.

  1. How often will we meet?

Getting an understanding of how often you plan to speak to your advisor is always a great idea. It makes sense to set a precedent early on and establish the frequency of meetings.

  1. How are you compensated?

This one may seem like a weird one, it is one that is often overlooked during the vetting process. It is always good to full have transparency on how advisors get paid.  Depending on the firm, some advisors are paid an annual salary, plus a discretionary bonus, while advisors at other firms are paid a percentage commission based on the assets the manage.  It is always a good idea to have a full understanding, particularly as you’re vetting managers, to have full transparency on how they’re paid.

  1. What is your fee?

Understanding the fee you’re paying is a critical piece to your decision making.  Sometimes the fee discussion can get a little involved and confusing, so it makes sense to have a clear picture of the fees you’ll be paying to the advisor, plus the underlying fees you’re paying for each of your investments.