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INTRODUCTON – The term “health insurance” is commonly used in the United States to describe any program that helps pay for medical expenses, whether through privately purchased insurance, social insurance or a non-insurance social welfare program funded by the government. Synonyms for this usage include “health coverage,” “health care coverage” and “health benefits” and “medical insurance.” In a more technical sense, the term is used to describe any form of insurance that provides protection against injury or illness.In America, the health insurance industry has changed rapidly during the last few decades. In the 1970′s most people who had health insurance had indemnity insurance. Indemnity insurance is often called fee-forservice. It is the traditional health insurance in which the medical provider (usually a doctor or hospital) is paid a fee for each service provided to the patient covered under the policy. An important category associated with the indemnity plans is that of consumer driven health care (CDHC). Consumer-directed health plans allow individuals and families to have greater control over their health care, including when and how they access care, what types of care they receive and how much they spend on health care services.These plans are however associated with higher deductibles that the insured have to pay from their pocket before they can claim insurance money. Consumer driven health care plans include Health Reimbursement Plans (HRAs), Flexible Spending Accounts (FSAs), high deductible health plans (HDHps), Archer Medical Savings Accounts (MSAs) and Health Savings Accounts (HSAs). Of these, the Health Savings Accounts are the most recent and they have witnessed rapid growth during the last decade.WHAT IS A HEALTH SAVINGS ACCOUNT?A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States. The funds contributed to the account are not subject to federal income tax at the time of deposit. These may be used to pay for qualified medical expenses at any time without federal tax liability.Another feature is that the funds contributed to Health Savings Account roll over and accumulate year over year if not spent. These can be withdrawn by the employees at the time of retirement without any tax liabilities. Withdrawals for qualified expenses and interest earned are also not subject to federal income taxes. According to the U.S. Treasury Office, ‘A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care.HSA’s enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.’ Thus the Health Savings Account is an effort to increase the efficiency of the American health care system and to encourage people to be more responsible and prudent towards their health care needs. It falls in the category of consumer driven health care plans.Origin of Health Savings AccountThe Health Savings Account was established under the Medicare Prescription Drug, Improvement, and Modernization Act passed by the U.S. Congress in June 2003, by the Senate in July 2003 and signed by President Bush on December 8, 2003.Eligibility -The following individuals are eligible to open a Health Savings Account — Those who are covered by a High Deductible Health Plan (HDHP).
- Those not covered by other health insurance plans.
- Those not enrolled in Medicare4.Also there are no income limits on who may contribute to an HAS and there is no requirement of having earned income to contribute to an HAS. However HAS’s can’t be set up by those who are dependent on someone else’s tax return. Also HSA’s cannot be set up independently by children.What is a High Deductible Health plan (HDHP)?Enrollment in a High Deductible Health Plan (HDHP) is a necessary qualification for anyone wishing to open a Health Savings Account. In fact the HDHPs got a boost by the Medicare Modernization Act which introduced the HSAs. A High Deductible Health Plan is a health insurance plan which has a certain deductible threshold. This limit must be crossed before the insured person can claim insurance money. It does not cover first dollar medical expenses. So an individual has to himself pay the initial expenses that are called out-of-pocket costs.In a number of HDHPs costs of immunization and preventive health care are excluded from the deductible which means that the individual is reimbursed for them. HDHPs can be taken both by individuals (self employed as well as employed) and employers. In 2008, HDHPs are being offered by insurance companies in America with deductibles ranging from a minimum of $1,100 for Self and $2,200 for Self and Family coverage. The maximum amount out-of-pocket limits for HDHPs is $5,600 for self and $11,200 for Self and Family enrollment. These deductible limits are called IRS limits as they are set by the Internal Revenue Service (IRS). In HDHPs the relation between the deductibles and the premium paid by the insured is inversely propotional i.e. higher the deductible, lower the premium and vice versa. The major purported advantages of HDHPs are that they will a) lower health care costs by causing patients to be more cost-conscious, and b) make insurance premiums more affordable for the uninsured. The logic is that when the patients are fully covered (i.e. have health plans with low deductibles), they tend to be less health conscious and also less cost conscious when going for treatment.Opening a Health Savings AccountAn individual can sign up for HSAs with banks, credit unions, insurance companies and other approved companies. However not all insurance companies offer HSAqualified health insurance plans so it is important to use an insurance company that offers this type of qualified insurance plan. The employer may also set up a plan for the employees. However, the account is always owned by the individual. Direct online enrollment in HSA-qualified health insurance is available in all states except Hawaii, Massachusetts, Minnesota, New Jersey, New York, Rhode Island, Vermont and Washington.Contributions to the Health Savings AccountContributions to HSAs can be made by an individual who owns the account, by an employer or by any other person. When made by the employer, the contribution is not included in the income of the employee. When made by an employee, it is treated as exempted from federal tax. For 2008, the maximum amount that can be contributed (and deducted) to an HSA from all sources is:
$2,900 (self-only coverage)
$5,800 (family coverage)These limits are set by the U.S. Congress through statutes and they are indexed annually for inflation. For individuals above 55 years of age, there is a special catch up provision that allows them to deposit additional $800 for 2008 and $900 for 2009. The actual maximum amount an individual can contribute also depends on the number of months he is covered by an HDHP (pro-rated basis) as of the first day of a month. For eg If you have family HDHP coverage from January 1,2008 until June 30, 2008, then cease having HDHP coverage, you are allowed an HSA contribution of 6/12 of $5,800, or $2,900 for 2008. If you have family HDHP coverage from January 1,2008 until June 30, 2008, and have self-only HDHP coverage from July 1, 2008 to December 31, 2008, you are allowed an HSA contribution of 6/12 x $5,800 plus 6/12 of $2,900, or $4,350 for 2008. If an individual opens an HDHP on the first day of a month, then he can contribute to HSA on the first day itself. However, if he/she opens an account on any other day than the first, then he can contribute to the HSA from the next month onwards. Contributions can be made as late as April 15 of the following year. Contributions to the HSA in excess of the contribution limits must be withdrawn by the individual or be subject to an excise tax. The individual must pay income tax on the excess withdrawn amount.Contributions by the EmployerThe employer can make contributions to the employee’s HAS account under a salary reduction plan known as Section 125 plan. It is also called a cafeteria plan. The contributions made under the cafeteria plan are made on a pre-tax basis i.e. they are excluded from the employee’s income. The employer must make the contribution on a comparable basis. Comparable contributions are contributions to all HSAs of an employer which are 1) the same amount or 2) the same percentage of the annual deductible. However, part time employees who work for less than 30 hours a week can be treated separately. The employer can also categorize employees into those who opt for self coverage only and those who opt for a family coverage. The employer can automatically make contributions to the HSAs on the behalf of the employee unless the employee specifically chooses not to have such contributions by the employer.Withdrawals from the HSAsThe HSA is owned by the employee and he/she can make qualified expenses from it whenever required. He/She also decides how much to contribute to it, how much to withdraw for qualified expenses, which company will hold the account and what type of investments will be made to grow the account. Another feature is that the funds remain in the account and role over from year to year. There are no use it or lose it rules. The HSA participants do not have to obtain advance approval from their HSA trustee or their medical insurer to withdraw funds, and the funds are not subject to income taxation if made for ‘qualified medical expenses’. Qualified medical expenses include costs for services and items covered by the health plan but subject to cost sharing such as a deductible and coinsurance, or co-payments, as well as many other expenses not covered under medical plans, such as dental, vision and chiropractic care; durable medical equipment such as eyeglasses and hearing aids; and transportation expenses related to medical care. Nonprescription, over-the-counter medications are also eligible. However, qualified medical expense must be incurred on or after the HSA was established.Tax free distributions can be taken from the HSA for the qualified medical expenses of the person covered by the HDHP, the spouse (even if not covered) of the individual and any dependent (even if not covered) of the individual.12 The HSA account can also be used to pay previous year’s qualified expenses subject to the condition that those expenses were incurred after the HSA was set up. The individual must preserve the receipts for expenses met from the HSA as they may be needed to prove that the withdrawals from the HSA were made for qualified medical expenses and not otherwise used. Also the individual may have to produce the receipts before the insurance company to prove that the deductible limit was met. If a withdrawal is made for unqualified medical expenses, then the amount withdrawn is considered taxable (it is added to the individuals income) and is also subject to an additional 10 percent penalty. Normally the money also cannot be used for paying medical insurance premiums. However, in certain circumstances, exceptions are allowed.These are -1) to pay for any health plan coverage while receiving federal or state unemployment benefits.
2) COBRA continuation coverage after leaving employment with a company that offers health insurance coverage.
3) Qualified long-term care insurance.
4) Medicare premiums and out-of-pocket expenses, including deductibles, co-pays, and coinsurance for: Part A (hospital and inpatient services), Part B (physician and outpatient services), Part C (Medicare HMO and PPO plans) and Part D (prescription drugs).However, if an individual dies, becomes disabled or reaches the age of 65, then withdrawals from the Health Savings Account are considered exempted from income tax and additional 10 percent penalty irrespective of the purpose for which those withdrawals are made. There are different methods through which funds can be withdrawn from the HSAs. Some HSAs provide account holders with debit cards, some with cheques and some have options for a reimbursement process similar to medical insurance.Growth of HSAsEver since the Health Savings Accounts came into being in January 2004, there has been a phenomenal growth in their numbers. From around 1 million enrollees in March 2005, the number has grown to 6.1 million enrollees in January 2008.14 This represents an increase of 1.6 million since January 2007, 2.9 million since January 2006 and 5.1 million since March 2005. This growth has been visible across all segments. However, the growth in large groups and small groups has been much higher than in the individual category. According to the projections made by the U.S. Treasury Department, the number of HSA policy holders will increase to 14 million by 2010. These 14 million policies will provide cover to 25 to 30 million U.S. citizens.In the Individual Market, 1.5 million people were covered by HSA/HDHPs purchased as on January 2008. Based on the number of covered lives, 27 percent of newly purchased individual policies (defined as those purchased during the most recent full month or quarter) were enrolled in HSA/HDHP coverage. In the small group market, enrollment stood at 1.8 million as of January 2008. In this group 31 percent of all new enrollments were in the HSA/HDHP category. The large group category had the largest enrollment with 2.8 million enrollees as of January 2008. In this category, six percent of all new enrollments were in the HSA/HDHP category.Benefits of HSAsThe proponents of HSAs envisage a number of benefits from them. First and foremost it is believed that as they have a high deductible threshold, the insured will be more health conscious. Also they will be more cost conscious. The high deductibles will encourage people to be more careful about their health and health care expenses and will make them shop for bargains and be more vigilant against excesses in the health care industry. This, it is believed, will reduce the growing cost of health care and increase the efficiency of the health care system in the United States. HSA-eligible plans typically provide enrollee decision support tools that include, to some extent, information on the cost of health care services and the quality of health care providers. Experts suggest that reliable information about the cost of particular health care services and the quality of specific health care providers would help enrollees become more actively engaged in making health care purchasing decisions. These tools may be provided by health insurance carriers to all health insurance plan enrollees, but are likely to be more important to enrollees of HSA-eligible plans who have a greater financial incentive to make informed decisions about the quality and costs of health care providers and services.It is believed that lower premiums associated with HSAs/HDHPs will enable more people to enroll for medical insurance. This will mean that lower income groups who do not have access to medicare will be able to open HSAs. No doubt higher deductibles are associated with HSA eligible HDHPs, but it is estimated that tax savings under HSAs and lower premiums will make them less expensive than other insurance plans. The funds put in the HSA can be rolled over from year to year. There are no use it or lose it rules. This leads to a growth in savings of the account holder. The funds can be accumulated tax free for future medical expenses if the holder so desires. Also the savings in the HSA can be grown through investments.The nature of such investments is decided by the insured. The earnings on savings in the HSA are also exempt from income tax. The holder can withdraw his savings in the HSA after turning 65 years old without paying any taxes or penalties. The account holder has complete control over his/her account. He/She is the owner of the account right from its inception. A person can withdraw money as and when required without any gatekeeper. Also the owner decides how much to put in his/her account, how much to spend and how much to save for the future. The HSAs are portable in nature. This means that if the holder changes his/her job, becomes unemployed or moves to another location, he/she can still retain the account.Also if the account holder so desires he can transfer his Health Saving Account from one managing agency to another. Thus portability is an advantage of HSAs. Another advantage is that most HSA plans provide first-dollar coverage for preventive care. This is true of virtually all HSA plans offered by large employers and over 95% of the plans offered by small employers. It was also true of over half (59%) of the plans which were purchased by individuals.All of the plans offering first-dollar preventive care benefits included annual physicals, immunizations, well-baby and wellchild care, mammograms and Pap tests; 90% included prostate cancer screenings and 80% included colon cancer screenings. Some analysts believe that HSAs are more beneficial for the young and healthy as they do not have to pay frequent out of pocket costs. On the other hand, they have to pay lower premiums for HDHPs which help them meet unforeseen contingencies.Health Savings Accounts are also advantageous for the employers. The benefits of choosing a health Savings Account over a traditional health insurance plan can directly affect the bottom line of an employer’s benefit budget. For instance Health Savings Accounts are dependent on a high deductible insurance policy, which lowers the premiums of the employee’s plan. Also all contributions to the Health Savings Account are pre-tax, thus lowering the gross payroll and reducing the amount of taxes the employer must pay.Criticism of HSAsThe opponents of Health Savings Accounts contend that they would do more harm than good to America’s health insurance system. Some consumer organizations, such as Consumers Union, and many medical organizations, such as the American Public Health Association, have rejected HSAs because, in their opinion, they benefit only healthy, younger people and make the health care system more expensive for everyone else. According to Stanford economist Victor Fuchs, “The main effect of putting more of it on the consumer is to reduce the social redistributive element of insurance.Some others believe that HSAs remove healthy people from the insurance pool and it makes premiums rise for everyone left. HSAs encourage people to look out for themselves more and spread the risk around less. Another concern is that the money people save in HSAs will be inadequate. Some people believe that HSAs do not allow for enough savings to cover costs. Even the person who contributes the maximum and never takes any money out would not be able to cover health care costs in retirement if inflation continues in the health care industry.Opponents of HSAs, also include distinguished figures like state Insurance Commissioner John Garamendi, who called them a “dangerous prescription” that will destabilize the health insurance marketplace and make things even worse for the uninsured. Another criticism is that they benefit the rich more than the poor. Those who earn more will be able to get bigger tax breaks than those who earn less. Critics point out that higher deductibles along with insurance premiums will take away a large share of the earnings of the low income groups. Also lower income groups will not benefit substantially from tax breaks as they are already paying little or no taxes. On the other hand tax breaks on savings in HSAs and on further income from those HSA savings will cost billions of dollars of tax money to the exchequer.The Treasury Department has estimated HSAs would cost the government $156 billion over a decade. Critics say that this could rise substantially. Several surveys have been conducted regarding the efficacy of the HSAs and some have found that the account holders are not particularly satisfied with the HSA scheme and many are even ignorant about the working of the HSAs. One such survey conducted in 2007 of American employees by the human resources consulting firm Towers Perrin showed satisfaction with account based health plans (ABHPs) was low. People were not happy with them in general compared with people with more traditional health care. Respondants said they were not comfortable with the risk and did not understand how it works.According to the Commonwealth Fund, early experience with HAS eligible high-deductible health plans reveals low satisfaction, high out of- pocket costs, and cost-related access problems. Another survey conducted with the Employee Benefits Research Institute found that people enrolled in HSA-eligible high-deductible health plans were much less satisfied with many aspects of their health care than adults in more comprehensive plans People in these plans allocate substantial amounts of income to their health care, especially those who have poorer health or lower incomes. The survey also found that adults in high-deductible health plans are far more likely to delay or avoid getting needed care, or to skip medications, because of the cost. Problems are particularly pronounced among those with poorer health or lower incomes.Political leaders have also been vocal about their criticism of the HSAs. Congressman John Conyers, Jr. issued the following statement criticizing the HSAs “The President’s health care plan is not about covering the uninsured, making health insurance affordable, or even driving down the cost of health care. Its real purpose is to make it easier for businesses to dump their health insurance burden onto workers, give tax breaks to the wealthy, and boost the profits of banks and financial brokers. The health care policies concocted at the behest of special interests do nothing to help the average American. In many cases, they can make health care even more inaccessible.” In fact a report of the U.S. governments Accountability office, published on April 1, 2008 says that the rate of enrollment in the HSAs is greater for higher income individuals than for lower income ones.A study titled “Health Savings Accounts and High Deductible Health Plans: Are They an Option for Low-Income Families? By Catherine Hoffman and Jennifer Tolbert which was sponsored by the Kaiser Family Foundation reported the following key findings regarding the HSAs:a) Premiums for HSA-qualified health plans may be lower than for traditional insurance, but these plans shift more of the financial risk to individuals and families through higher deductibles.
b) Premiums and out-of-pocket costs for HSA-qualified health plans would consume a substantial portion of a low-income family’s budget.
c) Most low-income individuals and families do not face high enough tax liability to benefit in a significant way from tax deductions associated with HSAs.
d) People with chronic conditions, disabilities, and others with high cost medical needs may face even greater out-of-pocket costs under HSA-qualified health plans.
e) Cost-sharing reduces the use of health care, especially primary and preventive services, and low-income individuals and those who are sicker are particularly sensitive to cost-sharing increases.
f) Health savings accounts and high deductible plans are unlikely to substantially increase health insurance coverage among the uninsured.Choosing a Health PlanDespite the advantages offered by the HSA, it may not be suitable for everyone. While choosing an insurance plan, an individual must consider the following factors:1. The premiums to be paid.
2. Coverage/benefits available under the scheme.
3. Various exclusions and limitations.
4. Portability.
5. Out-of-pocket costs like coinsurance, co-pays, and deductibles.
6. Access to doctors, hospitals, and other providers.
7. How much and sometimes how one pays for care.
8. Any existing health issue or physical disability.
9. Type of tax savings available.The plan you choose should according to your requirements and financial ability.BIBLIOGRAPHY1 Questions and Answers about Health Insurance- A Consumer Guide’ published jointly by the Agency for Healthcare Research and Quality (AHRQ)and America’s Health Insurance Plans (AHIP)
2 http://www.en.wikipedia.org/wiki/Health_savings_account
3 2002 AHIP Survey of Health Insurance Plans
4 “How High Is Too High? Implications of High-Deductible Health Plans” Davis, Karen; Michelle Doty and Alice Ho. The Commonwealth Fund, April 2005
5 http://www.fdhc.state.fl.us/schs/pdf/hsa_tri-fold_brochure.pdf
6 HSA/HDHP CENSUS 2008 by Hannah Yoo, Center for Policy and Research, America’s Health Insurance Plans
7″HEALTH SAVINGS ACCOUNTS Early Enrollee Experiences with Accounts and Eligible Health Plans” John E. Dicken Director, Health Care.
8 Thomas Wilder and Hannah Yoo, “A Survey of Preventive Benefits in Health Savings Account (HSA)Plans, July 2007,” America’s Health Insurance Plans, November 2007
9 Gladwell, Malcolm, “The Moral Hazard Myth”, The New Yorker (29-08-2005)
10 2008 Benchmark Survey HAS Bank
11. Employer Health Benefits 2007 Annual Survey, Kaiser Family Foundation
12. Health Savings Accounts and High Deductible Health Plans: Are They An Option for Low-Income Families?Catherine Hoffman and Jennifer Tolbert for Kaiser Family Foundation, October 2006
13. Medicare Prescription Drug, Improvement, and Modernization Act of 2003

Financial freedom is something more and more entrepreneurs are looking for. The fact is that more people are turning away from being employed to being their own bosses to enjoy some financial freedom. This is not that hard to do considering that the internet has made things easier even for new businesses. Online businesses are easy to create and maintain and they offer great customer potential. This is because many people are online more during the day and this makes it possible for any business to be noticed as soon as it begins.You can now earn income from home thanks to the possibilities of an online business. Online businesses have so much potential to thrive into successful ventures. You must, however ensure that you do everything right to increase the success rates of the business that you start.What You Need When starting an online business that is bound to be a success for you, you must know your product or services, establish your target audience and create a brand that you can keep up for the longest time. Remember that the brand that you begin with will be the brand that sets you apart from other businesses. This means that you need to be creative and confident from the very first step that you take in starting the business. It will make sure that you give your target audience a constant and consistent flow with the business at all times.Coming up with business strategies is not easy, especially when dealing with an online business. You will need to find relevant online business information so that you make the right decisions from the initial stages of the business. The info will give you the insight that you need on the latest business trends and thus, will help you make it big in whatever you choose to do. It can be dangerous to venture into online business when you do not have any idea of how to handle your business matters. This business information is therefore very important.You can use home business training programs. The program can be got from various online sources. This program will help you in making all the right turns for your business. Your program can tackle different sensitive issues of making the business a success. This includes strategies of attracting traffic to your site, how to come up with lucrative blogs, online marketing strategies and using social media for the benefit of your business among many others. It will all depend on the program that you choose and the kind of business that you intend to start and make a success.The programs offer live training sessions and videos to make it easier for you to grasp the business strategies easier. They can be some of the most helpful online business tools that you can use. When you are armed with the most helpful business info and strategies, you are bound to earn income from home without the struggles and worries many business entrepreneurs have when starting out.

Are you curious about planning a trip within the near future? If you are and if your trip will need airline reservations, you may wish to checkout on-line travel websites. Online travel web sites are a superb method to rapidly make travel arrangements, as well as favorable method to compare costs.One of the most commonly asked questions, concerning online travel sites, is which web site is the best. Prior to focusing on ways that you can discover respected, reliable, and respectable online travel web sites to do business with, it is first essential to know what to look for. To begin with, you’ll would like to search for great rates. Online travel sites are designed in a fashion that you ought to save cash, so never pay more than what you need to.You will also wish to look for on-line travel web sites that partner with most major airlines. When you search for flights on a travel web sites, you need to be present with several various options. In addition to various times, dates, and layovers, you ought to also be present with flight quotes from various airlines. This is likely to improve your prospects of truly finding the best deal.Depending on your travel needs, you may also want to look for online travel web sites that offer vacation packages. For example, are you searching to book a flight to California, rent a automobile, and remain at a California hotel? If your, you should have the capacity to discover a vacation package that fits your requirements. Vacation packages are a nice method to make travel arrangements, as you may have the capability to save both time and money.Ease of use is also essential, when searching for the best on-line travel websites to do business with. When producing important travel arrangements, like airline reservations, you don’t would like to be confused. Under the circumstances, all travel web sites that you use should be easy to navigate and understand. Tough to navigate internet sites can results in you making errors with your travel arrangements or you may even fail to spot the best deals.The previously referred to features are all features that you will wish to search for in online travel websites. As for discovering the best travel sites, like ones with great reputations, you’ve numerous various options, beginning with your self. You are in a position to effortlessly test out numerous online travel sites to see what they’ve available. These web sites could be discovered with an ordinary web search. Take into account low rates and ease of use. Be mindful of any websites that are hard to navigate and look out for fares that appear beyond regular.You are in a position to also discover more about the best on-line travel web sites to do business with by asking those that you know for recommendations. Over the past few years, online travel sites have raised in popularity and numerous people use them. Ask any buddies, relatives, neighbors, or coworkers in passing if they have ever utilized an online travel site to book a holiday prior to. If they have, which one did they use and would they suggest it to others? This approach is nice, as it needs little research on your part.You are in a position to also use the web to research online travel websites to find the greatest ones. You can do this by performing a common internet search, with an expression like “best travel websites.” You may find company articles where the top on-line travel internet sites are listed. You could also be connected to on-line message panels where travel alternatives, such as online travel internet sites, are being talked over. This is a fantastic way to get ratings and reviews.The previously referred to approaches are all great ways to go about learning more about online travel websites. Performing so can help to make sure that you’re doing company with an on-line travel web site that will offer you with the very best deals, also as the best quality of service.

The world is a wonderfully eclectic place full of difference which is a marvellous thing. Depending on what sphere you move within will influence how you think about the internet and internet business. Is the concept of ever having my business online, a complete fantasy or some desired reality for you? And how capable are you to participate in the world of internet business?In the space of one week I discovered two conflicting views about where business is at in terms of internet presence. I read an article that proclaimed every business today was aware it needed to have an internet presence to survive and most had developed that. I also spoke with a business coach and consultant based in a regional area who said that for most business owners, the internet simply wasn’t in their head space. He was involved in the delivery of a business course locally and there was absolutely no mention of the internet in any of the course materials. He admitted that it was becoming necessary and internet content would be included in coming years. So who is right?In the regional area in which I live, the concept of the internet business is very much in its infancy. Many people purchase online and the number and quantity of online purchases is growing all the time. Particularly for regionally based populations, the internet is one giant department store where anything is instantly available. However, when it comes to considering putting their own business on-line, many people are not quite there yet. Some businesses with a retail shop front will sell on eBay or have some form of internet element to their business. By far the vast majority of regionally based businesses would have very limited knowledge about how to go about optimising traffic online. Very few would have any idea about how to conduct market research on an idea or business to ascertain whether or not it could compete online.From my initial observations it appears there are three very broad categories when it comes to people and online business.There are computer geeks who speak a foreign language and who have the innate ability to write code hard-wired into their genes. The internet is their world. They rarely see the sun and have difficulty being understood by the rest of the world., Then there are the non-computer geeks who want to participate in the commercial world of the internet business. These are the questers. They know there is a whole lot of stuff they don’t know and they are constantly educating themselves but it’s a challenge and mentally exhausting. Most simply do not know where to start looking. They might attempt a blog or develop a website but without any knowledge of how to get to page one on Google, they remain forever in the far reaches of cyber sphere occasionally clicked on by some lost or wayward internet search gone wrong.And finally, there are the twiddlers. They like to look but they do not put their own content on the net. The internet is a foreign place. It’s interesting to be a spectator on the train as it flies through the terrain but they would never step off for fear that they might get lost or get too close to something that might explode.I am a self-confessed quester. Luckily, I know some computer geeks quite well and when they finally got sick of me asking stupid questions like:- Do you think a subscription service for tampons would go well on the net?; or How do I find out how many searches there are for red wax candles?, they politely pointed me in the direction of some internet based training. Now, having fought my way through the jungle of internet keyword analysis, search engine optimnisation and authority backlinks, I can now see how ridiculous my questions were.But I also now have the tools to answer those questions for myself. Knowledge is empowerment and I feel much more empoweerd having gone through the learning process myself than having outsourced it to a computer geek!

Thousands of people use Google and other search engines everyday to search cheap personal loans. While searching personal loans online has become convenient, cheap personal loans are as remote as they had ever been. Almost every lending organisation extols the virtues of personal loans available through it. Nevertheless, getting to the bottom of the assertions is not an easy task.Till the list of lenders has been short listed to a few, the borrower can at best gain knowledge about the lenders and their financial products through the Internet. The information available on the Internet is very limited and mostly relates to what the lender himself has to say about his own product. In order to view the product and its features more critically, one needs to do further research. However, the number of borrowers who are competent and have time to undertake the research is still a debatable issue.Consequently, borrowers continue to be as insecure about the quality of deals through online lenders as they had been before. Before online lending came to the scene, borrower would check with each lender if the offerings are in any manner better than the former. Comparison through the usual tools, information gained through experts, and personal intuition was employed to search the correct personal loan. Though the process was often protracted, chances of getting cheap personal loan were significantly improved.When lenders shifted their business online, borrowers forgot that personal loans offered by all lenders were not necessarily cheap. Busyness was always an excuse to exempt themselves from their duty towards the quality of cheap personal loans. Since, the obligation presented by the loan will be borne by the borrower, he needs to have a keen eye while making important decision.Online comparison between Cheap personal loans from different lenders is more convenient. Sincere search for an hour or so on the Internet will help borrowers create a big database of loan providers. For the purposes of comparison, loan calculator is the best method. Loan calculator resembles a chart showing APRs being charged by several banks, financial institutions and building societies. The data is classified on the basis of the type of loan, example, secured and unsecured loan, personal and business loan etc. When the data is revealed, borrower instantly knows if the APR promised to him is cheap or not.The results of loan calculator are not very specific. On some occasions, the entries in the loan calculator have not been reviewed for weeks. The results thus are not as effective. Loan calculator can at best give a vague idea of the quality of deals. Loan quote complements loan calculator. Loan quote is an offer to the borrower to accept cheap personal loan along with a set of terms and conditions. The terms and conditions of the personal loan are described in detail in the loan quote. A rational borrower will try to gain maximum inferences about the loan and the lender through the loan quote. Loan quote presents no obligation for the borrower. Thus, it will be wise to have loan quotes from about five to ten loan providers before selecting one of them. Borrowers can reject all quotes and start the search afresh if no deal appears promising. Many loan providers are still available, and employing a new search criterion will be helpful in getting much better loan opportunities.Cost of the loan is not solely made of APR. There have been many instances when the APR, or the visible face of the personal loan was lower. However, when the loan came for repayment, the cost of personal loan was much higher. Borrower failed to read the fine print in detail. It was here that the loan provider had the extra charges written. Borrowers thus have to be very careful while reading the terms and conditions. Proper negotiation on terms is necessary to lower the cost of cheap personal loans.We have often heard people say that a best personal loan would best meet their requirements. Cheapness is a criterion through which a personal loan will be adjudged best personal loan. Cheap personal loans are not as subjective a concept as best personal loans. By deciding his priorities well and using effective search criteria, the search for cheap personal loan can be made more material.

Auto loans are fairly easy to obtain from a variety of sources – no matter how good or bad your credit may be. Options for auto loans include bank loans, finance companies, and in-house loans. The loan that you get depends on whether you are buying a used or a new vehicle.Most banks and finance companies, such as GM, will not loan money on vehicles that are over five years old. They also will not loan money on vehicles that are not worth the sales price. Therefore, if you are purchasing a used vehicle that is more than five years old, you will need to obtain in-house financing where you purchase the vehicle – or pay cash for the vehicle.When purchasing a new vehicle, depending on your credit, your best bet is to get your auto loan through a bank. In most cases, you will find that the interest is a little lower, making the payments lower and easier to manage. If you are unable to obtain bank financing, your next option is to go through an automobile financing company like GM. The credit requirements for GM are a little easier to meet, but usually a higher down payment is required, and the interest is also higher.In-house financing where you purchase the vehicle should be your last option. The interest is usually very high, and the loan amount is typically much more than the car is actually worth. While your credit score doesn’t matter much in this area, your ability to make a higher down payment and higher monthly payments on the auto loan matters a great deal.When you have auto loans, you will be required, in most cases, to carry full coverage insurance on the vehicle. Failure to carry such insurance can result in having the vehicle repossessed – even if you are making your payments as scheduled.

Most people have heard of affiliate marketing, even if they haven’t actually started doing it. Affiliate marketing is basically referring people to various products and services around the internet. For each sale you generate through your affiliate link, you earn a commission. The size of the commission depends on the products themselves, who is selling them and the percentage offered by the seller to the affiliate.But what is actually involved in affiliate marketing? What do affiliates do on a daily basis? How do they earn money and how do they learn what to do?1 An Example Of A Successful WebsiteThere’s several ways of marketing products and services online. Many affiliates create a blog first and sell products and services through their blog. Martin Lewis has a very successful website called moneysavingexpert.com. This is also an affiliate website. By creating content and helping people decide which service to use: which credit card offers to choose, the best interest rate etc. moneysavingexpert.com makes money by sending website visitors to various offers. If a sale is made through this website, the link this credited to it and a commission is made. By creating content, offering value and helping people make sensible choices, the website has built a reputation and become more prevalent over time. Google ranks the site highly in the search engines and thousands of people use it to make purchasing decisions every day.2 How Can I Get Started As An Affiliate?Affiliate marketing is huge. There are thousands of people already making their main source of income from the internet. To get started as an affiliate you need to learn some basic strategies and build various methods of generating traffic from the internet to those offers. A lot of affiliates start with a simple blog. Many travelers ‘blog’ about their travels. If you don’t have a passion or interest to blog about, you can start by following an online course which will help. See my bio for more info on this.3 How Long Does It Take To Make A Living?Some people go into affiliate marketing with the intention of creating a second income. Some people want to make big money. Depending on how much time you can dedicate to your affiliate business, and how dedicated you are to it, is a big factor in determining your results. Results vary from person to person. With a large advertising budget and the right business model, some affiliates have replaced their living in 6-12 months. For others it can take years before it replaces their existing income. Depending on your approach, advertising budget, and business model, it can take between 3 months and several years to build it to a point where it can replace an existing income.4 Can Anyone Do It?One of the great things about affiliate marketing is that the technology is now available to allow anyone to build their own online business. As long as you are prepared to learn and implement that knowledge, anyone who can operate an email, can use online platforms and tools to build their own online business. The main thing you need is the desire to learn. Affiliate marketing isn’t for everyone though. It does take a lot of hard work and it can take years before you are rewarded financially.5 What Are The Pitfalls Of An Affiliate Business?You need to dedicate some time to your affiliate business for it to work for the long term. Some people go into affiliate marketing thinking it is some magic pill which will pay them instantly in cash. Much like a job you can’t expect to get out more than you put in. Affiliate marketing is performance related. This means you don’t get paid unless you can successfully sell products and services online. If you don’t know what you are doing it can take years to do this. You can’t be a dabbler and expect to earn the big money. The big earnings are created over years of hard work. Don’t expect to achieve this with only a small amount of input.6 What Are The Best Things About Affiliate Marketing?Affiliate marketing offers an incredible amount of flexibility and freedom. You can work an affiliate business from anywhere in the world providing you have a laptop and an internet connection. You can choose your own hours and build it up around existing work. Many people come into affiliate marketing because it offers this kind of flexibility. They can choose their priorities in life: spend more time with family, choose your working hours, travel and work abroad. No more commuting to work or working long hours for a boss you don’t like.Affiliate marketing also offers incredible scalability. A business which is local is always limited to the people who can travel to that business. An online business can be global. Using digital products in conjunction with a global reach, you can scale using tools and software to reach thousands of people through digital technology. By using automation much of the work involved with an online business can be pre-built. By building automation into the business model, you can focus your activities on reaching a larger audience through content creation and paid advertising.7 Why Am I Struggling With My Affiliate Business?A lot of people struggle with their affiliate businesses.This can be for a number of reasons. Firstly building up an affiliate business takes time. You need to dedicate a lot of time to an affiliate business in the first place. Only when you reach a ‘tipping point’ do you really start to see your progress. Many affiliates simply don’t realise how much work is involved. They underestimate how much time they need to dedicate to their online business to make it work.
Paid advertising can allow you to grow your affiliate business quickly. But it costs money and you need the right products too. You can’t advertise small value items with paid advertising. You won’t generate enough profit to cover your advertising costs. You need a range of products and an email list to advertise through.
Content marketing takes much longer to work, depending on your chosen area of business. If you find an untapped niche to market your blog in, you can make some fast progress. However, with a competitive niche you will struggle to get noticed above all the other content which you will have to compete with. There’s several reasons why you might struggle. The main one is lack of knowledge. Get the right education first and your affiliate business will move much faster.8 What’s The Best Affiliate Model To Use? There are many different affiliate models, all offering something different to suit the individual. Some affiliates target search traffic and aim to get their content found on Google. Some create their own products and sell them directly to customers. However, having a range of products which you can sell over and over to existing customers is a great model for long term success. Selling a single item online is limited. It means you can only make one commission from each sale. By choosing membership products to promote which also offer back end sales and a built in sales team, you can benefit from monthly commissions and up-sell commissions for the lifetime of any given customer. Selling membership products is definitely a game changer when it come to affiliate marketing because you make an income from each customer, rather than a single commission. But a good model to choose is one in which you have a passion for and can keep doing for the long term. Choosing products which you have no interest in is a short sighted plan. Think about what you would like to do online to generate an income. If you choose to go with your passion, your business will last much longer, and be more successful.9 Can I Just Sell My Own Products?Many affiliates create their own products to sell online. However, when you are starting out it is a good idea to learn the basics of marketing first. That way you can start earning more quickly from your affiliate business. I spent a long time creating my own products when I first discovered affiliate marketing. But I didn’t sell anything because of a couple of reasons. Firstly I didn’t research whether my products would have a big enough demand. Secondly I didn’t know how to market them. By joining a program which teaches you how to market products first, you can start making money more quickly. Don’t waste time creating products if you don’t know how to sell them. Marketing is a much more important skill for making money online. Once you know this skill, you can then apply it later when marketing your own products and services. Also your own products will be limited in range. By using an existing product range, you can benefit from products which are already selling. You can choose a program which offers high ticket commission, monthly memberships, back end sales and a built in sales team. Building your own products which offers all of these things not a possibility for most people when starting out.10 What’s The Point Of Affiliate Marketing?Some people struggle with the concept of affiliate marketing.They think it sounds too ‘salesy’. When I understood affiliate marketing I immediately found it appealing simply because I needed a flexible way to work around my contract work. I had to drop what I was doing at a moments notice if the phone went. This meant other jobs were awkward to juggle around. No-one wants to employ a ‘flaky’ employee. I wanted to work from my laptop and affiliate marketing gave me that opportunity. For many people this is the reason why they choose affiliate marketing. They can earn an income from their laptop, choose their working hours and not have a boss or place of employment. You don’t have to sell directly to anyone or even talk to a customer. There is no stock to hold. Added to this, the scalability of affiliate marketing which lets you scale up to a global audience and deliver products on autopilot, makes it the best flexible business of the future.