educational

Making Money Work For You

Both you and I are in this fabulous biz of nudeness to make a fortune, right? That's what I thought too, yet it amazes me that so many of us are just spending the money we make, not giving any thought to the future to come.

Who knows what competition may look like in three years, who knows what legislation will be enforced next. Now don't mistake me for a doom-and-gloom person, I just thought it would be good to plant a seed about planning ahead that can grow along with your wealth.

The approach will vary slightly depending on what sort of webmaster you are: Do you spend most of your time building and submitting to TGPs, Free sites or AVSs? Or are you managing the content for 25 full fledged paysites? Obviously you are going to need to put more revenues back in the business if you have paysites, since they require more content and updates to keep members happy, but the basic approach is still the same.

To become (or continue being) wealthy in the future, you need to make a strategy for money management. If you are not living very tightly from day to day, sponsor check to sponsor check, it is a good idea to reinvest a certain percentage of your earnings. First put away what's needed for content and hosting etc. Then take for example 20-40% of your profit, and keep half of it in a regular boring bank account not to be touched. The other half is where you can build your wealth.

Where you invest this money is a matter of personal taste and experience, of course. To give a few examples, you can buy stocks, keep money in a managed fund, or give Foreign Exchange (Forex) a shot. But no matter which you choose, be sure to choose wisely.

All investments include risk, and the same old advice, "Never risk more than you can afford to lose," should certainly still be taken seriously. Consistency is also a word d' jour to keep in mind when investing. You need to be able to watch your stocks/Forex/funds lose value without getting irrational about it. Trying high risk investments only to try to win back your losses is gambling, and gambling is not trading wisely.

Let's have a closer look at different types of investments suitable for a webmaster like yourself. Stocks rise one day to take a plunge the next, but if you are good at trading, or know someone who is a good trader, you could give it a go. Yahoo Finance offers most of the things you need to know.

Mutual Funds, the type you can buy at your bank or online broker, are really nothing more than a portfolio, a big managed portfolio at that, but still just a portfolio. It can consist of many different kinds of papers, like stocks and bonds, in many different levels of risk. A site that has information and ratings on tons of mutual funds is Morningstar.com. Choose a portfolio of several funds that match your level of risk and expected return.

Then there are so called HYIP (High Yield Investment Program) sites all over the Internet. Most of these, if not all, are scams only designed to take your money. A typical HYIP will promise to pay you anywhere from 3-150% daily. It is really a ridiculous claim to make, since nobody can guarantee that much. If you are tempted to give one of those a try, only invest a little money – maybe a couple of signups worth – and see what happens. I believe some people are really getting their money from these programs but they are often designed to take the newest member's money and give back to a member who is due for payout, and it all fails when new recruits are no longer coming. Don't blame me if the website suddenly doesn't show up without a trace on your due-day. If you decide to try one, go for a low percentage per day scale, they are of course a bit less probable to be pure scams.

The instrument that appeals most to me personally is Foreign Exchange speculation, Forex for short. The possible rewards along with compounding your profits can make it very profitable, and risk can be kept low using good money management and never failing to put a stop loss order. But you need to know what you are doing. The alternative is to have your Forex account managed by a pro who really knows what he is doing. On my website you can get more info on a managed account.

Now that you have a plan, stick to it and leave as little thought to the money you have put away as possible. Keep webmastering, but keep doing it with the plan to put away money and letting it grow for your own future. Webmastering will be much more appealing when you don't need to worry about what Mr. Ashcroft & Co. is planning next, or whether the summer slowdown will be worse this year.

Start your financial plan now; you don't have to be a pro let your money start working for you instead of you working for your money.

Marq, an adult webmaster since 1997, is owner of Duraprofit.com, a website where webmasters can learn about the world of Managed Foreign Exchange speculation and what it can mean to their wealth.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

To Cloud or Not to Cloud, That Is the Question

Let’s be honest. It just sounds way cooler to say your business is “in the cloud,” right? Buzzwords make everything sound chic and relevant. In fact, someone uninformed might even assume that any hosting that is not in the cloud is inferior. So what’s the truth?

Brad Mitchell ·
opinion

Upcoming Visa Price Changes to Registration, Transaction Fees

Visa is updating its fee structure. Effective April 1, both the card brand’s initial nonrefundable application fee and annual renewal fee will increase from $500 to $950. Visa is also introducing a fee of 10 cents for each transaction, and 10 basis points — 0.1% — on the payment volume of certain merchant accounts.

Jonathan Corona ·
opinion

Unpacking the New Digital Services Act

Do you hear the word “regulation” and get nervous? When it comes to the EU’s Digital Services Act (DSA), you shouldn’t worry. If you’re complying with the most up-to-date card brand regulations, you can breathe a sigh of relief.

Cathy Beardsley ·
opinion

The Perils of Relying on ChatGPT for Legal Advice

It surprised me how many people admitted that they had used ChatGPT or similar services either to draft legal documents or to provide legal advice. “Surprised” is probably an understatement of my reaction to learning about this, as “horrified” more accurately describes my emotional response.

Corey D. Silverstein ·
profile

WIA Profile: Holly Randall

If you’re one of the many regular listeners to Holly Randall’s celebrated podcast, you are already familiar with her charming intro spiel: “Hi, I’m Holly Randall and welcome to my podcast, ‘Holly Randall Unfiltered.’ This is the show about sex, the adult industry and the people in it.

Women In Adult ·
trends

What's Hot Now: Leading Content Players on Trending Genres, Monetization Strategies

The juggernaut creator economy hurtles along, fueled by ever-ascendant demand for personality-based authenticity and intimacy — yet any reports of the demise of the traditional paysite are greatly exaggerated.

Alejandro Freixes ·
opinion

An Ethical Approach to Global Tech Staffing

One thing my 24-year career as a technologist working to support the online adult entertainment industry has taught me about is the power of global staffing. Without a doubt, I have achieved significantly more business success as a direct result of hiring abroad.

Brad Mitchell ·
opinion

Finding the Right Payment Partner

Whenever I am talking with businesses that are just getting started, one particular question comes up a lot: “How do I get a merchant account?” It’s a simple question, but it has a complicated answer.

Jonathan Corona ·
opinion

The Taxman Cometh for Every Business

February may be the month of romance, but it is also a time when we need to think about something that inspires very little love: taxes. April is not far away, and the taxman is always waiting. This year, federal and most state income taxes are due Monday, April 15.

Cathy Beardsley ·
opinion

The Continuous Journey of Legal Compliance in Adult

The adult entertainment industry is teeming with opportunity but is also fraught with challenges, from anticipating consumer behavior to keeping up with technological innovation. The most labyrinthine of all challenges, however, is the world of legal compliance.

Corey D. Silverstein ·
Show More