Making Money

Posts about making money from a 60-plus perspective. This includes sideline earning opportunities of all types.

How to Make Real money as a Virtual Assistant

How to Make Real Money as a Virtual Assistant

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If you’re looking for a way to make steady money from home, setting up as a virtual assistant (VA for short) has a lot to recommend it.

Most VAs work from home providing services to businesses and solo entrepreneurs. Services may include anything from secretarial support to book-keeping, answering calls and emails to updating the company blog. In all cases, though, the work involves using modern communication tools to perform tasks that in the past would typically have been performed in-house.

Opportunities for VAs have grown at an accelerating rate as businesses have come to understand the benefits they can offer. In particular, businesses save by not having to provide office space or equipment for VAs, and only paying them when there is a specific task they need doing. In these cash-strapped times, such savings can present a compelling argument for hiring a VA.

For VAs too, there are many attractions to the role. The main one, of course, is that you can work from home, with all the advantages this confers. These range from fitting in work around childcare responsibilities to big savings on commuting time and costs. In addition, the work can be varied and interesting, and you can specialize in those areas that appeal to you most.

Skills Required

Most virtual assistants have several years’ experience working in offices, whether in a managerial, administrative or secretarial capacity. It goes without saying that you need good keyboard skills. An excellent telephone manner is essential as well, as is a good command of written English.

You will need skills in popular software packages, especially Microsoft Office (ideally including Word, Excel, PowerPoint and Outlook). The ability to work on a Mac is an added bonus. Knowledge of social media is a big plus, as is website design and maintenance.

Many businesses nowadays use WordPress for running blogs and websites, so some knowledge of this platform will be very helpful too.

Beyond this, you will need the ability to communicate with a wide range of clients and quickly grasp what they require and deliver it. A good VA anticipates clients’ needs and suggests ways they may be able to help them boost their productivity and achieve their goals.

You will need to be well-organised and self-disciplined. As a VA you will be self-employed and won’t have a boss looking over your shoulder all the time. You must be able to resist distractions and focus on the task in hand, and be willing put in an extra shift when required to meet your clients’ deadlines.

Finally, you will require all of the personal qualities required by any self-employed person, including tenacity, stamina, perseverance, enthusiasm, and the ability to cope with (and even thrive on!) stress.

Tools and Equipment

You don’t need to spend thousands when you’re starting out, but some tools and equipment are pretty much essential. Here are the main things you are likely to need…

Computer – A desktop is fine for working from home, but really you need a laptop. You can take this with you to clients’ premises for meetings and presentations. It will also allow you to work on the go, anywhere from coffee shops and motorway service stations to your back garden 🙂

Printer – You won’t need this all the time, but for some tasks it’s essential. Get a good quality laser model that will print in black and white or in colour. You could also get a multi-function device that serves as a scanner and photocopier as well.

Internet Connection – You will need a reliable broadband internet connection for email, website work, research, etc. It will also let you use Skype for phoning clients across the world and apps like Zoom for meetings and tele-conferencing.

Smartphone – This will allow you to keep in touch with clients when you are away from home, and also keep you up to date with emails and social media. For some jobs a smartphone camera can come in useful.

Business Cards – These are an essential marketing tool. You don’t need anything too jazzy, but they should look smart and professional. Moo.com is a website offering high-quality business cards printed to your specifications, and you can order as few as 50 if you wish.

There may also be other tools and equipment you need, depending on the services you intend to provide.

  • One thing you DON’T need when starting out is a dedicated office. If you have one in your home (or elsewhere) that’s great, but otherwise anywhere you can set up your laptop will be fine. Even a corner of the kitchen table is okay, as long as you aren’t being constantly interrupted. Many VAs work for at least some of the time in co-working spaces and even coffee shops and bars.

Services You Can Offer

I’ve already talked about some of the services offered by VAs, but there are plenty more as well. Here is a list to set you thinking. Clearly you don’t have to offer all the following, but the more you have in your repertoire, the more demand there is likely to be for your services.

  • Website and Graphic Design
  • Website Maintenance and Updates
  • Online and Offline Marketing and Promotion
  • Accounting/Bookkeeping
  • Data Entry
  • Creating PowerPoint and SlideShare Presentations
  • Desktop Publishing
  • Handling Travel Arrangements
  • Proofreading and Editing
  • Report and Article Writing
  • Minute Taking
  • Blogging and Podcasting
  • Market Research
  • Secretarial Services
  • Transcription (General, Legal, Medical, and so on)
  • Database Management
  • Personal Assistant Services
  • Event Planning
  • Technical Support
  • Coaching/Consulting
  • Staff and Manager Training
  • Customer Service

One thing to bear in mind is that the more specialized your services are, the less saturated the market will be. It is therefore important if you have specialist skills or expertise to look for ways you can use them to your advantage to create a niche for yourself (and boost your fees). If you speak a second language, for example, you may want to target potential clients who speak this language and/or have clients that do.

It’s also important to take the time to update your skills and add new ones. The 21st century workplace is constantly changing, with corresponding changes in the services clients are looking for. Be prepared to invest a proportion of your earnings in training and personal development, so your skills remain in high demand.

Your VA Website

However good your skills, nobody is going to beat a path to your door to hire you. You will need to market yourself, and one essential tool for doing this is a website.

Nowadays a basic one-page site with a photo and a bit of text won’t cut it. As an aspiring virtual assistant you need to come across as someone at ease in the world of business who knows how to present themselves professionally (online as well as off-). Your website is your shop window, and you will be judged on it!

Unless you have website design/building skills yourself, you may want to consider hiring a professional in this field and get them to create your site for you. The end result will look much more professional. Hiring a designer will cost you money, but it should more than repay itself in the higher fees you are able to negotiate. Search online for website designers and take time to check out examples of their work.

Your website should outline the range of services you offer, and be easy to read and navigate. There is no need for fancy graphics or animations – a clean, readable layout is far more likely to impress potential clients.

One other thing is to try to ensure that your website is search engine optimized by incorporating relevant keywords and phrases throughout the content. The aim here is to ensure that your site ranks high in the search results of people looking for someone providing the services you offer.

If money is tight initially, you could start by using a free website builder such as Blogger.com. Sooner or later, however, there is much to be said for building your website on a self-hosted WordPress platform (as I use for Pounds and Sense). There are many excellent free and low-cost themes you can use that would work well for a VA (I use Themify personally).

A well-designed WordPress site should send a strong message about your skills and professionalism to potential clients. In addition, running such a site will help hone your own WordPress skills, which (as mentioned earlier in this article) are much in demand among businesses.

Marketing Your Services

A website is, of course, an essential marketing tool, but there are many other things you can do as well.

One of the most powerful is networking. The chances are if you are setting up as a virtual assistant, you have previously worked for businesses and other organizations. So let them know that you are now offering your services on a freelance basis, and make full use of any contacts you may have.

In addition, there are agencies for VAs that you can join to find work. One of the best known is Time Etc. They match up virtual assistants with businesses (and solo entrepreneurs) who need their services, and pay them an agreed hourly rate. You can apply via this page of their website.

Some other marketing methods you can try include the following:

  • Go to business conventions and exhibitions (once these are running again) and introduce yourself to any exhibitors you think might be in the market for your services. Don’t forget to take along a good supply of business cards.
  • Set up a profile on the career networking website LinkedIn. As with your website, use this to set out the skills and services you offer. Send invitations to anyone you know in business to build your network, and join any relevant special interest groups.
  • Set up a Facebook business page and Twitter account and use these to help promote yourself as well. Do this in a low-key way, to avoid putting people off following you. Share interesting links and even the occasional humorous item, along with reminders of the services you offer.
  • You may also want to list yourself on job auction sites such as People Per Hour. On these sites would-be clients list tasks they want done and freelances can then bid on them. Fees are likely to be on the low side for VAs who are just starting out, but nonetheless they can provide a way to gain experience (and references) – and in some cases a one-off job can lead on to a long-term contract.

More Top Tips

Here are a few more tips for anyone starting out in this field…

  • Always back up work you are doing for clients and (especially) any original documents you receive from them. Never assume clients have kept copies themselves! It’s best to back up everything at least twice, once to a separate device such as a USB stick and once to a cloud-based storage solution such as Google Drive.
  • For many jobs you’ll be paid by the hour, so to keep a record it’s worth investing in some time-tracking software. Toggl is a good basic time-tracker that is free for use by individuals and can keep track of time spent on any number of projects.
  • Ask for feedback from clients when you have completed a job for them. Good comments can be incorporated as testimonials on your website (with the clients’ permission), but criticisms are valuable as well, as they reveal ways you can improve the service you offer.
  • Keep in touch with former clients and, without being pushy, try to ensure you remain at the forefront of their minds if another job comes up you might be suitable for. If you start offering a new service, for example, that could be a good pretext for an email or even a phone call.
  • Consider joining one of the professional associations for VAs. There are several you can choose from, but my recommendation would be the IVAA (International Virtual Assistants Association). Members enjoy a range of benefits, including training and mentoring, a private Facebook group, a listing in a public directory of VAs, and more. For further information, see their website at www.ivaa.org.
  • It’s also well worth checking out The VA Handbook website and blog. This is run by UK virtual assistant Joanne Munro and is a treasure trove of advice and resources for aspiring VAs.

Closing Thoughts

I hope in this article to have opened your eyes to a way of making money from home you may not have considered before. If you have administrative and/or secretarial skills, setting up as a virtual assistant can provide you with a good living that fits in with your lifestyle and family circumstances.

You can work full-time or part-time, whatever suits you best. You can specialize in the sort of work that interests you most, and can pretty much guarantee that every day will offer new challenges and surprises.

While a majority of VAs are female, there is nothing to stop men becoming VAs as well, as long as they have the skills and experience required. Being a VA can be a great option for older people too, allowing them to work flexibly from home while making use of skills they may have honed over many years in the workplace.

What’s more, now is a great time to be entering this field. With the coronavirus pandemic, more and more companies (and individuals) are realizing the benefits of engaging home-based VAs. If you can provide the services they want, an ever-expanding range of opportunities is out there.

Another attraction of VA work is that potential clients may be located anywhere. Most of the tasks a VA does can be performed remotely using the Internet and phone – so there is nothing to stop you working for anyone, anywhere in the world.

And equally, as a VA you can – if you choose – work in ‘real world’ locations as well. As the rules about lockdown and social distancing are eased, you might be asked to do anything from organizing events and conferences to training clients’ staff in their offices, or even looking after clients’ homes while they’re away. It’s entirely up to you what services you choose to offer, and when and where you want to do so.

Good luck, and I hope you make lots of real money as a virtual assistant!

As ever, if you have any comments or queries about this article, please do post them below.

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Make money as a freeklance proofreader or editor

Could You Make Money as a Freelance Proofreader or Editor?

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As you may know, for many years I made my living primarily as a freelance writer. But I also had a sideline as a freelance proofreader and editor.

Obviously the skills required are closely related, and I enjoyed the variety of proofreading and editing work. I still do a bit today, though I am semi-retired now.

So in this post I thought I would discuss how to make money as a freelance proofreader and/or editor.

Let’s start with the basics, though…

What Do Proofreaders and Copy Editors Do?

Proofreaders perform a final check on the text of books and other written documents before they are sent to be printed. They mark up any errors they find using a standard set of proofreading marks (usually BS 5261 part 2). These corrections are then incorporated by the typesetter before the book goes to print.

Proofreaders are typically asked to work in one of two ways. They may be sent the author’s original typescript with the copy editor’s corrections marked on it, along with a copy of the proofs. In this case they are required to check that the typesetter has carried out all the editor’s instructions and not inserted any errors of his/her own. This task is known as reading against copy.

Alternatively, the proofreader may simply be sent a set of proofs and be asked to read through them checking for any errors (e.g. spelling, punctuation or factual mistakes). This is known as a straight (or blind) reading.

Either way, proofreaders generally make two marks per correction: one in the margin and another in the text itself. The idea is that the typesetter can glance down the margins to see where a correction might be required, and then look across the line in question to find it. This reduces the chances of a correction being overlooked.

Copy editors are involved at an earlier stage of the publishing process. They generally work with the author’s original typescript. As well as correcting spelling and punctuation mistakes, their task also includes correcting grammatical errors, checking for bias or possible libel, and generally polishing the text so that it reads well and conforms to the publisher’s house style. They also apply ‘weights’ to section headings (H1, H2, H3, etc.), so that headings and sub-headings are properly printed and arranged in a logical hierarchy.

Copy editing is a more creative task than proofreading, and also more demanding. Many freelances start off as proofreaders and perhaps graduate to copy editing later.

  • Both proofreading and copy editing are increasingly done electronically. That means working on screen, on a word-processed document rather than on paper. The underlying skills required are the same, of course, but you won’t be required to make the traditional proofreading (or editing) marks. You will, though, be expected to use ‘tracking’ to ensure that any amendments you make are easy to see (and can be reversed if the author or publisher dislikes them!).

What Do I Need to Get Started?

To start with, you must have an interest in language and a love of good writing. A good grasp of grammar, spelling and punctuation is essential, though you can take courses if you are not as strong in this area as you ought to be.

You will also need to learn the standard proofreading marks. These are reproduced on various websites (e.g. this one) and in a number of published books, e.g. The Writers’ and Artists’ Yearbook (see below).

You should also have a good modern dictionary to check spellings and usage, and – for copy editing at least – a style guide such as the Oxford Guide to Plain English (see below).

Clearly you will also need a computer and an internet connection. Even if you are working on paper in the traditional way, this will still be required for corresponding with clients, marketing your services, invoicing and record-keeping, and so on.

Who Will My Customers Be?

Your main clients will be book, magazine and newspaper publishers. You may also obtain work from businesses looking for someone to edit and proofread their brochures, newsletters, annual reports and so on. Writers and aspiring writers may also require your services – in the case of the latter, they may be hoping you can bring their work up to a publishable standard.

Other potential customers include design houses, advertising and public relations agencies, printers and typesetters.

How Much Can I Make?

For freelance proofreading, the NUJ (National Union of Journalists) Freelance Fees Guide recommends a minimum rate of £24.00 an hour and for copy editing a minimum of £28.00 an hour. In practice you may not always be able to get NUJ minimum rates when you are starting out. Equally, however, you may be able to negotiate rates above the NUJ minimum as you gain experience.

How Can I Sell My Services?

You could start by sending a mailshot to publishing houses offering your services. A good selection can be found in The Writers’ and Artists’ Yearbook, mentioned above. This is a highly competitive sphere, however, so it may be best to focus on those publishers who are active in areas where you have some specialist knowledge. If you are a keen birdwatcher, for example, you might decide to target specifically those publishers who produce ornithological titles. When you write, don’t forget to mention any relevant qualifications and experience.

Local businesses and advertising/PR agencies are also well worth trying. In addition, you could try advertising your services in publications likely to be read by potential clients. Several proofreaders advertise regularly in journals such as The Author and Writers News, and this can be a good way to attract business from writers. You could also try advertising in local business magazines and directories (online and off-).

Having your own website/blog and perhaps a Facebook page to promote your service is also highly desirable.

Where Can I Get More Help?

There are various distance-learning courses you can take in proofreading and copy editing. One long-established commercial provider is Chapterhouse. They offer a range of introductory courses in proofreading and copy editing. These cover the basics and will help you discover whether proofreading and editing is something you enjoy and have an aptitude for.

More advanced (and expensive) courses are offered by the Publishing Training Centre. These include short, classroom-based courses, online tutor-guided courses (leading to the award of a certificate of achievement from the Publishing Qualifications Board), and e-learning modules. If you want to gain an industry-recognized qualification, studying with the PTC is probably the way to go.

The professional organization for freelance proofreaders and editors in the UK (and overseas) is the Chartered Institute of Editing and Proofreading (CIEP). Members receive a regular newsletter and discounts on various publications. They are also entitled to a listing in the Institute’s Directory of Editorial Services. CIEP also run workshops and online training courses in proofreading and editing.

Final Thoughts

Freelance proofreading and/or editing can be a great part-time sideline, or even a full-time business. No special tools or equipment are required, so it’s quick, cheap and easy to get started. It’s reasonably paid, and you can work from home at hours to suit yourself.

It’s also suitable for older people and people with disabilities, with the one proviso that it becomes a little harder if – as in my case – your eyesight isn’t as good as it once was.

  • I am, however, still available for small- to medium-sized proofreading and editing projects – so if you need any help in this department, please do drop me a line!

I hope you have enjoyed reading this post. If you have any comments or questions, as always, please do leave them below.

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How to make money from affiliate marketing

How to Make Money From Affiliate Marketing

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Today I’m looking at a method for making money online I have used for many years, including (of course) on this blog.

Affiliate marketing entails promoting other people’s products and getting a proportion of the sales generated as commission.

In a way affiliate marketers are like freelance salespeople, but rather than visiting potential buyers in person, they simply have to get them to click through to their merchant partners’ websites via their affiliate links.

Why Affiliate Marketing?

For home-based entrepreneurs, affiliate marketing offers a great opportunity to make money online with a minimum of hassle. One beauty of the method is that you don’t actually have to supply the product or service you are promoting. Once you have delivered your prospect to the merchant’s sales page, the rest is up to them. You can simply sit back and await your commission!

A further benefit is that when someone clicks on your affiliate link, in many cases a tracking cookie is applied to them. These vary in duration from 24 hours to six months or more. If the prospect returns to the merchant’s website at any time during this period, as the referring affiliate you will still be credited with any commission generated.

Affiliate marketing can be great for earning a sideline income, but if you’re prepared to put a bit more work in, the returns can be substantial. Some so-called ‘superaffiliates’ allegedly make six-figure incomes this way. Of course, when first starting out your earnings are likely to be more modest than that, but there is no reason why in time you could not emulate their success.

There are lots of ways you can apply the affiliate marketing method. They include blogging, email newsletters, social media, and more. In fact, if you have any sort of online presence, the chances are you could boost your income through affiliate marketing. In this article I will look at some of the most popular (and effective) approaches. But before we get to that, let’s look at how it works in a bit more detail…

Getting Started

To become an affiliate marketer you will first need to be an online publisher. If that sounds daunting, don’t worry. It could simply mean setting up a free blog using Blogger.com, which you can do in 10 minutes or less. Or you could use social media and/or build a mailing list (all discussed in more detail below)

You can then apply to become an affiliate with one or more merchants. Affiliates are supplied by the merchants with special links and other advertising tools, and can place them on their websites. No particular technical expertise is required, just the ability to copy and paste a bit of code.

If someone visits your site and follows your affiliate link to the merchant’s site and buys something there, you will get a proportion of the money they pay as commission. Special tracking systems are used so that merchants know where customers have been referred from and pay affiliates their due.

Commissions vary widely. The biggest are typically paid in respect of downloadable products, such as e-books and software. Commissions of 50% or more are routinely paid for such products. By contrast, with physical products, where the merchant’s profit margins are typically much lower, your commission may be just a few percent. Of course, with an expensive item, even a commission of a few percent can be a significant amount.

Large companies such as Amazon run their own affiliate programmes. Many smaller companies, however, use the services of affiliate marketing platforms to run affiliate operations on their behalf. Some well-known affiliate marketing platforms include ClickBank, Commission Junction and Awin. As a publisher you can apply to join any of these platforms and will then be able to promote any of the merchants listed on them (though sometimes the merchant will need to give their approval as well).

I will now look at the platforms mentioned in a little more detail…

Affiliate Marketing Platforms

  1. Amazon

Amazon is of course the world’s favourite online store. They sell a huge range of products, from books to clothing, cameras to garden equipment, computers to groceries.

Their affiliate programme is called Amazon Associates and any online publisher can apply to join. As long as your site looks reputable and has some relevant content, you are likely to be accepted.

Amazon does not offer especially generous commission to affiliates, currently starting at around 1% and going as high as 12% in limited cases. There are various good reasons for choosing to promote them, though. As well as the huge range of products on offer, Amazon have an excellent reputation for value and customer service. If you can get customers to the store, there is every chance they will buy something there.

A further consideration is that if a customer makes other purchases at the same time, you will also receive commission for these. In the run-up to Christmas in particular, when people often make multiple purchases, this can give your affiliate income a real boost.

  1. ClickBank

 ClickBank is an affiliate marketing platform. They list downloadable manuals and software in a wide range of categories, with commission of up to 80 percent paid by vendors. If you sign up as an affiliate with them you can immediately start promoting any of the thousands of products in their marketplace.

  • My top tip for new ClickBank affiliates is to focus on products with a “gravity” between 20 and 100. Gravity is a score given by ClickBank that shows how many affiliates have earned a commission by promoting that product during the last three months. Lower than 20, and it’s probably not selling very well. Over 100, and the competition from other affiliates will be intense.

  1. Commission Junction

While ClickBank focuses solely on downloadable products, Commission Junction is an affiliate marketing platform covering a huge range of products and services. They list thousands of merchants, in categories from travel to legal services, beauty to sports and fitness.

As a publisher you start by applying to join Commission Junction. Once you have been accepted, you can then browse the merchant offers and apply to promote any that catch your eye. Some merchants automatically accept all applications, but others like to approve affiliates themselves. This normally only takes a day or two.

Commission rates on CJ vary considerably, but they are clearly set out on the site. Once you have been approved, you will be able to download affiliate links and advertising banners for the merchant in question. You will be able to monitor sales by logging in to your CJ account. Payments are then made monthly by direct transfer to your bank account.

  1. Awin

Awin has lots of well-known consumer brands on board, and is a very popular platform among UK bloggers. It operates in a similar way to Commission Junction (see above). You have to pay a small fee (£5) to register as an affiliate with them, but this is refunded once you have earned enough commission to qualify for your first payout.

Blogging

In my view one of the best ways to make money from affiliate marketing is through blogging. If you don’t have a blog already, you can easily set one up at Blogger.com, the free blogging platform run by Google. Ideally, though, I recommend setting up your blog using a self-hosted WordPress platform (like Pounds and Sense). There is more of a learning curve with WordPress, but you have the freedom to configure your blog exactly as you want it.

The best type of blog for this purpose is a niche blog – that is to say, a blog devoted to a particular interest or activity. That could be anything from gardening to fishing, photography to computers. You can then write about this subject on your blog and include affiliate links to relevant products and services.

One of the best ways of doing this is by publishing reviews, with affiliate links to the product (or service) concerned. If a reader is inspired to buy after reading your blog review, as long as he/she visits the merchant’s site via your link, you will receive a commission.

Of course, if you’re going to do this, you will need to give a balanced review of whatever you are promoting. Emphasize its good qualities, certainly, but don’t be afraid to mention any shortcomings as well. Readers will be more inclined to believe you – and trust you in future – than if you simply hype any product you are selling to the skies.

  • Another tactic that can work well is to offer a free, downloadable bonus to anyone buying via your link. This can be especially effective with business opportunities and software products. You could offer a complementary product such as a user guide or case study. Ask people to email you a copy of their receipt and send them your bonus in the same way.

Naturally, for this type of marketing to work, you will need to attract a steady stream of interested visitors to your blog. A full discussion of how to do this is outside the scope of this post, but there is of course plenty of free information on this subject online (see also Taking It Further, below).

List Marketing

Affiliate marketing also works extremely well in conjunction with running a mailing list or online newsletter. If you have a list of people interested in a specific topic, you can email them with a series of affiliate offers relevant to their interest, and potentially make multiple sales to the same buyers.

Running a niche blog, as mentioned above, gives you a great opportunity to start building a list. All you need do is add a sign-up box on the front of your blog.

One thing I strongly recommend, though, is opening an account with a mailing list management service such as GetResponse or Aweber. These services handle subscribe and unsubscribe requests automatically, together with changes of email address. They also ensure that any would-be subscriber must click on a link in a confirmation email before being added. This ‘double opt-in’ method ensures you have proof they did actually subscribe to your list if any accusations to the contrary are made later.

There are many other benefits to using a mailing list service. For example, most such services will monitor how many people are opening your messages, and even let you selectively remail those who didn’t read them first time round.

  • As with affiliate reviews, another good tactic is to offer potential subscribers a ‘bribe’ for signing up. A short report or e-book could be a suitable choice. Choose a downloadable bonus if at all possible, as the process of getting it to your subscriber can then be automated.

Social Media

You can also promote affiliate offers through social media such as Facebook, Twitter and Instagram.

A word of warning is in order, however. The social media platforms all have their own rules about affiliate marketing and what they will and won’t allow. That means affiliate links may be frowned upon and in some cases banned. There are ways around this, e.g. you can convert your affiliate link using a link-shortening service such as the free tinyurl.com. This may work, but it’s not guaranteed! There are also rules to follow about disclosing promotional posts and/or affiliate links (see below).

A better method, in my opinion, is to use social media to help drive traffic to your blog posts, where your money-making affiliate links are located. Another option is to create a dedicated landing page which is designed to get visitors to click on your link (you could also use your landing page to sign people up for your newsletter). You will need your own blog or website to host a landing page, but you can also get basic landing pages for free if you join an autoresponder service such as Aweber.

Once you have a landing page, you can link to it from Facebook or other social media with no fear of being blocked or banned.

Affiliate Disclosure

In the UK (and most other countries) there is a legal requirement to make clear that you are using affiliate links for marketing purposes. This is to avoid consumers being misled.

In the UK this area is overseen by the Advertising Standards Authority (ASA). They publish guidelines which do not in themselves have the force of law but are based on the relevant laws.The guidelines are not always as clear or specific as one might like, but a guidance document relating to ‘influencers’ (which includes bloggers and social media personalities) can be downloaded here.

The main point made in the ASA guidelines is that it should always be clear to a visitor to your website (or whatever) when they are reading an advertisement or clicking on an affiliate link. There are no hard and fast rules about how exactly this must be done, so different people take different views. Personally with Pounds and Sense I have a general Affiliate Disclosure page, and also include a separate disclosure paragraph in any post with affiliate links or other commercial associations. At the start of each post it will also say if it is (for example) a sponsored post. I have never encountered any problems using this approach, but obviously it is something everyone needs to decide for themselves based on the guidelines.

If you also use email marketing, you can (and almost certainly should) include a note near the end of every email such as, ‘The sender of this email has an affiliate relationship with the authors of the products mentioned and may receive compensation from them in the event of a purchase.’

More Top Tips

Here are a few more tips for maximizing your income from affiliate marketing…

  • Promote products you can genuinely recommend, preferably because you’ve used them yourself, or at least based on solid evidence.
  • Talk about what you like and don’t like. Be honest with your readers and build trust. People are far more likely to buy things you recommend if they have learned to trust you in the past.
  • Take any opportunity to promote products in passing, as well as in dedicated posts. For example, in a gardening blog, if you’re talking about a particular plant species, you might mention in passing a supplier from whom you have received good specimens in the past. Low-key recommendations such as this can be surprisingly effective for generating sales.
  • Don’t put all your eggs in one basket. Promote multiple affiliate products. Better yet, diversify across all income streams. In other words, use affiliate marketing, but also use other forms of income generation such as selling your own product, offering a service, or selling advertising space on your blog.
  • Although most affiliate offers involve a payment per sale, in some cases merchants will pay for other outcomes, e.g. a quotation request (for insurance perhaps). As you gain experience it is worth looking out for such offers to promote, as they can be very lucrative. The same goes for recurring subscriptions.
  • Create a ‘Tools I Use’ or ‘Things I Love’ page on your blog. Many readers will enjoy seeing a handy list of your favourites, plus it’s an easy way to promote some affiliate links.

Taking It Further

Once you have made your first few commissions from affiliate marketing, the chances are you will want to take it further to increase your earnings from it.

Key to this is driving more potential buyers to your website. I have provided some tips above, but if you want to boost your income to the next level, you might want to consider engaging an SEO (search engine optimization) company – like my friends at the UK-based Lojix, perhaps.

Lojix are a digital marketing agency offering affordable SEO, pay-per-click advertising management, PR, marketing and website design services. They say they will work with you to increase the number of leads that you get from your website, whether that is an increase in orders from an e-commerce site or an increase in sales leads for businesses that are service providers. They say they work with businesses that require just a local presence right up to companies that trade all over the world. I asked my colleagues at Lojix what were their top tips for boosting your income from affiliate marketing, and they came up with the following:

1. Don’t be lazy by copying and pasting descriptions of products you want to promote. If your marketing strategy involves getting organic visits – which should be top of your list – Google is likely to ignore your content if you do this and won’t rank your site high in their search results at all.

2. If you are just starting out with your site or blog you should probably go down the niche route, as trying to get organic visits from Google for popular products will be difficult.

I definitely agree with both these points. There is much to be said for researching search terms and targeting those that have reasonable traffic but not so much competition that it’s hard (or impossible) to compete. A reputable, professional SEO agency such as Lojix can assist with this. If you think they might be able to help you – without any obligation – please do drop them a line.

Closing Thoughts

Affiliate marketing is a great way to make money online, with a minimum of hassle and expense. It is therefore ideally suited to home-based entrepreneurs. The method can be applied in many different ways, though blogging and email marketing are especially effective.

It has a further advantage in that once you have published, say, a product review on your blog, it will remain there indefinitely, potentially generating further affiliate fees for you over a long period. One review I wrote some years ago on my former freelance writing blog (for a self-development product) made me well over £3,000 in total.

Obviously, not all of your affiliate promotions are likely to prove as profitable as this, but the beauty of affiliate marketing is that you can promote almost anything you like. If one offer doesn’t perform as well as you hoped, there is always something else you can try.

Good luck, and I hope you make lots of money from affiliate marketing!

As always, if you have any comments or questions about this article, please do post them below.

Disclosure: This is a sponsored post on behalf of Lojix.

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Hiro review

Win a £5 Amazon Voucher (or Other Mystery Prize) With Hiro

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Hiro is a brand new new mobile phone app currently offering a range of incentives just for downloading it and answering a few quick questions about the smart tech you have in your home.

Hiro say that in future they plan to offer members personalized discounts on home insurance and similar products based on their home technology – from Amazon Alexa devices to smart thermostats, doorbell cameras to smart locks.

Right now, though, there is nothing to buy. They are simply looking to build a community of people who may be interested in saving money on insurance in future. And to do this they are offering gifts for downloading the app and signing up. These range from £5 Amazon gift vouchers to £5/£10 Hiro credits, and lots of other weird and wonderful things as well. Here’s how it works…

Grab Your Free Prize

Start by downloading the Hiro app from Google Play or the Apple Store. Open the app and here is what you should see…

Hiro signup

Enter your first name, (mobile) phone number and email address in the appropriate boxes. Where it says ‘Referral code’ (highlighted above) please enter nic637, then tap on ‘Become a Hiro’.

You will then be presented with a short questionnaire about your use of smart tech in the home. When I did this, the app told me that with my modest complement I would be eligible for a 17% discount on my home insurance. That’s nice to know, though of course it won’t mean much until Hiro start selling actual insurance.

They say as well that even if you don’t currently have any smart technology, they will be making recommendations and special offers, and explaining the extra discounts the tech in question can bring you.

In addition, once you’ve answered the questions, we will BOTH be eligible for a prize (or mystery box, as they call it). Here’s the screen you should see…

Hiro prize

Just tap on the the orange box (see screen capture above) to see what you have won.

Of course, once you have signed up you will get a personalized link as well and be able to share this with friends and family. Any time someone signs up using your link, both of you will win a prize. As I said above, there is nothing to buy now and no obligation in future.

Good luck, and I hope you win something almost as exciting as a mansion full of puppies 🤣🤣🤣

As always, if you have any comments or questions about this post, please do leave them below..

Update 19th May 2020 – I have just heard that Hiro aren’t offering Amazon vouchers as prizes at the moment. Other prizes such as Hiro credits are still on offer.

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How to Make Money on Fiverr

How to Make Money on Fiverr

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Today I’m focusing on a money-making opportunity that is literally open to anyone. It involves advertising your services on a website called Fiverr.

What is Fiverr?

Fiverr is a US-based site that lets anyone advertise ‘gigs’ (tasks) they are willing to perform for five dollars – hence the name, of course. You are also allowed to charge more than $5 as you gain positive feedback and experience.

Gigs range from the serious (e.g. write a press release) to the creative (e.g. design a tee-shirt – see cover image) to the downright quirky (e.g. write your message, name or URL in chocolate). Most gigs are services that are delivered electronically, though there is nothing to stop you selling physical products if you wish (you can charge extra for postage).

Fiverr was launched in 2009, and they recently revealed that freelance earnings via the site now exceed a billion dollars. Whatever your skills or interests, there is bound to be a service people will pay you to provide there.

Of course, you may already have noticed one potential drawback. Five dollars is only around £4.03 at current exchange rates. And in fact it’s worse than that, because Fiverr’s fees and charges have to be deducted, meaning that you will only receive about $4, or £3.22, for each $5 gig you complete.

Read on, though, because there are techniques you can use to boost your Fiverr income to something far more substantial. But first, you will need an account…

Getting Started on Fiverr

Joining Fiverr is straightforward (and free).

Navigate to the Fiverr homepage and at the top, click on ‘Join’. A sign-up box will then be displayed.

Fill in the fields for your email address, username, and password (your choice). Read and accept the terms of service, and complete the inevitable captcha form. Then click the Join button. You will see a page displayed with a message that says ‘Activation link was emailed to you’.

Check your email for a message from Fiverr with the subject line ‘Fiverr: Registration Confirmation’ and click the link inside the email message. You should then be taken to a page on Fiverr that says, ‘Account successfully activated. Hey, this is a great time to edit your Profile.’

Congratulations! You’ve completed the registration and sign-up process for Fiverr. Make a note of your user name, password, and the email address you used to sign up so that you can log in again in future.

One other thing you should do as soon as possible is to fill in all the fields in your profile, including a picture of yourself. It’s important to have a completed profile, so that potential clients can see the person they will be dealing with. In addition, your gigs will only be eligible for extra (free) promotion on Fiverr when your profile has all the blanks filled in.

Finally, you will need a Paypal account to receive your fees. If you don’t have one already, you can sign up here. As you will be running a business, you should get a business account rather than a personal one. Note that Fiverr operates primarily in US dollars, but with PayPal it’s very easy to change one currency in your account to another.

Listing Your First Gig

Once you’ve decided what service you are going to offer – spend some time browsing Fiverr for ideas if you’re not sure – you’ll want to list your first gig. Here are six tips for getting off to the best possible start…

  1. Very important – create a high-quality digital image that’s relevant to the gig you’re selling. This will be different from your profile photo. Make the image colourful, vivid, and expressive. It should stand out and draw a potential customer’s eye.
  2. Add keywords to the listing for your ad. This is important, too, as it increases the number of views your gigs will receive. The more views you receive, in general, the more sales you are likely to make.
  3. Write a thorough, easy-to-understand description of your gig. If you’re unsure how to do this, search for other gigs that are generating a lot of ‘stars’ and positive comments.
  4. State a realistic length of time it will take you to deliver the product. Get this wrong, and the negative comments will affect your ability to sell that gig in the future.
  5. Provide clear instructions to the buyer. This will save you hours of answering unnecessary emails from customers. Tell them exactly what they must do, how they should do it, and what they can expect. If you still receive the same questions repeatedly, add another sentence or two to your instructions.
  6. Consider creating a video to introduce your gigs.

The latter is becoming more and more common on Fiverr. For some types of gig nowadays, having a ‘gig video’ is virtually obligatory. In your video you can talk about (and preferably demonstrate) the service you are offering.

As well as adding interest to your listing, using a video will increase the exposure to your gig, not only on Fiverr, but in the search engines as well.

You can also use YouTube to promote your Fiverr videos. As Google owns YouTube, there’s a good chance your Fiverr video will be shown high in Google’s search results for your selected keyword/s.

If you don’t have a dedicated video camera, you can, of course, make perfectly serviceable videos nowadays using a mobile phone, smartphone, or even a webcam.

Another option is to use screencasting software, such as the free web-based Screenr. This will allow you to record a video up to five minutes long showing whatever is on your computer screen with your spoken commentary over it.

And, of course, there is no shortage of people on Fiverr offering to create a gig video for you!

Promoting Your Gig

Fiverr is one of the top 200 sites on the internet and attracts huge amount of traffic – so the very fact of listing your gig there will ensure plenty of people see it.

You should, however, make an effort to promote it yourself as well, especially when you’re just starting out and don’t have much of a track record.

Every Fiverr gig has its own unique web page URL, and you should share this as widely as possible. Put it in your email signature, and post it on Facebook, Twitter and any other social networks you belong to. If you use online forums, include the link in your signature text (most forums will permit this). If you’re a blogger, blog about it too.

As mentioned, it can also be a good idea to create a gig video and post it on YouTube. This is another site that generates huge amounts of traffic, and can provide another route for potential buyers (and search engines) to find you.

Techniques for Boosting Your Income

At first glance the earning potential of Fiverr looks limited. But with a little imagination, you can effectively boost your returns many times over. Here are three top techniques you can use…

  1. Do the Work Once, Sell Multiple Times

This is a technique anyone can use, even if they are brand new to Fiverr. For example, you could write a short report or e-book and sell it through the site multiple times. This is slightly against the spirit of Fiverr, but I’ve seen plenty of people doing it. Here’s one current example…

‘I will list ten great under-appreciated horror movies by cult and old-school movie directors for you and write a brief synopsis for $5.’

I assume this individual has already written his report and simply sends it to anyone who pays the $5 for it.

One top tip here is to make it sound as if you are personalizing your offer for each recipient. As in the example above, refer to the reader as ‘you’ and explain exactly what you (and your report) are going to do for them. Essentially, by this method, you could sell the same report dozens of times, potentially making hundreds of pounds or more from a single short report.

  1. Offer Multiples and Extras

This is really the key to making big money on Fiverr. ‘Multiples’ simply means that a client can buy the same gig from you multiple times (e.g. if you are offering logo design for $5, they could buy five different logo designs for $25).

Extras are additional features you offer on top of your basic gig. For example, someone offering to write a 250-word blog post for $5 might offer a 500 word article for $10, and so on.

As a newbie on the platform you will be quite limited in the multiples and extras you can offer. Currently you can offer just two gig extras ($5, $10 and $20) and five gig multiples

Once you have ten gigs on Fiverr completed with no complaints against you, you will be promoted to what the platform calls Level One. At this point you can add more multiples and extras to your gigs. The most you can charge for extras is $40 at Level One, and $50 at Level Two (for which you require 50 completed gigs).

You can read more about Levels on Fiverr, what is required to achieve them, and the benefits of reaching any particular level on this page of the Fiverr website.

As an example, a Level Two children’s book illustrator by the name of Yahyadaan (see screen capture below) is currently offering to draw a picture in black and white for $5. Paying $15 gets you a colour illustration, and $30 gets you a full colour illustration with ‘high quality detail’ and commercial use allowed. You can also pay an extra $10 for rapid delivery (within a day). The latter is a very common extra, incidentally, and in effect triples your fee for a basic $5 job.

Fiverr exampleThe ability to offer multiples and extras greatly boosts the money-making potential of Fiverr, so it’s well worth putting in a bit of extra effort with your first few gigs to ensure you get good feedback and are quickly promoted to the higher levels.

  1. Ask for a Tip

Buyers on Fiverr generally realise they are getting a good-value service, and many are happy to pay a bit extra to recognize this. This applies especially with US clients, as tipping there is pretty much a way of life!

There is an etiquette to asking for a tip on Fiverr, and you shouldn’t just demand one. The preferred approach is to set up a separate ‘tip gig’. This is just like any other gig, except you don’t have to do anything in return.

Just include a link to your ‘tip gig’ when delivering your gigs and let clients decide whether to pay. If you have given good service, there is every chance they will. As an example, here is a link to a tip gig for a Fiverr member I worked with a few years ago, although I see that her account is on hold (maybe she has moved on to bigger and better things by now).

By using the techniques set out here, you should realistically be able to generate a substantial part-time or even full-time income on Fiverr, while doing something you enjoy from the comfort of home.

  • Although in this post I have focused on making money from Fiverr, of course it can also be a great way of getting assistance with a wide range of entrepreneurial and personal projects. I have hired other Fiverr members on various occasions for tasks ranging from designing a banner ad to removing malware from this blog after it was hacked. In general I have received excellent service for keen prices. And while on the subject, I highly recommend the WordPress specialist named Zerotech who came to my rescue in the aforementioned hacking attack and got my blog back to normal within 48 hours 🙂

Good luck, and if you have any comments or questions, as always, please do post therm below.

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Make an Extra Sideline Income With YouGov

Make an Extra Sideline Income with YouGov

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Today I’m spotlighting another survey site that offers the opportunity to generate a sideline income.

You may well have heard of YouGov already, as they often run opinion polls on political preferences and other current issues.

YouGov are always on the lookout for new people to join their panel and complete surveys via their website. Naturally, they provide financial incentives for doing this.

How Does It Work?

For each survey you complete on YouGov, you are allotted points. For a typical survey taking 10 to 15 minutes you will get 50 points. Of course, the longer the survey, the more points you will receive.

You can complete surveys on a computer, smartphone or tablet. You will be notified by email of new surveys you are eligible for, though it’s also worth logging on regularly to see the full range of surveys currently available.

Once you have accumulated 5000 points you can redeem them for a £50 fee. YouGov refer to this as a ‘cheque’, but the money is actually paid direct to your bank account.

To get 5000 points you would need to complete 100 fifty-point surveys, so this is clearly not a get-rich-quick opportunity. Nonetheless, the surveys are generally interesting and not too demanding to complete. And you will also have the satisfaction of knowing that your responses will ultimately influence decision-makers in government and the private sector. You can see some example media coverage of YouGov surveys in the screen capture from the website below.

YouGov surveys

How Do You Join?

Joining the YouGov panel is very simple. Just click on this referral link (see below) and complete the short online application form. Acceptance is normally automatic, and you can start earning points immediately.

Disclosure: if you join YouGov via my link I will get 200 points credited to my account (worth £2). If you join YouGov you can also refer other people and earn extra points as well. It all helps get you closer to that next £50 payment!

As always, if you have any comments or questions, please do leave them below.

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Property crowdfunding

Is This a Good Time to Invest in Property Crowdfunding?

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Right now it’s difficult for savers and investors to know which way to turn. World stock markets have been in free fall, while bank and building society interest rates are at an all-time low.

Regular readers will know that I’m something of a fan of property crowdfunding and have invested through a number of such platforms (notably The House Crowd, Property Partner, Crowdlords and Kuflink). For anyone seeking half-way decent rates of return, I believe they represent an opportunity worth considering at least, especially in the current uncertain economic climate.

But before I come to that, a few words for those new to this field…

What Is Property Crowdfunding?

As the name says, in property crowdfunding a number of investors pool their money to invest in property and share in the returns pro rata to the size of their investment.

In the last ten years a number of property crowdfunding platforms have been launched to facilitate this. As well as publicizing such opportunities, these companies typically identify suitable properties, advertise and administer projects, and manage properties once they have been purchased. They also distribute payments due to investors from rent received and (eventually) from selling up. Unlike ordinary buy-to-lets, property crowdfunding projects are typically hands-off, passive investments.

There are various methods of property crowdfunding. The traditional method (if you can describe something that’s been around for under ten years as traditional) is equity crowdfunding. Here investors’ money is pooled to buy a house or larger property. Investors then (usually) receive rental income in proportion to the amount they invested plus a share of any capital gains when the property is sold.

The other main method is debt crowdfunding. Here investors lend money to a landlord or property developer so that they can complete a particular project. The money might be used for a bridging loan, or to make improvements to a property prior to selling or remortgaging it. In this type of crowdfunding, the investors never actually own the property. They play a role similar to a bank, lending money and (all being well) being repaid with interest once the project is concluded.

There are also development projects, where investors’ money is used to fund larger-scale property developments. This might involve building a new property (or properties) from scratch, or perhaps converting existing buildings to a new use. Either way, if all goes well, at the conclusion of the development the investors get their capital back along with interest. Development crowdfunding is riskier than equity crowdfunding, but the profits to be made can be bigger.

Property crowdfunding is a form of investment, and like all investments it carries risks. Clearly it’s not as safe as bank or building society savings (which are covered up to £85,000 by the Financial Services Compensation Scheme). All investments are though secured against bricks and mortar, so in the event of a borrower defaulting you should still get your money (or most of it) back once the property concerned has been sold.

The rates of return with property crowdfunding are significantly higher than those from banks and building societies, and they’re also relatively unaffected by fluctuations in the stock market. Property crowdfunding isn’t a way of hedging equity-based investments directly, but it does help spread the risk.

Property and the Coronavirus

These are undoubtedly challenging times for property investors, be they traditional buy-to-let landlords or property crowdfunders.

Even before the virus struck, property prices were at best steady or going down. And measures taken by the government in the last few years, including progressive cuts in mortgage interest tax relief and an additional 3% stamp duty on buy-to-let properties (dubbed ‘The Landlord Tax’) considerably reduced the attraction of buy-to-let for private landlords especially.

The coronavirus crisis has added a whole new layer of difficulty. In particular, measures taken by the government to mitigate the worst effects of the crisis have hit both tenants and property owners hard. Many tenants are obviously suffering financial hardship, and may therefore be having difficulty paying their rent (and other bills). Tenants are, though, currently protected from eviction, and landlords are required to provide rent holidays where appropriate. These measures are sensible and humane, but at a stroke they have reduced or cut entirely many landlords’ income streams, and there is no government scheme to assist them. Obviously I don’t expect many tears to be shed for landlords, but life has undoubtedly become a lot more challenging for them.

In addition, due to social distancing and the lockdown, only limited construction work is continuing. It’s also difficult (or impossible) for surveyors and valuers to do their jobs, or for potential buyers to visit and inspect homes and other properties. All of this means that to a great extent the UK property market has currently ground to a halt.

Despite that, it’s not all bad news. At some point – maybe quite soon – the lockdown restrictions will be eased. The government is (rightly) keen to get the economy moving again as soon as possible. And there are still plenty of people looking to move home, buy property, begin new development projects, and so on. Much as the depressed state of the stock market has presented opportunities for those willing to take a chance on buying now while prices are low, there is certainly a case that property will bounce back in the coming months and years too, rewarding those who invest in the sector now.

Property Crowdfunding Opportunities

Clearly property crowdfunding investors are not immune to the effects of the coronavirus crisis. Developments and sales have been delayed, and in some cases at least rental income has been reduced. It’s quite possible – likely even – that in the longer term the rate of defaults on loans will go up too.

Nonetheless, property crowdfunding investors are unlikely to be as badly affected as private landlords. For one thing, if they are sensibly diversified across a range of properties (and platforms) they won’t be as susceptible as someone with a single buy-to-let. And like all property investors, their money is secured by bricks and mortar, so they will get it back (or most of it) eventually – though in the current crisis, that might take some time. For most property crowdfunding investors at the moment, sitting tight is likely to be the best (or only) option.

As I said above, the crisis is also creating opportunities for those who believe that property will prove to be the resilient investment it has generally been in the past. Rather than prolong this post too much, I will focus my attentions on the four platforms I am currently invested in, and which I am therefore most familiar with.

  • Property Partner

Property Partner is an interesting case. They have just announced that they are suspending all dividend payments for the next three months (potentially longer). This is, of course, mainly money from rent received, which (for reasons stated above) is likely to take a hit in the coming months. Property Partner say they are taking this action to ensure that investors are protected in the longer term and all properties have sufficient cash reserves to cover any necessary expenditure.

As I said in this post a few months ago, many of the properties on Property Partner are coming up to their five-year anniversaries. This is a significant milestone, because after a property has been owned for five years, all investors have the chance to exit at a fair market price (determined by an independent surveyor). Property Partner have said they are suspending this process until June at the earliest.

You can still buy and sell properties on Property Partner’s secondary market, and on the face of it there are some good-value buying opportunities here, with properties listed at up to 25% off their current valuations (see screen capture below).

Property Partner secondary market

In theory, you could buy shares in these properties on the secondary market at a big discount, and sell them at their current valuation for a good profit when the five-year sale process is reinstated.

Unfortunately it’s not quite a straightforward as that, though. For one thing, the current valuations were made before the coronavirus crisis hit, so they may no longer be an accurate reflection of a property’s value. In addition, the five-year exit mechanism depends on other investors wanting to buy the shares at the valuation stated. Failing that, the property will be sold on the open market, but that could take a long time in the current economic climate. Neither is there any guarantee what price would be achieved.

My personal view is that I do believe property prices will bounce back but it may not be for quite a while. I am looking seriously at some of the buying opportunities on Property Partner’s secondary market where I think they represent good value in the medium- to long-term, but I am not rushing to invest at the moment.

Please check out my Property Partner review for more information about the platform.

  • Kuflink

Kuflink is another property crowdfunding platform I have a soft spot for. Although I don’t have huge amounts invested with them, so far all of my investments have paid out as promised, with just a short (one-month) delay in one case.

Kuflink is a property loans platform. So far anyway I have not heard of any defaults, although the longer the crisis continues, the greater the risk this may happen. Nonetheless, based on my experiences to date, I am continuing to invest (cautiously) with them. In particular, I like their new secondary market, where you can buy loan parts from other investors who want to sell up early (see screen capture below)

Kuflink secondary market

As you may imagine, this has been happening a lot recently, as many investors have wanted (or needed) to access their capital urgently. This has created short-term buying opportunities which I have been busily taking advantage of. These loan parts typically have only a few months to run, so you can expect to get your capital back quite quickly (and can then reinvest it). Only loans in good standing with monthly repayments up to date may be listed on the secondary market, so that offers some reassurance against default – though of course it is by no means a guarantee.

Secondary market aside, Kuflink also still has a steady stream of new investment opportunities coming to the table. Of all the property platforms, they appear to be the ones least affected by the current crisis. I am not exactly sure how they have achieved this, but obviously I hope they continue to do so!

If you haven’t invested in Kuflink before, it’s also worth mentioning that they have a generous welcome offer which is still operating. You can earn up to £4,000 in cashback with this. See my Kuflink review for full details.

  • The House Crowd

The House Crowd is actually the first property crowdfunding platform I invested with. My experience with them has generally been good, although as mentioned in my House Crowd review there have been some delays and defaults.

Although they started as a traditional crowdfunding platform, The House Crowd have increasingly moved towards development projects, and these have inevitably been hit by the current crisis. THC say that at present they are following a strategy of ‘prudently maintaining The House Crowd platform to ensure its continued and efficient operation as we see our way out of the other side of the lock down.’

That means there are fewer investment opportunities on THC at the moment. You can though if you wish still invest in their automatically diversified ‘Auto-Invest’ products, with target interest rates of 5% (Cautious) to 7% (Bold), or the new THC Fusion account, which offers even greater diversification with a target interest rate of 4% to 4.5%. More information about these can be read on the House Crowd website.

At the time of writing THC also have a couple of development projects open for investment, including their flagship project The Downs in Altrincham town centre, paying a target rate of 10% per year (see screen capture below).

The House Crowd Downs

Personally I am not investing any more money in The House Crowd at the moment, but I am keeping this under review. You can read my full review of The House Crowd here

  • Crowdlords

Finally, Crowdlords say they have experienced a significant reduction in investment levels since February, which they put down to uncertainty caused by the pandemic. They do still have a couple of lending opportunities listed (see capture below), but not much else. I guess like The House Crowd they are hunkering down and waiting for the current restrictions to be lifted and the property market to start moving again.

Crowdlords investments

Again, I am not currently planning to invest any more in Crowdlords, but am keeping an eye on any opportunities that may crop up in the months ahead. You can read my full review of Crowdlords here.

Final Thoughts

I thought I’d close by sharing a couple of nuggets of information I found while researching this post.

First, the ratings agency Fitch has downgraded the rating of UK debt to AA-. However, Fitch estimated growth next year would bounce back to 3 percent if the UK can begin to unwind the measures to tackle the health crisis in the second half of the year. The UK’s Coronavirus Job Retention scheme – a three-month programme to support employees hit by the pandemic – will cost about 1.3 per cent of GDP, according to Fitch estimates.

Second, estate agents Knight Frank have predicted that many house sales will be lost this year and the UK’s property market will see little to no growth in 2020. However, a sharp recovery has been predicted for 2021. Liam Bailey, global head of research at Knight Frank, said, “We expect a revival in activity to continue, with volumes next year expected to be 18 per cent above the level seen in 2019.”

All of this (and other sources) suggests that while property markets are in the doldrums now and probably for most of 2020, there is every chance that by next year we will see a recovery. There are undoubtedly good opportunities on offer in property investment now if you agree with this evaluation and are able to be patient in the shorter term.

In any event, if you’re looking for better returns than the banks and lower volatility than the stock markets, then property generally – and property crowdfunding in particular – remains in my view well worth considering as part of a balanced investment portfolio.

As always, if you have any comments or questions about this post, please do leave them below.

Disclosure: I am not a regulated financial adviser and nothing in this post should be construed as individual financial advice. You should always do your own ‘due diligence’ before investing, and seek independent financial advice if in any doubt how best to proceed. All investment carries a risk of loss.

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RateSetter Review

Ratesetter: My Review of This P2P Lending Platform

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Updated 11th June 2020

Around two years ago I invested some money in the Ratesetter P2P lending platform, partly – I admit – to take advantage of their welcome offer (the current welcome offer is discussed below). So today I thought I would share my thoughts about it.

Ratesetter is a P2P platform that puts would-be lenders and borrowers together, obviously taking fees for doing so. It is one of the longest-running P2P lending platforms, having launched in 2010. They are one of the ‘Big Three’ P2P lending platforms, which also include Zopa and Funding Circle.

In this post I am looking at Ratesetter from a lender’s (or investor’s) point of view, but of course anyone can apply to borrow via Ratesetter too.

Types of Investment

Although investors lend money to borrowers via RateSetter, the actual lending is done behind the scenes. So from an investor’s point of view, RateSetter looks and works much like a bank or building society. Importantly, though, investors with RateSetter don’t benefit from the protection bank and building society savers receive by law in the UK via the Financial Services Compensation Scheme. More about this shortly.

There are three main investment products available on RateSetter. They are named Access, Plus and Max.

The Access product, as the name indicates, aims to offer quick access to your funds without any fee. The Plus and Max products pay more interest but you have to pay a ‘release fee’ of 30 or 90 days’ interest respectively if you wish to withdraw from them.

The terms and conditions for each account are summed up in the screen capture below.

Ratesetter accounts 2020

Note that the interest rates on Ratesetter can vary, and the rates on offer when you read this may be different from those shown above.

The Access product is the closest equivalent to an ordinary savings account. You can ask to withdraw some or all of your money at any time without penalty. It’s important, however, to note that this is NOT the same as an instant saver account with a bank or building society. Withdrawing does depend on there being other investors willing to take over your lending on the platform. Ratesetter say that to date investors have received their withdrawn investments within 24 hours on average, which does offer some reassurance.

  • There is also a ‘fair usage’ clause, which prevents investors from lending new money for 14 days after a withdrawal.

With the Plus and Max products you can also request withdrawals at any time. As stated above, however, in these cases a release fee is applied.

Provision Fund

As with all P2P lending, your money does not enjoy the same level of protection as bank and building society accounts, which are covered (up to £85,000) by the Financial Services Compensation Scheme.

Ratesetter does, however, have a provision fund which provides a safety net in the event of a borrower defaulting. In the ten years since it was launched no investor has lost money from defaults on RateSetter, which is pretty impressive (although obviously it doesn’t guarantee it couldn’t happen in future). The provision fund is paid for by a ‘credit rate fee’ which is paid by all new borrowers.

It’s worth mentioning also that provision fund protection extends equally across all loans. There is therefore no particular need to diversify your investments on Ratesetter, although you should of course diversify across other platforms and investment types.

The IFISA Option

You can also invest in Ratesetter through an IFISA (Innovative Finance ISA). This type of ISA for P2P lending gives you the same tax advantages as a cash or stocks and shares ISA, i.e. you don’t have to pay any tax on the profits you make.

Everyone has a generous annual ISA allowance of £20,000 (in the current 2019/20 tax year). This can be divided any way you like among the three types of ISA. So if you open a Ratesetter IFISA, you can still have cash and stocks and shares ISAs with other providers as well, so long as you don’t invest more than £20,000 in total. You can also only invest money in one of each type of ISA in any one financial year.

If you have maxed out your ISA allowance – or have invested in another IFISA in the current tax year – you still have the option of opening an Everyday Account. You can invest any amount in this, but of course the profits you make will be taxable.

2020 Interest Rate Cut

Due to the coronavirus crisis and the current febrile economic environment, RateSetter announced on 4th May 2020 that there would be a temporary reduction in interest rates for the remainder of 2020. During this time, investors will receive only 50% of their interest, with the other 50% going to the Provision Fund, for the protection of all investors. At current rates. that means the actual interest rates paid during this time will be 1.5% for Access accounts, 1.75% for Plus accounts, and 2% for Max accounts.

I have also heard (and confirmed with Ratesetter) that currently repayment requests are taking three to six months to process. If that changes I will update the information here.

Ratesetter Pros and Cons

Based on my experiences so far – and the results of some online research – here is my list of pros and cons for the Ratesetter P2P lending platform.

Pros

1. Fast, easy sign-up.

2. Low (£10) minimum investment.

3. Choice of investment terms

4. Quick and simple investment process.

5. Tax-free IFISA option available.

6. Provision fund protects lenders against loss (no investor losses at all to date).

7. Ability to access your money at any time (though with a fee when exiting the Plus and Max products)..

8. Customer service (in my experience anyway) is fast and helpful.

9. NEW! A free £100 added to your account for new users who invest £1,000 and keep this invested for a year (see below).

Cons

1. Rates paid aren’t the highest in P2P lending.

2. Website isn’t always as intuitive to use as it should be.

3. Withdrawals are taking longer than usual to process due to increased demand following the coronavirus outbreak.

4. Temporary interest rate reduction by half to help boost the Provision Fund (see above)

Conclusion

Overall, my experiences with Ratesetter so far have been good. My initial deposit was matched within 24 hours and has been generating the promised returns ever since. I reinvested my bonus payment into the platform and this is earning interest as well.

As mentioned earlier, P2P lending does not enjoy the same level of protection as bank and building society savings, which are covered (up to £85,000) by the Financial Services Compensation Scheme. Nonetheless, the rates on offer at Ratesetter are significantly better than those from most banks and building societies. And the existence of a substantial provision fund with a strong record of protecting investors from losses clearly offers reassurance. Based on its past record and the protections in place, Ratesetter appears to be one of the safer P2P lending platforms.

It’s also reassuring that you can access your money any time – this can be an issue with property crowdfunding platforms in particular, as liquidity in these platforms can be limited. With the Plus and Max products you will be charged for exiting early, though, so invest in these only if you are pretty confident you won’t be needing the money within the next few months.

On the negative side, the current three to six month delay in withdrawals, and the halving of the rate paid to investors, is clearly disappointing. I understand that RateSetter are doing this to protect the business in the longer term, but it obviously it reduces the attraction of investing with them currently (though see Welcome Offer, below)

Clearly, no-one should put all their spare cash into Ratesetter (or any other P2P lending platform). Nonetheless, it is worth considering as part of a diversified portfolio. Not only are the rates of return higher than those offered by banks and building societies, they are relatively unaffected by ups and downs in the stock market. P2P lending isn’t a way of hedging your equity-based investments directly, but it does help spread the risk.

Welcome Offer

Currently if you are new to RateSetter you can get £100 added to your account for free just by signing up and depositing £1,000. Full terms of the offer are reproduced below, and you can also find them on the RateSetter website.

You can take advantage of this offer so long as you

  • have not previously registered with RateSetter
  • deposit a minimum of £1,000 through the RateSetter ISA or Everyday account and this is matched within 56 calendar days of opening an account
  • keep a minimum of £1,000 invested for 1 year

Your bonus will be credited to your Everyday Account and invested in Ratesetter’s Access product within 30 working days of qualifying. You can ask to withdraw your money at any time, but you must keep a minimum of £1,000 invested for 1 year to qualify for your £100 bonus.

My Thoughts: This is a great offer from RateSetter if you are new to the platform. If you invest £1,000 and keep it there for a year, then including the £100 welcome bonus you will get a total return of at least 12 percent for the first year, even allowing for the temporary 50% rate cut. As a matter of interest, this is the same welcome offer I took advantage of when I signed up with RateSetter two years ago, and my bonus £100 was credited without any issues (or prompting from me) twelve months later.

Clearly, this is a generous promotional offer by RateSetter and I assume it won’t be available forever. If you want to take advantage, therefore, don’t wait too long. I will remove this information if/when I hear the offer is no longer valid.

As always, if you have any questions or comments about this post, please do leave them below.

Note: This is a fully revised and updated relist of my original (2018) RateSetter review.

Disclosure: this post includes affiliate links. If you click through and make an investment at the website in question, I may receive a commission for introducing you. This has no effect on the terms or benefits you will receive.

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Make Money Selling Arts and Crafts Online

Guest Post: Make Money Selling Arts and Crafts Online

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Today I am pleased to bring you a guest post from Cora Harrison, a UK blogger and vlogger (video blogger) whose website is called The Mini Millionaire.

Cora says she loves to explore new ways of making money, both online and offline. She has a particular interest in online selling (and reselling) and there are many posts on this subject on her blog.

In her guest post today she reveals how anyone with an interest in creating arts and crafts can boost their profits – potentially many times over – by selling their work online.

Over to Cora, then…

 

If you love creating arts and crafts products, you can of course sell them at local markets or craft fairs. If you are looking to sell more and make (much) more money, however, you should definitely consider selling online as well.

There are various ways you can display and sell your work online. Here are some of the most popular.

Your Own Website

Selling arts and crafts on your own website is probably the single best way to sell your hand-made items online.

Having your own website will allow you to contact customers directly, grow your brand, and avoid the fees charged by third-party platforms like Etsy and eBay. In addition, you will not be competing directly with other craftspeople selling similar items to the same pool of customers on the platform.

For this to work, however, you will need to create an attractive, professional-looking website. You will then need to drive traffic to it, using techniques such as search engine optimization (SEO) and perhaps paid advertising. You can use online website building tools such as Wix or Shopify to create your site or hire a professional website designer.

Selling on Etsy

Etsy is an online marketplace dedicated to hand-crafted items. It is known for vintage, unique and custom-made items. It is easy to use, so you can set up your store and sell your crafts online in no time. Many would-be buyers of hand-made products look on Etsy before going anywhere else. Customers can pay by various methods, including PayPal and Google Pay.

On the minus side, many other artists and craftspeople also use the platform. This means it can be hard to sell common items. In addition Etsy charge about 5% of the sales value as a transaction fee every time you make a sale. You also pay about $0.20 for each item you sell. PayPal (the most popular payment method on the platform) also charge a fee for processing payments. All of these fees and charges will eat into your profits.

Facebook Marketplace

Facebook Marketplace is a prime location for selling hand-made crafts products locally. Given that Facebook has a massive user base, you can reach many potential buyers in your area by posting your items there. Posting items is free and you can add up to 42 images of your product in every sales post. The post will also include a description of the product, your location, and the price of the item.

While there is no limit to the number of posts you can make in a day, Facebook may limit posting to avoid spamming the page with similar ads. You have the option of sharing posts on your wall so that your friends may see the posts you have shared in local buying and selling groups. Potential customers will message you for more information and selling terms. The Marketplace is available on the web-based version of Facebook and as an app.

Selling on eBay

eBay is of course primarily an auction marketplace where sellers post items and sell them to the highest bidder. However, you can also create fixed-price listings. It is therefore a good platform to sell hand-made crafts online. The platform uses PayPal as the payment provider for all transactions. Both eBay and PayPal have various fees that you will encounter.

You will also be required to pay a final value fee. The fee is applied at the end of the transaction after making a sale. The fee is a percentage of the purchase price. There are also shipping and handling fees. Shipping fees are based on the method chosen by the buyer unless for domestic shipping, where the fee is calculated from the cheapest shipping method.

You will pay the final value fee whether or not the client pays for the item. If the sale is unpaid, you can cancel the sale or report it as unpaid. Note that eBay will give you credit for this rather than a cash refund.

Why Selling Online is Beneficial

There are several reasons you should consider selling your hand-made crafts online compared with selling in person at craft fairs and so on (though you can of course do both).

First, as stated above, online selling exposes you to a much larger audience than in the case of a market stall. You can sell your items to potential buyers across the country – and further afield – with ease.

In an online store, there are no opening time restrictions. The store runs around the clock and customers can place orders at any time of the day or night, as opposed to a local venue with set opening hours. In addition, you can operate the business from anywhere and target potential buyers who are far away from your location.

An online store also requires less time and effort. Once you have set up your online store and posted your hand-made items, they will be seen whether you are online or not. This allows you to sell your crafts even if you are otherwise engaged.

An online store also has lower running costs than an off-line one. There are no utility bills, rent or other premises costs to pay. You can run your online store from your kitchen, living room or bedroom. All you need is a laptop or desktop computer with an internet connection.

Effectively Selling Your Items Online

  • The Quality of Photos Matters

Just like in an off-line store, in an online store your hand-made crafts need to look good to appeal to customers. It is therefore vital that you take clear, sharp photos of your items. You can take them from different angles to give the customer an all-round view.

A modern smartphone should produce good-quality images in ambient light, but place your items on a white surface to give them a professional look. You can also use image-editing software to make the image ‘pop’.

  • Give Your Items a Perfect Description

Since you will not be there to explain the features of your product in person, it is important to provide a good description alongside your image. Ensure that the customer gets a mental image of the item without getting too sales-y. Most platforms have a character limit within which you can write a description. Use this opportunity to explain all the features that might be of interest to a potential buyer.

  • Keep Checking Your Site Regularly

Keep checking the platform where you have posted the item regularly for customer queries or orders. If the account is linked to your email address, you can have ‘push notifications’ set on your phone so that you know when there is activity relating to your item. The ability to respond quickly to queries will boost your reputation and prevent you from losing customers.

You may wish to post on more than one platform to increase your exposure. Try to estimate the return versus the cost of placing ads on multiple platforms. Having many items listed rather than just a handful will increase your overall selling rates as well, so aim to build up your inventory as quickly as possible.

Good luck, and I wish you every success selling your hand-made arts and crafts online!

 

Many thanks to Cora Harrison (pictured, right) for some great tips and ideas.

Cora Harrison The Mini Millionaire

Selling arts and craffs (online or off-) isn’t something I have ever tried myself, but I know it will interest many of my readers, so I was delighted to receive Cora’s article.

Obviously, you need some artistic talent to do this, but you definitely don’t need to be Leonardo (da Vinci, I mean, not DiCaprio). For example, using inexpensive software you can create attractive printables, which could sell well on Etsy and similar websites. You can read my blog post on this subject here.

But if you really don’t feel that selling arts and crafts online is your thing, you can still make good money selling and reselling products of all sorts online, from DVDs and collectables to Lego bricks! Check out Cora’s Mini Millionaire site for much more information about this..

As always, if you have any questions about this article, for Cora or myself, please do post them below.

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Why I Donj't Promote or Recommend 20 Cogs

Why I Don’t Promote or Recommend 20 COGS

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Over the last few weeks I’ve received several queries about 20 COGS. I’ve also seen people asking about it on Facebook. Some of my fellow UK money bloggers have been promoting it as well.

I did try 20 COGS myself about 18 months ago. I didn’t like it and have therefore never written about it or promoted it (and I’m not now, so there are no affiliate links in this post). As it still seems to be generating a lot of interest, however, I thought I’d share my experiences (and opinions) about it here.

I guess I’d better start with a word of explanation, though…

What is 20 COGS?

For those who don’t know, 20 COGS is a home money-making opportunity. The way it works is that you undertake a set of twenty online tasks. Once you have completed all twenty as specified – and not before – you receive a cash reward. This is generally between £150 and £200, but you are likely to incur some costs in completing the tasks (e.g. paying for trial subscriptions) and these will need to be deducted from your reward to calculate your net profit.

The tasks are, of course, the twenty COGS in the name. COGS stands for Competitions, Offers, Gaming, Surveys. A typical task might involve signing up with an advertiser for a free or low-cost trial subscription (which you have to remember to cancel before they start charging the full monthly amount). Or it might involve signing up to an online casino site and wagering a set amount of money on their slot machines. It might also just involve filling in a (long) survey, but quite a few tasks do involve some financial outlay (with the risk of more if you don’t cancel in time).

My Experience

I saw 20 COGS recommended by a few bloggers I generally trust, so decided to give it a go. Unfortunately I didn’t prepare as well as I could have done, which was my first big mistake. In particular, I made the rookie error of giving out my own email address and mobile phone number.

I soon discovered that this was a serious mistake, as after the first few tasks I began getting spammed mercilessly. The spam emails weren’t so bad, as they were generally filtered out by my email program. However, my mobile phone became unusable due to the torrent of marketing calls and text messages I received. In the end I had no alternative but to bite the bullet, cancel my mobile number and get a new one. In my defence, I naively assumed that this wouldn’t happen due to GDPR and data protection rules – but when you sign up with 20 COGS these appear to go out the window.

I also had problems with some of the tasks. To start with, I couldn’t do quite a few of the gaming ones due to previously being a matched bettor. This meant I had already signed up with many of the websites concerned so I wasn’t eligible for the tasks in question. In those circumstances you can ask for a substitute task but this all takes time and in my case there weren’t enough replacement tasks available (although over time new ones do of course get added). As I mentioned earlier. this was about 18 months ago, so it’s possible there are more alternative choices available now.

I also had major reservations about the amount of personal information some of the survey-related tasks asked for – from holiday plans to dates of renewal for home and car insurance. Pretty obviously, this information was likely to be used for (unwanted and intrusive) marketing purposes.

Eventually, after completing about half a dozen cogs, I decided enough was enough and closed my account. That didn’t stop the spam, but at least I could breathe a sigh of relief that I didn’t have to do any more tasks. Of course, I got no money for the ones I had done, which I assume is one major way 20 COGS make their profits.

My Recommendations

As I said at the start, based on my experiences I don’t recommend signing up with 20 COGS at all.

It is an awful lot of hassle to go through for a probable net profit of £100 or so after costs are deducted. And you can easily end up with less than this if you forget to cancel a subscription (which is very easy to do).

If, despite all this, you are still tempted to give it a try, here are my recommendations…

1. Sign up via the link on Top Cashback. This will earn you an extra £1.20 cashback (at the time of writing).

2. Before starting, create a disposable email address and use this for all tasks. You could set up a new email address on Gmail or use a free disposable email service like ThrowAwayMail.

3. In addition, don’t use your real mobile number. You could use a pay-as-you-go SIM, or pick a number from https://fakenumber.org/united-kingdom. They have a list of UK mobile numbers that are not in use currently.

4. Keep detailed records of everything you do and when you do it. To avoid unwanted charges, it is clearly essential to cancel subscriptions before you have to pay the full amount (but after the qualifying period required by the advertiser). You might also want to set up automated reminders on your phone or computer to do this.

5. Read and follow all instructions carefully. Every advertiser on 20 COGS has its own specific requirements and you need to follow these carefully or you may not be credited for the task in question.

6. Take screenshots as you complete your tasks. If an advertiser disputes whether you completed a task correctly, you will then have visual proof that you did.

Finally, bear in mind that 20 COGS is a once-only scheme. After you have completed it, you won’t be able to do it again. It is not an ongoing money-making opportunity like matched betting or Prolific Academic, to take two random examples from the many I have covered on Pounds and Sense.

In Conclusion

As I said above, based on my experiences with 20 COGS I am not a fan and don’t recommend it.

It’s an awful lot of hassle to go through in order to earn £100 or so. And there is a very real risk of earning less than this if you make a mistake such as forgetting to cancel a subscription. There are also privacy issues, and you are potentially opening the door to a torrent of spam emails, texts, phone calls and more (though using fake/disposable mobile numbers and email addresses as recommended can reduce this).

Of course, this is just my opinion. I do know of people who have completed 20 COGS and (eventually) received a payout. If you are still on the fence about it, I recommend reading this comprehensive 20 COGS review by my colleague Adam who blogs at Money Savvy Daddy. Adam did actually complete 20 COGS and says he made about £100 from it. He is honest in his review about the time it took and the obstacles he faced along the way, however.

As always, if you have any comments about this post – or 20 COGS more generally – please do leave them below.

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