Global Cash Flow Network Review – Should You Invest Your Money in Global Cash Flow Network?

While some online money-making companies boast that you can earn thousands of dollars on the internet without any skills or prior training, there are also those that offer training programs for you to acquire entrepreneurial and business skills that you can apply to make money online. Mary Gersten founded the Global Cash Flow Network that specializes in a training program to train people to be Certified Media Placement Specialists. In case you’re wondering, a Certified Media Placement Specialist simply places media ads online. This may sound like a great opportunity to earn money from home, but should you invest thousands of dollars for this training course?

Going over a few Global Cash Flow Network reviews, you realize that most people are excited over the professional sounding title of Certified Media Placement Specialist. But if you scrutinize the sales copy, you will notice that this involves placing ads online. You will be using advertising programs that were developed by well-known search engines. A good example is Google’s AdWords.

This method of advertising is called Pay Per Click marketing. You sign up for affiliate products and set up ads for these products. The search engines direct traffic to your ads. In Pay Per Click marketing, you have to bid on search terms where you want your ads to appear. You make money from commissions earned whenever a customer purchases a product through your ad. To make a profit, you have to make sure that your sales earnings exceed your advertising expenses.

Why do some people say that Global Cash Flow Network is a scam? Pay Per Click marketing is absolutely legit, but there are those who feel that the network is not worth the money you pay. The CMPS course takes you through 3 levels of coaching and at each level you are urged to upsell to a new service and additional training. Mary Gersten’s network offers online help but all you get are more sales pitches trying to convince you to purchase more sales tools. These sales tools promise guaranteed traffic to your site but smart internet users know that you have to learn how to market and use proven strategies to drive traffic.

Another source of customer complaints arises from the fact that much of the training course focuses on showing you how to promote the CMPS course to other people. Viewed positively, the skills you acquire in promoting this training course can be applied to marketing other products. Some customers just find this irksome because it smacks of multi level marketing (MLM).

Should you invest your hard earned cash on this network? Unbiased Global Cash Flow Network reviews tell us that despite complaints some people have earned money using this training course. But many more have paid for it, worked hard, followed the instructions, and yet have less than nothing to show for their efforts.

Getting to the Equity in Your Business

Many business owners today are confronted with assessing the value of what they have or, more appropriately, may have left in their privately-held businesses. Consequently, most business owners are looking at their business to determine the value and how it can be extracted. This is a part of the exit planning process.

There are two very different aspects to getting the money out of your business. On the first hand, there is the income that you draw from the business in terms of salary, personal/business expenses, and bonuses that you pay to yourself and/or retirement plan savings. All of this constitutes money that’s coming to you from the cash flow of the business going towards the lifestyle that you have built for yourself. The second and much more important aspect, particularly in light of the recent economic condition, is getting to the equity – the illiquid part – of your business.

As a part of the exit planning process, an owner will want to know their Value Gap – i.e. how much money they need to extract from the business in order to maintain their lifestyle without the business. The chart below helps to illustrate this point. We see that Bill Brown has $1,000,000 saved for retirement but needs a little more than $7,000,000 to maintain his lifestyle. Bill’s Value Gap is $6,000,000. The question becomes, ‘How can Bill get to the equity in his business in order to close this Value Gap?’

Like most business owners, Bill is focused on running and growing his business (and surviving the current economic conditions). Bill has some money saved for retirement. However, as we can see, it is nearly impossible for Bill to extract enough ‘income’ from his business to meet his exit goals – Bill needs to get to the equity in his business.

{2009 Savings: $1,000,000} > {Value Gap: $6,027,783} > {2013 Asset Base Required: $7,027,783}

Essentially, the equity that’s in your business is representative of more than the accumulated earnings. It is representative of the value that somebody else would pay for it, so the question becomes, ‘How can you plan to tap into that equity over a long enough time period to draw it out to meet your personal goals?’

The first step is to realize that there are many ways to get to the equity in your business. You can find a buyer, groom a successor, or even create a buyer for the shares of your company’s stock. The most important part of this planning process is the recognition of the need to plan for your exit and to measure the amount of equity that you will need to extract from your business.

In today’s environment, the equity can be managed in many different ways. What’s important, first of all, is that you set a plan and an expectation as to how you can access that equity. The natural inclination is for a business owner to want to sell – to pull the equity out all at once. Today’s marketplace has fewer buyers than previous years, due mostly to the economy and the contraction of credit throughout the world markets. As an owner, you need to know that options other than selling the business are available but may require some creativity on your part. The key is to understand what somebody else would be willing to pay and identify that person. From there, we can go and take a look at how that other person would value what you have and how you would receive those ‘equity’ payments.

So, in Bill’s example above, he needs to achieve a net amount of $6,000,000 for the equity in his business in order to achieve his exit goals. If Bill were to sell the business, he would need to get an asking price in excess of $6,000,000 because taxes (both federal and state) are going to be owed, and advisory fees are going to be a part of the difference between what Bill ‘gets’ for his business sale and what he keeps. Like many owners, Bill is challenged by today’s lack of buyers and lower values. Therefore, he wants to look at alternative ways of getting to the equity in his business.

Bill may look at the option of selling a portion of the equity in his business to an Employee Stock Ownership Plan (ESOP). By selling a piece of the equity today, Bill can bolster his current savings (i.e. increase his financial readiness) while continuing to own a majority of the stock in his company. Although Bill will likely get a lower value for the shares sold today, he can begin to diversify himself away from the business and, potentially, receive important tax benefits that go along with the ESOP sale. This is a controllable way of getting to the equity in your business.

Bill may also look to his management team to assist him in extracting the equity from his business. Bill’s management team has the potential to continue to run the business in Bill’s absence. However, Bill has not started the conversation with these managers as to his future expectation that they will be so empowered. This is a delicate conversation to have with the managers because the future is too difficult to envision today. What this means is that Bill may decide to sell the company in four (4) years when the next exit window opens for him. So, he does not want to over promise his managers a future ownership stake that he cannot deliver. Bill should recognize that there are ‘higher level’ conversations that he can be having with his managers today which would make the company stronger, while also positioning those managers as potential successors to the business. When measured against what Bill needs to extract from his business, it may turn out that having his managers pay him out over time is his best option and he can build a stronger company in the meantime.

In conclusion, whether you’re looking to your managers to help you pull the equity out of your business, or you’re looking to sell to an ESOP, or you are biding your time, waiting for an outside buyer to arrive, it is important to have a concept of equity beyond just the cash that flows from your business to you. And from this very important concept and realization, you can begin to think of your business as the investment that it is and begin to create your exit plan to get to that equity and achieve your personal exit planning goals.

© John M. Leonetti

Starting a Home Based Business For Beginners

A home based business is almost anything you can make money with from home. Most of the multi million dollar mega companies that exist today started in someone’s basement or garage. With the advent of the internet, there is a never-ending list of different money making possibilities out there. They may not make you a millionaire but it is a great way to make some extra money in your spare time. Lots of people would love to go full time from home and leave the office for good, but it isn’t for everyone.

The hardest part of working from home is discipline. Almost everyone dreams of working for themselves, but few are prepared for the level of commitment that’s needed to make it happen. If you feel that working 40 hours a week for an employer is tough, then how do you think 80 hours a week or more will feel? No matter what business you decide you want to try, there won’t be anyone looking over your shoulder and telling you what to do. That may sound like perfection, but most people have problems finding direction without help. When you’re working for yourself, you need to find a way to solve every problem without someone else giving you the answer. You also need the discipline to make yourself keep going when you don’t want to, or before you know it, weeks and months will have passed without making any headway.

Starting a new business from scratch may not be the way to go at first. If you have a great idea or special skills you may have the makings of a future successful company, but you have to learn how to run a business before even getting started. Finding a way to produce a new product or service and replicate it is a big job; then you have to worry about taxes and employees and many other big concerns. Big business started as small business and grew over time. The larger and more successful your business becomes; the more of your attention and time it will need to stay alive.

A packaged business is a great way to get started working for yourself. Programs like Amway, Herbalife and Ameriplan are easy businesses to get into without investing your life savings. Working one of these programs can give you a good idea if you have the discipline to make things happen without someone else telling you what to do. Starting a business from scratch takes a lot of money and know how, but a packaged business is ready to go as soon as you are. They already have a good product or service, and they already have an established name and customer service routine. If you can make one of these work for you, then you are ready to move on to the bigger stuff. If you can’t make it work for you; at least you haven’t lost much money.

You are always better off doing something you want to do for a living. If you are looking for second source of income, or something to become your primary source of income, starting a home based business may be just what you need. Only about one in ten people can really make it work, but you won’t know if you’re the one until you try it. Nothing ventured, nothing gained; but even if it doesn’t work out you may find that you are happier working for someone else. Most small businesses start when the economy is at its worst. This may not seem like a good time to try, but Google, eBay and many others got their start when someone got fired and then got fired up.