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Thursday, December 31, 2015

The REAL Way to Make Money with Videos by Marc Charles

The REAL Way to Make Money with Videos by Marc Charles

8:11 AM

Hi;)

I received this question in 2012 and it's still relevant today, so I'm re posting a column on the topic.

YouTube is the master of the universe when it comes to online videos. This includes targeted traffic, average time spent on the site and ad revenue.

But believe me….YouTube is NOT the only game in town.

I’ll show you some ways to make money with YouTube which is applicable for the other online video sites too.

So let’s get this party started!

I’ll give you three easy, proven ways to make money with YouTube.

I agree most of the stuff you read online regarding YouTube money makers is a joke!

I’ll set the record straight for you.

Tactic #1 --- YouTube for Business

This opportunity involves making short YouTube video for businesses,
Charitable organizations and special-interest groups (like local Red Cross chapter). 

Most people realize they need a YouTube video, but almost no one knows how to make one.

Making YouTube videos for businesses is super easy!

In fact, it’s so easy a 15 year-old can do it! My daughter has started making YouTube videos for local restaurants. She got the idea from another girl on Twitter before she read my commentary or League of Power article!

Once of the easiest software apps for making (and editing) YouTube videos for businesses is Microsoft Movie Maker 2.6.

There are bunch of other programs available, including Sony’s
Movie Maker 10 and most programs are under $100 or free. 

But almost anyone can use Microsoft Movie Maker 2.6…it’s that easy.

Combine this software with a video camcorder and you’re in business!

On top of that, in only takes a few minutes to shoot and edit a top quality video. Practice makes perfect!

Heck….video editing is a nice skill to master even if you don’t want to make money!

Here’s the key to making money with YouTube for Business…

My recommendation would be to offer a local business, restaurant, (charity or special interest group) a complete YouTube Video package.

The video package could include a domain name, a simple website or blog,
and Google search strategy for $500.

If a business owner doesn’t want a domain, website or Google strategy you could offer a simple video posted to YouTube for $69 (more or less depending on the market).

The actual price point may vary from town to town, and market. But these would be good starting points in most locations.

Businesses need YouTube videos….but your ideal prospect would be a business owner already spending money on Internet marketing or online advertising.

Tactic #2 “How To” Videos with Backend Sales
One of the fastest growing sectors on YouTube is the “How To” videos.

There are MILLIONS of How To videos in the YouTube database!

You’ve probably seen these online…it’s about learning how to do anything, like how to wash a car, how to make a paper airplane, how to open an overseas bank account, how to study for a test and so on.

But very few people know “How to Make Money” with “how to” videos!

I discovered a great way to do it. I’ve taught this method at a handful of seminars and conferences. Most of the entrepreneurs who’ve heard this can’t believe how easy it is.

I can’t take all of the credit though.

My oldest son was working my office recently and I was ranting and raving about YouTube videos with a “million” views.

He said, “That’s peanuts”! Have you seen the “guitar” video”?, he asked with a silly grin.

“No”….I said sheepishly.

The “guitar” video on YouTube has more than 79 MILLION VIEWS!

Simply enter the word “guitar” in the YouTube search box and you’ll see it.

But the value of 79 million views comes into play when you can monetize the traffic and views.

The guy who developed the “guitar” video uses a great technique called “backend sales”. You can do the same thing.

The “guitar” video posted on YouTube includes a URL and short description. The description is “How I learned to play like this…”.


On the website GuitarMasterPro.net you can opt-in to receive a free guitar lesson.

But more importantly…..

They offer dozens of information products and videos….some free some pay.

This is back end sales at its best.

Granted, you’ve got to have video which goes nuts (viral)….most videos sit like a bump on a log!

But if you copy the essence of the most viewed videos on YouTube (like guitar) you begin see how to make it happen.

You can also build a “review” website of the “guitar” video and reap Internet wide traffic…then sell back end products.

Oh…by the way…you can also become an affiliate for GuitarMasterPro.net and make money this way too.

Tactic #3 Partner with YouTube and Grab a Slice of their Ad Revenue
Now you can partner with YouTube and grab a slice of the ad revenue pie.  The ad revenue is the generated when someone clicks ad next to your video. 

Granted, it takes a boatload of views…let alone clicks…to generate ad revenue on YouTube.
But if your videos receive respectable traffic….10k views per month and up….you will see some click thru and ad revenue. 

What videos receive the most traffic you ask? 

Well, videos like the “guitar” video I told you about do fairly well.

But all you have to do is search YouTube for the Most Viewed Videos, and you’ll find your answer.

You can advertise on YouTube too. This would be a type of YouTube arbitrage. You would advertise at one price point and split the ad revenue received in the partner program.


Marc Charles

***** Action Strategy *****

I’ve outlined three ways to make money with YouTube videos. Each of them is unique and can be very profitable.

Focus on the angle which best suites your objectives:

·        YouTube for Business
·        Develop “How To” Videos with Backend Sales

·        YouTube Ad Revenue Share



******Valuable Resources *******

Other Top Online Video Sites

More Video Revenue Share Opportunities


Saturday, December 26, 2015

How to Make Money with a Simple Product and Google's Help by Marc Charles

How to Make $10,000 Selling a Simple Product Online with Google and China’s Help!

7:01 AM

Dear Entrepreneur:

Check out my new Importing Fortunes promo.

Bob Maydonik makes $10,000 to $20,000 every month importing a simple product from China and selling it online.

He also secured a unique partnership with Google to design his AdWords campaign for him.

I talked to Bob on Monday about his little venture.

On top of that, Google provided advertising seed money for him to boot!

I’ll show you how Bob does it and how you could do something similar too.

As some of you know, I wrote a comprehensive home study course and e-book called China Wholesale Trader. An updated edition will be available soon from AWAI.

But know this…..

I’m not a rookie when it comes to outsourcing companies in China, and importing products for resale.

What’s more, my good friend and consulting client Phillip Sterling was in the process of launching a venture to export cigarettes to China and sell them under a “Mary Kay Cosmetics” business model, until his untimely death in 2004.

This was before all the “big boys” got ahold of  the strategy.

And so…I have a little insight into exporting products into China as well.


Here’s what Bob Maydonik did ….

Bob designed an oversized yoga mat which measures 6’ x 6’.

He called his company and product Square36.

This simple product makes $10,000-$25,000 per month for Bob Maydonik.

It took Bob about a year and a half to get this thing up and running, and become profitable.  You could do it much faster with the information in today’s issue!

Bob got the idea for an oversized yoga mat while doing the training program  P90X. He told me he was annoyed the size of typical yoga mats.

A New Site Opens the Door for You …..

With the idea in hand Bob he set out to find someone to design and manufacture it.

The he stumbled on Alibaba.com.

Alibaba.com is a Monster Resource for entrepreneurs to manufacture and import products from China.

Alibaba.com is one of the highest traffic business websites on the Internet.

I’m dead serious…..they have more than 6 million registered users and facilitate more than $6 billion dollars in transactions every year.

Bob located a company to manufacture the Square36 and export it to the US super cheap!

The next step was to get a website up and running…. here it is:


A website is the easy part.

Granted, a nice website with dependable ecommerce takes a little effort……generic templates won’t work.

But most entrepreneurs get overwhelmed with all the website stuff.

Focus on users and customers….NOT on your company, product or prices….and you’ll be fine.

Bob simply jotted down some ideas for his website and handed it to a freelance designer. It should only take a couple of days to develop a simple ten page website.

In fact, whenever you work with a webmaster, designer or programmer ALWAYS insist on completion date. If they can’t do it don’t hire them.

If you hire or retain someone with “artist tendencies” you could wait for years to get a website built!

I’m serious….I’m telling you this from experience on hundreds of ventures and websites.

Enough said.

The next thing Bob did was approach Google to buy keyword advertising.

But get this……..

Google built the Square36 AdWords campaign for them!

You heard right.

Most people don’t realize Google offers free consulting and assistance when it comes to setting up an AdWords campaign.

Yes…..Google wants your money…as much as possible.

But Google understands (better than most)  they can’t make big bucks over the long term without helping people make money.

On top of that, Google gave Square36 seed money credit to launch the product and the campaign!

One of the biggest mistakes Bob made (in his words) were the first twenty prototypes of the oversized yoga mat.

They bought a HUGE roll of PVC mat and asked the yoga supply wholesaler to cut them into 6′ x 6′ mats.

But the wholesaler ripped off their idea! This is fairly common but it always hurts.

In addition, the wholesale company grabbed the photo of Bob’s mat and took credit for it.

Bob quickly dealt with the situation by changing the color of our mat to black, increasing the density and thickness, and then embossing their logo on it.

Oh….Bob dumped the US wholesaler and went with a reputable company in China.

Bob mentioned the ripoff wholesaler has done a lousy job marketing their “knock off” product and so it hasn’t affected Square36 sales whatsoever.

A Million Dollar Lesson

Bob Maydonik learned a million dollar lesson about doing business in China.

When you do business in China the most important thing is the “connection”.

In other words, if you meet with a Chinese business partner and talk about your family for two hours! In the last ten minutes of a meeting the topic of terms and pricing might surface.

“If you take the factory manager out for beers you’ll get way better pricing & terms”, Bob said.

The business culture in China is built our “connections”, family, friends, and associates,

The biggest thing Bob learned about online marketing (and Google AdWords) is the time of day matters.

In other words, most people aren’t shopping online during their workday. The ads running on weekday nights always perform best.

Bob also said incorporating the cost of shipping into the price is the best way to go. Advertising “FREE SHIPPING” is very effective when it comes to Google AdWords campaigns.

Bob swears by the Alibaba.

He told me entrepreneurs new to this business should find a minimum of three manufacturers who can make what you want.

When you’re getting stuff made in China there’s a good chance the manufacturers will be in the same town (different towns seem to specialize in manufacturing one type of product).

If you can visit manufactuers in person, do it. Bob and his partner visited five factories for the Square36 mat. But only one of the five factories could actually do their project.

Bob registered his Internet domain (URL) with NetFirms.com. They host the domain at BlueHost.com.

Bob said the only thing he would you do differently is pick a product that’s easier to ship. A 6′ x 6′ yoga mat weighs about ten pounds. It’s as easy to ship as a pair of shoes or a DVD.

What’s more, you can fit a much smaller product in a Sea-Can, this would mean significant savings.

That’s it!

Bob saw a need, developed an idea, started SUPER small, found an inexpensive way to manufacture the product and import it. Then he got some help from Google to set up a profitable AdWords campaign.

You da man!

Please send me your thoughts, ideas, complaints or feedback. We read every comment, email, post and snail mail letter.

Regards,

Marc Charles
“The King of Business Opportunities”



 *** Action Strategy ***

Do you have an idea for a product?
Hold on quick draw!
Everyone has an idea for a product.
You need to make sure there’s an existing market for it.
Don’t try to invent or build a demand for something….it’ll cost you millions.
Instead, focus on products already selling in the marketplace.
Three tools I use are Google, eBay and infomercials. Search Google Products and eBay for products selling now. You can use Terapeak to find out what’s selling on eBay too.
Infomercials are a great resource too.
Do you know how much money it takes to develop, market and sell products through an infomercial? The answer is a boatload.
So….if you see repeat infomercials you can bet they are probably selling products like crazy.
Then go to Alibaba.com and find a company to make it for you, and import it.
Start small, test, and roll it out!

****Valuable Resources****


TradeKey (similar to Alibaba.com – excellent resource)
As Seen On TV (hundreds of commercials and infomercials)


Thursday, December 24, 2015

Seriously.....Get Paid to Cruise by Marc Charles

7:01 AM
Hi Guys:)
 
There are several ways to GET PAID to go on luxury cruises.

There are also dozens of ways to get DEEP discounts to places like Bermuda, the Caribbean, the Bahamas and even the Mediterranean.

I hosted a startup venture cruise recently and received $4500 for my services plus luxury accommodations. Sweet.

Cruising is expensive!

A 7-day cruise to the Caribbean can set you back $2500-$5000 per person (and up).

But some people don’t mind paying full retail, like my sister. She’s on a cruise as I’m writing this. The cost for the ticket and transportation was about $4,200.

I’ll show you how to get paid to cruise, and how to get DEEP DISCOUNTS if you don’t want to work.

On top of that, you won’t be forced into “off-season” trips, or third rate ships sailing into pathetic port-of-calls.

This has nothing to do with winning contests or sitting through ridiculous time-share promotions.

I’m talking about luxury cruises onboard some of the coolest ships on the planet!

And that’s not all……

In some cases your meals, entertainment and amenities will be included.

I’ll even show you how to stuff your pockets with savings of $1500 (or more) for your friends and family!

So lets’ get this party started…

The cruise industry has taken a big financial hit over the last 24 months.

Cruise experts claim the worst is over, and people are cruising again.

But the truth is the cruise industry has not recovered from the recession, the collapse in housing (mainly home equity lines of credit) and the plunge in the stock market.

For the first time in history luxury ships are sailing half full!
In some cases ships are running at 40% occupancy!

Mega-cruise ships like Genesis and Oasis of the Seas need 85% occupancy make money (according to a senior cruise director).

Cruise companies are extending huge discounts in an effort to turn things around.

Now don’t worry…

I’m going to show you how to cruise for FREE!

But I wanted to give you some insider’s secrets for getting great discounts for your family and friends too.

Internet travel “integrators” are offering 20- 45% off luxury cruises.

Travel integrators resell cruise packages to consumers on websites like CruisesOnly.com and Travelocity, or through “cruise agencies” like CruiseExperts.com.

What’s more, travel integrators also resell tickets for other companies, and earn a percentage of each sale.

Going Direct to Acquire Huge Cruise Discounts

We can’t overlook the benefits of going direct to a cruise company to get deep discounts.

Granted, it takes street smarts when approaching cruise lines direct. But it can be done! I’m living proof!

For example, I wrote to the Marketing Director at a top cruise line and proposed a win-win deal.

In exchange for a discounted luxury cabin and accommodations, I offered to write about my experience on the trip and post it to the top 20 travel blogs.

In addition, I offered to post my review of the cruise on more than a dozen high traffic travel websites like TripAdvisor.com.

The Marketing Director agreed and I received a 62% discount on a Caribbean cruise, which included a $550 meal voucher!

In order to get deep discounts like this you’ll need to talk to someone in senior management. Entry level managers in reservations, marketing or sales are rarely in a position to offer discounts or negotiate deals.

But don’t worry…I’ve provided contact information for the major cruise lines in this section.

Simply contact senior managers via a snail mail or email and make your request. I prefer snail mail…actually FedEx or PriorityMail….and this almost forces the prospect to read and consider your proposal.

In your letter be sure to focus on “what’s in it for them”.  This will increase the odds of obtaining a deep discount.

For example, you could mention you’ll document your cruise by writing a personal diary, and include HD photos and videos.

You could offer to post your “travelogue” on the top Internet travel and cruise sites. You could even post HD quality videos on YouTube and other popular online video sites.

Another strategy I’ve used is to build a travel website which focuses on cruises!

This would prove to the cruise lines you’re serious about promoting their products.


How to Get Deep Discounts on Luxury Cruises to the Caribbean and Other Exotic Locations

One of the best websites for obtaining deep discounts on cruises is called Cruise Compete.

You’ll find incredible deals on the site…..and I mean incredible!

For example, Carnival Cruises is offering a 7-day ALL INCLUSIVE Rock Cruise to the Caribbean for $848. This cruise typically sells for $2500 and up.

The price includes cruise ship tips ($50pp), alcohol, soft drinks, bottled water, drink tips, taxes, concerts, and autograph sessions.

The price also includes private Deck Parties and the DJ Club.

If a rock and roll cruise is not your idea of fun, then consider the Royal Caribbean Cruise Lines New Year’s Cruise onboard the Oasis of the Seas for $1227.

This cruise is typically priced at $4300 on the most popular cruise sites.

And if you haven’t heard…..the Oasis of the Seas is NOT a typical cruise ship!

Oasis of the Seas is a new class of naval-engineering genius. The ship features the first-ever “neighborhood concept” where everyone can find their unique experiences in one of our seven distinct onboard neighborhoods.

There are 28 ultra-modern loft suites and 2,700 spacious staterooms, contained in a16-deck marvel.

That’s just a snapshot of the deep discounts you’ll find on Cruise Compete.

How to Cruise Like a Celebrity At No Cost Whatsoever!

It’s true!

You can cruise to incredible ports-of-call free of charge, if you know the right strategies and tactics to use.

Tactic #1

Lynn Shaw perfected a great tactic for free cruises.

Lynn launched her side venture by reserving a block of cabins on a Carnival Cruise Lines. Then she sent fliers with the cruise information to a group of friends.

Lynn wanted to attract as many people as possible turn them on to a great vacation. But Lynn also knew if she sold enough cabins she would earn free passage under Carnival Cruise Lines “group policy”.

Lynn easily sold 22 people for the Caribbean cruise.

The “group organizer”, Shaw became the “tour conductor.”

Tour conductors work with a travel agency to make all the travel and onboard arrangements; their primary jobs are recruitment and communication.

All you need for this tactic to work is a group willing to travel together.

For example, a family reunion, a birthday, an anniversary, a wedding, a college reunion — or just plain fun! You can also book trips on “theme cruises” like the Rock and Roll Cruise, The Investment Cruise, or The Spring Break Cruise, etc. Sign up enough people and you’ll cruise for FREE!

Tactic #2
If you have an area of expertise, you could use John Hall’s tactic for getting free cruises.

John is a retired Louisiana State University professor of anthropology and geology. He provides cruise passengers with lectures on the characteristics of the destination.

In return, he gets a FREE CRUISE with meals, drinks and other amenities included!

John and his wife, Carol Ann (who helps with the presentations), receive a free cabin and meals, and most shipboard amenities.

Since 2002 John has taken a couple of cruises a year. He’s been to the Caribbean, Panama Canal and Alaska. On the Alaska cruise, John talked about glaciers and the Klondike gold rush.

Cynthia Barnett became a FREE CRUISE regular soon after she retired in 2003 at age 60.

During a typical 7-day cruise, Barnett gives four talks. Cynthia said this is a “great way to get a free vacation. On some cruises, I've taken family members as my guests."

Current Presenter Opportunities
Arts and Crafts Instructors
Teach craft classes onboard cruises. Projects range from watercolor classes, pottery, scrapbooking to macramé .



Bridge Players
If you enjoy playing bridge you could oversee groups in exchange for your cruise.

Computer Instructors
Most cruise lines actively seek individuals who can present classes on computer basics, the Internet or other related technology.

Tactic #3
Most cruise lines recruit "Gentleman Hosts”!

Gentlemen hosts are typically single men ages 40 to 70 who conduct dance classes or serve as dance partners for single, divorced and widowed female passengers.

However, the “Gentlemen Hosts” must sign an agreement specifying they won't get romantically involved with the guests!

In exchange for “gentlemen host” services men receive a free cruise with all shipboard amenities included!

Tactic #4
You can get a job onboard a cruise line!

You could spend winters in the Caribbean and summers in Alaska or exotic ports in Europe, Australia or New Zealand. 

Most people pay between $2,500 and $10,000 to live on the same luxury cruise ships. You can do that for free (you’ll receive free meals and accommodations) and you’ll get paid to cruise!

Can you think of a better summer job for students?

It’s impossible to snag free luxury cruises if you don’t take the right action.

What’s more, you need to be persistent.

Think about this for a second…..

How many people do think would love to receive luxury cruises for free? The answer is a lot!
However, it doesn’t matter how many people want free luxury cruises. They key is having the right information (which you do), and taking the right action.

The other key, as I said is persistence. Don’t stop until you get what you want!

Then write to us about your success.

All you need to do is decide which these tactics works best for you. Then contact the decision maker responsible for each tactic.

For example, if you’d like to receive a free cruise by becoming a “presenter”, then you’ll need to contact the individual at each cruise line responsible for securing “presenters”.

If on the other hand, you’d like to assemble a group tour for your friends, family or business associates, then you’ll need to contact the person at the cruise line of your choice who can set it up for you – and extend your free cruise.

There’s no time for discouragement. The cruise lines desperately need your help! This is one of the best kept secrets in the industry.

Start planning your free cruise today!

You can cruise to exotic locations around the world like a celebrity, and enjoy luxury accommodations - free of charge.
I’ve shown you four ways to do it!

I’ve also included action strategy and contact information at the major cruise lines so you can get started today.

Your humble host,

Marc Charles


(Ed Note:  Marc Charles is referred to as "The King of Business Opportunities" ....and for good reason. He should be known as "The King of Legitimate Business Opportunities"...because he's launched, bought, sold reviewed and advised on hundreds of businesses and money making opportunities. He understands legitimate opportunities. Marc has agreed supply League of Power members with crucial updates regarding legitimate business and money making opportunities.)

Action Strategy

Check out the cruise ship links today. You can find full-time, part time and even a temporary (seasonal) job or “hosting” position.

Cruising for cash can be a lot of fun.

Jessie Browner from Ohio works as a busienss class teacher and instructor twice a year, and her cruises are free, with food, drinks and entertainment included, plus a small stipend!

Valuable Resources

Cruise Lines Contact Information

2049 Century Park East
Suite 1400
Los Angeles, CA 90067
Attn:  Assistant, Sr. VP Hotel Operations
310-785-9300

Regent Seven Seas Cruises
1000 Corporate Drive, Suite 500
Fort Lauderdale, Florida 33334
Attention: Entertainment Department
800-477-7500
information@RSSC.com

110 East Broward Blvd
Fort Lauderdale, FL 33301
Attn: Onboard Entertainment
800.722.9955
954.356.5881

Corporate Guest Relations:
1050 Caribbean Way
Miami Fl 33132
Attention: Entertainment
800-256-6649





Attn: Onboard Entertainment
 24303 Town Center Drive
Valencia, CA
800-728-6273


Hapag-Lloyd Kreuzfahrten GmbH
Ballindamm 25
D-20095 Hamburg
Attention: Onboard Services
+49(0)40 / 3001 4600
+49(0)40 / 3001 4601

300 Elliott Ave. West
Seattle WA 98119
Attention: Incentive Group 800-445-3731
206-281-3535
Fax: 206-281-7110

6100 Blue Lagoon Drive, Suite 400
Miami FL 33126
Attention: Shipboard Services
800-929-9391

Senior Cruise Director Mr. John Heald
3655 NW 87th Avenue
Miami FL 33178
888-CARNIVAL

Disney Cruise Vacations
Guest Communications
P.O. Box 10238
Lake Buena Vista FL 32830-0238
(800) 951-35
Attention: Onboard Entertainment
7665 Corporate Center Drive
Miami FL 33126
866.NCL.MEET

1170 Celebration Blvd, Suite 200
Celebration FL 34747
407-566-7100
Fax 407-566-7162
24844 Avenue Rockefeller
Santa Clarita CA 91355
Attention: Incentive Groups
800-774-6237

Royal Caribbean International
1050 Caribbean Way
Miami FL 33132
Attention: Onboard Opportunities
800-256-6649

362, Syngrou Avenue
176 74 Kallithea
Athens, Greece
Attention: Onboard Entertainment
866 335 4975

1411 Opus Place
 Executive Towers West II
Suite 300
Downers Grove IL 60515-1182
800.554.7016



96 Morton Street
9th Floor
New York New York 10014
212-765-7740
3 El Tayaran Street
Nasr City - Cairo, Egypt
Attention: Onboard Services
20-2-22628111
20-2-22628765

800-304-9616

57-08 39th Avenue
Woodside NY 11377 USA
Attention: Guest Services
800-348-8084 (USA & Canada only)
Fax: 212-818-9889

Windstar Cruises
2101 4th Avenue Suite 210
Seattle WA 98121
Attention: Onboard Entertainment and Services
(206) 292-9606
Fax (206) 340-0975

Tuesday, December 22, 2015

Very Cool by Marc Charles

5:22 AM

Greetings ;)

Micro Gig sites like Fiverr are the fastest growing sector on the Internet, except for PC/Internet gaming.

I've made and still make a nice income with micro gigs without almost any effort.

Come on.....you gotta check this out...

Marc

_____________________

MIcroGig Riches 2015

Monday, December 21, 2015

Self Storage Scam by Marc Charles

8:12 AM

Morning ;)

I have a  new book entitled New Real Estate Riches -- available on Amazon.

It's offered FREE of charge throughout each month.

But YES -- I still like this market. But NOT as an amateur or newbie!

In other words, not only are savvy entrepreneurs making money RIGHT NOW -- in a depression, economic collapse and coming world war. People NEED storage - it's that simple (even when they forget about all the junk they put it storage!).

Reposting a great column - if I do say so myself :)

Marc Charles

-------

Self Storage Real Estate Millions


5:44 AM

Dear Entrepreneur:

My friend P.S. launched what would become a multi-billion dollar real estate market in the 1970’s. 

This “hidden” real estate is still making entrepreneurs a lot of money. 

In fact, five people on the Forbes 400 Richest List have ties to this phenomenal market.
And the market keeps growing despite the recession. 

More important, the money making potential of this baby is still under the radar!

One of the reasons the market remains hidden is because it’s not “sexy” and it doesn’t have enough “flash” for financial talk shows.

The best part is you don’t have to be a billionaire or even a millionaire to make money in this market. 

Plus it’s fairly easy to get involved, and especially as a passive investor. 

You don’t need special training, college degrees, or real estate expertise. These things won’t hurt you, but they’re not required.

The market I’m talking about to is “self storage” real estate.

And here’s the kicker…….

You can start out small and build this business in a way which suits your lifestyle.

My good friend P.K. in Henderson NV started a small venture about a ten years ago and now controls three self storage investments. 

If you like the idea of residual income (without the headaches of typical real estate investments) this could be the perfect opportunity for you.

My friend P.S. whom I mentioned, developed a unique twist in this market called a self storage real estate investment trust (REIT).

You’ll like this……

Little-Known “Investment Trust” Angel

A self storage real estate investment trust or REIT is similar to conventional REITs. And it can be an incredible tool for generating substantial wealth, and in many cases it can reduce tax burdens.

If you’re not familiar with this concept, I’ll break it down for you.

A REIT is a tax designation for a corporation investing in real estate. A REIT can reduce or eliminate corporate income taxes. 

On the flip side, REITs are required to distribute 90 percent of the income to shareholders. This income may be taxable in the hands of the investors.

The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks. 

Like other corporations, REITs can be publicly or privately held. 

Public REITs may be listed on public stock exchanges like shares of common stock in other firms.

Self Storage Wildfire

The modern self storage business in the U.S. began in Texas in the late 1960’s. 

But self storage can be traced back to the United Kingdom more than 800 years ago! 

People are still buying “stuff” and running out of room in their houses, apartments and businesses so they need somewhere to put it.

Today, you can find thousands of self storage buildings along major highways throughout the U.S., Canada, South America, the U.K., and Australia. 

However, the neat thing is this business is not limited to prime locations along major highways. 

You can find self storage properties in almost every town, village and rural area around the world.

Here’s the deal……

The average self storage facility consists of about 100 storage units. 

In larger metropolitan areas you can find facilities with 500 units or more. 

I toured a facility in Orlando, Florida recently with more than 2,500 units!

The dimensions of the storage rental units vary. But the most common sizes are 5’ x 10’, 8’ x 10’, 10’ x 10’, and 10’ x 15’. 

Customers can rent a self storage unit to customers for 30 days or as long as 5 years or more.
The average rent for a 10’ x 10’ storage unit in the U.S. in 2010 was $79 per month, according to Inside Self Storage magazine. 

The rent in larger cities can be as high as $300 a month. 

But get this……another surprising source of revenue in this business is late fees.

Late rental fees –typically run $5 to $25 per month.

Another source of revenue is the auctioning off of storage-unit contents when renters don’t pay within the certain period of time.

One of the hottest shows of the year is Storage Wars on A&E. It details the self storage auction business…..you gotta love it!

Anyway, an auction occurs when the owners have forfeited their stored items by failing to pay their rent. As an owner or manager have to clear out contents anyway to make room for a new tenant and selling the contents and make up for at least some of the money the renters owe.
Portable self storage is taking off too.

The biggest player in the portable self storage business is PODS (Portable On Demand Storage). Home Depot and other large retailers are getting into the game now too.

In the 1970’s and 1980’s, self storage owners were buying low budget properties often hidden from view by other buildings and structures. This is not the best formula according to 35-year self storage veteran Paul King of Las Vegas.

Here’s what Paul told me:

“In my experience the most profitable self-storage operations are those located on the way to a grocery store, Wal-Mart, gas station, or home improvement store. It doesn’t hurt if your self storage facility is located on a major road with super-easy access.”
Current trends back up Paul’s opinion.

Today, mega-franchisees are buying prime frontage as well as retail lots, and paying big bucks for them.

Sovran Self Storage Inc. a New York based company has nearly 25 million square feet of self-storage in 381 facilities.

There are hundreds of companies which serve to the self storage industry, too. 

You’ll find mini-storage consultancies, brokerages, and financing companies that specialize in this market. I’ll cover some income opportunities’ in these markets in future issues.

Self storage development seminars are selling out nationwide.

If you think that’s great, then listen to this…

What’s the Big Deal with Self Storage?

The self storage market is considered by many real estate entrepreneurs to be a true “cash cow” venture. 

This simply means operating expenses are relatively low and owners often realize more revenue per square foot than other real estate investments.

The self storage market is almost recession proof. 

I know everyone says his or her market is “recession proof”.

But just think about it. 

The economy is hurting. 

Real estate foreclosures, bankruptcies, and subprime mortgage meltdowns are at historical highs. 

But have you seen any self storage businesses or REIT in this market go bankrupt recently? 

Most of the self storage operations which are not overleveraged with first class management (with an eye for direct marketing) are doing fine.

Why is the self storage market flourishing when so many others are going under? 

One reason is when families are forced to move out of their homes due to financial difficulties they usually need someplace to store their goods – enter self storage!

There are other reasons too. 

But self storage has a relatively small monthly charge. 

Therefore self storage bills are often grouped together with other utility bills like electricity, phone, Internet, cable, and water. 

The delinquency rate in self storage is typically much lower than home or apartment rentals.
Business owners have found self storage useful in a downturn too. They can rent smaller office space and supplement the lack of space with self storage.

Let’s Do the Math! Comparing Other Real Estate Ventures with Self Storage

Here’s an example of what an entrepreneur in Atlanta did recently: 

He purchased an older, three-story building in a rundown section of Atlanta for $550,000 (owner-financed) and converted it to a mini-warehouse consisting of 110 units. The mini-warehouse is currently 85 percent full. 

The monthly rent for a 10’ x 10’ unit is $100. The math is pretty simple: 93 units x $100 = $9,300 per month in revenue. The mortgage payment is $1,100, and there are a few additional costs because of the location. There expenses include a security system, as well as a full-time manager. 

Still, this is an example of how an older building can be converted to a profitable self storage business.

Here’s another example:

An entrepreneur in north Chicago has 75 10’ x 10’ units, for a total of 7,500 square feet. (Actually, it’s a bit more – but we’ll simplify it for this example.)
Her potential revenue (with 75 units rented at $225 per month) is $16,875 per month. $16,875 divided by 7,500 gives her $2.25 per square foot. 

Meanwhile, the typical 2,500-square-foot, three-bedroom home rents for about $1,500 per month. And $1,500 divided by 2,500 equals only $0.60 per square foot!

Can you see why self storage facilities are so attractive?

Let’s look at a medical office building... 

There’s a new 100,000-square-foot medical building in Las Vegas that offers office space from 1,485 to 7,200 square feet in size. 

I’ll use a 2,500-square-foot space (which is about the average) for this example.

Okay, the rent for this space goes for about $1.50 per square foot, or $3,750 per month.
This particular building is 40 percent occupied. With that occupancy rate, let’s say five 2,500-square-foot office units are each generating $3,750 per month for total monthly revenue of $18,750. 

And $18,750 divided by 100,000 square feet equals almost $0.19 cents per square foot in actual revenue.

If the building was 80 percent occupied and the revenue was $120,000 per month, the actual revenue would still come out to only about $1.20 per square foot.

What about a strip mall?

Let’s take a look at a typical strip mall near a nice area in Austin, Texas. A 4,000-square-foot space was recently available for $4,500 per month.

There are 10 units in this particular mall. Three of them were empty.

Four 4,000-square-foot units were currently occupied at $4,500 per month each.
Three 2,500-square-foot units were currently rented at $2,750 per month each.
Four units x $4,500 = $18,000.
Three units x $2,750 = $8,250.
Total revenue: $26,250

The total retail space in this strip mall is approximately 36,000 square feet. With the parking lot, the actual total is about 50,000 square feet.

Here’s the math: $26,250 divided by 50,000 square feet equals only $0.52 cents per square foot!

Not only is the potential profit per square foot of self storage mind boggling – especially as compared to most residential and commercial properties – but get this: self storage does not have most of the headaches typically associated with real estate – like plumbing, live tenants, and wear and tear. On top of that, the cost of utilities for each unit is a bare minimum. Can you say overhead light?

But before you get into this business you have to do your homework:
1. Locate and identify every self storage facility in your area or state.

2. Physically look at all the locations – and take notes. Walk around the property. Rent a traffic meter and stick it on a tree or utility pole (check local regulations to make sure its okay). Observe the condition of the buildings, fences, and traffic to and from the facility.
3. Talk to the managers of the facilities if you want to, but only as if you are a customer looking to rent a unit.
4. Spend 30 minutes per day educating yourself on the industry. Most people don’t do this, but that’s how you become an expert.
5. Subscribe to the industry’s main trade publications (listed below).
6. Do the math!

Self storage is a great business opportunity! The profit margins can be as high as 70 percent.
And one of the most attractive aspects of this business is that there are no people in the units! If you’ve ever been landlord, you know what I’m talking about.

There are ways to really leverage your profit in this industry, too, including my friend’s concept of self storage real estate investment trusts (REITs).

There are also investment partnerships that acquire only the most profitable facilities. 

Real Estate Collapse Actually Helps this Business Grow

As I said at the beginning of this issue, my friend was instrumental in developing the self storage REIT market. 

He would always tell me, “People will always store stuff. And they often have to store even more of it when times are bad or their real estate investments go south.”
Take this advice to heart. 

People will always store stuff. And when real estate investments go sour, people have a lot more stuff to store.

InDetroit, for example. Real estate sales have been plunging for two years in this city, with no end in sight. There are no buyers. In many ways Detroit is a war zone today.

But the self storage business in Detroit is actually pretty healthy. I was unable to find any self storage businesses for sale there. This tells me Detroit’s self storage entrepreneurs may be doing well.

Determine which approach works best for your situation: starting from scratch, buying an established mom-and-pop or prime location facility, or investing in rehabbing a rundown building.

This market is huge and growing! This opportunity is yours for the taking.

Your humble host…..


Marc Charles



***** Action Strategy *****
Self Storage Fast Start Guide 

1)    One way to get started in self storage is by developing your own facility from scratch. This means you would build your own facility from the ground up. 

This approach has some serious flaws. It requires expertise, capital, location selection, and a myriad of other time-consuming and expensive tasks.

2)    A popular alternative would be to acquire an established self storage business. The best terms can usually be found when mom-and-pop operators want to get out of the business. These operators typically sell because it’s been unsuccessful for them. But with an in-depth understanding of this market you can turn these babies around.

Mom-and-pop self storage businesses are rarely listed with conventional real estate brokers.
Here are three simple questions you can ask to determine if an existing self storage business is worth the asking price and if it has the potential to make money for you:
  • How many units does the business have?
  • What is the current occupancy rate?
  • What is the actual drive by auto traffic number?
If a self storage business has 100 (10’ x10’) units… and the current occupancy is 40 to 50 percent... it could be considered a “prime target” by self storage “insiders.” 

But it must have at least moderate levels of drive-by traffic (2,000-5,000 cars per day).

Self storage owners can’t lie about how many units they have, but they might try to “cook the books” regarding occupancy. But if you do your homework, you’ll know if you can make a particular location profitable. 

3)    Instead of going for a mom-and-pop self storage business, you could acquire a self storage facility in a prime location – one where the traffic (and cash flow) is much stronger. These locations are usually very pricey – in the $1 million to $2 million range.

But when you start digging you’ll see why investors gladly shell out the big bucks for these cash cows!

Here are some self storage businesses that were being offered for sale in prime areas on major highway intersections recently:

Western New York, Texas, and Mississippi (12 self storage centers) – $35 million
Southwest Florida (39,000 sq ft/16 acres) – $1.5 million
Loudon, New Hampshire (27,200 sq ft) – $1.2 million
San Clemente, California (22,760 sq ft) – $3 million
Augusta, Georgia (29,900 sq ft) – $545,000
Bow, New Hampshire (16,900 sq ft) – $550,000
Las Vegas, Nevada (74,800 sq ft) – $3.7 million
Coos Bay, Oregon (13,500 sq ft) $650,000
Lubbock, Texas (54,445 sq ft) – $1.2 million
South Chicago Heights, Illinois (49,600 sq ft) – $1 million
Hickory, North Carolina (21,240 sq ft) – $285,000
Paris, Tennessee (7,800 sq ft) – $229,000
Prescott Valley, Arizona (40,300 sq ft) – $2.1 million
Gainesville, Georgia (14+ acres) – $1 million
Ankeny, Iowa (10 acres) – $850,000
Kissimmee, Florida (35,200 sq ft) – $3 million

4)    If starting from scratch or buying an existing mini-warehouse business doesn’t work for you, there is a fourth option.

In years past, the success of self storage was dependent on prime real-estate exposure.
But today, there are rundown, older buildings in many downtown areas which can be converted to a self storage operation. 

Granted, some of these areas aren’t the best place in the world to do business…..including self storage. 

But hundreds of areas across the U.S. and Canada have seen a resurgence of revitalization. 

The one advantage of centrally located self storage in major metro areas with easy access is people – lots and lots of people!

It’s fairly easy to do. And this redevelopment is often welcomed by local civic leaders because they’ve lost a good chunk of their population as a result of the exodus to the suburbs (and exurbs). 

In some cases, you can acquire old buildings at deep discounts. 

By the way, you don’t have to limit yourself to older buildings right in the center of town. 

There’s another growing trend too. It’s converting empty barns and steel buildings in rural areas and retrofitting them for self storage facilities. 

Check out this self storage facility in Waipahu HI!:



**********Valuable Resources **********

SelfStorage.com (find self storage businesses)
Extra Space Storage (franchise and REIT)
Public Storage (franchise and Public REIT)
U Store It Trust (franchise and REIT)
Global Portable Buildings, Inc. (leading manufacturer of mobile storage units)