How a Poker Tip Can Change Your Life

A couple of years ago, I received a call from a good friend of mine from high school.

My friend said, “Ray, you have to start playing poker. It’s just amazing. You can play with us next week at Mike’s house or just jump online and join a game. It’s such a rush.”

He was excited. But I had to say, “Thanks, but no thanks. I’m not interested.”

I’m just not that much of a gambler.

But then, about two weeks later, I was late-night channel-surfing and I came across a poker tournament on TV. Because of my friend, I stopped and watched. I wanted to see for myself why he was so excited.

Poker has taken off. It has become a billion-dollar business and a worldwide phenomenon. So I wasn’t surprised to see the face on the cover of the May issue of Inc. magazine.

Who was it? You got it right. The guy who started the poker craze: Steve Lipscomb.

“Oh boy!” I thought to myself the day that issue landed in my mailbox. “This is going to be a great story!”

And I was right.

Let me share with you five success secrets that Lipscomb used to build a $300 million business and kick-start a multi-billion-dollar industry.

1) Do Something You Love.

Why did Steve Lipscomb get into the poker business? Because he started playing the game, LOVED it, and saw a better way for poker to be “sold.” So simple. Right?

What do you enjoy doing? What products or services have you bought in the past that revolve around your passion? How can you improve them and sell them to other enthusiasts? Those are questions I ask my clients to help them discover how to make money with something they love.

2) Find a ‘Model’ That Works and Emulate It.

After Steve decided to turn his poker passion into a business, he looked for a business model that he could emulate – one that he could learn from. He found the model of the PGA golf tour and used it to build his $300 million business. (Amazing what we can learn from businesses outside of our own!)

3) Ignore the Naysayers.

Nobody believed in Steve Lipscomb. I know how that feels – and it’s not good. The cable companies, production companies, even people around him thought he was crazy. They said, “Nobody will buy this.” But he believed in himself and his idea. And that’s what YOU need to do.

4) Sell Your Vision.

Steve Lipscomb is incredibly strong in selling his vision to others. When no one believed in him, the only way he could get backers and employees was to sell his grand vision of what would be possible with his idea.

People like to be involved in something that’s going to be great. So it’s your job to sell them on what will be possible when YOUR IDEA grows into a reality. When you sell your vision, make it bright, clear, and exciting.

5) Build a Team.

Steve Lipscomb has a great team around him – and this has been a critical part of his success. To find and pick the right people for your team, you’ll have to understand their individual strengths and weaknesses – and learn how to manage both.

By taking it one step at a time, celebrating each victory, Steve Lipscomb has built a publicly traded company worth $300 million.

Pretty good for a guy with nothing more than a passion and an idea.$

[Do you know how Facebook and Google became the most powerful companies in the world?

It’s NOT helping you share pics of last night’s dinner...
It’s NOT searching for drunken cat videos…

And it’s DEFINITELY NOT about free Gmail accounts.
 

The simple truth is Facebook and Google SELL TRAFFIC.

They SELL TRAFFIC to business owners, and that advertising revenue alone has turned them into billion dollar companies.
 

Traffic is the most valuable commodity on the Internet, and that will never change.
 

This is why using the Traffic Authority business system is the ultimate way to make extra income in your business…

Click here to watch the video and start your own premium traffic business today!]

Can You Create Another Income Stream as a Consultant?

If you possess valuable knowledge and experience, you might be able to share it – and get paid for it – as a consultant. This could be a lucrative sideline to your current business or career. Consultants are well compensated – as much as hundreds of dollars per hour.

The word “consulting” might call to mind an image of a huge multinational firm sending teams of dozens of its staffers into Fortune 500 corporations. But many consultants have solo practices. Anyone who can help companies (or individuals) solve problems, avoid mistakes, or increase revenues deserves the title.

Companies often need expertise that isn’t available in house. For example, to handle a project for which they don’t want to hire a full-time employee. Or to offer a fresh approach to a problem.

Executives and entrepreneurs I've spoken to told me that the consultants they hire must have experience specific to the company’s needs, that they must be practitioners and not theorists, and that they must be able to supply direction and specific, useable answers.

Can you diversify into consulting? Quite possibly. Are you good at what you do, and do you have the ability and the enthusiasm to communicate your knowledge and skills?

Think about what sort of information and advice and intelligence you’re capable of offering, its value, what you could charge, how to identify prospective clients and persuade them to hire you.

Whom do you know who might be interested? Your employer? Clients? Contacts? Could you write an article or give a talk that demonstrates your expertise for an audience of qualified prospects?

Establishing your reputation, networking, and marketing are the keys to building a successful consulting practice. No one would claim that it can be achieved overnight. But I did it – and so have many others.$

[Do you know how Facebook and Google became the most powerful companies in the world?

It’s NOT helping you share pics of last night’s dinner...
It’s NOT searching for drunken cat videos…

And it’s DEFINITELY NOT about free Gmail accounts.
 

The simple truth is Facebook and Google SELL TRAFFIC.

They SELL TRAFFIC to business owners, and that advertising revenue alone has turned them into billion dollar companies.
 

Traffic is the most valuable commodity on the Internet, and that will never change.
 

This is why using the Traffic Authority business system is the ultimate way to make extra income in your business…

Click here to watch the video and start your own premium traffic business today!]

Don’t Trick Your Prospects: A Marketing Lesson From the Movies

The purpose of a great headline is to get your readers’ attention. And the purpose of the remainder of your sales letter is to get your readers to buy your product or service.

But if there is a disconnect between what the copy promises and what the product delivers, you’re going to have dissatisfied customers who feel betrayed.

Result: You end up spinning your business’s wheels, trying to constantly replenish your customer base. You’re losing them out the side door as fast as you’re bringing them in the front.

A few years ago, I read an interesting article in The New York Times about something similar that happens in the movie business. David Pogue wrote about how excited he was when he saw a trailer for the film National Treasure… but very disappointed when he saw the film and it bore little resemblance to the trailer.

Shortly after saying something to that effect in the paper, Pogue received a surprisingly candid note from the film’s director, Jon Turteltaub.

Turteltaub explained that the trailers are often put together LONG before the movie’s final edits. In fact, they’re sometimes finalized when filming is barely half complete. That means there’s a good chance for the more-than-occasional disconnect.

But that’s only the unintended consequence. Turteltaub hinted that sometimes darker forces are at work.

“For me,” said Turteltaub, “the biggest problem that comes up is when the trailers and TV spots don’t reflect the essence of the movie they are selling. You see that a LOT. The studio often feels that the movie they made isn’t a movie they can sell… so they sell it as a different movie. That can help fill seats on opening weekend, but it usually backfires. Personally, I think that’s what happened with Sweeney Todd. Perhaps they didn’t want anyone to know it was bloody, gory, and a musical. So they hid that. What happens is that the wrong audience sees the movie on opening weekend, and the word of mouth is all wrong. Great movies can get lost because of this.”

Here’s the lesson: If you find out late that your product isn’t going to appeal to your market, don’t be tempted to just put a new spin on the advertising. You’ve got to do the hard work of making the product fulfill your prospect’s needs, as you promised in your promotion.$

[Do you know how Facebook and Google became the most powerful companies in the world?

It’s NOT helping you share pics of last night’s dinner...
It’s NOT searching for drunken cat videos…

And it’s DEFINITELY NOT about free Gmail accounts.
 

The simple truth is Facebook and Google SELL TRAFFIC.

They SELL TRAFFIC to business owners, and that advertising revenue alone has turned them into billion dollar companies.
 

Traffic is the most valuable commodity on the Internet, and that will never change.
 

This is why using the Traffic Authority business system is the ultimate way to make extra income in your business…

Click here to watch the video and start your own premium traffic business today!]

The Number One Character Trait for Effective Leadership

I believe there is only one inherent character trait that is essential for effective leadership: ambition. You may not think of yourself as ambitious, but relax. Even the saintly Gandhi had ambition. When asked why he had abandoned a successful law career (and a well-cushioned lifestyle) to pursue a risky, self-sacrificing career of political leadership, Mahatma replied with a single word: “Ambition!” Granted, it is not necessarily an attractive personal trait to desire power, distinction, and public approval. Gandhi chose exactly the right word to describe the force that compelled him to risk all — even his life — in the pursuit of a worthy goal.

By his early 40s, he had come to feel terror at the prospect of living to old age in conventional comfort. He trembled when he imagined himself on his deathbed uttering the most tragic of all last words: “I could have done much more with my life.” Then, for 40 years, he focused his energies on the single goal of Indian independence. Although few leaders are as admirable in their behavior, as noble in their goals, or as successful in their craft as was Gandhi, all leaders are driven by ambition.

All effective leaders desire to help their own family, company, organization, or nation to achieve its highest potential. They willingly put themselves on the line to achieve that end. Ambitious leaders are not satisfied with current performance. Their ambition distinguishes them from timid leaders. They not only want true greatness for their organizations, they are committed to do all that is necessary to realize the potential. That is appropriate ambition. They realize that most organizations are seriously underperforming. Few come anywhere near to achieving their potential.

Worse, most individuals in positions of authority are either satisfied with the status quo or fearful of assuming the risk to transform their organizations to achieve greatness. In sharp distinction are those few individuals who have high ambition for themselves and their organizations. Those who act on that ambition are leaders. When Lou Platt became CEO of Hewlett-Packard (HP) in 1992, he was only the third person in the company’s history to hold that title. He was an experienced executive, he had worked at HP for 26 years, and, because he was the designated successor to CEO John Young, he had time to prepare for the challenges of leadership.

But in spite of all that experience and preparation, he faced the same question every new leader must answer: “Where do I start?” Here’s what he did:

1. He established a leadership team. In selecting the team, he sent a signal about his priorities, goals, and agendas. He looked for people who were compatible team players, but also people who represented a diversity of perspectives.

2. He listened and set an agenda. He spent many hours “walking around” in the HP tradition, listening to the needs, concerns, and aspirations of employees, managers, and customers. His long-term concerns were the challenges of revitalization and continual growth: “Nobody stays on top forever. Since HP has moved from challenger to a leader, what worries me most is complacency.”

3. He built the case for change. Platt spent only 25% of his time on operations. He devoted the other 75% to communicating the need for breakthrough performance. He did this by going on the road and talking directly with HP people. He challenged them to perform at higher levels, even as he restored pride in HP’s principles and values. He pushed responsibility for change down to operational levels, and held the appropriate people accountable for realizing the needed changes.

4. He concentrated on what only he could do as CEO. Platt spent more time dealing with HP’s key constituencies. He reached out to customers, opened effective channels of communication with the HP board, and, of course, spent more time listening to employees and communicating the importance of ambition and change.

[Do you know how Facebook and Google became the most powerful companies in the world?

It’s NOT helping you share pics of last night’s dinner...
It’s NOT searching for drunken cat videos…

And it’s DEFINITELY NOT about free Gmail accounts.
 

The simple truth is Facebook and Google SELL TRAFFIC.

They SELL TRAFFIC to business owners, and that advertising revenue alone has turned them into billion dollar companies.
 

Traffic is the most valuable commodity on the Internet, and that will never change.
 

This is why using the Traffic Authority business system is the ultimate way to make extra income in your business…

Click here to watch the video and start your own premium traffic business today!]

How to Stay Motivated About Achieving Your Long-Term Goals

 

“The highest reward for a man’s toil is not what he gets for it, but what he becomes.” – John Ruskin

Your most important goals — becoming rich, famous, etc. — can take time to accomplish. Sometimes years and years. How do you stick with them? How do you avoid distractions? How do you keep yourself from losing interest?

There’s only one answer to all these questions: Learn to love the process.

The process is what you engage in while you are on your way. It consists of the steps you take on your journey. It includes the little breakthroughs, the small triumphs, and the pleasure of overcoming adversity.

I do that by breaking all my long-term goals into shorter-term objectives. I’ve broken down all my lifetime goals into five-year objectives, then into yearly, monthly, and weekly objectives, and finally into daily tasks.

Each completed effort is something I feel good about. Often, I reward myself with small psychological prizes. Usually, the reward is simply the gratification I feel when I check the task off my task list. Sometimes, I reward myself with a monetary reward — a hundred dollars here, a thousand dollars there.

Let’s say you want to save a certain sum of money every month but find you don’t get any pleasure out of doing it. In that case, what you could do is pay yourself off each time you achieve that goal … perhaps with a small sum of “fun” money that you can spend any way you want to.

If, for example, your savings goal is $3,000 a month, you might give yourself a $100 bonus. The money might go to buy a nice dinner or to pay for some toy — almost anything, so long as it feels like an “extra.”

I like to give myself a cash bonus. There’s something tangible about a $20 bill that I am still very fond of. I usually spend that reward on music downloads.

Think about a long-term goal you might apply this idea to. Make deciding what the reward should be part of the enjoyment.

Hint: It’s sometimes fun to let someone else — a partner, your spouse, or even your assistant — award the bonus. That way, it feels more like a pleasant surprise.$

[Do you know how Facebook and Google became the most powerful companies in the world?

It’s NOT helping you share pics of last night’s dinner...
It’s NOT searching for drunken cat videos…

And it’s DEFINITELY NOT about free Gmail accounts.
 

The simple truth is Facebook and Google SELL TRAFFIC.

They SELL TRAFFIC to business owners, and that advertising revenue alone has turned them into billion dollar companies.
 

Traffic is the most valuable commodity on the Internet, and that will never change.
 

This is why using the Traffic Authority business system is the ultimate way to make extra income in your business…

Click here to watch the video and start your own premium traffic business today!]

Develop Your Advertising Like A Blockbuster Movie

“Less is more.” – Ludwig Mies van der Rohe

If you want to come up with breakthrough advertising ideas, it can help to practice a technique filmmakers use to develop blockbuster movies. The technique — which is applied to the movie’s essential idea — is called “high concept.” A movie has a high concept when its core idea is intriguing, powerful, and easy to understand.

Example: An asteroid the size of Texas is hurtling toward earth. “That’s high concept,” says James Bonnet, writing for The Writers Store e-zine. “Everyone knows exactly what that means. It arouses an emotional response, and, in just 10 words, everyone knows what the movie is about.”

The same thing could be said of a really good advertising campaign. It is built around a single, strong idea, one that is exciting, intriguing, and easy to understand.

Some copywriters and creative agencies prefer advertising that is more complex. For them, promotional ideas should be smart and eccentric or perhaps brilliant and unconventional. The thought that one of their campaigns could (or should) be reduced to a catchy phrase is disgraceful.

Yet, most of the best advertising is simple — and for a very good reason. For advertising to click, it has to appeal to what people are ALREADY thinking and feeling. The great advertising campaigns are those that “tip” a pre-existing social demand. This is true of all sorts of advertising — commercial, political, and cultural. Consider these cultural successes of the recent past:

* Power to the people!

* To each according to his needs; from each according to his ability.

* All you need is love.

The purpose of advertising is to stimulate buying — usually as much as possible in a given market. To create a flurry of interest in something, you have to say something that is easily understood. Yes, it has to be strong. Yes, it has to be intriguing. But most of all, it has to be understood.

When messages are simple, they travel fast. When they are complex, they get clogged up in the communications channel.

Back to the movie business …

Here’s how James Bonnet explains the way a typical high concept makes its way to the light:

“For example — in the ’70s, there was a very popular 90-minute TV show called ‘MacMillan and Wife,’ which starred Rock Hudson and Susan St. James. Steven Bochco, whom you’ve no doubt heard of because of shows like ‘NYPD Blue,’ was the story editor. Julie Epstein introduced me to Leonard Stern, the executive producer, who referred me to Bochco, who had never seen my work and had no idea what I could do. We had a meeting and discussed a couple of ideas, but nothing happened.

“Then one day, while I was in my kitchen making some coffee, a thought popped into my head — and on an impulse, I called Bochco.

“‘What’ve you got?’ he asked, after the usual amenities.

“‘Susan gets lost in the Bermuda Triangle.’

“‘I love it,’ he said. ‘I’ll get back to you.’

“Ten minutes later, he called me back and said: ‘I hope you can write. You’ve got a deal.’

“Now, as it turned out, Bochco had called the producer, who loved it and told Bochco to call their contact at NBC. Bochco called the contact, the contact called his superior and pitched it to him. Then the contact called Bochco back, and Bochco called me. All within less than 10 minutes. It was the highest-paying show on television, and at that moment ‘Susan gets lost in the Bermuda Triangle’ was the sum total of what I knew about that story idea.”

That’s what you want to happen with your advertising campaign. You want it to be instantly liked and passed on. To be instantly liked, something must be instantly understood. Ask yourself: “What is the high concept of my advertising campaign? Is it instantly intriguing? Instantly attractive? Instantly understandable?”

If it isn’t all of those things, you might want to test something that is truly high concept.

[Do you know how Facebook and Google became the most powerful companies in the world?

It’s NOT helping you share pics of last night’s dinner...
It’s NOT searching for drunken cat videos…

And it’s DEFINITELY NOT about free Gmail accounts.
 

The simple truth is Facebook and Google SELL TRAFFIC.

They SELL TRAFFIC to business owners, and that advertising revenue alone has turned them into billion dollar companies.
 

Traffic is the most valuable commodity on the Internet, and that will never change.
 

This is why using the Traffic Authority business system is the ultimate way to make extra income in your business…

Click here to watch the video and start your own premium traffic business today!]

Make Your Personal Life Richer Next Year

Although he is one of the most accomplished leaders and politicians in the world's history, Winston Churchill also indulged in several hobbies. In fact, for Churchill, hobbies were the ideal way for him to work through some of the most difficult political problems he was faced with, during his long and distinguished career. 

Frequently turning to painting as a pastime, Winston Churchill was known for entering his study to paint for hours on end, with strict instructions to not disturb him. During the war, these painting sessions sometimes extended far into the night. Yet, he didn't come to this hobby early in life; he began painting when he was far into his adult years, at the age of 40.

What are your hobbies? If you say “watching sports on television,” I’ve got news for you. That’s not a hobby. It’s a habit, and a bad one at that. A hobby is, or should be, something that makes your life richer.

The kind of hobby that Winston Churchill would have recommended is one that might:

* stimulate your imagination

* satisfy your curiosity

* give you a sense of peace

* sharpen your senses

* broaden your knowledge

Maybe even stave off senility. By this, more demanding, definition, reading could be a hobby or it could merely be a habit. The difference would be in what you chose to read. If the purpose of your reading is amusement and the result is nothing but amusement, then what you are doing is better, but not much better, than watching television. I’m not opposed to mindless amusement, but, like junk food, it must be consumed in small quantities on a very occasional basis. If you do more than that, you will get fat.

Having two or three challenging and/or stimulating hobbies will make your life infinitely better. It will give you ways to soothe your agita and make rainy days something to look forward to. It will fill up your spare moments. It will keep you feeling young and alive. And it will keep you from getting lonely. People who pursue interesting hobbies are themselves more interesting. They tend to have broad and active intellects, spirited hearts, and youthful souls.

Spend some time today figuring out how much time you waste every week watching television, reading mindless books, or fiddling around with some other junk activity. Then promise yourself that you’ll devote at least half that time to the pursuit of hobbies that will improve you.

Here are some hobbies I can recommend from personal experience:

1. writing and/or reading poetry

2. creating and/or studying art

3. studying and practicing a foreign language

4. keeping a journal

5. learning to enjoy wine and/or food

6. collecting something you love

7. photography

8. writing your family history

9. making movies and/or writing screenplays

10. learning to dance and dancing

11. designing and tending gardens

Churchill recommended two or three, and that is probably enough. I have a few more than that. Since I don’t feel compelled to devote any minimum amount of time to any of them, it doesn’t seem excessive to me. I tend to focus on a smallish group of them at a time — and when I get “enough” of them, I stop for a while.

This year, I faithfully kept a journal, studied wine and art history, and learned some Spanish. Now and then, I’d write a poem or take some artsy photos. I did that when it felt like fun. Next year, I think I’ll do some fiction writing and get back to dancing. What are you going to do? Make a promise. Allocate the time.

IT’S GOOD TO KNOW: WHY JOB INTERVIEWERS ASK ABOUT YOUR HOBBIES

Two questions commonly asked by job interviewers are “What are your hobbies?” and “Do you play any sports?” There’s a reason for that. According to an article that appeared a while ago in USA Today, the interviewer is not simply curious as to whether you have a life — he may be looking for evidence that you have job-related skills outside of your professional experience.

If, for example, you play chess or bridge, that shows you have analytical skills. Reading, music, and painting demonstrate your creativity. Individual sports show that you have determination and stamina. And participation in group sports indicates that you are comfortable working as part of a team.$

[Do you know how Facebook and Google became the most powerful companies in the world?

It’s NOT helping you share pics of last night’s dinner...
It’s NOT searching for drunken cat videos…

And it’s DEFINITELY NOT about free Gmail accounts.
 

The simple truth is Facebook and Google SELL TRAFFIC.

They SELL TRAFFIC to business owners, and that advertising revenue alone has turned them into billion dollar companies.
 

Traffic is the most valuable commodity on the Internet, and that will never change.
 

This is why using the Traffic Authority business system is the ultimate way to make extra income in your business…

Click here to watch the video and start your own premium traffic business today!]

Give Yourself a Second Chance in Life

“Growing old is no more than a bad habit which a busy person has no time to form.” – Andre Maurois

There is so much you can do in the second half of your life and so many examples of people who have accomplished great things as seniors. I’ve talked about several of them in past messages:

* Aristotle, Henry Flagler, and John Glenn 

* Nelson Mandela, Mary Baker Eddy, George Burns, Grandma Moses, and Colonel Sanders 

* Martha Graham 

* Armand Hammer and William R. Grace 

* Isaac Asimov 

* Tony Bennett 

Here are a few more to inspire you:

* Karen Blixen: Better known as Isak Dinesen, Blixen began writing fiction when her life was — by her social standards — over. Born to a distinguished Danish family, she attended Oxford, studied painting in Europe, married her cousin, and ran a coffee plantation in Africa for most of her career. Following her divorce and the subsequent failure of the plantation, she wrote “Seven Gothic Tales,” which became a best seller, and followed that up with “Out of Africa,” which was hailed (and justly so) as a great literary achievement, giving her a permanent place in the history of world literature.

* Edward Hopper:  Hopper, one of my favorite American painters, spent his life earning a living as a commercial illustrator. He never gave up painting, though, and began to paint the serious stuff he became known for — the dark streets, all-night diners, bleak white houses, etc. — when he was a mature man. He was well into his 60s when substantial recognition arrived, “too late,” as Brendan Gill (author of “Late Bloomers”) put it, “to do him any harm.”

* Wilbur Lucius Cross:  Cross spent the first half of his life as an academic, specializing in the development of the English novel. Upon retiring at 68, he launched himself into a political career — winning the governorship of Connecticut and successfully serving for three terms.

* Philip Johnson:  Born to a wealthy Cleveland family, Johnson spent his first 40 years living the kind of life most people dream of. The only thing he didn’t have was a career. He got one in his 40s. He enrolled in the graduate school at Harvard to study architecture, building a house for himself as a student project. He launched his practice in New York in 1945 and has since designed all sorts of prominent office buildings, museums, and churches. He was active in his business well into his 90s.

If you are nearing or past 50, stop telling yourself you are too old to do this or that.

Are you working on your lifelong dream? If not, get going. If you are over 50, ignore the critics and move forward. And if you are still young, don’t tell yourself you can do it later. Start now. Today. Do one small thing to move yourself forward and then do something else tomorrow.

Nobody will take you by the hand and walk you to the fulfillment of your dreams.

You have to start that walk alone. Do it now. One small thing.$

[Do you know how Facebook and Google became the most powerful companies in the world?

It’s NOT helping you share pics of last night’s dinner...
It’s NOT searching for drunken cat videos…

And it’s DEFINITELY NOT about free Gmail accounts.
 

The simple truth is Facebook and Google SELL TRAFFIC.

They SELL TRAFFIC to business owners, and that advertising revenue alone has turned them into billion dollar companies.
 

Traffic is the most valuable commodity on the Internet, and that will never change.
 

This is why using the Traffic Authority business system is the ultimate way to make extra income in your business…

Click here to watch the video and start your own premium traffic business today!]

How an LLC Can Stop Lawsuits and Creditors Dead in Their Tracks

“Avoid lawsuits beyond all things; they pervert your conscience, impair your health, and dissipate your property.” – Jean de la Bruyere

As I explained previously, you may want to consider establishing a business entity like a corporation or a limited liability company (LLC) if you’re a real estate investor, an independent contractor, or a small-business owner. These entities can help make your business less risky and more financially rewarding.

Corporations (S Corps. and C Corps.) typically provide good protection against “traditional liabilities.” In other words, if your business is sued for something related to its business activities, a properly set up and maintained corporation should protect the owners from personal liability.

Yet most attorneys will tell you that a multi-member LLC will usually provide enhanced benefits – for two important reasons:

1. Fewer opportunities for error.

A corporation is more complicated than the LLC. For one thing, it must hold annual meetings. State law also requires it to abide by a number of rules that create a “forced” three-level management structure. This means all operations must be channeled through directors, officers, and shareholders. In a small- to mid-sized business, the same person or handful of people must occupy all of these positions – which can create confusion and increased opportunities for error.

On the other hand, state law does not force such a complex management structure upon the LLC. And, though it’s a good idea to hold an annual LLC meeting, it’s not a legal requirement. You probably won’t lose your protection if you forget to have one. This means fewer technicalities to deal with, less confusion, and fewer potential mistakes for an attorney to use against you when trying to “pierce” your business entity to hold you personally liable.

2. Greater protection against creditors.

Perhaps the main reason an LLC is favored in most situations is that it will not only protect you from your business’s liabilities… it can also protect your business from your personal liabilities.

Let’s say you are driving your family to the park on a Sunday afternoon. Along the way, your car “taps” someone who is crossing the street and he is slightly injured. The injured person finds a personal injury attorney who tries to milk the case for every penny. They sue you for $1,000,000… and win. Your insurance only pays out $500,000, so you still owe $500,000.

What happens next? The answer depends on whether you have a corporation or an LLC.

What usually happens in a case like this is that the attorney passes the case on to a collections specialist – an aggressive attorney who really knows the ropes. He can, for example, go to the judge and request a Writ of Execution. With this writ, a creditor may visit your residence or office (with the local sheriff) and begin seizing your personal assets.

If you have a corporation, he may also be able to seize up to 100 percent of your corporate stock shares… because your corporate stock shares are considered personal property. If the creditor gains control of your company by seizing enough of your shares, he can then vote to dissolve the corporation. Assets in the corporation would then be distributed to you (and your co-owners) personally. And then the creditor could grab those assets up to the $500,000 you still owe him.

But this can’t happen if you have an LLC – because the laws of all states (except Pennsylvania and Nebraska) have included special rules that allow LLCs to be protected in a situation such as this.

The creditor would generally not be able to gain control of your LLC. He also could not vote to end it, nor force a distribution of assets. He would be limited to a “charging order.”

A charging order is an order granted by a judge that says any money passed on to a business owner by the business must first go to the creditor… until the debt is paid off. BUT, the creditor does not have the right to force an LLC to make this payment. So he could wait a very long time for any such payment – especially if the people running the LLC are sympathetic to your situation. They could choose to stop distributions made to you altogether.

What’s more, once the creditor gets the charging order, he may even have to pay taxes on money the LLC made but which was not distributed to you.

Let’s say you’re a 50 percent owner of an LLC that makes $1 million in profits and the managers decide not to distribute any of those profits to you. The creditor can’t seize your $500,000 share of the profits, because it wasn’t distributed… but he could be forced by the IRS to recognize it as “phantom income” and find himself with a tax bill in the neighborhood of $150,000 or more.

Establishing your business as an LLC can almost act as a “poison pill” against questionable lawsuits, and it can put you in a much better negotiating position if you’re ever sued. The prospect of getting a big tax bill without any cash could spur the other party to settle the judgment debt or just drop his collection efforts. At the very least, it will help keep your business intact.$

[Do you know how Facebook and Google became the most powerful companies in the world?

It’s NOT helping you share pics of last night’s dinner...
It’s NOT searching for drunken cat videos…

And it’s DEFINITELY NOT about free Gmail accounts.
 

The simple truth is Facebook and Google SELL TRAFFIC.

They SELL TRAFFIC to business owners, and that advertising revenue alone has turned them into billion dollar companies.
 

Traffic is the most valuable commodity on the Internet, and that will never change.
 

This is why using the Traffic Authority business system is the ultimate way to make extra income in your business…

Click here to watch the video and start your own premium traffic business today!]