Sunday

To Trust Or To Not Trust Mr. Market?



Mr. Market is the name of a fictional character created by former Columbia University business school professor Benjamin Graham to describe novice investors that are very volatile and emotion-driven in their investment practices. They rely solely on what the economic market is currently doing rather than observing growth trends and comparing things like return on investment, earnings per share or book value to the given market price of an investment they are pursuing. They wouldn't know what intrinsic value meant if it walked up to them and slapped them in the face! Mr. Market is not your friend. In fact, Mr. Market is one of the worst persons to have around you when making sensitive financial decisions like this that can make or break your financial future. 


You are more than likely asking yourself right now, "What the f*** does any of this stuff have to do with internet marketing?!?". And I'll admit, not much, but there is one slight similarity between the two that led me to writing this article. Even if you never thought about purchasing a single stock in your entire life, chances are you have, or will, come across many Mr. Markets since the time you've decided to start making money online. You have probably been recommended some business opportunity to make money by someone you know or just met who told you that some random business was the best thing since sliced pie simply because "People are making doing this!", or "I've heard their products are great!". And while this might sound great, the problem here is that they are not basing their advice on factual information nor individual circumstances. Anyone who already uses Twitter, Facebook, YouTube, Instagram, Google+, Pininterest, etc. to share links and discuss events is more than likely capable of sharing an affiliate link over those same platforms and receiving an income for doing what they already do almost everyday; which is why I recommend affiliate marketing when encountering people over these same social media networks who are interested in ways of making money online, but how many people on those websites I've listed are capable of direct face-to-face sales? Or knocking on a strangers door to sell products? Or managing a large network of m.l.m associates that have signed up under them? There is no factual way of knowing this, but obviously those numbers would decline. And those are just a few of many examples that can be given. Advice from these types of people are based purely on a naive intuition and/or a need for a quick profit/commission(kind of like Mr. Market!). Here are some ways of avoiding getting duped by Mr. Market:

Do Your Homework On The Company 

What are the sources for their claims? Are they giving false and misleading statistics to push an idea they are promoting? Forbes lists the top 5 most profitable industries of 2015 as(in numerical order), health technology, finance, technology services, electronic technology and consumer non-durables. Are they saying something different? And if so, do they have a better source for what they are saying? These are some of the things you want to be vigilant about when determining whether you should get involved in what they are promoting.

Pay Attention To What The Next Man Is Doing

Almost all companies nowadays are using people who they claim to be their most successful students to give testimonials on how they achieved their wealth by following the same strategies you will be learning. If they are not showing bank statements, transaction reports or physical money to back up those claims, take what they are saying with a grain of skepticism. Double my last sentence over if Mr. Market doesn't even have any proof of sufficient earnings other than money made from referrals; this is the sign of a legal ponzi scheme.

Don't Buy Without The Test Drive!

If a company really stands behind the claims made about their products, they will offer a free-to-try service, a free trial or at least a money back guarantee. You should also check reviews online for people who were not given their refund back. Scam.com would be a great place to start for this option, but you can also check marketing forums like warriorforum.com or webmastersun.com for reviews from anyone whom might have used their product(s) before. After all, you wouldn't buy a house without being able to see what's inside, so why take a risk with your life savings?

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