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November 29, 2006
Transform Your Business Name into a Brand Name

It’s easy to think that because you have a name, logo and tag line, that
you have a brand. But corporate identity is just the first step of building a
brand image. The name, logo and tag line are two dimensional
elements in a three dimensional world. And to become “real”, to become
a living, breathing, brand name, companies must possess three
dimensional attributes. In other words, they must possess the same
qualities that people do — specific, consistent traits and characteristics
that customers can easily indentify, remember and relate to.

This is where most companies fall short. In an attempt to be all things to
all people, they have no identity. They try to compete on every level…
price, quality, service, selection and so on. It sounds like a good
strategy but it fails nearly every time.

Why?

Because our minds are like little mail rooms. When we get incoming
messages, we sort them and file them in their proper slots. Wal-Mart
goes into the low price mail slot for when we need to save money. Rolex
goes into the quality slot for when we win the lotto and want to enjoy the
best. Nordstrom’s goes into the service category for when we want to
really be pampered. The more specific the trait or characteristic, the
easier it is to recall.

So when companies try to appeal to everyone, it’s the equivalent of
meeting someone named “George”.

George who? George Washington? George Foreman? George Jetson?
Curious George?

If you lack specific, identifiable features, you will be sorted, discarded
and tossed in the mental mailroom trash basket, never to be recalled.

Here’s a hypothetical, but typical, example. A bunch of zealous
entrepreneurs want to form a sporting goods company. They want to
succeed on every level and win over every potential customer. So
what’s synonymous with being on top, king of the hill, a company at the
peak… what else but…

Summit Sporting Goods

So let’s say they now want a tag line. Not wanting to limit themselves,
they develop a “positioning” statment such as “We’re more than just
sporting goods”. The logo is a large “S” on a triangle. So the store opens
and a customer sees an ad that says

“Summit… We’re more than just sporting goods”

What does that say about the company? Not much!

Let’s say another bunch of enterprising types get together and decided
to place all their marbles on basketball equipment. They name their
company…

Slam Dunk!

…and their tag line is “Score Huge Savings Everyday!” Which of these
two companies are you going to remember? Arguably the first company
may have more selection and better prices… but how would you know?
At least with the second company you know what they are claiming…
basketball equipment for less.

To add to their new image, they incorporate “Hoop it up Friday” where
all shoes are half price… scoreboards show how many items were sold
that day… buzzers go off when an in-store sale is announced. Now the
name begins to take on an identity, a personality, a predictable nature…
a brand!

This brand can be further stengthened by adding a jingle, using the
corporate colors throughout the store interiors, using the name in the
product line (i.e. Slam Dunk shoelaces), etc. If done well, a customer
should be able to describe a company as well as they describe a friend.
Think Apple… clean, attractive, likes music, fun to work with, creative,
innovative, etc. It goes way beyond just the name Apple or the logo.

So when developing a company, start with a great name and then go
from there. Add personality that customers can relate to and remember.
Own a “position” in their minds, rather than avoiding one. Be what you
are instead of what you think you need to be to attract every potential
customer. Then you’ll be memorable, effective and real. And those
qualities make for a great brand.

Phil Davis is an 18 year veteran of naming and branding. His work can
be viewed at http://PureTungsten.com

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November 22, 2006
FHA Loans Look Strong

We take long-term mortgages for granted today, but it wasn’t always that way. Long ago it was likely that if you financed a home you borrowed money with a five-year “term” mortgage — and even then you needed 50 percent down. When the five years was up, you went and got a replacement loan.

But term loans have a built-in problem: They’re not always available, especially if people lose jobs or if home values decline. That was a common situation after the Great Depression, but in 1934 the newly-formed Federal Housing Administration (FHA) began offering long-term mortgage loans insured by the federal government. The result was that millions of people could get long-term mortgages with little down that would allow them to ride-out tough times.

Today the FHA mortgage program remains an important option — more than 555,000 FHA loans were originated in 2005. That’s a big number, but it’s a lot less that the 827,000 FHA loans started in 2004 or the 1.53 million originated in 2003.

Whatever the numbers, if you’re a first-time buyer or someone looking for liberal qualification standards, the FHA program is worth considering. And given coming changes in the lending industry, it’s likely that we’ll see a lot more FHA loans in 2006 and beyond.

Under the FHA program you can buy with as little as 3 percent down. That’s 97-percent financing, a good deal by traditional standards though it’s fair to point out that 100-percent financing is now widely available. However, the 3-percent downpayment can be in the form of a gift or grant — in fact for the past decade the FHA has even allowed couples to establish a “bridal registry” where friends and relatives can contribute to a downpayment fund.

In addition, the FHA program also allows owners to kick-in a “seller contribution” of 1 percent to as much as 6 percent of the sale amount. While you can bet that most sellers will not joyously give up money to help purchasers, in a buyer’s market a seller’s contribution might be the difference between “sold” and stilled listed.

To qualify for a mortgage lenders look at your monthly income and expenses. For a conventional loan the guidelines might allow you to spend 28 percent of your gross monthly income on housing costs such as mortgage interest, principal, property taxes and home insurance (PITI). In addition, loan guidelines might allow you to spend 36 percent on PITI plus other monthly debts such as credit card bills and auto loan payments.

With FHA fixed-rate financing the usual ratios are 31/43 — liberal standards that will allow borrowers to get more financing than with conventional loans. FHA also offers an “energy efficient mortgage” or EEM. If you have an energy-efficient home the FHA believes you’ll have lower utility costs so there’s more money in the till each month for mortgage payments. The FHA guidelines allow for 33/45 ratios with EEM financing.

There are, however, some complications with FHA mortgage financing. Under the FHA program you’re buying with little down. This is possible because FHA insures the loan and you pay an insurance premium. The premium is equal to 1.5 percent of the sale price at closing (an amount which can be financed) and .5 percent per year for the outstanding loan balance. In other words, if you can buy with 20 percent down or with 80-10-10 financing you may want to skip the FHA program and avoid the insurance fees.

FHA also has a complex set of loans limits which means there may not be enough loan money to buy a property.

For instance, this year the conventional loan limit for single-family homes in the continental U.S. is $417,000. By law, the maximum FHA mortgage is 87 percent of the conventional loan limit, or $362,790 in 2006. However, this upper loan figure is only available in high-cost areas — and in many high-costs areas FHA loans are simply insufficient to acquire typical homes.

If you live in a community with less expensive housing it’s likely that the amount you can borrow under the FHA program will be lower. Larger FHA loans are available for two-, three- and four-unit properties, providing at least one unit is owner-occupied. Your mortgage lender can explain the amount of FHA financing available in your community for the type of property you want to purchase.

For the past few years there has been another factor which has made FHA loans less attractive than some other forms of financing, a factor which may go far to explain the loan’s declining popularity.

Beginning in 1998, the FHA started something called the Homebuyer Protection Plan. The idea was to have appraisers examine homes for physical defects — not a bad thought except that appraisers are qualified as not professional home inspectors.

Many homeowners thought they might save money because an FHA appraisal under the so-called protection plan sure sounded like a home inspection. It wasn’t, but as a result many buyers decided not to get their property checked by a professional inspector.

HUD said that FHA appraisers who did not meet its requirements could be prosecuted under the federal False Claims Act. The appraisers then did what sensible people do: They raised their rates because of the new requirements or refused to appraise homes for FHA borrowers. Lenders, in turn, began advising borrowers to try other programs if only because it was easier to find an appraiser.

The HUD effort was not adopted by conventional lenders or the Department of Veterans Affairs. And one home approved for FHA financing in Detroit was found to have 181 building code violations — perhaps not a world record but so embarrassing that HUD bought back the property from the owners.

On December 19th last year, HUD announced that appraisers would no longer be responsible for reporting “cosmetic defects, minor defects or normal wear and tear” including such things as leaky faucets, soiled carpeting, poor workmanship or trash in the crawl space.

What the new HUD appraisal standards really mean is this: If you want to buy a home with FHA financing, that’s great — just make sure you get both an appraisal and a professional home inspection. The appraiser can establish the value of the property and the inspector will check the property to determine its current physical condition.

This is as it should be for all homes and all forms of financing. An appraisal is simply not a home inspection and buyers are well-served getting both.

As to FHA loans, without needless and sticky appraisal standards you’ll see more of them in 2006. An inherently good loan is once-again available to borrowers on increasingly-competitive terms.

—————————————————————

Peter G. Miller is a syndicated real estate and personal finance columnist who appears 70 newspapers.

Search local mortgage lenders now!

Go here for online refinancing and second mortgage loans.

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November 15, 2006
How to SAVE Yourself from Spending too Much Money on Advertising!

How much money have you spent in Advertising, Promotion & Marketing? If you’re like most people you’ve probably spent over $1000 or more. Many individuals and companies have spent $2000 to $50,000 in Advetising within a course of 1 Year… Ouch!

We all know that in order to succeed in business, we all have to do a lot of advertising right!… However why are we spending so much on advertising? “Could it be because others are doing the work for us?” I have a clear answer to the question, read on…

So why are we spending so much on advertising? After all we are in the 21st century and we need all the advertising that we can get to compete with our relentless competitors. But the reason why were’re spending so much is because others are doing all the work for us and this means they can charge us as high as they feel…

Many of us are also always trying to compete with the large companies who are spending thousands and thousands of dollars on advertising. Small business need to stop doing this. Consider yourself, as a small business, luckier than the large businesses, because you don’t have to worry about losing money when you do Advertising…

Why because the only advertising you should be doing is low cost advertising like Ezine Advertising, low cost opt-in email advertising, low cost pay per click search engines and low cost classified advertising. My favorite would have to be a Solo Ad in an Ezine or Online Newsletter, it has always given me excellent (ROI)Return On Investment.

Don’t try to compete with the large companies with the fancy graphics and expensive advertising. Let them spend all they want in expensive advertising, many of them don’t realize that it’s extremely risky or if they do know that it’s risky, they simply don’t care.

Take Television Advertising and Banner Advertising for instance… Many companies have spend millions of dollars on it, sometimes it works and sometimes it doesn’t and many have failed.

Now don’t get me wrong you can still make profits from other people handling your advertising, but please understand that if others are doing the work for you all the time, you wouldn’t be taking full advantage of the Internet’s Technology. Understand that you too have the same potential as others. So these are what you need to do that will be totally Critical to Your Success and save you from spending too much on advertising…

- Generate tons of Traffic (visitors) to your Business!

- Put together a Powerful Presentation for your visitors!

- Learn How to Advertise for FREE!

I really want to introduce you to some powerful FREE Tools that will let you do all 3 and also allow you to have the same potential that others large companies have when it comes to Advertising and Marketing. Please do not be afraid to “educate yourself” about how to use free tools and resources to generate massive traffic to your web site and still compete with the large companies, small businesses are rising at the speed of light. This is your turn to get the “free knowledge” you need to compete.

I’m not saying that you should stop spending money on Advertising, if your advertising is making you money today… continue doing what you’re doing, just use the free resources as a Powerful Supplement to your business for FREE Advertising!… Even if you have to use Bulk Opt-in Email Advertising. You should take advantage of any Email Marketing software that does that…

Copyright © 2005 by Koffi Amouzouvi

Koffi Amouzouvi is the “author” of a FREE Newsletter
called “Specialized Info Newsletter” to help customers
use the Most Powerful Marketing Software in 2005.
http://www.gemini3style.com

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