Tuesday, January 25, 2011

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Monday, January 24, 2011

Making Money Cash






Yes, the GOP’s new chairman needs to raise money. But his biggest challenge will be rebuilding the ground game, which cost Republicans precious seats last fall.


All but a handful of the 168 members of the Republican National Committee (RNC) wanted Michael Steele out, but the race for GOP chairman still took six ballots. While Wisconsin Chairman Reince Priebus led every round, he won the final one with 97 votes, just 12 more than he needed.


The candidates largely agreed on the problems of the Steele era and many of the answers, but doubts lingered about every contender. Priebus’ advantage came from early endorsements by some of the committee’s respected figures, including Henry Barbour and Alec Poitevint, the national committeemen from Mississippi and Georgia, respectively. Enough committee members concluded if Reince was good enough for Henry and Alec, he was good enough for them.


Now comes the much harder part. The RNC is not just broke: it’s deeply in debt and reportedly without enough money to make payroll when the balloting began last Friday. The RNC has seen a nearly $50 million swing from almost $25 million in the bank when Steele became chairman to more than $21 million in the red when he left. The GOP HQ is likely to see checks roll in this week from donors grateful Steele is out, but it’s hard to raise money to pay off debt.


Priebus has told GOP insiders he understands the RNC’s grave financial position and will work the problem from both ends. He’s already fired Steele’s picks to run the 2012 Tampa Republican Convention. They were hired and dispatched to Florida last summer, more than a year before is customary, and immediately began running up big housing bills and other expenses. Priebus has also begun an extensive outreach to the GOP’s fundraising pooh-bahs to explain there’s a new fiscal regime in place. No more bloated entourages, sweetheart deals, and lack of financial oversight.


Priebus has begun an extensive outreach to the GOP’s fundraising poobahs to explain there’s a new fiscal regime in place. No more bloated entourages, sweetheart deals, and lack of financial oversight.





Reince Priebus conducts committee business after being elected chairman of the National Republican Committiee during the RNC Winter Meeting on Jan. 14, 2011. (Photo: Alex Wong / Getty Images)


Despite Chairman Steele’s gaffes and financial shenanigans (like the big bar tab at a lesbian bar in L.A.), the RNC has seen healthy increases in direct mail and Internet giving. But this wasn’t matched by a growing total of larger gifts of up to $30,400, the limit for what the Republican and Democratic National Committees can accept. Steele didn’t do what a national chairman is supposed to do: spend lots of time on the phone begging.


Successful party chairmen spend half of their life on the phone or visiting major donors, making the case for checks from them and others in their rolodexes. This wasn’t Steele’s style. It will have to be Priebus’ style—and the major proven fundraiser he recruits as RNC finance chairman. There’s nowhere to go but up. Steele once tried to recruit a candidate for the finance job by promising to give a speech wherever the prospect wanted him to go. The guy turned Steele down, believing that if the chairman thought his making speeches was what made the cash register ring, Steele didn’t understand fundraising.


Then there’s the RNC’s political role. The good news for the quiet, almost shy but personable new chairman is he doesn’t have to do a lot of television. There is a phalanx of presidential candidates and congressional leaders to take on that task. He must focus on rebuilding the party’s once-vaunted ground-game operations handling voter identification, registration, and get-out-the-vote (GOTV).


The “72-Hour” or “Victory” program depends on volunteers drawn from local and state party committees and candidate campaigns. But only the RNC can provide the direction, training, technology, and metrics to guide these massive efforts. And the RNC’s cash flow is necessary to top off state party budgets in battleground states. Coming from Wisconsin, a place with a strong tradition of grassroots GOTV activity, Priebus knows all this is essential.


The GOP lost dozens of close contests in 2010 because the RNC provided only a fraction of the funding for “Victory” efforts that it has in years past. From more than half a dozen congressional races to gubernatorial contests in Vermont and Connecticut to Senate races in Nevada and Colorado, the RNC was virtually AWOL on get-out-the-vote efforts.


Restoring the RNC’s effectiveness requires time, discipline, leadership, and money. The new Republican national chairman has time and appears to have the needed discipline. Whether he gets the job done will depend on his leadership and fundraising.


Those on the RNC who know the new chairman think Reince is up for the big job. Lots of 2012 Republican hopefuls up and down the ballot hope that’s true. Count me as one. I made my contribution today online. Talk about change bringing hope.


Karl Rove served as senior advisor and deputy chief of staff to former President George W. Bush until 2007.


Like The Daily Beast on Facebook and follow us on Twitter for updates all day long.


For inquiries, please contact The Daily Beast at editorial@thedailybeast.com.








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[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

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All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

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All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

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Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.


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Reports: Suicide bomber kills 31, injures at least 100 at Moscow <b>...</b>

[Updated at 10:51 a.m.] Footage from inside Moscow's Domodedovo Airport showed several police in a smoke-filled section of the airport. There were several bodies lying on the floor, and video from another part of the airport showed ...

AMERICAblog <b>News</b>: WikiLeaks: Middle East peace process exposes <b>...</b>

All the US government was interested in, Erekat went on, was "PR, quick news, and we're cost free", ending up with the appeal: "What good am I if I'm the joke of my wife, if I'm so weak?" | Facebook | Reddit | Digg | StumbleUpon ...

Transfer <b>news</b>: Blackpool skipper Charlie Adam ready to go to war <b>...</b>

Charlie Adam is poised to tell the Seasiders that he wants out, worried the Anfield move may pass him by.

Tuesday, January 18, 2011

Money Making


You're probably reading this on junk. And I'm not talking about newsprint - industry woes aside, that's high-quality stuff. But if you're on a computer or an iPad, and you're not plugged into an Internet jack in the wall? Junk, then.



But it's not your MacBook or your tablet that's so crummy. It's the spectrum it's using.



Spectrum, in the words of FCC Chairman Julius Genachowski, is the economy's "invisible infrastructure." It's the interstate system for information that travels wirelessly. It's how you get radio in your car, service on your cellphone and satellite to your television. It's also how you get WiFi.



But not all spectrum is created equal. "Beachfront spectrum" is like a well-paved road. Lots of information can travel long distances on it without losing much data. But not all spectrum is so valuable.



In 1985, there was a slice of spectrum that was too crummy for anyone to want. It was so weak that the radiation that microwaves emit could mess with it. So the government released it to the public. As long as whatever you were doing didn't interfere with what anyone else was doing, you could build on that spectrum. That's how we got garage-door openers and cordless phones. Because the information didn't have to travel far, the junk spectrum was good enough. Later on, that same section of junk spectrum became the home for WiFi - a crucial, multibillion-dollar industry. A platform for massive technological innovation. A huge increase in quality of life.



There's a lesson in that: Spectrum is really, really important. And not always in ways that we can predict in advance. Making sure that spectrum is used well is no less important than making sure our highways are used well: If the Beltway were reserved for horses, Washington would not be a very good place to do business.



But our spectrum is not being used well. It's the classic innovator's quandary: We made good decisions many years ago, but those good decisions created powerful incumbents, and in order to make good decisions now, we must somehow unseat the incumbents.

Today, much of the best spectrum is allocated to broadcast television. Decades ago, when 90 percent of Americans received their programming this way, that made sense. Today, when fewer than 10 percent of Americans do, it doesn't.



Meanwhile, mobile broadband is quite clearly the platform of the future - or at least the near future. But we don't have nearly enough spectrum allocated for its use. Unless that changes, the technology will be unable to progress, as more advanced uses will require more bandwidth, or it will have to be rationed, perhaps through extremely high prices that make sure most people can't use it.



The FCC could just yank the spectrum from the channels and hand it to the mobile industry. But it won't. It fears lawsuits and angry calls from lawmakers. And temperamentally, Genachowski himself is a consensus-builder rather than a steamroller.



Instead, the hope is that current owners of spectrum will give it up voluntarily. In exchange, they'd get big sacks of money. If a slice of spectrum is worth billions of dollars to Verizon but only a couple of million to a few aging TV stations - TV stations that have other ways to reach most of those customers - then there should be enough money in this transaction to leave everyone happy.



At least, that's some people's hope. Some advocates want that spectrum - or at least a substantial portion of it - left unlicensed. Rather than using telecom corporations such as Verizon to buy off the current owners of the spectrum, they'd like to see the federal government take some of that spectrum back and preserve it as a public resource for the sort of innovation we can't yet imagine and that the big corporations aren't likely to pioneer - the same as happened with WiFi. But as of yet, that's not the FCC's vision for this. Officials are more worried about the mobile broadband market. They argue (accurately) that they've already made more beachfront spectrum available for unlicensed uses. And although they don't say this clearly, auctioning spectrum to large corporations gives them the money to pay off the current owners. But even so, they can't do that.



"Imagine someone was given property on Fifth Avenue 50 years ago, but they don't use it and can't sell it," says Tim Wu, a law professor at Harvard and author of "The Master Switch." That's the situation that's arisen in the spectrum universe. It's not legal for the FCC to run auctions and hand over some of the proceeds to the old owners. That means the people sitting on the spectrum have little incentive to give it up. For that to change, the FCC needs Congress to pass a law empowering it to compensate current holders of spectrum with proceeds from the sale.



One way - the slightly demagogic way - to underscore the urgency here is to invoke China: Do you think it's letting its information infrastructure stagnate because it's a bureaucratic hassle to get the permits shifted? I rather doubt it.



Of course, we don't want the Chinese system. Democracy is worth some red tape. But if we're going to keep a good political system from becoming an economic handicap, there are going to be a lot of decisions like this one that need to be made. Decisions where we know what we need to do to move the economy forward, but where it's easier to do nothing because there are powerful interests attached to old habits. The problem with having a really good 20th century, as America did, is that you've built up a lot of infrastructure and made a lot of decisions that benefit the industries and innovators of the 20th century. But now we're in the 21st century, and junk won't cut it anymore.


John Rubino at Dollar Collapse.com obviously thinks, like I do, that inflation is a Terrible, Terrible Thing (TTT).


To prove it, and to simultaneously prove to my wife, kids, relatives, co-workers and neighbors that I am not the “weirdest man who ever lived” as concerns inflation, I call him up on the phone!


A man whom I assume is Mr. Rubino answers, “Hello?” and I say, “John! John, old buddy, old pal! This is Mogambo, calling to verify that you are scared out of your freaking mind about how inflation is rising all around the world because central banks, similarly all around the world, are creating more and more money, which causes inflation in prices, which is made worse for foreigners by us dumbass Americans having a trade deficit of over $600 billion a year, equaling a third of combined global trade deficits, which means that we are buying actual things from foreigners and exporting $600 billion dollars overseas, increasing their money supplies and thus increasing their inflation in prices, meaning that we should be buying gold and silver with fevered abandon, and how the usual reaction to impending starvation by the masses is such that we should be building fortresses in our backyards, bristling with guns and cannons, and maybe some of those cool Agent 007 James Bond devices like, you know, smoke screens, ejector seats, laser beams, and heat-seeking rockets, because (my voice rising to crescendo) We’re Freaking Doomed (WFD) thanks to the foul Federal Reserve creating so, so, so much freaking much money that it boggles the mind (‘boing!’) to even contemplate a Quantitative Easing II to effect an increase in the US money supply (to monetize government debt, no less!) of a whopping $600 billion in the next six months, of which half will end up overseas in the accounts of foreigners thanks to the trade deficit, who will use the money to buy US assets, thus repatriating the cash back to the USA to do its inflationary havoc whilst we strangely export the ownership of means of production to what I assume are sinister foreign forces, probably aligned with Illuminati conspirators, New World Order bozos, rogue government agents, extraterrestrial forces, Satan, or something. I mean, who really knows?”


He then replies, tellingly, “What? Who?” whereupon the line abruptly went dead, also proving that the CIA and/or the FBI and/or unknown government agents and/or aliens from outer space are not only tapping my telephone, but doing a poor job of it, too!


Anyway, I think Mr. Rubino’s position is clear when he headlines his recent essay “‘Bring us Sugar!’ US Inflation And the Rest of the World”, with the rest of the essay being about inflation breaking out all over the place!


And if there is one thing that a Junior Mogambo Ranger (JMR) knows, it is to buy gold and silver when inflation is rising, as it is, and will, because the Federal Reserve is creating lots and lots of money, which means, as proved 100% reliable by 4,500 years of history, that inflation in prices is Super Freaking Guaranteed (SFG), and the higher the increase in the money supply, the higher the inflation.


And, by that selfsame 4,500 years, it’s also proved that gold and silver will soar in value as all else Turns To Crap (TTC).


And with that kind of guaranteed and easy decision-making, what can you say except, “Whee! This investing stuff is easy!”?


The Mogambo Guru

for The Daily Reckoning


Economic Ruination from Money Creation to Price Inflation originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."





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Gov.-elect Robert Bentley intends to be governor over all, but <b>...</b>

elect Robert Bentley intends to be governor over all, but says only Christians are his 'brothers and sisters'. Published: Monday, January 17, 2011, 4:23 PM Updated: Monday, January 17, 2011, 6:14 PM. David White -- The Birmingham News ...

Soap <b>News</b>: &#39;AMC&#39;s&#39; Debbi Morgan Has Lyme Disease and More

A few weeks ago we reported that 'All My Children's' award-winning actress Debbi Morgan would be taking some time off from the soap. This week.

Modernizr <b>News</b>

We're kicking it off with some pretty exciting news right away. First, we've expanded our team to include Alex Sexton. Due to this addition we've also formalized our individual roles in the Modernizr Team, as such: ...


Friday, January 14, 2011

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Similarly, if part of the argument was over a bank account, Legal Aid will want repaying if there is a successful outcome with a value over £5,000. Let me give you a scenario. A couple are getting divorced and they are arguing over who owns the £50,000 in a bank account. The funded party claims that 50% of the money is theirs and the non-funded party is claiming that all the money belongs to them. The matter goes to court and the court decides that the money should be split 50/50 and awards £25,000 to the funded person. The bill for arguing litigation was £10,000.

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The board would want £10,000 of the £25,000.00 that was awarded leaving the legal aided person with only £15,000 out of the £25,000. Ouch! With regards to the exemption, if the amount that was being argued over was £10,000 and the award was 50/50 then half of £10,000.00 being argued over (assuming 50/50) is £5,000.00. There is a £5,000.00 exemption ring fenced and therefore the board would get nothing.


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Talk with your local branch banks. Credit unions are another great route to take and you should explore membership with a credit union to have more options open to you. The small, local branches are often more inclined to work with someone who has credit challenges. There is something special about the small-town effect when it comes to your relationship with the bankers.



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Hybrid Streetlights: Good Or Bad <b>News</b> For Utilities?

Urban Green Energy — a New York City startup that designs and manufactures small wind turbines — has released and installed the first of its new,

<b>News</b> Corp&#39;s The Daily iPad Newspaper Delayed By “Weeks, Not Months”

While we may all have our own opinions on whether News Corp's iPad-bound newspaper, The Daily, is a boondoggle or simply before its time, I think we were all at least looking forward to seeing what it was like. People were curious about ...

Giffords&#39; Eye Opening <b>News</b> - Political Punch

President Obama's dramatic news at last night's memorial service in Tucson that Rep. Gabrielle Giffords' has just minutes before opened her left eye for the first time since the shooting has created some confusion in light of news from ...


Thursday, January 13, 2011

Ways of Making Money



Everyone wants to know the secrets of the YouTube stars—how did they make successful careers out of YouTube, how do they make money and what advice do they have for hopefuls looking to follow in their footsteps?  Tubefilter’s ‘Secrets if YouTube Superstars’ panel at CES shed some light on these questions. Tubefilter’s editor and co-founder, Marc Hustvedt, moderated the panel, which was made up of YouTube megastars iJustine, Joe Penna (aka MysteryGuitarMan), Phil DeFranco, Freddie Wong and Brandon Laatsch.


You can watch the full thirty-seven minute panel in the video below, but I’d like to take a little time to recap some of the most interesting points that were brought up.  I think that Hustvedt asked great questions, leading the panelists to shed some very interesting light on the world of YouTube as a business.


Putting In The Work


I think that the most important thing that can be gleaned from the ‘Secrets Of The YouTube Stars’ CES panel is that you can’t go anywhere on YouTube without putting in lots and lots and lots of work.  There was a general consensus that these guys work an average of about 80 hours a week.  That’s an average of about 11.5 hours a day with no weekend!  And these guys have already made their YouTube channels a success, so just imagine how much work goes in to making a name for yourself when you’re starting out at the bottom.


iJustine says, “This is our life.  Every second of the day you’re working, essentially.  If you’re not posting videos you’re still tweeting, your updating Facebook or you’re updating all these social networks to tie back to your videos and keep people updated on what you’re doing.”  YouTube stars never sleep—it’s a 24/7 job.  Brandon Laatsch says, “We’ve pulled more all nighters in the last year than we did all throughout college.”  But what’s important to note is that these guys love their job.  If you have the passion and the drive, and you’re willing to put in the hours it can be incredibly rewarding.


Bringing Home The Bacon


The question on everyone’s mind is, how do YouTube stars make money?  The panelists are all paying the bills with money they make from YouTube videos, but how do they do it?


Joe Penna explains the two major ways that YouTube stars make money, in addition to the revenue that they earn through YouTube advertising.  One of these ways is through working with brands.  The other is through merchandising.


Penna, iJustine and DeFranco all have quite a lot of experience working with brands.  They seem to agree that working with brands is fantastic, as brands trust them to take creative control and allow them the budget to make bigger, better videos than they could otherwise.  Laatsch also pointed out that over the last year or so viewers have become a lot more accepting of brand deals.  At first there was a lot of name calling (i.e. “You’re a sell out!”), but now that viewers understand that this is what these guys are doing for a living they get that branding is a good thing as it enables them to make better videos.  All the YouTubers stressed that they incorporated branding into their videos in an unobtrusive way as to not freak their viewers out.


YouTube also helps with revenue through grant programs.  They helped DeFranco branch his single channel out into the six-channel DeFranco Inc. and they also sponsored Freddie and Brandon in a project in which they drove around in an RV for a month, making videos with their fans.


Personality


The most important thing that I think can be gleaned from this panel for wannabe YouTube stars is the importance of personality.  If you take a look at the top YouTube channels nearly all of them are supported by a personality.  MysteryGuitarMan makes music videos, but he’s sure to speak directly to his viewers in each and every one of his videos as well.  If you have a strong personality your viewers feel like they know you personally and this is one of the biggest keys to YouTube success.


DeFranco says that YouTube stars are different from television or movie stars because you may want to catch a glimpse of a television star but you’d like to sit and chat over a beer with a YouTube star.  You feel like you are friends with them, they influence you and they can’t wait for you to put out another video.


I’d also like to point out that this is fantastic for branding.  Brands can tap into an audience of millions when they turn to YouTube stars for promotional purposes and these millions trust these stars and are completely engaged and influenced by them.  This is much more direct and effective advertising that television advertising, and cheaper.  It’s a lot more bang for your buck!


Check out the full panel below to find out more from five of YouTube’s biggest stars.  What did you find most interesting about the panel?












What made this project so successful? After all, there are other iPod Nano projects. And it's a wristwatch, which even with the addition of a Nano, might not be the coolest or most necessary of accessories.



Bryce Roberts, the Managing Director of O'Reilly AlphaTech Ventures, points to some reasons he's identified that contributed to the success of the Lunatik/TikTok fundraising endeavor. These lessons that can be seen in other successful Kickstarter projects (such as Diaspora), but they're also applicable in many ways to more "traditional" funding efforts.



Tell a personal story



The Lunatik/TikTok "pitch" wasn't a bulleted list of qualifications or clients. Rather, the members of the team "told personal stories that created a connection to the project that had nothing to do with their professional pedigree." While this sort of storytelling doesn't boost their professional credentials, Roberts argues, it does give the entrepreneurs a certain personal authority and helps to connect them to funders and potential funders in a different way.



Roberts argues that the best fundraising pitches always emphasize this personal aspect. "It's a given," he writes, "that if I chose to invest in you I believe I can make money, but there are the intangibles around personality, perspectives, and life experiences that will make a potential funder more likely to want to believe you."



Tell the product's story



If you watch the TikTok video (below), you'll see the product is featured throughout. This demonstrates what the product can do - and that it can do what the startup promises. The video also demonstrates the larger potential of the product. These might be "small, nice little features" that some investors would dismiss. But with the crowdfunding model, the right storytelling around this seems crucial. "The difference between a nano strapped to a wristband and a premium quality, highly designed, customizable piece of wearable technology is simply a matter of how you tell the story."



But even when you aren't using a site like Kickstarter to raise money, it's crucial that your product be front-and-center in your presentations.



Give rewards and issue progress reports



Investors, by definition, invest in order to make a financial return. Nonetheless, argues Roberts, you should offer more than simply the promise of "making money." These sorts of non-financial rewards can be personal and personalized. By design, Kickstarter tells its users, "the best way to inspire support is to offer people great rewards. Everyone loves limited editions, one-of-a-kinds, and fun experiences (parties, screenings, balloon rides!). Spend some time brainstorming your rewards and people will respond. No one needs another coffee mug."



And as your project and your company are constantly evolving, it's good to keep investors and potential investors up-to-date on your progress. In the case of TikTok, the creators even filmed themselves in China when they traveled to the factory where the watch kits were being made. But the same could be said for all funding relationships; keep your investors apprised of "how you're making progress and how your story is continuing to unfold in a big and important way."




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President Obama spent much of Wednesday huddled with a group of business executives, an effort The New York Times said afterward "went a long way to reset the tone of the relationship between Mr. Obama and corporate America" in the eyes of the corporate chieftains who attended.


That's all well and good, if the problems with today's economy were rooted in a lack of warmth and fuzziness between President Obama and corporate CEOs. But they aren't. For decades, the interests of corporate lobbyists—the people acting on behalf of many of the executives at the White House meeting—have been at odds with the interests of working people. The White House "making peace" with corporate CEOs, to use The Washington Post's description of the meeting, is one thing. But Wall Street needs to make peace with those of us who have been forced, as a result of the conservative policies they promoted, to live through a decade of stagnant wages, unemployment and underemployment. Wall Street needs a reset with working America.


Unfortunately, it's not at all clear that this meeting delivered much for working-class people. The Post reported that "after the meeting, several chief executives said their conversation with the president was constructive and open as they discussed education, trade, taxes and jobs. But the executives and Obama remained vague about specific outcomes they expected from the meeting."


And one of the few specifics reported from the meeting is highly disturbing. Bloomberg reported that the CEOs had their hands out for yet another tax cut:


While Obama has called on the CEOs to spend the $2 trillion in cash their companies have accumulated on job creation, the executives said much of that is earnings from overseas sales that are retained abroad to avoid paying U.S. corporate income tax. U.S.-based multinational corporations pay corporate income tax on earnings when they are brought back to the U.S. If the revenue remains abroad, either in cash or investment in overseas facilities, the money isn’t taxed.


Obama said he would consider the issue and asked what the executives would be willing to give up in other corporate tax rates to make sure it remains revenue neutral.


Actually, in many cases the earnings involved are not necessarily from "overseas sales." Many multinational corporations have created elaborate schemes to ensure that domestic sales are credited as foreign ones in order to avoid paying corporate income tax. It's how Google avoids paying billions in corporate income taxes to the United States and the United Kingdom.


President Obama has rightly pledged to go after this tax dodge and sent some proposals to Congress last year that Citizens for Tax Justice said were "steps in the right direction." Businesses have countered with demands for a "tax holiday," The Financial Times reported in October. Again, at least until now, the Obama administration has resisted. One reason, as the FT notes, is that there is no guarantee that the money coaxed back into the U.S. will actually be used for investment and job creation.


We've been here before. In 2004 the Bush administration and the Republican Congress gave corporations a tax amnesty on profits sheltered overseas. The benefits for workers were negligible. Gannett News Service reported earlier this year in a story about Sen. Barbara Boxer's support for an offshore tax break:



A Congressional Research Service analysis published in January 2009 found that 10 of the top dozen companies that took advantage of the 2004 break cut jobs. Hewlett-Packard repatriated $14.5 billion and laid off 14,500. Pfizer repatriated $37 billion and cut 9,000 jobs in 2005.


California-based Oracle and Intel also repatriated foreign earnings. The money helped Oracle acquire two U.S. companies and helped Intel build a new factory


.


The Business Roundtable, a champion of the tax amnesty idea, says of the money that came back to the U.S. as a result of 2004 holiday, 25 percent went to capital investments and 23 percent to hiring and training new workers. Even that positive spin suggests the country doesn't get very much for coaxing businesses to do less than what they should be dong as corporate citizens.


Corporations succeed in the United States not simply because of what they do on their own. Their success depends on the quality of public schools that prepare their workers, transportation networks that move goods and people, agencies that help keep people healthy and safe, and efforts to ensure that each American is able to maintain at least a minimal standard of living. All of these are government functions that corporations undercut when they engage in schemes to avoid paying taxes, leaving the rest of us to struggle with the consequences.


The businesses that profit as a result of the public commons that We the People provide should not have to be given special inducements to pay their fair share toward supporting that commons. (As it stands now, contrary to conservative claims to the contrary, the truth is U.S. corporations pay some of the lowest tax rates of major industrial powers.) That is the starting point from which President Obama should begin in building a new tax framework in which businesses and Main Street can profit together in a new economy.


Even as corporations are seeking a tax holiday, these same corporations spent hundreds of millions of dollars electing congressional candidates opposed to government initiatives that would stimulate the economy and stoke the demand that would coax their hoarded cash off the sidelines. Instead of egging on, tacitly or otherwise, the anti-spending crowd, these CEOs could still choose to back a real economic stimulus—not just cross-your-fingers-and-hope-they-trickle-down tax cuts, but real investment in the economy's future.


Lew Prince, a small business owner in St. Louis, recently penned an op-ed that offered a more Main Street perspective on what businesses need to prosper:



We shouldn’t borrow billions more dollars from China and Saudi Arabia to give to the wealthy. Instead the wealthy should pay their fair share. We need adequate tax revenue to invest in our economy. More tax cuts at the top won’t create jobs. But we will create jobs and strengthen our economy by rebuilding our crumbling roads, bridges, public transit, levees and water and gas pipelines. We will save and create jobs by investing in education and clean energy research and manufacturing now growing much more rapidly in other countries.


Now that Obama has met with business executives, his next step should be a summit meeting with the unemployed. And then let's have a real debate in which business executives and their conservative benefactors are called to account on whether they are really interested in the fates of American workers or just in their own balance sheets.



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PHOENIX -- A 22-year-old man described as a social outcast with wild beliefs steeped in mistrust faces a federal court hearing on charges he tried to assassinate Rep. Gabrielle Giffords in a Tucson shooting rampage that left six people ...


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Just posted: Olympus XZ-1 samples gallery: Digital Photography Review

Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.

Verizon Wireless is ready to make <b>news</b> on Tuesday | 9 to 5 Mac <b>...</b>

It pretty clearly seems to be a sarcastic remark about the large volume of Verizon iPhone stories. This one seems pretty redundant, of course Verizon plans to make news, why else would they call a press announcement? ...

Arizona Shooting <b>News</b> (LIVE UPDATES)

PHOENIX -- A 22-year-old man described as a social outcast with wild beliefs steeped in mistrust faces a federal court hearing on charges he tried to assassinate Rep. Gabrielle Giffords in a Tucson shooting rampage that left six people ...


bench craft company reviews bench craft company reviews

Just posted: Olympus XZ-1 samples gallery: Digital Photography Review

Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.

Verizon Wireless is ready to make <b>news</b> on Tuesday | 9 to 5 Mac <b>...</b>

It pretty clearly seems to be a sarcastic remark about the large volume of Verizon iPhone stories. This one seems pretty redundant, of course Verizon plans to make news, why else would they call a press announcement? ...

Arizona Shooting <b>News</b> (LIVE UPDATES)

PHOENIX -- A 22-year-old man described as a social outcast with wild beliefs steeped in mistrust faces a federal court hearing on charges he tried to assassinate Rep. Gabrielle Giffords in a Tucson shooting rampage that left six people ...


bench craft company reviews bench craft company reviews

Just posted: Olympus XZ-1 samples gallery: Digital Photography Review

Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.

Verizon Wireless is ready to make <b>news</b> on Tuesday | 9 to 5 Mac <b>...</b>

It pretty clearly seems to be a sarcastic remark about the large volume of Verizon iPhone stories. This one seems pretty redundant, of course Verizon plans to make news, why else would they call a press announcement? ...

Arizona Shooting <b>News</b> (LIVE UPDATES)

PHOENIX -- A 22-year-old man described as a social outcast with wild beliefs steeped in mistrust faces a federal court hearing on charges he tried to assassinate Rep. Gabrielle Giffords in a Tucson shooting rampage that left six people ...


bench craft company reviews bench craft company reviews

Just posted: Olympus XZ-1 samples gallery: Digital Photography Review

Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.

Verizon Wireless is ready to make <b>news</b> on Tuesday | 9 to 5 Mac <b>...</b>

It pretty clearly seems to be a sarcastic remark about the large volume of Verizon iPhone stories. This one seems pretty redundant, of course Verizon plans to make news, why else would they call a press announcement? ...

Arizona Shooting <b>News</b> (LIVE UPDATES)

PHOENIX -- A 22-year-old man described as a social outcast with wild beliefs steeped in mistrust faces a federal court hearing on charges he tried to assassinate Rep. Gabrielle Giffords in a Tucson shooting rampage that left six people ...


bench craft company reviews bench craft company reviews

Just posted: Olympus XZ-1 samples gallery: Digital Photography Review

Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.

Verizon Wireless is ready to make <b>news</b> on Tuesday | 9 to 5 Mac <b>...</b>

It pretty clearly seems to be a sarcastic remark about the large volume of Verizon iPhone stories. This one seems pretty redundant, of course Verizon plans to make news, why else would they call a press announcement? ...

Arizona Shooting <b>News</b> (LIVE UPDATES)

PHOENIX -- A 22-year-old man described as a social outcast with wild beliefs steeped in mistrust faces a federal court hearing on charges he tried to assassinate Rep. Gabrielle Giffords in a Tucson shooting rampage that left six people ...


bench craft company reviews bench craft company reviews

Just posted: Olympus XZ-1 samples gallery: Digital Photography Review

Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.

Verizon Wireless is ready to make <b>news</b> on Tuesday | 9 to 5 Mac <b>...</b>

It pretty clearly seems to be a sarcastic remark about the large volume of Verizon iPhone stories. This one seems pretty redundant, of course Verizon plans to make news, why else would they call a press announcement? ...

Arizona Shooting <b>News</b> (LIVE UPDATES)

PHOENIX -- A 22-year-old man described as a social outcast with wild beliefs steeped in mistrust faces a federal court hearing on charges he tried to assassinate Rep. Gabrielle Giffords in a Tucson shooting rampage that left six people ...


bench craft company reviews bench craft company reviews

Just posted: Olympus XZ-1 samples gallery: Digital Photography Review

Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.

Verizon Wireless is ready to make <b>news</b> on Tuesday | 9 to 5 Mac <b>...</b>

It pretty clearly seems to be a sarcastic remark about the large volume of Verizon iPhone stories. This one seems pretty redundant, of course Verizon plans to make news, why else would they call a press announcement? ...

Arizona Shooting <b>News</b> (LIVE UPDATES)

PHOENIX -- A 22-year-old man described as a social outcast with wild beliefs steeped in mistrust faces a federal court hearing on charges he tried to assassinate Rep. Gabrielle Giffords in a Tucson shooting rampage that left six people ...