tax

Getting more Twitter Followers does NOT magically lead to sales

So, you have a lot of new Twitter Followers eh?  You may have gotten them by running a Karmaback Social Sweepstakes, or maybe you just been collecting them a while?  Well, here’s a news-flash, just having twitter followers is NOT enough to get you sales.  You have to do something else, 2 things actually, and one of them has to be “extraordinary”.

First, and foremost, you have to offer a product or service that is TRULY valuable to the target market.  It won’t have value for everyone.. but to those that it was built for, it has to be THE most valuable solution they can think of.  Your product/service has to be “extraordinary” to the target market.

Example: You make Caramel Ice Cream, with Caramel Swirls, and Caramel Candy inside, with Caramel topping.   You make the “Quadruple Caramel Ice-cream”.  *** THIS is PERFECT for me (Harlan) the target customer and people who: 1.) wants ice-cream, 2.) loves caramel, and 3.) can order the ice-cream (either lives nearby or can get it delivered).

Example 2:  You fix Small Business Tax Problems, by training small business owners the “simple steps to managing your books and filing taxes” and provide backup tax help hourly at just $40 per hour.  *** THIS is the PERFECT solution for me, and People who: 1.) have a small business, 2.) have tax headaches and fears, 3.) want to do as much as we can ourselves to save money, but 4.) need to have backup ready instantly, and 5.) can order/use the service (either via Web or in the same city).

NOTICE: These examples are VERY specific products, and NOT built for everyone in the whole world.  (some fools actually don’t like Caramel!)

Now, you’ve got an EXCEPTIONAL PRODUCT… you’ve got to make an EXCEPTIONAL DEAL to the PEOPLE THAT NEED IT, and then, and only then, will you get sales from Twitter.

EXAMPLE;   @QuadrupleCaramelIceCream  live in Austin?  Try a Quad Caramel Ice-cream from #QCIC for just $2 with this code: bit.ly/34f6

or

EXAMPLE: @SMBTaxHelp get a $250+ training and tax consultation for just $40 with this code: bit.ly/554d

….

Are you getting it?
To me, (who wants/needs both of those things already)… I’m DEFINITELY going to get the icecream.. and I am GOING to check out SMBTaxHelp and see if it really is $250+ in value.

…
Engineering Formula:
(ExceptionalTargetedProduct + SpecialOffer) * TwitterFollowersThatNeedYourStuff = Win Sales with Twitter

Let Karmaback help you win: http://karmaback.com/platform

*photo from: http://slurplog.blogspot.com/2005/10/food-fanny-ice-cream-vietnam-hcmc.html

Engineers fear Lawyers… A Company’s First Steps are Easy

Fear: HOW DO I START A COMPANY? MANY Engineers freeze up with fear right here. They don’t realize just how easy it is to start a business these days. In Texas, everything can even be done online, and the legal part is really really simple. (NOTE: i’m not a lawyer, so do not consider this legal advice… side-note: see, even I’m afraid of lawyers).

Although this link has more detailed information and all the needed links, I’m going to try to make the process super simple in my own words.

1. Pick S-Corp or C-Corp. The only difference I can tell is that S-Corp does not double-tax dividends, but only allows investment by individuals. Most people should choose C-Corp if they plan to be invested in , and S-Corp if they are not. Don’t fret… you CAN change it later by reincorporating.

2. File appropriate form online (in Texas, that is here): http://www.sos.state.tx.us/corp/sosda/index.shtml (costs $300, so make sure your business name is unique, a simple search is available same site!)
a. Choose some amount of stock that is big enough, but not too big. I chose 10,000,000 shares to start at par of $0.001.
b. Must have at least 1 director (can be same person throughout the document).

3. Get EIN from IRS (this is needed to file taxes, which is the ONLY requirement to continue as a company): http://www.irs.gov

4. File for state tax if appropriate. Texas is here: http://www.cpa.state.tx.us/taxpermit/

5. Enjoy being a company.

Its that easy. Now that you are a company, you might want to issue some shares to yourself. If you do, make sure you file an IRS 83-b form within 30 days. http://www.fairmark.com/execcomp/sec83b.htm

As for giving yourself stock, I recommend it! And I recommend you get this stock in exchange for services rendered (such as business plan preparation, time spent in meetings/formation, etc.). A good founder split is NOT EVEN SPLIT! If there are 2 people, it should be at least 51%/49%. In fact, I HIGHLY recommend that one founder (the one who is leading the effort) get 51%. Reasons: this avoids any future problems related to who is in control/direction of company, this prevents any number of founders from ganging up on the others, and this makes good sense if you want to raise money because that founder will have enough power (hopefully) to stay on the Board of Directors and protect the other founders interest.

A simple MOU can make the above reality. If you actually issue the stock (e.g. with a directors approval or other legal mumbo-jumbo), then you will need a lawyer IMHO.

Frankly, beyond this point of a company, having a decent (fairly priced) legal counsel for the company is a good idea. (Yes, my fear of lawyers kicks in now). But you DONT have to have one to form the company, and you SHOULD wait to get a lawyer until you raise money, or start negotiating contracts/earning revenue/making sales.

Best of luck, and sometimes, fear is not a bad thing… but lawyers don’t cost that much. I have found good legal advice as low as $200-$300/hour… don’t pay more email me/message me first, I’ll give you a few referrals.

–photo credits