Product creation could be a frightening subject for a lot of Internet marketers to face. Some folks who get in the game with the intention of making a full time income are completely ignorant as to how an online business operates. One of the most profitable ways to create online cash is by creating a product that others are happy to pay for.

Product creation is legitimate method of generating money through internet marketing but many entrepreneurs get it wrong. They start by imitating their Internet marketing gurus by creating information products on Internet marketing in hopes of getting rich the way their heroes did. The problem is that they usually don’t know what they are doing and enter a highly competitive niche with very little marketing experience or connections.

Here are a few tips for effective product creation that may help you get on the right track:
Start by finding a profitable niche with low to moderate competition. If you conduct some rudimentary market research and keyword research, you’ll find many opportunities in areas that will surprise you. Amazon and eBay are two great places to brainstorm for product ideas.

Developing Your Product does not have to be a difficult project. You can find experts in the right field for your niche and pay them to write the material while an artist designs the packaging and website or blog. You can outsource the entire product creation part of the project after you conduct the research and testing to ensure profitability.

Sales and marketing strategies should be created while developing the product and learning about the market. Some experienced marketers use pay per click to drive traffic to their offer page; some folks outsource the entire marketing campaign to affiliates through ClickBank or other affiliate programs.

Product creation does not need to be hard, particularly when the merchandise is electronic. E-books, videos, audio and multi-media products sell very well. They are distributed immediately to customers electronically. Once you have a good feel for a niche market, try to service your customers with associated products and upgrades. If you want to earn money online through product creation, you must understand supply and demand. The majority of new online marketers fail miserably because they go after highly competitive markets or forget to research their chosen niche properly. You have to create your products according to the needs, wants and desires of the prospective customers.

The beginning of each calendar year is a very busy time for many businesses, and Property Managers are not left out of that category! Whether you are a large Property Management Company or an individual Property Manager, this is the time when all tax forms should be issued for funds paid out to Rental Property Owners or Vendors during the previous calendar year. The form that is used to complete this task is the 1099-MISC, and this form must be submitted to the recipient and the IRS by a specified date each year. When 1099s are submitted to the IRS, they must be accompanied by a summary form, Form 1096, to meet the tax filing requirements.

- Why is the 1099-MISC necessary?
The IRS uses 1099s to monitor any income source that is not filed on a traditional W-2 form, which only shows income received as a salary or wage. This is a way in which the IRS captures any income received by an independent contractor or rental property owner that may otherwise go unreported. A Property Manager or Property Management Company is acting as a reliable source for the IRS to help enforce that all income is being reported.

- Who should receive a 1099-MISC?
• Rental Property Owners – all rental property owners that have received $600 or more in rent disbursements in a given calendar year should be issued a 1099-MISC.

• Vendors – all independent contractors or vendors who are unincorporated and have received $600 or more in a given calendar year for services provided should be issued a 1099-MISC.

- When does a 1099-MISC NOT need to be filed?
Every situation has exceptions, and tax filing and reporting is no different. Here are some of those exceptions:
• If the total payments to a rental property owner or vendor are less than $600, a 1099-MISC does not need to be filed.
• If a rental property owner is a corporation, a 1099-MISC does not need to be filed.
• If a vendor is an incorporated business, a 1099-MISC does not need to be filed.

- What information is required on a 1099-MISC?
• Tax ID # – this can be an individual’s SSN or an EIN for an unincorporated organization.
• Address – this is needed for the 1099-MISC to be sent to the recipient.
• Funds Paid – this includes a total of all income paid to a vendor or individual rental property owner during the previous calendar year. (Remember, only if the total is greater than $600)

- What boxes are used on a 1099-MISC to report income?
• Rental Property Owners – all income collected that was for rent should be reported in box 1 “Rents” on the 1099-MISC. Any additional income paid (late fees, utility bill reimbursements, NTQ fees, etc.) should be reported in box 3 “Other Income” on the 1099-MISC.
• Vendors – all payments made for vendor services should be reported in box 7 “Non-employee Compensation” on the 1099-MISC.

It is also good practice to send all rental property owners a copy of their financials for the previous calendar year so they can see where the amounts in each box on the 1099-MISC were derived from.

Not filing 1099s when required can lead to penalties and fines by the IRS, so it is very important to keep accurate records of amounts paid to each vendor and rental property owner and request any necessary forms that you may need to file the tax forms to be compliant in this process.

Twitter is thought as the best way of reaching prospective customers for your home based business. Many consider it as the most cost effective tool of reaching your customers and updating them about your products, services, news and many more. In a way, it is the most happening social networking site that lets your home based business to reach your customers in an unconventional way.Now, you must be thinking – What on Earth is TWITTER?It is the most happening social networking website over the internet. Many regard this site as a micro-blogging service. A person or home based business entrepreneur can write short text messages and post in Twitter. These messages are of 140 characters and you can update your friends and networks through this unique and free media. You can also receive their messages, updates, concerns and many more. Thus, you can connect with your customers through this unique micro-blogging tool.Why is it so IMPORTANT for Home based Business Owners?If you are a home business entrepreneur then Twitter can be the best way to market you products and services. This is the most cost effective and at the same time effective marketing tool. It can be accessed by anyone at free of cost. After creating an account you can start making friends of your niche. Then start networking with them. It is the most unconventional way to reach your consumers and offer them service. Not only this, you can make your offered service and product better by getting real time feedbnack from your networks. Through Twitter, you can also reach and connect with experts of marketing, analyze the works of your competitors and expand business by networking with other companies.Is it possible to enhance online presence of your home based business?The easiest and most effective form of marketing tool over the internet is Social Media. Some of the most happening social media sites (both Book-Marking as well as Networking) are Twitter, Facebook, Digg, Delicious and many more. Now, as a marketer it is desirable for you to connect all your accounts in the social media sites with each other so that exchange of thoughts take place in a more concerted and effective manner.A short guide for home businesses to expand businesses through TwitterFirst of all, what type of home business do you have? Do you have a restaurant or ticket agency or PR expert or online business? If that is so then let me help you in expanding your business through Twitter. Here are some of the things that you can do:
1. If you have your own restaurant in your home then you can update your friends by tweeting about the daily specials of your restaurant.
2. If you have a ticket agency then it will be meaningful for you to tweet about those tickets that are on their way to expiry.
3. If you are a PR expert then tweeting about your publicity opportunities can help you earn more money.
4. If you have an online home based business then it will be prudent for you to update your networks on the latest product and service offered by you.Thus, choose your business from the wide array of home based business ideas available in the market. Make good use of it and market yourself effectively through Twitter.