The Money Behind Reality Shows

I have always loved Reality shows. I admit that I'm a voyeuristic junkie when it comes to watching people open their lives, happiness, cat-fighting, back stabbing, plotting, pushing people over balconies, fighting for cash, and grief to us from TV land. I have always wondered what the attraction was to participating on a reality show and expose yourself to a gazillion viewers like that. I admit, if I could stand to go hungry without slipping into a coma I would be the first to sign up for Survivor and I would be chowing down on water buffalo gonads with the best of them! The newest season takes place in Brazil this time! I would probably end up ditching them for the beaches of Rio though! You know that the winners make a butt-load of money but, what about the other contestants--do they make anything? What about the Network hosting the show, what's in it for them?

For the producers and networks the answer is obvious, they make way more money producing reality shows than the do with sitcoms or dramas and they are cheaper to produce as well!
These shows provide a strong rating and bring in gob's of money from advertisers. Coupled with the fact that those participating on the show don't require the same amount of pay as regular actors and actresses and producing the shows are relatively cheap, it makes for a profitable formula.

Don't you wonder how much that those are in the shows make?
In an MSNBC article The Cost Of Going On A Realty Show states that, "Some shows, particularly those without game elements, offer stipends to compensate their cast members. "Real World" roommates are paid small stipends for their "story rights"; the exact total isn't disclosed, but executive producer Jonathan Murray told USA TODAY, "I used to say it was enough to buy a used car. Now it's probably not quite as big a used car."One thing's clear, though: You should want to be on a reality series for the experience, because participation in a series definitely does not come with a guarantee of fame and fortune. "

According to In Touch the stars of MTV's The Hills make between $35,000 to $75,000 per episode. Spencer and Heidie each pull in $65,000 an episode for the drama that they provide.

If you have ever thought of trying out for a reality show they have casting calls for so many reality programs. Here's a link for a listing:
http://www.realitywanted.com/calls/search/sort/dateupdated/order/desc/page/100
I perused through the pages and picked my favorites.

• T.V. Made Me Do It: Are you a TV-inspired wild animal or reptile trainer? Now Casting. Were you inspired by a show on Discovery Channel, Animal Planet or National Geographic to work with venomous snakes, wild bears,… (no liability there!)


• Wife Swap Casting Beautiful Families:Do you have a family full of models? Is looking good the top priority in your family? Are designer clothes a must? If you answered yes - then I want you! The premise of Wife Swap is that one…Start: 09/23/2008 End: 01/29/2009


• I Survived a Japanese Game show: Think you have what it takes to compete and win in TOKYO on ABC's hit show "I Survived a Japanese Game show"?? Do you have the drive and craze to become the next Majide Champion and win $250,000??…Start: 12/01/2008 End: 01/25/2009


• Producers of SUPERNANNY looking for rebellious Teens for New Show!:Must be 18 or older. The producers of SUPERNANNY and U.S. cable hits It’s Me Or The Dog (Animal Planet) are now searching for rebellious teenagers for a brand new series from the United Kingdom. …Start: 12/15/2008 End: 02/27/2009 (I have several volunteer teen boys that would like to up against the SUPPERNANNY!)
  

Ponzi Schemes and Other Scams

Ponzi Schemes

A Ponzi scheme is essentially a scheme were you are offered much better returns than you could gain through traditional investments. There are so many different forms of investment vehicles these days that it's difficult to keep up with the vernacular of puts and calls and derivatives. With a Ponzi scheme, Instead of investing the victims money the operator uses the money to pay the previous investor or victim. Usually the scheme falls apart when new investors can't be found to pay the investors on the bottom or when the operator runs off with everyones money.

How do you keep from being a victim of a Ponzi scheme?

• Be careful about who you invest your money with. make sure that the investment firm has a long established track record that you can trust.


• Don't invest in any type of investment that you full don't understand! Don't rely on others to explain what the investment is about.

Jury Duty Scam

One scam that is going around is a Jury Duty where a clerk of the court calls you and tells you that you have been selected for jury duty and they then ask you for name, social security number and then a credit card number. If you refuse they threaten you with fines!

Multilevel Marketing and Pyramid Scams

The scam artist will try to gain your trust. He might be a friendly widower. Then all of a sudden he will start pressuring you into some business deal where you would invest $1,500 dollars and you could make loads of money in return. He might even have some glossy pamphlets that look professional. This happened with my mom one day. The conversation went like this:

Con man: "If you invest $1,500 you could make thousands in return! just get other investors enrolled in the program and they will pay you back and thousands besides."

My mom: "Isn't this just a pyramid scheme?"

"Oh no--that would be illegal. Just invest $1,000."
"I'm not giving you a $1,000!"
"Just five hundred then...you can write me a check."

So then, to get rid of the guy, my mom says,"My daughter Penny handles all of my business and finances." So she gives him my name, phone number and address! So, I have that to look foreword to--a call or visit from Ralph--you would think that being a con-man and all he would change his name to Alfonse or Jonathon or something wholly more attractive and affluent sounding. I am looking foreword to it...almost salivating at the thought...oh yeah...it's on Ralph!, it's on like Donkey Kong!

Multi level marketing is in many business opportunities a legitimate form of selling products. The difference between a legitimate multi level marketing business and that of a pyramid scam is easy to spot.

1. The legitimate multi level marketing company places an emphasis on selling a product


2. pyramid scams places an emphasis on recruiting people or asking for investments


3. In some cases like gifting clubs they will ask for donations where you in turn will recruit people below you to ask for donations or investments. The gifting clubs will sometimes use religious "feel good" terms or names like Renewal Celebrations or Jacobs ladder and might come as a special invitation from a church member.
   

A pyramid scheme is set up so that there is a hierarchy where people are recruited below those who have been previously recruited. Those who have been recruited make payments to the people above them in the hope of making their money back by recruiting others and gaining payment from them. In pyramids, most of the sales are made to the recruits and not the general public. The nutritional supplements or what ever they have going only serves as way to make the scheme look legitimate.

How do you avoid being scammed?

1. Never feel pressured into joining a multi level marketing group.
   


2. Never feel pressured into signing or investing in something that you aren't sure of.
   


3. Take the time to investigate any business opportunity.
   Check the business out on the Better Business Bureau website at http://welcome.bbb.org/


4. Never make investments at the swap meet!
   


5. Always keep in mind, that it's a felony in the United States to participate in a pyramid scheme and is punishable by fines and time in jail. People participating in the scam are viewed as engaging in illegal activities rather than being a victim.
   

Resources: FBI and The Better Business Bureau

Text Messaging Hot or Not?

One of our favorite skateboard shops is Five-O Skate Shop on 17th street out in Idaho Falls, Idaho. Last year the owner started a campaign where my son entered a number that they handed out on business cards into his cell phone. When ever they have a skateboard competition or a good sale or promotion going on they send out mass text messages to the cell phones and we are instantly included. We frequent Five-O because we feel so connected to them. That's not only "hot" but, smart!

Right now Five-O is having a sale for the Holiday Season where all of last years snowboarding clothing is 40% off! Sweet deal! I just picked up a new Volcom Jacket that I love! They also carry a good selection of snowboards and equipment.

There is a huge paradigm shift in advertising that is going high tech and mobile. Vendors can create promotions and ads or coupons that go directly to the those customers that they know with certainty will have a need or strong desire for their product or service. 58 million people in the U.S. viewed an ad on their mobile phones in Feb, 2008 alone! This text messaging not only targets directly those that have a high chance of interest but, it also makes the customer feel valued-like a friend.

The response rate for text advertisement is at about 6% to 8% verses 2% using traditional means. This form of advertising effectively reaches the %1 base that you're after rather than chasing the 99% that won't actually care about it.
The way it works is that a customer sends a text message or enters a number in their cell and that cell phone number is added to a database. A restaurant or bar can make an immediate decision about that nights special or say they want to promote a band that will be playing that night and the advertisement is sent to every one on the database list. A cell phone user can opt out of the system if they wish by sending in a text request .

Web based coupons is another "hot" trend where a customer using a smart phone or computer can look up coupons for whatever product or service and the customer can then download it to his or her cell and present that coupon to the vendor.
Another "hot trend" in text advertising is the QR code. The QR code or Quick Response code created by the Japanese corporation Denso-Wave is a matrix code like the bar code that you're familiar with but, it holds a hundred times more data on 1/10 of the space. A cell phone user can take a picture of the QR code with a picture phone on an advertisement, business card or whatever and the equipped cell phone will interpret the data embedded in that code hyperlinking it for promotions or information. This is pretty "hot" in Japan right now but, hasn't made it's way to the U.S. yet. I'm sure it will eventually.

Kip singing to Lafawduh:
"Why do you love me? Why do you need me? Always and forever...we met in a chat room, now our love can fully bloom....sure the world wide web is great but, you make me salivate...I love technology but, not as much as you you see... I still love technology....Always and forever...."
from the movie Napolean Dynomite.

Which Countries Will Choke and Which will Come out Smelling Like A Rose

As the world grapples for financial stability, the questions that I keep coming back to is how bad will it get and who will come out clean? It looks like trouble and the stench of doom will follow well into the next year with GDP struggling at under 1%. From first light I would think that China and some of the emerging countries would be doing better. They normally fair better when the U.S. starts to Falter--This is true in some cases and not so true in others. China is still good but, seeing a slowdown in it's own economy. The emerging countries which depend on borrowing are also being hit pretty hard by the financial crises.

Europe is going to see a recession that will be deeper and longer than that in the United States. Similar to what happened in the States, European Banks porked themselves by over lending to the overheated housing markets and by taking excessive risks with derivatives.

China will come out stronger than most with two trillion dollars in bank reserves that it can utilise to make it through the crises. South Korea, Mexico, Russia and India are in a stronger position to weather the storm as well and have little need for external borrowing. These are the countries that will grow at a faster clip than developed countries. Russia which has no dependence on foreign oil will become a stronger player on the world market place.

The world will see an overall decline but the emerging countries will still fair better than the developed countries. The Gross Domestic Product (GDP) of these emerging countries will decline from 8% in 2008 and is estimated to come in at 6% for 2009. Even with this decline the emerging countries will continue to outpace developed countries which will decline in GDP growth from under 2% to less than 1%. This data comes from the World Monetary Fund.

How Long will It Take Your Investments to Recover?

Right now when I look at my investment portfolio I totally start to hyperventilate and have to reach for a paper sack! I try to calm myself by reading analyst reports and knowing that eventually the markets will recover and come back to where they once were.

How long does it take to see some return to normalcy? In an average bear market you should see about a 25 to 30% rise in the Dow Jones with in the first year after the bottom hits. In normal market conditions it can take up to four years to reach the high that was once enjoyed.


This Bear market has been different than those in the past. The rapid dissemination of information has caused information and rumors to get to investors at a much more rapid pace than in the past causing more volatile swings in the markets.


At least this week I haven't had to reach for a paper sack!

"Magic 8Ball Will The Stock Market Rebound Soon...."

I admit that I occasionally shake the Magic 8 ball like a teenager but, when it comes to investing I like to rely on charts and tried and true methods of determining the outcome and direction that the market will take.

In my opinion, we are in the late stages of a bear market. I'm starting to see a sharp increase in Utilities, Oil, and energy these three being the biggest movers. Also an increase in Real Estate Investment Trusts (REITS). Not surprising is a downward trend in Retail, Auto, and Leisure Products. These are all indications of a late bear stage in the cycle and the bottom of a trough.

Another good indicator of a stock market trend is to look at a moving average of the Dow Jones and check the price and volume. Over the past year the Dow declined steadily with it's sharpest drop occurring in the last week of September and the first week of October. The Volume during these two weeks nearly doubled as investors scrambled to pull out of the markets and stuff what was left of their holdings into safe keeping. The heaviest volume was trading at 2,344,911,100 compared to 778,840,100 in the first week of September. Over the past week the market has been trending up in light volume of 472,561,500 as investors are looking at bargain sale prices and are coming back into play.

"Magic 8 ball does my true love, love me back....Oh sorry," Does this all mean we are ready for a bull run? Maybe, keep an eye on the Dow Jones average. look for a sharp increase in Volume and Price change. I think it could still be choppy for a while yet but, I'm looking for the bull to be let out of the pen in the not too distant future.

Keeping your home from foreclosure

WASHINGTON (MarketWatch) -- The Treasury and the Federal Deposit Insurance Corp. are working with the Federal Reserve and Fannie Mae to prevent millions of home foreclosures, Treasury Secretary Henry Paulson said Tuesday in an exclusive interview on "Charlie Rose" on PBS airing Tuesday night, according to a transcript of the interview. Paulson said the Treasury is readying plans to buy troubled mortgage assets from banks and other investors. "There is clearly more that can be done, needs to be done," he said. "We are looking in the millions. And we need to do everything we can to minimize that," Paulson said. The actions by the FDIC to guarantee bank debts are already working, he said. "The credit freeze is beginning to melt."

If you have fallen behind on your mortgage payments or if you have started to receive delinquency notices in the mail don't panic! There are people who want to help you and you do have options available to keep your home from going into foreclosure. Also, be aware that there are people who want to help themselves and they will try to take advantage of your situation. It's their intention to try to take your money or your home. The best way for you to get your finances under control is to create a budget.

1. Take a good look at your expenses and see what areas you can cut back on and if there are expenses you can cut out all together--even if it's just for a few months to get you through.


2. Make your house payment the most important payment. Pay that every month before every thing else.If you feel that you are getting into trouble and delinquency notices are coming in the mail, contact your lender immediately and see if you can work something out.

Don't feel like you have to take care of the problem by yourself or that the situation is hopeless. Your lender does not want to foreclose on your home, it will cost them too much money to do that. They would rather find an option that works out for both of you. Here are some options that you have:

• The insurer can pay the amount that you are behind on in exchange for a promissory note from you and you pay him back over time.
  Ask to have the loan changed to reduce the interest rate or extend the term of the loan and add the missed payments to the existing balance.


• Pay the entire amount that is over due.
  Convert an adjustable rate mortgage to a fixed rate mortgage.


• Forbearance agreements --payments are temporarily delayed.
  The FHA Secure Plan--If you are delinquent because of an interest rate reset you can refinance into an FHA-insured mortgage through The Federal Housing Administration (FHA) To check out information on the FHA refinancing guidelines:
  http://fha.com/
  

Also be aware that there are foreclosure scams that are manifesting themselves like greedy specters. The most common ones are people offering to help you negotiate with your lender for a huge amount of money or they offer to make your payments and you can stay in your house until you can buy the home back from them. What you don't realise is that they are taking possession of your home with the equity that you have in it and sure you get to stay in your home but, your paying rent now! The scam artist owns your home and the equity. Don't feel pressured into signing any agreements without a lawyer looking it over. There are legitimate housing councilors that will help you.You can contact a councilor at the Department of Housing and Urban Development :http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfmAs always, check out a company for complaints before you do business with them at The Better Business Business Bureau at:http://www.bbb.org/