Incentive Stock Options Basics – Alternative Minimum Tax and Incentive Stock Options
Posted on September 3, 2010
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Incentive Stock Options Basics
Employees often complain that while exercising incentive stock options they have had to pay alternative minimum tax even when the share prices had fallen. Incentive stock options are a type of an equity compensation that offers alternative minimum tax benefit. It has become more popular in recent times to compete with the nonqualified stock options.
There are two disadvantages that nonqualified stock options have when compared to its counterpart incentive stock option. Firstly, one has to declare ones taxable income when one decides to buy stock and secondly such as income is labeled as compensation. This income is taxed with a higher rate when compared to a long-standing capital gain. Whereas in the case of incentive stock option one does not have to declare ones income and incase one decides to hold the stock for a long period of time the gains made from the stock is treated as a long-standing capital gain.
The advantage here is that the taxes are balanced by alternative minimum tax. This complicated evaluation will force one to pay alternative minimum taxes while implementing incentive stock options. However the total alternative minimum taxes that ones pays under the incentive stock option will be less than the ones that a nonqualified option demands- one can recover the entire alternative minimum taxes by declaring the credit on alternative minimum taxes in the near future. Incentive Stock Options Basics
The alternative minimum taxes was passed to prevent the higher income group taxpayers from evading tax as they were capable of taking a variety of deductions on tax. Incentive stock option offers tax benefit to those employees who are willing to risk by holding onto the shares. Sometimes these risks do not benefit the employees. It is a tragedy for those employees who had took the risk without knowing the real consequences.
Very few employees know about alternative minimum tax and are taken aback when they realize that they will have to pay.
Employees who plan to hold on to the incentive stock options must take every precaution to see whether they have entered the alternative minimum taxes territory. One can eliminate the alternative minimum taxes by disqualifying a part of incentive stock options that year. It would be best to exercise incentive stock options earlier during the year as one can plan better if you wish to hold on to the stocks. This will also allow one to contemplate better. Incentive Stock Options Basics
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Domain Parking – Start Domain Parking
Posted on September 3, 2010
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If you have been looking for a way to make money with your web site, or start up new web sites and make money while keeping them parked online, you can learn more about domain parking and how it can work for you. Domain parking is easy, and you can make money by letting your domain name advertise for other companies online. If you are wondering how it works, it is easy to learn how and you can try out different domains to see which works the best for your web site.
When you are parking a domain, you are basically letting that domain name advertise for other web site and companies online. You can make money when people go online to your parked domain name and click on the ads and links that are found on the page. Every time that someone follows one of the links to another web site that is your parked domain name, you are able to get paid for it. Most of the domain parking web sites allows you to choose which kinds of ads or businesses that you want to advertise, and you can find a variety of companies who offer domain parking tools for you to use.
You can learn how to start parking domains when you search online for companies who offer the domains and web sites for you to use. Some web site owners find that they can buy domain names and then use those web sites to advertise for other companies and web sites. There are many different ads that you can run on the web site when you are parking a domain that include web hosting companies, companies that buy and sell domain names, and many other web sites. There are different ads that you can choose to place on your domain name web site, or you can have a company that will post the ads on your parked domain for you.
If you are looking for an easy way to earn money by having a web site, you can consider parking domains to allow others to see the ads and links that you are going to have on the web site. When people click on the ads or follow the links to the web sites that you are advertising on the web site, you will be able to earn money for each of those clicks. It can be a great way to start out with a web site business and to earn money by learning more about domain names and parking domain web sites.
I have been parking domain names for years now, there is good revenue to be made from parking domain names, I recommend using www.parksdot.com
Click and Deliver! Your Money or Your Name!
Posted on September 1, 2010
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There is a tendency to label anyone who is in the business of making money out of domain names a cybersquatter, and in the process to regard them as guilty of fast practice verging on the fraudulent. But is it appropriate to regard the growing body of entrepreneurs, known as “domainers”, whose livelihood turns on building up large portfolios of domain names, as cybersquatters?. Although some domainers may well be cybersquatters, many of them are not cybersquatters in the sense in which the term is generally understood in the law.
Cybersquatters
Cybersquatters register domain names, usually a well-established trade mark, in bad faith to gain some commercial advantage. This usually involves trying to sell it back for an inflated price to a party known to be interested in having the domain name, again usually the trade mark owner. Alternatively, the domain is used to direct traffic to the cybersquatter’s own website and away from a competitor’s. Worse still, some cybersquatters use the domain to damage the true owner’s reputation. Generally though, the difficulties that have arisen between trade mark owners and registrants of certain domain names have been some of the main reasons giving cybersquatters a bad name.
The first-come, first-served system of domain registration, which generally prevails, creates a pressure to be the first to register a domain name. This tends to lead to disputes on the “right” to register. However, simply because you have a registered trade mark or have been using a trade name for a lengthy period does not mean that another person with a legitimate reason for registering the domain and using it in good faith must give it up. One example of this is the Prince Sports case in which Prince Sports were unsuccessful in having the domain www.prince.com transferred to them from Prince Computers in the UK.
Administrative procedures to resolve disputes
There are administrative procedures in place so that domain disputes can be resolved without recourse to the courts. This is vital in view of all the problems with jurisdiction that inevitably arise in a global system like the internet. Domains and disputes are managed by the Internet Corporation for Assigned Names and Numbers (ICANN). ICANN manages generic Top Level Domains (gTLD) such as .biz, .com, .info, .name, .net, and .org, and delegates the registration of domains to registrars. There are over 1,500 accredited registrars, each with their own policies and procedures for registering, maintaining and handling disputes regarding domains.
When registering gTLD domains, the Uniform Dispute for Domain Names Resolution Policy (UDRP) is automatically incorporated into the registration agreement. Complaints can be filed with one of four bodies, the largest of which is WIPO in Geneva. Typically filing a complaint temporarily freezes the domain and prevents it from being transferred to any third party until a decision has been reached. The process is relatively quick and reasonably cheap, with decisions given between 30 – 60 days of filing the complaint.
Countries not using ICANN’s UDRP may use a different form of dispute resolution. For example, Nominet is the Dispute Resolution System (DRS) used for .uk domains, which like the UDRP is conducted online with no requirement for legal representation. Nominet’s DRS is administered by the Centre for Dispute Resolution (CEDR). It will order the transfer of rights of .uk domains, provided you can show that (on the balance of probabilities) you have rights (either “passing off” rights or registered trade mark rights) in the name which are identical or similar to the domain name. Nominet will consider a registration abusive if it creates an unfair advantage or is unfairly detrimental to the complainant’s rights.
Desirable residences
The domains which have reportedly changed hands for high sums of money tend to be generic names in which it is difficult for anyone to claim trade mark rights. For example, “Business.com” was sold for $7.5m, while “Wines.com” went for $3m and “Mortgage.com” for $1.8m. Misspelled domain name “Voyuer.com” was auctioned for $112,100 at Snapnames (apparently this is the highest sale price ever for a misspelled domain name). Clearly even if these figures are inflated hype, domain names can be valuable commodities, and are of huge importance to e-commerce, and on-line branding.
The prices some generic terms have fetched serve to highlight their attractiveness. Even the owners of famous brands and trade marked names have made good use of generic terms as website addresses.
Generic names and domaining
So, generic names are gold for domainers, but names that target a specific audience are also valuable (for example, people looking for information on “eating disorders”). The way in which domainers make money from domain names is not limited to reselling.
Indeed, the business model in the US tends more towards holding domains in a portfolio for web advertising revenue rather than for resale. The function of the domain is then to attract traffic and generate click revenue. The model specifically depends on the 15-20% of surfers who reportedly type a name into a web browser rather than into a search engine. This brings “direct navigation” traffic (as opposed to indirect traffic through a search engine like Google) to the page at which the domain is “parked”(that is the place the domain address arrives at), or to its website if there is one developed, as there sometimes will be.
Where the money comes from.
Imagine you are seeking internet information on job openings, and type into your web browser “careerinfo.com”, hoping to find a useful site. You would reach a website populated with job-related keywords. The domain owner, (sometimes referred to as a “click farmer”) would collect revenue each time you clicked on one of the featured ads.
The domainer’s revenue would be by way of a commission from Google or other search engines. Although the amounts per click may be quite low, for a high volume site the numbers soon mount up to large figures.
The reason the revenue comes from Google or Overture or other search engine is that advertisers enter into arrangements with Google or other search engines to pay whenever someone clicks on their ads. In order to get their links listed high in search results they bid on keywords. So, if the amount being paid per click for a keyword like “career info” were $3.06, then Google or other search engine would keep the entire amount if the click on the advertiser’s ad came directly from the results displayed on its own pages. However, as ads are sometimes also sub-contracted out, so that they display on a network of third party sites (that is, domainers’ sites), if the click on the advertiser’s ad comes from a third party’s page or website then Google or whichever other search engine has the primary contract with the advertiser, would share the $3.06 with the click farmer.
Internet marketing firm Marchex Inc reportedly paid $164.2 million recently for a company, Name Development Ltd, which owns a large portfolio of domain names. Marchex estimated that the Name Development portfolio had more than 17 million unique visitors in November.
There are many facets to domain names, and knowledge about how the industry works is useful for businesses seeking to do business online, and choosing domain names. In future articles we will look at pitfalls in speculating on domains, valuation of domains, the UK domainer business, domain disputes, and the pros and cons of using administrative procedures as against court proceedings to retrieve domain names.
Shireen Smith is an intellectual property solicitor and technology lawyer providing advice on trade marks and domains and domain disputes. Based in London, she can help to protect brands, copyright and other creative and intellectual rights.
Flipping Domains Can Make For Increased Income
Posted on September 1, 2010
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Many people are not familiar with the concept of domain flipping, which is essentially buying the URL address for a website, and then selling the URL for more than its worth, resulting in an overall gain. If you like to challenge that comes with making money, then flipping domains may be the business pursuit that you would enjoy the most. While it takes a little longer, it can result in a larger byproduct and income.
The Process of Flipping
There are two ways of going about the making of your website. The first involves you buying the domain and URL address, and then making a website to fit the URL and the content that you have in mind with the purchase on the content. Look online and see what is the most popular in news over and over again, so that you have an idea of what general content will be put onto the site. After having made that decision, you create the actual website with all of the bells and whistles that you want on it. You then keep adding and updating the website until it has reached the optimum amount of web traffic that you required for your site. You can increase traffic with all kinds of outlets, such as Ad-sense, blogs, affiliate links, etc.
Then second is a little more efficient, but requires more work before the actual domain flipping begins. If you dont want to have to make an entire essay from nothing, this may be the route that you would much rather like to take. You would first search on other websites that you have noticed are getting more and more traffic and popularity at an alarming rate. If you search on a web browser, the most popular sites will come up first.
Where the Money is to Be Made
Of course, there best way to get money rolling in is by making a small website; this will bring you a lot of the popularity within a short amount of time. Also, many popular websites are made by those who are controlling multiple websites at once, so purchasing one of these may be a lucrative idea. Once you buy it, you are free to change the site as you please to ensure that it will run at the optimum web traffic capacity.
Once you have made a nice amount of money from your site–perhaps a few dollars a day–you can consider selling it to someone. If you go to blogging and forum sites, you can advertise your site and state that you would like to sell it. After being sold, you can make between a few hundred to a few thousand dollars from every sale. When you have made your first sale, it is only a matter of doing it again so you can start getting a nice of cash and income. If you are excellent at creating websites, and know when a site has reached its peak in traffic, you are an ideal candidate for domain flipping.
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