The Dirty Little Secret Behind Investment Newsletters
You know I love residual income.
And you know I think membership sites and newsletters are both outstanding ways to earn residual income.
You make the sale once and you get paid for as long as that person remains a member.
But there is something different about investment memberships and newsletters. You might say they are in a league of their own, because the bulk of their profits seldom come from subscription fees.
Have you ever wondered why a millionaire (or billionaire) investor would bother to publish an investment newsletter?
It’s not like they need your $99 a year.
And why would any investment expert charge $99 or even $499 for a newsletter or membership if it can really 10x or 20x your investments in a relatively short time?
We’re talking about you receiving million-dollar gains in a few short years. All for just 99 bucks? What’s the catch?
Here’s what I think: That publisher wants as many people as possible following his or her recommendations because when they do, that publisher makes money.
Let’s say I run an investment newsletter and you’re a subscriber.
I tell you to buy XYZ stock because I think they’re about to get a billion-dollar contract with Amazon.
And maybe XYZ will get the contract, and maybe that stock will go to the moon because of it.
But even if what I predict doesn’t come true, here’s what happened for me:
Because I bought the stock before I told you and thousands of other subscribers to invest in it, and because all those investors drove the stock price up, I made money.
If an investor has enough followers, they can and will influence stock prices simply through their recommendations.
It’s no wonder why that ‘million-dollar’ newsletter costs $99.
I’m not suggesting you don’t subscribe to these newsletters if you have faith in the person making the recommendations. You can still make money, as many people do. Just be aware that the newsletter author is likely making even more money with their recommendations because of you and all the other investors buying into the stock the author already holds.
And if you’re wondering what type of membership or newsletter to start, well… this bit of insight might just help you to decide.