Business structure? Passive Income? Craig's list?

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Permalink Reply by Terry D. Boesch M.S., C.Ht. on June 27, 2008 at 8:43pm

I know it's not a good idea, but I give my cds away with my sessions. I have never sold one. And you can download many off my site. I use as much free advertising as I can get my hands on, and craigs list is one of them. I make sure that there is a direct link to my credentials because if you don't they will call and grill you becuase of their concern for scams that are reported all the time on the news.

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Permalink Reply by James Hazlerig on July 3, 2008 at 10:59pm

I'm just starting my business, so I haven't had a reply to my Craigslist ad. I know one of the local hypnotists has an ad there every several days. I also use a local classifieds website.

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Permalink Reply by Terry D. Boesch M.S., C.Ht. on July 4, 2008 at 8:09am

If it is free take a shot, what do you have to lose? In my area I can post on the towns south and east of me. I have to space them out because craig's list does not allow multiple postings. If nothing else it gets people to my web site as I always add a direct link. The more you get out there the greater your odds of getting clients.

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Permalink Reply by Terry D. Boesch M.S., C.Ht. on July 4, 2008 at 10:25am

I have put some of my cds on ebay when they have specials on posting, but they are so saturated it's hard to get them to stand out enough to get a bite. CL may be a better way to go, and if done locally, may draw a client or two.

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Permalink Reply by David Newman on August 26, 2008 at 12:02am

Hi what a great question. Missouri Hypnotherapy and Research Clinic is a Missouri corporation. I specifically chose a "C" corp rather than an "S" corp because I do not want my net profit attached to my personal income. Secondly, I plan on growing my clinic and at some point even franchise it, so a sub "S" simply was the wrong corporate formation. LLC is okay but again it has MANY drawbacks. The greatest drawback for me is the fact that all profits must be disbursed at year end and that goes directly on to my personal 1040. Also an LLC cannot hold back money for future growth and it is difficult at best to secure investors in an LLC since there is no requirement for meetings, minutes, or a board of advisers or directors. If you attempt to borrow money from a lending institution in the name of an LLC they will require that you pledge personal assets. This in my opinion defeats the purpose of forming anything besides a proprietorship.

The total percentage of my business that is passive income is less than 10%. I have found that unless you have achieved "star" status and have your CD, DVD, or MP3 mass produced and distributed by a major company it is difficult to be found in the huge heard of "self help" items. For example go to eBay and type in hypnosis and see how many listings you find.

Best of luck and I hope I have answered your question. If you would like more detailed information give me a call at 888-604-9997. Before I became a full time hypnotherapist I specialized business.

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Permalink Reply by James Hayashi on September 23, 2008 at 5:37pm

I am currently a independent owner, I have started the paperwork to incorporate.
As of right now I charge $15 more in my first session to cover the cost of the personal cd.
I have not used Craigs list as of yet, but will in the future..

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Permalink Reply by Taylor Sherman on October 17, 2008 at 1:32pm

You guys should know that even if you start an LLC (for limiting liability), you may still be held liable as you are acting as a stand-alone professional. Certain professionals will be held liable whether or not they use an entity. For example, doctors. A doctor can't limit their liability by forming an S-Corp and pointing at it. Also, be very careful that you are not "piercing the corporate veil" and that you do things like file timely documents with the state and do your banking with a separate bank account.

Either way, if you're concerned about liability I recommend insurance... it's fairly cheap for hypnotists.

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