Social media marketing as we all know is reaching out to target audience by creating engaging content. As I scroll through the feeds of terrarium.imaginarium I consistently notice new posts and stories. This page is the work of art of someone who is a green artist. If you visit their page, you will see how the same tone and colour is used everytime. Everything is so green. All of their photos have the same filter on them to ensure they match — this makes their profile look professional, artistic, and organized when visitors, like myself, browse their page.
Their posts are shared regularly and gathers a lot of likes and shares. This is a perfect example of a successful Instagram marketing. Just like this social media marketing is done through various other channels like Facebook, twitter, LinkedIn etc. I am not going to discuss in details here as to how to do social media marketing. What I want to stress here is that this action requires a successful strategy. There are a lot of testing and analysis of data that needs to be done.
As a small online business owner, you can do a lot of these tasks by yourself. But in my experience the most pain point becomes social media sharing which again if done at a specific point of the day gives best results. This is a repetitive task and hence can be automated. There are various tools e.g Hootsuite, buffer, buzzsumo etc, but all these costs a monthly subscription.
I am going to show you a way where you can get a fixed interest type income to pay this bill. This is by lending your stocks.
In the year 2019 – 20, Rs3.25 billion (325 crore) was earned by India investors by lending stocks that were lying idle with them. This is called the Stock Lending & Borrowing Mechanism. So, are you an investor who would like to finance your passion to profession business with your idle portfolio? Then SLBM is here.
Before I start let me tell you that SLBM is not just limited to India. It is also there in US. For other markets, you have to check in the country you belong to.
Through this mechanism you can lend your stocks to borrowers and earn a lending fee. Normal market yield is in the range of 5-6% per annum. Depending on the stock and market situation, these yields may vary in the range of 2% to 15% per annum. It can even shoot up 30-40% for short periods. The best part is that you would continue to remain the owner of the shares and even earn dividends, bonus and other corporate benefits if any are declared during the lending period. Note that these are annualized figures and the absolute return you get will be less because the lendings happen over short periods of 10-20 days.
There is absolutely no risk involved in this process. This is because SLBM (stock lending and borrowing mechanism) is an exchange traded product. Thus risk failing to pay back the securities by the borrower is not there.
These are traders and institutions who want to hedge their positions in the futures and options (F&O) segment. While doing pair trading also this method is used.
Every lending opportunity is in the form of contracts and the following needs to be understood before entering into any contract:
Your broking firm will charge a fee for providing this service just like brokerage is paid when you buy and sell stocks. Please check with your broker for more details.
This is a riskless way of earning money from stocks. In US even exchange traded funds qualify for this program. The money you earn from here, does not vary as per the stock price fluctuations. So, you can earn some passive income monthly to pay for your SEO tool subscription. It may or may not cover the entire cost, but whatever is covered is the money you save, which you can use somewhere else.
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