Marketing in search engines and financing Assignment

Marketing in search engines and financing - Assignment Example Similar to way spam has lowered the efficacy email marketing, the â€Å"click fraud† raised the cost of search engine marketing and lead to a reduction of its attraction to merchants. Some of the aspects surrounding paid placement are that anyone can click on the engine ads raising the costs of merchants, without making any purchase. Consumer objects this service since one can increase his or her revenue by requesting friends or relatives to click the ads Microsoft or Google place on his or site without even making any purchase (Kennedy and Kristjan 71). Purchasing a car, home, or shopping using credit card are examples of debt financing. You are receiving a loan from someone or even a business under the condition of paying the loan back with some interest (Jagpal and Shireen 525). Using debt financing to start up a small business takes a similar way. An entrepreneur can apply for a loan to start a business from banks or friend, lenders or from family members, which he must pay back with same interests. Debt financing is advantageous since the lender has no powers to control your business. After the completion of loan payment, the relationship between the debtor and the creditor ends. If one business is a local startup business, which does not require large-scale funding, then debt financing is the best option (Jagpal and Shireen 526). Equity financing unlike debt financing involves investors. An investor can decide to offer his company shares to friends, family members, or small investors. However, this form of financing involves angel investors or venture capitalists. Equity financing is advantageous since the investor incurs all the risks. If your business fails to raise the money, the investor cannot force you to pay the money (Jagpal and Shireen 526). This form of financing is appropriate for small business when they are at their very startup stages. Such investors who fund these small businesses are Angle investors who invest