Category Archives: Entrepreneurship

How to pick a MLM company, and what to stay away from.

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There is a huge range of different MLM companies out there in the world. Some are small, some are huge. Some sell a product some have services. They all have a good sales pitch, and they all promise success. But how do you go through all of these and find the ones that you can be successful at? How are companies different from each other? What should you look for in a good MLM Company? How do you do all of this while not being taken?

Well there is a very wide variety of MLM companies out there. At this time there are about 5000 MLMs with a sales force of over 5000 people. There are 100 or so really successful ones out there. For this blog I will keep it all concept, in the next blog I will name names and rate companies that I know of.

To me one of the FIRST things that I look for is the ROI, this means how many sales do I need to make to get my money back and start making profit. I also look at the cost of maintaining the membership, the value of the product, the support of the team.

One of my main tests of any MLM that I look at is the source of the money. Most good MLMs out make all of their money off of selling a product or service. They have to have a good product because this is where the money is made. But at the same time there are MLMs that focus on recruiting, and almost all of the money being made is from a huge ($300+) fee that new recruits must pay. Almost all of this money is paid to the upline. In many of these companies almost all of the money is being made from the recruiting fees. If you think about this, it is not sustainable. And I feel that this is unethical, you are promising people a dream, and taking their money, and the only way they can get to their dream is to take more money from their friends and family. And most of that money goes upline. In these companies history, and the math, shows us that about 1% of the people win big, 5% of the people win, 5% more break even and the rest LOSE MONEY.

When I tell someone that they can make it, and they can have success I want to mean it. I am NOT going to put my name on it if the chips are stacked against my friends. The first MLM I was in was, and still is, the largest MLM in the world. They had great motivational meetings, but almost everyone there was loosing money. On top of that they were spending a ton of time, and hurting many relationships by trying to force people to consume their products. You became good friends with the other people in the company, and you would have pressure to use the products, even though they were vastly overpriced, you also would be pressured to buy “tools”, overpriced educational materials. With all of this going on they had weekly meetings, monthly all day meetings and a few times a year they had 3-4 day conventions. All of these meetings had various costs, and you were told to come early and stay late. Even people who recruited 10-20 people into this company did not make money, if you counted the amount they were overpaying on their products. Almost everyone there was loosing money, but they were sold a dream, and they would hear from people who made the dream. Some would try for years never reaching success. Other would get 50 or so friends and family to join in, who were all loosing money so that they could make a decent income.

Other companies that I have seen have a product where you make very little on, some as little as $1 a month for each customer, but these same companies have fees over $500 to join, and these fees are almost totally paid to the upline. I was presented a company last week where, as far as I could figure, over 80% of the money made in the program was ONLY from these recruiting fees. You can always tell these companies because they have a large fee to join and once you are in they tell you to focus on getting other people to join so that you can pay back your fee. Of course this all is great for the person on top, but for me, I can’t ethically build a company like that where for me to have success I have to hurt other people. Yes they have a chance to make it, but that chance is slim, and for them to have success they also must hurt others financially. Personally I like to stay away from ANY company that pays for recruits. I want it to be easy for people to sign up.

There is a semi new evolution of this concept. This is where, instead of a large recruitment fee there is a smaller monthly fee. Some companies even go so far as to charge a monthly fee for you to have a website so that you can sign up other people. And they have yet another fee to be allowed to sell their products. They call it a technology fee. I am in the computer industry also and I know to make a dedicated server with a self replicating software on it costs about $50 a month to maintain, and such a server could host tens of thousands of associates. So if they are charging $40 a month PER USER that is a huge profit. $30 or so of this money was paid to the field and the rest was kept with the company. I talked to a lady there, who was making great money, she had recruited over 1100 people. I ask her if more than 100 people have broken even and her answer was “ I think it about 100” That means that over 1000 people paid $350 to sign up, and $40 a month for months on end and did not make any money. The even worse part was that they sold a product that was very bad. I was in a meeting with the leaders of this company, as they presented it to me and some other people looking at the company. At the end we asked them if they have ever even used the product they are selling, and to our surprise and horror not even ONE of these leaders had ever used the service that they sell. It was crazy. Their response to the objection that many of us had to the monthly fee was that “If you personally find 6 other people to pay the fee each month yours will be waived”. To me this was a horrible answer. I told all of my friends in this company to quit, and they did. (I tend to have that result, the last three people who were new in a company that was bad and presented the idea to me I showed them logically how it was bad, and the next day they were quitting and getting their money back.) A pyramid scheme is a company has NO product at all and all the money is made from the new people paying the people who have been in longer. This company has almost no product of value.

Believe it or not there are many even worse companies. One company charges 1000 to join, and you have to then pass up the first few people that you get, with the full 1000 going to your upline, then you start to find more people to sign up and you get the full 1000 from them and also from the first two people that they sign up. So what is the product, you will laugh at this. The product is a $20 a month website that allows you to sell the $1000 memberships. If you stop paying the $20 a month you then lose your chance to make money off of other people. The guy who thought up this whole plan has over 100,000 people now paying him $20 per month. All this running on servers that I bet cost him a few hundred per month at the most. What a smart, devious idea.

Now that you know what is bad, I don’t want to give the impression that all companies are bad, far from it, many companies have great products, and a great plan for paying people back. Later this week I will release the blog about that. That being said not every company is right for every person. Some companies focus more on selling products, and other focus on team building. Some sell services; some have just one product, while others sell 1000’s of products. Some are online while others are almost totally offline. Find a product, and a management style that fits you. Don’t just take any opportunity simply because it is presented to you. Find one you will love to represent.

Another key to finding a product is the size of the industry. If you are in an industry that almost everyone needs you will do better than in an industry that has very few people. You also need to look at the profits in that industry. Some industries have huge profit margins while others are very small. The phone industry is huge but the profits paid out to the mlm companies that sell phone service is VERY SMALL simply because competition has forced prices down. Most MLMs sell very low priced items, and these are items that people don’t need that many of. If your company sells something that only makes $10 a month there simply is not much money to work with, you will have to build a huge group to make life changing money.

About 60% of all MLM companies are Health and wellness related. One major reason for this is because health products can be marked up a lot. A $50 product may only cost $5 to make, this gives a lot of room for profit for the company and for the distributors. Another reason that the health products sell in MLM well is because most of them need to have a fairly large explanation for people to use them, and the normal retail channel just does not provide this. Most of these companies have a few core products, or maybe only one that they sell. In general these products do provide some help in our vastly malnourished society, and are fairly profitable to sell. For me personally I have no passion for this, and even if someone uses the product as they should the profit will still probably be under $30 per month for each person you sign up. I know many people who have made it big selling such a product, they have found many people who also found many people and they are making nice 6 figure incomes as a result.

Another major area are companies that sell many products, some they make themselves while others simply get a discount from products made by other companies. Everyone can find something that the company sales that you will like. The problem with most of these companies is that for them to be able to pay the kind of money that people want they have to mark up these products much more than you could find the same products for elsewhere.

One of my great product type is the financial services type. Most everyone needs investment help, a mortgage, insurance, or education. These are items that traditional methods charge huge amounts, these are also items that a large percent of many budgets goes to. One MLM that I was in originated mortgages. The fees charged to the customers was typical of the industry, and yet were still 3000 and more per sale. As you can see, even with a small team it was easy to make money doing this. On your first sale you made more money than all of your first year expenses. In my mind this was a great MLM, the only problem is now there is a credit crunch and it is very hard to get mortgages approved. Most people in this company have quit, and it would not surprise me if the company is gone before the end of 2008.

RULES. People want to join a MLM for the freedom they have to run their own business, but many MLMs have so many rules that they place on their distributors it almost feels like a commission job. Before you join a company look to see what rules you will have to live by. One MLM I know of states in their policy that they “OWN” anyone who signs of for their company and if you mention another business idea to them and they leave the first company you will be punished for theft. Other MLMs, say that you can’t sell their products anyway other than person to person or at their website. This limitation will make it much harder to be successful. Many companies won’t let you discount the products. Most won’t let you be in multiple MLMs at the same time and use your contacts from one to build the other. Most will not let you have your own marketing, your own website for the company and even your own business cards. Before you join a MLM decide what rules you are willing to live by and make sure that the one you are joining allows you to operate in the way you want to.

One last thing to look at is the stability of the company.  Is this a company that had been around for a long time or something that just started.  Most new companies may not survive and they usually don’t have all of the bugs worked out, but you can get in on the ground floor and be at the top.  A company that pays out a ton of money may look good, but if the company can’t make profits you may find one day that they are gone and so is all your hard work.  I also find it VERY hard to deal with a company that is always changing the compensation plan.  I understand as they get bigger you need changes, but I have seen companies that made 8 changes in a year.

Also you need to have a company with an easy to understand compensation plan.  I have been to meetings where the compensation plan is so complex that none of the leaders fully understand it, they simply keep asking you to “Trust the Company” and that the money will all come out right.  If you can’t explain the whole compensation plan in 30 seconds it is just too complex.  This will make it harder to build, and harder to see the direct results of your actions.

So the bottom line, find a company where you can make money, has a product/service you like and a team and system you would like to work with. Do this, then build it big and you will have great success.

I hope this helps. This is the third blog in this series. Please click here for the first one.

I could write 10 more pages on this but I feel that I have hit the most important points already.

What you need to get set up for a successful MLM business

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This is the second article in my series on the MLM concept. Here is the first one with links to the rest.

I am going to define success as a business that is large enough to replace your entire normal income and also make a large positive change on your lifestyle. To be successful you first need to have a success mindset. You need to know how to make sales, how to make presentations and you need a team

For this blog I am going to assume that you have all of this in place and it is time to get started. Here is what else you need to get started quickly. These are the tools that I use.

Computer: You MLM is probably online, and you need to keep track of your customers and use your computer for marketing. (If you need a good deal on a computer go to Emerald Computers)
An office: You need a place where you go to work. This can be in your house or outside. It should be easy to bring potential customers there to talk with. I like to have a desktop as my main computer because you can use it longer with less fatigue. A laptop is also very useful.

Ok those are obvious, as should be having a good vehicle and an email account.

Now let me get a bit deeper, on what you need. I will assume that you are building an online business because most MLMs now are mostly online.

First you need your own domain name. You company has a web page and a domain name, but they control that. You need your own, something that is good for what you do, easy to spell, easy to remember. You then will get an email address on your domain. Never run a business using the email address from your ISP or one of those free sites like yahoo, msn or gmail, it really looks bad to many people. I use GoDaddy for my domains, it is cheap, had good support and works well.

Next you will want software to track your contacts. We use a program called ACT. With this program you enter in all the information about the people you are contacting. It them allows you to keep notes about them, update the info when you are on the phone, and most importantly it reminds you of the times you need to follow-up with these people. I also use a Palm Pilot to take all of this info and make it mobile, so that I can access and update it on the road.

Next you will want an auto-responder to manage your emails. What this does is track all of your contacts that wanted to be added to your various mailing lists. You also can preset automatic mailings, and send mass broadcasts to your prospects. There is much more you can do with it. I use a company called GetResponse and for the $150 a year I pay I get unlimited usage and it is well worth it.

Next you need your own website, you can make a simple site that you control. You should have a site for your prospects to visit. Another for your customers to visit and yet another for your team to visit. You need to learn about making a squeeze page, a way to extract data from your customer to feed to your auto-responder. I use a company called PrecisionWeb for my hosting. They offer much more than others for a great price. Check out the main Capital Active site for a great example of a basic page.

Next you should join networking websites like linkedin, Myspace, YouTube and make sites here for your business. You also can find many people who may be interested in your products.

Next it helps to have a blog, it is great way to establish yourself as an expert, as well as get a following of people finding out about you. It also really helps get you on top of the search engine results. I use wordpress because they are free, easy to use, fast and give you a ton links.

I found a lady who seems to have done everything PERFECT. I don’t know her, I just found her site from her blog today. She has her own great domain wealthcreatorsinc.com, and a nice blog. But you may not notice the two most important things she did, she made her page a squeeze page, where you must give her your information to go on. And second she DID NOT mention the name of her MLM this keeps you courious and willing to go on, and it lets her advertise without worrying about the rules of her company.

Next you need to create business cards with YOUR business name on it. I would suggest NOT to use business cards with the name of your MLM on it, they limit your advertising, and they are less flexible when you are marketing. Now carry many of these cards with you wherever you go. I hand out over 80 cards per week on average. More important than getting your card out is getting the cards of other people. I usually flip them over and write on the back details of what we talked about so I can remember.

I also often print up fliers with an upcoming event on it, as well as info about my website. Using this you can get a few more people a month to join your team.

You now need professional clothes. Depending on where you live you will have a different dress code. For Arizona pants and a nice button up shirt is good for most meetings. For the east coast you should wear a suit most of the time. No matter what, you need to have a suit for special events.

When I leave my house, I always have my Palm Pilot, my wallet with at least 20 business cards, my keys, my cell phone, an ink pen, a comb for my hair and usually I have my green laser pointer because it comes in handy all the time.

Well I hope this helps you be more successful.

The truth about the MLM business concept

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This is a business blog, and to million of Americans the face of business is a MLM. Over 100 million Americans have been in a MLM during some part of their life, and no business blog would be complete if it did not address this issue. So I will write a series on this subject.

I am sort of an expert in this area. I have been in many MLMs myself, I have had great success with some and failure with most. I have researched the MLM concept from every angle because at one time I was thinking of starting my own MLM. I have known the owners of different MLMs and I have seem many different ideas.

So what is my take on all of this. In short, my take is that the MLM idea is a way for average people to get into business and have the chance for success fairly quickly, but there are many pitfalls to avoid. A good MLM will provide training, have a good system, have a good product and pay well. This sounds easy but in reality MOST MLM companies that I have seen do not meet these four simply requirements.

The reason that the MLM idea is so powerful is because of a few different things. First most MLMs have a system in place, so it is easy to get involved and easy to get started, and you can do this part time. You put as little or as much effort into it as you like. Next the system is usually designed that anyone can do it, with even a little education you can be successful. The next strength of the MLM concept is that you can start it with very few resources. Most businesses that you start cost thousands to start but a MLM can cost under $100 to buy in and usually under $1000 to get everything set up. Next you usually have a team of people supporting you, trying to make you successful. Next you can bring on other people and duplicate your self and your income. They can be helping you make money at the same time that you are making money.

Now the MLM idea also has some weaknesses. One weakness is tied to the power, and that it the idea of being able to do it part time from home. With a job you must work the hours that you are told to work, but with a MLM you can choose, and most people (Honestly) are lazy and when they are their own boss they choose to do very little. The most successful people I know in MLM companies treat it like a job, they work 40+ hours a week at it and MOST of them rent an office so it feels like a real job. The idea of success from home is mostly a myth, it is much easier having a separate place and time to work, or else the work often does not happen. Another weakness is that many MLMs take most of the money that you earn and give it away to pay the whole system, so if you are a super star sales person you may not do as well. Another major weakness is that you really don’t control your business, the MLM company sets rules on what you can and can not do, and they have the right to make changes to the system they can change the prices of the products or even the rates in the pay plan. They also usually will set rules limiting your marketing, your website, and even your business cards. Also in many MLM companies you can get caught up focusing your time on many things very loosely related to making money, you will attend countless meetings, where you usually hear the same things over and over, leaving you little time to actually grow your business. This is helpful at first but later this can be very bad.

There are a few good MLMs out there please read the next articles on how to find them. In future articles in this series I will address the following topics, once the articles are posted these will become links:

The value of financial education is huge.

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It is said you never really know what you don’t know. It is not until you learn something that you really understand the value of the thing you just learned. Some things are very valuable and other have little value. For example if you get a little education on real estate investing and how it REALLY works, (Not always what you see on the TV) it will rock your world.

On the other hand I went to a 4 year university and at the end of it all I felt that I could have learned much more on my own. I am still glad I went for the social side of it all. Too many people spend their whole life in the rat race, it is like a giant treadmill, you only earn enough to get current on your bills, and if you ever make more you tend to spend more.

There are many bloggers, most much more popular than I am, that tell the masses how to save their meager earnings, and how to find deals so that they can spend less. But you really can only save so much. Even if you could save 50% of your earnings you still would take years to really get ahead. What they miss usually is that it is MUCH easier to increase your earnings than reduce spending. It takes a different kind of education, a type that most people do now learn. One nugget of info can change your life. It is much easier to live below your means if you increase you means. You do need to control costs, but spend more time increasing income than controlling costs and you will be ahead in the long run.

There is another blog, by a successful guy who gets this, I highly suggest you read his blog. It is called 7Million7Years. He recently wrote a blog about home equity, and that you should not put all your net worth into it. Read it here

Are you ready to learn how to take your investing, and your thoughts to the next level, well the next step is get educated. Read books by Robert Kiyosaki, Donald Trump, Douglas Andrew and Ric Edelman. I have found them to have the best books on real financial advise. Most of the others really give the WRONG advise. I don’t know what they are thinking sometimes.

If you are interested in real estate investing (Which you should be) my company, Capital Active, sponsors events where we teach people, for FREE, how to get started and how to be successful right from the start. If you are interested in an upcoming event sign up here.

Thanks and have a great day, leave a comment please.

Choose Your 5 Faves Wisely, it will change your life.

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I have heard for years, before T|Mobile even existed, that the 5 (Adult) people that you spend the most time with will shape your life.  You will become like them in most every way.  The amount of money that you earn will be near the average of these people, your ethics will be similar to the ones they have, your hobbies will start to match them and in many ways you will reflect these people in your life.

For me I have two people who I spend a lot of time with at this time, my wife and my business partner.  But beyond that the people are always changing.  And this is the key, when I decide who to spend time with I am REALLY deciding who I want to be.  Do I want to be like my friend who is a great speaker, a multi-millionaire, great to his family and a great all around guy….well of course I do.  Do I really want to be like the people who don’t care, who just do the minimum in life, and have bad things in their life……well no I don’t.   My problem in my life, I hate to admit, is that many times I spend time with the second type of person.  I don’t really know why I do this, it is not in line with my goals but yet I find myself in this position.  Maybe it is because when I am with them I am the one who knows everything, I am the one who is in charge.  When I am with successful people it often points out my flaws and challenges me, logically this is what I want but often emotionally it is hard to handle after a while.  For a few years there I strayed off course.  I seem to have done this a few times in my life.  I imagine where I would be if I did better, if I was bold enough to do everything that I imagine.

So how does this relate to business, well your personal development is the KEY to your success in life and therefore your success in business.  You choose who are your 5 Faves, and that choice determines you whole life.  Choose wisely.

They are watching you, and keeping track of your wrongs (Unless you pay!)

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What if an organization existed that kept a database on everyone. They would listen to whatever the general public says about other people, and they would record that information and save it in a database. Anyone can go and complain about anyone they like. The more people you meet the higher the chance you will have that someone will have a problem with you. Now what if they made that database available online, for anyone to search and look things up. Then they went a step farther and they would advertise on TV and on the radio the existence of their database, telling you that before you have a relationship with this other person you could look up what other people had to say about this person. They would also encourage you to report any complaints you have about others. You would be considered guilty of whatever action people have complained against you until you prove that you are innocent.

Of course they would not keep this database, and advertise for free, they would need to make money some how, so what if they let people become members of their organization, and a member would be allowed to ‘dispute’ anything in their own personal record and have it removed very easily. To be far they would have to establish a process for non members to dispute things, but of course these disputes would be given much lower priority. Also a member would be given a badge that they could show off the fact they were a paying member. If members paid a bit of extra money they even would be allowed to post this fact on their web page. The organization would advertise that you can only trust people that are members, even though membership is fairly meaningless, it only means you paid them off.

If such a thing existed would you be upset? Would you be outraged? Would you demand that the government do something about it? Would you see it as blackmail?

Well guess what, this organization DOES exist. It is called the Better Business Bureau and that have been doing exactly what I have described for almost 100 years. They pretend that they are there to protect people, that they keep detailed records on businesses but I have seen it first hand, that as soon as you pay them to become a member everything bad goes away with ease, and it is very hard to deal with them if you are not a member.

Also you have no idea what percent of people are unhappy with the company. Who is worse the small business with 10 customers and 5 of them complain or the large company with 10,000 customers where 50 complain? Well according to the BBB the larger one is worse. There are always crazy people who you can never resolve a problem with, we all know them, and companies are punished for having them as customers, even if only .1% of their customers have a bad experience they could have a horrible rating. The company across the way with 10% of their customer having problems pays the BBB off and gets away free. This is a horrable system.

So what can you do about this unfair, blackmail organization? As a customer do not trust them, do not use the BBB to handle your dispute, do not look up your vendors in their database and when you see someone who is saying they are a member, feel sorry for the delusion they live in. If you own a business or have influence in one please don’t become a member, do not give them money, and respond to complaints filed with them.

I am not mad at them, I have no problem with them personally, I just feel that such an organization should not be allowed to exist in our modern society. Maybe if they made some changes, and provided more information, including positive information it would be more useful, and also made it easier to dispute claims against you. But as of now there are many much better and more accurate information sources for those looking to find out about those they plan to do business with. Here are some examples of companies that many people consider to be horrible, but they have perfect ratings with the BBB because they pay, even though there are a huge number of complaints about them. Just read what some people had to say about these companies.
Frys Electronics: Vegas Midway auto team: Phoenix Best Buy (over 12000 complaints) ( I just love how most of the complains on these members are “Administratively closed” something only members can have done.)

Is having a budget really a good idea for you?

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I hear people all over the place talking about having a budget.   They say you have to plan how you will spend your money.  For wage earners who trade their time for money, and usually trade the same amount of time and thus earn the same money at a predictable level a budget sounds like a good idea.  BUT not everyone is like this, there are us entrepreneurs out there, people who trade effort or ideas for money.  If you are one of the 5% that really wants to be successful in life you need to follow a totally different set of rules, and listening to the people who are in the other mindset will only distract you and give you wrong ideas.

For this 5% a budget is silly. I don’t know how much gas I will use, or how much I may spend on eating out.  The thing is I hope I spend A LOT on gas because almost all of my driving is for business, and the more I drive then that must mean the more I made in sales that month.  The same goes for restaurants, I would love to take a lot of customers out to eat, each time I do I make about $1,000 on average.

So what are we to do in this position?  First FORGET the budgeting idea.  For the things you must buy, find the best deals and be frugal.  When deciding if you are going to do something don’t only look at the cost of the activity, like budget people do, look at the income opportunity.  In January we were planning on going to Vegas for 4 days for the CES convention, a few people questioned us if this was in the budget or not, of course it was not because we don’t have a budget, but going to this event made many changes in our business that have more than paid for the trip.

I read a blog today about a guy who suggests you cut your cable to basic to save the $200 or so per year it costs extra, and also to watch much less TV.  I agree with not watching mindless TV, but I can point to many times where I have seen something on TV that inspired me to do something different, and this action resulted in a large profit for our company.

So many people ignore the dollars, hanging there to be picked because they are so busy picking up the pennies on the floor.   The thing is that MANY people will spend 10 hours in a week, comparison shopping, looking for deals, going to 5 grocery stores to get the best deals but almost all of them spend NO TIME at all trying to find new ways to earn money.  One idea that can earn you money can be worth ALL the ideas you have to save money, yet 90% of the blogs out there on money are about how to save money.   This just shows you the wrong financial thinking that most people have.

Back to basics, going door to door.

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Back to basics, going door to door.

 

We have decided that we need a few more customers.  One of the most effective way we have found to get customers is very old fashioned, low tech but it works.  Tomorrow we are going to visit some nice office buildings, ones that contain businesses that match our target market, ones with 10-20 users.  We are going to start out by going to a mixer for our local chamber of commerce.  These businesses are large enough to generate volume for our company but small enough that they don’t have their own IT departments.  Tomorrow will be a long day, last time we did this we got one large customer that accounted for half of our sales last month. 

 

Sometimes you just gotta get back to basics sometimes in this modern age.  We are used to our websites, our blogs, our IM’s, our text messaging and all out other high tech stuff but sometimes the best thing to do is get out and see people face to face.  Need to boost sales, try getting back to basics, and meet someone in person.

Emerald Computers, a short history from a business POV

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I started a computer company in 1998, and thought I knew it all but I quickly learned so much more. I moved that store a few doors down and this time designed in the way I wanted all future stores to be like. I created systems for doing everything. Then I set out on opening more stores. By then it was 2004 and the market for computers was crashing, the wars by the big companies erased all the profits in the industry. By 2005 we were back to one store. By the end of 2007 we decided that the retail storefront was not the way to go. We moved to a much lower rent area, and just serve corporate and online customers, the ones with the best profits. The wars are over and the profits are back in the computer industry, and with our reduced cost, decade of experience we are ready to explode. All we need now is a capital infusion to get us to the next level. Even if we only get .5% of the US market that is still huge.

Now we are looking for investors.  People who can see the vision and are willing to go there with us.  They will, of course, share in our success.

The world is changing forever. It is getting flat, feel the pressure yet?

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The world is changing forever.  Well this has been a true statement for as long as history has been recorded.  The pace of this change is much faster now than it has ever been.  The problem is that many people are stuck in their way of thinking.  The learn things one way and most people, at some point stop keeping up with the changes and start to fall behind, way behind.

So how is the world changing right now?  Well we are in the middle of a few major changes.  The key to most of these changes it the spread of technology.  Because the United States was first in most everything we had to go slow, create standards and design from scratch.   Other nations have had the gift of just being able to copy our progress.  Think about advances in computers, medicine or cars.  The high tech developed nations have designed the improvements but everyone; even those in the poorest nations get the benefit.

Now having the same, standardized protocols methods for doing things all over the world, along with an instant, worldwide communication system things REALLY have changed.  Now people from anywhere can communicate instantly, they can chat, they can talk.  And now it is everywhere and so cheap that people with almost nothing can still go to a public computer lab and join the global work force.  With just a small investment an office can be opened anywhere to do most things.  This allows the work to be done in the location where the labor is the cheapest.  This premise is called the Flattening of the World.

When I was in Asia for much of last year I still had an Arizona phone number, I was able to control computers in Arizona just as if I was sitting at the keyboard.  I was able to send email, create web pages, move money from account to account, write checks online, order parts and have them shipped to our production area, as well as sell products to customers.  I could do 90% of what was required to manage a company.  For the other 10% I delegated it, and was available on the phone to help the person out.  This is happening all over the world.

No longer do the super smart people from all over the world want to move to the US or western Europe so that they could be apart of the global high tech work force, they now can do it from home, in their native country.

This change is HUGE, and it will never be reversed.  It will FOREVER deeply impact the way the world works.  Most jobs are now at risk and the jobs will be given to the person who will do the best job for the best price.  If you keep your job the price pressure of the rest of the world will make the wages you are paid go down.  This is great for the people who see it coming and create a system to take advantage of this new shift.  It will be the worst thing for those that don’t keep up, and those that expect things not to change.

People who are in lesser developed nations will also gain, they will be the target of huge amounts of education, and capital.

There will be a new definition of the middle class, the definition will be MUCH lower than what is currently considered the middle class now, maybe a family income of $15,000 per year.  world is flatBasically what we see as the middle class in the United States will be much smaller than it currently is.  And millions of people all over the developing world will be moved out of poverty and into their definition of a middle class.

If you want to learn much more about this there is a really smart guy named Thomas L Friedman, he invented the term and latterly wrote the book on this subject.  This book is one of the most important books of our current time, and those that understand it will be much more successful in life.

No matter what happens it is huge and will affect you.  So it if your choice get educated about it and take advantage of the change, or just wait and be sideswiped by it.