Jim Rohn February 1, 2008
Failure is not a single, cataclysmic event. We do not fail overnight. Failure is the inevitable result of an accumulation of poor thinking and poor choices.
To put it more simply, failure is nothing more than a few errors in judgment repeated every day.
Now why would someone make an error in judgment and then be so foolish as to repeat it every day? The answer is because he or she does not think that it matters.
On their own, our daily acts do not seem that important. A minor oversight, a poor decision, or a wasted hour generally doesn’t result in an instant and measurable impact. More often than not, we escape from any immediate consequences of our deeds.
If we have not bothered to read a single book in the past 90 days, this lack of discipline does not seem to have any immediate impact on our lives. And since nothing drastic happened to us after the first 90 days, we repeat this error in judgment for another 90 days, and on and on it goes. Why? Because it doesn’t seem to matter. And herein lies the great danger. Far worse than not reading the books is not even realizing that it matters!
Those who eat too many of the wrong foods are contributing to a future health problem, but the joy of the moment overshadows the consequence of the future.
It does not seem to matter. Those who smoke too much or drink too much go on making these poor choices year after year after year... because it doesn’t seem to matter. But the pain and regret of these errors in judgment have only been delayed for a future time. Consequences are seldom instant; instead, they accumulate until the inevitable day of reckoning finally arrives and the price must be paid for our poor choices—choices that didn’t seem to matter.
Failure’s most dangerous attribute is its subtlety. In the short term, those little errors don’t seem to make any difference. We do not seem to be failing. In fact, sometimes these accumulated errors in judgment occur throughout a period of great joy and prosperity in our lives. Since nothing terrible happens to us, since there are no instant consequences to capture our attention, we simply drift from one day to the next, repeating the errors, thinking the wrong thoughts, listening to the wrong voices and making the wrong choices. The sky did not fall in on us yesterday; therefore, the act was probably harmless. Since it seemed to have no measurable consequence, it is probably safe to repeat.
But we must become better educated than that!
If at the end of the day when we made our first error in judgment the sky had fallen in on us, we undoubtedly would have taken immediate steps to ensure that the act would never be repeated again. Like the child who places his hand on a hot burner despite his parents’ warnings, we would have had an instantaneous experience accompanying our error in judgment.
Unfortunately, failure does not shout out its warnings as our parents once did. This is why it is imperative to refine our philosophy in order to be able to make better choices. With a powerful, personal philosophy guiding our every step, we become more aware of our errors in judgment and more aware that each error really does matter.
Now here is the great news. Just like the formula for failure, the formula for success is easy to follow. It’s a few simple disciplines practiced every day.
Now here is an interesting question worth pondering: How can we change the errors in the formula for failure into the disciplines required in the formula for success? The answer is by making the future an important part of our current philosophy.
Both success and failure involve future consequences, namely the inevitable rewards or unavoidable regrets resulting from past activities. If this is true, why don’t more people take time to ponder the future? The answer is simple: They are so caught up in the current moment that it doesn’t seem to matter. The problems and the rewards of today are so absorbing to some human beings that they never pause long enough to think about tomorrow.
But what if we did develop a new discipline to take just a few minutes every day to look a little further down the road? We would then be able to foresee the impending consequences of our current conduct. Armed with that valuable information, we would be able to take the necessary action to change our errors into new success-oriented disciplines. In other words, by disciplining ourselves to see the future in advance, we would be able to change our thinking, amend our errors and develop new habits to replace the old.
One of the exciting things about the formula for success—a few simple disciplines practiced every day—is that the results are almost immediate. As we voluntarily change daily errors into daily disciplines, we experience positive results in a very short period of time. When we change our diet, our health improves noticeably in just a few weeks. When we start exercising, we feel a new vitality almost immediately. When we begin reading, we experience a growing awareness and a new level of self-confidence. Whatever new discipline we begin to practice daily will produce exciting results that will drive us to become even better at developing new disciplines.
The real magic of new disciplines is that they will cause us to amend our thinking. If we were to start today to read the books, keep a journal, attend the classes, listen more and observe more, then today would be the first day of a new life leading to a better future. If we were to start today to try harder, and in every way make a conscious and consistent effort to change subtle and deadly errors into constructive and rewarding disciplines, we would never again settle for a life of existence—not once we have tasted the fruits of a life of substance!
Thursday, July 31, 2008
What Is Your Financial IQ?
Todd Eliason February 15, 2008 Category: Wealth
It’s been 11 years since the publication of Rich Dad Poor Dad. Robert Kiyosaki’s mega-hit best seller not only challenged our preconceptions about money, it cast light on what he says is an antiquated education system that teaches subjects many will never apply in real life, preparing for a world that will never exist.
To say the book ruffled a lot of feathers would be an understatement. But that was the whole point. Kiyosaki wasn’t looking to write just any financial book. There were hundreds of financial books, in his view, that said the same thing. He wanted to let the education system know it was failing in teaching children what they need for financial success. He wanted to shake up parents by telling them some of the most dangerous advice they could give their children was to go to school, get good grades and look for a safe secure job.
This advice was based on the old rules of money when people worked for one company for 30 years and retired with a fat pension. Those days are long gone. With corporate mergers and downsizing happening every month, Robert Kiyosaki says it’s just too risky to play by the old rules. In the end, employees lose and owners and investors win.
Two Dads Two Philosophies
Rich Dad Poor Dad’s monumental success showed that Robert and wife Kim Kiyosaki, co-founders of The Rich Dad Company, were on the right track in their mission to educate and empower people by improving their financial literacy.
Robert’s financial philosophy was honed at a young age when, having been raised by two “dads,” a rich one and a poor one, he had been taught to strive for two different goals. His educated father (his real father) wanted him to go to school and get a cozy corporate job. His rich father (his best friend’s father) told him to own the corporation. Both men were successful in their careers and earned substantial incomes. Yet one struggled financially his entire life. The other would become one of the richest men in Hawaii. One left his family with millions, while the other left unpaid bills. Both men valued education but different courses of study. Both had different views of money—one believed money to be the root of all evil; the other believed the lack of money was the root of all evil.
As a young man having two “fathers,” Kiyosaki realized he needed to be careful about which thoughts and words he adopted as his own. At 9, he decided to listen to and learn from his rich dad about money. And in doing so, his education about money began. His rich dad taught him over a period of 30 years, finishing when he fully understood that money is only one form of power. Financial education is where the real power lies.
Kim Kiyosaki was raised with a “rich dad” philosophy, so her views were similar to Robert’s when they met. Kim’s career started in advertising, working for a top Honolulu agency. By 25, she was running a Honolulu business magazine. A couple years later, she ventured into her own business, a clothing company with national distribution. In 1989, she started a real estate investment career that now controls millions of dollars in property.
Kim joined Robert, her business partner and now husband of 24 years, in teaching entrepreneurial business around the world. That business grew to support 11 offices in seven countries. They sold the business in 1994 and “retired.” But retirement for them was short-lived.
Rich Dad Poor Dad has been on all the best-seller lists for years. Kim has written a best seller, Rich Woman, and Robert has written several others, including Why We Want You to Be Rich with Donald Trump. “Donald has really inspired me. You know, I’m just an ordinary millionaire, and now I’m inspired to reach his billionaire status.” Robert says.
Assets Don’t Make You Rich
Robert Kiyosaki knows well that his success is partly due to his going against conventional wisdom. “When I wrote Rich Dad Poor Dad I told people that your home is not an asset,” he says. “People really criticized me for saying that, but if you look at what is happening today with the mortgage crisis, families are getting wiped out because they can’t afford their house payments.” Experts are saying that in 2008 up to 2 million people will lose their homes. “These are good people—but people who lack the financial education to make good money choices.”
Robert defines financial intelligence this way: If you put money in your savings account, the bank is going to pay you 3 percent. But the problem is inflation is running at 3 percent so your financial intelligence is 0.
“You can lose money on anything,” says Robert, who as a young adult began investing in gold. Although he didn’t make much money, gold taught him many priceless lessons. He realized it’s not the assets—real estate, stocks, mutual funds, businesses or money—that make you rich. It’s the information, knowledge, wisdom, and know-how—one’s financial intelligence—that makes a person wealthy.
Increase Wealth: Start a Business
With companies downsizing, the failing dollar and higher cost of living, many families feel the pinch. “The need to earn more money has never been greater than right now,” Robert says. For many, he says, “the No. 1 thing people can do to increase their wealth is to start a part-time business. They can start a small home-based business, an Internet company or network marketing business. The key is to start small and learn everything about the business.”
Most people have enough financial intelligence to make money, Robert says. One reason they aren’t able to make more money is because they fail to realize “it’s the process that makes them rich, not the money. Many other people fail to become rich because they value a steady paycheck rather than going through the learning process of becoming financially smarter and richer. They are held back by the fear of being poor,” he says.
“In my second book, The Cashflow Quadrant, I talk about the four types of people in the business world. It’s targeted to people who are ready to make changes in their lives—changes far greater than simply going from job to job—and to start building wealth.”
In 1984, early in their marriage, Robert and Kim were trying to get their business off the ground. Robert attended seminars and studied all the time. But they were struggling financially. “We were homeless for a period of time, even sleeping in our beat-up old brown Toyota. And everybody kept saying to us, ‘Why don’t you just go get a job?’ or ‘Why don’t you put the dream on hold?’ ” Kim says. “The easiest thing would have been to quit, but we didn’t quit.”
Taking risks and making mistakes are essential to learning, Robert says. “I take on risk because it forces me to get smarter. When I buy an apartment house, it forces me to mitigate and minimize that risk—to get smarter, to study more, to know what I’m doing.”
Reaching Out
Generosity is a big key to the Rich Dad philosophy. Robert and Kim are committed to supporting organizations such as the Boys & Girls Club of Phoenix. Instead of giving money away, they are giving the tools to teach. And they are teaching these kids in an unconventional way—with a board game. “Games like our Cashflow Quadrant are a powerful way to teach anyone financial education—especially kids—because they learn by doing,” Kim says. “These kids were so excited to learn and the progress they made in just a short time in terms of learning about money was simply amazing.”
The staff invited the children’s parents to come play the game, and now they are learning the basics of finance, accounting and investing. “That’s really what our message is all about,” Kim says. “The Rich Dad philosophy is not about holding a person’s hand and telling them how to do it. We are all about giving people the tools and the education to go out and do what they want to do. We are not about saving people. We are about enabling and empowering people.”
Direct Selling Offers Flexibility and Financial Freedom
Erin Casey May 5, 2008
If you want to spread your entrepreneurial wings but have little or no business experience, don’t have a product or service to offer or are simply looking for a proven system for success, direct selling might be the ideal opportunity.
For more than 100 years, direct selling companies have offered independent representatives the ability to purchase products at wholesale prices and earn a profit by selling them at retail prices. Most direct selling companies also allow representatives to earn commissions for introducing new sales reps to the business. This business model relies on independent contractors, rather than traditional advertising, to spread the word about a company’s products or services. The word-of-mouth marketing approach works for several reasons: Consumers appreciate the personal service, the convenience of shopping from home, and the comfort of buying from those they know and trust.
Jim Cramer, host of CNBC’s Mad Money, is bullish on direct selling, especially during a slowing economy. “Direct selling is a great model…with high gross margins, low capital intensity, lots of free cash flow,” he said on a recent show. “It’s a fragmented industry with gigantic room for growth. The top 15 players only account for about half the market.”
Amy M. Robinson, Direct Selling Association Vice President of Communications and Media Relations, points out that, while many people seek additional income during lean economic times, “in all honesty, direct selling is hot because it’s a fun, convenient way to shop that people enjoy. So, poor economic times or not, people fi nd direct selling to be appealing. Great products, personal service and income potential are elements of direct selling that make it a strong economic contender at all times.”
“People motivated to get started in direct selling typically share certain attributes,” she says. “Most seek supplemental income, either short-term or long term. The social aspect also is appealing for those who love to meet new people and many enjoy buying products and services they already use—at a discount.”
With a direct selling business opportunity you can: Join an industry where business is booming and there’s always room at the top. Direct selling, sometimes referred to as network marketing, is a $32 billion industry in the United States and a $110 billion industry worldwide. The millions of individuals building direct selling businesses determine for themselves when they want to move up the career ladder and exactly how high they want to climb.
Tap into a proven system for success. Avoid wasting time or money by learning from others’ experiences and wisdom. Direct selling companies often provide high-quality, high-impact marketing tools, including personal Web sites, brochures, catalogs, DVDs and CDs to help direct sellers present a professional image—at a fraction of what it would cost to produce the same tools on their own. Additionally, training in best practices is frequently offered online and via conference calls as well as at local and national conferences.
Start a business for $500 or less. Direct selling companies offer big opportunity with minimal startup costs. For a small sign-up fee, new reps receive access to training and marketing materials, discounts on products and sample products to show and sell. You can set up office at your kitchen table with phone and laptop. Low overhead combined with minimal(if any) inventory expenses make direct selling businesses affordable. And because many companies handle online orders and deliver directly to customers, independent representatives can focus their time on connecting with potential clients and team members.
Experience flexibility and time freedom. The flexibility to work around full-time jobs or to create an income stream that fi ts into their families' schedules is a huge perk. Because
each representative is an independent contractor, not an employee, there is no set schedule or required number of hours. On average, part-time direct sellers devote three to 10 hours per week to their businesses. Those who pursue the business full time invest 15 to 35 hours per week. In either case, representatives can set their own schedules and build their businesses during off hours and lunch breaks or on weekends.
Earn what you’re worth. When you’re the boss, you don’t have to ask for a raise—you simply go out and earn one. A results-driven industry, direct selling levels the playing field by offering the same opportunity to everyone regardless of age, ethnicity, gender or socioeconomic background. Equal opportunity, a clearly defined career path and no earning restrictions mean there are no limits on what successful direct sellers can earn. While some in the industry are earning millions, it’s more common for direct sellers to use their businesses to earn extra cash per month to pay for dinners
out, private school, college expenses, cars and family vacations.
Maximize your earnings with residual(or passive) income. By building a team of people who love the products and are excited about telling others about the opportunity, direct sellers can leverage their time and maximize their income. Capitalizing on a team’s efforts means a business owner can devote 10 hours a week to their business, but with 10 other people also devoting 10 hours to their businesses, the team leader earns a commission from the collective sales and team-building results of 110 hours’ effort. It also means a team builder’s business has the potential to grow, even while he or she is on vacation.
“I like the honesty about direct selling,” says economist Paul Zane Pilzer, author of The Next Millionaires, “because it openly tells people the way to get rich is residual income: Get paid tomorrow for something you did yesterday—and let it accumulate.”
Reap the rewards of helping others succeed. Building a team definitely makes financial sense, but it also offers significant intangible rewards. Though representatives run their businesses independently, they often develop a family-like connection with their team members and others in the business. The friendships formed and the experiences of helping others improve their personal and financial lives are often as meaningful to direct sellers as the money they earn.
Get the recognition—and prizes—you deserve. In the corporate world, there’s no such thing as a free lunch, much less free vacations, luxury cars or fine jewelry. Direct selling companies know most people work more diligently and with more enthusiasm for a reward. First-class incentive trips to exotic locations, free cars or car allowances, fine jewelry and cash bonuses are offered by many companies to those who excel. And the opportunity to earn such rewards is open to everyone.
Become a better you. Direct sellers are faced with numerous comfort-zone challenges, and by overcoming those challenges they grow personally and professionally. The encouragement and training these independent business owners receive from their companies’ leaders as well as others in the fi eld spur them to step outside their comfort zones to achieve success.
If you want to spread your entrepreneurial wings but have little or no business experience, don’t have a product or service to offer or are simply looking for a proven system for success, direct selling might be the ideal opportunity.
For more than 100 years, direct selling companies have offered independent representatives the ability to purchase products at wholesale prices and earn a profit by selling them at retail prices. Most direct selling companies also allow representatives to earn commissions for introducing new sales reps to the business. This business model relies on independent contractors, rather than traditional advertising, to spread the word about a company’s products or services. The word-of-mouth marketing approach works for several reasons: Consumers appreciate the personal service, the convenience of shopping from home, and the comfort of buying from those they know and trust.
Jim Cramer, host of CNBC’s Mad Money, is bullish on direct selling, especially during a slowing economy. “Direct selling is a great model…with high gross margins, low capital intensity, lots of free cash flow,” he said on a recent show. “It’s a fragmented industry with gigantic room for growth. The top 15 players only account for about half the market.”
Amy M. Robinson, Direct Selling Association Vice President of Communications and Media Relations, points out that, while many people seek additional income during lean economic times, “in all honesty, direct selling is hot because it’s a fun, convenient way to shop that people enjoy. So, poor economic times or not, people fi nd direct selling to be appealing. Great products, personal service and income potential are elements of direct selling that make it a strong economic contender at all times.”
“People motivated to get started in direct selling typically share certain attributes,” she says. “Most seek supplemental income, either short-term or long term. The social aspect also is appealing for those who love to meet new people and many enjoy buying products and services they already use—at a discount.”
With a direct selling business opportunity you can: Join an industry where business is booming and there’s always room at the top. Direct selling, sometimes referred to as network marketing, is a $32 billion industry in the United States and a $110 billion industry worldwide. The millions of individuals building direct selling businesses determine for themselves when they want to move up the career ladder and exactly how high they want to climb.
Tap into a proven system for success. Avoid wasting time or money by learning from others’ experiences and wisdom. Direct selling companies often provide high-quality, high-impact marketing tools, including personal Web sites, brochures, catalogs, DVDs and CDs to help direct sellers present a professional image—at a fraction of what it would cost to produce the same tools on their own. Additionally, training in best practices is frequently offered online and via conference calls as well as at local and national conferences.
Start a business for $500 or less. Direct selling companies offer big opportunity with minimal startup costs. For a small sign-up fee, new reps receive access to training and marketing materials, discounts on products and sample products to show and sell. You can set up office at your kitchen table with phone and laptop. Low overhead combined with minimal(if any) inventory expenses make direct selling businesses affordable. And because many companies handle online orders and deliver directly to customers, independent representatives can focus their time on connecting with potential clients and team members.
Experience flexibility and time freedom. The flexibility to work around full-time jobs or to create an income stream that fi ts into their families' schedules is a huge perk. Because
each representative is an independent contractor, not an employee, there is no set schedule or required number of hours. On average, part-time direct sellers devote three to 10 hours per week to their businesses. Those who pursue the business full time invest 15 to 35 hours per week. In either case, representatives can set their own schedules and build their businesses during off hours and lunch breaks or on weekends.
Earn what you’re worth. When you’re the boss, you don’t have to ask for a raise—you simply go out and earn one. A results-driven industry, direct selling levels the playing field by offering the same opportunity to everyone regardless of age, ethnicity, gender or socioeconomic background. Equal opportunity, a clearly defined career path and no earning restrictions mean there are no limits on what successful direct sellers can earn. While some in the industry are earning millions, it’s more common for direct sellers to use their businesses to earn extra cash per month to pay for dinners
out, private school, college expenses, cars and family vacations.
Maximize your earnings with residual(or passive) income. By building a team of people who love the products and are excited about telling others about the opportunity, direct sellers can leverage their time and maximize their income. Capitalizing on a team’s efforts means a business owner can devote 10 hours a week to their business, but with 10 other people also devoting 10 hours to their businesses, the team leader earns a commission from the collective sales and team-building results of 110 hours’ effort. It also means a team builder’s business has the potential to grow, even while he or she is on vacation.
“I like the honesty about direct selling,” says economist Paul Zane Pilzer, author of The Next Millionaires, “because it openly tells people the way to get rich is residual income: Get paid tomorrow for something you did yesterday—and let it accumulate.”
Reap the rewards of helping others succeed. Building a team definitely makes financial sense, but it also offers significant intangible rewards. Though representatives run their businesses independently, they often develop a family-like connection with their team members and others in the business. The friendships formed and the experiences of helping others improve their personal and financial lives are often as meaningful to direct sellers as the money they earn.
Get the recognition—and prizes—you deserve. In the corporate world, there’s no such thing as a free lunch, much less free vacations, luxury cars or fine jewelry. Direct selling companies know most people work more diligently and with more enthusiasm for a reward. First-class incentive trips to exotic locations, free cars or car allowances, fine jewelry and cash bonuses are offered by many companies to those who excel. And the opportunity to earn such rewards is open to everyone.
Become a better you. Direct sellers are faced with numerous comfort-zone challenges, and by overcoming those challenges they grow personally and professionally. The encouragement and training these independent business owners receive from their companies’ leaders as well as others in the fi eld spur them to step outside their comfort zones to achieve success.
Monday, July 28, 2008
Home-Based Business Tax Tips
Reduce Your Tax Bill The Internal Revenue Service collects only on your taxable income. So an easy way to cut your tax bill is to REDUCE your taxable income. You do that by claiming deductions when you file. But the exact way you take these deductions depends on your personal circumstances. The best way to reduce your taxable income is to have a home-based business (HBB) where you claim deductions due to your business. The Tax Laws benefit the business owners not employees!!!!
Definition: Home-Based Business A Home-Based Business (HBB) is any business or service that you are offering and you use your home as your main office to operate your business.
What is Network Marketing? • A Network is an interconnected or interrelated chain, group, or system.
• Marketing is to expose for sale in a market.
Note: The most successful people create networks (television network, radio network, computer network, etc.)
Network Marketing Distributor As a Network Marketing distributor you are building a network of people distributing services and/or products. You'll be entitled to tax breaks, which will enable you to reclaim a substantial portion of your tax dollar, dollars normally taken by the IRS. Tax laws that allow Network Marketers to garner substantial tax breaks are the same laws that benefit GM and IBM. The only difference between most Network Marketing businesses and these Fortune 500 entities in the eyes of the IRS is their size, and the fact that Network Marketers can also deduct many expenses from their homes and daily lives. If these expenses contribute to the success of their Network Marketing home-based business, then they are fully tax deductible!
Benefits Benefits of having a Home Based Business(HBB) in Network Marketing:
1. Reduce your Taxes
2. Claim all deductions even if you did not make any money with your business (The income you are earning can be from your job)
3. Option of getting a lot more money back just from the taxes taken from your paycheck at your job (this would still be your taxable income)
4. Get your money NOW instead of later.
5. A percentage back from your expense column (more tax refund)
How to Get a Raise on your Job by having a HBB in Network Marketing 1. Increase the number of your dependents (deductions) so you will be taxed on a lower income
2. Lower taxable income means you pay less in taxes at the end of the year then once you file your taxes be sure your deductions from your HBB exceeds your income from your deductions claimed.
3. Get more money back and get more money on your paycheck NOW.
Get your money FIRST Notice that as an Employee: an employee taxes are your first expense!!!!
• This means before YOU even get your check on your job the government already gets its cut out of it!
• So, when you get a raise on your job the government gets a raise which again is taken out before you get your money!
Notice as a Business Owner: a business owner taxes is your last expense!!!
• This means that after you have done all of our spending for your business, the government then comes and taxes what is left after that.
• As you can see this makes a big difference!!!!!
Scenarios:
Job w/o HBB
Vs.
Job w/HBB As you will see from the two scenarios below the way to reduce your taxable income is by having a home-based business.
• For each scenario there are two incomes to show the difference when making this amount of money.
• These charts deals with averages and all depends on your activity in the business.
• Compare the taxable income and the amount that would be paid out in taxes. This shows how much we are saving in the amount of taxes that we do not have to pay at the end of the year.
JOB WITHOUT HOME-BASED BUSINESS
INCOME DEDUCTIONS TAXABLE INC PAYMENTS
$30,000 $4,200 $25,800 $7,740
$100,000 $14,000 $86,000 $20,000
JOB WITH HOME-BASED BUSINESS
INCOME EXPENSES
(LIFESTYLE) DEDUCTIONS TAXABLE INC PAYMENTS
$30,000 $9,500 $14,400 $6,100 $864
$100,000 $67,000 $15,600 $17,400 $5,248
Example of Personal Expenses
1040/1040A Employee $40,000
TAXES $8,000 (FED)
$4,000 (STATE/FICA) - $12,000
HOUSING $1,000/Month - $12,000
UTILITIES Cable, Phone, Gas, Water, Electric, Internet -$4,800
TRANS $400/Mo (car note)
$100/Mo (Insurance) -$6,000
FOOD $20/Day x 365 -$7,300
Yearly Total of Expenses $42,100
Example of Business Expenses
Schedule C TNI IPC $40,000
MILES
(IRS Publication 463) $20,000 Miles @ 48.5 cents/mile -$9,700
HOME OFFICE
(IRS Publication 587) 25% of Mort./Rent -$3,000
UTILITIES
(IRS Publication 587) Cell Phone, Internet, Home Phone, etc -$1,600
KIDS
(IRS Publication 15) Age 7-18 -$5,150
MEALS/ENTERNMENT
(IRS Publication 463) $75 w/o Receipt -$8,300
Yearly Total of Expenses $27,750
Expenses One thing that you want to take notice of is that with having a HBB is that your expenses to maintain your lifestyle takes away from our taxable income.
Here is a list of expenses that you can claim:
• Car/Truck, repairs, Mileage, etc.
• Interest, Mortgages, Rent, household bills
• Office expenses (like flooring & carpeting) or Supplies
• Rent/Lease of equipment, cars, etc
• Travel, meals, entertainment, etc.
• Services such as legal issues, repairs, ads, etc.
• “Other” expenses such as telephone (i.e. Cell phone!), shipping, food, professional cleaning, materials, and hair/nail maintenance!!!
List goes on and on……….
Explanation for Deductions What's deductible in your ordinary lifestyle expenses when you own a Network Marketing business?
If you legitimately work your business engaged in the following actions, here's what's deductible. Check out the math and examples:
• Meals: when you discuss business at lunch or dinner with co-workers and friends, your meal is 50 percent tax deductible. Meals: $500: Lunch with co-workers is deductible (Hey, they're prospects!). $4/day times 250 work days = $1,000 x 50 percent deductible = $500
Explanation for Deductions (continued) • Entertainment: theater and sports event tickets, and other expenses relating to entertainment focused on building relationships with prospects, retail customers and down-line or up-line distributors. (Remember, by definition, everyone is a potential prospect or customer of your Network Marketing business!)
• Automobile mileage: is deductible between your home-based business office and a meeting where business is discussed, such as the meals mentioned above, or an opportunity meeting, or even a golf outing with friends who are prospects! Automobile mileages from your home office to day job or other places where you actively encounter prospects and actively discuss the product. (20 miles round trip to work x 250 days x 30 cents/mile).
• Health insurance for family (Spouse is an employee of your home-based business, who chooses to include you and kids on the plan. That's $16,000 Total tax-deductible expenses x 35% combined Federal and State tax rate = $5,600 cash refund from IRS on April 15th)
• Travel: is deductible -- be it to an industrial center or an island resort if the purpose is to hold an opportunity meeting, to discuss business with other travelers, or to attend a seminar.
• Spouse Travel: Your spouse's travel can even be deductible if their presence is helpful in closing the sale. Travel expenses for you and spouse to vacationland if you hold opportunity meetings (could be to the friends you are visiting) and your spouse participates.
• Children Wages: You can also deduct wages paid to your children for help in the business, and if those children are under 14 and have no other sources of income, all wages under $4,000 per year are tax free. It's a great way to help save for college with Uncle Sam's help! Tax free wages for two kids without other jobs who assist you in your Home-Based Business (2 kids x $4,000 per year paid to their savings accounts for college/weddings, etc.)
• Equipment: Home computers, fax machines, telephones, office supplies, and office furniture are also fully tax deductible. Home office deduction ($150/month) can be used for use of spare room in house out of which you operate your home-based business.
NOTE:
Requirement-- The IRS's only requirement is that you legitimately treat your Network Marketing business as a business not a hobby. That means regularly working your business. What counts as "regularly working" your business? Just taking the actions you are telling your down-line to take: attend weekly meetings, call prospects regularly, use the product, tell people about the product and, if successful, teach others to do the same.
You must Document Everything! You must document everything! Documentation is the key!
The IRS will recognize their right to their home-based business tax breaks
Only if they properly document their activities and expenses!
Documentation is a big word, but a simple process. It merely means writing down in your day planner all business-related activities, business- related expenses and any revenues you earn. Consistent record keeping will prove to the IRS (on the rare chance you have to) that you are truly running a business and not engaged in a hobby, whether or not it makes money.
Example of Documentation What do these records look like?
They're simple. Just writing down the persons you spoke with about the business, where you went in pursuit of your business, and what you spent in the ordinary course of conducting your business. If done in a regular and consistent manner, will provide you with proper documentation and a veritable sea of deductible business expenses!
Sure, it takes time to write down your business-related activities every day; but for a maximum investment of five minutes a day, the time spent record keeping is worth a minimum of $5,000 in tax savings. That's $240/hour of tax savings for the time you spent keeping track of your activities and expenses. A pretty good wage for simple record keeping!
Conclusion Success is fun and helping people achieve success is fun, but having the help of Uncle Sam is exhilarating. If the people you sponsor actively follow your guidance, they should make money; but even if they don't, they can still claim all the deductions.
Remember, to deduct the above expenses, you must be actively working your business in the lunches, trips, visits, etc. mentioned above, and be keeping proper records. If you are an active Network Marketer, this is not only perfectly legitimate, it's good business, AND it's a great reason to show your prospects why they need to know in their own Networking business, too!
I recommend that you consult your accountant and individual tax advisors in applying these concepts to your business.
Definition: Home-Based Business A Home-Based Business (HBB) is any business or service that you are offering and you use your home as your main office to operate your business.
What is Network Marketing? • A Network is an interconnected or interrelated chain, group, or system.
• Marketing is to expose for sale in a market.
Note: The most successful people create networks (television network, radio network, computer network, etc.)
Network Marketing Distributor As a Network Marketing distributor you are building a network of people distributing services and/or products. You'll be entitled to tax breaks, which will enable you to reclaim a substantial portion of your tax dollar, dollars normally taken by the IRS. Tax laws that allow Network Marketers to garner substantial tax breaks are the same laws that benefit GM and IBM. The only difference between most Network Marketing businesses and these Fortune 500 entities in the eyes of the IRS is their size, and the fact that Network Marketers can also deduct many expenses from their homes and daily lives. If these expenses contribute to the success of their Network Marketing home-based business, then they are fully tax deductible!
Benefits Benefits of having a Home Based Business(HBB) in Network Marketing:
1. Reduce your Taxes
2. Claim all deductions even if you did not make any money with your business (The income you are earning can be from your job)
3. Option of getting a lot more money back just from the taxes taken from your paycheck at your job (this would still be your taxable income)
4. Get your money NOW instead of later.
5. A percentage back from your expense column (more tax refund)
How to Get a Raise on your Job by having a HBB in Network Marketing 1. Increase the number of your dependents (deductions) so you will be taxed on a lower income
2. Lower taxable income means you pay less in taxes at the end of the year then once you file your taxes be sure your deductions from your HBB exceeds your income from your deductions claimed.
3. Get more money back and get more money on your paycheck NOW.
Get your money FIRST Notice that as an Employee: an employee taxes are your first expense!!!!
• This means before YOU even get your check on your job the government already gets its cut out of it!
• So, when you get a raise on your job the government gets a raise which again is taken out before you get your money!
Notice as a Business Owner: a business owner taxes is your last expense!!!
• This means that after you have done all of our spending for your business, the government then comes and taxes what is left after that.
• As you can see this makes a big difference!!!!!
Scenarios:
Job w/o HBB
Vs.
Job w/HBB As you will see from the two scenarios below the way to reduce your taxable income is by having a home-based business.
• For each scenario there are two incomes to show the difference when making this amount of money.
• These charts deals with averages and all depends on your activity in the business.
• Compare the taxable income and the amount that would be paid out in taxes. This shows how much we are saving in the amount of taxes that we do not have to pay at the end of the year.
JOB WITHOUT HOME-BASED BUSINESS
INCOME DEDUCTIONS TAXABLE INC PAYMENTS
$30,000 $4,200 $25,800 $7,740
$100,000 $14,000 $86,000 $20,000
JOB WITH HOME-BASED BUSINESS
INCOME EXPENSES
(LIFESTYLE) DEDUCTIONS TAXABLE INC PAYMENTS
$30,000 $9,500 $14,400 $6,100 $864
$100,000 $67,000 $15,600 $17,400 $5,248
Example of Personal Expenses
1040/1040A Employee $40,000
TAXES $8,000 (FED)
$4,000 (STATE/FICA) - $12,000
HOUSING $1,000/Month - $12,000
UTILITIES Cable, Phone, Gas, Water, Electric, Internet -$4,800
TRANS $400/Mo (car note)
$100/Mo (Insurance) -$6,000
FOOD $20/Day x 365 -$7,300
Yearly Total of Expenses $42,100
Example of Business Expenses
Schedule C TNI IPC $40,000
MILES
(IRS Publication 463) $20,000 Miles @ 48.5 cents/mile -$9,700
HOME OFFICE
(IRS Publication 587) 25% of Mort./Rent -$3,000
UTILITIES
(IRS Publication 587) Cell Phone, Internet, Home Phone, etc -$1,600
KIDS
(IRS Publication 15) Age 7-18 -$5,150
MEALS/ENTERNMENT
(IRS Publication 463) $75 w/o Receipt -$8,300
Yearly Total of Expenses $27,750
Expenses One thing that you want to take notice of is that with having a HBB is that your expenses to maintain your lifestyle takes away from our taxable income.
Here is a list of expenses that you can claim:
• Car/Truck, repairs, Mileage, etc.
• Interest, Mortgages, Rent, household bills
• Office expenses (like flooring & carpeting) or Supplies
• Rent/Lease of equipment, cars, etc
• Travel, meals, entertainment, etc.
• Services such as legal issues, repairs, ads, etc.
• “Other” expenses such as telephone (i.e. Cell phone!), shipping, food, professional cleaning, materials, and hair/nail maintenance!!!
List goes on and on……….
Explanation for Deductions What's deductible in your ordinary lifestyle expenses when you own a Network Marketing business?
If you legitimately work your business engaged in the following actions, here's what's deductible. Check out the math and examples:
• Meals: when you discuss business at lunch or dinner with co-workers and friends, your meal is 50 percent tax deductible. Meals: $500: Lunch with co-workers is deductible (Hey, they're prospects!). $4/day times 250 work days = $1,000 x 50 percent deductible = $500
Explanation for Deductions (continued) • Entertainment: theater and sports event tickets, and other expenses relating to entertainment focused on building relationships with prospects, retail customers and down-line or up-line distributors. (Remember, by definition, everyone is a potential prospect or customer of your Network Marketing business!)
• Automobile mileage: is deductible between your home-based business office and a meeting where business is discussed, such as the meals mentioned above, or an opportunity meeting, or even a golf outing with friends who are prospects! Automobile mileages from your home office to day job or other places where you actively encounter prospects and actively discuss the product. (20 miles round trip to work x 250 days x 30 cents/mile).
• Health insurance for family (Spouse is an employee of your home-based business, who chooses to include you and kids on the plan. That's $16,000 Total tax-deductible expenses x 35% combined Federal and State tax rate = $5,600 cash refund from IRS on April 15th)
• Travel: is deductible -- be it to an industrial center or an island resort if the purpose is to hold an opportunity meeting, to discuss business with other travelers, or to attend a seminar.
• Spouse Travel: Your spouse's travel can even be deductible if their presence is helpful in closing the sale. Travel expenses for you and spouse to vacationland if you hold opportunity meetings (could be to the friends you are visiting) and your spouse participates.
• Children Wages: You can also deduct wages paid to your children for help in the business, and if those children are under 14 and have no other sources of income, all wages under $4,000 per year are tax free. It's a great way to help save for college with Uncle Sam's help! Tax free wages for two kids without other jobs who assist you in your Home-Based Business (2 kids x $4,000 per year paid to their savings accounts for college/weddings, etc.)
• Equipment: Home computers, fax machines, telephones, office supplies, and office furniture are also fully tax deductible. Home office deduction ($150/month) can be used for use of spare room in house out of which you operate your home-based business.
NOTE:
Requirement-- The IRS's only requirement is that you legitimately treat your Network Marketing business as a business not a hobby. That means regularly working your business. What counts as "regularly working" your business? Just taking the actions you are telling your down-line to take: attend weekly meetings, call prospects regularly, use the product, tell people about the product and, if successful, teach others to do the same.
You must Document Everything! You must document everything! Documentation is the key!
The IRS will recognize their right to their home-based business tax breaks
Only if they properly document their activities and expenses!
Documentation is a big word, but a simple process. It merely means writing down in your day planner all business-related activities, business- related expenses and any revenues you earn. Consistent record keeping will prove to the IRS (on the rare chance you have to) that you are truly running a business and not engaged in a hobby, whether or not it makes money.
Example of Documentation What do these records look like?
They're simple. Just writing down the persons you spoke with about the business, where you went in pursuit of your business, and what you spent in the ordinary course of conducting your business. If done in a regular and consistent manner, will provide you with proper documentation and a veritable sea of deductible business expenses!
Sure, it takes time to write down your business-related activities every day; but for a maximum investment of five minutes a day, the time spent record keeping is worth a minimum of $5,000 in tax savings. That's $240/hour of tax savings for the time you spent keeping track of your activities and expenses. A pretty good wage for simple record keeping!
Conclusion Success is fun and helping people achieve success is fun, but having the help of Uncle Sam is exhilarating. If the people you sponsor actively follow your guidance, they should make money; but even if they don't, they can still claim all the deductions.
Remember, to deduct the above expenses, you must be actively working your business in the lunches, trips, visits, etc. mentioned above, and be keeping proper records. If you are an active Network Marketer, this is not only perfectly legitimate, it's good business, AND it's a great reason to show your prospects why they need to know in their own Networking business, too!
I recommend that you consult your accountant and individual tax advisors in applying these concepts to your business.
Thursday, July 24, 2008
25 Books for Success, the Rest of the List
February 22, 2008 Categories: Business, Well-Being, Wealth
The Way of the Peaceful Warrior: A Book That Changes Lives
Dan Millman
(HJ Kramer, 2006)
The first of Dan Millman's writings, this book is an inspirational story based largely on his college years. The book delves into the notion that a person can be accomplished and successful without feeling alive or genuinely happy.
Millman learns "the way of the peaceful warrior" from a mysterious old man he names Socrates. His mentor leads him through a journey of self-discovery. The lessons the young man endures and later accepts are applicable for anyone searching for greater meaning in life.
Laws of Success
Napoleon Hill
(Combined Registry Co., 1966)
Twenty-six years of research, including interviews with more than 500 self-made millionaires, laid the foundation for this massive collection. After studying the methods and accomplishments of masterminds such as Thomas Edison, John D. Rockefeller, Henry Ford, Andrew Carnegie, Theodore Roosevelt and Alexander Graham Bell, Napoleon Hill compiled what he learned, offering it to the world as the Laws of Success.
More than theories for a book, Hill applied the precepts to his life and discovered immeasurable success. The book's size might seem intimidating, but Hill wrote so it could be taught to high school students, keeping the text rich but easy to understand. This personal-development guru paves the road to success with timeless wisdom.
Acres of Diamonds
Russell H. Conwell
(Filiquarian, 2007)
Opportunities for success, wealth and happiness often lie under foot and yet go unnoticed. This little book, originally a speech by Russell Conwell, serves as a reminder not to overlook the abundance right on our doorstep.
This timeless work is freely available online, in both written and audio formats, and addresses the myth that fame and fortune are waiting somewhere "out there." He also dispels the notion that men and women of integrity shouldn't desire money or wealth. "Money is power, and you ought to be reasonably ambitious to have it. You ought because you can do more good with it than you could without it," Conwell said. And to that end, he advises readers to begin searching for the diamonds in their lives… at home.
As a Man Thinketh
James Allen
(Filiquarian, 2007)
Published in 1902, "This little volume" as James Allen refers to it, has been a source of inspiration for millions and has influenced the work of many respected personal-development leaders. And with statements such as, "The soul attracts that which it secretly harbors, that which it loves, and also that which it fears," Allen paved the way for many contemporary philosophers.
At its core is the belief that "as a man thinketh in his heart, so is he." Allen uses eloquent period language to bring readers to the realization that thoughts and character are inseparably intertwined. Equally as important is the lesson of personal responsibility taking precedence over thoughts and actions. He prescribes focused time to reflect and discover yourself and your dreams, and to put forth energy and time to make those dreams reality. This book, now in the public domain and freely accessible on the Internet, should be in every achiever's library.
Maximum Achievement
Brian Tracy
(Simon & Schuster, 1995)
As suggested by this book's subtitle, "Strategies and skills that will unlock your hidden powers to succeed," it's likely you already possess what's required to create success in your life. Those who apply these strategies provided by Brian Tracy can make changes that quickly produce results.
Learn how to create success that encompasses every area of life-health, personal and professional happiness, relationships and wealth. Whether you're already on the road to success or just getting started on your success journey, the principles outlined in the book will help you realize your true potential. Build the life you want and attain the peace of mind that comes with the knowledge that you control your destiny.
The Seasons of Life
Jim Rohn & Ronald Reynolds
(Jim Rohn International, 1981)
In The Seasons of Life, Jim Rohn and Ronald Reynolds draw parallels between life and the changing seasons. When you learn that change is the only guarantee, you can make the most of each season as it comes into your life.
It's possible to learn and grow from every experience. The authors help readers understand that every season is necessary and valuable-even winter, when life seems harsh and your actions unfruitful.
See You at the Top
Zig Ziglar
(Pelican Publishing Company, 2000)
There's room for you at the top! Zig Ziglar's message has inspired millions to change their lives by helping them do, be and have more than they dared dream possible.
Ziglar offers a nuts-and-bolts approach to developing the self-image, attitudes and habits that make people successful. Learn how to set and achieve goals, how to create momentum that propels you forward in life and why being focused on others is a critical aspect of success. This step-by-step guide will help you excel in every area of life.
The Magic of Thinking Big
David J. Schwartz
(Pocket Books, 1995)
Thinking big separates the achievers from the average. In this best-selling classic, David Schwartz suggests that it's not necessarily intelligence or work ethic that move people up the ladder of success, but the personal choice people make to believe that something bigger and better is possible.
Make time to reflect on your life's goals and expand them. Once you have a clear picture of what you want, focus your energy on achieving that goal. Keep your eyes fixed on your goal and do not allow the small thinking of the world around you to cloud your vision. Schwartz offers practical advice for putting the magic of thinking big to work in your life.
The Power of Positive Thinking
Norman Vincent Peale
(Fireside, 2007)
The belief that positive thoughts lead to a positive reality isn't a new phenomenon. Decades before The Secret, Norman Vincent Peale wrote The Power of Positive Thinking. The book teaches readers that focused, intentional and unyielding belief is required before they can achieve the lives they desire.
The philosophies from this best-selling book have helped millions reach their personal, financial, spiritual and relationship goals. Learn to replace negative thoughts with positive beliefs and to break the worry habit by cultivating a character that isn't swayed by circumstances.
Awaken the Giant Within
Anthony Robbins
(Free Press, 1992)
Within each person is a sleeping giant of greatness. With this book, motivational coach Anthony Robbins seeks to help you "take immediate control of mental, emotional, physical and financial destiny."
Not one to do things in a small way, Robbins found huge success, lost it all and then, using the techniques outlined in this book, took control of his life and his success. This personal-development classic delves into the specifics of goal-setting, achieving success in relationships, talking to yourself and discovering your true potential.
Developing the Leader Within You
John C. Maxwell
(Thomas Nelson, 2005)
Developing the Leader Within You makes the theories of leadership personal. For those struggling to take the next step in their careers or who doubt their leadership abilities, the book offers practical methods for developing leadership skills.
Recognizing that some people have innate leadership-personality traits, the book provides direction for becoming more effective. But John Maxwell's book debunks the myth that only an exclusive few are born to be leaders. Instead, he suggests that everyone benefits from learning self-discipline, seeking mentors and adding to their skills through training.
Maxwell defines leadership as influence and points out that a management title isn't a prerequisite. Regardless of your career, position or personality, learn how to become an effective leader.
The One Minute Manager
Kenneth Blanchard
(HarperCollins Business, 2000)
Apply the principals taught in The One Minute Manager and watch your team's productivity and job satisfaction grow. This allegorical tale pulls together the wisdom gained through experience, allowing readers to prosper without making their predecessors' mistakes.
The One Minute management style allows leaders to be efficient and effective with their time. The short chapters in this easy read focus on interaction between managers and their teams. By setting goals that encourage, redirecting, reprimanding and praising appropriately, leaders can get more from their teams while earning their respect.
Good to Great: Why Some Companies Make the Leap... and Others Don't
Jim Collins
(Collins, 2001)
If good is the enemy of great, can good companies become great? And if so, how is that transition made with lasting effect? These are some of the questions central to the research that led to the publication of Good to Great.
Five years of investigation uncovered the characteristics that made uncommonly great companies outshine their competition and earn significantly higher profits. Comparing the differentiating traits of good companies and their great counterparts, Jim Collins and his research team learned that, among other things, leaders who willingly work with their heads and hearts, rather than their egos, are required to take a company from good to great. Such leaders create the foundation for the culture and sustainable results that propel an organization to excellence.
The Automatic Millionaire
David Bach
(Broadway, 2003)
Who wouldn't want to become a millionaire automatically? The truths related in this book, as in Bach's Finish Rich series, are that nothing great is accomplished without forethought. But with a little planning and by putting many aspects of your finances on autopilot, you can be on the road to wealth.
The automatic aspect plan allows readers to save time while saving money. And though many of the principles aren't new, Bach's easy-to-understand approach helps the reader understand them in a new way. Some of the highlights include principles such as paying yourself first, and advice about why and how to save for retirement-even if you're hard-pressed to make ends meet now. Bach also provides advice for accomplishing short-term savings goals and explains that giving is an important part of wealth.
Rich Dad Poor Dad
Robert T. Kiyosaki
(Time Warner Paperbacks, 2002)
The paradigm shift related to work, employment and entrepreneurship has been a long time coming. In one of his most-read books, Rich Dad Poor Dad, Robert Kiyosaki reveals the value of taking control of your financial destiny through entrepreneurship and investing.
In Rich Dad Poor Dad, Kiyosaki contrasts the differences between what the rich and the poor or middle classes teach their children. As a young man, Kiyosaki was taught by his "poor dad" to follow the path of least resistance: Get an education, get a job and work hard. His "rich dad," his friend's dad, mentored him to do the opposite. The book acknowledges education is important but it isn't always best received in a formal learning environment. Lessons include the value of self-employment, how to be self-employed without limiting yourself to the constraints of an employee, and how to create and take advantage of residual-income opportunities. Instead of working hard for money, use the principles in this book to make money work for you.
The Greatest Salesman in the World
Og Mandino
(Frederick Fell Publishers, 2001)
Ten ancient scrolls hold the key to wealth and happiness in this classic parable. A young camel boy wishing to improve his station in life takes his master's words to heart: "No other trade or profession has more opportunity for one to rise from poverty to great wealth than that of a salesman." Desiring success and wealth, the young man sets out to become the greatest salesman in the world.
This pocket-sized book can be read easily in an hour, but it's packed with wisdom for those pursuing a career in sales. Far more than a how-to book on closing the sale, the story encourages the reader to contribute to society and to grow in peace of mind and in heart. Those who apply the principles in the scrolls will learn how to overcome the challenges of sales, how to persist through trials and, ultimately, how to succeed.
The Sales Bible
Jeffrey Gitomer
(Wiley, 2003)
Jeffrey Gitomer has an extremely low tolerance for lamenting salespeople and that comes through in the bold and fast-paced tone of his books. The Sales Bible puts more than 100 sales facts, tips and solutions at your disposal to help you "make sales while others are whining!"
This book magnifies the details of every aspect of sales. Learn the basics and understand how recent changes in selling affect you and your pitch. Discover the keys to setting yourself apart from the competition and finding your prospect's button. The table of contents is designed to help you quickly identify specific topics. Or just start reading from cover to cover for an excellent education from someone who knows the profession from the inside out.
Who Moved My Cheese?
Dr. Spencer Johnson
(Vermilion, 2002)
For many people, change can be challenging. It can cause fear, anger and the feeling of being out of control. This popular parable examines change and what happens to those who choose not to embrace it.
"If you do not change, you can become extinct," is one of the many truisms the characters learn in Who Moved My Cheese? What's holding you back? Are you taking note of small changes that could lead to more significant changes in the future? In the maze of life, it's possible to successfully deal with change if and when you clear your mind of expectations and understand that while your comfort zone may be cozy, it's not necessarily the safest place to live.
Chicken Soup for the Soul series
Jack Canfield and Mark Victor Hansen, with other contributors
(Health Communications Inc., 1993-2008)
Need inspiration? The phenomenal success of Chicken Soup for the Soul offers inspiration on many levels. From the tenacity it took to get the first Chicken Soup for the Soul published (Jack Canfield and Mark Victor Hansen were rejected by 140 publishers and their book agent before finding a publisher willing to take a chance on their idea) to the thousands of touching and thought-provoking stories, these books will warm your heart and may help you view life from a new perspective.
The original Chicken Soup for the Soul went to the top of the best-seller list in less than a year. Today, one or more of the Chicken Soup books is consistently listed on the New York Times and other major best-sellers lists.
As an entrepreneur, parent or business leader, staying at the top or your game requires regular jolts of passion and healthy doses of laughter. Find both by picking up a copy on a topic that interests you. With more than 170 titles in the series, you're sure to find one that inspires you.
Success through a Positive Mental Attitude
Napoleon Hill and W. Clement Stone
(Pocket Books, 1991)
Success through a Positive Mental Attitude was first published in 1960, written by two of history's greatest personal-development leaders, Napoleon Hill and W. Clement Stone. For almost half a century, this book has been the launching point for those who want to change the direction of their lives.
Hill and Stone recognize that each person has their own definition of success. But whether your desire is to build great wealth, own profitable organizations or be a world-renowned artist, the authors point out, "You have everything to gain and nothing to lose by trying. Success is achieved and maintained by those who keep trying with a [positive mental attitude]."
This book addresses all areas of life. From getting the job you want to building better relationships with those around you to living healthier longer (Stone lived to be 100 years old!), this book takes an inclusive approach to success, beginning with your state of mind.
Why a must-read? When you're looking for advice on how to create a successful and rewarding life, why not get the answers from those who have "been there, done that?" These thought leaders and business experts used the principles of positive mental attitude and experienced a lifetime of rewards.
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Great List
March 17, 2008 5:20 AM
I have had the opportunity to read a lot of the books listed here. They are movng and inspiring. Thanks Success, the rest of the list gives me a fantastic resource to best of the best!
"Think and grow rich a Black choice
May 4, 2008 2:22 PM
Think and grow rich a black choice is my favorite. It was authored by Dennis Kimbro, and the N. hill Foundation, started by N. Hill before his death.
The Way of the Peaceful Warrior: A Book That Changes Lives
Dan Millman
(HJ Kramer, 2006)
The first of Dan Millman's writings, this book is an inspirational story based largely on his college years. The book delves into the notion that a person can be accomplished and successful without feeling alive or genuinely happy.
Millman learns "the way of the peaceful warrior" from a mysterious old man he names Socrates. His mentor leads him through a journey of self-discovery. The lessons the young man endures and later accepts are applicable for anyone searching for greater meaning in life.
Laws of Success
Napoleon Hill
(Combined Registry Co., 1966)
Twenty-six years of research, including interviews with more than 500 self-made millionaires, laid the foundation for this massive collection. After studying the methods and accomplishments of masterminds such as Thomas Edison, John D. Rockefeller, Henry Ford, Andrew Carnegie, Theodore Roosevelt and Alexander Graham Bell, Napoleon Hill compiled what he learned, offering it to the world as the Laws of Success.
More than theories for a book, Hill applied the precepts to his life and discovered immeasurable success. The book's size might seem intimidating, but Hill wrote so it could be taught to high school students, keeping the text rich but easy to understand. This personal-development guru paves the road to success with timeless wisdom.
Acres of Diamonds
Russell H. Conwell
(Filiquarian, 2007)
Opportunities for success, wealth and happiness often lie under foot and yet go unnoticed. This little book, originally a speech by Russell Conwell, serves as a reminder not to overlook the abundance right on our doorstep.
This timeless work is freely available online, in both written and audio formats, and addresses the myth that fame and fortune are waiting somewhere "out there." He also dispels the notion that men and women of integrity shouldn't desire money or wealth. "Money is power, and you ought to be reasonably ambitious to have it. You ought because you can do more good with it than you could without it," Conwell said. And to that end, he advises readers to begin searching for the diamonds in their lives… at home.
As a Man Thinketh
James Allen
(Filiquarian, 2007)
Published in 1902, "This little volume" as James Allen refers to it, has been a source of inspiration for millions and has influenced the work of many respected personal-development leaders. And with statements such as, "The soul attracts that which it secretly harbors, that which it loves, and also that which it fears," Allen paved the way for many contemporary philosophers.
At its core is the belief that "as a man thinketh in his heart, so is he." Allen uses eloquent period language to bring readers to the realization that thoughts and character are inseparably intertwined. Equally as important is the lesson of personal responsibility taking precedence over thoughts and actions. He prescribes focused time to reflect and discover yourself and your dreams, and to put forth energy and time to make those dreams reality. This book, now in the public domain and freely accessible on the Internet, should be in every achiever's library.
Maximum Achievement
Brian Tracy
(Simon & Schuster, 1995)
As suggested by this book's subtitle, "Strategies and skills that will unlock your hidden powers to succeed," it's likely you already possess what's required to create success in your life. Those who apply these strategies provided by Brian Tracy can make changes that quickly produce results.
Learn how to create success that encompasses every area of life-health, personal and professional happiness, relationships and wealth. Whether you're already on the road to success or just getting started on your success journey, the principles outlined in the book will help you realize your true potential. Build the life you want and attain the peace of mind that comes with the knowledge that you control your destiny.
The Seasons of Life
Jim Rohn & Ronald Reynolds
(Jim Rohn International, 1981)
In The Seasons of Life, Jim Rohn and Ronald Reynolds draw parallels between life and the changing seasons. When you learn that change is the only guarantee, you can make the most of each season as it comes into your life.
It's possible to learn and grow from every experience. The authors help readers understand that every season is necessary and valuable-even winter, when life seems harsh and your actions unfruitful.
See You at the Top
Zig Ziglar
(Pelican Publishing Company, 2000)
There's room for you at the top! Zig Ziglar's message has inspired millions to change their lives by helping them do, be and have more than they dared dream possible.
Ziglar offers a nuts-and-bolts approach to developing the self-image, attitudes and habits that make people successful. Learn how to set and achieve goals, how to create momentum that propels you forward in life and why being focused on others is a critical aspect of success. This step-by-step guide will help you excel in every area of life.
The Magic of Thinking Big
David J. Schwartz
(Pocket Books, 1995)
Thinking big separates the achievers from the average. In this best-selling classic, David Schwartz suggests that it's not necessarily intelligence or work ethic that move people up the ladder of success, but the personal choice people make to believe that something bigger and better is possible.
Make time to reflect on your life's goals and expand them. Once you have a clear picture of what you want, focus your energy on achieving that goal. Keep your eyes fixed on your goal and do not allow the small thinking of the world around you to cloud your vision. Schwartz offers practical advice for putting the magic of thinking big to work in your life.
The Power of Positive Thinking
Norman Vincent Peale
(Fireside, 2007)
The belief that positive thoughts lead to a positive reality isn't a new phenomenon. Decades before The Secret, Norman Vincent Peale wrote The Power of Positive Thinking. The book teaches readers that focused, intentional and unyielding belief is required before they can achieve the lives they desire.
The philosophies from this best-selling book have helped millions reach their personal, financial, spiritual and relationship goals. Learn to replace negative thoughts with positive beliefs and to break the worry habit by cultivating a character that isn't swayed by circumstances.
Awaken the Giant Within
Anthony Robbins
(Free Press, 1992)
Within each person is a sleeping giant of greatness. With this book, motivational coach Anthony Robbins seeks to help you "take immediate control of mental, emotional, physical and financial destiny."
Not one to do things in a small way, Robbins found huge success, lost it all and then, using the techniques outlined in this book, took control of his life and his success. This personal-development classic delves into the specifics of goal-setting, achieving success in relationships, talking to yourself and discovering your true potential.
Developing the Leader Within You
John C. Maxwell
(Thomas Nelson, 2005)
Developing the Leader Within You makes the theories of leadership personal. For those struggling to take the next step in their careers or who doubt their leadership abilities, the book offers practical methods for developing leadership skills.
Recognizing that some people have innate leadership-personality traits, the book provides direction for becoming more effective. But John Maxwell's book debunks the myth that only an exclusive few are born to be leaders. Instead, he suggests that everyone benefits from learning self-discipline, seeking mentors and adding to their skills through training.
Maxwell defines leadership as influence and points out that a management title isn't a prerequisite. Regardless of your career, position or personality, learn how to become an effective leader.
The One Minute Manager
Kenneth Blanchard
(HarperCollins Business, 2000)
Apply the principals taught in The One Minute Manager and watch your team's productivity and job satisfaction grow. This allegorical tale pulls together the wisdom gained through experience, allowing readers to prosper without making their predecessors' mistakes.
The One Minute management style allows leaders to be efficient and effective with their time. The short chapters in this easy read focus on interaction between managers and their teams. By setting goals that encourage, redirecting, reprimanding and praising appropriately, leaders can get more from their teams while earning their respect.
Good to Great: Why Some Companies Make the Leap... and Others Don't
Jim Collins
(Collins, 2001)
If good is the enemy of great, can good companies become great? And if so, how is that transition made with lasting effect? These are some of the questions central to the research that led to the publication of Good to Great.
Five years of investigation uncovered the characteristics that made uncommonly great companies outshine their competition and earn significantly higher profits. Comparing the differentiating traits of good companies and their great counterparts, Jim Collins and his research team learned that, among other things, leaders who willingly work with their heads and hearts, rather than their egos, are required to take a company from good to great. Such leaders create the foundation for the culture and sustainable results that propel an organization to excellence.
The Automatic Millionaire
David Bach
(Broadway, 2003)
Who wouldn't want to become a millionaire automatically? The truths related in this book, as in Bach's Finish Rich series, are that nothing great is accomplished without forethought. But with a little planning and by putting many aspects of your finances on autopilot, you can be on the road to wealth.
The automatic aspect plan allows readers to save time while saving money. And though many of the principles aren't new, Bach's easy-to-understand approach helps the reader understand them in a new way. Some of the highlights include principles such as paying yourself first, and advice about why and how to save for retirement-even if you're hard-pressed to make ends meet now. Bach also provides advice for accomplishing short-term savings goals and explains that giving is an important part of wealth.
Rich Dad Poor Dad
Robert T. Kiyosaki
(Time Warner Paperbacks, 2002)
The paradigm shift related to work, employment and entrepreneurship has been a long time coming. In one of his most-read books, Rich Dad Poor Dad, Robert Kiyosaki reveals the value of taking control of your financial destiny through entrepreneurship and investing.
In Rich Dad Poor Dad, Kiyosaki contrasts the differences between what the rich and the poor or middle classes teach their children. As a young man, Kiyosaki was taught by his "poor dad" to follow the path of least resistance: Get an education, get a job and work hard. His "rich dad," his friend's dad, mentored him to do the opposite. The book acknowledges education is important but it isn't always best received in a formal learning environment. Lessons include the value of self-employment, how to be self-employed without limiting yourself to the constraints of an employee, and how to create and take advantage of residual-income opportunities. Instead of working hard for money, use the principles in this book to make money work for you.
The Greatest Salesman in the World
Og Mandino
(Frederick Fell Publishers, 2001)
Ten ancient scrolls hold the key to wealth and happiness in this classic parable. A young camel boy wishing to improve his station in life takes his master's words to heart: "No other trade or profession has more opportunity for one to rise from poverty to great wealth than that of a salesman." Desiring success and wealth, the young man sets out to become the greatest salesman in the world.
This pocket-sized book can be read easily in an hour, but it's packed with wisdom for those pursuing a career in sales. Far more than a how-to book on closing the sale, the story encourages the reader to contribute to society and to grow in peace of mind and in heart. Those who apply the principles in the scrolls will learn how to overcome the challenges of sales, how to persist through trials and, ultimately, how to succeed.
The Sales Bible
Jeffrey Gitomer
(Wiley, 2003)
Jeffrey Gitomer has an extremely low tolerance for lamenting salespeople and that comes through in the bold and fast-paced tone of his books. The Sales Bible puts more than 100 sales facts, tips and solutions at your disposal to help you "make sales while others are whining!"
This book magnifies the details of every aspect of sales. Learn the basics and understand how recent changes in selling affect you and your pitch. Discover the keys to setting yourself apart from the competition and finding your prospect's button. The table of contents is designed to help you quickly identify specific topics. Or just start reading from cover to cover for an excellent education from someone who knows the profession from the inside out.
Who Moved My Cheese?
Dr. Spencer Johnson
(Vermilion, 2002)
For many people, change can be challenging. It can cause fear, anger and the feeling of being out of control. This popular parable examines change and what happens to those who choose not to embrace it.
"If you do not change, you can become extinct," is one of the many truisms the characters learn in Who Moved My Cheese? What's holding you back? Are you taking note of small changes that could lead to more significant changes in the future? In the maze of life, it's possible to successfully deal with change if and when you clear your mind of expectations and understand that while your comfort zone may be cozy, it's not necessarily the safest place to live.
Chicken Soup for the Soul series
Jack Canfield and Mark Victor Hansen, with other contributors
(Health Communications Inc., 1993-2008)
Need inspiration? The phenomenal success of Chicken Soup for the Soul offers inspiration on many levels. From the tenacity it took to get the first Chicken Soup for the Soul published (Jack Canfield and Mark Victor Hansen were rejected by 140 publishers and their book agent before finding a publisher willing to take a chance on their idea) to the thousands of touching and thought-provoking stories, these books will warm your heart and may help you view life from a new perspective.
The original Chicken Soup for the Soul went to the top of the best-seller list in less than a year. Today, one or more of the Chicken Soup books is consistently listed on the New York Times and other major best-sellers lists.
As an entrepreneur, parent or business leader, staying at the top or your game requires regular jolts of passion and healthy doses of laughter. Find both by picking up a copy on a topic that interests you. With more than 170 titles in the series, you're sure to find one that inspires you.
Success through a Positive Mental Attitude
Napoleon Hill and W. Clement Stone
(Pocket Books, 1991)
Success through a Positive Mental Attitude was first published in 1960, written by two of history's greatest personal-development leaders, Napoleon Hill and W. Clement Stone. For almost half a century, this book has been the launching point for those who want to change the direction of their lives.
Hill and Stone recognize that each person has their own definition of success. But whether your desire is to build great wealth, own profitable organizations or be a world-renowned artist, the authors point out, "You have everything to gain and nothing to lose by trying. Success is achieved and maintained by those who keep trying with a [positive mental attitude]."
This book addresses all areas of life. From getting the job you want to building better relationships with those around you to living healthier longer (Stone lived to be 100 years old!), this book takes an inclusive approach to success, beginning with your state of mind.
Why a must-read? When you're looking for advice on how to create a successful and rewarding life, why not get the answers from those who have "been there, done that?" These thought leaders and business experts used the principles of positive mental attitude and experienced a lifetime of rewards.
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Great List
March 17, 2008 5:20 AM
I have had the opportunity to read a lot of the books listed here. They are movng and inspiring. Thanks Success, the rest of the list gives me a fantastic resource to best of the best!
"Think and grow rich a Black choice
May 4, 2008 2:22 PM
Think and grow rich a black choice is my favorite. It was authored by Dennis Kimbro, and the N. hill Foundation, started by N. Hill before his death.
Monday, July 21, 2008
More people are tapping their 401(k) for cash
They’re mortgaging their future in order to keep up their lifestyle
The Associated Press, Tues., Feb. 19, 2008
Trent Charlton knew the risks when he borrowed $10,000 from his 401(k) and cut his retirement savings in half.
But Charlton, a 40-year-old account executive at an Irvine, Calif., trucking company, said he had little choice because he and his wife could not keep up with monthly expenses after American Express reduced the limits on three credit cards.
As home prices fall and banks tighten lending standards, more people are doing the same thing: raiding their retirement savings just to get by and spending their nest eggs to gas up SUVs, pay mortgages or put food on the table.
But dipping into 401(k) accounts can carry risks because defaulted loans and hardship withdrawals are taxed as income and are subject to a 10 percent penalty if the worker is under 59 1/2 years old. That means if the trend grows, many Americans will risk coming up short on retirement savings or may have to rely on an overburdened Social Security system.
"People who take out a loan or withdrawal are adding to a looming retirement crisis over the next 30 to 40 years," said Eric Levy, a partner at global consulting firm Mercer. "And what implications will that have (for) our economy?"
Some of the nation's largest retirement plan administrators, such as Great-West Retirement Services and Fidelity Investments, are seeing double-digit spikes in hardship withdrawals and increases in loan requests, a sharp departure from levels that traditionally varied little.
Administrators say consumers are using retirement savings to pay for unmanageable mortgages, maxed-out credit cards, and costly utilities and groceries.
Charlton and his wife used the retirement money and $7,000 from savings to pay down their credit card debt. They also cut monthly expenses by pawning a diamond ring and selling camera equipment he owed money on. And he's looking for someone to take over his $550 monthly payment on a gray BMW 335i he leased last April.
Charlton said his goal is to pay off the 401(k) loan in two years. He has not decided whether he will contribute to the plan during that time.
"I made the best decision I could," he said. "I keep hearing about bankrupting your future retirement. But I feel like it's far enough away that I'll be able to save up enough."
Charlton's predicament arose as lenders are taking steps to rein in credit because more consumers are missing payments on mortgages, credit cards and loans. Borrowers are finding their credit limits suddenly reduced and low-interest cards hard to come by. Mortgage lenders have also reduced limits on home-equity lines of credit.
Meanwhile, jobs are harder to find, and consumers are getting pinched by higher food and fuel prices.
Consumers who tap their retirement accounts can take a loan from their 401(k) accounts worth up to $50,000, or 50 percent of the amount invested, whichever is less. There are no tax consequences for a loan in good standing. But if a borrower defaults, the loan is considered a withdrawal and subject to the same tax penalties.
If Charlton repays his loan and continues making contributions, his account balance at 62 will be nearly the same as if he had not borrowed, according to projections by Alicia Munnell, director of The Center for Retirement Research at Boston College.
But if he repays the loan and suspends contributions for five years, his final account balance would fall by 18 percent.
Based on current savings rates, the center estimates that 43 percent of households risk not being able to fund the same standard of living during retirement as they have in their working years. That percentage increases to 49 percent for Americans between 36 and 43 whose main retirement plans are 401(k) accounts, not employer-funded pension plans like older generations.
Some plans don't allow workers to make contributions while making payments on loans. Others require workers to wait a set time before contributing again after taking a withdrawal. If the employer matches contributions, workers are taking a double hit.
"The idea of paying yourself back is not necessarily a plus," said Charlie Nelson, a senior vice president at Great-West Retirement Services. "For a loan, you're paying back using after-tax dollars, so generally, over time, you won't earn as much."
Great-West Retirement Services, the unit of a Colorado-based insurance company that manages 3.5 million accounts for employers, said hardship withdrawals jumped 14 percent last year, and the number of loans rose almost 13 percent, with a dramatic increase occurring in the fourth quarter.
Fidelity Investments, which jockeys with Vanguard Group as the nation's largest mutual fund provider, said it saw withdrawals surge 17 percent in 2007, with record withdrawals in December, but a smaller increase in loans. Vanguard saw no change.
"What we're talking about is people spending their retirement now and lowering their standard of living when they retire ... People aren't willing to make some of the tougher choices in the short-term to make a better future for themselves," said Stuart Ritter, a certified financial planner with T. Rowe Price.
In the last three decades, 401(k)s have replaced traditional pension plans as employers' preferred retirement offering, which has shifted the responsibility of saving to employees from employers. Only 32 percent of workers ages 36 to 43 have any coverage by a pension plan.
If Americans find they didn't save enough, they may have to work longer and shorten their "golden years" of retirement, Munnell said. Otherwise, workers will have to cut corners and settle for a frugal retirement.
Theresa Perry, who manages benefits for the firm PinkSlip LLC in San Francisco Bay, said she's been surprised by the number of people using hardship withdrawals to make payments on so-called "piggyback" loans, which are home-equity loans wrapped with a first mortgage to allow borrowers to fully finance a home's value.
"I've been doing benefits administration for 15 years and using 401(k)s to keep mortgage payments under control is new to me," Perry said. "They're not taking money out to purchase homes anymore. They're taking money out to keep the home they already have."
Ritter worries that unaffordable mortgages or other financial troubles will persist for many consumers, even after they have tapped retirement funds.
"That's not a smart strategy. You don't want to apply a short-term fix to a long-term issue," he said.
But for Americans who are struggling to keep afloat in a slumping economy, today's money problems are more urgent than a far-off retirement date.
Said Charlton: "We have to take care of ourselves now and put retirement on the back burner."
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
URL: http://www.msnbc.msn.com/id/23241606/
MSN Privacy . Legal
© 2008 MSNBC.com
The Associated Press, Tues., Feb. 19, 2008
Trent Charlton knew the risks when he borrowed $10,000 from his 401(k) and cut his retirement savings in half.
But Charlton, a 40-year-old account executive at an Irvine, Calif., trucking company, said he had little choice because he and his wife could not keep up with monthly expenses after American Express reduced the limits on three credit cards.
As home prices fall and banks tighten lending standards, more people are doing the same thing: raiding their retirement savings just to get by and spending their nest eggs to gas up SUVs, pay mortgages or put food on the table.
But dipping into 401(k) accounts can carry risks because defaulted loans and hardship withdrawals are taxed as income and are subject to a 10 percent penalty if the worker is under 59 1/2 years old. That means if the trend grows, many Americans will risk coming up short on retirement savings or may have to rely on an overburdened Social Security system.
"People who take out a loan or withdrawal are adding to a looming retirement crisis over the next 30 to 40 years," said Eric Levy, a partner at global consulting firm Mercer. "And what implications will that have (for) our economy?"
Some of the nation's largest retirement plan administrators, such as Great-West Retirement Services and Fidelity Investments, are seeing double-digit spikes in hardship withdrawals and increases in loan requests, a sharp departure from levels that traditionally varied little.
Administrators say consumers are using retirement savings to pay for unmanageable mortgages, maxed-out credit cards, and costly utilities and groceries.
Charlton and his wife used the retirement money and $7,000 from savings to pay down their credit card debt. They also cut monthly expenses by pawning a diamond ring and selling camera equipment he owed money on. And he's looking for someone to take over his $550 monthly payment on a gray BMW 335i he leased last April.
Charlton said his goal is to pay off the 401(k) loan in two years. He has not decided whether he will contribute to the plan during that time.
"I made the best decision I could," he said. "I keep hearing about bankrupting your future retirement. But I feel like it's far enough away that I'll be able to save up enough."
Charlton's predicament arose as lenders are taking steps to rein in credit because more consumers are missing payments on mortgages, credit cards and loans. Borrowers are finding their credit limits suddenly reduced and low-interest cards hard to come by. Mortgage lenders have also reduced limits on home-equity lines of credit.
Meanwhile, jobs are harder to find, and consumers are getting pinched by higher food and fuel prices.
Consumers who tap their retirement accounts can take a loan from their 401(k) accounts worth up to $50,000, or 50 percent of the amount invested, whichever is less. There are no tax consequences for a loan in good standing. But if a borrower defaults, the loan is considered a withdrawal and subject to the same tax penalties.
If Charlton repays his loan and continues making contributions, his account balance at 62 will be nearly the same as if he had not borrowed, according to projections by Alicia Munnell, director of The Center for Retirement Research at Boston College.
But if he repays the loan and suspends contributions for five years, his final account balance would fall by 18 percent.
Based on current savings rates, the center estimates that 43 percent of households risk not being able to fund the same standard of living during retirement as they have in their working years. That percentage increases to 49 percent for Americans between 36 and 43 whose main retirement plans are 401(k) accounts, not employer-funded pension plans like older generations.
Some plans don't allow workers to make contributions while making payments on loans. Others require workers to wait a set time before contributing again after taking a withdrawal. If the employer matches contributions, workers are taking a double hit.
"The idea of paying yourself back is not necessarily a plus," said Charlie Nelson, a senior vice president at Great-West Retirement Services. "For a loan, you're paying back using after-tax dollars, so generally, over time, you won't earn as much."
Great-West Retirement Services, the unit of a Colorado-based insurance company that manages 3.5 million accounts for employers, said hardship withdrawals jumped 14 percent last year, and the number of loans rose almost 13 percent, with a dramatic increase occurring in the fourth quarter.
Fidelity Investments, which jockeys with Vanguard Group as the nation's largest mutual fund provider, said it saw withdrawals surge 17 percent in 2007, with record withdrawals in December, but a smaller increase in loans. Vanguard saw no change.
"What we're talking about is people spending their retirement now and lowering their standard of living when they retire ... People aren't willing to make some of the tougher choices in the short-term to make a better future for themselves," said Stuart Ritter, a certified financial planner with T. Rowe Price.
In the last three decades, 401(k)s have replaced traditional pension plans as employers' preferred retirement offering, which has shifted the responsibility of saving to employees from employers. Only 32 percent of workers ages 36 to 43 have any coverage by a pension plan.
If Americans find they didn't save enough, they may have to work longer and shorten their "golden years" of retirement, Munnell said. Otherwise, workers will have to cut corners and settle for a frugal retirement.
Theresa Perry, who manages benefits for the firm PinkSlip LLC in San Francisco Bay, said she's been surprised by the number of people using hardship withdrawals to make payments on so-called "piggyback" loans, which are home-equity loans wrapped with a first mortgage to allow borrowers to fully finance a home's value.
"I've been doing benefits administration for 15 years and using 401(k)s to keep mortgage payments under control is new to me," Perry said. "They're not taking money out to purchase homes anymore. They're taking money out to keep the home they already have."
Ritter worries that unaffordable mortgages or other financial troubles will persist for many consumers, even after they have tapped retirement funds.
"That's not a smart strategy. You don't want to apply a short-term fix to a long-term issue," he said.
But for Americans who are struggling to keep afloat in a slumping economy, today's money problems are more urgent than a far-off retirement date.
Said Charlton: "We have to take care of ourselves now and put retirement on the back burner."
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
URL: http://www.msnbc.msn.com/id/23241606/
MSN Privacy . Legal
© 2008 MSNBC.com
Reach Out and Sponsor
How to recruit new prospects nationwide
By Michael L. Sheffield | October 02, 2000
Q: I'm new to network marketing and want to really build my business. Most of my prospects live too far away for me to go see them. What's the best way to recruit them? I don't have the money to fly to see people all over the country.
A: In the MLM business, what you're referring to is called "long distance sponsoring." This form of recruiting is critical to the success of today's technologically empowered organization builder. With many of today's companies offering worldwide sponsoring potential, knowing how to communicate a compelling long distance message can substantially impact your profits.
A forward-thinking company already has many of the tools needed to assist you. These consist of brochures, audio and video tapes, and other leave-behind pieces or direct-mail pieces. Unfortunately, nondiscriminent use of these recruiting tools can be expensive and means it's difficult to measure the results. Most companies also support distributors through company-sponsored national conference calls and fax-on-demand systems. Probably the two most important tools used today by successful business builders are the telephone and the Internet. With the competitive cost of long distance services and the increase in prospects who are online at their home and office, these are the areas to which you should direct most of your long distance sponsoring efforts.
Long distance sponsoring consists of two approaches. First, you have to work your "warm market." These are the people with whom you already have a relationship and who are usually open to your message. The second area consists of the people you don't know personally but who need to hear about your opportunity. Herein lies your biggest opportunity.
Working with your warm market is easy since your personal relationship assures an increased opportunity for a positive telephone interaction. However, having a concise and compelling phone presentation is still important. Your warm market contacts will receive you well but may turn cold to a recruiting pitch if you don't approach things correctly. Working with your "cold market" (all those strangers) is a bit different and requires some additional skills.
No matter what type of prospect your long distance prospect is, for the best success I recommend using the buddy system of sponsoring. Not everyone is a sales "closer" (someone who knows how to get a prospect to say yes to a sales offer). It takes experience and, to a great extent, instinct to do this well. Using a team approach works best. In typical network marketing situations, a new distributor will set up a personal appointment with a prospect and take their sponsor, or a skilled upline member, to the meeting with them to assist in the close. It's a form of on-the-job training.
Initiating long distance sponsoring uses these same two-on-one dynamics during a three-way conference call between you, your sponsoring buddy and your prospect. It's critical that you have a conference call feature on your phone. It's not a very expensive add-on to your current phone service. And you'll use your company's Web site as an online product information and recruiting brochure to support your phone presentation during or after the fact.
Here's how to do it: Call your warm market friend and let them know you've started a new business and would like to explain the products to them. Mention that you'll need 10 to 15 minutes. Even if they're not interested, it will help you practice your sales presentation. If it's not a convenient time, set an appointment for later. When you make your appointed call, tell them your new business trainer is also on the line and make an introduction. Now your recruiting buddy can handle the presentation with you, staying silent unless asked to participate. Either during or after the call, you'll ask your prospect to go to the company Web site and look at your products and business information. Most companies allow prospects to enroll online. If not, faxing an application can work or, if necessary, you can mail literature and an application.
Even if your prospect makes a positive commitment during the phone call, you'll need to follow up within one or two days. Have something new to tell them that they didn't hear the night before. Begin building enthusiasm again. Start making plans with them for phone and Internet training, and commit them to the next national company conference call with a guest.
If they want to think it over, don't be discouraged. When you talk to them the next day, don't ask if they're ready to enroll; assume they are. Even after they've enrolled, they may have second thoughts. That's why you need to contact them several times over the next week to strengthen their decision and demonstrate your interest in their success. Long distance sponsoring will work for you if you work the system.
Michael L. Sheffield is the founder of Sheffield Resource Network, a full-service multilevel marketing consulting firm in Tempe, Arizona. He is also the co-founder and chair of the Multi Level Marketing International Association (MLMIA), whose members represent companies throughout the world.
By Michael L. Sheffield | October 02, 2000
Q: I'm new to network marketing and want to really build my business. Most of my prospects live too far away for me to go see them. What's the best way to recruit them? I don't have the money to fly to see people all over the country.
A: In the MLM business, what you're referring to is called "long distance sponsoring." This form of recruiting is critical to the success of today's technologically empowered organization builder. With many of today's companies offering worldwide sponsoring potential, knowing how to communicate a compelling long distance message can substantially impact your profits.
A forward-thinking company already has many of the tools needed to assist you. These consist of brochures, audio and video tapes, and other leave-behind pieces or direct-mail pieces. Unfortunately, nondiscriminent use of these recruiting tools can be expensive and means it's difficult to measure the results. Most companies also support distributors through company-sponsored national conference calls and fax-on-demand systems. Probably the two most important tools used today by successful business builders are the telephone and the Internet. With the competitive cost of long distance services and the increase in prospects who are online at their home and office, these are the areas to which you should direct most of your long distance sponsoring efforts.
Long distance sponsoring consists of two approaches. First, you have to work your "warm market." These are the people with whom you already have a relationship and who are usually open to your message. The second area consists of the people you don't know personally but who need to hear about your opportunity. Herein lies your biggest opportunity.
Working with your warm market is easy since your personal relationship assures an increased opportunity for a positive telephone interaction. However, having a concise and compelling phone presentation is still important. Your warm market contacts will receive you well but may turn cold to a recruiting pitch if you don't approach things correctly. Working with your "cold market" (all those strangers) is a bit different and requires some additional skills.
No matter what type of prospect your long distance prospect is, for the best success I recommend using the buddy system of sponsoring. Not everyone is a sales "closer" (someone who knows how to get a prospect to say yes to a sales offer). It takes experience and, to a great extent, instinct to do this well. Using a team approach works best. In typical network marketing situations, a new distributor will set up a personal appointment with a prospect and take their sponsor, or a skilled upline member, to the meeting with them to assist in the close. It's a form of on-the-job training.
Initiating long distance sponsoring uses these same two-on-one dynamics during a three-way conference call between you, your sponsoring buddy and your prospect. It's critical that you have a conference call feature on your phone. It's not a very expensive add-on to your current phone service. And you'll use your company's Web site as an online product information and recruiting brochure to support your phone presentation during or after the fact.
Here's how to do it: Call your warm market friend and let them know you've started a new business and would like to explain the products to them. Mention that you'll need 10 to 15 minutes. Even if they're not interested, it will help you practice your sales presentation. If it's not a convenient time, set an appointment for later. When you make your appointed call, tell them your new business trainer is also on the line and make an introduction. Now your recruiting buddy can handle the presentation with you, staying silent unless asked to participate. Either during or after the call, you'll ask your prospect to go to the company Web site and look at your products and business information. Most companies allow prospects to enroll online. If not, faxing an application can work or, if necessary, you can mail literature and an application.
Even if your prospect makes a positive commitment during the phone call, you'll need to follow up within one or two days. Have something new to tell them that they didn't hear the night before. Begin building enthusiasm again. Start making plans with them for phone and Internet training, and commit them to the next national company conference call with a guest.
If they want to think it over, don't be discouraged. When you talk to them the next day, don't ask if they're ready to enroll; assume they are. Even after they've enrolled, they may have second thoughts. That's why you need to contact them several times over the next week to strengthen their decision and demonstrate your interest in their success. Long distance sponsoring will work for you if you work the system.
Michael L. Sheffield is the founder of Sheffield Resource Network, a full-service multilevel marketing consulting firm in Tempe, Arizona. He is also the co-founder and chair of the Multi Level Marketing International Association (MLMIA), whose members represent companies throughout the world.
Building Your MLM Business
Struggling with the overwhelming details of your new business? We'll show you how to take it step by step.
By Michael L. Sheffield | September 04, 2000
Q: I'm new to MLM but with a good company with a long history of success. I'm confused and a little overwhelmed by the complexities of the business. We have hundreds of products, catalogs of training tapes and videos, and a big Web site where my customers can order products. There seem to be a million ways to build a business. I don't know where to start. What do you suggest?
A: I doubt that we (or future generations) will ever again witness the revolutionary change in the MLM industry that has transpired over the past five years. Today, there are so many companies, so many products, so much information and so many opportunities worthy of our efforts. There has been an increasing number of successful and street-smart MLM distributors as our industry matures. But there are still huge numbers of distributors who struggle to make MLM work.
Many distributors feel overwhelmed by the details that surround the business. They have trouble understanding and managing the various sales tools, marketing systems and compensation plans. And with the technology-driven information and support systems thrust on them by progressive MLM companies, it's no wonder so many people become confused and disillusioned, and drop out way too soon. Since you're just getting started, here are a few words of advice:
You can't do it all or learn it all in a few weeks or even a few months. Think about this: We go to school for 12 years and college for four years to get a job that pays us $30,000 to $50,000 a year. But when we join MLM, if we aren't making $10,000 per month in short order, we're ready to quit. My evaluation of the most successful MLM distributors has shown me that they view growing their MLM business knowledge and earning that subsequent success as a lifelong process.
That doesn't mean that as a newcomer you can't be relatively successful right away. Same for an old hand at the game who is still trying to find the right formula to make it work. Keep in mind that a lot of the legwork has already been done by others. The problem for most people new to MLM is picking the right company with the right product and the right system that suits their personal style, interest and skills.
A great asset of working with a mature company is that many people have already taken the arrows in the back pioneering workable business-building concepts. That can also be a roadblock, however, if you aren't provided with a simple plan that directs you how to use this knowledge.
To start, pick out a product or two that you feel good about. Then select two to three proven sales methods from your training materials. Concentrate on these methods, avoiding the temptation to expand. In other words, "narrowcast" rather than "broadcast" your efforts. Do the same with your sponsoring methods: Pick two concepts you're comfortable with and focus on these.
Your objective should always be to keep the plan as simple as possible but no simpler. In other words, don't be underprepared, but don't also do too much. Take it one step at a time and measure your success one day at a time. Yes, you'll have peaks and valleys, but work consistently, staying committed to your goal, and you'll get there.
Michael L. Sheffield is the founder of Sheffield Resource Network, a full-service multilevel marketing consulting firm in Tempe, Arizona. He is also the co-founder and chair of the Multi Level Marketing International Association (MLMIA), whose members represent companies throughout the world.
By Michael L. Sheffield | September 04, 2000
Q: I'm new to MLM but with a good company with a long history of success. I'm confused and a little overwhelmed by the complexities of the business. We have hundreds of products, catalogs of training tapes and videos, and a big Web site where my customers can order products. There seem to be a million ways to build a business. I don't know where to start. What do you suggest?
A: I doubt that we (or future generations) will ever again witness the revolutionary change in the MLM industry that has transpired over the past five years. Today, there are so many companies, so many products, so much information and so many opportunities worthy of our efforts. There has been an increasing number of successful and street-smart MLM distributors as our industry matures. But there are still huge numbers of distributors who struggle to make MLM work.
Many distributors feel overwhelmed by the details that surround the business. They have trouble understanding and managing the various sales tools, marketing systems and compensation plans. And with the technology-driven information and support systems thrust on them by progressive MLM companies, it's no wonder so many people become confused and disillusioned, and drop out way too soon. Since you're just getting started, here are a few words of advice:
You can't do it all or learn it all in a few weeks or even a few months. Think about this: We go to school for 12 years and college for four years to get a job that pays us $30,000 to $50,000 a year. But when we join MLM, if we aren't making $10,000 per month in short order, we're ready to quit. My evaluation of the most successful MLM distributors has shown me that they view growing their MLM business knowledge and earning that subsequent success as a lifelong process.
That doesn't mean that as a newcomer you can't be relatively successful right away. Same for an old hand at the game who is still trying to find the right formula to make it work. Keep in mind that a lot of the legwork has already been done by others. The problem for most people new to MLM is picking the right company with the right product and the right system that suits their personal style, interest and skills.
A great asset of working with a mature company is that many people have already taken the arrows in the back pioneering workable business-building concepts. That can also be a roadblock, however, if you aren't provided with a simple plan that directs you how to use this knowledge.
To start, pick out a product or two that you feel good about. Then select two to three proven sales methods from your training materials. Concentrate on these methods, avoiding the temptation to expand. In other words, "narrowcast" rather than "broadcast" your efforts. Do the same with your sponsoring methods: Pick two concepts you're comfortable with and focus on these.
Your objective should always be to keep the plan as simple as possible but no simpler. In other words, don't be underprepared, but don't also do too much. Take it one step at a time and measure your success one day at a time. Yes, you'll have peaks and valleys, but work consistently, staying committed to your goal, and you'll get there.
Michael L. Sheffield is the founder of Sheffield Resource Network, a full-service multilevel marketing consulting firm in Tempe, Arizona. He is also the co-founder and chair of the Multi Level Marketing International Association (MLMIA), whose members represent companies throughout the world.
Monday, July 14, 2008
GREAT QUOTES FOR FELLOW ENTREPRENEURS
Welcome to The Holy Grail of Network Marketing TM
EZine Issue 18 – July 2008
GREAT QUOTES FOR FELLOW ENTREPRENEURS
Seven Reasons You Might Fail to Become the Best in the World
"You run out of time (and quit).
You run out of money (and quit).
You get scared (and quit).
You're not serious about it (and quit).
You lose interest or enthusiasm or settle for being mediocre (and quit).
You focus on the short term instead of the long (and quit when the short term gets too hard)." Seth Godin - The Dip
When you get right down to the root of the meaning of the word "succeed," you find it simply means to follow through. -FW Nichol
THE HOLY GRAIL NEWSLETTER ARTICLE
Ammunition for Recruiting - "Free Lunch"
By Mark Yarnell
I often get questions from people who use www.15yearsleft.com as their exposure tool. Some folks wonder where I get my statistics and facts about the current US economic condition.
While there are dozens of great books by credible authors on the subject of change, few are more qualified than David Cay Johnston, the Pulitzer Prize-winning reporter for the New York Times. His new book, Free Lunch, will give you all the recruiting ammunition you need.
I don't think it's even possible to read this book without feeling both a growing sense of outrage at the cavernous gap between the rich and poor, and a pressing need to guide people into Network Marketing.
The book is an infuriating call to action that will motivate you and your team to recruit everyone who will listen to the story of our wonderful industry.
MLM may be the only real hope left in traditional capitalism, but we can't afford to keep soft-selling our industry as if we were embarrassed. Unless you are in some slime-ball, front-end load money game with no real product, you should be shouting the praises of our industry from the rooftops.
Our responsibility as Networkers is extremely compelling because as time runs out on our dream world, and effort-based loyalty, risk and sacrifice are replaced by a Peter Pan existence in cyberspace populated by emotionally arrested consumers, most common people will be forced into poverty.
We have the answer for average Americans, but we have to stop playing around and get our information to the masses.
Free Lunch by David Cay Johnston will give you nearly as much ammunition as America Alone by Mark Steyn, Shock Doctrine by Naomi Klein and Consumed by Benjamin Barber combined.
Of course, if you haven't read those last three books, you need to buy them immediately. Upon studying them, your sense of urgency and responsibility to alert people to the growing need for alternative income sources will never be stronger. You'll not only grow your business, but you'll make a greater difference in the world.
About a year ago, some called me crazy when I warned everyone by recording the message. At the time, the housing industry was exploding, Starbucks was expanding exponentially, and gas was $1.90 a gallon.
Today, the biggest foreclosure crisis since the great depression has hit and gas is now over $4.25 a gallon. Oh, and a few days ago, Starbucks announced that they're closing 600 stores. So, now who's crazy?
In Free Lunch, Johnston points out some very interesting facts. Think very carefully as you read his words from page 11:
"Of each dollar people earned in 2005 in the US, the top 10% got 48.5 cents which was the worst share of the income pie since right before the great depression. And the top one tenth of one percent (.1%) had nearly as much income as all 150 million Americans who make up the economic lower half of our population. The distribution of income in the US now resembles the incomes in Mexico, Brazil and Russia. In 1973, the average US income peaked at $33,000 annually and by 2005 it had dropped to $29,000. So, with three decades of economic growth where did all the money go? Straight to the top. The rich and their lobbyists have taken full control of Washington and the state capitals and remade the rules in their own interests."
If you can't use that information to increase your sponsoring rates, don't quit your day job.
WANNA TURN PRO AND GROW YOUR CHECK?
What's YOUR Potential for becoming a Rich Networker based on your current activity, strategies and perspectives?
Maybe it's time for change, time to re-assess how you're building your business. Is what you're doing really working or...
- Are you just stumbling along hitting your head against a wall and hoping that what you're doing will eventually pay off?
- Are you stuck?
- Are you "up" and "down" based on the moment-to-moment basis of how your business is doing?
- Have you run out of contacts?
- Do you need proven lead generating ideas and rejection-free recruiting strategies?
If you were to think like a Rich Networker, apply Rich Networker strategies and adopt Rich Networker perspectives, what would happen to your check?
THE HOLY GRAIL COLLECTION IS DESIGNED TO HELP YOU THINK, ACT AND ACHIEVE LIKE A RICH NETWORKER. Sample CD clips.
VOLUME 4: Move from tripping over land mines in Networking to anticipating and overcoming obstacles with clarity and confidence. Play the game like a Professional and win big.
VOLUME 3: Move from an "up and down" emotional orientation to a solid game plan for sustained inspiration, excitement and confidence 24/7 and watch your business absolutely skyrocket.
VOLUME 2: Move from the world of questionable prospects into the unlimited warm market of 26 rejection-free strategies used by the greatest Networkers in the world.
VOLUME 1: Move from Poor Networker thinking into the wonderful world of a Rich Networker mindset. Learn how to turn Pro and stop getting in your own way of success.
Click Here NOW to Order Volumes (Books and CDs)
BONUS WHEN YOU ORDER NOW
Free DVD Mark Yarnell Live! with an order for any Volume. Click here to learn more:
"MARK YARNELL LIVE"
LATEST FREE TRAINING PODCAST
The Four Secrets to Earning Over $100,000 a Month
Dianne wrote: "Excellent eye opening call that was. I was sent your sizzle call just this morning by a friend, and found this page by accident. Great information.
A must listen to by anyone in Network Marketing."
Nicole wrote: "WOW...awesome information. My business partner sent this to me and I am happy I took the time to listen. There are a lot of great nuggets in your recording."
Rebecca wrote: "Thank you, Mark. You always, always inspire and uplift me--and motivate me to positive action."
Listen to this free training call: www.markyarnelltraining.com
JULY MOTIVATIONAL MESSAGE
The FREE Yarnell Hotline is "Hot"!
Call 1-618-355-1606 to listen to Mark's 2 minute message. Discover why July and August can be your most productive months of the year.
NETWORK MARKETING BLOG - 3 NEW CATEGORIES
Sign up now to receive new articles in your mailbox once or twice a week: markyarnellblog
Latest Blogs
What to Do Next Time You Doubt Your Potential
How to Earn and Keep the BIG Checks Coming In
13 1/2 Years Left and Counting
Unlock Your Potential
If I Were King
Dumbed Down Without a Fight
Network Marketing - A Vehicle for Change
Let's End the Blame Game in Network Marketing
No Exit Network Marketing
Check them out at markyarnellblog.
REFER A FRIEND
We thank you for reading and forwarding this to others who might benefit. To have a friend or associate get their free subscription to The Holy Grail of Network Marketing EZine, please have them send an email to holygrail@telus.net
MORE INFORMATION
Free Recruiting Tools (Free online)
http://15yearsleft.com and http://markyarnellsizzlecall.com.
To order copies of the CD’s at a reasonable price call 800-262-7773 or visit http://yarnell.shopglobaldup.com.
Sales Inquiries – Please direct all inquires about sales to our marketing team, Tony and AJ Regulbuto. Contact Tony or AJ as well to learn about volume discounts for larger organizations or foreign translations. Call 315-458-8100.
To Subscribe to the Holy Grail Associates Club free subscription to this Holy Grail monthly newsletter, send an email to holygrail@telus.net
To Unsubscribe or change your contact details email - holygrail@telus.net
Copyright Info – The contents of the Ezine belong to Mark Yarnell. They may be copied or freely distributed for all nonprofit purposes without the consent of Mark Yarnell as long as the author’s name and contact information are listed in each copy. For example, By Mark Yarnell, www.holygrailnetworkmarketing.com.
Copyright © 2007 Mark Yarnell. All rights reserved worldwide. ** Duplication or reprints only with express permission or approved credits (see above). For more information, visit the web site http://holygrailnetworkmarketing.com
About the Author
Mark Yarnell is co-founder of The Holy Grail of Network Marketing, and author of Your First Year in Network Marketing, Your Best Year in Network Marketing, Power MLM, Power Speaking, Self-Wealth: Creating Prosperity, Balance & Serenity in Your Life and each Holy Grail Volume. With 21 years of experience, he has built a networking organization of 300,000 representatives in 21 countries, and was named “The Greatest Networker in the World” by Upline Magazine.
Book Mark Yarnell to speak at your next convention or event – Send email to holygrail@telus.net and include your name, company, date and location of event, along with anticipated audience size and composition. For more information, check out the Keynote tab at:
http://holygrailnetworkmarketing.com
Is life not a hundred times too short for us to stifle ourselves? -Nietzche
EZine Issue 18 – July 2008
GREAT QUOTES FOR FELLOW ENTREPRENEURS
Seven Reasons You Might Fail to Become the Best in the World
"You run out of time (and quit).
You run out of money (and quit).
You get scared (and quit).
You're not serious about it (and quit).
You lose interest or enthusiasm or settle for being mediocre (and quit).
You focus on the short term instead of the long (and quit when the short term gets too hard)." Seth Godin - The Dip
When you get right down to the root of the meaning of the word "succeed," you find it simply means to follow through. -FW Nichol
THE HOLY GRAIL NEWSLETTER ARTICLE
Ammunition for Recruiting - "Free Lunch"
By Mark Yarnell
I often get questions from people who use www.15yearsleft.com as their exposure tool. Some folks wonder where I get my statistics and facts about the current US economic condition.
While there are dozens of great books by credible authors on the subject of change, few are more qualified than David Cay Johnston, the Pulitzer Prize-winning reporter for the New York Times. His new book, Free Lunch, will give you all the recruiting ammunition you need.
I don't think it's even possible to read this book without feeling both a growing sense of outrage at the cavernous gap between the rich and poor, and a pressing need to guide people into Network Marketing.
The book is an infuriating call to action that will motivate you and your team to recruit everyone who will listen to the story of our wonderful industry.
MLM may be the only real hope left in traditional capitalism, but we can't afford to keep soft-selling our industry as if we were embarrassed. Unless you are in some slime-ball, front-end load money game with no real product, you should be shouting the praises of our industry from the rooftops.
Our responsibility as Networkers is extremely compelling because as time runs out on our dream world, and effort-based loyalty, risk and sacrifice are replaced by a Peter Pan existence in cyberspace populated by emotionally arrested consumers, most common people will be forced into poverty.
We have the answer for average Americans, but we have to stop playing around and get our information to the masses.
Free Lunch by David Cay Johnston will give you nearly as much ammunition as America Alone by Mark Steyn, Shock Doctrine by Naomi Klein and Consumed by Benjamin Barber combined.
Of course, if you haven't read those last three books, you need to buy them immediately. Upon studying them, your sense of urgency and responsibility to alert people to the growing need for alternative income sources will never be stronger. You'll not only grow your business, but you'll make a greater difference in the world.
About a year ago, some called me crazy when I warned everyone by recording the message. At the time, the housing industry was exploding, Starbucks was expanding exponentially, and gas was $1.90 a gallon.
Today, the biggest foreclosure crisis since the great depression has hit and gas is now over $4.25 a gallon. Oh, and a few days ago, Starbucks announced that they're closing 600 stores. So, now who's crazy?
In Free Lunch, Johnston points out some very interesting facts. Think very carefully as you read his words from page 11:
"Of each dollar people earned in 2005 in the US, the top 10% got 48.5 cents which was the worst share of the income pie since right before the great depression. And the top one tenth of one percent (.1%) had nearly as much income as all 150 million Americans who make up the economic lower half of our population. The distribution of income in the US now resembles the incomes in Mexico, Brazil and Russia. In 1973, the average US income peaked at $33,000 annually and by 2005 it had dropped to $29,000. So, with three decades of economic growth where did all the money go? Straight to the top. The rich and their lobbyists have taken full control of Washington and the state capitals and remade the rules in their own interests."
If you can't use that information to increase your sponsoring rates, don't quit your day job.
WANNA TURN PRO AND GROW YOUR CHECK?
What's YOUR Potential for becoming a Rich Networker based on your current activity, strategies and perspectives?
Maybe it's time for change, time to re-assess how you're building your business. Is what you're doing really working or...
- Are you just stumbling along hitting your head against a wall and hoping that what you're doing will eventually pay off?
- Are you stuck?
- Are you "up" and "down" based on the moment-to-moment basis of how your business is doing?
- Have you run out of contacts?
- Do you need proven lead generating ideas and rejection-free recruiting strategies?
If you were to think like a Rich Networker, apply Rich Networker strategies and adopt Rich Networker perspectives, what would happen to your check?
THE HOLY GRAIL COLLECTION IS DESIGNED TO HELP YOU THINK, ACT AND ACHIEVE LIKE A RICH NETWORKER. Sample CD clips.
VOLUME 4: Move from tripping over land mines in Networking to anticipating and overcoming obstacles with clarity and confidence. Play the game like a Professional and win big.
VOLUME 3: Move from an "up and down" emotional orientation to a solid game plan for sustained inspiration, excitement and confidence 24/7 and watch your business absolutely skyrocket.
VOLUME 2: Move from the world of questionable prospects into the unlimited warm market of 26 rejection-free strategies used by the greatest Networkers in the world.
VOLUME 1: Move from Poor Networker thinking into the wonderful world of a Rich Networker mindset. Learn how to turn Pro and stop getting in your own way of success.
Click Here NOW to Order Volumes (Books and CDs)
BONUS WHEN YOU ORDER NOW
Free DVD Mark Yarnell Live! with an order for any Volume. Click here to learn more:
"MARK YARNELL LIVE"
LATEST FREE TRAINING PODCAST
The Four Secrets to Earning Over $100,000 a Month
Dianne wrote: "Excellent eye opening call that was. I was sent your sizzle call just this morning by a friend, and found this page by accident. Great information.
A must listen to by anyone in Network Marketing."
Nicole wrote: "WOW...awesome information. My business partner sent this to me and I am happy I took the time to listen. There are a lot of great nuggets in your recording."
Rebecca wrote: "Thank you, Mark. You always, always inspire and uplift me--and motivate me to positive action."
Listen to this free training call: www.markyarnelltraining.com
JULY MOTIVATIONAL MESSAGE
The FREE Yarnell Hotline is "Hot"!
Call 1-618-355-1606 to listen to Mark's 2 minute message. Discover why July and August can be your most productive months of the year.
NETWORK MARKETING BLOG - 3 NEW CATEGORIES
Sign up now to receive new articles in your mailbox once or twice a week: markyarnellblog
Latest Blogs
What to Do Next Time You Doubt Your Potential
How to Earn and Keep the BIG Checks Coming In
13 1/2 Years Left and Counting
Unlock Your Potential
If I Were King
Dumbed Down Without a Fight
Network Marketing - A Vehicle for Change
Let's End the Blame Game in Network Marketing
No Exit Network Marketing
Check them out at markyarnellblog.
REFER A FRIEND
We thank you for reading and forwarding this to others who might benefit. To have a friend or associate get their free subscription to The Holy Grail of Network Marketing EZine, please have them send an email to holygrail@telus.net
MORE INFORMATION
Free Recruiting Tools (Free online)
http://15yearsleft.com and http://markyarnellsizzlecall.com.
To order copies of the CD’s at a reasonable price call 800-262-7773 or visit http://yarnell.shopglobaldup.com.
Sales Inquiries – Please direct all inquires about sales to our marketing team, Tony and AJ Regulbuto. Contact Tony or AJ as well to learn about volume discounts for larger organizations or foreign translations. Call 315-458-8100.
To Subscribe to the Holy Grail Associates Club free subscription to this Holy Grail monthly newsletter, send an email to holygrail@telus.net
To Unsubscribe or change your contact details email - holygrail@telus.net
Copyright Info – The contents of the Ezine belong to Mark Yarnell. They may be copied or freely distributed for all nonprofit purposes without the consent of Mark Yarnell as long as the author’s name and contact information are listed in each copy. For example, By Mark Yarnell, www.holygrailnetworkmarketing.com.
Copyright © 2007 Mark Yarnell. All rights reserved worldwide. ** Duplication or reprints only with express permission or approved credits (see above). For more information, visit the web site http://holygrailnetworkmarketing.com
About the Author
Mark Yarnell is co-founder of The Holy Grail of Network Marketing, and author of Your First Year in Network Marketing, Your Best Year in Network Marketing, Power MLM, Power Speaking, Self-Wealth: Creating Prosperity, Balance & Serenity in Your Life and each Holy Grail Volume. With 21 years of experience, he has built a networking organization of 300,000 representatives in 21 countries, and was named “The Greatest Networker in the World” by Upline Magazine.
Book Mark Yarnell to speak at your next convention or event – Send email to holygrail@telus.net and include your name, company, date and location of event, along with anticipated audience size and composition. For more information, check out the Keynote tab at:
http://holygrailnetworkmarketing.com
Is life not a hundred times too short for us to stifle ourselves? -Nietzche
On the Level
The Internet makes MLM easier--but it won't do the work for you. Before you commit, make sure you're prepared.
By Jane Easter Bahls
Three years ago, Cynthia Marshall of San Antonio, Texas, was looking for a business opportunity. She'd recently signed up for pre-paid Internet access with FlashNet Communications, based in Fort Worth, Texas, and was happy with the price and service. "I was thinking, 'I wish a real company like FlashNet would try network marketing,' " Marshall says.
Marshall had tried her hand at selling diet pills and Tupperware but hadn't managed to build what's needed for success: a "downline" of people she'd recruited into the business. Then she received an e-mail: FlashNet was launching a new division, FlashNet Marketing Inc., to sell its services directly to consumers through a network of independent sales representatives. Marshall attended the first opportunity meeting in San Antonio in July 1997 and signed up immediately.
Since then, Marshall has personally signed up more than 100 customers, who pay $17.95 per month or $129.95 per year for Internet access and the seasonal promotions to buy electronics at a discount. By recruiting friends and family members into the business, who in turn have recruited others, she's built a downline of 360 representatives serving 3,200 customers. As with other distributors in network marketing (also called multilevel marketing, or MLM), she receives overrides on the sales generated by everyone in her group. Soon she cut back to part time at her airline job to focus on her burgeoning business.
Like other independent representatives and distributors in the industry, Marshall has found that the Internet is a valuable tool in building her business. She has a customized Web page linked to the official company site, which her customers use as a portal to the Internet. She places classified ads on various Web sites to attract potential recruits. She uses Internet technology to keep track of sales generated by her group. But she knows she can't simply rely on the Net alone. "The Internet is just a tool, just like the classified ads," she says. "Once you establish contact, you have to spend a lot of time building relationships."
It's partly because of the Internet that the MLM industry is growing so fast all over the world. The Direct Selling Association estimates that retail sales in the U.S. direct-selling industry (consisting almost entirely of network marketing companies) grew steadily from nearly $13 billion in 1991 to more than $23.17 billion in 1998. During the same time period, the U.S. sales force, of which 90 percent work part time, grew from 5.1 million people to 9.7 million. The Internet—which allows distributors to get information out quickly, keep track of their organizations, stay in touch with other distributors and meet people they wouldn't otherwise meet—is largely responsible for that growth.
However, the Net also poses a threat to the very people it helps. "Just because an MLM distributor puts up a Web site doesn't mean it will generate queries on its own," says Dr. P.K. Kannan, a marketing professor at the Robert H. Smith School of Business at the University of Maryland in College Park. "It's basically word-of-mouth. People are not going to compare Web pages and join."
"A Web site won't help you with training new recruits on how to get started," nor will it necessarily bring in the right people for your business, adds Jerry Vitale, director of sales for Enviro-Tech International Inc. of Las Vegas, a network marketing company that sells waterless cleaning products, personal care products and food supplements. "People become obsessed with some guy in Germany, while ignoring the guy two doors down who's praying for the right business opportunity."
Just ask 31-year-old Corey Baker, a Dacula, Georgia, independent distributor for EcoQuest International Inc. of Greeneville, Tennessee. Baker, a former computer analyst and account manager, first took an interest in MLM after attending an EcoQuest meeting with his brother, Scott, and his entrepreneurial father, J.K. Baker. They all liked what they saw and became distributors, selling air cleaners and water purifiers made by Alpine Industries (also based in Greeneville) by placing them in people's homes. Corey was soon earning up to $15,000 a month from EcoQuest, working part time. After a year, he left his corporate job; he now has 3,000 distributors in his downline and has averaged $150,000 per year over four years. "I absolutely love it," says Corey. "I love telling people about things I like."
Corey built his network the old-fashioned way: with meetings and information packets. But now the Internet helps Corey work more efficiently. Instead of conducting meetings all the time and spending eight to 10 hours on the phone every day, he refers prospects to his Web site and encourages them to send in questions via e-mail. Three times a week, he sends out e-mail updates to all his distributors. "We can be more effective using the Internet, as long as we don't abuse it," he says. "Some people use it as their only tool-it's so impersonal."
Michael Jackson, president of EcoQuest, goes a step beyond that. "The Internet is creating great havoc in the network marketing business," he says. As in any industry, upstart companies can go online and sell products at a very low cost, then go out of business. Maverick distributors can easily undercut other distributors with predatory pricing. An EcoQuest distributor, for instance, might take an air cleaner into someone's house for a three-day trial and convince the customer to purchase one. "Then the customer says 'Let me go on the Internet and see what price I can get,' " Jackson says. "The Internet dealer gets to sell one for practically nothing, because he didn't have to go through the process of the three-day trial."
One challenge for network marketing companies is how the company Web site should be related to those of each independent distributor. If customers are allowed to purchase products online directly from the company, are the distributors bypassed? What if people get confused and are unable to tell if a Web site is the official company site or one put up by a distributor? What if a distributor decided to make a bunch of outrageous claims on his or her Web site, marring the image of the whole company?
The best solution seems to be connected sites. At EcoQuest, the company has a well-designed site with full audio and video. Each dealer has a Web page linked to the main site, which becomes the point of access for distributors' own customers. The company controls the content, which dealers are allowed to customize. They may not put up independent Web sites. "We have the world's largest police force—our dealers are on the lookout [for nonconforming sites]," says Jackson. "When we find a maverick site, the dealer is asked to leave the company."
FlashNet has a similar setup, giving new distributors the software for a connected Web page to customize. When there's a new product, the company can update everyone's Web pages at once. However, nearly 500 distributors choose to create and maintain their own separate sites, and the company doesn't plan to prohibit that. "The Internet is an independent culture-we want to embrace that," Frey says. "We make an effort to honor the entrepreneurial spirit of those early adopters who created their own sites." About once a month, a company employee monitors all these sites to make sure they're not misleading.
Many companies now use the Net to streamline orders, revise forms (which distributors then print and duplicate) and communicate product information, all in the interest of increasing efficiency and reducing costs. Because many distributors still aren't online, though, that means running dual systems—which can actually increase the costs. That soon won't be a problem at FlashNet. "We're going to require reps to be online," Frey says, contending that a dual system is just not effective. "For those who aren't—we ask if this is really the business he or she wants to be in." It isn't that easy for companies dealing in more traditional products, where some distributors have been with the company for years but resist new technology.
"The Internet has excellent, awesome applications," Vitale says. Young people are catching on to that fact with MLM, lured by the prospect of earning $60,000 a year working at home. "Younger people are Internet-savvy, and they want to work with a company that's tech-savvy," he says. "We're teaching people about free enterprise."
Network marketing may be easier now that the Internet provides so many business-building tools, but is it right for you? That depends on your personality. MLM companies are different from each other in many ways, but they all involve either selling products or services to people you know or finding new prospects. If you find these concepts distasteful, don't bother investigating further. On the other hand, many distributors contend that the recruiting part is just like recommending a favorite movie or restaurant. Here are some questions to consider:
Is it a legitimate business or a pyramid scheme? Pyramids and ponzi schemes have each newcomer give a pile of money to someone higher up in the structure, then recruit others to do the same. Eventually, everyone involved is supposed to reach the payoff level and get rich—but there are only so many suckers in the world, and eventually the pyramid collapses. These schemes are illegal. Legitimate network marketing companies require a low initial investment and very little risk. Income is based on retail sales, not how many people you recruit.
Do you like the products? Would you buy them?
Does this company emphasize sales or recruiting? Some companies focus on presenting the products, letting interested customers ask about career opportunities. Others focus more on the money you can make by recruiting more distributors. Some companies ask you to buy a lot of products for your own use rather than sell them to others. Be sure you're comfortable with the expectations.
Party plan, person-to-person or opportunity meeting? Are you more comfortable demonstrating products to groups of people, doing in-home trials one on one, recommending products from a catalog or taking people to opportunity meetings?
What's the compensation plan? Do you have to recruit a certain number of people before you can start earning money? Does your unit "break away" at a certain level? Are people paid directly?
How good is the company itself? Make sure it's adequately capitalized, has a track record of at least two years, and has a computer system that can track sales and make sure everyone gets paid. Check out the Web site and which sales tools you'd have at your disposal. Make sure that there's a strong service department to deliver merchandise promptly and that you can get a refund on unsold merchandise.
New Attitude
Love the idea of network marketing but hate the idea of selling skin cream? Two old-time network marketing companies have launched Internet subsidiaries that are attracting a new demographic: young, tech-savvy entrepreneurs eager to make their fortunes from the Internet.
• Last September, Amway Corp., the granddaddy of network marketing companies, launched a separate e-commerce site called Quixtar Inc. Both companies are based in Michigan, and both attract distributors through opportunity meetings that promise financial freedom to those willing to buy most of their household goods through the company and persuade others to do the same. But while Amway relies on catalogs, Quixtar provides an interactive Internet portal with a wide range of company products plus links to roughly 100 "partner" e-tailers.
• Meanwhile, Nu Skin Enterprises Inc. of Provo, Utah, which has built a global MLM company with its personal care and nutritional products, has launched a network marketing company called Big Planet Inc. The primary product is an Internet access device called the iPhone, a telephone and Internet device in one that provides customers with Internet access at the touch of its screen—but always through Big Planet's portal, which sells a wide range of other technological equipment. "Of every 10 presentations, six adopt it," says Scott Schwerdt, COO of Big Planet. "Most people keep it in their kitchen."
Jane Easter Bahls writes freelance magazine articles from her home in Columbus, Ohio.
By Jane Easter Bahls
Three years ago, Cynthia Marshall of San Antonio, Texas, was looking for a business opportunity. She'd recently signed up for pre-paid Internet access with FlashNet Communications, based in Fort Worth, Texas, and was happy with the price and service. "I was thinking, 'I wish a real company like FlashNet would try network marketing,' " Marshall says.
Marshall had tried her hand at selling diet pills and Tupperware but hadn't managed to build what's needed for success: a "downline" of people she'd recruited into the business. Then she received an e-mail: FlashNet was launching a new division, FlashNet Marketing Inc., to sell its services directly to consumers through a network of independent sales representatives. Marshall attended the first opportunity meeting in San Antonio in July 1997 and signed up immediately.
Since then, Marshall has personally signed up more than 100 customers, who pay $17.95 per month or $129.95 per year for Internet access and the seasonal promotions to buy electronics at a discount. By recruiting friends and family members into the business, who in turn have recruited others, she's built a downline of 360 representatives serving 3,200 customers. As with other distributors in network marketing (also called multilevel marketing, or MLM), she receives overrides on the sales generated by everyone in her group. Soon she cut back to part time at her airline job to focus on her burgeoning business.
Like other independent representatives and distributors in the industry, Marshall has found that the Internet is a valuable tool in building her business. She has a customized Web page linked to the official company site, which her customers use as a portal to the Internet. She places classified ads on various Web sites to attract potential recruits. She uses Internet technology to keep track of sales generated by her group. But she knows she can't simply rely on the Net alone. "The Internet is just a tool, just like the classified ads," she says. "Once you establish contact, you have to spend a lot of time building relationships."
It's partly because of the Internet that the MLM industry is growing so fast all over the world. The Direct Selling Association estimates that retail sales in the U.S. direct-selling industry (consisting almost entirely of network marketing companies) grew steadily from nearly $13 billion in 1991 to more than $23.17 billion in 1998. During the same time period, the U.S. sales force, of which 90 percent work part time, grew from 5.1 million people to 9.7 million. The Internet—which allows distributors to get information out quickly, keep track of their organizations, stay in touch with other distributors and meet people they wouldn't otherwise meet—is largely responsible for that growth.
However, the Net also poses a threat to the very people it helps. "Just because an MLM distributor puts up a Web site doesn't mean it will generate queries on its own," says Dr. P.K. Kannan, a marketing professor at the Robert H. Smith School of Business at the University of Maryland in College Park. "It's basically word-of-mouth. People are not going to compare Web pages and join."
"A Web site won't help you with training new recruits on how to get started," nor will it necessarily bring in the right people for your business, adds Jerry Vitale, director of sales for Enviro-Tech International Inc. of Las Vegas, a network marketing company that sells waterless cleaning products, personal care products and food supplements. "People become obsessed with some guy in Germany, while ignoring the guy two doors down who's praying for the right business opportunity."
Just ask 31-year-old Corey Baker, a Dacula, Georgia, independent distributor for EcoQuest International Inc. of Greeneville, Tennessee. Baker, a former computer analyst and account manager, first took an interest in MLM after attending an EcoQuest meeting with his brother, Scott, and his entrepreneurial father, J.K. Baker. They all liked what they saw and became distributors, selling air cleaners and water purifiers made by Alpine Industries (also based in Greeneville) by placing them in people's homes. Corey was soon earning up to $15,000 a month from EcoQuest, working part time. After a year, he left his corporate job; he now has 3,000 distributors in his downline and has averaged $150,000 per year over four years. "I absolutely love it," says Corey. "I love telling people about things I like."
Corey built his network the old-fashioned way: with meetings and information packets. But now the Internet helps Corey work more efficiently. Instead of conducting meetings all the time and spending eight to 10 hours on the phone every day, he refers prospects to his Web site and encourages them to send in questions via e-mail. Three times a week, he sends out e-mail updates to all his distributors. "We can be more effective using the Internet, as long as we don't abuse it," he says. "Some people use it as their only tool-it's so impersonal."
Michael Jackson, president of EcoQuest, goes a step beyond that. "The Internet is creating great havoc in the network marketing business," he says. As in any industry, upstart companies can go online and sell products at a very low cost, then go out of business. Maverick distributors can easily undercut other distributors with predatory pricing. An EcoQuest distributor, for instance, might take an air cleaner into someone's house for a three-day trial and convince the customer to purchase one. "Then the customer says 'Let me go on the Internet and see what price I can get,' " Jackson says. "The Internet dealer gets to sell one for practically nothing, because he didn't have to go through the process of the three-day trial."
One challenge for network marketing companies is how the company Web site should be related to those of each independent distributor. If customers are allowed to purchase products online directly from the company, are the distributors bypassed? What if people get confused and are unable to tell if a Web site is the official company site or one put up by a distributor? What if a distributor decided to make a bunch of outrageous claims on his or her Web site, marring the image of the whole company?
The best solution seems to be connected sites. At EcoQuest, the company has a well-designed site with full audio and video. Each dealer has a Web page linked to the main site, which becomes the point of access for distributors' own customers. The company controls the content, which dealers are allowed to customize. They may not put up independent Web sites. "We have the world's largest police force—our dealers are on the lookout [for nonconforming sites]," says Jackson. "When we find a maverick site, the dealer is asked to leave the company."
FlashNet has a similar setup, giving new distributors the software for a connected Web page to customize. When there's a new product, the company can update everyone's Web pages at once. However, nearly 500 distributors choose to create and maintain their own separate sites, and the company doesn't plan to prohibit that. "The Internet is an independent culture-we want to embrace that," Frey says. "We make an effort to honor the entrepreneurial spirit of those early adopters who created their own sites." About once a month, a company employee monitors all these sites to make sure they're not misleading.
Many companies now use the Net to streamline orders, revise forms (which distributors then print and duplicate) and communicate product information, all in the interest of increasing efficiency and reducing costs. Because many distributors still aren't online, though, that means running dual systems—which can actually increase the costs. That soon won't be a problem at FlashNet. "We're going to require reps to be online," Frey says, contending that a dual system is just not effective. "For those who aren't—we ask if this is really the business he or she wants to be in." It isn't that easy for companies dealing in more traditional products, where some distributors have been with the company for years but resist new technology.
"The Internet has excellent, awesome applications," Vitale says. Young people are catching on to that fact with MLM, lured by the prospect of earning $60,000 a year working at home. "Younger people are Internet-savvy, and they want to work with a company that's tech-savvy," he says. "We're teaching people about free enterprise."
Network marketing may be easier now that the Internet provides so many business-building tools, but is it right for you? That depends on your personality. MLM companies are different from each other in many ways, but they all involve either selling products or services to people you know or finding new prospects. If you find these concepts distasteful, don't bother investigating further. On the other hand, many distributors contend that the recruiting part is just like recommending a favorite movie or restaurant. Here are some questions to consider:
Is it a legitimate business or a pyramid scheme? Pyramids and ponzi schemes have each newcomer give a pile of money to someone higher up in the structure, then recruit others to do the same. Eventually, everyone involved is supposed to reach the payoff level and get rich—but there are only so many suckers in the world, and eventually the pyramid collapses. These schemes are illegal. Legitimate network marketing companies require a low initial investment and very little risk. Income is based on retail sales, not how many people you recruit.
Do you like the products? Would you buy them?
Does this company emphasize sales or recruiting? Some companies focus on presenting the products, letting interested customers ask about career opportunities. Others focus more on the money you can make by recruiting more distributors. Some companies ask you to buy a lot of products for your own use rather than sell them to others. Be sure you're comfortable with the expectations.
Party plan, person-to-person or opportunity meeting? Are you more comfortable demonstrating products to groups of people, doing in-home trials one on one, recommending products from a catalog or taking people to opportunity meetings?
What's the compensation plan? Do you have to recruit a certain number of people before you can start earning money? Does your unit "break away" at a certain level? Are people paid directly?
How good is the company itself? Make sure it's adequately capitalized, has a track record of at least two years, and has a computer system that can track sales and make sure everyone gets paid. Check out the Web site and which sales tools you'd have at your disposal. Make sure that there's a strong service department to deliver merchandise promptly and that you can get a refund on unsold merchandise.
New Attitude
Love the idea of network marketing but hate the idea of selling skin cream? Two old-time network marketing companies have launched Internet subsidiaries that are attracting a new demographic: young, tech-savvy entrepreneurs eager to make their fortunes from the Internet.
• Last September, Amway Corp., the granddaddy of network marketing companies, launched a separate e-commerce site called Quixtar Inc. Both companies are based in Michigan, and both attract distributors through opportunity meetings that promise financial freedom to those willing to buy most of their household goods through the company and persuade others to do the same. But while Amway relies on catalogs, Quixtar provides an interactive Internet portal with a wide range of company products plus links to roughly 100 "partner" e-tailers.
• Meanwhile, Nu Skin Enterprises Inc. of Provo, Utah, which has built a global MLM company with its personal care and nutritional products, has launched a network marketing company called Big Planet Inc. The primary product is an Internet access device called the iPhone, a telephone and Internet device in one that provides customers with Internet access at the touch of its screen—but always through Big Planet's portal, which sells a wide range of other technological equipment. "Of every 10 presentations, six adopt it," says Scott Schwerdt, COO of Big Planet. "Most people keep it in their kitchen."
Jane Easter Bahls writes freelance magazine articles from her home in Columbus, Ohio.
Saturday, July 12, 2008
What is Globalization?
Globalization is a relatively new term used to describe a very old process. It is a historical process that began with our human ancestors moving out of Africa to spread all over the globe. In the millennia that have followed, distance has been largely overcome and human-made barriers lowered or removed to facilitate the exchange of goods and ideas. Propelled by the desire to improve one's life and helped along by technology, both the interconnectedness and interdependence have grown. This increasing integration of the world or 'globalization' has enriched life but also created new problems.
The exponential growth in the exchange of goods, ideas, institutions and people that we see today is part of a long-term historical trend. Over the course of human history, the desire for something better and greater has motivated people to move themselves, their goods, and their ideas around the world.
Since the first appearance of the term in 1962 'globalization' has gone from jargon to cliche. The Economist has called it "the most abused word of the 21st century." Certainly no word in recent memory has meant so many different things to different people and has evoked as much emotion. Some see it as nirvana - a blessed state of universal peace and prosperity - while others condemn it as a new kind of chaos.
If properly defined and applied, the "g-word" actually does have some utility. It can best be understood as a leitmotif of human history. It is a trend that has intensified and accelerated in recent decades and come into full view with all its benefits and destructive power. Just as climate has shaped the environment over the millennia, the interaction among cultures and societies over tens of thousands of years has resulted in the increasing integration of what is becoming the global human community.
Globalization - defined by Webster's dictionary as a process that renders various activities and aspirations "worldwide in scope or application" - has been underway for a long time. Thousands of years before the root word for this concept - 'globe' - came into use, our ancestors had already spread across the earth. In fact, the process by which they migrated and populated all the continents except Antarctica was a kind of proto-globalization. Some 50,000 years ago early forms of homo sapiens, who developed in east Africa, began to travel to the far corners of the world, including to the continents of North and South America. Rising sea levels at the end of the ice age separated the Americas from the Eurasian land mass, creating two worlds that were now cut off from each other. They would not be reconnected until Christopher Columbus's serendipitous landing on a Caribbean island in 1492. That same year a German geographer, Martin Behaim, built the first known globe as a representation of the earth.
The reconnection was called the 'Columbian exchange,' and it is celebrated as a landmark in the history of globalization. The discovery of the New World brought together peoples who had been separated for over 10,000 years. No less significant has been the exchange of plants and animals. A Peruvian tuber, the potato, has become a staple throughout the world, Mexican chili pepper has taken over Asia, and an Ethiopian crop, coffee, found new homes from Brazil to Vietnam, to name just a few. In the intervening period, societies have not only evolved in radically different ways and developed different economic and political structures, but they have also invented different technologies, grown different crops and, most importantly, developed different languages and ways of thinking. That diversity makes the job of reconnecting civilizations both challenging and rewarding.
Historically there were four main motives that drove people to leave the sanctuary of their family and village: conquest (the desire to ensure security and extend political power), prosperity (the search for a better life), proselytizing (spreading the word of their God and converting others to their faith), and a more mundane but still powerful force -curiosity and wanderlust that seem basic to human nature. Therefore, the principal agents of globalization were soldiers (and sailors), traders, preachers and adventurers. Signs of trade in the dawn of civilization can be seen in old seashells carried deep into the interior of Africa. Thousands of years ago traders carried goods from one part of the globe to another across oceans. Missionaries traversed deserts and mountains and sailed the seas. The spread of Buddhism from India to Indonesia led to the creation of the Borobudur temple, which is one of the first monuments of globalization. From the Chinese Buddhist monk Faxian's journey to India in the 4th century, to the Arab explorer Ibn Batuta's travels to Europe, Asia and Africa a thousand years later, adventurers have continued to find new frontiers and establish connections among far-flung societies, cultures and economies. Even though travel was slow and dangerous, ambitious and acquisitive leaders - from Alexander the Great to Genghis Khan - ventured far from home and brought new lands under their sway. Conquest meant globalization in both directions, since the rulers often ended up being as influenced by those they ruled as vice versa.
The cast of characters whose drive and determination have established links of both domination and cooperation has changed with times. Small bands of traders carrying their wares on their backs or in boats have been replaced by giant enterprises, starting with the Dutch and British East India Companies in the 17th century. In place of solitary pilgrims and priests have come vast religious organizations that spread their beliefs, along with their languages, literatures and architecture. The few intrepid adventurers and travelers of past centuries who brought distant societies together have given way to thousands and even millions of refugees and immigrants fleeing across borders, as well as hundreds of millions of tourists jetting around the world. All these comings and goings deepen and broaden the connections among far parts of the world and facilitate the transmission of goods, ideas and cultures.
The commercial history of the past five hundred years is marked by other trends and transactions that have strengthened the bonds of interconnectedness. The rubber plants uprooted from the jungles of Brazil and transplanted in Malaysia by British colonialists in the first years of the 20th century provided the raw material for the tires in Henry Ford's Model T; the indentured rubber tapper from China and India altered Malaysia's ethnic composition forever. The introduction of new crops like corn and sweet potatoes from the New World had a dramatic impact on demography. For example, the growth of population in China, which had been held in check by the shortage of irrigable rice fields, got a boost from new crops that could be grown on marginal soil. Similarly, Chechnya's population grew apace after the arrival of corn from the New World.
From the Roman empire, to Pax Britannica two centuries ago, to the Pax Americana of today, the power of super states has been another force changing the nature of interdependence. In the emerging global supply chain that now feeds consumer production worldwide, Western and American multinational corporations have taken a lead role.
The expanding circle of free trade has boosted economic growth and spawned a burgeoning middle class, which, in turn, has increased consumption of globally produced goods and rise in international tourism. Most striking have been the world's two most populous countries, China and India. With rising income and greater consumption has come more personal freedom and a growing demand for accountable government. Even though the vast majority of the world population is still poor, the ideas of democracy, human rights and press freedom have spread. The percentage of countries which hold multi-party elections to choose their governments has grown from less than thirty percent in 1974 to over sixty percent of the 192 countries in the world.
The most powerful force for transmitting the ideas of democracy and human rights across borders is the revolution in information technology in the second half of the 20th century. The telephone, television and the Internet have been the key tools. In the late 19th century, it took Queen Victoria sixteen and a half hours to send a message of greeting across a transatlantic cable to President James Buchanan. Today vast amounts of information in multiple formats - text, voice, video - are transmitted at the speed of light. Moreover, a three minute call from New York to London costs less than a dime, instead of the $300 it cost in 1930. This dramatic drop in the price of telecommunications has made the benefits of the information explosion available to much of humanity.
Meanwhile, innovations like satellite television have connected people's emotions across borders and oceans: the news of Princess Diana's death flashing on cable TV's immediately elicited wreathes of flowers from around the world. The free flow of information is also helping bridge the political divide: September 11 triggered a candlelight vigil among young Iranians. But it has also been hardening attitudes along ideological boundaries. The Arabic-language satellite station Al Jazeera's live broadcast of Israeli-Palestine violence has widened the gulf between Arabs and Israelis.
The falling cost of communications and transportation has boosted economic growth while literacy and better health care have improved quality of life. People the world over are living longer and healthier lives, while the number of people living in poverty has dropped in most regions (though it has increased in Africa and South Asia).
Yet faster growth has its cost, too. The reduction in poverty worldwide has negative environmental consequences. Close to one percent of the world's rainforest is disappearing every year because of expanding agriculture and trade in forest products. The closely knit global communication network that makes growth possible has also made the world as a whole more vulnerable to everything from disease and mischief to terror. HIV infection in humans developed in Africa and South America but has spread to the entire world, now infecting some 14,000 people each day. In 1997, in barely five hours the "I love you" computer virus released by pranksters in Manila wreaked $700 million worth of damage worldwide. The September 11 hijackers made use of electronic transfers of funds to finance their operation. They also relied on the Internet to coordinate their moves and buy airline tickets. Since the attacks, Osama Bin Laden's favorite means of communicating with the world from his cave has been satellite TV.
Not that any of this mixture of the good and the bad is new. Throughout history, the introduction of breakthrough technologies has brought disruption, and created winners and losers. When the Old World connected with the New World through colonizers and explorers, new pathogens like small pox and influenza caused a "demographic holocaust," killing three out of every four Native Americans. The colonization of the Americas and vast parts of Asia, Africa, the Middle East and Latin America, has destroyed traditional social structures and political power while speeding up the process of economic integration. The need for labor to mine silver and work the plantations resulted in the transfer of some 10 million slaves from Africa. On the other hand, the economies of Europe and Asia boomed, fuelled by the flow of precious metals and new commodities.
No other country has played as significant a role in reconnecting the world as the United States, itself an early product of modern globalization. A vast majority of some 60 million people who left their place of birth in the most intense period of globalization in the late 19th century went to the US. Immigrants and slaves built the richest nation in history. They drew upon world resources - starting with the water mill and steam engine technology from Britain - and emerged as a leading innovator and the most potent engine of globalization. With the American victory in the World War II Pacific arena and the launch of the Marshall plan, US economic and military power has spread to far corners of the world, culminating in the end of the Cold War. The fall of the Berlin Wall symbolized the end of a global ideological division and gave a boost to the latest burst of globalization itself. It is no wonder many around the world see - and resent - globalization as a euphemism for Americanization.
At the same time, the end of the Cold War has brought into sharper focus the other huge chasm that exists between the rich and the developing nations. While globalization has created unprecedented riches, many people have also been left mired in poverty. Industrialized countries with developed infrastructure, institutions and education, and middle income countries which opened up the economy have benefited most from globalization, but the poorest countries have not grown, or in some cases have even sunk back. Thus despite the overall fall in the rate of poverty, close to a third of the world population still lives in utter poverty without access to electricity or drinking water. The gap between the rich and the poor countries and between the wealthy and the indigent within countries has also widened. The rules of global engagement that have evolved, and the institutions that manage them - from the International Monetary Fund to the World Trade Organization - reflect the power imbalance between wealthy and poor nations.
Thanks to the wider diffusion of information, today's have-nots are more aware of the gap between themselves and the rich West, and between themselves and Western-backed domestic elites. This consciousness can be a powerful source of resentment and protest, such as the anti-American demonstrations from Venezuela to the Philippines. Overt or subliminal political and cultural messages carried with goods, ideas and entertainment from the developed world have added to the sense of disruption in many traditional societies. Combined with the misery and misrule in many countries, the bright lights of the West lure many to seek their fortunes elsewhere. The rising tide of illegal immigrants washing over the developed countries has become a major concern. The reconnection of the world through goods and ideas has also evoked conflicting responses - from admiration to bitter nationalistic and religious resistance. While students in Iran clamor for an American-style life, many in the West oppose globalization as the symbol of iniquitous free market capitalism. Many people around the globe also see a Western-led globalization aimed at destroying Islam.
What does all this mean for globalization? Will globalization be forced to retreat in the face of growing disillusionment and dangers such as terrorists' who abuse open borders and easy economic transactions? There is, of course, a precedent for such a decline in globalization. Between the two World Wars, free trade and the free movement of people did slow to a crawl, thanks to the raising of tariff walls and a closed door to immigration. But those restrictions did not dampen the same four basic motivations - conquest, search for prosperity, proselytizing and curiosity - that have driven globalization. The Allied victory against the Nazis and Japan, in fact, reopened the flood gates of globalization, giving a further boost to trade and travel.
To be sure, many issues could throw a wrench into the engines of international integration - issues like the growing anti-immigrant sentiment in Europe, the West's farm subsidies and intellectual property rights concerns, and the tightened visa policies of the US since Sept. 11. However, the secular trend of people connecting with the world would be hard to reverse. The search for prosperity still drives businesses to expand beyond their borders and consumers to buy the best at an affordable price, irrespective of the country of origin. The same curiosity about others that led the likes of Ibn Batuta to leave home leads millions to travel, to watch foreign movies, eat different foods and enjoy international music and sports events. The biggest difference between the globalization of the past and that of today lies in its visibility and speed. The accelerated speed of global interaction has telescoped its impact and the global spread of the media has made it instantly visible - something that in the past happened in slow motion and often out of sight. With all its promises and pitfalls, the historical process of reconnecting the human community is here to stay and increasingly visible and increasingly a challenge. Our task - whether we are citizens, scholars or statesmen - is to understand and manage globalization, doing our best to encourage its favorable aspects and keep its negative consequences at bay.
Nayan Chanda is editor of YaleGlobal Online. His essay does not reflect the view of the Center for the Study of Globalization.
Rights:
© Copyright 2003 Yale Center for the Study of Globalization.
The exponential growth in the exchange of goods, ideas, institutions and people that we see today is part of a long-term historical trend. Over the course of human history, the desire for something better and greater has motivated people to move themselves, their goods, and their ideas around the world.
Since the first appearance of the term in 1962 'globalization' has gone from jargon to cliche. The Economist has called it "the most abused word of the 21st century." Certainly no word in recent memory has meant so many different things to different people and has evoked as much emotion. Some see it as nirvana - a blessed state of universal peace and prosperity - while others condemn it as a new kind of chaos.
If properly defined and applied, the "g-word" actually does have some utility. It can best be understood as a leitmotif of human history. It is a trend that has intensified and accelerated in recent decades and come into full view with all its benefits and destructive power. Just as climate has shaped the environment over the millennia, the interaction among cultures and societies over tens of thousands of years has resulted in the increasing integration of what is becoming the global human community.
Globalization - defined by Webster's dictionary as a process that renders various activities and aspirations "worldwide in scope or application" - has been underway for a long time. Thousands of years before the root word for this concept - 'globe' - came into use, our ancestors had already spread across the earth. In fact, the process by which they migrated and populated all the continents except Antarctica was a kind of proto-globalization. Some 50,000 years ago early forms of homo sapiens, who developed in east Africa, began to travel to the far corners of the world, including to the continents of North and South America. Rising sea levels at the end of the ice age separated the Americas from the Eurasian land mass, creating two worlds that were now cut off from each other. They would not be reconnected until Christopher Columbus's serendipitous landing on a Caribbean island in 1492. That same year a German geographer, Martin Behaim, built the first known globe as a representation of the earth.
The reconnection was called the 'Columbian exchange,' and it is celebrated as a landmark in the history of globalization. The discovery of the New World brought together peoples who had been separated for over 10,000 years. No less significant has been the exchange of plants and animals. A Peruvian tuber, the potato, has become a staple throughout the world, Mexican chili pepper has taken over Asia, and an Ethiopian crop, coffee, found new homes from Brazil to Vietnam, to name just a few. In the intervening period, societies have not only evolved in radically different ways and developed different economic and political structures, but they have also invented different technologies, grown different crops and, most importantly, developed different languages and ways of thinking. That diversity makes the job of reconnecting civilizations both challenging and rewarding.
Historically there were four main motives that drove people to leave the sanctuary of their family and village: conquest (the desire to ensure security and extend political power), prosperity (the search for a better life), proselytizing (spreading the word of their God and converting others to their faith), and a more mundane but still powerful force -curiosity and wanderlust that seem basic to human nature. Therefore, the principal agents of globalization were soldiers (and sailors), traders, preachers and adventurers. Signs of trade in the dawn of civilization can be seen in old seashells carried deep into the interior of Africa. Thousands of years ago traders carried goods from one part of the globe to another across oceans. Missionaries traversed deserts and mountains and sailed the seas. The spread of Buddhism from India to Indonesia led to the creation of the Borobudur temple, which is one of the first monuments of globalization. From the Chinese Buddhist monk Faxian's journey to India in the 4th century, to the Arab explorer Ibn Batuta's travels to Europe, Asia and Africa a thousand years later, adventurers have continued to find new frontiers and establish connections among far-flung societies, cultures and economies. Even though travel was slow and dangerous, ambitious and acquisitive leaders - from Alexander the Great to Genghis Khan - ventured far from home and brought new lands under their sway. Conquest meant globalization in both directions, since the rulers often ended up being as influenced by those they ruled as vice versa.
The cast of characters whose drive and determination have established links of both domination and cooperation has changed with times. Small bands of traders carrying their wares on their backs or in boats have been replaced by giant enterprises, starting with the Dutch and British East India Companies in the 17th century. In place of solitary pilgrims and priests have come vast religious organizations that spread their beliefs, along with their languages, literatures and architecture. The few intrepid adventurers and travelers of past centuries who brought distant societies together have given way to thousands and even millions of refugees and immigrants fleeing across borders, as well as hundreds of millions of tourists jetting around the world. All these comings and goings deepen and broaden the connections among far parts of the world and facilitate the transmission of goods, ideas and cultures.
The commercial history of the past five hundred years is marked by other trends and transactions that have strengthened the bonds of interconnectedness. The rubber plants uprooted from the jungles of Brazil and transplanted in Malaysia by British colonialists in the first years of the 20th century provided the raw material for the tires in Henry Ford's Model T; the indentured rubber tapper from China and India altered Malaysia's ethnic composition forever. The introduction of new crops like corn and sweet potatoes from the New World had a dramatic impact on demography. For example, the growth of population in China, which had been held in check by the shortage of irrigable rice fields, got a boost from new crops that could be grown on marginal soil. Similarly, Chechnya's population grew apace after the arrival of corn from the New World.
From the Roman empire, to Pax Britannica two centuries ago, to the Pax Americana of today, the power of super states has been another force changing the nature of interdependence. In the emerging global supply chain that now feeds consumer production worldwide, Western and American multinational corporations have taken a lead role.
The expanding circle of free trade has boosted economic growth and spawned a burgeoning middle class, which, in turn, has increased consumption of globally produced goods and rise in international tourism. Most striking have been the world's two most populous countries, China and India. With rising income and greater consumption has come more personal freedom and a growing demand for accountable government. Even though the vast majority of the world population is still poor, the ideas of democracy, human rights and press freedom have spread. The percentage of countries which hold multi-party elections to choose their governments has grown from less than thirty percent in 1974 to over sixty percent of the 192 countries in the world.
The most powerful force for transmitting the ideas of democracy and human rights across borders is the revolution in information technology in the second half of the 20th century. The telephone, television and the Internet have been the key tools. In the late 19th century, it took Queen Victoria sixteen and a half hours to send a message of greeting across a transatlantic cable to President James Buchanan. Today vast amounts of information in multiple formats - text, voice, video - are transmitted at the speed of light. Moreover, a three minute call from New York to London costs less than a dime, instead of the $300 it cost in 1930. This dramatic drop in the price of telecommunications has made the benefits of the information explosion available to much of humanity.
Meanwhile, innovations like satellite television have connected people's emotions across borders and oceans: the news of Princess Diana's death flashing on cable TV's immediately elicited wreathes of flowers from around the world. The free flow of information is also helping bridge the political divide: September 11 triggered a candlelight vigil among young Iranians. But it has also been hardening attitudes along ideological boundaries. The Arabic-language satellite station Al Jazeera's live broadcast of Israeli-Palestine violence has widened the gulf between Arabs and Israelis.
The falling cost of communications and transportation has boosted economic growth while literacy and better health care have improved quality of life. People the world over are living longer and healthier lives, while the number of people living in poverty has dropped in most regions (though it has increased in Africa and South Asia).
Yet faster growth has its cost, too. The reduction in poverty worldwide has negative environmental consequences. Close to one percent of the world's rainforest is disappearing every year because of expanding agriculture and trade in forest products. The closely knit global communication network that makes growth possible has also made the world as a whole more vulnerable to everything from disease and mischief to terror. HIV infection in humans developed in Africa and South America but has spread to the entire world, now infecting some 14,000 people each day. In 1997, in barely five hours the "I love you" computer virus released by pranksters in Manila wreaked $700 million worth of damage worldwide. The September 11 hijackers made use of electronic transfers of funds to finance their operation. They also relied on the Internet to coordinate their moves and buy airline tickets. Since the attacks, Osama Bin Laden's favorite means of communicating with the world from his cave has been satellite TV.
Not that any of this mixture of the good and the bad is new. Throughout history, the introduction of breakthrough technologies has brought disruption, and created winners and losers. When the Old World connected with the New World through colonizers and explorers, new pathogens like small pox and influenza caused a "demographic holocaust," killing three out of every four Native Americans. The colonization of the Americas and vast parts of Asia, Africa, the Middle East and Latin America, has destroyed traditional social structures and political power while speeding up the process of economic integration. The need for labor to mine silver and work the plantations resulted in the transfer of some 10 million slaves from Africa. On the other hand, the economies of Europe and Asia boomed, fuelled by the flow of precious metals and new commodities.
No other country has played as significant a role in reconnecting the world as the United States, itself an early product of modern globalization. A vast majority of some 60 million people who left their place of birth in the most intense period of globalization in the late 19th century went to the US. Immigrants and slaves built the richest nation in history. They drew upon world resources - starting with the water mill and steam engine technology from Britain - and emerged as a leading innovator and the most potent engine of globalization. With the American victory in the World War II Pacific arena and the launch of the Marshall plan, US economic and military power has spread to far corners of the world, culminating in the end of the Cold War. The fall of the Berlin Wall symbolized the end of a global ideological division and gave a boost to the latest burst of globalization itself. It is no wonder many around the world see - and resent - globalization as a euphemism for Americanization.
At the same time, the end of the Cold War has brought into sharper focus the other huge chasm that exists between the rich and the developing nations. While globalization has created unprecedented riches, many people have also been left mired in poverty. Industrialized countries with developed infrastructure, institutions and education, and middle income countries which opened up the economy have benefited most from globalization, but the poorest countries have not grown, or in some cases have even sunk back. Thus despite the overall fall in the rate of poverty, close to a third of the world population still lives in utter poverty without access to electricity or drinking water. The gap between the rich and the poor countries and between the wealthy and the indigent within countries has also widened. The rules of global engagement that have evolved, and the institutions that manage them - from the International Monetary Fund to the World Trade Organization - reflect the power imbalance between wealthy and poor nations.
Thanks to the wider diffusion of information, today's have-nots are more aware of the gap between themselves and the rich West, and between themselves and Western-backed domestic elites. This consciousness can be a powerful source of resentment and protest, such as the anti-American demonstrations from Venezuela to the Philippines. Overt or subliminal political and cultural messages carried with goods, ideas and entertainment from the developed world have added to the sense of disruption in many traditional societies. Combined with the misery and misrule in many countries, the bright lights of the West lure many to seek their fortunes elsewhere. The rising tide of illegal immigrants washing over the developed countries has become a major concern. The reconnection of the world through goods and ideas has also evoked conflicting responses - from admiration to bitter nationalistic and religious resistance. While students in Iran clamor for an American-style life, many in the West oppose globalization as the symbol of iniquitous free market capitalism. Many people around the globe also see a Western-led globalization aimed at destroying Islam.
What does all this mean for globalization? Will globalization be forced to retreat in the face of growing disillusionment and dangers such as terrorists' who abuse open borders and easy economic transactions? There is, of course, a precedent for such a decline in globalization. Between the two World Wars, free trade and the free movement of people did slow to a crawl, thanks to the raising of tariff walls and a closed door to immigration. But those restrictions did not dampen the same four basic motivations - conquest, search for prosperity, proselytizing and curiosity - that have driven globalization. The Allied victory against the Nazis and Japan, in fact, reopened the flood gates of globalization, giving a further boost to trade and travel.
To be sure, many issues could throw a wrench into the engines of international integration - issues like the growing anti-immigrant sentiment in Europe, the West's farm subsidies and intellectual property rights concerns, and the tightened visa policies of the US since Sept. 11. However, the secular trend of people connecting with the world would be hard to reverse. The search for prosperity still drives businesses to expand beyond their borders and consumers to buy the best at an affordable price, irrespective of the country of origin. The same curiosity about others that led the likes of Ibn Batuta to leave home leads millions to travel, to watch foreign movies, eat different foods and enjoy international music and sports events. The biggest difference between the globalization of the past and that of today lies in its visibility and speed. The accelerated speed of global interaction has telescoped its impact and the global spread of the media has made it instantly visible - something that in the past happened in slow motion and often out of sight. With all its promises and pitfalls, the historical process of reconnecting the human community is here to stay and increasingly visible and increasingly a challenge. Our task - whether we are citizens, scholars or statesmen - is to understand and manage globalization, doing our best to encourage its favorable aspects and keep its negative consequences at bay.
Nayan Chanda is editor of YaleGlobal Online. His essay does not reflect the view of the Center for the Study of Globalization.
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© Copyright 2003 Yale Center for the Study of Globalization.
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