Human Capital and Local Economic Constraints

In my work as a freelancer and service provider, I frequently find myself in competition with overseas talent whose rates don’t even meet minimum wage requirements in the United States.  While I am all for supporting the global economy, it is impossible for me to meet their prices.  Sometimes my clients decide to go for the lowest cost bid, even though they would prefer to work with me … or so they say.  And sometimes my clients return to me with a partially completed project and a story to tell.

What is funny about this is that there are also overseas buyers who know they could acquire talent for a lower rate who grasp the importance of working with someone who is readily available and also has skills that meet the needs of their projects.  I’ve delivered projects to business owners in third world countries who admitted this was true.

In the early 1990s, when corporations began to shut down divisions of their companies and eliminate jobs, to subsequently open them up again on foreign soil where labor was cheaper, there was a public outcry.  Corporations were accountable only to their shareholders, however, so the devaluation of human capital became a common method of meeting those demands.  And what has been the effect on the global economy?  It is my opinion that liberal credit policies are not the only contributors to the current crisis.

Wikipedia defines Human Capital as being the stock of skills and knowledge embodied in the ability to perform labor so as to produce economic value.  The wiki goes on to say that it is the skills and knowledge of a worker acquired through education and experience.  I acknowledge that some overseas service providers have equivalent skills, education and experience to a US based service provider.  I also acknowledge that some overseas talent fall far short of the line drawn in the sand.

Until the effect of offshore outsourcing begins to affect your income, it is easy to explain away choices that keep a local service provider from working with you or declare that US labor prices need to be lowered so offshore competition is healthy.  I value your insightfulness and honor your decisions.  After all, you are in business and the economics of your projects balanced with your sales will define the return on your investment.

I would like to present another side of the coin for your consideration.  If your project is intended to target the market whose labor rates you feel are inflated, your sales may be affected because your target market has to make difficult choices about how to allocate the income they are able to attract.

In the end, there always is a balance to things.

Everything’s Relative! (The Relevance of Blogging to your Online Brand)

It’s true; I came of age during the 60s. While this places me in some people’s stratospheric age groups, my age is merely a number to me and I’m thrilled to have grown up in such interesting times. Being a Baby Boomer surrounded by Hippies and other sorts of rebels brought many ideals to my purview … some more palatable than others but each of them born from a cry for freedom by my generation.

After recently re-theming my GetIncomeBlog.com, my interest in writing to it has been renewed, along with the traffic that comes to my site. I use several tools to determine how you all get here and, during the past month, the viewership statistics that I’ve been monitoring inform me that there are folks out there who appreciate my articles. Seeing what keywords you’re using is also fascinating.

I don’t write any of my articles to obtain your admiration, however. I write them because of a conversation I’ve had with newer online marketers or offline business owners has reminded me of something that will help them and want to pass along this information to you too. Whether or not you are a grizzled veteran, reminders about how things work in business and the entrepreneurial world is helpful.

I read such an article myself today at Yaro Starak’s blog. This young man is brilliant in his writing and has really done well for himself by blogging. I was unaware of this site until today when I was evaluating a competitor’s backlinks. Even though the article I read at Yaro’s blog wasn’t brand new, it spoke to many things that I’ve been writing about lately.

A colleague recently opined that a blog was nothing more than an online diary. Network marketers, BizOp chasers, and another group of business people whom I will lovingly refer to as “Elitists” tend to say that blogging is not important. But people like Yaro convince me and others who are determined to establish an Online Brand image that having a blog with high-quality content is essential. I can’t think of one reputable top gun marketer who isn’t using a blog as a component of their branding strategy.

But let’s get back to the statistics on my blog. On a “bad day” here at GetIncomeBlog.com, I am getting about 5 – 10 times more traffic that I used to get on a “good” day and I’m just beginning to ramp up. On a “bad” day, I spend very little time thinking about the “low” traffic volume. I merely smile and tell myself that everything is relative … a canon of my youth.

What is Leadship to an Entrepreneur?

Leadership is a topic of interest when one is working for a wage.  In that context, a leader is defined by rank, company holdings or some other arbitrary definition of success.  When the transition from wage-earner to entrepreneur occurs, leadership takes on a little different connotation.

The life of an internet entrepreneur varies by their interests, passions and motivations.  It is entirely possible to build a lucrative business that requires no more than you, an internet connection and time.  If the product is not digital, you certainly will become embroiled with inventory management, packing and shipping.  Maintaining a high level of customer service is critical to your success.  Digital products or services are a less labor intensive way to be an internet entrepreneur but your responsibility to support questions or concerns from customers is still a factor.

If you are a wise entrepreneur, you are building a solid relationship with those on your list.  Because you have gained their trust, people will begin to follow your advice and forward your recommendations to their friends.  This brings more conversions and income your way.    Your reputation will be enhanced by consistently introducing high-quality products and services that you know your followers will appreciate.  Congratulations,  you’re a leader!

As your visibility and reputation gain momentum, new opportunities will present themselves that can be fun and lucrative.  If an entrepreneur has an established list or has grown a support team, veering off to a new interest before laying appropriate groundwork with your group can cause confusion and discontent … and affect your reputation in a not-so-good way.  This is not the sort of visibility that you want as an business person.

Leadership involves communicating clearly with all the stakeholders affected by the decisions that you make.  If you behave rationally and responsibly, your fans will always sing your praise.

Five Rules To Live By When Hiring A Writer

This is a guest post from Anne Wayman, who is a freelance writer, ghostwriter and blogs about writing at aboutfreelancewriting.com, a blog for freelance writers. She’s also taken all three of Yaro’s programs, Blog Mastermind, Membership Site Mastermind and Become A Blogger Premium (yay Anne!)

So You Want To Hire A Writer?

Until you’ve actually worked with a writer you have no way of knowing how well that writer will write for you. Even when you’ve checked every reference, and read every sample, a writing project can still go wrong.

As a writer who has been hired by many clients, I have developed five questions that when answered clearly almost always result in a satisfied customer.

It boils down to this…

The writer needs to know exactly what you want written.

Sound obvious? Good. I have, however, found some clients don’t understand what they need or how to communicate it.  Read the rest of the article here.

Career Cogwheels and Cul-de-Sacs

There is little doubt that times are tough.  Personally, I know many people who have been out of work for extended time periods, have been forced into bankruptcy, or have lost their homes through foreclosure.  All their stories are all very different but, in every instance, the root cause was attributable to the fact that they held onto some belief that doing things the way they’d always done them would continue to work … a definition for insanity, in some circles.

Personal belief systems can keep us stuck so why not turn that to an advantage?  Believe that change is critical in order to thrive in the face of adversity.  Granted, basking in the things that we are familiar with makes us feel more comfortable but isn’t it time to confront the awkwardness of change and try something new?

Orchestrating a significant change in your life takes some amount of confidence along with a dash of creativity and perseverance on the side.  But there may be more important ingredients that you must NOT include in your career shift recipe, which would be to subtract your mental image of what you do along with the ideas that your family and friends have about what will work for you.

Recently a friend of mine, who has been a nurse for over 40 years, offered this bit of profundity while ruminating about a career change in her 50s.

“The more that I let go of, the closer to no thing I will be”

When we hold onto roles, like having a job or being jobless, our freedom to choose a new life is limited by the belief of what we are.

Why not try an experiment at your next social outing?  When someone asks you what you “do”, answer their question by listing the things that you are passionate about doing, rather than providing the rote answer that they are expecting.  It might give them pause but it also might expose you to a like-minded person who is interested in one of your passions that they have considered turning it into a source of sustainable income.

As for the people that say “Uh huh…” and walk away, let them rotate in circles of  small talk with less passionate people.  This experiment is not about making anyone feel comfortable that you are a “normal” person.  It is about shifting your own mindset and visualizing the possibilities of your passions as a possible source of future income.

Laughter and My Story Marketing?

Listening to the Prairie Home Companion program today, I experienced a bit of home sickness. The program aired from the Minnesota State Fair. As Garrison Keillor spoke of fall, apples, harvest moons, and the fair, all the sights, sounds, and smells from my home state and that event rushed to my senses. These are all pleasant memories. You can take the girl out of Minnesota but you can’t take Minnesota out of the girl, I guess.

Garrison Keillor is a delightful story teller. He may even be remembered with the likes of Mark Twain, eventually. His stories have a way of creating empathy for his predicaments and the laughter that bubbles up when imagining his scenarios is totally spontaneous and impossible to suppress.

How does this relate to Online Marketing? We’ve all heard of “My Story Marketing” by now. This is a method used to evoke empathy, build excitement and gain sales as a result. I’ve sure read some long-winded sales letters in my day. None of them were happy stories, like Garrison Keillor’s witty tales, and most were so tedious and predictable that I didn’t even finish reading them, let alone feel compelled to press the buy button.

In fact, the recipe for “My Story Marketing” is to begin with a problem that you have faced in order to grab people’s attention. After doing this, you can explain what you’ve done to effect a change and how your life is now. Supposedly, this will inspire your visitors to buy your product or join your business. Having never tried it myself, there is no way to know how effective it really is but there are enough proponents of the tactic that it is worth evaluating.

In my former career as a Realtor®, I learned that there were two ways to write compelling advertisements. One was to use a headline that evoked fear.  The other type of headline permitted people to imagine or dream.

Statistically, most of my guests came to an open house because they saw the sign while they were in the neighborhood or were neighbors who were merely curious to see the inside of the house but, in my experiments with print advertising, I found that using the positive headline drew more people in, if they came as a result of seeing the ad. If “My Story Marketing” is effective, it would be interesting to see the split test results, assuming they tried a page with a positive and happy story too.

So let’s apply my real estate marketing experiment to Internet Marketing. When we have internet real estate, we use many different methods to bring our websites to the attention of surfers. In a way, some of our website traffic is similar to people driving by an open house sign and deciding to stop in along their way. How are they affected by their visit?

Generally, you have less than a minute to entice someone to stay at your site and have a look around so the look and feel of your site is your curb appeal. This includes color, font, image, and layout choices. If your page is too slow to load, uses garish colors, or has too many blinking ads, visitors will abandon it quickly. But that is aesthetics and one person’s “ugly” is another person’s “beautiful” so you’ll need to experiment with things to see what works best in your niche.  More importantly, look and feel is not what helps you to get income from your website.

For several reasons, the most important part of your page is your content. The area above the fold (i.e., seen without the need to scroll down) is critical real estate so you need to use it wisely. Do you want to frighten your visitors into reading on and possibly taking action or would you rather build a relationship with them established through interest, truth, value, and trust? From my viewpoint, the latter goes miles further than the former.

I’m advocating that Internet Marketers start creating “My Story Marketing” stories that are entertaining. We all need more joy in our lives, don’t we? Enlightenment or laughter must be equally compelling and writing about things like that certainly is much more fun for the author too. Current studies indicate that leveraging humor can lead to a potentially big payoff. Social scientists have long documented that people who are perceived as being witty, clever and funny are destined for popularity and greater success in their work and relationships.

If you actually have had a difficult problem and your business or product has resolved it, by all means write the traditional “My Story Marketing” story. I caution you to be honest in the results you claim, however. Credibility is very easy to lose and nearly impossible to recover.

Living The 2-Hour Workday: How To Create Event Independent Income Streams

In the previous article on living the 2-hour workday I introduced the concept of travel buffers, cash created either through saving or selling assets that is designed to give you a buffer of capital you can comfortably spend if you need to while you travel.

Travel buffers are mostly for piece of mind so you can relax while you travel or use in case of emergencies, but ideally speaking it’s better if you don’t dip into your capital while you travel. In order to facilitate this, you need some form of consistent income streams that are greater than your total expenses, including costs to travel.

What Is Event Independent Income?

My largest source of income has come from significant events, either selling an asset or conducting a launch for a new product.

There’s an inherent weakness with this type of income – you have to do something, often significant work, to get the result, or once you do it’s difficult to repeat, for example once you sell an asset, it’s gone.

Conducting a launch is definitely NOT two hour a day work, it takes a lot more than that. Depending on how you travel it’s quite possible to integrate periods of time where you conduct a launch, for example I did a reopening campaign for Blog Mastermind while traveling in Toronto, resulting in well over six figures in income. However to complete the work required to conduct the launch, I had to settle in Toronto for a summer, renting a house and effectively living there as a local.

You can choose to travel, stop and work, then travel some more, if you depend on event income like launches, but if you really want true flexibility and never want more than a two hour a day work commitment, then you need to develop some event independent income streams. In other words, you need money that is either completely passive, or nearly-passive, consistent as a result of working only two hours a day or thereabouts.

The challenge with this sort of money is keeping it consistent. So many systems for making money online are fantastic as one-hit-wonders, and they work again and again in different niches, but the problem is the amount of ongoing work required to keep things going or to get started in the first place.

Sure you can outsource much of your work (I’ve got a couple of great podcast interviews about outsourcing coming up soon), which is a great strategy especially when you have a system that is already making money, but it takes time to do this and still you have the challenge of always staying one step ahead of the market or finding new markets to enter once one dries up, or the competition catches up.

In my case I’ve always had a solid independent income stream that’s served me well for almost ten years now.

So what is it? Read on to find out…

What’s in a Name?

Frequently we forget the importance of Brand Equity. As internet marketers, that brand is not a business opportunity or a company we may have chosen to represent. While those things may assist us to get income, they are tools we use. By carefully managing the online image that is our name, we build potential for a future we cannot envision today. Nothing is more important than protecting our online brand image.

It may seem a little obsessive, but I set up Google Alerts for my name years ago after learning that my Real Estate clients were Googling me. That also heightened my awareness of what they might learn about me. In that instance, they were interested to learn of my artistic pursuits but, frankly, it didn’t impress me that this was the most prominent data they could locate. Energy was diverted to changing that.

The same tactics that I used to erase my Real Estate career from page one of Google will work for you if you are just starting out online. Immediate results were achieved by interacting on forums and commenting on blogs. Ensure that your posts are relevant to the topic and add value and always include your name in a signature block.

As an Online Branding Consultant and WordPress Website Designer, I’m fully aware of branding strategies for companies. Using education, experience and business acumen, I’ve helped many people identify and implement their online branding strategies.

To assist those of you who have not studied business, it might be important to explain the four different types of branding strategies that are used.

Single brand identity is as it says a separate brand for each product. By way of example, if you have a company with several products, you would develop each product identity as a stand alone brand name. Hershey does this by having product groups, but each product name is name is much better known. Most of us know that M&Ms are a Hershey product but do we automatically relate the Hershey name to Twizzlers or Heath Bars? The resources required to manage multiple unique product brands must be considered if this is the strategy you are choosing for your business.

When a company uses its name for all their products, they have implemented an umbrella branding strategy. This is the approach that is employed in my business model for it allows flexibility and ease of brand management. More famous examples exist, however. Sony, HP, Linksys, and GE, are household names for their product lines while the model numbers are obscure things we only look at when filling out a warranty card or contacting technical support.

Multi-brand categories are different brands for different product categories. In this scenario, the same company has different company names for their product groups. As a former Minnesotan, Pillsbury comes to mind. Through acquisition, they grew from milling flour to a large conglomerate owning several restaurants and store food brands. Mergers have returned the company to their core competency of baking products and they have since divested all their restaurant holdings.

Lastly, a company might choose to have a common name stem. This is useful for leveraging brand loyalty. Nestle has done this with Nescafe, Nesquick and Nestea.

What is a brand and why should you protect yours?  The marketing mix should focus on consistency and quality. Even if your business is primarily affiliate marketing, Top Gun affiliate marketers like Ewen Chia and Michael Cheney have instant access to their loyal lists to get income whenever they want it due to the careful management of their names and the products they have chosen to endorse.

Your brand is your reputation and, if you manage it well, it will serve you for years to come.

The problem with positive thinking

All the evidence I’ve seen shows that positive thinking and confidence improves performance. In anything.

Give someone an easy math problem, watch them get it right and then they’ll do better on the ensuing standardized test than someone who just failed a difficult practice test.

No, positive thinking doesn’t allow you to do anything, but it’s been shown over and over again that it improves performance over negative thinking.

Key question then: why do smart people engage in negative thinking? Are they actually stupid?

Read the rest of the article here.

Andrew Warner Reveals How He Created A $30 Million Dollar Internet Business

Click here to download the audio-only MP3 [ 64 MB ]

Andrew Warner is passionate about entrepreneurship and loves talking with his fellow entrepreneurs. He came to my attention when he recently interviewed Gideon Shalwick on his current blog, Mixergy, which features tons of great video interviews with leading entrepreneurs.

Read the rest of the post here.

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