Zoom in on Zettabytes

 Most of us don’t think twice about what is involved in maintaining the platforms the Social Networking and Social Bookmarking potpourri of sites that we use each day in our online businesses.  These days, the focus is mostly on Twitter, Facebook and YouTube.  Other useful sites are LinkedIn, StumbleUpon, Flickr, MySpace, and Last.fm … to name a few.  Then there are he multiple free email accounts we have. 

When it comes to our home computing environments, we unconsciously manage disk space every day.  If we have self-hosted blogs, we look for and choose hosting vendors who permit us to have unlimited storage for our websites.  Yet, we take the storage of our Tweets and posts for granted. 

Every piece of content must be stored somewhere.  In the early days of email, I was part of a group who studied email etiquette with interest.  We discussed computing capacity issues, like storage, too.  A friend of mine, who worked for EMC, wrote a fascinating white paper about the exponential growth of data storage.  Her predictions have been exceeded by mounds and mounds and mounds of data.  None of us foresaw the advent of micro-blogging in 1985, let alone text messaging on a cell phone!  :)  

GetIncomeBlog.com | Zoom in on ZettabytesRecent research by IDC revealed that our digital universe grew by 62% during the last year alone.  The stunning amount of storage online at the time of the study was 800,000 petabytes, a measure better described at this link.  In short, it is one million gigabytes.  By the end of 2010, it is predicted that there will be 1.2 zettabytes online.  A zettabyte, incidentally, is roughly half a million times the entire collections of all the academic libraries in the United States.  Whew!  And I’m worrying about a few gigabytes around here.  :D  

Computers and the internet have made our lives easier, much more public and availed methods to get income online for some of us too.  Pages upon pages of material sifted and listed, categorized and presented for our reading pleasure with a few keystrokes and a button click.  Since our content is cached and stored online indefinitely, one begins to wonder if our content will outlive our grandchildren.  Who can say?

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Most Memorable Mother

May 9, 2010 by Marj Wyatt  
Filed under Featured, Marj Wyatt's Musings

It’s Mother’s Day in the United States.  This is a holiday reserved for the women who gave us our lives and, if you are as fortunate as me, the person who believed in us so much that we knew we could never fail.  Today, I will tell you some of the most memorable stories that I have about a remarkable woman who was my mother, my mentor, and my friend. 

My mother was born in 1926, which means she grew up during the depression.  She was the oldest in a family of 12 children and, because times were difficult, her father expected her to quit school so she could help earn money to feed the family.  Mom didn’t honor that request for she knew it would inhibit her future possibilities.  At the age of 15, the same year that World War II began, she left her family and moved into a girl’s home so she could finish high school and make something more of her life.  Her courage and focus were quite admirable. 

Perhaps one of the bravest things that my mother decided to do was to have a career other than being a homemaker.  I know this doesn’t sound amazing at all these days but, during the 50’s, this was not popular.  Many of  the suburban housewives whispered among themselves about how she was neglecting her duties as a mother and a wife.  Some of those women even prohibited their children from being friends with my sister and me but, in my eyes, nothing could have been further from the truth!  Mom and Dad explained that she was going to work so we could have greater oppotunities.  Her working created income opportunities for me around the house, which taught me to be enterprising, industrious and responsible.

Mom took a job as a secretary, which was about the only position that women were allowed to have at that time.  Within a couple of years, she was promoted to the position of Wholesale Buyer which caused a bit of conflict within the secretarial pool. My mother loved what she did, and she was quite good at it too.   Twice a year, she would travel to New York City and negotiate large purchases for her company.  I got to tag along with her a couple of times.  Having the chance to see her at work was nothing short of inspirational.  She was well-respected and a tenacious negotiator.   

One of the fondest memories that I have of her is a reaction she had to an editorial in the local paper.  Some man had written that women should not work outside the home and, if they did, that they should stick to “jobs for women” and stay out of the more challenging business roles because men were better suited for those sorts of positions. 

Mom had a fit!  She went straight to her typewriter and prepared a response that was published by the paper.  This created quite a stir in the family, since she had used her married name on the letter.  I will never forget listening in on a debate between my mother and grandfather, who was unhappy that she had used “his” name on such a controversial subject.  She stunned him to silence when she retorted, “It’s my name too!”   In that moment, she taught me that it was OK to stand up for what you believed in and be who you are, regardless of the circumstances.  Remarkable!

I’m chuckling as I write this … and experiencing a little emotion too.  I miss my mother very much.  :(  

Although Mom didn’t always agree with my ideas as a youth, she never told me I was wrong.  In the truest sense of the word, she mentored me by discussing the pros and cons, just as she would with any adult.  Those conversations always ended with her telling me that she trusted my judgment, which was empowering.  I got to test my strategies and, if something didn’t work out the way I expected, she never said, “I told you so.”  She would offer her advise and recommend solutions but it was always up to me to decide what path to choose.  That was her greatest gift to me.  Over the years, her strength became my will. 

Her independent style and tireless encouragements are factors that still motivate me today.  Her belief in me allowed me to rely on my good instincts, which has been the basis for every decision that I’ve made in my career.  She taught me to disregard the nay-sayers and follow my own path.  This is  something you will feel in many of my articles and it is one of the primary reasons that  GetIncomeBlog.com was launched in 2008. 

Whether I am writing about following your passions or shutting out the noise around you so you can try something new, my message is always the same; Believe in Yourself first.  It isn’t always comfortable to follow the road less traveled but, if you believe in yourself and your abilities, the pot holes on your path are never so deep that the axle will break on your carriage.  :)  

Mom’s resilience never ceased to amaze me.  Up until the day she went into a coma, a week before her death, my mother’s mind remained sharp, she never doubted my ability to succeed, and she was a good friend to me.  I was blessed to have her in my life. 

So, this one is for you, Mom! 

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PLR Wordpress Websites … Turn Key or Not?

PLR Websites are a tool used by internet marketers as a way to get your site online quickly, complete with content.  If you’ve ever worked with them in the past and have an interest in learning the underlying technologies that make a website work, the instructions and a little time are more than adequate. 

Everyone working on the internet must be aware of the rising popularity of Wordpress.   If you aren’t, feel free to contact me to learn more about how you can leverage this amazing software for your websites, beyond the traditional blog. 

Under the Covers

 Wordpress Websites require knowledge of more than simple HTML to set up correctly.  Wordpress is a Content Management System (CMS) that uses databases for content storage and PHP scripts to access that content for presentation on a website.  Learning how things all work together can be a rewarding journey if you like knowing how things work.  If you have limited experience with technology and become impatient when things don’t go as expected, your project can be less than fun.

 The whole idea of PLR is that you can purchase content, slightly modify it, and put it up as your own.  This permits the ability to begin creating a web presence with a minimum of effort and can also save on expense of hiring someone who can adequately translate your vision into a functional website for a product or service launch.  If your goal is to monetize a site quickly and you lack the base technical skills you need to read into the instructions,  you are likely to be confounded by a PLR Wordpress Website purchase.

 PLR products will give you all of the information that you need about installation, usage and reselling privileges.  There are some generalized guidelines but PLR products do have differences so reading the license for your new software is advisable.

 Wordpress Database and Security Matters

A simple Wordpress installation creates 11 tables, at this time.  Wordpress requires that certain things are set up in order for the software to operate correctly.  These specialized data are stored in various tables within the site database.  The list of items includes a site URL and blog URL, if it is different.

 While reviewing the installation script for a recent project, I saw that the PLR Product had altered the standard Wordpress Installation script, apparently in an effort to bypass the need to make these changes in the database.  All things being equal, uploading the database export to the destination database on my client’s servers was easy.  As I analyzed the data that was stored in the tables, however, I realized that the instructions lacked very important information for truly owning the site and its data.

 Another observation that I made about the setup script was that it didn’t follow secure Wordpress Website installation practices that have been recommended for more than two years.  As we are all painfully aware, website security is critical … especially if it is a source of income for you.

 A new user of Wordpress, who may have been misled into believing it is a one-click install would not have known what to look for, let alone how to change it. 

Wordpress Setup

 No one that I know puts up  a website, Wordpress or otherwise, just for the sake of having a website alone.  At least I hope not!  :)   The whole idea of having a website is that you want traffic to your site so you can share some specialized knowledge, build authority in a niche or campaign about products and services that you might be offering.  Once again, knowing what settings affect the visibility of your new Wordpress website are the key.

 The PLR software package that needed to be installed did not have the privacy settings nor ping list optimized for broad access to the new site.  Indeed, the website was up as predicted but nothing in the installation instructions addressed these critical and necessary changes so it could be found through organic searches and paid advertising campaigns. 

 The Virtually Marj Service team uses standardized procedure for optimizing settings, as well as a standard list of plugins for analyzing and improving traffic to the site.  This is our “secret sauce” so I won’t be laying all of that out for you here but if you’d like to know more about that, you can contact me

To PLR or Not to PLR, that is the question

 PLR Products are a great way to jumpstart your business and website and it is wonderful that people take the time to create them.  As with all business decisions, choosing the “right tool for the job” is an important step along the way.  As for PLR Wordpress Websites, they are not recommended for people who do not have the underlying skills to read into the instructions or who don’t have staff to make them work properly as a business building tool

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Free Programs and Fine Print

Yep!  It happened again today.  I was invited by a Skype friend to look into a free program.  Their claim was that it was free to join and I would not have to pay anything to earn money.  I’ve been around the internet long enough to not believe claims of overnight wealth and to distrust “free” joins but I indulged their request to click on the link anyway. 

Non-English Landing Page

The first thing that I noticed was that the page was in German.  I have a toolbar installed that allows me to instantly translate to English so this wasn’t a huge issue. 

Analyzing the Offer

The first sentence on the landing page was a disclaimer: 

This is no joke and no dream … You get paid money, because investors want to distribute funds.

If you have to begin by telling stressing the fact that your incredible program is really incredible and go on to suggest that investors want to give away their money, I’m immediately suspicious.  Investors want to leverage their money by investing in things which will earn them money.  At least that is what I’ve learned… 

The landing page encouraged me to read the terms and conditions, although I would have done that anyway before filling in any forms.  It’s called due diligence.  :)  

Free Isn’t Always Free

free-programs-and-fine-print-postThe second paragraph on the Terms and Conditions page said this: 

Once you receive the gift, you have to pay into this program.

I didn’t need to read any further.  Clearly, if payment is required to benefit from the program, it isn’t free. 

I responded to my Skype pal by copying and pasting that text into our chat window.  I added that I was a conscientious objector of cash gifting programs and that having to pay into it made it clear to mea that it wasn’t free.  I thought that would be the end of it but they replied that I had misunderstood. 

I re-copied and pasted the same text into our chat window and told them, in addition, that there was nothing ambiguous about the phrase: YOU have to pay into this program

Denial of the Facts in Front of You 

My Skype pal protested by saying that “no one had explained this” to them.  I suggested that reading the fine print before joining anything, free or not, is a personal responsibility … and it is! 

Are you entitled to a do-over if you sign a contract that binds you to a commitment you didn’t understand just because you expected it to be explained to you?  If you are of legal age, the answer to that question is no. 

I’ve worked in a business where contracts were necessary to proceed.  I would spend no less than an hour going over the terms and conditions that my clients would be obligated to once they put pen to paper.  I took pains to explain what their obligations were, as well as the authority they were granting to me as their agent.  I never put paperwork in front of someone who might later claim diminished capacity because they had had a few drinks.  I scheduled the meeting for another time and instructed them to hold off on the beers until after we were finished. 

Not everyone will do this … especially if they are promoting a get-rich-quick-and-easy internet program. 

Money for Nothing? 

Call me old fashioned or jaded, but I’m not of the mindset that money will flow into your bank accounts without applying some effort. 

When I was new to online marketing tactics, I got suckered into things.  We all do.  Once I abandoned the belief that the hype was more than it was and began to focus on things that I enjoyed doing anyway, which could earn income for me, my life has been simplified and I’m having a lot more fun too. 

Many of the people whom I used to communicate with on a daily basis are still chasing the dream of instant wealth and fly-by-night programs.  For them, and for those of you who pursue similar things, I wish you the best of luck and encourage you to return and post your results to my blog. 

There are no Magic Wealth Pills.  The recipe for business success is the same:

  1. List the things that you are interested in doing
  2. Analyze those things to determine if their might be a market for you to leverage
  3. Construct a plan for pursuing that business
  4. Devise a list of measurements you can use to validate your success
  5. Determine the best approach for marketing and promotion
  6. Follow your plan and monitor results
  7. Know when to revise or abandon the plan and try the next thing on YOUR list
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Making a Difference Matters

For those of you who may have missed me, please accept my apologies for having neglected my blog for so long, .  The thrill of operating your own business comes complete with the opportunity cost of having to keep your nose to the grindstone, at times. 

There are some clients whose expressions of gratitude almost makes you feel guilty about getting paid for the job.  I have recently had that experience. 

Here is a quote from a rave that one of my clients just wrote on their blog, about the service they received from me: 

If you are blogger, you know that  your site is not unlike your child.  And when your child is sick, you tend to stop functioning.  You want answers.  You want certainty.  You want experts.  And we got absolutely none of that from our hosting provider Network Solutions.  From Network Solutions we got ticket numbers, escalation promises, and false assurances.  So we panicked and called in the real expert.

Virtually Marj. Wordpress developer extraordinaire.

We love Virtually Marj for the following reasons:

  • She knows her stuff
  • She delivers exactly what she promises on time.
  • She is a human being.
  • I swear that I blushed when I read what they wrote.  :)   If you want to see this post on their site, visit MothersofBrothers

    making-a-difference-matters-postEven though their praise is directed at me, the three things that they noted are essential to anyone’s  success in business so it bears repeating. 

    If you don’t pretend to be good at something that you aren’t, are clear about deliverables and time frames, and  remember to  be yourself, you have a recipe for success.

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    Who Are You?

    January 8, 2010 by Marj Wyatt  
    Filed under Featured, Marj Wyatt's Musings

    When your life changes in a radical way, what do you rely on to keep yourself moving forward? That’s a good question to have a solid answer to, I believe.

    Many people define themselves by the accumulation of their material belongings, their careers, or their family roles. There is nothing inherently wrong with this, unless it is the primary method you use to define yourself TO yourself.

    Take a young parent who immerses themselves in the very important job of being the best parent they know how to be. This can include a lot of sacrifice, especially in the early years. As children get older and more self-sufficient, that dedicated parent can find themselves feeling directionless if they have not maintained perspective on their personal goals in life.

    Another example would be a career-minded person who has devoted themselves to being a loyal employee, which also can include a lot of sacrifice. In these unpredictable and tumultuous financial times, executives and individual contributors alike are surprised to discover that loyalty means nothing when shareholders are demanding better returns on their investments or a private company owner must cut back on expenses to keep their business viable.

    When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one which has opened for us.

    ~Alexander Graham Bell, US (Scottish-born) inventor (1847 – 1922)

    one-door-closes-another-opens-postimg

    When One Door Closes, Another Opens...

    We have choices to make at the time of a significant change. If our moorings are based on a self-perception that can withstand exterior influences, we will embrace the changes and use the opportunity to GROW.

    Goals
    Establish some goals for your new life. Make sure these goals are aligned with your personal passions so they are goals you will enjoy pursuing and bringing to life. Once you have selected goals, find a group of people who share similar interests and hopefully people whom you can look up to so you can emulate their successes and learn from their mistakes.

    Reality
    Appreciate the fact that reality, as you previously understood it, has changed. If this causes you to feel dread, you must find a way to adjust your mindset. Perhaps it could be something as simple as finding at least one thing everyday about the difference that you like better than your previous reality.

    Options
    Know all of your options. If you feel limited in any way, introspect about what is the source of that feeling and create a solution where the problem exists. Truly creative often see a problem seeking a solution long before anyone else. Could that be the purpose of the perceived limitation?

    Will
    Especially for entrepreneurs, there are times when sheer force of will is all that propels you forward toward your goals. If you are willing to believe in your own success, that will make all the difference in the world.

    Perhaps the most important thing to investigate each day is your willingness to get out of bed. It is important to know why you are living and working each day. Write these things down and keep your list near the alarm clock. If you find yourself hitting the snooze button, rather than getting up right away, you might need to make a new list or evaluate your priorities. Face it; If your “whys” aren’t compelling enough to get you out of bed, they clearly aren’t important enough.

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    Are You and Your Business Partners Oceans Apart?

    We’ve all been taught to avoid the truth if we fear that our news has potential to upset someone whom we like and respect, but being honest about your feelings doesn’t mean that you have to be tactless. If we understand and appreciate that everyone has varying degrees of skill with regard to handling feedback, and that they aren’t always in control of their emotional responses, there’s always a way to talk over any issue and reach a reasonable compromise.

    Honesty is the best policy and, in my humble opinion, a lie by omission causes the most harm. The world would be a much better place if everyone was capable of directly confronting differences of opinion and, if these cannot be reconciled, choosing to disagree without the having the discussion escalate to an argument or parting of ways. Over time, I’ve decided that the culprit impeding this outcome is ego … and egos can be so demanding of respect!

    So what can you do if you know you’re onto something and your ideas are repeatedly ignored by your business associates? Do you give up and become resentful or do you try to find another way to get your point across to them?

    You can’t cross the sea merely by standing and staring at the water. Don’t let yourself indulge in vain wishes. ~ Rabindranath Tagore (1861 – 1941)

    You can't cross the sea merely by standing and staring at the water.

    In any business, risk is necessary but risks should always be meticulously researched and measured against your assumptions before making a change. Consider carefully whether or not your idea is too great of a leap to be considered at this time but, by all means, don’t give it up if you strongly feel it can work better than the track you are currently on. With just a little more thought, you may find a way to redesign your proposal that seems less risky to your associates. 

    Only a fool tests the depth of the water with both feet. ~ African Proverb

    Because the river moves around it, a rock appears to be stronger but physics have proven that moving water will prevail and keep its own course over time. After many attempts to dictate the route of the Mississippi River, The Army Corps of Engineers have learned that the river knows its own way and serves no man. :)

    In the confrontation between the stream and the rock, the stream always wins – not through strength, but through persistence.- Anonymous

    Although the process that makes water stronger than a rock is erosion, we aren’t disempowering anyone by gently persisting about something that we know, in our hearts, is a better way to go. There are people who will not pursue any idea that they don’t feel is their own. With theses sorts of personalities, planting the seed of your idea and waiting for them to embrace it as their own usually does the trick, however, it does require that you don’t have a need to be recognized for it. Giving the idea to your business associates from the onset with phrasing like, “Have you considered …”, is an extremely non-confrontational assertion and somewhat of a subliminal command to for them to at least think about your recommendation.

    Bodies of water also give us another metaphor for our business relationships. Many rivers open up to the sea but the sea is its own force and returns tides to the rivers. The mixture of salt and fresh water produces a brackish habitat where creatures from both worlds can adapt and thrive. Using this metaphor, when your original idea is improved upon through your business colleagues’ consideration, blending thoughts can result in a better plan and those who are capable of adapting can prosper more.

    So it all seems to come down to being open and honest to learning and not being attached to the outcomes of your suggestions, doesn’t it? If we can keep our demanding egos out of the way, forward progress is always an option. Whether the progress is a business idea or a shift in how you interact with your associates, a positive change of direction is normally a sign of growth.

    We all know there are times when it is necessary to have a conversation that has potential to become awkward. If you are a good communicator, you can usually find a way to avoid arguments but there are times when the only option available is to agree to disagree. If you are capable of speaking your mind, in spite of any fears, and managing your emotional response to having your ideas rejected, you’ve risen above the constraints that your ego can create.

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    The Secret about The Secret

    James Arthur Ray was featured on Nightline this week. It seems that some of the participants of his Spiritual Warrior Retreat, held in Sedona in early October, died in a sweat lodge exercise at the end of a grueling week of motivational activities. The sweat lodge exercise was mandated after the people had spent days in the beautiful canyons of Sedona, without food or adequate rest, to connect with their inner truth … supposedly.

    Human physiology is fragile. It didn’t seem at all odd that some people might have been dehydrated and unfit to go into a sweat lodge for hours on the heels of their Sedona experience. I’ve wandered through the trails of Sedona. The trails to the vortexes are not paved and most of them involve a climb. As I listened to the statements on Nightline, made by survivors of this experience, as well as from family members whose loved ones had died, I pondered the huge industry that has grown around The Law of Attraction and The Secret over the past couple of years. If you are operating in this niche, you are well advised to monitor the progress of this story!

    the-secret-james-arthur-ray-postimgDon’t get me wrong, I watched The Secret, in the fall of 2007, and the movie was nothing other than inspirational. The underlying message of this movie, and others like it, is that you have the ability to change your viewpoint, and in so doing, have an opportunity to change your life’s course. If you are under the tutelage of a charismatic leader, like James Arthur Ray must be, it’s probably easy to get swept into a belief system that causes you to want the success he says is so easily attainable. And, to his credit, he has a large following.

    The fact that our mental approach to a problem can either resolve it or lead us further astray isn’t new information. In the United States, this was discovered by a couple of drunks as they commiserated with each other over a cup of coffee, so the story goes. The relief these two men felt led them to start a movement called Alcoholics Anonymous (AA) that has helped millions of people all over the world for nearly a century. AA text suggests “stinking thinking” is the source of emotional problems that lead people to make bad decisions, in this case, drinking. In fact, AA could possibly be the very first Law of Attraction program!

    The big difference between AA and programs like James Arthur Ray’s is that AA doesn’t define its membership by the amount of money they have to spend to join. This is written into their 12 Traditions at article six, which is a spiritual tradition recognizing that money, property and prestige can distract an AA group from its primary purpose … to help people.

    James Arthur Ray’s Spiritual Warrior Retreat was selling for a whopping fee of $9,695! This adventure built on a previous product offering called Practical Mysticism which sold for $5,295. The funny thing about reading Ray’s promotional materials is that they are merely sales letters, no different in psychology than the sales letters that compel one to purchase anything they’ve never heard about before. Personally, I doubt that Ray is any different than any other person who knows the truth about mindset; he’s just used his connection to The Secret to create a multi-million dollar enterprise.

    One person might say this is clever. Another might say it is opportunistic. In the end, only James Arthur Ray knows his motivations and, in light of civil suits already filed against his organization after the Spiritual Warrior debacle, with the strong possibility of forthcoming criminal charges, the law will intervene to make judgment. This judgment could lead to a need to regulate the industry which will wash out a lot of self-help charlatans.

    What disturbs me most about Law of Attraction practitioners-for-profit is the disparity of their words against their self-serving style. Last year, I observed this in a “joint venture” where the time I spent developing technology wasn’t recognized as having value and my “partner” asked me to pay for an EFT session. Without exception, every client that I’ve worked with who practices a “wealth attraction” coaching or information business has seemed to be the most tight-fisted and demanding client on my list for, when it comes to completing a project paying the final bill, they will always manufacture excuse after excuse for not producing a final payment when the terms of our contract have been fulfilled.

    Is this indicative of the industry at large? One can only hope it isn’t…

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    The Most Successful Entrepreneur

    October 9, 2009 by Marj Wyatt  
    Filed under Marj Wyatt's Musings

    Yesterday marked the one year anniversary of my new life in the place that I’ve always wanted to live … San Diego, California.  This transition would not have been possible if I had not decided to become an internet entrepreneur and learned what it takes to get income online.

    The year has been personally exciting.  It was delightful to experience a winter without sub-zero temperatures, far too much snow, and long, dark, gray days.  Enjoying bright and sunny 80 degree days for the Holidays, without the temperature being an anomaly, put a smile on my face too.  I haven’t tired of driving through the marvelous mountains while traveling around the area on business and roaming along the shores of the Pacific Ocean whenever I choose to is nothing other than magical.

    From a business perspective, San Diego has opened new doors of opportunity.  For example, I was privileged to attend a local chapter meeting of Glazer-Kennedy’s Insider Circle this evening.  After some power networking and a few business card trades, I gazed around the room to see what sorts of people were also interested in moving their business beyond mediocrity.  Attendees came from all walks of life.  There were lawyers, doctors, building contractors, mechanics, holistic practitioners, artists, and, of course, non-pretentious internet millionaires in baseball caps.  What was most important was one common thread.  Each person in that room was there because they knew that there is always something more to learn.

    Equally interesting to me was one of the motivational posters taped to the wall which read:

    The most successful entrepreneur is the loneliest person in the world 

    most-successful-entrepreneur-postimgI’ve experienced some entrepreneurial success and I totally  understand that statement from personal experience…

    It isn’t that entrepreneurs are aloof or choose to walk alone but the road we are on is certainly a road less traveled.  When the scent which will lead to success is found, it requires fastidious and incisive intellect to hone in upon the source and follow the trail. 

    Sometimes discovery leads to changing strategies or tactics but the rewards are great when things begin to come together.  The path might not be straight forward and seeing around the bend requires occasional leaps of faith, at times.  One of the most important skills you must have is to stay the course and believe in your vision.

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    Human Capital and Local Economic Constraints

    September 24, 2009 by Marj Wyatt  
    Filed under Business Basics, Featured, Marj Wyatt's Musings

    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.

    dollars-down-the-drain-postUntil 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.

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