"You know, it never ceases to amaze me how much people want there Home Business, MLM, AND Internet Business to succeed, but they will never seek out the proper expertise and Knowledge that will Turn there Business around and bring change to their lives.
Even when the world could be falling to pieces around them, because of there 'Old Ways' of doing things... humans will still continue to HANG ON for dear life, and to their ideas or habits, out of pure fear of the unknown.
The sad part is (for those who do that), the other side of that equation are usually $35,000 Per Month, Online Part Time"".
The fact of the matter is, if you are going to succeed in any business On-line, You must first be willing to do two Things:
1) Be willing to try New Thing and Tactic, if the one you have right now is not working.
2) At the beginning stages of your internet or Home based business, you must be willing to invest as much time as possible. You must be willing to research and find out what is out there that is working for other Internet Marketers in you Niche.
This Article is meant to help reduce your mistakes and stop you from wasting your Money, Time, AND Resources, buying Internet Marketing programs from Guru's that hardly know what Internet Marketing is all about. Before we continue, I want to take a little time, to thank you upfront for reading this ARTICLE. I'm sure you will enjoy it and find it beneficial to your business. But first, and foremost who am I? and Why should you even listen to me? What can I truly offer to help you and your business?
I was involved in Internet Marketing for a number of years barely making ends meets; in fact, my Expenditures outweighed my profits by a few thousand dollars over the course of three+ years. No matter what I was told at meetings, /trainings, from On-line Guru's I've Subscribed to or, from the company who's product am selling; nothing, was working. I was told to i.e. make a list of 100 people I know (family, friends, colleagues), maintain your company website, hand out 5 DVD's every day with sufficient brochures to supplement, business cards, etc., etc., etc. These techniques were fruitless and frustrating. Lots of time and energy was invested for little or no results. Nothing worked for me, and it hardly worked for anyone I knew. That's why I am providing this information today. I spent thousands of dollars on tools that always over-promised and under-delivered (and I have a closet full of souvenirs to remind me...ugh!). So I want to give you some great information to help you put some cash back in your pocket OR before you spend it unwisely. Beyond this article, I will be discussing many other subjects and strategies to help you grow you business. Things like:
-- A functional outline for the online marketing of your products and services
-- How to use the 3 greatest business growth tools that you have at your fingertips to your greatest advantage
-- How to position yourself as an expert in your product or service
-- How to find THOUSANDS of people that are demonstrating a need and desire for what you have
-- How to master copywriting skills that will have your prospects watering at the mouth
...But before I get ahead of myself, the first step is to Show you 7 thing you can do now to Place you Home Business, MLM, Network Marketing and Internet Marketing Business on the Fast Track. Enjoy it, and stay tuned for more great Knowledge information to turbo-charge your business.
""7 Simple No-Fail Methods To Earn Yourself Towering 5-Figure Monthly Commission Checks And Rake In Piles Of Cold Hard Cash...Marketing "" Whatever You Want!"" Does that sound impossible? At least a little unbelievable? It's not. It's more than realistic, even conservative. And I'm about to show you why.
1. Target Your Market! Since you can't rely on your warm market for long-term growth, who are you supposed to talk to about your business? The answer: Your target market. Who is your target market? It depends on what you are marketing. Your target market are those people who are most likely to buy from you. You have to resist the temptation to be too general in the hopes of getting a larger slice of the market. That's like firing 10 bullets in random directions instead of aiming just one dead center on the mark - expensive and dangerous if ignored, lucrative and rewarding if heeded. Here are some questions to get you started:
o Are your target customers male or female?
o How old are they?
o Where do they live? Is geography a limiting factor for any reason?
o What do they do for a living?
o How much money do they make? This is most significant if you're selling relatively expensive or high-end products. Most people can afford a $20 bottle of health juice. You can't say the same of a $500 anti-aging treatment.
o What other aspects of their lives matter? If you're marketing a telecom service, your target market probably already have some sort of phone service.
o What is important to them? What are their fears, hopes, desires? Once upon a time, business owners thought it was enough to market their products or services to ""18- to 49-year olds."" Those days are a thing of the past. These days, you have to be specific, and you have to understand what your market looking for.
2. Stop Selling -- Start Sorting It's easy to slip into the habit of convincing people that what we have is legit. We are taught that we have to ""sell"" everyone on our product and opportunity. We have to beg, plead, and follow up endlessly, until they finally relent and say ""yes"". That's a great way to burn out fast. Convincing and selling take a lot of time and energy. It's a painstaking process, and it's very uncomfortable for most people to try and ""sell"". I hate selling. I never sell. I sort. Here's the difference: Selling is trying to create demand, and convince people that they need what you have. Sorting is about finding people that are already interested, and simply creating the urgency to buy from you. Sorting is fun. And it pays much better than selling.
So how do you sort? You sort by filtering your prospects. In your Sales funnel, you design different ""check points"" that require a prospect to take an action before proceeding on to the next phase of the sales funnel. That process weeds out the people that are NOT interested, and leaves you with the people that are interested. When starting, the top of your sales funnel should be a prospecting script that screens and qualifies your prospects. If you design a script that sorts out people that are curious from people who are serious, then you can qualify your prospects, and put the odds in your favor that you are spending your time with a future associate. Really, prospecting is all about sorting, about qualifying, and about spending your time with people that truly want what you have. At this point, you've probably been taught to talk to anyone who will listen to you about your business opportunity, and that's the wrong mindset to have. You should never spend your time with someone unless you know that they are interested or have the tendency to purchase what you are offering. This is why your friends and family doesn't work -- you don't qualify them, and they don't respect your time.
Most of them don't have the heart to tell you flat out that they aren't interested, because they probably care about you. They just don't want anything to do with your business. That's a good thing! There are too many other qualified people to be speaking with that would like to do business with you. Besides, once you are successful, most friends and family members will actually approach you, and want to know how to get involved. Let's say you are marketing a travel service and business opportunity. You could use a very simple script that goes through, qualifies your prospect, and then you can ask them something like ""if I could show you a way where you could travel to Hawaii for free or even get paid to travel, would that be worth about 30 minutes of your time to learn how to do that?"" Then, you know that they have an interest in your business, and in your service.
3. Leverage The Internet OK -- so the Internet gets hyped up all the time about how amazing it is, how fast it can explode your business, blah blah blah. Well - it's true! Make no mistake about it -- the Internet has the ability to explode your business faster than any other tool on the planet. Before we even talk about the Internet, let's talk about your company. Many companies will tell you that they forbid you to advertise, that they have to approve of anything you do if you market on the Internet or anywhere else. This is absolutely true -- if you use their trademark names or the name of the company in your advertising.
That's how you market online without having to have everything run through the ""company"" -you just don't mention the company. You position YOURSELF first, and talk about the benefits that your product can offer. For example: Let's say John Doe is a distributor for XYZ company, and they offer a health juice that helps diabetes. John's natural inclination is to put up a website that says: ""Hi, I'm John Doe, and I'm a distributor with XYZ corporation. XYZ is a great company that is changing lives. They have a juice that cures diabetes! Call me for a presentation!"" This is bad. Really bad.
You might think that John would have to be an idiot to put this kind of stuff on a website or in an ad, but Major businesses have to prevent their distributors from doing this all the time. Their distributors get carried away, and make all kinds of crazy claims to market their product. Let's say John Doe has the good sense to talk to me before he publishes that ad or website. After we chat, he changes things so that it reads: ""Hi, I'm John Doe, and I provide people with powerful information that has been shown to dramatically reduce the chances of developing diabetes. If you are suffering from diabetes, and if you would like to know of a way that could drastically reduce or even eliminate the symptoms, then call me for a free needs-analysis report""
Now this is a totally different ballgame. First, John Doe is not speaking in the name of his company -- he is speaking in his own name. He's not making any crazy product claims, he uses words like ""has been shown to reduce"" and ""could reduce"". He's not blabbering about the company at all, which is good - people like to buy from expertise, and it does John no good to talk about how great his company is, because at this point, HIS PROSPECT DOESN'T CARE. Remember, his prospect is just thinking WIFM - what's in it for me? John is also offers a compelling reason to take action - he is giving a free needs analysis. This is 100% legit with any network marketing company or home-based business. So long as you don't mention your company and make claims in their name, you are protecting them from being sued and legal liability, which is why they publish their policies and procedures in the first place. Now let's talk about the Internet. There are two parts to succeeding with the internet -- the traffic, or your web visitors, and your website. Let's talk about traffic first.
The power of the internet is that it allows you to dramatically leverage the number of people that are exposed to what you are marketing. You can drive hundreds or thousands of visitors to a website every single day, and you can target it so that only people that are actively looking for what you have see your site. There are 3 primary ways to drive traffic: PPC -- or ""paid traffic"" SEO -- or ""organic traffic"" Social Media -- or Web 2.0good news is... First, PPC is one of the fastest and easiest ways to gain massive exposure and drive high quality visitors and prospects to your site. One of the key steps here is that you need to know how to buy your traffic wholesale. Paying full price on Google Ad words or Yahoo Sponsored search will drain your bank account. PPC is all about using their paid advertising networks to expose your ad to targeted visitors. The best part about pay per click is that only people who want what you have right now are exposed to your ad. That way, you can qualify your prospect before you ever pay a penny, and they have to respond to your message before you pay.
There are some very simple strategies you can use to master PPC, but you must know what you are doing, because you can also get hurt if you just start buying traffic ignorantly. The second way to drive targeted traffic is with SEO, or search engine optimization. This is powerful because it is free traffic, but you must have the technical skills to understand what a search engine is looking for when it ranks websites. Search engines have bots, or web crawlers, that go out and search the websites out on the internet. And if you know what these web crawlers are looking for, you can blow by your competition and get ranked at the top of the search engines. There really is a formula for this, and it works time and again. Finally, the third way to drive traffic is with Social Media, which is commonly called Web 2.0. These are popular websites such as Squidoo.com, MySpace.com, YouTube.com, and many others that have become popular online hubs. What is interesting is that social media traffic is some of the highest-quality traffic online today, but it is a very different kind of marketing.
In order to succeed with Web 2.0, you have to learn how to provide quality content, and build a loyal fan base with your material. If you do this right, you can have 200, 300, or even 500 people per day reaching out to you, asking for more information about what you have. This type of traffic can be presold, so that when they actually see your website or your web message, they are ready and eager to work with you personally. You are already positioned as an expert before you ever even speak with them. There is a downside to web 2.0 though - if you don't know what you are doing, and just start blasting advertising on these sites, then you will be shut down and lose your account. Like ppc and seo, there is an art and science to using these tools.
But the good News is... Anyone, with the right knowledge, can take these tools, dominate their market, and separate themselves from the competition.
4) I know you want your On-line Business to grow quickly, and one of the best way to do that is to start bogging. A blog is a website that you can update with quality content on your particular area of expertise. It is highly recommended that you update your blog regularly, whether that is once a day, once a week, or once a month. Whatever the case, we highly recommend that you are consistent with your updates. This is the KEY to success with the blog - consistency. On top of that, you can make money off your blog! If you host advertising on your blog, then advertising networks will pay you for it. So you can blog about the benefits of your product, service, and opportunity, generate leads that are reaching out to you, AND getting paid for advertising. It's a nice tool to have
Some of the best advertising networks: Google Ad Sense Ad Sense is a must have to make money from a blog. Google displays simple text and image ads on your blog that are targeted to what you're writing about. You can sign up for a free account at: AdSense.Google.com Bidvertiser Bidvertiser is one of the best ad networks. They sell text links that you see under ""Featured Sites"" on websites. Bidvertiser is a CPC ad network that competes with Google Ad Sense. The good thing about Bidvertiser is its low $10 payout. With AdSense, you will have to reach $100 in ad commissions before they will pay you - with Bidvertiser, you only have to hit $10 before they pay out. You can get an account at: bidvertiser.com NetKlix NetKlix is another great CPC ad network for publisher (bloggers) to get paid. They pay out each month directly into your checking account. You can get an account at: NetKlix.com Blogging can be very lucrative, and if you are able to build a fan base that frequently visits your blog, you can generate a significant income. I know bloggers who pull in $40,000 per month just from the advertising revenue of their blog. It's no joke, and it should be implemented if you hope to make money from home. Now there is one last thing I want to talk about - and it's the most important business growth tool you'll ever have. And that is -- a successful mindset.
5) ""Someday""? Do you know how to tell a successful person from an unsuccessful one? The easiest way is by how they talk. When you talk to a successful person about their goals and targets, they will tell you what they plan to do and when it will be done. When an unsuccessful person talks about their goals (assuming they even have any), you'll hear something along the lines of ""I hope to do this someday"" or ""I really wish this would happen"". Here's a clue for all you losers out there -- ""someday"" never comes. You know why someone with a loser's mentality always uses words like ""someday"", ""I hope"" or ""I wish""? They do it because it gives them an out, and allows them to not be accountable for their words. If they have to place a time limit on the goal and they don't do it, they fail, and a loser hates to fail. Winners have no fear of failing, because they know success is made from strings of failure. Everyone has dreams and goals. Do you know the only difference between a goal and a dream?
A goal is a dream + action. We all have dreams, becoming financially independent, having a family, helping charities, making an impact on the world, etc. Have you ever made a goal to achieve your dreams? If so, did you place a time limit on it, or did you just say ""I hope it happens someday""? Can you imagine buying a presale home and not knowing when it will be completed? Can you imagine if the developer just kept telling you ""I'll get it finished someday"". Don't be afraid to fail. Failure is required in order to succeed. You won't find a successful person who doesn't have a few stories to tell about their failure (I know I do). Making a tremendous income with your home-based business is something that lots of people would like to do. Something that many people dream of doing. The question is -Will It Happen ""Today"" or will it happen ""Someday""?
Are You Ready To Make It Happen -- Starting Today? If so, then You need to know something about the law of Attraction. I can only scram so many strategies into one Article. There are some basic laws of attraction that you have to follow and know to start making your dreams and goals a reality.
6) One of those laws is VISUALIZATION Visualize Your Goals Clearly If you consciously believe that you have the ability to be successful and achieve your goals and Dreams, then you need to hold a picture of those goals clearly in your mind long enough and hard enough, till eventually your outer world is correspond with your inner world.
7) Finally, guard your thoughts carefully. Whatever you think about, combined with the emotions of desire or fear, you will attract into your life. Be sure that you are attracting what you want by continuing to think only about what you want. keep feeding your mind with new information, ideas and pictures of the person you want to be and the life you want to live. By creating this inner attitude of mind, you change the outer aspects of your reality. The success of you business is dependent on you Positive mental State."
Wednesday, May 9, 2018
Workplace Safety Audit in India
"Safety Audit of factories involved in hazardous processes and dangerous occurrences, has established itself in India. The entire credit goes to the 1987 amendments in the Factories Act, 1948 that we know as Chapter IVA prescribing provisions relating to hazardous processes.
It was the 1984 Bhopal disaster that took 16000 lives and crippled more than 500,000 people which prompted a serious review of existing safety enactments. Safety Audit has now become one of the spearheads to bring about a safe and healthy environment in industrial establishments.
In the years that has passed since the tragic Bhopal incident, the accident rate, the rate of dangerous occurrences and hazardous disasters have come down drastically. While the production and productivity are touching new heights with their graph always pointing upward, this achievement becomes more pronounced. The cut-throat globalization and competitiveness have changed the definition of accident from ""freedom from risk or danger"" to ""acceptable level of risk"". But it is a complement to the statutory monitoring coupled with management's concern that in spite of new dimensions achieved in risk taking activities; as are evident in upcoming technological achievements and, of course, in the inflating Guinness World of Records, we have not heard of any great misfortune or tragedy connected with industrial activity since 1984.
Safety audit begins with self-appraisal by an individual employee. He is encouraged to check his credentials against unsafe act committed knowingly or unknowingly. The factory carries out its internal safety audit since they are well aware that an accident or dangerous occurrence retard productivity adding to the loss whereas an accident free period has become a marked value-addition. They adhere to the golden principle of ""A Penny Saved is A Penny Earned"". The society, too, has risen to an accident free environment. They have whistle blowers and Non-Government organizations armoured with the latest ""Right to Information (RTI) Rules. Various statutory authorities in India are also equipped with state of the art hardware and software to monitor and identify any malpractices leading to accidents and dangerous occurrences. For instance, satellite imagery, at once, reveal where there is smoke in the sky and brown water gushing into streams and rivers.
External safety audits and internal safety audits have their own intrinsic qualities. An internal safety audit, carried out by a committee constituted from experienced experts of a factory, reveals most unhidden unsafe acts and unsafe conditions. After-all, the occupier and its employees know better than others about conditions in their factory. An external safety audit, carried out by experts constituted from other factories, academic professionals or those registered with the DGFASLI brings out a non-complacent, un-corrupted, perspective report coupled with benchmarked solutions and advice.
By far, the best kind of safety audit could only be carried out where both the in-house experts and expert guest blend together to review and improve a locus standi and modus operandi.
Under the guidance and umbrella of a periodic safety audit with religious follow-up measures, factories are inching slowly but steadily, towards a zero accident and zero pollution benchmark.
The objective of a comprehensive safety audit is to examine systematically and independently whether activities and related results conform to planned arrangements and whether these arrangements are implemented safely and effectively to achieve the organization's written safety and health policy. The endeavor would be to collect independent information on the efficiency, effectiveness and reliability of the total health and safety management system and suggesting plans or corrective actions to improve upon. The objective is to examine each stage in the health and safety management system for measuring compliance with the controls, the organization has developed, with the ultimate aim of assessing their effectiveness and their validity for the future.
The objective is to carry our systematic critical appraisal of all the potential hazards involving man, machine and material which also embodies in itself plant services and method of operation. In general, the objective is to cover the examination and qualitative assessment of all facets of safety in every activity which includes research and development, design ad layout, occupational health and hygiene, environmental feature ad control, plant, product and process safety, employee and public safety. It involves a review of safety and health aspect in the production, technical operation, maintenance, clearance certificates, emergency procedures, job description, operating instructions, training, housekeeping, personal attitude, management-worker relationship, workers' participation in health and safety matters etc.
The office of the Chief Advisor of Factories which is now called Director General, Factory Advice, Services and Labour Institute has brought out a comprehensive format to carry out a safety audit of a workplace/factory establishment. A specialist safety professional or team of safety experts may base their exercise on the below mentioned format. They may improvise upon to enrich it further. The safety audit report would be deemed to be complete if each an every points is reviewed and complemented with findings and expert advice for future course correction.
The Safety audit format is as under:
1.0 GENERAL INFORMATION
a) SITE INFORMATION
· Area of the site (site layout & area 10 Km radius drawing.
· Number of employees
· Products manufactured and capacity
· Meteorological data of the area
b) PRODUCTION INFORMATION
· Products made
· Process details (broad) with specific reference to hazardous steps/area
· Raw materials/intermediates with inventory
· Hazardous material used with inventory
· Storage of material- capacity, location, storage conditions and details.
c) COPIES FOR CONSULTATION
· Recent safety audit report
· Hazard analysis
· Risk analysis
· On-site Plan and mock trials thereon
· Off-site plan for the area.
2.0 MANAGEMENT SYSTEMS
a) SAFETY POLICY
· Content of the Policy
· Circulation
· Promotions/awareness Build-up
b) ATTUTUDE
· Awareness at various levels
· Willingness to learn/change
· Recognition of safety as an important function
c) SAFETY STRUCTURE
· Organization structure - reporting relationship
· Qualification/experience of key persons
· Roles and responsibility
· Specific knowledge on auditing/hazard analysis etc.
· Accountability of line managers for safety
· Safety as a factor in performance appraisal
· Role of safety in MES
3.0 SAFETY SYSTEMS
a) SAFETY FUNCTION
· Role of safety vis-à-vis other functions
· Procedure governing safety at works
· Training given to safety personnel/other employees
b) SAFETY INSTRUCTION
· Works Standing Instructions
· Area Instructions
· Statutory Warnings/Instructions
c) DOCUMENTATION
· Manuals (Safety/Fire/Others)
· MSDS
· Audit
· Statutory Compliance
d) FIRE PROTECTION
· Organisation
· Roles/responsibilities
· Installation detail
· Schedule of FEA/Protection Equipment (detectors) etc.
· Fire Load Assessment
· Fire Alarm/Siren
· Fire fighting arrangement (Water, tender etc.)
· External support
· Codes and Standards.
e) PERMIT TO WORK/CLEARANCE
· Work Order
· Permit to work system
· Authorities
· Monitoring/Controls
f) SAFETY INSPECTION
· Frequency of inspection
· Constitution f team
· Reporting of results
· Action on deficiencies
· Safety sampling
g) INVESTIGATION
· Accidents
· Abnormal incidents/deviation
· Constitution of team
· Examination of sample report
h) AUDITING/INSPECTION
· Safety auditing
· Inspection of safety features
· Frequency
· Agencies utilized (in-house/external)
· Action arising from audits
i) COMPLIANCE
· Status of compliance with regulation
· Register of compliance
· Monitoring
j) EMERGENCY MAMANEGMENT
· Hazard analysis
· On-site plan
· Vulnerable scenario development
· Off-site plan
· Mock trials
· Review
· Mutual aid scheme
k) COMMUNICATION/TRANING
· Safety communication
· Safety committee
· Warning signs/posters
· Information sharing
· Training programme (Safety/Fire/First Aid)
· Motivation
4.0 TECHNICAL SYSTEMS
a) DESIGN
· Design documentation
· Codes and standards adopted
· Updating of documents
· Plant modifications
· Identification of vessels, pipelines etc.
b) OPERATION
· Operating procedures
· Training of personnel
· Operational safety consideration
c) MAINTENANCE
· Maintenance procedures
· Inspection of vessels/equipment/pipelines- condition monitoring
· History cards
· Job safety analysis
· Electrical area classification
· Safety protective (Relief valves, rupture discs, trip systems etc._
· Corrosion an monitoring
· Codes and standards
· Compliance
d) PERSONAL PROTECTION
· Area classification
· Work area toxic
· Noise
· Personal protective equipment
· Employee health monitoring
5.0 HUMAN FACTOR
a) COMMUNICATION
· Type of union/relationship
· Labour problems
· Communication on safety issues
· Participation in safety
b) TRAINING
· Safety training programmes
· Frequency
· Contents
· Prticipation
· Effectiveness evaluation
c) MOTIVATION
· Suggestion schemes
· Award/penalties
· Competition
d) REVIEW PROCESS
· Review of safety
· Participants review
· Improvement plans
6.0 FACILITY SAFETY AUDIT
Visit site to assess physically the safety status including housekeeping.
A safety audit well executed, and follow-up safety measures religiously adopted would spontaneously result in achieving a healthy index of the factory. A safety index is the ratio of the safety status of the previous year and the current year. This index would be less than 1. The more a factory is concerned about the safety, occupational health of its employees and the environment upkeep, the lesser and healthier would be the safety index."
It was the 1984 Bhopal disaster that took 16000 lives and crippled more than 500,000 people which prompted a serious review of existing safety enactments. Safety Audit has now become one of the spearheads to bring about a safe and healthy environment in industrial establishments.
In the years that has passed since the tragic Bhopal incident, the accident rate, the rate of dangerous occurrences and hazardous disasters have come down drastically. While the production and productivity are touching new heights with their graph always pointing upward, this achievement becomes more pronounced. The cut-throat globalization and competitiveness have changed the definition of accident from ""freedom from risk or danger"" to ""acceptable level of risk"". But it is a complement to the statutory monitoring coupled with management's concern that in spite of new dimensions achieved in risk taking activities; as are evident in upcoming technological achievements and, of course, in the inflating Guinness World of Records, we have not heard of any great misfortune or tragedy connected with industrial activity since 1984.
Safety audit begins with self-appraisal by an individual employee. He is encouraged to check his credentials against unsafe act committed knowingly or unknowingly. The factory carries out its internal safety audit since they are well aware that an accident or dangerous occurrence retard productivity adding to the loss whereas an accident free period has become a marked value-addition. They adhere to the golden principle of ""A Penny Saved is A Penny Earned"". The society, too, has risen to an accident free environment. They have whistle blowers and Non-Government organizations armoured with the latest ""Right to Information (RTI) Rules. Various statutory authorities in India are also equipped with state of the art hardware and software to monitor and identify any malpractices leading to accidents and dangerous occurrences. For instance, satellite imagery, at once, reveal where there is smoke in the sky and brown water gushing into streams and rivers.
External safety audits and internal safety audits have their own intrinsic qualities. An internal safety audit, carried out by a committee constituted from experienced experts of a factory, reveals most unhidden unsafe acts and unsafe conditions. After-all, the occupier and its employees know better than others about conditions in their factory. An external safety audit, carried out by experts constituted from other factories, academic professionals or those registered with the DGFASLI brings out a non-complacent, un-corrupted, perspective report coupled with benchmarked solutions and advice.
By far, the best kind of safety audit could only be carried out where both the in-house experts and expert guest blend together to review and improve a locus standi and modus operandi.
Under the guidance and umbrella of a periodic safety audit with religious follow-up measures, factories are inching slowly but steadily, towards a zero accident and zero pollution benchmark.
The objective of a comprehensive safety audit is to examine systematically and independently whether activities and related results conform to planned arrangements and whether these arrangements are implemented safely and effectively to achieve the organization's written safety and health policy. The endeavor would be to collect independent information on the efficiency, effectiveness and reliability of the total health and safety management system and suggesting plans or corrective actions to improve upon. The objective is to examine each stage in the health and safety management system for measuring compliance with the controls, the organization has developed, with the ultimate aim of assessing their effectiveness and their validity for the future.
The objective is to carry our systematic critical appraisal of all the potential hazards involving man, machine and material which also embodies in itself plant services and method of operation. In general, the objective is to cover the examination and qualitative assessment of all facets of safety in every activity which includes research and development, design ad layout, occupational health and hygiene, environmental feature ad control, plant, product and process safety, employee and public safety. It involves a review of safety and health aspect in the production, technical operation, maintenance, clearance certificates, emergency procedures, job description, operating instructions, training, housekeeping, personal attitude, management-worker relationship, workers' participation in health and safety matters etc.
The office of the Chief Advisor of Factories which is now called Director General, Factory Advice, Services and Labour Institute has brought out a comprehensive format to carry out a safety audit of a workplace/factory establishment. A specialist safety professional or team of safety experts may base their exercise on the below mentioned format. They may improvise upon to enrich it further. The safety audit report would be deemed to be complete if each an every points is reviewed and complemented with findings and expert advice for future course correction.
The Safety audit format is as under:
1.0 GENERAL INFORMATION
a) SITE INFORMATION
· Area of the site (site layout & area 10 Km radius drawing.
· Number of employees
· Products manufactured and capacity
· Meteorological data of the area
b) PRODUCTION INFORMATION
· Products made
· Process details (broad) with specific reference to hazardous steps/area
· Raw materials/intermediates with inventory
· Hazardous material used with inventory
· Storage of material- capacity, location, storage conditions and details.
c) COPIES FOR CONSULTATION
· Recent safety audit report
· Hazard analysis
· Risk analysis
· On-site Plan and mock trials thereon
· Off-site plan for the area.
2.0 MANAGEMENT SYSTEMS
a) SAFETY POLICY
· Content of the Policy
· Circulation
· Promotions/awareness Build-up
b) ATTUTUDE
· Awareness at various levels
· Willingness to learn/change
· Recognition of safety as an important function
c) SAFETY STRUCTURE
· Organization structure - reporting relationship
· Qualification/experience of key persons
· Roles and responsibility
· Specific knowledge on auditing/hazard analysis etc.
· Accountability of line managers for safety
· Safety as a factor in performance appraisal
· Role of safety in MES
3.0 SAFETY SYSTEMS
a) SAFETY FUNCTION
· Role of safety vis-à-vis other functions
· Procedure governing safety at works
· Training given to safety personnel/other employees
b) SAFETY INSTRUCTION
· Works Standing Instructions
· Area Instructions
· Statutory Warnings/Instructions
c) DOCUMENTATION
· Manuals (Safety/Fire/Others)
· MSDS
· Audit
· Statutory Compliance
d) FIRE PROTECTION
· Organisation
· Roles/responsibilities
· Installation detail
· Schedule of FEA/Protection Equipment (detectors) etc.
· Fire Load Assessment
· Fire Alarm/Siren
· Fire fighting arrangement (Water, tender etc.)
· External support
· Codes and Standards.
e) PERMIT TO WORK/CLEARANCE
· Work Order
· Permit to work system
· Authorities
· Monitoring/Controls
f) SAFETY INSPECTION
· Frequency of inspection
· Constitution f team
· Reporting of results
· Action on deficiencies
· Safety sampling
g) INVESTIGATION
· Accidents
· Abnormal incidents/deviation
· Constitution of team
· Examination of sample report
h) AUDITING/INSPECTION
· Safety auditing
· Inspection of safety features
· Frequency
· Agencies utilized (in-house/external)
· Action arising from audits
i) COMPLIANCE
· Status of compliance with regulation
· Register of compliance
· Monitoring
j) EMERGENCY MAMANEGMENT
· Hazard analysis
· On-site plan
· Vulnerable scenario development
· Off-site plan
· Mock trials
· Review
· Mutual aid scheme
k) COMMUNICATION/TRANING
· Safety communication
· Safety committee
· Warning signs/posters
· Information sharing
· Training programme (Safety/Fire/First Aid)
· Motivation
4.0 TECHNICAL SYSTEMS
a) DESIGN
· Design documentation
· Codes and standards adopted
· Updating of documents
· Plant modifications
· Identification of vessels, pipelines etc.
b) OPERATION
· Operating procedures
· Training of personnel
· Operational safety consideration
c) MAINTENANCE
· Maintenance procedures
· Inspection of vessels/equipment/pipelines- condition monitoring
· History cards
· Job safety analysis
· Electrical area classification
· Safety protective (Relief valves, rupture discs, trip systems etc._
· Corrosion an monitoring
· Codes and standards
· Compliance
d) PERSONAL PROTECTION
· Area classification
· Work area toxic
· Noise
· Personal protective equipment
· Employee health monitoring
5.0 HUMAN FACTOR
a) COMMUNICATION
· Type of union/relationship
· Labour problems
· Communication on safety issues
· Participation in safety
b) TRAINING
· Safety training programmes
· Frequency
· Contents
· Prticipation
· Effectiveness evaluation
c) MOTIVATION
· Suggestion schemes
· Award/penalties
· Competition
d) REVIEW PROCESS
· Review of safety
· Participants review
· Improvement plans
6.0 FACILITY SAFETY AUDIT
Visit site to assess physically the safety status including housekeeping.
A safety audit well executed, and follow-up safety measures religiously adopted would spontaneously result in achieving a healthy index of the factory. A safety index is the ratio of the safety status of the previous year and the current year. This index would be less than 1. The more a factory is concerned about the safety, occupational health of its employees and the environment upkeep, the lesser and healthier would be the safety index."
Predictions + Commentary For the 2010 Financial Markets
"We're BACK! I hope everyone had a great Holiday... This year should be a great trading year and we will be adding more content, more trades, more educational tips + advice and other helpful items as the year goes on.
This week's report will be a special edition with our annual commentary intertwined with our weekly commentary below.
S&P 500 / DOW / NASDAQ: As we look at the rise off the bottom from the lows of March 2009, a period of pullback/profit taking will be coming. There is no way that the equity market can fundamentally keep going higher without a healthy profit taking pullback. We find it quite amazing that the market has managed to rise even though the country has had all the turmoil in the economy that the U.S. has seen over the past 18 months or so - perhaps a buy the rumor and sell the news situation??? Perhaps all the sellers left and only buyers with itchy fingers and wads of cash in their pocket were left hanging around...who knows... time will tell - it always does.
We do think that we have seen the bottom in the overall Stock Market from the lows of March of 2009 and that the economy will improve from the misery that we saw in 2008 + 2009 and perhaps the market reacted to that, however the market cannot continue its huge move higher without a major pause or a bubble larger than the one that developed 10 years ago will be put in place - which will end badly for the bullish cause. Keep in mind that the DOW moved about 4000 points in about 9 months.
With that being said, how would we handle this? On a short-term trading program - we would ride the Bull Train until the Bull shows us that he has no more horns left, however... we will take profits quicker than normal on our bullish plays and use relatively tighter stop losses. We wouldn't commit hugely to any long term bull trend setups. On a long term portfolio situation - we would start to move off any margin in our long term portfolios (starting now) and we would take profits on any ""iffy"" stocks or equity investments if we were in them. We then would seriously consider buying put options that would cover/help protect our total portfolio on any major weekly bearish signals/setups that showed up on the charts. If the weekly bearish setups start to form a solid bear setup on the monthly charts we would start going to cash (not to 100% cash but do some ""healthy trimming down) with continued protection from put options (or the equivalent derivative trade). We aren't talking a total capitulation as we don't think 2010 will be a total bear year and we would not be shocked if we ended the year marginally higher but the RISK is there AND there is a decent chance that the market will pullback some time in the 1st qtr and linger all year on the bearish side of things.
There is talk out there that if the economy continues its recovery, corporate profits improve and with other factors getting better that those items will continue to fuel the rise in the US stock markets... however, others say that has been priced in (possibly prematurely so) and that valuations can only get so high before stocks become too pricey. Another concern will be how will the markets react to a rising US Dollar? The Dollar has firmed up and it looks like the bear has been tamed or at least slowed down in that market.
The charts, experience and common sense tells us that the US Stock market will finish lower than 10500 on the DOW by this time next year (how far lower - depends on a lot of factors - too hard to tell at this point)... However - you shouldn't fight the BULL or major trends too aggressively... Play it smart and be agile and you should be OK!
Interest Rate Futures / Mortgage Interest Rates: The 10 year T-notes Futures are in a bearish trend on the Weekly Charts. We think that the 30 year fixed mortgage rate lows from 2009 will not be breached this year and if the 10 year T-Note Yield ($TNX) breaks 4.25 to the upside (the symbol $TNX and the 10 year T-Note Futures have an inverse relationship) that is a confirmation for the bearish cause in the mid and long side of the debt/interest rate futures market. The country is still mired in a national economic situation and the government's actions are still a wild card but we don't see 2009 highs being broke in 2010 on the 10 year T-Note or 30 year T-Bond Futures.
US DOLLAR (Symbol: DX): The Dollar's bottom looks like it's getting put into place. There is a higher low on the monthly charts and we are waiting for the Weekly charts as well as constructive daily action to give us a strong weekly signal before we declare that the bear is dead for this market... however, it has firmed up quite a bit and November's low must hold for us to consider this firming up to be a legitimate bottom forming action.
Foreign Currency (FOREX + Foreign Currency Futures): With the Dollar firming up the FOREX market will be interesting this year.
Quick NOTE: The commentary below will be talking about the actual FOREX currency... Keep in mind - Forex's symbol can have the USD listed first or second in the currency pair which is a major detail. Currency Futures have the symbol setup by having the Currency listed first against the US Dollar - at least the 6 that we trade do... keep in mind - when it comes to charts, trade direction, etc - there may be an inverse situation when comparing FOREX with Currency Futures. This situation occurs because of how the symbol is created and the implications of it.
In some currencies like the Swiss Franc... the Forex Market has it USD/CHF - ie. US Dollar over the Swiss Franc but the US Futures markets have it setup as CHF/USD - so the charts are inverse. The Canadian Dollar and Japanese Yen are also like that - where the charts on the Futures are ""flipped upside down"" in comparison to the FOREX Charts. However, the Australian Dollar, Euro and British Pound in the Forex market have charts which look nearly identical to their counterpart in the Futures market. Just keep this in mind as you may see at times that we may ""Go Short"" the Swiss FOREX and then post the futures equivalent trade which would be a LONG in the Swiss Futures. However, if it was the Euro - you could go long (or short) in either for the same trade - the FOREX pair and the Currency Futures contract trade in the same direction for the Euro, Aussie and BP. It's not as complicated as it may sound so email us if you have any questions. By the way, most traders don't trade both markets in the same currency at the same time... some traders trade currency futures and some trade in the FOREX market.
Australian Dollar: Looks Stable and Strong... May see some pullback in the recent uptrend but no major deterioration unless the US
British Pound: Looks Bearish - if the Lows of October 2009 break - the confirmation is in. Volatile markets are ahead.
Canadian Dollar: This looks Bearish and we don't see any let up in that... the best a bullish Canadian dollar player could hope for is choppy action at this point.
Euro: Tough to call at this point in time. Our take in this currency is that it's Nuetral and that feeling will turn moderately bearish if the December lows of 2009 are broken.
Japanese Yen: This market is in a bearish trend... We see an attempted firming up process starting to materialize but it's not there yet.
Swiss Franc: Much like the Yen, this market is in a bear trend, although unlike the Yen - we do see a decent formation of a bottom getting put in place. If the Swiss can break 2009's lows then all bets are off but this currency is trying to move higher.
Crude Oil: Tough call on this market. A bit volatile... The monthly charts look neutral to me with a bullish bias. The weekly charts point that another good upleg will begin if and when the highs of October of 2009 are broken. Push come to shove - this market probably moves higher.
Grains Futures: With the US Dollar firming up - this market may get a bit wild. I don't have a clear trend indication at this point on the Grain Future complex. The Weekly charts are slightly bullish and the Monthly Charts are neutral (with slight bearish feel) on Corn, Soybeans, Soybean Meal and Soybean Oil markets. Wheat looks weaker than Soybean or Corn at this moment in time. If December's lows break, I would lean towards the bearish side of the Wheat market. The weekly charts on Wheat are looking like this market is trying to get stronger but no confirmation yet.
If the grains continue to chop around in the ""neutral area"" and the Dollar heats up and starts really moving forward - the grain market will probably move lower. There is a lot of ""if"" in this complex so we would stick to short-term trading if we were you and play the market accordingly. If we get a confirmation through the year on a true Bull or Bear trend - we will obviously point it out in our weekly commentary.
Metals Futures:
Gold Futures:Will Gold continue to move higher? That is the trillion dollar question... Unlike the US Stock market where we feel that the highs for 2010 are probably in for the next 12 months or at the most - aren't far from their current levels... it's a tough call on Gold. The Monthly Charts tell us that this metal is due for a pullback however we can't say that it wont be higher this time next year. We do not see any major weakness, outside of ""normal"" profit taking in this market in the near future.
Silver Futures: Not as strong as Gold... Potential Double top on the Monthly Charts... We are neutral with a slight bullish bias on the Silver market for 2010. However, we only still hold a bullish bias as the trend is still in place and not because we see a chart that will continue higher with strong setups and constructive action.
Copper Futures: This market is in a super strong uptrend... one must think a pause is near but we wouldn't ""short"" this market at this point... you may eventually catch the top or a nice reactionary move lower but you are going to get beat up along the way.
Platinum Futures: Bullish Trend... We don't see any bearish indications... should trade in a ""normal"" bullish uptrend on the weekly charts for 2010 - which generally are 3 to 5 week up trends with an occasional 2 to 3 week pause/pullback. The last 13 months or so only saw 2 red bars on the monthly charts so one would think a profit taking period is near, but like copper - you may get hurt trying to find it.
Real Estate: The real estate market is bottoming out however interest rates are heading higher... The good news is that we don't feel that they will shoot up and mortgage rates are coming off a really low bottom - interest rates should still remain attractive to consumers this year.
2010 should be a decent real estate market and if you have the cash or credit to use - we would recommend looking for bargains to buy in the residential real estate market. How the summer real estate market performs will be a really good indicator on the overall health of the US Real estate markets. Many large markets across the country do well during the summer and many times it's a great indicator on the health of the overall real estate market.
Some regions of the country still have some additional room to move a bit lower and there are still many places with inventory issues due to the foreclosures that continue to hit the market but buyers are coming back and the lenders seem to be loosening a bit. HOWEVER, keep an eye on FHA mortgages - we wouldn't be surprised to see the FHA mortgage market seeing some major negative news coming out this year. Lenders did tighten up in 2009 but the FHA mortgage market picked up some of the slack of the type of mortgage clients that people said shouldn't have gotten a loan but got one anyways through Fannie Mae in past years... ie. FHA was giving loans in 2009 to people who may not be able to adequately afford the home if using the standards that people said Fannie should have been held to in previous years... if the job market doesn't improve and the economy has another major misstep (or the recover stalls badly) FHA may take some heat and FHA mortgage defaults may be the financial news of 2010! The good news for this FHA situation is that it looks like FHA/Lenders have taken steps to tighten up the guidelines in a fairly reasonable way over the last few months... will it be enough or done in time??? We shall see.
Bottom line - if you need to buy a home to live in and can afford it - we would buy in 2010. If you are looking into buying real estate as an investment - we would start looking for deals and if the price seems right, location is great and the deal seems good - we would go ahead and buy the rental house. We think that the worst is behind us... the market probably has 1 to 3 years left to fully be out of the woods but the national US Real Estate Market probably has bottomed out and if it hasn't... it's really close to it. The problem if you wait is that no one will waive a white flag and tell you its OK to buy a home... and by the time you realize it - the market will have moved higher... The risk of missing the move is higher than the possible loss of doing nothing in our opinion - so we think it's a cautious buy at this time - with the caution being that you need to buy the home right and in the price range that you can afford!
We will make this article Free for all, if you want to check out our normal weekly reports with specific trades using easy to follow entries and exits - sign up for our Free Trial at InsideTheMarket."
This week's report will be a special edition with our annual commentary intertwined with our weekly commentary below.
S&P 500 / DOW / NASDAQ: As we look at the rise off the bottom from the lows of March 2009, a period of pullback/profit taking will be coming. There is no way that the equity market can fundamentally keep going higher without a healthy profit taking pullback. We find it quite amazing that the market has managed to rise even though the country has had all the turmoil in the economy that the U.S. has seen over the past 18 months or so - perhaps a buy the rumor and sell the news situation??? Perhaps all the sellers left and only buyers with itchy fingers and wads of cash in their pocket were left hanging around...who knows... time will tell - it always does.
We do think that we have seen the bottom in the overall Stock Market from the lows of March of 2009 and that the economy will improve from the misery that we saw in 2008 + 2009 and perhaps the market reacted to that, however the market cannot continue its huge move higher without a major pause or a bubble larger than the one that developed 10 years ago will be put in place - which will end badly for the bullish cause. Keep in mind that the DOW moved about 4000 points in about 9 months.
With that being said, how would we handle this? On a short-term trading program - we would ride the Bull Train until the Bull shows us that he has no more horns left, however... we will take profits quicker than normal on our bullish plays and use relatively tighter stop losses. We wouldn't commit hugely to any long term bull trend setups. On a long term portfolio situation - we would start to move off any margin in our long term portfolios (starting now) and we would take profits on any ""iffy"" stocks or equity investments if we were in them. We then would seriously consider buying put options that would cover/help protect our total portfolio on any major weekly bearish signals/setups that showed up on the charts. If the weekly bearish setups start to form a solid bear setup on the monthly charts we would start going to cash (not to 100% cash but do some ""healthy trimming down) with continued protection from put options (or the equivalent derivative trade). We aren't talking a total capitulation as we don't think 2010 will be a total bear year and we would not be shocked if we ended the year marginally higher but the RISK is there AND there is a decent chance that the market will pullback some time in the 1st qtr and linger all year on the bearish side of things.
There is talk out there that if the economy continues its recovery, corporate profits improve and with other factors getting better that those items will continue to fuel the rise in the US stock markets... however, others say that has been priced in (possibly prematurely so) and that valuations can only get so high before stocks become too pricey. Another concern will be how will the markets react to a rising US Dollar? The Dollar has firmed up and it looks like the bear has been tamed or at least slowed down in that market.
The charts, experience and common sense tells us that the US Stock market will finish lower than 10500 on the DOW by this time next year (how far lower - depends on a lot of factors - too hard to tell at this point)... However - you shouldn't fight the BULL or major trends too aggressively... Play it smart and be agile and you should be OK!
Interest Rate Futures / Mortgage Interest Rates: The 10 year T-notes Futures are in a bearish trend on the Weekly Charts. We think that the 30 year fixed mortgage rate lows from 2009 will not be breached this year and if the 10 year T-Note Yield ($TNX) breaks 4.25 to the upside (the symbol $TNX and the 10 year T-Note Futures have an inverse relationship) that is a confirmation for the bearish cause in the mid and long side of the debt/interest rate futures market. The country is still mired in a national economic situation and the government's actions are still a wild card but we don't see 2009 highs being broke in 2010 on the 10 year T-Note or 30 year T-Bond Futures.
US DOLLAR (Symbol: DX): The Dollar's bottom looks like it's getting put into place. There is a higher low on the monthly charts and we are waiting for the Weekly charts as well as constructive daily action to give us a strong weekly signal before we declare that the bear is dead for this market... however, it has firmed up quite a bit and November's low must hold for us to consider this firming up to be a legitimate bottom forming action.
Foreign Currency (FOREX + Foreign Currency Futures): With the Dollar firming up the FOREX market will be interesting this year.
Quick NOTE: The commentary below will be talking about the actual FOREX currency... Keep in mind - Forex's symbol can have the USD listed first or second in the currency pair which is a major detail. Currency Futures have the symbol setup by having the Currency listed first against the US Dollar - at least the 6 that we trade do... keep in mind - when it comes to charts, trade direction, etc - there may be an inverse situation when comparing FOREX with Currency Futures. This situation occurs because of how the symbol is created and the implications of it.
In some currencies like the Swiss Franc... the Forex Market has it USD/CHF - ie. US Dollar over the Swiss Franc but the US Futures markets have it setup as CHF/USD - so the charts are inverse. The Canadian Dollar and Japanese Yen are also like that - where the charts on the Futures are ""flipped upside down"" in comparison to the FOREX Charts. However, the Australian Dollar, Euro and British Pound in the Forex market have charts which look nearly identical to their counterpart in the Futures market. Just keep this in mind as you may see at times that we may ""Go Short"" the Swiss FOREX and then post the futures equivalent trade which would be a LONG in the Swiss Futures. However, if it was the Euro - you could go long (or short) in either for the same trade - the FOREX pair and the Currency Futures contract trade in the same direction for the Euro, Aussie and BP. It's not as complicated as it may sound so email us if you have any questions. By the way, most traders don't trade both markets in the same currency at the same time... some traders trade currency futures and some trade in the FOREX market.
Australian Dollar: Looks Stable and Strong... May see some pullback in the recent uptrend but no major deterioration unless the US
British Pound: Looks Bearish - if the Lows of October 2009 break - the confirmation is in. Volatile markets are ahead.
Canadian Dollar: This looks Bearish and we don't see any let up in that... the best a bullish Canadian dollar player could hope for is choppy action at this point.
Euro: Tough to call at this point in time. Our take in this currency is that it's Nuetral and that feeling will turn moderately bearish if the December lows of 2009 are broken.
Japanese Yen: This market is in a bearish trend... We see an attempted firming up process starting to materialize but it's not there yet.
Swiss Franc: Much like the Yen, this market is in a bear trend, although unlike the Yen - we do see a decent formation of a bottom getting put in place. If the Swiss can break 2009's lows then all bets are off but this currency is trying to move higher.
Crude Oil: Tough call on this market. A bit volatile... The monthly charts look neutral to me with a bullish bias. The weekly charts point that another good upleg will begin if and when the highs of October of 2009 are broken. Push come to shove - this market probably moves higher.
Grains Futures: With the US Dollar firming up - this market may get a bit wild. I don't have a clear trend indication at this point on the Grain Future complex. The Weekly charts are slightly bullish and the Monthly Charts are neutral (with slight bearish feel) on Corn, Soybeans, Soybean Meal and Soybean Oil markets. Wheat looks weaker than Soybean or Corn at this moment in time. If December's lows break, I would lean towards the bearish side of the Wheat market. The weekly charts on Wheat are looking like this market is trying to get stronger but no confirmation yet.
If the grains continue to chop around in the ""neutral area"" and the Dollar heats up and starts really moving forward - the grain market will probably move lower. There is a lot of ""if"" in this complex so we would stick to short-term trading if we were you and play the market accordingly. If we get a confirmation through the year on a true Bull or Bear trend - we will obviously point it out in our weekly commentary.
Metals Futures:
Gold Futures:Will Gold continue to move higher? That is the trillion dollar question... Unlike the US Stock market where we feel that the highs for 2010 are probably in for the next 12 months or at the most - aren't far from their current levels... it's a tough call on Gold. The Monthly Charts tell us that this metal is due for a pullback however we can't say that it wont be higher this time next year. We do not see any major weakness, outside of ""normal"" profit taking in this market in the near future.
Silver Futures: Not as strong as Gold... Potential Double top on the Monthly Charts... We are neutral with a slight bullish bias on the Silver market for 2010. However, we only still hold a bullish bias as the trend is still in place and not because we see a chart that will continue higher with strong setups and constructive action.
Copper Futures: This market is in a super strong uptrend... one must think a pause is near but we wouldn't ""short"" this market at this point... you may eventually catch the top or a nice reactionary move lower but you are going to get beat up along the way.
Platinum Futures: Bullish Trend... We don't see any bearish indications... should trade in a ""normal"" bullish uptrend on the weekly charts for 2010 - which generally are 3 to 5 week up trends with an occasional 2 to 3 week pause/pullback. The last 13 months or so only saw 2 red bars on the monthly charts so one would think a profit taking period is near, but like copper - you may get hurt trying to find it.
Real Estate: The real estate market is bottoming out however interest rates are heading higher... The good news is that we don't feel that they will shoot up and mortgage rates are coming off a really low bottom - interest rates should still remain attractive to consumers this year.
2010 should be a decent real estate market and if you have the cash or credit to use - we would recommend looking for bargains to buy in the residential real estate market. How the summer real estate market performs will be a really good indicator on the overall health of the US Real estate markets. Many large markets across the country do well during the summer and many times it's a great indicator on the health of the overall real estate market.
Some regions of the country still have some additional room to move a bit lower and there are still many places with inventory issues due to the foreclosures that continue to hit the market but buyers are coming back and the lenders seem to be loosening a bit. HOWEVER, keep an eye on FHA mortgages - we wouldn't be surprised to see the FHA mortgage market seeing some major negative news coming out this year. Lenders did tighten up in 2009 but the FHA mortgage market picked up some of the slack of the type of mortgage clients that people said shouldn't have gotten a loan but got one anyways through Fannie Mae in past years... ie. FHA was giving loans in 2009 to people who may not be able to adequately afford the home if using the standards that people said Fannie should have been held to in previous years... if the job market doesn't improve and the economy has another major misstep (or the recover stalls badly) FHA may take some heat and FHA mortgage defaults may be the financial news of 2010! The good news for this FHA situation is that it looks like FHA/Lenders have taken steps to tighten up the guidelines in a fairly reasonable way over the last few months... will it be enough or done in time??? We shall see.
Bottom line - if you need to buy a home to live in and can afford it - we would buy in 2010. If you are looking into buying real estate as an investment - we would start looking for deals and if the price seems right, location is great and the deal seems good - we would go ahead and buy the rental house. We think that the worst is behind us... the market probably has 1 to 3 years left to fully be out of the woods but the national US Real Estate Market probably has bottomed out and if it hasn't... it's really close to it. The problem if you wait is that no one will waive a white flag and tell you its OK to buy a home... and by the time you realize it - the market will have moved higher... The risk of missing the move is higher than the possible loss of doing nothing in our opinion - so we think it's a cautious buy at this time - with the caution being that you need to buy the home right and in the price range that you can afford!
We will make this article Free for all, if you want to check out our normal weekly reports with specific trades using easy to follow entries and exits - sign up for our Free Trial at InsideTheMarket."
Inflation Through Deflation
"It was July of 2008 and oil prices soared to a $147 per barrel. At that time grain prices were going through the roof, the Chinese economy was overheating, the general population of the undeveloped emerging economies were on the verge of revolt, US consumers were angry about having to pay $4.50 per gallon of gasoline, stocks were heading lower every time oil prices were making new highs, and to top it off inflation was the main concern for just about every economic policy maker. My my my, how quickly things have changed. Who'd a thunk it? Oil would drop down to as low as $32 a barrel, the DOW down to the 6000's, copper at less than $1.50 a pound; it appeared that the entire capital market structure was on the verge of collapsing. What a scary time it was not just for investors, but for anyone who had a bank account. I remember having conversations with my friends and family, wondering if their nest eggs would be safe in their 401 K's, IRA's, equity holdings and even in their savings accounts. Panic and fear ruled the world there for a few months.
Then with a few actions from the Federal Reserve, US treasury, revisions in the mark to market accounting rules, and a massive $850 Billion stimulus bill, VIOLA, Confidence was ""restored"". Banks balance sheets improved, toxic assets held by the banks suddenly disappeared (through accounting magic of mark to market), and artificial stimulus was provided through the America Recovery and Investment Act. Unprecedented global government spending was running rampant, 0% interest rates were provided for the banks, and furthermore $1.4 Trillion worth of Quantitative Easing through the purchase of mortgage bonds and US treasuries from the Federal Reserve was enacted. The Dow climbed from the 6443 to as high as 11,205. The CNBC stock cheerleaders were proclaiming a firm ""recovery"" was in place and that we could expect a V shaped recovery.
It never made sense to me. I told my clients that there wouldn't be a V shaped recovery and that I strongly advised them to not get fooled by the hype. Take everything that was said with a grain of salt and just remember who they are and what their functions are in their professional lives. I told my clients that the reason there wouldn't be anything resembling a V shaped recovery in any shape or form was that we had way too many structural headwinds for this to occur.
1. In the housing market the amount of foreclosures are continuing to climb while the Federal foreclosure plan enacted by the president so far has been a huge failure, according to Special inspector general for the financial bailouts, Neil Barofsky, who said the program has not ""put an appreciable dent in foreclosure filings"". Meanwhile Elizabeth Warren, who chairs a separate Congressional Oversight Panel on the bailouts, has said that Treasury's failure to act more quickly could certainly be hurting the recovery. A problem that once was just for subprime mortgages has recently morphed into the ALT A and prime mortgages, causing an even deeper predicament. Now that the $8000. tax credit program has expired in April, we have had the worst home sales numbers in the last two back to back home reports. Without a recovery in the housing market, people don't feel confident as they see in many cases the highest value asset they own deteriorating, therefore curtailing their normal spending habits. Former U.S. Federal Reserve chairman, Alan Greenspan, recently warned that a fall in house prices could derail the U.S. recovery and trigger a double-dip recession.
2. Credit, which is the life line for many businesses, is nowhere to be found. I've argued that it isn't so much a problem of lack of liquidity as much as it is a problem of lack of credit worthy borrowers and aggregate demand for domestic goods and services, and if you couple that with all the toxic debt that banks are still holding on their balance sheets coming to a standstill, this is what you get; a severe lack of issuance of credit. Until the labor market markedly improves and commercial and residential properties are on safer ground, banks simply won't lend, period.
3. A structurally damaged labor market. Many of the jobs that were lost during this downturn were in the construction and manufacturing base and many of those jobs won't be coming back for a very long time. The overhang in residential and commercial properties is enormous; the demand for goods was crushed, which in turn devastated manufacturing jobs. Even now, with prospects of the manufacturers slightly improving (mainly due to growth from emerging economies), jobs still aren't being offered, and a big reason for that has to do with technology and spending on equipment and software. As John Ryding, the chief economist at RDQ Economics stated, ""You can understand that businesses don't have to pay health care on equipment and software, and these get better tax treatment than you get for hiring people. If you can get away with upgrading capital spending and deferring hiring for a while, that makes economic sense, especially in this uncertain policy environment."" The growth from our economy simply isn't growing fast enough to meaningfully improve the unemployment rate, as even the chairwoman of the president's Council of Economic Advisers, Christina Romer said, ""We need 2.5 percent growth just to keep the unemployment rate where it is. If you want to get it down quickly, you need substantially stronger growth than that. That's what I've been saying for the last several quarters, and that's why I've been hoping that we'll please pass the jobs measures just sitting on the floor of Congress.""
4. State and local budgets are looking horrendous, without federal aid over 500,000 jobs are going to be eliminated through 2011. In this political climate, the will to continue to spend and bail out state and local governments, much less anyone else just isn't there. It looks as if they will be going through their own very painful deleveraging process.
5. Uncertainty for corporations and small businesses due to tax hikes and burdensome regulations from the health care law and Wall Street Reform. There is a reason why corporations are sitting on $1.8 Trillion and why small businesses aren't hiring and if it wasn't already difficult enough for these entities to hire people as it is, government policies and their incessant need to demonize corporations and their profits are making it that much tougher for them to do so. The crew from PIMCO, who are the largest bonds dealers in the world, and home of the brightest economic minds, nailed it when they coined the term THE NEW NORMAL in 2009, which is defined as slower growth worldwide (more so in the G-3 than in emerging markets), higher unemployment, more de-leveraging, more regulation, and a weaker U.S. dollar over the next 3-5 years. I remember it was just last year when the president's top economic advisor Larry Summers disagreed with PIMCO's assessment of our economy entering into the ""New Normal"" period. It looks now as if Mr. Summers was dead wrong! El Erian, the man who coined the New Normal, compared Summers' view of the U.S. economy to a three-stage rocket ship attempting to escape the pull of Earth's gravity. The first stage is government spending, followed by inventory reductions and consumer demand.
Summers ""has this concept of escape velocity,"" El-Erian said Oct. 9 2009 at a meeting of financial-market professionals in Toronto. ""We don't have enough to achieve escape velocity.""
6. The 800 pound gorilla in the room is our National Debt risk. Look what happened when little old Greece had their problems; then it looked as if the entire European Union was going to come crashing down. People were talking about the Euro currency not surviving, and may I remind everyone that even though it appears that things are back in control again, that situation is far from over. It will re emerge again as all they did was buy some time and all these countries are now just beginning a very painful deleveraging process through austerity measures by cutting budgets, pensions, jobs and benefits that will certainly weigh on the entire Euro zone's growth prospects which means their ability to pay back their own debt will diminish. Considering that 30% of all of our exports go to Europe, and their economies will undoubtedly slow down markedly, this will have a direct impact on our exports.
One day, just the same way the bond vigilantes (bond holders) held these southern European economies accountable for their reckless spending binges; they will undoubtedly turn their ire towards us if we don't act in a timely manner. And who here has confidence that Congress or our president can do what it takes to get our fiscal house in order? Not me. I truly believe that many of our elected leaders, or for that matter many of the rest of us, know the consequences of this risk. Let's put it this way; it basically would be like a run on a bank, except it is a run on the United States. Rates would soar, it would punish consumers, corporations, small businesses, the dollar would plummet, global confidence would fall apart, and there would be a whole new round of systemic risk that would shut the capital markets out which would affect every single securitized investment on the planet. One of the few investments that would gain value would be gold, and it would most likely soar 3, 4, and 5 times its value in a relatively short period of time.
The point of the preceding really hasn't been to highlight the risks of sovereign default or the fear of one happening, but more so to give you an idea of where our economy stands and the challenges we face moving forward. The latest GDP growth figures for the second quarter shows that our economy has been slowing down for three consecutive quarters.
PIMCO's chief, Bill Gross (another one of my favorite economists by the way) said deficit spending by governments that seek to maintain artificial levels of consumption ""can be compared to flushing money down an economic toilet."" He went on to say, ""Deficit spending will be unsuccessful because under the ""new normal"" scenario, deleveraging, re-regulation and de- globalization produces structural headwinds that lead to slower growth and lower-than-average investment returns."" As I've noted, our problems with the labor market are structural, and the idea of spending to fill the gap just isn't working. I want you to think of the Stimulus Strategy as a bridge. On one side of the bridge is pre-recession on the other side is the recovery. The bridge is the stimulus and the idea was to build that bridge long enough to lead us to recovery. The problem is that the distance between the two is much further than most economists, and more importantly, the White house, had woefully anticipated, AND that we don't have the resources ($$) to build a bridge long enough to get us from one side to the other. Now that stimulus funds are dissipating and wearing off, and state and local government jobs will be laying off thousands of workers, there is a very good chance that over the next 2 quarters our GDP growth will be around the 1% -1.5% area which most likely means the real unemployment rate will go higher. So what will this administration or the Federal Reserve do to try to get this economy going in the right direction in a meaningful manner?
Congress and the White House have virtually spent all of their political capital and don't have the will to push through another stimulus bill, and if they do it will be very limited, and I am certain that it would be destined to fail simply because they just don't understand that there is no quick fix solution and their attempts of staving off this downturn are ill-conceived. So that leaves the Federal Reserve. The Federal Reserve has already stepped up in an enormous way by lowering the Fed funds rate to 0%-.25%, with $1.4 Trillion of Quantitative easing through the purchase of Mortgage bonds and US treasuries; essentially printing money to buy our own debt with the purpose of providing more liquidity to the capital markets and lower mortgage rates. In regards to its effectiveness, that can be debated, for both sides. It has brought down rates and it has provided liquidity, but it hasn't increased lending in an appreciable manner, and that folks, is what it's all about.
Here's what I believe what the Federal Reserve will do, and I believe it will happen sometime in the second half of the year. The options are:
1. Buy more assets. The Fed could buy more mortgage-backed securities, or since its holdings of MBS are so large, it could buy more long-term Treasury securities. Even James Bullard, a voting Federal Reserve board member and perennial inflation hawk, recently wrote a piece backing this idea if conditions continue to worsen.
2. Deepen its commitment to hold rates low for a long time. The Fed could rephrase that promise to provide additional guarantees or rock-bottom rates even when the recovery begins to take off.
3. Stop paying interest on excess reserves. The Fed could try to spark more lending by cutting the interest rate it pays banks on reserves they hold at the central bank from the current.25%.
4. Open a new lending facility. The Fed could open or keep open a lending facility to increase credit availability for any sector of the economy it wants to help out such things as commercial real estate.
5. Stop shrinking its huge balance sheet. It would be a more subtle approach as opposed to continuing more asset purchases.
6. The Fed could change its inflation target from 2% to 4%.
All these strategies carry heavy inflationary risks, but the fear of deflation is greater than that of inflation. When the Federal Reserve made their announcement of the $1.4 Trillion mortgage and Treasury purchases, the value of the dollar dropped 11% and the price of gold increased by 25% and silver 55% in a six month time period. Considering that we are now entering into the strongest time of the year for precious metals and we anticipate the dollar to get hammered because of these actions, we strongly advise our clients to increase their precious metal holdings.
I honestly don't see how these actions will help spur bank lending; as noted earlier the problem isn't liquidity or rates, it is confidence from the banking sector to lend. The risks of expanding the Fed's balance sheet are tremendous. The size of the Fed's balance sheet has exploded; it's never ever been as close to as large as it is today. Every time there has been a large expansion of the money supply from central banks, inflation has always followed. Now the whisper on the street is that it Federal Reserve could expand its balance sheet by another trillion dollars.
The money supply that was created can sit there for quite some time, with latent price inflation. If banks don't lend money, then it doesn't matter how much money was created, there will be very little inflation. In order for inflation to come about, the money that was printed has to circulate into the real economy. However, the more money that is out there being held by the banks, the more POTENTIAL inflationary implications and risks exist. Psychology from consumers and banks can suddenly change, and the ""velocity"" of that money can release its way into the economy at an alarming rate, catching policy makers off guard, allowing inflation to take hold.
To make things worse, we see this scenario unfolding within the next few years, WITH a high unemployment rate, most likely around 7-8%, with GDP growth in the 1-2% area. This would be a very bad development for the economy known as stagflation, which can be defined as low growth with high inflation. There wouldn't be too many investments that would thrive in this scenario other than precious metals. Investors should protect themselves by diversifying, and precious metals should be a part of your investment strategy. Once again, I thank you for the time you have taken to read this newsletter; I hope it helps."
Then with a few actions from the Federal Reserve, US treasury, revisions in the mark to market accounting rules, and a massive $850 Billion stimulus bill, VIOLA, Confidence was ""restored"". Banks balance sheets improved, toxic assets held by the banks suddenly disappeared (through accounting magic of mark to market), and artificial stimulus was provided through the America Recovery and Investment Act. Unprecedented global government spending was running rampant, 0% interest rates were provided for the banks, and furthermore $1.4 Trillion worth of Quantitative Easing through the purchase of mortgage bonds and US treasuries from the Federal Reserve was enacted. The Dow climbed from the 6443 to as high as 11,205. The CNBC stock cheerleaders were proclaiming a firm ""recovery"" was in place and that we could expect a V shaped recovery.
It never made sense to me. I told my clients that there wouldn't be a V shaped recovery and that I strongly advised them to not get fooled by the hype. Take everything that was said with a grain of salt and just remember who they are and what their functions are in their professional lives. I told my clients that the reason there wouldn't be anything resembling a V shaped recovery in any shape or form was that we had way too many structural headwinds for this to occur.
1. In the housing market the amount of foreclosures are continuing to climb while the Federal foreclosure plan enacted by the president so far has been a huge failure, according to Special inspector general for the financial bailouts, Neil Barofsky, who said the program has not ""put an appreciable dent in foreclosure filings"". Meanwhile Elizabeth Warren, who chairs a separate Congressional Oversight Panel on the bailouts, has said that Treasury's failure to act more quickly could certainly be hurting the recovery. A problem that once was just for subprime mortgages has recently morphed into the ALT A and prime mortgages, causing an even deeper predicament. Now that the $8000. tax credit program has expired in April, we have had the worst home sales numbers in the last two back to back home reports. Without a recovery in the housing market, people don't feel confident as they see in many cases the highest value asset they own deteriorating, therefore curtailing their normal spending habits. Former U.S. Federal Reserve chairman, Alan Greenspan, recently warned that a fall in house prices could derail the U.S. recovery and trigger a double-dip recession.
2. Credit, which is the life line for many businesses, is nowhere to be found. I've argued that it isn't so much a problem of lack of liquidity as much as it is a problem of lack of credit worthy borrowers and aggregate demand for domestic goods and services, and if you couple that with all the toxic debt that banks are still holding on their balance sheets coming to a standstill, this is what you get; a severe lack of issuance of credit. Until the labor market markedly improves and commercial and residential properties are on safer ground, banks simply won't lend, period.
3. A structurally damaged labor market. Many of the jobs that were lost during this downturn were in the construction and manufacturing base and many of those jobs won't be coming back for a very long time. The overhang in residential and commercial properties is enormous; the demand for goods was crushed, which in turn devastated manufacturing jobs. Even now, with prospects of the manufacturers slightly improving (mainly due to growth from emerging economies), jobs still aren't being offered, and a big reason for that has to do with technology and spending on equipment and software. As John Ryding, the chief economist at RDQ Economics stated, ""You can understand that businesses don't have to pay health care on equipment and software, and these get better tax treatment than you get for hiring people. If you can get away with upgrading capital spending and deferring hiring for a while, that makes economic sense, especially in this uncertain policy environment."" The growth from our economy simply isn't growing fast enough to meaningfully improve the unemployment rate, as even the chairwoman of the president's Council of Economic Advisers, Christina Romer said, ""We need 2.5 percent growth just to keep the unemployment rate where it is. If you want to get it down quickly, you need substantially stronger growth than that. That's what I've been saying for the last several quarters, and that's why I've been hoping that we'll please pass the jobs measures just sitting on the floor of Congress.""
4. State and local budgets are looking horrendous, without federal aid over 500,000 jobs are going to be eliminated through 2011. In this political climate, the will to continue to spend and bail out state and local governments, much less anyone else just isn't there. It looks as if they will be going through their own very painful deleveraging process.
5. Uncertainty for corporations and small businesses due to tax hikes and burdensome regulations from the health care law and Wall Street Reform. There is a reason why corporations are sitting on $1.8 Trillion and why small businesses aren't hiring and if it wasn't already difficult enough for these entities to hire people as it is, government policies and their incessant need to demonize corporations and their profits are making it that much tougher for them to do so. The crew from PIMCO, who are the largest bonds dealers in the world, and home of the brightest economic minds, nailed it when they coined the term THE NEW NORMAL in 2009, which is defined as slower growth worldwide (more so in the G-3 than in emerging markets), higher unemployment, more de-leveraging, more regulation, and a weaker U.S. dollar over the next 3-5 years. I remember it was just last year when the president's top economic advisor Larry Summers disagreed with PIMCO's assessment of our economy entering into the ""New Normal"" period. It looks now as if Mr. Summers was dead wrong! El Erian, the man who coined the New Normal, compared Summers' view of the U.S. economy to a three-stage rocket ship attempting to escape the pull of Earth's gravity. The first stage is government spending, followed by inventory reductions and consumer demand.
Summers ""has this concept of escape velocity,"" El-Erian said Oct. 9 2009 at a meeting of financial-market professionals in Toronto. ""We don't have enough to achieve escape velocity.""
6. The 800 pound gorilla in the room is our National Debt risk. Look what happened when little old Greece had their problems; then it looked as if the entire European Union was going to come crashing down. People were talking about the Euro currency not surviving, and may I remind everyone that even though it appears that things are back in control again, that situation is far from over. It will re emerge again as all they did was buy some time and all these countries are now just beginning a very painful deleveraging process through austerity measures by cutting budgets, pensions, jobs and benefits that will certainly weigh on the entire Euro zone's growth prospects which means their ability to pay back their own debt will diminish. Considering that 30% of all of our exports go to Europe, and their economies will undoubtedly slow down markedly, this will have a direct impact on our exports.
One day, just the same way the bond vigilantes (bond holders) held these southern European economies accountable for their reckless spending binges; they will undoubtedly turn their ire towards us if we don't act in a timely manner. And who here has confidence that Congress or our president can do what it takes to get our fiscal house in order? Not me. I truly believe that many of our elected leaders, or for that matter many of the rest of us, know the consequences of this risk. Let's put it this way; it basically would be like a run on a bank, except it is a run on the United States. Rates would soar, it would punish consumers, corporations, small businesses, the dollar would plummet, global confidence would fall apart, and there would be a whole new round of systemic risk that would shut the capital markets out which would affect every single securitized investment on the planet. One of the few investments that would gain value would be gold, and it would most likely soar 3, 4, and 5 times its value in a relatively short period of time.
The point of the preceding really hasn't been to highlight the risks of sovereign default or the fear of one happening, but more so to give you an idea of where our economy stands and the challenges we face moving forward. The latest GDP growth figures for the second quarter shows that our economy has been slowing down for three consecutive quarters.
PIMCO's chief, Bill Gross (another one of my favorite economists by the way) said deficit spending by governments that seek to maintain artificial levels of consumption ""can be compared to flushing money down an economic toilet."" He went on to say, ""Deficit spending will be unsuccessful because under the ""new normal"" scenario, deleveraging, re-regulation and de- globalization produces structural headwinds that lead to slower growth and lower-than-average investment returns."" As I've noted, our problems with the labor market are structural, and the idea of spending to fill the gap just isn't working. I want you to think of the Stimulus Strategy as a bridge. On one side of the bridge is pre-recession on the other side is the recovery. The bridge is the stimulus and the idea was to build that bridge long enough to lead us to recovery. The problem is that the distance between the two is much further than most economists, and more importantly, the White house, had woefully anticipated, AND that we don't have the resources ($$) to build a bridge long enough to get us from one side to the other. Now that stimulus funds are dissipating and wearing off, and state and local government jobs will be laying off thousands of workers, there is a very good chance that over the next 2 quarters our GDP growth will be around the 1% -1.5% area which most likely means the real unemployment rate will go higher. So what will this administration or the Federal Reserve do to try to get this economy going in the right direction in a meaningful manner?
Congress and the White House have virtually spent all of their political capital and don't have the will to push through another stimulus bill, and if they do it will be very limited, and I am certain that it would be destined to fail simply because they just don't understand that there is no quick fix solution and their attempts of staving off this downturn are ill-conceived. So that leaves the Federal Reserve. The Federal Reserve has already stepped up in an enormous way by lowering the Fed funds rate to 0%-.25%, with $1.4 Trillion of Quantitative easing through the purchase of Mortgage bonds and US treasuries; essentially printing money to buy our own debt with the purpose of providing more liquidity to the capital markets and lower mortgage rates. In regards to its effectiveness, that can be debated, for both sides. It has brought down rates and it has provided liquidity, but it hasn't increased lending in an appreciable manner, and that folks, is what it's all about.
Here's what I believe what the Federal Reserve will do, and I believe it will happen sometime in the second half of the year. The options are:
1. Buy more assets. The Fed could buy more mortgage-backed securities, or since its holdings of MBS are so large, it could buy more long-term Treasury securities. Even James Bullard, a voting Federal Reserve board member and perennial inflation hawk, recently wrote a piece backing this idea if conditions continue to worsen.
2. Deepen its commitment to hold rates low for a long time. The Fed could rephrase that promise to provide additional guarantees or rock-bottom rates even when the recovery begins to take off.
3. Stop paying interest on excess reserves. The Fed could try to spark more lending by cutting the interest rate it pays banks on reserves they hold at the central bank from the current.25%.
4. Open a new lending facility. The Fed could open or keep open a lending facility to increase credit availability for any sector of the economy it wants to help out such things as commercial real estate.
5. Stop shrinking its huge balance sheet. It would be a more subtle approach as opposed to continuing more asset purchases.
6. The Fed could change its inflation target from 2% to 4%.
All these strategies carry heavy inflationary risks, but the fear of deflation is greater than that of inflation. When the Federal Reserve made their announcement of the $1.4 Trillion mortgage and Treasury purchases, the value of the dollar dropped 11% and the price of gold increased by 25% and silver 55% in a six month time period. Considering that we are now entering into the strongest time of the year for precious metals and we anticipate the dollar to get hammered because of these actions, we strongly advise our clients to increase their precious metal holdings.
I honestly don't see how these actions will help spur bank lending; as noted earlier the problem isn't liquidity or rates, it is confidence from the banking sector to lend. The risks of expanding the Fed's balance sheet are tremendous. The size of the Fed's balance sheet has exploded; it's never ever been as close to as large as it is today. Every time there has been a large expansion of the money supply from central banks, inflation has always followed. Now the whisper on the street is that it Federal Reserve could expand its balance sheet by another trillion dollars.
The money supply that was created can sit there for quite some time, with latent price inflation. If banks don't lend money, then it doesn't matter how much money was created, there will be very little inflation. In order for inflation to come about, the money that was printed has to circulate into the real economy. However, the more money that is out there being held by the banks, the more POTENTIAL inflationary implications and risks exist. Psychology from consumers and banks can suddenly change, and the ""velocity"" of that money can release its way into the economy at an alarming rate, catching policy makers off guard, allowing inflation to take hold.
To make things worse, we see this scenario unfolding within the next few years, WITH a high unemployment rate, most likely around 7-8%, with GDP growth in the 1-2% area. This would be a very bad development for the economy known as stagflation, which can be defined as low growth with high inflation. There wouldn't be too many investments that would thrive in this scenario other than precious metals. Investors should protect themselves by diversifying, and precious metals should be a part of your investment strategy. Once again, I thank you for the time you have taken to read this newsletter; I hope it helps."
No Product? So What - You Can Still Make Money - Check This Out
"When looking to the Internet for ways to make money online, it doesn't take too long before you realize what a vast array of choices there are. Blogging for profit, pay per click advertising, article marketing as an affiliate, and CPA offers are only just a few business models out there for you to choose from.
How do you sort through it all? Where do you begin? It's overwhelming - even for the most focused individual.
Yet for those who are determined and have an entrepreneurial spirit, the Internet is wide open. All you really need is a product to promote in a niche with a demographic that's willing to pay for their consumables. The great thing is that you don't need to have your own product to make a very nice living online.
You do this through affiliate marketing programs. With affiliate marketing, you can choose from a vast array of products to promote online - all with a sales page already set up for you. All you need to do is find a way to drive traffic to that site using a specific hyperlink that gives you credit for a commission.
Affiliate Marketing - Explained
Affiliate marketing is when you generate targeted traffic to a particular website selling a product for which you get commission on each and every sale. You don't own the product (although later we'll discuss creating your own product or service and recruiting affiliates to sell for you), but you come up with creative ways to connect a prospective customer to the landing page.
Here's an example of how affiliate marketing works:
Bob the Marketer decides to sell a popular ""how to get a girl"" info product. He heads to the Internet, goes to the ClickBank Marketplace and looks up the dating topic. There, he is presented with a choice of maybe a dozen different products to sell and decides on one whose sales page and statistics prove it converts well.
He clicks ""get hop link,"" which incorporates his own unique ClickBank ID into the URL. He can then take the new URL and includes it somewhere in his sales funnel. When someone reads his sales material (an article, a pay per click ad, a YouTube video which pre-sells the product), and they click through to the sales page and buys it, Joe gets the affiliate commission - usually 50-80% of the price of the product.
Of course, Joe wasn't limited to selling products from ClickBank. There are other affiliate marketing programs out there. Commission Junction, PayDotCom.com and Share-a-Sale are just three of the many other companies that have an affiliate marketplace.
Large websites like Amazon.com and Wal-Mart and others have affiliate programs, too. Just about anything you can think of is available through an affiliate program, including:
• Thousands of eBooks and e-courses on hundreds of different subjects
• Software
• Internet services like autoresponders, keyword tools and hosting companies
• Membership sites
• Video rental (think Netflix)
• Tangible books, videos and music
• Electronics and computers
• Health and beauty items...and more
As you can see, affiliate sales offer an amazing opportunity for both the new and the seasoned Internet marketer alike.
Why Is Affiliate Marketing a Profitable Business?
Affiliate marketing has amazing profit potential. Think about it this way: everything is already set up for you - a great product with enormous profit potential. If you want to sell exercise equipment, you can earn a nice commission from Amazon.com or even Wal-Mart. That can add up very fast, depending on how you drive traffic to the main site.
There is plenty of opportunity to profit during the holiday time. You can take advantage of the shopper's need to find toys and other gifts by promoting them through a website or small ad. The customer gets what they want - convenient shopping - and you get what you want - a commission for leading them to the sale.
As discussed earlier, info products have great profit potential, because most affiliate programs pay upwards of 50 to 80% on the total sale. The average ClickBank product, for example, pays more than $25 per sale.
The beauty of info products is that they're digital and are easily downloaded within minutes - which is something that's very appealing to your potential customer - instant gratification. The sooner they can have the product, the more likely they are to spend money for the information.
Are you into the multi-billion dollar health niche? You can find just about any vitamin, supplement or tonic that fits. You know that the Internet Marketing niche is hot, but you're wondering how to break into it and grab a piece of the pie.
There are literally hundreds of top selling affiliate marketing programs on ClickBank. All you have to do is pick one and find a way to promote it. You don't have to be the guru people turn to in order to learn about Internet marketing - you can just provide links to solutions that would solve their problems.
What Does a Good Affiliate Program Offer You?
Affiliate marketing is ideal when you really want to get into a niche and start making profits sooner than it might take you to put together your own product and subsequently come up with sales copy. With affiliate marketing, the meaty part of the sales funnel is already mostly set up for you.
By sales funnel, I mean this: Starting from the time your potential customer finds your site via the search engines or through browsing the 'net - until he or she clicks the order button.
It looks something like this:
The customer types in his search terms in search engine (or is browsing and sees an ad) and clicks through. In the case of the search engine, this brings up a page of top ranking pages for the terms as well as paid for ads (PPC). The customer clicks on one or more of the choices until they find what they need.
In the case of an ad, he clicks through and he lands on either your squeeze page and signs up on your email list - or he lands on one of the other online pages you've set up to facilitate a sale.
From here, he may choose to click on any one of several affiliate links leading to the sales page. He decides to buy - you get a commission - he gets his product.
That is a rather general sales funnel. As you can see, with affiliate marketing, at the very least there is the sales page and product ready to fit into your plans. Those are two of the biggest hurdles for a marketer to face, and this part is done for you.
One of the most daunting tasks for an infopreneur is writing a cash-pulling sales letter. Creating a sales page is an art - and a well written one can make its owner thousands of dollars over its lifetime or in a single day.
They can cost many hundreds (if not thousands) of dollars to have written for you by someone who is an expert copywriter. That can be intimidating at best for some.
That fact, plus the task of coming up with a desirable product, is a big mountain to face. Creating an infoproduct is both a simple process and a huge responsibility. Writing may not be your first and best talent.
You might know that a particular niche is a great source of income, but don't want to take the time, right now, to put together a full blown report. A good info product with staying power in the marketplace has been well-researched and is thorough in its content.
With affiliate marketing, that issues is solved. Your only job is to complete the first part of the sales funnel (generating traffic) with one or more of the following steps:
• Capture the traffic though PPC advertising
• SEO optimized articles on ezine directories, Squidoo, Hub Pages, and other web 2.0 properties
• Classified ads
• Banner ads
• Blog posts
• Forum marketing
Then send the traffic to a squeeze page where you offer a nice 5-7 page report for free on the topic of your niche in exchange for their name and email address. This ensures you'll be able to market to them after the initial sale.
Or, you can send them to your website or blog where they can learn more about what you're selling if you feel they may need a more intense pre-sell regimen. This is often the case if you find a great product to promote as an affiliate, but the product owner's sales copy is weaker than expected.
As an affiliate marketer, your main focus is on getting the sales copy in front of the prospect's eyes. You have to get inside your potential buyer's mind and thinking process - what actually motivates them to seek your product in the first place? What words or phrases do they use in their search engine journey to find the information they need?
A good affiliate program has the materials provided by the owner of the product or service to make your job easier. It will have many of the pieces ready to fit into a the marketing funnel - including pre-made banner ads, a list of suggested keywords, a short report to offer as a viral freebie, PLR articles and a pack of ready to use email messages.
What You Need to Know to Begin Affiliate Marketing
While affiliate marketing does offer a shorter sales process for you, there are still some things you need to know before you can just slap up some site, drive traffic and get decent conversions.
For one, you need to know how to pick products. You'll need to do some homework. That involves deciding on the niche you wish to pursue and then researching where to find the product or service that you want to promote within the niche. Some do it in reverse and will look for a hot selling product and then find ways to get a piece of the niche profits.
A good affiliate marketer knows his or her market - and part of the way they get to know them is through visiting the niche forums and paying attention to the questions that keep coming up.
At some point, you'll want to do some keyword research, too. Get inside your prospect's mind so that you know what terms to focus your campaign on. A good affiliate program may have these listed for you to help make your job easier, but you can find words and phrases other affiliates aren't using and rank very high for those in search engines like Google.
Then, once you've chosen your product, you need to be signed up in the affiliate program. This is fairly simple for some companies like ClickBank or Amazon, but others have a more involved sign up process.
Next, you'll want to grab your unique affiliate hyperlink for the product, which ensures that you get paid on any sales made through your referrals.
Now the fun part - getting targeted traffic to the affiliate sales page! This involves writing articles to publish on ezine directories or Squidoo or having PPC ads pointing people directly to the main sales site.
For products or services that lend themselves well to ongoing sales, like weight loss, dating, make money online, etc., you'll certainly want to set up an email capture page (squeeze page) which will involve you getting an autoresponder service.
There are so many ways to catch and drive traffic that are beyond the scope of this report, so do your homework. With so many choices, you're sure to find the perfect product to promote - and the best traffic tactic to use with your niche prospects.
Would you like to be on the other side of the coin? A product owner who has an army of affiliates working to funnel traffic to you in exchange for a percentage of the sale? It's easy, once you know how.
Affiliate Marketing and Your Own Product
There are two sides to affiliate marketing: being an affiliate marketer as we have just discussed and selling a product that others can promote as affiliates for you.
You become the product creator.
You come up with a sales page.
You design an affiliate program that makes selling your product profitable to others.
Aside from having a top quality info product that caters to a hungry market, you also need to invest time or money into creating a sales letter that makes it impossible for visitors to pass by.
There is a two-fold benefit to having your own product: you profit from initial sales, plus you profit on the commissions from affiliate links strategically placed inside your own product.
If you want to make your affiliate program really shine and make it enticing for affiliates, then you need to offer the following:
• Review copy of the product
• Sales letter that you're testing, tracking and tweaking
• Banner ads of various sizes and color schemes
• Text link ads for them to embed on their blog or website
• Free viral report they can use to attract prospects for you
• A week's worth or more of autoresponder messages they can use to email their list
• Five or more articles that fit the niche and are ready to use in article directories and other hot spots online
• PPC ads that are ready for them to go live with
• Regular interaction and encouragement with affiliate marketers, including contests that offer prizes to top affiliates.
Also, when you price your product, make sure you set the commission so that it's generous to affiliates. Many affiliates are looking for at least a $20 affiliate commission. The higher the price point of the product, the lower the percentage you can offer to affiliates. For instance, they would love 10% of a $1,000 product ($100) over 50% of a $100 product ($50).
Affiliate marketing is a great way for online entrepreneurs to make a great income without shouldering the full burden of a marketer. It may take a little homework to find the right niche and the right product, but add to that your own determination to make it work and affiliate marketing could be the answer to putting your day job to rest - once and for all."
How do you sort through it all? Where do you begin? It's overwhelming - even for the most focused individual.
Yet for those who are determined and have an entrepreneurial spirit, the Internet is wide open. All you really need is a product to promote in a niche with a demographic that's willing to pay for their consumables. The great thing is that you don't need to have your own product to make a very nice living online.
You do this through affiliate marketing programs. With affiliate marketing, you can choose from a vast array of products to promote online - all with a sales page already set up for you. All you need to do is find a way to drive traffic to that site using a specific hyperlink that gives you credit for a commission.
Affiliate Marketing - Explained
Affiliate marketing is when you generate targeted traffic to a particular website selling a product for which you get commission on each and every sale. You don't own the product (although later we'll discuss creating your own product or service and recruiting affiliates to sell for you), but you come up with creative ways to connect a prospective customer to the landing page.
Here's an example of how affiliate marketing works:
Bob the Marketer decides to sell a popular ""how to get a girl"" info product. He heads to the Internet, goes to the ClickBank Marketplace and looks up the dating topic. There, he is presented with a choice of maybe a dozen different products to sell and decides on one whose sales page and statistics prove it converts well.
He clicks ""get hop link,"" which incorporates his own unique ClickBank ID into the URL. He can then take the new URL and includes it somewhere in his sales funnel. When someone reads his sales material (an article, a pay per click ad, a YouTube video which pre-sells the product), and they click through to the sales page and buys it, Joe gets the affiliate commission - usually 50-80% of the price of the product.
Of course, Joe wasn't limited to selling products from ClickBank. There are other affiliate marketing programs out there. Commission Junction, PayDotCom.com and Share-a-Sale are just three of the many other companies that have an affiliate marketplace.
Large websites like Amazon.com and Wal-Mart and others have affiliate programs, too. Just about anything you can think of is available through an affiliate program, including:
• Thousands of eBooks and e-courses on hundreds of different subjects
• Software
• Internet services like autoresponders, keyword tools and hosting companies
• Membership sites
• Video rental (think Netflix)
• Tangible books, videos and music
• Electronics and computers
• Health and beauty items...and more
As you can see, affiliate sales offer an amazing opportunity for both the new and the seasoned Internet marketer alike.
Why Is Affiliate Marketing a Profitable Business?
Affiliate marketing has amazing profit potential. Think about it this way: everything is already set up for you - a great product with enormous profit potential. If you want to sell exercise equipment, you can earn a nice commission from Amazon.com or even Wal-Mart. That can add up very fast, depending on how you drive traffic to the main site.
There is plenty of opportunity to profit during the holiday time. You can take advantage of the shopper's need to find toys and other gifts by promoting them through a website or small ad. The customer gets what they want - convenient shopping - and you get what you want - a commission for leading them to the sale.
As discussed earlier, info products have great profit potential, because most affiliate programs pay upwards of 50 to 80% on the total sale. The average ClickBank product, for example, pays more than $25 per sale.
The beauty of info products is that they're digital and are easily downloaded within minutes - which is something that's very appealing to your potential customer - instant gratification. The sooner they can have the product, the more likely they are to spend money for the information.
Are you into the multi-billion dollar health niche? You can find just about any vitamin, supplement or tonic that fits. You know that the Internet Marketing niche is hot, but you're wondering how to break into it and grab a piece of the pie.
There are literally hundreds of top selling affiliate marketing programs on ClickBank. All you have to do is pick one and find a way to promote it. You don't have to be the guru people turn to in order to learn about Internet marketing - you can just provide links to solutions that would solve their problems.
What Does a Good Affiliate Program Offer You?
Affiliate marketing is ideal when you really want to get into a niche and start making profits sooner than it might take you to put together your own product and subsequently come up with sales copy. With affiliate marketing, the meaty part of the sales funnel is already mostly set up for you.
By sales funnel, I mean this: Starting from the time your potential customer finds your site via the search engines or through browsing the 'net - until he or she clicks the order button.
It looks something like this:
The customer types in his search terms in search engine (or is browsing and sees an ad) and clicks through. In the case of the search engine, this brings up a page of top ranking pages for the terms as well as paid for ads (PPC). The customer clicks on one or more of the choices until they find what they need.
In the case of an ad, he clicks through and he lands on either your squeeze page and signs up on your email list - or he lands on one of the other online pages you've set up to facilitate a sale.
From here, he may choose to click on any one of several affiliate links leading to the sales page. He decides to buy - you get a commission - he gets his product.
That is a rather general sales funnel. As you can see, with affiliate marketing, at the very least there is the sales page and product ready to fit into your plans. Those are two of the biggest hurdles for a marketer to face, and this part is done for you.
One of the most daunting tasks for an infopreneur is writing a cash-pulling sales letter. Creating a sales page is an art - and a well written one can make its owner thousands of dollars over its lifetime or in a single day.
They can cost many hundreds (if not thousands) of dollars to have written for you by someone who is an expert copywriter. That can be intimidating at best for some.
That fact, plus the task of coming up with a desirable product, is a big mountain to face. Creating an infoproduct is both a simple process and a huge responsibility. Writing may not be your first and best talent.
You might know that a particular niche is a great source of income, but don't want to take the time, right now, to put together a full blown report. A good info product with staying power in the marketplace has been well-researched and is thorough in its content.
With affiliate marketing, that issues is solved. Your only job is to complete the first part of the sales funnel (generating traffic) with one or more of the following steps:
• Capture the traffic though PPC advertising
• SEO optimized articles on ezine directories, Squidoo, Hub Pages, and other web 2.0 properties
• Classified ads
• Banner ads
• Blog posts
• Forum marketing
Then send the traffic to a squeeze page where you offer a nice 5-7 page report for free on the topic of your niche in exchange for their name and email address. This ensures you'll be able to market to them after the initial sale.
Or, you can send them to your website or blog where they can learn more about what you're selling if you feel they may need a more intense pre-sell regimen. This is often the case if you find a great product to promote as an affiliate, but the product owner's sales copy is weaker than expected.
As an affiliate marketer, your main focus is on getting the sales copy in front of the prospect's eyes. You have to get inside your potential buyer's mind and thinking process - what actually motivates them to seek your product in the first place? What words or phrases do they use in their search engine journey to find the information they need?
A good affiliate program has the materials provided by the owner of the product or service to make your job easier. It will have many of the pieces ready to fit into a the marketing funnel - including pre-made banner ads, a list of suggested keywords, a short report to offer as a viral freebie, PLR articles and a pack of ready to use email messages.
What You Need to Know to Begin Affiliate Marketing
While affiliate marketing does offer a shorter sales process for you, there are still some things you need to know before you can just slap up some site, drive traffic and get decent conversions.
For one, you need to know how to pick products. You'll need to do some homework. That involves deciding on the niche you wish to pursue and then researching where to find the product or service that you want to promote within the niche. Some do it in reverse and will look for a hot selling product and then find ways to get a piece of the niche profits.
A good affiliate marketer knows his or her market - and part of the way they get to know them is through visiting the niche forums and paying attention to the questions that keep coming up.
At some point, you'll want to do some keyword research, too. Get inside your prospect's mind so that you know what terms to focus your campaign on. A good affiliate program may have these listed for you to help make your job easier, but you can find words and phrases other affiliates aren't using and rank very high for those in search engines like Google.
Then, once you've chosen your product, you need to be signed up in the affiliate program. This is fairly simple for some companies like ClickBank or Amazon, but others have a more involved sign up process.
Next, you'll want to grab your unique affiliate hyperlink for the product, which ensures that you get paid on any sales made through your referrals.
Now the fun part - getting targeted traffic to the affiliate sales page! This involves writing articles to publish on ezine directories or Squidoo or having PPC ads pointing people directly to the main sales site.
For products or services that lend themselves well to ongoing sales, like weight loss, dating, make money online, etc., you'll certainly want to set up an email capture page (squeeze page) which will involve you getting an autoresponder service.
There are so many ways to catch and drive traffic that are beyond the scope of this report, so do your homework. With so many choices, you're sure to find the perfect product to promote - and the best traffic tactic to use with your niche prospects.
Would you like to be on the other side of the coin? A product owner who has an army of affiliates working to funnel traffic to you in exchange for a percentage of the sale? It's easy, once you know how.
Affiliate Marketing and Your Own Product
There are two sides to affiliate marketing: being an affiliate marketer as we have just discussed and selling a product that others can promote as affiliates for you.
You become the product creator.
You come up with a sales page.
You design an affiliate program that makes selling your product profitable to others.
Aside from having a top quality info product that caters to a hungry market, you also need to invest time or money into creating a sales letter that makes it impossible for visitors to pass by.
There is a two-fold benefit to having your own product: you profit from initial sales, plus you profit on the commissions from affiliate links strategically placed inside your own product.
If you want to make your affiliate program really shine and make it enticing for affiliates, then you need to offer the following:
• Review copy of the product
• Sales letter that you're testing, tracking and tweaking
• Banner ads of various sizes and color schemes
• Text link ads for them to embed on their blog or website
• Free viral report they can use to attract prospects for you
• A week's worth or more of autoresponder messages they can use to email their list
• Five or more articles that fit the niche and are ready to use in article directories and other hot spots online
• PPC ads that are ready for them to go live with
• Regular interaction and encouragement with affiliate marketers, including contests that offer prizes to top affiliates.
Also, when you price your product, make sure you set the commission so that it's generous to affiliates. Many affiliates are looking for at least a $20 affiliate commission. The higher the price point of the product, the lower the percentage you can offer to affiliates. For instance, they would love 10% of a $1,000 product ($100) over 50% of a $100 product ($50).
Affiliate marketing is a great way for online entrepreneurs to make a great income without shouldering the full burden of a marketer. It may take a little homework to find the right niche and the right product, but add to that your own determination to make it work and affiliate marketing could be the answer to putting your day job to rest - once and for all."
Monday, May 7, 2018
On the Ways and Means of Network Marketing: Insight From an Ex-Marketer
"In the fall of 2005 I made a decision that would prove to teach me many things. My good friend had called and said he wanted to show me something. Naturally, I was curious, and since we had been good friends for over 20 years, my decision to hear what he had to say was an easy one. Had he been a complete stranger, my reluctance meter might have created a very different outcome.
And so we met. He made the trip to my place, about 2.5 hours from the hometown where we both grew up, and where he currently resides today. Knowing that I had a background in Health, and was very interested in learning about new products and services that can help people realize more of their potential, my friend placed a bottle on the table; it was a nutritional product.
He had been using the product for a few months, and after looking into the business model and company history, had enrolled in the company as a Marketing Executive. He proceeded to show me his website, and discussed the compensation plan and the various ways in which a person can earn money. I was intrigued. I told him I would try the product, and if it helped me with some digestive issues I was having, I would consider the business. He thought that sounded fair. He gave me a bottle to try ($45 for a one liter bottle), and said the next one would be on me. I agreed.
Onwards and Forwards
Fast forward two months. I had finished the bottle my friend had given me, and I was signed up as a Marketing Executive. I had my very own home-based business. Very exciting. The thought of working for myself, among a team of like-minded individuals, was very appealing. And since I would have existing team members in various countries, at virtually any time of the day or night I could have my questions answered.
My intention was to be working my business full scale in a year's time. And by all accounts, my team members assured me that this was a very realistic goal. Being new to the world of Network Marketing (NM), I had no reference point for discerning whether what they were telling me was true. And so it goes when trying something for the first time.
In less than a month, I had earned my first cheque. Now, let me qualify this. Since I had been encouraged to order some product upon enrollment (which is reasonable considering I had just started a business and would need product on hand in order to educate potential customers), the earnings on my first cheque were from product rebates from each case I ordered.
I had sold a few bottles, but most of the first $500 I spent on product was gifted to others through efforts to raise product awareness. Not entirely a smart way to do business, but as an amateur in the field, it seemed like this was a common way of doing business for some.
And, from those 12 or so bottles I had given away, some of those prospects went on to become customers (some for a few months, a few others for several months), and a handful went on to become Marketing Executives (again, some for a few months, and others for a year or so).
The people to whom I had gifted product were predominantly family and friends. This is referred to as a 'warm market', people who I know and trust, and who trust me. They are the first step in prospecting for potential customers and business owners. Since they trust me, they are more likely to be open to hear what I have to say.
As a result, the probability that I can persuade them of the merits of my cause rises exponentially. Contrast this with finding, approaching, and persuading a complete stranger - in the beginning, family and friends are simply the quickest, shortest, and more reliable route. All in all, my first few months within the world of NM, was, by most accounts, a success. And I continued to be successful for the next year or so. In my tenth month, I earned my largest cheque - $1800.00. My residual income was around $600. Not bad for a first timer.
Let's fast forward again...3 years.
Today, I am no longer doing network marketing. My total career spanned approximately 14 months. Due to various changes within my life and business, it is no longer part of my focus. But along the way, I gained some extremely invaluable insight into the ways and means of the industry.
What follows is designed to assist anyone who might be considering this business, or those who are in the business already to clarify their intentions and ensure you don't lose yourself, and your pocketbook, in the pursuit of your dreams.
The Larger Landscape
NM is an incredibly alluring concept. In theory, it seems too good to be true. And for some, (it is reported that less than 1% ever make any money in NM - some reports indicate around 10%), the sky can be the limit. NM is like being part of a large cohesive team that experiences ups and downs akin to the stock market.
Within a few months, you can go from making a few dollars to several thousand, depending of course, upon the overall momentum of the team and how much effort you put in. Or, if you are well connected, and have a significant number of people within your social/business network already, your earnings can skyrocket very quickly.
When this happens, the adrenaline rush can be addicting. And I would suggest that the emotional high one experiences from these spikes has many folks locked into a cycle of emotional addiction that runs deeper than sheer excitement.
It seems to me that, for many, NM is like a drug that can't be put down. The excitement that is first felt, upon generating some earnings, causes one to believe that this thing called NM can actually work. And it does...for about 1% or so of the total number ever involved.
The Next Big Thing
As is customary within the industry, when one company falls short in furthering one's financial goals, many people jump ship, finding the next trend and starting over. But it isn't entirely like starting over; once a large team is established, often the leader brings his group (downline) over to the next company. And when everyone begins ordering product to start their new venture, momentum is created, and those leaders in the right spot experience a spike in earnings. Intoxicating it is.
Out of the network marketers that I know, many of whom have been in the industry mainly part-time for a decade or more, they have been involved with 4-5 companies or more. It seems that when one gravy train dries up, they move on, like a herd of buffalo seeking new territory.
And while changes in life do happen, and some companies make decisions that conflict with one's integrity, too often network marketers move on thinking that the next company is the right one. But if honesty is to prevail, many have been saying that to themselves, and trumpeting that to their prospects and friends and family, since enrolling with company #1.
While no one can be faulted for needing to clarify their values and move on, or denied the freedom to make choices that they see as right and appropriate, when one continues to make ongoing company changes while recycling the same lines used during previous ventures, something begins to happen...that individual begins to lose credibility with those around them. Was the last company the 'real one' or this new company 'the next big thing'? Did the last company have the 'best comp plan in the industry' or does this latest organization? When all and more is being said over and over, the meaning of those words becomes saturated, old, tired.
But as long as the herd is telling it to themselves, and group consciousness continues to reinforce the group 'truth', then the herd can roam from territory to territory, decade after decade, chasing the illusive payout, and all the while coming to identify so tightly with the group that they lose themselves in the process.
After a while, they come to know not what they are striving for, nor do they continue to ask themselves. They just know that others are still carrying on, and that is enough for them - it is what they know, have come to love, and can't let go.
But after 10 years or more of pursuing an idea, in any arena of life, you have to ask yourself if the return has been worth the investment. The path of the NM is one of emotional intensity. And that is hard to let go of. When I left my company, I felt a large void. Where else can you connect with people on a part-time basis who are so like-minded, pursuing the same hopes and dreams, so supportive, full of energy? It was very rewarding on a psycho-emotional level.
While I have found that experience since with my career, the initial loss was devastating. It was like leaving a relationship - there was a grieving period, followed by acceptance, a letting go, followed by renewal. But it seems many are afraid or not willing to let go, even though the writing is on the wall, and may have been for some time:
• Husbands still telling their wives that this one is 'the one', all the while investing $200-$300 in product and materials every month, even though their budget should not allow for such things. ""Eventually, this will pay off honey. It is investing in the short term for a payout in the long term.""
'Keep believing in me' and 'I can't accept that this hasn't worked out the way I intended' is the essence of this perspective.
• Wives still justifying to their husbands that their business must go on because 'I have been home with the kids all day'.
The essence of this perspective is 'You owe me', all the while running around to business meetings, telling one's self that progress is being made, when in reality, very little true business success is taking place. In psychiatric circles this is called 'the illusion of work'.
• Individuals telling themselves that they will never leave the world of NM because of how it makes them feel, not allowing themselves to see that their initial plans have shifted into the realm of illusion, and that what they think they are doing is not really happening, and hasn't been for some time.
The essence of this perspective is 'My dreams are too important. I will never give up'. But at some point you must begin to get painfully honest about why you are doing what you are doing, and if the results of that doing is worth the effort to keep doing.
Many a family and relationship have been strained, even ruined, because of the pursuit of the warm market. The challenge with the warm market is, once you use up all the customary sales lines, which might be true to varying degrees, during your run with the first company, lines like...
• 'best comp plan in the industry'
• 'a product like nothing else'
• 'the right leadership'
• 'proven track record'
• 'a science driven product line'
• 'a literal cash cow'
• 'people are making $30,000 and up, per month'
• 'you don't have to sell, just share'
...you can't very well use those lines with the same people (family, friends, and associates) the second, third, and fourth time around. Eventually, you just sound silly. And if they did join you during the first venture, they will come to see for themselves that real business development requires sales, marketing, budgeting, planning, and strategic thinking. The 'just sharing' notion will work for the first few months or so, but after that, all of the above are required.
Free Entry or Market Saturation
I remember when our big product first launched, myself and a handful of other reps, whom I didn't know, had approached many of the same establishments within our region. Soon, many of these businesses had become over-exposed; they refused to engage us. This is one of the drawbacks of the NM model - where anyone can become a rep, and there is no limit to the number of reps within a territory. The up side is that there are no barriers to access - anyone who is motivated can take action and get ahead of their competition. All are welcome to try their hand at this illusive and challenging business called NM.
But even though you might be part of the larger organization, teams within the company are competing with each other. And while it might be said that you are family, and to a large degree this atmosphere can be created and felt at conventions, when it comes to prospecting a territory, if your co-reps are not in your upline or downline, they are competition.
Is this model sustainable? It seems that the more reps you add to a given territory, the less and less become the number of prospects. A saturation point is reached and eventually everyone has heard about this latest product, sometimes to the point where now they don't want to hear another thing about it. There is something to be said for limiting the number of reps who can then explore a given territory over time. This might create more gradual, sustainable growth.
But this approach might not lead to the huge spikes in income that occur with the current model...rapid cash, fast! There is that emotional high again...feels so good. Like watching your stock go up in value, but instead of watching by as a passive observer, with NM, you can directly influence the outcome. Compelling indeed.
Borrowing from the Future
For some, network marketing has earned them a literal fortune. And to those few, I say congratulations, sincerely. My hopes and dreams when I first started rested upon a plan that would eventually see me earning huge chunks of money each month. It didn't happen, not because it can't happen, but because my priorities shifted. My life had indicated to me that it was time to pause, step back, reflect, re-calibrate.
For the most part I had a very positive experience with NM. I met a lot of great people, some of whom I still connect with on occasion. And the magic that I felt during that first year was palpable. That energy has continued to sustain me in many ways since that time. I still check in to see how the company is doing today. I have many great memories that are mine to keep.
And, the tax benefits of having a home-based business are excellent. For this reason alone, it might be wise to look into some form of home-based business that doesn't cost you too much to operate each month. But make sure you aren't spending/investing more than you can afford to invest.
I made the foolish mistake of borrowing from the future - meaning, I expected that I would be earning a lot of money in the future, so I justified all my expenses as necessary costs in running a business. This turned out to be a costly mistake. Add to that, most companies encourage you to attend their training events. I went to Dallas, Orlando, and Las Vegas, all wonderful trips, but the reality was, I was borrowing from the future to finance the present. And it backfired.
While attending trainings is very important, and it helps you to understand, catch and live the vision of the company and its owners, if you don't have the money, don't dig yourself into a hole that you will be digging yourself out of a year from now. The tricky part is...you have this entire team playing the hype card.
And this energy gets in you, and fuels you, and the next thing you know you are at a convention buying 5 - $200 tickets for the next convention because you just know your team is going to grow, and you don't want them to miss out on the experience. Hogwash. Know yourself, and don't get caught up in this energy unless you have the cash to do so.
The Real Cash Cow
In December 2009, I was introduced to a woman who was prospecting a friend of mine for her NM business. Since I had no intentions of considering her business, I sat patiently while she did her sales presentation; we were in a coffee shop. At one point she turned to me and said,
""Are you considering the business?""
I very politely but directly stated, ""No, I'm not interested.""
To which she replied, ""Oh, you should be. This opportunity is a literal cash cow. There is so much money to be made.""
I felt nauseous. I had used all these lines before. It felt almost as if I was being conned, and I had to ask myself in a quieter moment, ""Did I really say that kind of stuff to people?""
The answer is ""Yes"".
Live and learn as they say. You go with what you know at the time, and when you know better, hopefully you do better. This woman's approach cemented for me why I was not interested in her business, but more than that, why I was not interested in her as a person. To be sure, she's entitled to learn and grow just like everyone else. I can't fault her, because I myself was there once. I recently heard from our mutual friend that she has since left that company and moved on to a new one. And from there, she has since moved on to her third company.
I have come to understand something; the real cash cow as it relates to NM, save the less than 1% who ever make it big, has to do with the company itself. The reality for over 90% of people who start a business with a NM company is that they really exist over time as glorified customers, acting as business owners. This is great for the company; either way, they are moving product and increasing their bottom line.
The more a company can entice people to dream big, get in on the opportunity, and make a lot of money, the more money the company makes through product sales when a new business owner makes their first order. And most companies require business owners to sign up for an auto-ship every month, so the company continues to make a good chunk of money from every business owner for as long as they operate their business.
For many people, this is justifiable because they purchase these types of products on a monthly basis anyway, so why not order them from your own business? Makes sense for sure. But for all the people that lose in NM, the company consistently wins. And that's okay. The owners chose to get into the business because they are smart and know that NM can generate large sums of money quickly. And some even have good values and love to help others, like the one I was involved with.
In Summary
• Know yourself.
Stop following the herd just because it feels good and it's nice to be accepted by a group of people with whom you identify. If your finances are suffering, or if you have been at it for a long time with no sustained results, face reality and move on. Find a new hobby, or join a social club. It might be cheaper.
Perhaps you are blocking the expression of your true potential because you won't let go of this 'idea' masquerading as a business. For some, it functions as a real business - figure out which one it is for you...today.
• Know yourself.
Just before you move on to your next company, ask yourself: What I am really doing here? Why I am making this decision? Is this truly going to bring me what I think it's going to bring me? And what is that exactly? Am I afraid to let go, to distance myself from all the hype and energy, and really figure out who I am? Again, the energy is enticing, even addicting. Figure out if you are addicted to this entity called NM and decide if that is okay with you. If it's not, figure out how to let go.
• Know yourself.
Stop recycling the same old lines. You are beginning to look silly. People have caught on, and you are bigger than this. You deserve more. Pull back, re-connect from a more authentic place, and stay real. The hype is tainting your credibility and possibly your mental health.
• Know yourself.
Ask hard questions. Don't accept the customary lingo and approach just because your leader is telling you it works. If it doesn't jive with the values and ethics you walked in with, it might be time to walk out. Don't sell your soul for a pay cheque.
• Know yourself.
Consider how approaching your family and friends might make things awkward in the future if business goes sour. Rethink the warm market approach, and consider selling to strangers. Then if things don't work out, you still have your family and friends intact.
• Know yourself.
Don't give up on your dreams, but get better at discerning if they are materializing or if you are just chasing an illusion that you propped up long ago and are afraid to let go of.
• Know yourself.
Have fun, don't take yourself too seriously, and don't let business come between friendships. This is The Way of the Fool.
The reality is, sometimes our dreams need time to breathe. If we never step back, pause, reflect, take a break, peel away for a while, but continue pursuing our plans relentlessly, we never gain the added value of knowing whether the dreams we are pursuing want to pursue us.
Maybe they have moved on.
Maybe we have been facing in the same direction for so long that we falsely conclude 'this' is what will make us happy.
Maybe we have become wired to the adrenaline rush, and more than anything else, that is what we are still pursuing but haven't yet caught on.
Do your dreams and yourself a favour; slow down. In your ongoing attempt to keep the dream alive, you might be missing out on some key indicators that are signaling you down a different path...a better path.
Stay Well My Friends,
Timothy Gauthier
2011, SMARTLife Wellness Co."
And so we met. He made the trip to my place, about 2.5 hours from the hometown where we both grew up, and where he currently resides today. Knowing that I had a background in Health, and was very interested in learning about new products and services that can help people realize more of their potential, my friend placed a bottle on the table; it was a nutritional product.
He had been using the product for a few months, and after looking into the business model and company history, had enrolled in the company as a Marketing Executive. He proceeded to show me his website, and discussed the compensation plan and the various ways in which a person can earn money. I was intrigued. I told him I would try the product, and if it helped me with some digestive issues I was having, I would consider the business. He thought that sounded fair. He gave me a bottle to try ($45 for a one liter bottle), and said the next one would be on me. I agreed.
Onwards and Forwards
Fast forward two months. I had finished the bottle my friend had given me, and I was signed up as a Marketing Executive. I had my very own home-based business. Very exciting. The thought of working for myself, among a team of like-minded individuals, was very appealing. And since I would have existing team members in various countries, at virtually any time of the day or night I could have my questions answered.
My intention was to be working my business full scale in a year's time. And by all accounts, my team members assured me that this was a very realistic goal. Being new to the world of Network Marketing (NM), I had no reference point for discerning whether what they were telling me was true. And so it goes when trying something for the first time.
In less than a month, I had earned my first cheque. Now, let me qualify this. Since I had been encouraged to order some product upon enrollment (which is reasonable considering I had just started a business and would need product on hand in order to educate potential customers), the earnings on my first cheque were from product rebates from each case I ordered.
I had sold a few bottles, but most of the first $500 I spent on product was gifted to others through efforts to raise product awareness. Not entirely a smart way to do business, but as an amateur in the field, it seemed like this was a common way of doing business for some.
And, from those 12 or so bottles I had given away, some of those prospects went on to become customers (some for a few months, a few others for several months), and a handful went on to become Marketing Executives (again, some for a few months, and others for a year or so).
The people to whom I had gifted product were predominantly family and friends. This is referred to as a 'warm market', people who I know and trust, and who trust me. They are the first step in prospecting for potential customers and business owners. Since they trust me, they are more likely to be open to hear what I have to say.
As a result, the probability that I can persuade them of the merits of my cause rises exponentially. Contrast this with finding, approaching, and persuading a complete stranger - in the beginning, family and friends are simply the quickest, shortest, and more reliable route. All in all, my first few months within the world of NM, was, by most accounts, a success. And I continued to be successful for the next year or so. In my tenth month, I earned my largest cheque - $1800.00. My residual income was around $600. Not bad for a first timer.
Let's fast forward again...3 years.
Today, I am no longer doing network marketing. My total career spanned approximately 14 months. Due to various changes within my life and business, it is no longer part of my focus. But along the way, I gained some extremely invaluable insight into the ways and means of the industry.
What follows is designed to assist anyone who might be considering this business, or those who are in the business already to clarify their intentions and ensure you don't lose yourself, and your pocketbook, in the pursuit of your dreams.
The Larger Landscape
NM is an incredibly alluring concept. In theory, it seems too good to be true. And for some, (it is reported that less than 1% ever make any money in NM - some reports indicate around 10%), the sky can be the limit. NM is like being part of a large cohesive team that experiences ups and downs akin to the stock market.
Within a few months, you can go from making a few dollars to several thousand, depending of course, upon the overall momentum of the team and how much effort you put in. Or, if you are well connected, and have a significant number of people within your social/business network already, your earnings can skyrocket very quickly.
When this happens, the adrenaline rush can be addicting. And I would suggest that the emotional high one experiences from these spikes has many folks locked into a cycle of emotional addiction that runs deeper than sheer excitement.
It seems to me that, for many, NM is like a drug that can't be put down. The excitement that is first felt, upon generating some earnings, causes one to believe that this thing called NM can actually work. And it does...for about 1% or so of the total number ever involved.
The Next Big Thing
As is customary within the industry, when one company falls short in furthering one's financial goals, many people jump ship, finding the next trend and starting over. But it isn't entirely like starting over; once a large team is established, often the leader brings his group (downline) over to the next company. And when everyone begins ordering product to start their new venture, momentum is created, and those leaders in the right spot experience a spike in earnings. Intoxicating it is.
Out of the network marketers that I know, many of whom have been in the industry mainly part-time for a decade or more, they have been involved with 4-5 companies or more. It seems that when one gravy train dries up, they move on, like a herd of buffalo seeking new territory.
And while changes in life do happen, and some companies make decisions that conflict with one's integrity, too often network marketers move on thinking that the next company is the right one. But if honesty is to prevail, many have been saying that to themselves, and trumpeting that to their prospects and friends and family, since enrolling with company #1.
While no one can be faulted for needing to clarify their values and move on, or denied the freedom to make choices that they see as right and appropriate, when one continues to make ongoing company changes while recycling the same lines used during previous ventures, something begins to happen...that individual begins to lose credibility with those around them. Was the last company the 'real one' or this new company 'the next big thing'? Did the last company have the 'best comp plan in the industry' or does this latest organization? When all and more is being said over and over, the meaning of those words becomes saturated, old, tired.
But as long as the herd is telling it to themselves, and group consciousness continues to reinforce the group 'truth', then the herd can roam from territory to territory, decade after decade, chasing the illusive payout, and all the while coming to identify so tightly with the group that they lose themselves in the process.
After a while, they come to know not what they are striving for, nor do they continue to ask themselves. They just know that others are still carrying on, and that is enough for them - it is what they know, have come to love, and can't let go.
But after 10 years or more of pursuing an idea, in any arena of life, you have to ask yourself if the return has been worth the investment. The path of the NM is one of emotional intensity. And that is hard to let go of. When I left my company, I felt a large void. Where else can you connect with people on a part-time basis who are so like-minded, pursuing the same hopes and dreams, so supportive, full of energy? It was very rewarding on a psycho-emotional level.
While I have found that experience since with my career, the initial loss was devastating. It was like leaving a relationship - there was a grieving period, followed by acceptance, a letting go, followed by renewal. But it seems many are afraid or not willing to let go, even though the writing is on the wall, and may have been for some time:
• Husbands still telling their wives that this one is 'the one', all the while investing $200-$300 in product and materials every month, even though their budget should not allow for such things. ""Eventually, this will pay off honey. It is investing in the short term for a payout in the long term.""
'Keep believing in me' and 'I can't accept that this hasn't worked out the way I intended' is the essence of this perspective.
• Wives still justifying to their husbands that their business must go on because 'I have been home with the kids all day'.
The essence of this perspective is 'You owe me', all the while running around to business meetings, telling one's self that progress is being made, when in reality, very little true business success is taking place. In psychiatric circles this is called 'the illusion of work'.
• Individuals telling themselves that they will never leave the world of NM because of how it makes them feel, not allowing themselves to see that their initial plans have shifted into the realm of illusion, and that what they think they are doing is not really happening, and hasn't been for some time.
The essence of this perspective is 'My dreams are too important. I will never give up'. But at some point you must begin to get painfully honest about why you are doing what you are doing, and if the results of that doing is worth the effort to keep doing.
Many a family and relationship have been strained, even ruined, because of the pursuit of the warm market. The challenge with the warm market is, once you use up all the customary sales lines, which might be true to varying degrees, during your run with the first company, lines like...
• 'best comp plan in the industry'
• 'a product like nothing else'
• 'the right leadership'
• 'proven track record'
• 'a science driven product line'
• 'a literal cash cow'
• 'people are making $30,000 and up, per month'
• 'you don't have to sell, just share'
...you can't very well use those lines with the same people (family, friends, and associates) the second, third, and fourth time around. Eventually, you just sound silly. And if they did join you during the first venture, they will come to see for themselves that real business development requires sales, marketing, budgeting, planning, and strategic thinking. The 'just sharing' notion will work for the first few months or so, but after that, all of the above are required.
Free Entry or Market Saturation
I remember when our big product first launched, myself and a handful of other reps, whom I didn't know, had approached many of the same establishments within our region. Soon, many of these businesses had become over-exposed; they refused to engage us. This is one of the drawbacks of the NM model - where anyone can become a rep, and there is no limit to the number of reps within a territory. The up side is that there are no barriers to access - anyone who is motivated can take action and get ahead of their competition. All are welcome to try their hand at this illusive and challenging business called NM.
But even though you might be part of the larger organization, teams within the company are competing with each other. And while it might be said that you are family, and to a large degree this atmosphere can be created and felt at conventions, when it comes to prospecting a territory, if your co-reps are not in your upline or downline, they are competition.
Is this model sustainable? It seems that the more reps you add to a given territory, the less and less become the number of prospects. A saturation point is reached and eventually everyone has heard about this latest product, sometimes to the point where now they don't want to hear another thing about it. There is something to be said for limiting the number of reps who can then explore a given territory over time. This might create more gradual, sustainable growth.
But this approach might not lead to the huge spikes in income that occur with the current model...rapid cash, fast! There is that emotional high again...feels so good. Like watching your stock go up in value, but instead of watching by as a passive observer, with NM, you can directly influence the outcome. Compelling indeed.
Borrowing from the Future
For some, network marketing has earned them a literal fortune. And to those few, I say congratulations, sincerely. My hopes and dreams when I first started rested upon a plan that would eventually see me earning huge chunks of money each month. It didn't happen, not because it can't happen, but because my priorities shifted. My life had indicated to me that it was time to pause, step back, reflect, re-calibrate.
For the most part I had a very positive experience with NM. I met a lot of great people, some of whom I still connect with on occasion. And the magic that I felt during that first year was palpable. That energy has continued to sustain me in many ways since that time. I still check in to see how the company is doing today. I have many great memories that are mine to keep.
And, the tax benefits of having a home-based business are excellent. For this reason alone, it might be wise to look into some form of home-based business that doesn't cost you too much to operate each month. But make sure you aren't spending/investing more than you can afford to invest.
I made the foolish mistake of borrowing from the future - meaning, I expected that I would be earning a lot of money in the future, so I justified all my expenses as necessary costs in running a business. This turned out to be a costly mistake. Add to that, most companies encourage you to attend their training events. I went to Dallas, Orlando, and Las Vegas, all wonderful trips, but the reality was, I was borrowing from the future to finance the present. And it backfired.
While attending trainings is very important, and it helps you to understand, catch and live the vision of the company and its owners, if you don't have the money, don't dig yourself into a hole that you will be digging yourself out of a year from now. The tricky part is...you have this entire team playing the hype card.
And this energy gets in you, and fuels you, and the next thing you know you are at a convention buying 5 - $200 tickets for the next convention because you just know your team is going to grow, and you don't want them to miss out on the experience. Hogwash. Know yourself, and don't get caught up in this energy unless you have the cash to do so.
The Real Cash Cow
In December 2009, I was introduced to a woman who was prospecting a friend of mine for her NM business. Since I had no intentions of considering her business, I sat patiently while she did her sales presentation; we were in a coffee shop. At one point she turned to me and said,
""Are you considering the business?""
I very politely but directly stated, ""No, I'm not interested.""
To which she replied, ""Oh, you should be. This opportunity is a literal cash cow. There is so much money to be made.""
I felt nauseous. I had used all these lines before. It felt almost as if I was being conned, and I had to ask myself in a quieter moment, ""Did I really say that kind of stuff to people?""
The answer is ""Yes"".
Live and learn as they say. You go with what you know at the time, and when you know better, hopefully you do better. This woman's approach cemented for me why I was not interested in her business, but more than that, why I was not interested in her as a person. To be sure, she's entitled to learn and grow just like everyone else. I can't fault her, because I myself was there once. I recently heard from our mutual friend that she has since left that company and moved on to a new one. And from there, she has since moved on to her third company.
I have come to understand something; the real cash cow as it relates to NM, save the less than 1% who ever make it big, has to do with the company itself. The reality for over 90% of people who start a business with a NM company is that they really exist over time as glorified customers, acting as business owners. This is great for the company; either way, they are moving product and increasing their bottom line.
The more a company can entice people to dream big, get in on the opportunity, and make a lot of money, the more money the company makes through product sales when a new business owner makes their first order. And most companies require business owners to sign up for an auto-ship every month, so the company continues to make a good chunk of money from every business owner for as long as they operate their business.
For many people, this is justifiable because they purchase these types of products on a monthly basis anyway, so why not order them from your own business? Makes sense for sure. But for all the people that lose in NM, the company consistently wins. And that's okay. The owners chose to get into the business because they are smart and know that NM can generate large sums of money quickly. And some even have good values and love to help others, like the one I was involved with.
In Summary
• Know yourself.
Stop following the herd just because it feels good and it's nice to be accepted by a group of people with whom you identify. If your finances are suffering, or if you have been at it for a long time with no sustained results, face reality and move on. Find a new hobby, or join a social club. It might be cheaper.
Perhaps you are blocking the expression of your true potential because you won't let go of this 'idea' masquerading as a business. For some, it functions as a real business - figure out which one it is for you...today.
• Know yourself.
Just before you move on to your next company, ask yourself: What I am really doing here? Why I am making this decision? Is this truly going to bring me what I think it's going to bring me? And what is that exactly? Am I afraid to let go, to distance myself from all the hype and energy, and really figure out who I am? Again, the energy is enticing, even addicting. Figure out if you are addicted to this entity called NM and decide if that is okay with you. If it's not, figure out how to let go.
• Know yourself.
Stop recycling the same old lines. You are beginning to look silly. People have caught on, and you are bigger than this. You deserve more. Pull back, re-connect from a more authentic place, and stay real. The hype is tainting your credibility and possibly your mental health.
• Know yourself.
Ask hard questions. Don't accept the customary lingo and approach just because your leader is telling you it works. If it doesn't jive with the values and ethics you walked in with, it might be time to walk out. Don't sell your soul for a pay cheque.
• Know yourself.
Consider how approaching your family and friends might make things awkward in the future if business goes sour. Rethink the warm market approach, and consider selling to strangers. Then if things don't work out, you still have your family and friends intact.
• Know yourself.
Don't give up on your dreams, but get better at discerning if they are materializing or if you are just chasing an illusion that you propped up long ago and are afraid to let go of.
• Know yourself.
Have fun, don't take yourself too seriously, and don't let business come between friendships. This is The Way of the Fool.
The reality is, sometimes our dreams need time to breathe. If we never step back, pause, reflect, take a break, peel away for a while, but continue pursuing our plans relentlessly, we never gain the added value of knowing whether the dreams we are pursuing want to pursue us.
Maybe they have moved on.
Maybe we have been facing in the same direction for so long that we falsely conclude 'this' is what will make us happy.
Maybe we have become wired to the adrenaline rush, and more than anything else, that is what we are still pursuing but haven't yet caught on.
Do your dreams and yourself a favour; slow down. In your ongoing attempt to keep the dream alive, you might be missing out on some key indicators that are signaling you down a different path...a better path.
Stay Well My Friends,
Timothy Gauthier
2011, SMARTLife Wellness Co."
Feng Shui in the Garden
"Having had a garden design business for many years, one of the most important things we adhered to was installing good healthy plants. Plants in poor growth, or even worse dead plants or trees are detrimental for prosperity. Bad company image. So you can imagine that we had a healthy, and thriving business as a result. When the Feng Shui of ones garden is correct it creates auspicious good fortune and attracts happy Chi into your home and your life.
Feng Shui and Gratitude.
First and foremost, we need to take stock of the many blessings we have in our lives; our families, our relationships, our work, our health, our friends and children, along with any other attributes we can focus on such as our skills, our caring and compassion, our appreciation for nature in fresh flowers for example etc. etc. It's a good idea to make a list of these and refer to them often. As we think of them, make additions to them as we think of more. It builds an incredible picture of how lucky we already are.
Make daily affirmations.
Here are two simple examples. One works, whilst the other one leaves us lacking
For prosperity in the garden, try this ""I am blessed to be surrounded with a constant flow of abundance and prosperity in my life""
Rather than ""This garden will make me rich. I'll have loads of money from it""
The reason the former works and the latter does not is because the future is never here. It keeps prosperity out of reach and not attainable today. The former focuses on the now.
Prosperity in money, friendship, love, health, family, knowledge, happiness, peace and spiritual wealth are all intertwined, so give lots and receive even more. Display this kind of energy, practice these, carry them out in your daily activities and prosperity will be banging the door down.
Waterfalls
Waterfalls represent wealth. More auspicious when flowing towards the house. Not only does the user benefit more from the visual impact of the waterfall flowing in this direction, but it can signify loss, and lost opportunity if it flows away from the house.
A waterfall which is too fast moving, or energetic mirrors rushing, flowing Chi which also indicates fast paced spending habits, and money going out. Oftentimes prosperity comes with conserving spending habits. Waterfalls need to be balanced in many respects. Choose a design which adds a meandering, gently moving stream. Water gently cascading over natural rocks and stones achieves a much more desirable effect. As with all the elements involved, the key is to have them proportioned properly, balanced nicely thus avoiding any imbalances.
Most suitable locations include placing waterfalls off the porch or deck (Wealth) and near, beside or within view of the Kitchen (prosperity). Even better, have it within some wildflower patch, as the flowers will energise the prosperity of a business. Red flowers, and red structures, red flowering shrubs, red leaved trees examples...Japanese maples, Holly berries, red Azelas, red Ponisettias. Red correlates with wealth, fame and reputation.
Feng Shui...Entrances and Prosperity
First point here is to work with the conditions we have. There is no point in trying to move a door, re-route a drive way, or to make any drastic changes. People living in communities need to bear in mind whatever restrictions the home owner's association have in place. People can make very simple, inexpensive and effective changes.
Here are a few suggestions which people can adopt without too much effort, and hopefully with little interference from the association. Place an ornamental dragon (not necessarily a red one) for the best auspicious Chi at the entrance. These are sure to bring good luck, joy, wealth, abundance, good energy and prosperity.
Close to the entrance consider the colour red. Red for wealth. One can plant red Flowering Shrubs such as;
• Hibiscus. A favourite and relentless flowerer. Easy care. Let it grow naturally.
• Red flower carpet roses (Rosa flower carpet a wonderful plant. I give it marks 10 from 10. Pest and disease resistant variety, low in height and very tolerant of many conditions even neglect, absolute masses of crimson red flowers, and incredible abundance with lengthy flowering periods),
• Red Azelas, Red flowering annuals
• Ruscus aculeatus (Butcher's Broom) for a great display of red berries in fall
• Punica granatum (Pomegranate) Valued for its brilliant flowers
• Ixora sp. Var. Lauritzen, a fantastic red flowering shrub
• Euphorbia pulcherrima (Poinstettia). Much significance of joy and wealth.
• Ixora ""Petite"" (Dwarf hybrid Ixora)
Perennials
• Canna X generalis (Red garden Canna)
• Etlingera elatior (Torch Ginger)
• Heliconia. Many suitable Heliconias incl. H. rostrata (Lobster Claw), H. Stricta, H. •Caribaea (Caribbean Heloconia)
Climbers
• Red Bougainvillea, a wonderful plant which can grow easily in a splendid, graceful arch above garage doors, creating a dramatic, Mediterranean feel whilst bringing great auspicious Chi and wealth to the dwellers within the home.
• Passiflora coccinea (Red Passion Flower) Another terrific opportunity to grow a beautiful red flowering climber. This one has not only good Feng Shui for prosperity but has important religious connotations also. Either way, it's a great plant.
Trees
• Delonix regia (Royal red Poinciana) If space permits, this is a must have. What a lovely tree, even when not flowering.
Above are a few short examples introducing a fabulous opportunity to plant something red, and welcome prosperity into one's life.
Try a red structure. A chair or bench perhaps. Even better, a red bench with arbour above to plant your favourite flowers. Consider a red framed mirror. The mirror will accentuate the area, and make it look more open and spacious, bright and inviting. Try draping a piece of red silk, artfully displayed. Get three old Chinese coins, tie them with red silk or red thread and place them beneath a stone near the entryway. These additions are really simple, but will bring great prosperity, auspicious Chi and abundance.
Water
I enjoy the challenge even more when space is restricted. These are among my favourite situations to make great change with astounding impact. Small, tight and confined spaces result in a much more intimate setting. In small spaces we are closer to everything. Closer to all the elements. Sound, fragrance, the visual aspect and textures are all magnified. We feel very secure, protected, calm and safe. I love designing entryways, courtyard spaces and urban style gardens. I let my imagination do the work, and always seem to come up with a more than satisfying result. Obviously it's perfectly functional, but people tend to focus on the aesthetic outcome, and don't even pay attention to the fact that ""it works"" When space is restricted, we can employ the vertical element. Use the walls to plant flowers on a trellis or climbing frame. Use the walls to secure wonderfully abundant hanging baskets. Think of a hanging basket as a miniature suspended garden full of flowering plants. It has all the components of a garden, except on a smaller scale. The flowers and healthy growing plants will energise even the smallest of spaces.
Put in a small water feature. Any kind of a water feature brings good fortune and wealth, especially in the North. I can design a water feature from almost any material. Get the ingredients.... Add a little imagination and......Presto! One time whilst travelling in Italy, my wife and I bought a mural of a town square which was made from ceramic tile, and came in about fifty pieces wrapped up in a box. We carted this heavy package around with us for the rest of our trip. (She thought I was crazy, as usual) When we got back here to Naples, I arranged the tile within a frame, fed a narrow pipe behind it, mounted it on a wall on the lanai, and attached it to a small pump which spilled water into an oversize terracotta pot filed with natural beach-like stones. It's beautiful. The ceramic art captures the scene perfectly, reminds us of the great times we had in Italy, and provides such a peaceful atmosphere on our space restricted lanai.
I highly recommend adding some kind of water feature, however small, close to the entry way. Be careful when choosing a water feature which will bring prosperity. Balance is key. Rather than have a stream of water rush directly into a body of water, it's better to have the water gently cascade over something like stones. It creates a much more soothing sound, a more subtle sound using the same volume and flow of water. It just seems more musical when the water's path is interrupted in some small way. With the added benefit of not feeling as if you need to go to the bathroom, every time you pass it. This is an important step in creating a great water feature for a space restricted area, such as an entry way. Get some help if you get stuck.
Water enhances the energies of the North Stock the pond with Koi, or a small ceramic turtle ornament. These make the garden extremely auspicious. Fish create yang energy. Turtles activate the symbolic celestial creature of the North. Keep water moving constantly. It allows oxygen in to do its job. Stagnant water allows dead Chi to accumulate. Fish energise the water and prevent stagnation. If other wildlife comes, such as frogs, encourage them. Keep the water clean...always, as it prevents hampered Chi being created. Good filtration does this for you. If anything dies, replace it immediately.
The sound of the trickling water attracts Chi, especially when sunlight plays on it. Don't have water in the shade in the North. Don't overpower it with plants. Plants are intended to make it natural, and to enhance it. Plants should not detract from the main theme here, water.
A South Entrance.
Associated with the fire element. Better if the garden here opens from a living room rather than a kitchen. Kitchen (fire) which would cause an imbalance. A well light garden, using lights at different levels, especially in winter in the South, will bring good luck by stimulating your fire energy, and fame enrichment. Put in an ornament of a Crane, or even better a Phoenix, the celestial bird, symbolic of longevity.
Plants for PROSPERITY
Magnolia. Symbol of purity, hidden jewels or accumulating great wealth.
Orange trees. Symbol of abundance and wealth. Good fortune, wealth, happiness and general prosperity. A pair are regarded as extremely good Feng Shui. Chinese use lime and lemon trees indoors as their flowering times coincide with the lunar New Year. It is no accident that in the Victorian era, orangeries were very common way to over winter frost sensitive, fragile trees. Summers would see avenues and walkways lined with orange trees in great enormous terracotta pots.
Another travel opportunity brought us to discover much of Spain. We stopped in Seville for a few days on our way to Granada. We stayed beside the cathedral, in the most romantic orange tree planted square. All the balconies had the most amazing hanging baskets and window boxes drape their flowers over the railings. The shade the orange trees provided in the square at the cafes created a nice peaceful, park-like urban setting. We happened to be there when the oranges were ripe. Great big marmalade oranges hung from the trees, in a rich display of orange contrasting sharply with the dark green, healthy and vibrant foliage. Perhaps the town planners didn't know much about Feng Shui, I doubt they did, but the orange trees made the whole place an incredible heaven of peace with a great energy. It's true that oranges represent prosperity as this square was bustling with cafes, boutique hotels, guest houses, restaurants, craft shops and a prosperous thriving spot away from the main thoroughfares. I bet the orange trees have hidden, mystical qualities which attract people in to sit and relax.
Cherry Blossoms.
Plum tree. Regarded as pure and superior
Peonia denotes prosperity and romance.
Magnolia immortal and prosperous.
Lotus. Inspires peace and contentment, symbolizing the opening of opportunities.
Money Plant.
Plants with round, full, dark leaves are known to be auspicious and the best symbolizing money and gold. Eg
The Jade plant......money and prosperity
The silver crown
Money Plant.
The Narcissus plant or other bulbs, symbolises great fortune. Normally given as auspicious gifts in the New Year.
One should try to use their garden or out door space as much as possible and use it as a Sanctuary, you'd be amazed at how better you will feel, sitting in the sunlight, watching the wildlife, enjoying the serenity of one's surroundings."
Feng Shui and Gratitude.
First and foremost, we need to take stock of the many blessings we have in our lives; our families, our relationships, our work, our health, our friends and children, along with any other attributes we can focus on such as our skills, our caring and compassion, our appreciation for nature in fresh flowers for example etc. etc. It's a good idea to make a list of these and refer to them often. As we think of them, make additions to them as we think of more. It builds an incredible picture of how lucky we already are.
Make daily affirmations.
Here are two simple examples. One works, whilst the other one leaves us lacking
For prosperity in the garden, try this ""I am blessed to be surrounded with a constant flow of abundance and prosperity in my life""
Rather than ""This garden will make me rich. I'll have loads of money from it""
The reason the former works and the latter does not is because the future is never here. It keeps prosperity out of reach and not attainable today. The former focuses on the now.
Prosperity in money, friendship, love, health, family, knowledge, happiness, peace and spiritual wealth are all intertwined, so give lots and receive even more. Display this kind of energy, practice these, carry them out in your daily activities and prosperity will be banging the door down.
Waterfalls
Waterfalls represent wealth. More auspicious when flowing towards the house. Not only does the user benefit more from the visual impact of the waterfall flowing in this direction, but it can signify loss, and lost opportunity if it flows away from the house.
A waterfall which is too fast moving, or energetic mirrors rushing, flowing Chi which also indicates fast paced spending habits, and money going out. Oftentimes prosperity comes with conserving spending habits. Waterfalls need to be balanced in many respects. Choose a design which adds a meandering, gently moving stream. Water gently cascading over natural rocks and stones achieves a much more desirable effect. As with all the elements involved, the key is to have them proportioned properly, balanced nicely thus avoiding any imbalances.
Most suitable locations include placing waterfalls off the porch or deck (Wealth) and near, beside or within view of the Kitchen (prosperity). Even better, have it within some wildflower patch, as the flowers will energise the prosperity of a business. Red flowers, and red structures, red flowering shrubs, red leaved trees examples...Japanese maples, Holly berries, red Azelas, red Ponisettias. Red correlates with wealth, fame and reputation.
Feng Shui...Entrances and Prosperity
First point here is to work with the conditions we have. There is no point in trying to move a door, re-route a drive way, or to make any drastic changes. People living in communities need to bear in mind whatever restrictions the home owner's association have in place. People can make very simple, inexpensive and effective changes.
Here are a few suggestions which people can adopt without too much effort, and hopefully with little interference from the association. Place an ornamental dragon (not necessarily a red one) for the best auspicious Chi at the entrance. These are sure to bring good luck, joy, wealth, abundance, good energy and prosperity.
Close to the entrance consider the colour red. Red for wealth. One can plant red Flowering Shrubs such as;
• Hibiscus. A favourite and relentless flowerer. Easy care. Let it grow naturally.
• Red flower carpet roses (Rosa flower carpet a wonderful plant. I give it marks 10 from 10. Pest and disease resistant variety, low in height and very tolerant of many conditions even neglect, absolute masses of crimson red flowers, and incredible abundance with lengthy flowering periods),
• Red Azelas, Red flowering annuals
• Ruscus aculeatus (Butcher's Broom) for a great display of red berries in fall
• Punica granatum (Pomegranate) Valued for its brilliant flowers
• Ixora sp. Var. Lauritzen, a fantastic red flowering shrub
• Euphorbia pulcherrima (Poinstettia). Much significance of joy and wealth.
• Ixora ""Petite"" (Dwarf hybrid Ixora)
Perennials
• Canna X generalis (Red garden Canna)
• Etlingera elatior (Torch Ginger)
• Heliconia. Many suitable Heliconias incl. H. rostrata (Lobster Claw), H. Stricta, H. •Caribaea (Caribbean Heloconia)
Climbers
• Red Bougainvillea, a wonderful plant which can grow easily in a splendid, graceful arch above garage doors, creating a dramatic, Mediterranean feel whilst bringing great auspicious Chi and wealth to the dwellers within the home.
• Passiflora coccinea (Red Passion Flower) Another terrific opportunity to grow a beautiful red flowering climber. This one has not only good Feng Shui for prosperity but has important religious connotations also. Either way, it's a great plant.
Trees
• Delonix regia (Royal red Poinciana) If space permits, this is a must have. What a lovely tree, even when not flowering.
Above are a few short examples introducing a fabulous opportunity to plant something red, and welcome prosperity into one's life.
Try a red structure. A chair or bench perhaps. Even better, a red bench with arbour above to plant your favourite flowers. Consider a red framed mirror. The mirror will accentuate the area, and make it look more open and spacious, bright and inviting. Try draping a piece of red silk, artfully displayed. Get three old Chinese coins, tie them with red silk or red thread and place them beneath a stone near the entryway. These additions are really simple, but will bring great prosperity, auspicious Chi and abundance.
Water
I enjoy the challenge even more when space is restricted. These are among my favourite situations to make great change with astounding impact. Small, tight and confined spaces result in a much more intimate setting. In small spaces we are closer to everything. Closer to all the elements. Sound, fragrance, the visual aspect and textures are all magnified. We feel very secure, protected, calm and safe. I love designing entryways, courtyard spaces and urban style gardens. I let my imagination do the work, and always seem to come up with a more than satisfying result. Obviously it's perfectly functional, but people tend to focus on the aesthetic outcome, and don't even pay attention to the fact that ""it works"" When space is restricted, we can employ the vertical element. Use the walls to plant flowers on a trellis or climbing frame. Use the walls to secure wonderfully abundant hanging baskets. Think of a hanging basket as a miniature suspended garden full of flowering plants. It has all the components of a garden, except on a smaller scale. The flowers and healthy growing plants will energise even the smallest of spaces.
Put in a small water feature. Any kind of a water feature brings good fortune and wealth, especially in the North. I can design a water feature from almost any material. Get the ingredients.... Add a little imagination and......Presto! One time whilst travelling in Italy, my wife and I bought a mural of a town square which was made from ceramic tile, and came in about fifty pieces wrapped up in a box. We carted this heavy package around with us for the rest of our trip. (She thought I was crazy, as usual) When we got back here to Naples, I arranged the tile within a frame, fed a narrow pipe behind it, mounted it on a wall on the lanai, and attached it to a small pump which spilled water into an oversize terracotta pot filed with natural beach-like stones. It's beautiful. The ceramic art captures the scene perfectly, reminds us of the great times we had in Italy, and provides such a peaceful atmosphere on our space restricted lanai.
I highly recommend adding some kind of water feature, however small, close to the entry way. Be careful when choosing a water feature which will bring prosperity. Balance is key. Rather than have a stream of water rush directly into a body of water, it's better to have the water gently cascade over something like stones. It creates a much more soothing sound, a more subtle sound using the same volume and flow of water. It just seems more musical when the water's path is interrupted in some small way. With the added benefit of not feeling as if you need to go to the bathroom, every time you pass it. This is an important step in creating a great water feature for a space restricted area, such as an entry way. Get some help if you get stuck.
Water enhances the energies of the North Stock the pond with Koi, or a small ceramic turtle ornament. These make the garden extremely auspicious. Fish create yang energy. Turtles activate the symbolic celestial creature of the North. Keep water moving constantly. It allows oxygen in to do its job. Stagnant water allows dead Chi to accumulate. Fish energise the water and prevent stagnation. If other wildlife comes, such as frogs, encourage them. Keep the water clean...always, as it prevents hampered Chi being created. Good filtration does this for you. If anything dies, replace it immediately.
The sound of the trickling water attracts Chi, especially when sunlight plays on it. Don't have water in the shade in the North. Don't overpower it with plants. Plants are intended to make it natural, and to enhance it. Plants should not detract from the main theme here, water.
A South Entrance.
Associated with the fire element. Better if the garden here opens from a living room rather than a kitchen. Kitchen (fire) which would cause an imbalance. A well light garden, using lights at different levels, especially in winter in the South, will bring good luck by stimulating your fire energy, and fame enrichment. Put in an ornament of a Crane, or even better a Phoenix, the celestial bird, symbolic of longevity.
Plants for PROSPERITY
Magnolia. Symbol of purity, hidden jewels or accumulating great wealth.
Orange trees. Symbol of abundance and wealth. Good fortune, wealth, happiness and general prosperity. A pair are regarded as extremely good Feng Shui. Chinese use lime and lemon trees indoors as their flowering times coincide with the lunar New Year. It is no accident that in the Victorian era, orangeries were very common way to over winter frost sensitive, fragile trees. Summers would see avenues and walkways lined with orange trees in great enormous terracotta pots.
Another travel opportunity brought us to discover much of Spain. We stopped in Seville for a few days on our way to Granada. We stayed beside the cathedral, in the most romantic orange tree planted square. All the balconies had the most amazing hanging baskets and window boxes drape their flowers over the railings. The shade the orange trees provided in the square at the cafes created a nice peaceful, park-like urban setting. We happened to be there when the oranges were ripe. Great big marmalade oranges hung from the trees, in a rich display of orange contrasting sharply with the dark green, healthy and vibrant foliage. Perhaps the town planners didn't know much about Feng Shui, I doubt they did, but the orange trees made the whole place an incredible heaven of peace with a great energy. It's true that oranges represent prosperity as this square was bustling with cafes, boutique hotels, guest houses, restaurants, craft shops and a prosperous thriving spot away from the main thoroughfares. I bet the orange trees have hidden, mystical qualities which attract people in to sit and relax.
Cherry Blossoms.
Plum tree. Regarded as pure and superior
Peonia denotes prosperity and romance.
Magnolia immortal and prosperous.
Lotus. Inspires peace and contentment, symbolizing the opening of opportunities.
Money Plant.
Plants with round, full, dark leaves are known to be auspicious and the best symbolizing money and gold. Eg
The Jade plant......money and prosperity
The silver crown
Money Plant.
The Narcissus plant or other bulbs, symbolises great fortune. Normally given as auspicious gifts in the New Year.
One should try to use their garden or out door space as much as possible and use it as a Sanctuary, you'd be amazed at how better you will feel, sitting in the sunlight, watching the wildlife, enjoying the serenity of one's surroundings."
Subscribe to:
Comments (Atom)