Why MLM is not for me.

Yes...all too familiar?

I presume some part of your life, you have been approach by some friends or family members with "an attractive business prospal" with the promise of making big in life. Getting that big fancy house, driving that sports car, going on overseas trips twice every month.

Chances are they came on behalf of MLM companies.

So what is MLM?

In MLM you are in business for yourself. You purchase products directly from a wholesaler at wholesale prices. Product moves from Point A to Point B. You can, if you wish simply use these products for personal consumption or you can resell them at a retail price to make a profit. The most common misconception, however, is that you have to sell retail to be successful. Not true depending on the company you've chosen to work with.

The sale of a product comes when distributors share that product with family, friends, coworkers and/or neighbors. Now, visual a single thread from a spider's web. As the spider continues to expand his web it continues to grow and reach in all directions. As you meet people who are interested in doing what you're doing, you recruit them. You become responsible for their training, helping them to build a business of their own just like yours.

Sounds good on paper right? WRONG!

Selling a product-based deal is fine, but the idea of marketing a business opportunity to prospects when we know the numbers is not ethical for us. In its purest form, MLM is a viable method of marketing if its focus is on products and not primarily the business. Selling the dream of financial independence with MLM is a mirage for 90+% of distributors. The MLM industry statistics are that on average only 10% of distributors get a commission check each month. Of that 10%, 80% do not make enough to sustain themselves as a full-time income.

Industry-wide company statistics show that 90% of distributors drop out of each company within a 1-2 year period. The distributor churn rate is terrible.Any way you cut it, MLM statistically does not work for 90+% of those involved. And those who make the big bucks are in a more elite group--usually 1/10 of 1% of all distributors.

Secondly,

in MLMs, you do not own your own business, you do not own the product, and you are not in control of your destiny. The company holds all the strings--product supply, computer tracking, commissions, collections, customer service, order fulfillment, publicity, compliance, public relations, comp plan, everything.

All you own is a position in a long line of distributors. You do not control the product you sell, the company plan, what the company does or does not do, the money that is paid . . . distributors own nothing other than the opportunity to sign more distributors and manage the existing downline.

You are at the MERCY of the company, upline, downline, media, and government.

Thirdly,

What and where your the sense of success? stepping on peoples head to succeed? Toying with their feelings & friendships? I despise MLM on a moral level because of the reasons most people already know and would rather die than associate myself with an MLM organization, most of whom are staffed with losers in conventional life. Either no paper qualifications, no discipline or strength to stay in conventional careers etc. All looking for a short term quick buck.

Having said that, MLM works for the few on top of the pyramid because of the concept of leveraging. If you are the average salaried worker, there is no leverage, because you only add value through your own efforts, and if you are only one man, there is only so much you can do.If you are a business owner, you leverage off the efforts of your workers. If you are an investor, you leverage off your financial capital.

Leveraging allows you to grow exponentially instead of in multiples. MLM allows ambitious individuals to leverage OFF the money of friends, family and co-workers without the time and effort needed to set up a conventional business, and without the need to start with any significant financial capital, allowing otherwise useless individuals to make quite a lot of money without really doing anything producitve for society.

Your key focus will be how many downlines.. how to brainwash pple in your seminar talks to newbies... how to network to get more nodes under u.. will you be keen to IMPROVE products, customer services, R&D? absolutely not.


Sorry i'm biased, i have more negative things to say about MLM than positive... That is why I do not explore MLM as a biz model.

You have been warned.

why Sg Sparks?

Why did I chose the name "SgSparks" for this website?

Sg stands for Singapore. Sparks comes from the creative spark of ideas.

A number of times, both during day and night, a number of ideas occur to all of us. Quite often, later on, we cannot recall those ideas or remember when they will be useful or put them into action. Its important to create a system for translating your ideas into accomplishments.

For me, I would quickly key them into my handphone for future references. However, most of the times these ideas "collect dust and I wasn’t able to turn them into anything useful.

Early this year, I found another way of sharing my ideas through blogging. As I have shared in my first post, I hope some of my ideas can inspire other people to make use of them instead of just collecting dust in my handphone. Also in return, I hope readers share ideas with me. =)

I believe the world is abundant of opportunities and its up to each individual to grasp the moment of opportunity.

Let fly your creative sparks! ;)

Gaming Industry in Singapore

I admit... I am a game fanatic myself. =P

Having bought a PS3 when its game library is still so limited. Yes... have you spark this opportunity? There are many powerful game machines to date today, say Xbox360, Wii, PSP, PC and such... But just not enough games to serve the world community! And yes, Powerful games to utilize the HD, Blue-ray technologies of TV and the huge memory of flash disc drives.

I think we need more game wars in oppose to console wars.

Analysts have estimated that the global games industry will reach US$55.6 billion by 2008. Of this, the Asia-Pacific online games market alone - valued at US$630 million in 2003 - is projected to hit a staggering US$7.5 billion in 2008.

Singapore certainly hopes to capture its share of the global games pie with its business-friendly environment, global telecommunication connectivity, strong intellectual property laws.

Talent is key to this industry; EDB has already forged training partnerships with some of the strongest names in the games business. Over the last two years, more than 50 individuals have benefited from training stints in companies like Koei, Sega and Capcom in areas such as games development, graphic design and animation for games.

However, I believe that startups in game development can stand head to head with this mega companies. They could start by taking in small outsource projects and develop in-house segments for these companies and in the same time develop their own game titles. A simple, highly addictive game can be made without huge resources but it must be playable of course.

Its time for Singapore to have a mega gaming company, that it calls its own. We have Creative zen players vs Apple Ipods. How about one that can complete with EA, Rockstar games or KOEI?

The world is ready for the next stage of future gaming, are you ready?

Beware of Pitfalls for Startups

The road to entrepreneurship doesn’t be so rocky if you understand fully the concepts and mindsets. Knowing some common mistakes will help you avoid those pitfalls. Take time to understand it.

1. Entrepreneurs must know everything from head to tail of your business. At the start, you will be involved in all the daily operations work. But do not forget to grow your business rather than just work on it. Work on the business, not just in the business.

2. If you still hold your current job, do pay attention to “how to run a business” in your company and try to apply it into your business. Be jacks of all trade and learn the basic from it. It will benefit your business as you already got some knowledge of doing a business.

3. It’s the people who make a business successful, not the product, not the service and not the new invention. Focus on building a great company as much as you do for a great product.

4. Thinking big is essential to grow your business. It is not just generating wages for yourself, but to aim to build a profitable business.

5. Don’t try to compete for prices with your competitors. Instead focus on quality services and after-sales services to your customers. Then they will return to use your products/services.

6. By trying to do your work alone, you may not have time to grow and expand your business. Try to leverage some works to others and pay them well. There are many part-time students with their skills and expertise to exploit from. They are willing to work for some pocket money.

7. Business success involves three main areas: sales and marketing, finance and administration, and operations. You have to keep all three working and growing, not just the area you’re good at.

8. Knowing your numbers is vital. You can’t manage what you don’t measure. Measure everything from day one, from how many new prospects you have to how many sales you make.

9. The key to success is to do the work once and establish a long-term, income-generating relationship. Learn to structure your clients, your business and your income that way, and you’ll build a great business.

Above are some pitfalls that every entrepreneurs must avoid in order to have a smooth sailing of business endeavors.

The Entrepreneurial Spirit

People who lived in the Industrial Age are usually not very open to change. People who have lived most of their lives in the Industrial Age still believe that to be successful you have to follow the same formula; get a college education and then you can get a good, secure job for life. They believe that it doesn’t matter whether or not you like your job, it’s a regular paycheck, and that’s your security.

Another reason people are reluctant to make a change is because they fear the disapproval of others. People who make career changes, are sometimes looked at by their colleagues, friends, and family with raised eyebrows. Professionals especially are looked at with disbelief. The people around them wonder what possessed them to want to make a change. Why want to leave a lucrative pay and start from scratch?

This type of reasoning is very detrimental to success, because it assumes the individual doesn’t grow. You don’t have to decide what you are going to do in the eighth grade and stick with it the rest of your life. You can switch jobs. You can and should make career changes.

Having the entrepreneurial spirit means wanting to run a business the way you run your life. And wanting to run your life the way you run your business. To run a successful business you want to increase the number of clients you have. To have a successful personal life you want to increase the number of friends you have. You need to have a business plan to guide your business success. You need to have goals and objectives to guide and measure your personal success.Business and your personal life are run in parallel. For every example of the entrepreneurial spirit in business there is a parallel in life.

Having the entrepreneurial spirit means your personal and professional life cannot be separated. Being an entrepreneur is a way of life. All you need to do is get yourself into an entrepreneurial mind-set, and you’ll have the power to make things happen.

Have you got what it takes to be an entrepreneur? ;)

On Your Own

With globalization, more companies will tend to move to other countries where there are more opportunities and the cost of doing business is low. With China and India starts to welcome foreign companies to invest there, jobs are disappearing faster than ever. Many of those jobs are gone forever.

So what if you get retrenches because the industry you are in becomes redundant? Are you tired of all these job changing process? For those who want to start a business, there is never a better time than now. This is because the government is encouraging entrepreneurship and public perception of businessmen have become more positive.

However, starting out a business is not just register a company name with ARCA. There are many characteristics and essential attributes one need to possess. So what does it take to be an entrepreneur? Are you prepare to know more?

1) Are you prepare to work very hard?
As an entrepreneur, you have to prepare to sacrifice family and social life. Most of your time will be spent on your business. It demands a lot of time and energy to maintain a business. However with careful time management, you also can cope both family and social life with your business well. There are already many real life cases happen in Singapore. Therefore, it is not mission impossible.

2) Do you have the stamina and commitment?
Doing business is a long-term commitment. It is not a 100m dash, I can say it is a marathon. Be prepare to face lots of challenges and disappointments. There are a lot of ups and downs, and you can expect “failures” along the way. T o overcome all these, you must be passionate about the business and the drive to push your unique ideas through no matter what happens. Entrepreneurs loves what he does nd will work tirelessly, even if it means sacrificing his social life.

3) Do you have adequate resources?
Being a new business, many banks will not lend money out, unless your idea is very very unique. Thus, do you have family or friends to fall back on when the need arises? Sometimes short of cashflow is the urge to make you shutdown your business. Try to be strong and think of many ways to get it around.

4 ) Do you have a solution to every problem?
You cannot pass your problem to anyone when problem arises. You are expected to solve them. Employees usually regard problems as something to be avoided, but entrepreneurs will try to find opportunities in every crisis.

5) Are you flexible enough?
Entrepreneurs must keep an open mind and responds to changes and challenges. If they stick in the mud, then chances are their business will fail. The more flexible you are, the more adaptable your business will be.

6 ) Do you have a “no failure, only feedback” mentality?
Failure is actually feedback that can be used to improve your performance. It is not the opposite of success. Inaction, apathy and tolerance of mediocrity are.

So after reading those mindsets and characteristics? Do you have what it takes to be an entrepreneur? Do not be afraid after reading all these and found out you got none of the above. It may be hard to tune from working life and entrepreneur life. No worry. There are many books and courses around to help you. Look around. You will be amazed that there are actually a lot of helps in place. Embark on the learning journey before you start.

Singapore's government unveils 2008 budget

An income tax rebate of 20% for Singaporeans, Growth Dividends of between $400 and 100 for all Singapores and the end to Estate Duty, were among the personal perks for Singaporeans in the 2008 Budget outlined by the Finance Minister on Friday 15 February.

Mr Tharman Shanmugaratnam also revealed in the 2008 Singapore Budget, special bonuses for those who sign-up for CPF Life and perks for topping up the CPF Minimum Sum. While sharing with Singaporeans the fruits of a budget surplus of S$6.4b, the Finance Minister also drew up plans to take Singapore Inc on a renewed path.

Those in research get a shot in the arm with tax deductions for R&D upped to 150% and incentives for SMEs who invest in innovation and companies going into high-tech start-ups.

To promote new financial activities, a 5% concessionary tax rate for income derived from qualifying Shariah-compliant activities has been introduced along with a tax exemption on income on Islamic bonds.

Also unveiled, tax incentive schemes aimed at family-owned investment holding companies and licensed insurance and reinsurance brokers.

Many had hoped for a "generous" or "Bonus" budget. But to the Finance Minister, his policy was more of "an investment in a total upgrade of Singapore's business,transport and IT infrastructure".

While it would enable new growth, he said the measures would also serve as an "enabler" and will help Singapore build up a resilient community with a hand for lower-income workers and enough savings for healthcare and old age in the future.

Hong Baos for everyone ya? =)

Article from: http://www.channelnewsasia.com/sgbudget08/

Renting is the rage!

I saw on the news recently that families are renting cars during the festive seasons mainly because they want the convenience and better savings in view of taking cabs. Yes, you guess it, car rental companies laughing their way through the Chinese New Year.

Another phenomenon i found out is HDB flat rental. With the influx people into Singapore to boost the population, rental has hiked to unbelievable levels. Therefore, I think that it certainly makes good biz sense if u has a car or a room that you seldom make use of and rent it out. For those who have real deep pockets, start gathering a fleet of cars or better yet, several rooms to rent them out! Now thats what I call passive biz, earning money without even lifting a finger! Hehe..

Heres a helpful article on "What do I need to look for in renting property?" for those who are interested in renting out property: http://www.sg-house.com/blog/category/articles/

However, this idea works for people with deep capital. Hence I think this can only led to the rich getting richer and the poor poorer, enough said.

Recommended link: yankodesign.com

Yanko Design is a weblog dedicated to introducing the best modern international design, covering from industrial design, concepts, technology, interior design, architecture, exhibition and fashion. It’s about the cutting edge and the classic, the new and the rediscovered. It’s all about the best.

Thought this website is not a bz idea website, it offers plenty of innvoative & creative design ideas and concepts which surely makes biz sense. Very high quality pictures as well.

Give it a browse! http://www.yankodesign.com/ ;)

Bottled Water Experiment

Bottled Water Experiment

Purpose of Experiment: To prove my "make money with no money" business ideas can work.

Hypothesis: It is possible to take less than $10 in startup capital and make money.

Experiment: Buy a 24-pack of bottled water and sell it on the side of the road. Possibly utilize the labor of pan-handlers.

Step 1:I went to my local grocery store the previous night of the experiment and purchased a 24-pack of Dasani water for $5.99.

I put the water in the fridge overnight to let it chill.

Step 2:Quick Research.On the way to a party, I stopped to ask a bum what would happen if I sold water by the highway alongside other bums, and it didn't seem like a pretty picture. He told me, "You are a rich college student, and the guy at the corner is trying to get a meal, the hungry guy won't be too happy with you."To get around this, I wanted to partner with one of the regular bums who knows the in's and out's of panhandling. I made an agreement to meet at 3:00pm with this guy, William Austin to sell bottled water with me. I told him whether we sold all the water or not, I would give him $10 for his help.

The picture didn't come out so well, but in person he was all smiles and very jovial.I also didn't want to get arrested or fined. A few nights ago I stopped to ask two very courteous police officers what they would do if they saw me selling water without a permit. One replied, "I can't speak for every officer, but personally I wouldn't bother you unless you start causing problems."So I now had a partner and no real threat of legal action. The experiment was on for 3:00pm on Sunday Afternoon!

Step 3:An hour before the experiment I bought two bags of ice for $1.29 each. I packed the ice and water into a cooler.

I could only fit 15 bottles in my cooler, so I improvised and put the remaining 8 bottles directly into the ice bags with ice. I then double wrapped them with clean garbage bags for easy carrying.

Step 4:Withdrew $20 in case I needed change and to pay my partner.

Step 5:I made this nifty "Water $1" t-shirt by taking on old shirt, turning it inside out (it had a logo on the front) and using a permanent marker to write on it.

I had a feeling this little gimmick would work very well.

Step 6:Went out to go SELL SOME WATER. I went to look for William Austin at 3:00pm by the local Blockbuster like we agreed. When he didn't show up I asked another bum to show me where he lived. I found him under a bridge, red-eyed and looking extremely tired. He hardly remembered who I was and said he had to cancel on me.

Step 7:A bit disappointed, I went alone to the highly trafficked intersection of I-35 and Riverside Drive. There I met a bum named Barry:

I've seen Barry before. He is one of the bums that holds funny signs like, "I gave up caviar for Lent" and "I need new wheels for my limo"I told Barry about my water experiment, and promised to give him $10 for an hour of his time/expertise, regardless of how many bottles he sold. He was more than happy to help. We shook on the deal and became instant business partners!

Step 8:START SELLING. Barry knew a little about water selling. He told me to hold three bottles at once and start walking down the idle lanes of traffic yelling "Water Water!" Barry put the "Water $1" shirt on and started selling water like a champ! I stood on a different corner in my plain clothes and started selling. My first sale came within 6 seconds of starting (and it was a $2.00 sale!)

In less than 30 mintues we sold all 24 bottles!

Step 9:Tabulate results:

24-Pack Water: $5.99

Ice : $2.58

Barry's cut : $10.00

Total Expenses: $18.57

Total Income : $24.00

Total Profit :$5.43

BOTTLES SOLD:

Me: 14 Bottles

Barry: 10 Bottles

So to make a better profit, one would need to: Preferably perform the experiment by themselves, buy cheaper water, buy only one bag of ice instead of two, buy more than 24 bottles.

CONCLUSION: Selling bottled water can be much more lucrative than sitting on your couch on a lazy afternoon!

Okie, I admitt. I didnt do this. This experiment is done by a guy called nev, taken from his blog:http://www.nevblog.com/2005/04/bottled-water-experiment.html

Just find this simply hilarious, do not know if I able to try this out in sunny Singapore, especially without a permit. But I already saw some people selling curry puffs and otaks on the streets., so I don't see why clean bottled water cant do ya?

Who knows, I'm might create a singapore version of this experiment. Un Americans enterprising?

Recommended link: springwise.com

This website inspire me the idea for creating this blog. I personally recommend this site to get your daily dose of new biz ideas.

Springwise works by scaning the globe for the most promising business ventures, ideas and concepts ready for regional or international adaptation, expansion, partnering, investments or cooperation. Ferociously tracking more than 400 global offline and online business resources, as well as taking to the streets of world cities, digital cameras at hand.

I hope http://sgsparks.blogspot.com/ can immulate this same feat in the very near future.

Give it a browse! http://springwise.com/ ;)

Trend watching (2008)

Trend watching 2008, what to look out for:

Starting of year of the rat wasn’t all that rosy this year. The gloom of a US recession seems ever so real. Price hikes ever increasing at an alarming rate here in sg. (Talk about taking a cab during the peak rush hour, now got my point?)

However I believe, given the good investments that our government brought in, there’s is always 'gold' to be found, fortunes to be made. Let’s start looking...
















1) Building & construction industry: Definably a blooming industry with the building of 2 IR resorts, a world-class stadium, upgrading and expansion of new towns like Punggol and so many more. Getting any of these sub-contracts especially in logistics and materials import sure makes gd biz sense!

2) The "ME" revolution : if you have notice, everywhere that signifies 'me', 'myself' and 'I' seems to be in the rage this days. Think American Idol, reality shows, blogging, facebook and personalized items and accessories. People these days want to be unique in an ever global market. Seriously who want to be seen together with someone else wearing the same shirt or holding the same bag? Well, I don’t! What’s to be expected, is more personalized items to be out. Now there’s even personalized tours which I heard recently. So why wait? Think personal ;)

3) Food, food glorious food: Yes, I am talking about the food industry. In sg, everyone needs to eat, and won't blink an eye for the best treats in town. Sadly, cheap yummy traditional hawker fare is slowing paving way for fast, expensive cooked food. Well, all is not lost, as I have said, if you can serve good affordable food, its very gd biz & you wont need to worry about power of "word of mouth", people will come. Now what should I have for supper. =P

4) Clean & green, doing a part for earth: Increased awareness in the media has made everyone clear that they have to do their part for a better environment. Wouldn’t it be great to come out with new green products for the masses? Such as ease of recycling, less reliance on raw material usage and green energy. Who knows, maybe it can sprung off an all new industry!








5) The golden years: Yup, Singapore is ageing real fast. My parents are too. For me, I want them to enjoy their golden years as much as I can. Asia's population above 60 years old is expected to quadruple by 2050 to 1.2 billion people. More importantly, as people live longer and healthier lives, population ageing has posed significant challenges to economic growth, healthcare, and sustainability of families. Its global implications are huge, but have yet to be fully appreciated. Silver-related lifestyle products and 'smart' homes will be become essentials in the near future.

I always believe, there opportunities can be found if you look dig deeper into our surroundings. These are the few industries I am watching and researching this year. =)

Launch of SgSparks.blogspot.com

I'm launching this website to promote and pursue my interest in biz ideas, biz trends in Singapore. Well a bit about myself; I am in my mid twenties, currently working in an engineering firm and pursing a part-time degree at the same time at NUS.

I hope to start my own biz and to build a passive income someday. Till then, I wish to put those dreams down into this blog. From here onwards, I hope to learn new skills, experiences and also to brush up on my English skills. Also I hope my blog would be an inspiration to people out there, especially young people who share the same dreams as me. That this website can serve as a platform to share and communicate ideas.

Feel free to comment and critic and I hope you enjoy this journey with me. =)