Joseph P. Hawranek, Ph.D. a24
Vertical Legacy – FMA – Founding Member Affiliate
jpfinancialeducation.com – Educational blog
joehawranek.com – Personal blog
jpvr.verticalrising.com – Educational blog
“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our Government. It has done this through the corrupt practices of the moneyed vultures who control it.” Louis T. McFadden, Chairman of the House Banking and Currency Committee, 1932
“If we all did the things we are really capable of doing, we would literally astound ourselves….” Thomas Edison
“I find out what the world needs. Then I go ahead and try to invent it.” Thomas Edison
Part II – The Solution
In Part I, “The Problem”, If You are Out of Work, Out of Options, Running out of Benefits, then understand: The Jobs are Gone – There is a Solution- But the Answer May Surprise You – - – This is Part II where we give you the answer. Given the findings of Part I, the best solution for the unemployed, is to become an entrepreneur and start their own business.
In Part I, we found that we currently have 23% unemployment or 36 million people out of work, 47 million on food stamps, inflation at 9% and that we have been in a Depression since 1Q08. Further, we found the jobs are gone on schedule. They were moved to the third world countries as technology transfers per the CFR, Agenda 21 New World Order advocates’ plans that have been process since 1992. In addition, we found that the government’s QE programs worked very well for bankers by reducing their debt to equity ratio from 60:1 to 10:1 but did nothing for unemployment since it was never intended that they affect unemployment. The money manipulated the market up to make people “feel good” in bad times. The QE did add $1.6 trillion to the national debt.
The manufacturing and retailing industries have been decimated and the future looks grim with more unemployment. The only old-line industry making money is banking at 41% last year due to the QE gift of a $1.6 trillion dollars.
The government is currently at 108% debt to GDP and growing rapidly to the 133% level that would make it comparable to Greece. However, life goes on and, the economy is still running but at a slower pace
This above provides a challenge. What does an unemployed person who is out of work, out of options and out of benefits do? The answer is that he must rely on himself. He must rely on his own knowledge, resources, abilities and hard work to create his own business and become financially independent. The opportunities will be in industries that did not exist just 12 years ago but are growing exponentially. Creating your own business provides virtually unlimited opportunities if you choose the industry correctly.
Again, salvation for the unemployed and underemployed is not the normal set of companies or government-supported companies because they and the government are continuing to lay off people. The solution is in the individual to use his strengths to create his own business and become independent of the centralized system of corporations.
This Part II shows the unemployed where the jobs are and what is required to get them. It uses Paul Zane Pilzer’s, book, The Next Millionaires, as the model to finding work. I believe that his work is very creative and “on target”. This section is modeled after his approach but I added material.
Paul Zane Pilzer (hereafter I call him “Paul” in this article) proposes that in the new world of the internet and instant communications that the individual will be empowered to make decisions on his own. Further, it is not necessary to go to large corporations to “get a job” but rather the best jobs are ones that an individual can do by creating his own business and capitalizing his own strengths – we all have them.
The Economics of Abundance
In his book, Paul proposes a set of six laws that will hold in the new world of growth. Further, if one understands and follows these laws, then one has a chance of becoming a millionaire. Most importantly, one has a chance of becoming financially independent and create a profitable business that sustains most lifestyles. I will first state the six laws and then comment upon them
- Resources are unlimited because our minds are unlimited for creating new needs
Paul holds that the original set of millionaires had financial resources to either gain an advantage in mineral wealth (e.g. oil, coal ), then industrial wealth (e.g. Carnegie, Rockefeller), distribution wealth (e.g. Sears, Walmart) but the next generation of millionaires will come from information and distribution of information and the individual has virtually unlimited resources in this area.
- Resources are unlimited because our minds are unlimited for creating new needs
All marketing fulfills a need – a demand for something. If the need is information, then the demand is unlimited because the human mind always wants more either in quantity (reduces the price) or quality (modifies the product). The fulfillment of an information need is to create the information, teach the information or distribute it. This is something that we all can do.
- Technology determines the supply of any given resource
Paul posits a formula for Wealth creation as
Formula for Wealth – W = P x T
W = wealth, P = Physical resources available = close to a constant, T = Technology available
Wealth is no longer about resources, it is about technology and information where information is defined as data that is useful.
Here is where Paul and I diverge. First, he contends and I agree the Physical resources in this new world are constant and that technology is the variable. He also contends and I agree that the Internet is the Technology of the future. However, he talks about but does not introduce the critical element that must be sold – Information. It is information that is in demand. The internet just delivers it in various forms of text, voice and video.
IIG- Instant Information Gratification
We are now in what I call the “IIG” generation, where IIG is pronounced “IG” and it stands for “Instant Information Gratification”. Today, we ask Google for anything and everything and expect instant results. Thus, I would modify his formula as follows:
W = P x T x IIG
Where: W = Wealth, P = Physical resources available = close to a constant, T = Technology available = computers and internet = constant, IIG = Instant Information Gratification – pronounced “IG”
The critical element is IIG – what is the information that the customer wants. How can you fulfill his demand? If you can supply IIG, then you can make money at doing so. To supply it you must gather, create; manipulate data in a form that provides meaningful insight to the user.
- The advance of technology is determined by the exchange of information. The faster the exchange and use the technology implies the faster we advance
Historically new technology affected mankind. For instance, the written word created Civilization and the printing press created the Industrial Revolution. The Internet creates an IIGization revolution – instant information gratification.
Currently,the internet is accelerating the rate of information exchange at an exponential speed. Because of this speed and breadth of distribution, the rate of technology and wealth over the next two decades could surpass the previous 10,000 years.
5. Technology Determines Need
The Laws of marketing are changing. The old law of marketing – Find a need for a product and fulfill it is still valid but today can be modified to find a need for information and fulfill it. The closer you get to real time demand, the more value the information will have. You do not have to build information like a “widget”, rather, you massage data to create it in a meaningful form to meet customer needs. It can be “customized” to the customer’s needs.
Paul holds that there is no limit to our economy because there is no limit to the demand for information. Some characteristics of information are that demand for more quantity lowers price and demand for more quality creates improvements and raises the price. I also observe that if the information is not provided in a timely fashion, its value goes down and could approach zero.
- Your immediate economic potential is defined by your personal technology gap.
Your technology gap is where you will find your greatest immediate economic potential for growth. This is where you will find the greatest opportunity as an entrepreneur,
Our World is Changing
Humans generally resist change for reasons of security. Today, one must embrace change for reasons of security – not resist it. Let us see if we can create a few rules that can help in creating a job.
Rule 1 – Technology can change in the course of a single lifetime.
Changes that used to take place in 50 years now happen in a few years or a few months. If you accept change, then you will find that T can be the key to creating growth.
Rule 2 – Unemployment is the true sign of economic growth.
As an economist, I learn from studying man in his everyday life. I try to learn how economics work to alleviate human suffering, to help people to take advantage of the shifts in technology, earn more money and potentially become wealthy. As an engineer, I enjoy working on the technology that helps accelerate the change that makes life easier.
With that said, we are now in the time of the internet where information is constantly wanted and provided. The need now is for workers who can meet that need by using the internet technology either directly or indirectly. The largest need is for sales representatives. Why sales representatives?
Salesmen provide information and present it to the population of users. They listen to their concerns and try to answer these concerns in the form of education and training of people to meet their needs for information. The one on one interface of sales to user will never go away since it is the way we learn.
We interact by asking and getting answers.
Being unemployed can be horrible personal experience but if one also recognizes that the jobs are gone then you will stop wasting your time and realize that something different is happening. The economy is changing and heading into a new direction. We are in a period that economists call “structural unemployment”. Jobs in category A disappear whereas jobs on category B appear.
Consider the classical example of an island with 10 farm workers manually tilling the land and suddenly a tractor is provided to the island. Only two men are needed for tilling now –one to use the tractor and one to maintain it. What do the other 8 men do? They find and create new jobs or go hungry. They choose from fishing, plumbing, teaching and medicine – a whole host of disciplines where they can contribute their knowledge and barter for food.
Where Are the Future Jobs?
Paul shows us that the economic potential centers about the Technology gap – not in recapturing old jobs and old industries. They are gone. This means that they center around the internet, the gathering and dissemination of information.
“You, not China nor the American Corporation, are in control of your destiny – - – In what new and emerging industries can you find a way to apply your capacity to adapt, learn and create new wealth? P44”
Paul suggests that you create your own business where you own the company, its intellectual property and where you can get an unlimited potential growth. Look upon unemployment caused by technology change as meaning growth in the economy and ourselves. The rate of change of technology has speeded up which implies more opportunity for growth and wealth – if we apply ourselves to filling our technology gap and capitalizing our abilities, we can grow rich.
Rule 3 – We are in the middle of a boom “millionaire population explosion”
Consider that in the 1990s, there was massive creation of wealth that led to 3.6 million millionaires to be made.
- 1776-1991 ( 215 years) – to create 3.6 million millionaires
- 1991-2001 (10 years) – to create the second 3.6 million millionaires
- 2001-2005 (4 years) – to create another 1 million millionaires
- 2006 – 2016 (10 Years) – We will create an additional 10 million millionaires
Paul feels that the next 10 years will create 10 million millionaires based on the technology of the internet and the demand for IIG.
Personal Strengths – What do You bring to the Party?
We have established that the future is in sales of information using the internet. Your
success will be defined by your skills and how well you keep pace with the rate of technological advance. It is the accumulation of your years of learning, your character and your focus that will make the difference.
What is your Personal Technology and IIG?
- W = P x T x IIG
- Today a relevant measure of your P is the people you know and how well you can communicate with them and others
- The T refers to the internet and is continuing to grow by covering more people and providing broader bandwidths.
- IIG is your personal knowledge about a certain area in which you are passionate. You can write about it, talk about it and put it on a Blog to communicate it. If others like to read it, your attached affiliate ads can make you money.
- Success in business depends largely on your adapting skill – the ability with which you learn new things. There are 3 types of skills
- Basic skills – read, write, speak, process information
- Functional skills – Specialized skills that you have acquired – nursing, farmer, engineer and so on.
- Adapting skills – ability with which you learn new things
The internet is your most important technology for turning your existing resources into those of a millionaire. Your success will depend on how much you mind stepping out of your discipline and its routines and adapting new ways of doing things. This is your ability to change. You will find that the internet is an instantaneous global communications system. Your ability to use it and leverage your time will be the critical element to your success.
Go to Where the Growth Is
The days of holding a job for a lifetime are gone. Your job is gone. Hard products such as cars, PCs and fabricated products are gone off shore. You must now look to where the growth is coming. The world is changing. The new and emerging industries are now beginning and are centered about information that is transmitted over the internet. One example is 3D manufacturing machines. Develop the design in location A, send it to location B to have it fabricated on the new 3D machine. This is the Internet in action. Defense contractors are already using these machines to fabricate parts.
The Social Media industry has gone through explosive growth in the last 6 years. The Growth is historical since nothing has ever approached this rapid growth in any area in the past. Exhibit I, Social Media Growth shows the growth for only 6 years and stops at 2011 because I could not find reliable numbers for 2012 and 2013. The trend is what should be observed. First, it is exponential. Second, the users now number over one billion and the Social media is adding hundreds of millions per year.
Exhibit I – Social Media Growth
Now let us examine some information-based industries? There are three large ones – wellness, internet and intellectual distribution that you should consider.
What are other new information based industries? There are three large ones – wellness, internet and intellectual distribution that you should consider.
Wellness – For this paper, I define wellness as the money you spend to make you feel healthier, even when you are not sick. To be specific – last year, we spent $70 billion on vitamins, $24 billion on fitness clubs and $12 billion for personal trainers. The total last year was $300 billion. Projections are that in another 10 years, this will grow to a $1 trillion industry. This is exponential growth.
If you have expertise in this area or a passion for this area, you should consider it.
Internet – The Internet has barely gotten started. It is the technology of the future. Paul points out that this is a revolutionary technology that empowers the cunsumer. He points out that the written word led to Civilization, the printed word led to Industrialization, the internet allowing instant communication will introduce IIGization – instant information gratification. The consumer can have full information instantly on all products and services and make an independent decision as to whether he wants the item. Internet is the transformational technology that enables the information revolution of IIG that is just getting started.
If you have expertise in this area or a passion in this area, you could consider it as a source of money. Many people are creating information articles, videos, and webinars on all aspects of the internet – and are making a good living doing so.
Intellectual Distribution – The New Game in Town - This is the big opportunity. Economic opportunity for thousands of years was in the hands of those who controlled the physical resources through their control of Capital. This has now changed.
We are no longer in the era of Resource Millionaires. Prior millionaires controlled resources and became manufacturing millionaires –who found cheaper ways of making things, how to use plastics and how to ship at lower cost; distribution millionaires, the guys who in the 80s and 90s created distribution networks such a – FEDX or Perot systems
Today we have the era of Distribution of Intellectual Property. We have Jeff Bezos – Distribution of books with Amazon.com – Age 41 – worth $3.4 billion, where you learn about a book, place the order and FEDX distributes it. We also have Pierre Omaidyar with eBay – age 38 – worth $8.5 billion where you auction items and get them shipped by FEDX.
The message is that over the next 10 years, the future Millionaires will be in the distribution of information business. Remember that distribution has two arms
- Education – teaching consumer about product and services that will improve their lives
- Delivery – Physically moving the goods to the consumer’s hands
Rule 4 – the number 1 business opportunity for those who want to create new wealth is educating consumers about products and services that will improve their lives
The Technology gap today is Information about any product. Technology now exists to transmit information globally and at the speed of light. The forms of information provided by IIG is advancing very rapidly also. If you are the first one that tells the consumer about new products that can improve the quality of their lives, you stand a chance to make a fortune.
The Age of the Entrepreneur
In Part I, we showed that the jobs are gone in the old industries and service businesses. We are now in the age of the entrepreneur. We are in the midst of a boom in home-based business and the growth shows no sign of slowing. The greatest opportunities today are to go into business for yourself as an entrepreneur. Today, the real risk is staying with a large corporation because your job will probably be discarded within a few years and shipped overseas. The research shown in this paper indicates this observation fits all positions of service, product or management. Review the discussion in Part I.
Benefits of Entrepreneurs vs. Big Companies
Entrepreneurs that own their own business have equal or better benefits than those of the Fortune 100 companies. For example, they will have the same benefits of deferred tax savings as employees of large corporations. They will have the same or better health plans than employees of large corporations. Further, they are the norm since 50% of Americans either work for themselves of for a small business. They will likely work the same hours as they do in corporate America but choose the hours. Moreover, they have a better family life with their family and children because the children can see how you make a living and they may participate in some meaningful way. Finally, the alienating gap between home and work hours disappears
Why Direct Selling?
The future lies with businesses that can gather, distribute and explain information on new things, new services and new techniques that improve peoples’ lives. Direct selling is where things are explained and not “sold”. The Direct Selling industry is perfectly
positioned to create many of the Next Millionaires. The modern direct selling industry is poised to become the distribution method of choice for all new products and services. It appears as if direct selling is the perfect intellectual distribution business for today’s economy.
Direct selling gets a bad reputation from the used car business. Internet sales are not “pressure” sales. Rather, they are explanation sales. Therefore, let us define what is direct selling in the internet environment. The salesman is:
- Person to person
- Educated in the product or service
- Enthusiastic about the product or service
- Experienced user of the product or service.
As powerful as the internet is, it has not replaced the one–to–one personal functions of the modern direct seller and it never will. Video presentations are the fastest form of internet marketing growth simply because nuances of expression and talking are overpowering the written word of sales material. The seller still must interact with the buyer on Skype, the phone or in person because one to one personal conversation is virtually the only way we actively learn. Direct selling is the most effective medium for helping people close their technology gap.
Where Do the Leads Come From?
For those that have never been a direct salesman, the thoughts of lead generation is somewhat frightening. In fact, the process is relatively easy. First, if necessary, you can buy leads but the real resource is yourself in gathering them from – who you know, who you meet, who you see or who you attract. You attract leads through a blog by writing articles on your favorite topic about which you are passionate. Everyone has one.
PASSIVE INCOME – The Big Dollars
For most people, the only way you are ever going to accumulate a significant amount of wealth is through passive income. You can make a good living without passive income but with passive income, you can become wealthy. For passive income, you have to create some form of property– intellectual and sell it. Direct selling provides an opportunity – open to absolutely anyone at all, regardless of background, specialized skills or accrued capital worth – to create significant residual income.
To make money using the internet, many techniques are used. I will describe just one where you can create intellectual property used to create residual income – it is blogging.
The steps are you get a domain; create a blog; write articles on something that you are passionate about; get visitors to read your blog and some will select the affiliate marketing ads that you place on your site. After a period, collect a few articles that you have written, create, and sell eBooks of the same material. You also have the option to write your own eBook or create courses on your material. The objective is to get real tangible intellectual products.
Where Do You Get The Training?
We have covered a lot of material and some areas where you will need training. Where does one get a knowledge of internet, help in creating a blog, and help in SEOing your articles, advice on setting up a company, and advice when you run into problems? You can do all this on your own but that takes time to learn how to do it. Another approach is joining a direct marketing company as an affiliate marketer that provides this training. This is the fastest and surest method. You do not have to stay with them forever but you can speed up the process by joining them initially and soaking up their education. If it seems a good fit, stay with them. I joined Wealth Masters International as an M3 member and I am a Founding Member Affiliate (FMA) of Vertical Legacy with these thoughts in mind. I received the education but I have found that I like and enjoy the people in the company. Further, I enjoy helping others start their own entrepreneurship. Therefore, I decided to stay affiliated.
If you get involved in a direct selling company today, you are going will get training, audio presentations, hard copy materials and education one on one and in groups. You will also find tools for developing belief systems and management systems that you are not likely to find anywhere else.
Remember that your success depends on you. This is your business. You bring certain technical skills, knowledge bases, communications skills and time resources as well as dollar resources to the new business. Each person has a different mix of assets and needs. It depends on the individual’s willingness and hard work as to how successful he becomes.
Some Entrepreneurial Skills Learned
Let us look at some of the skills that will be required and learned to become successful. Each person will have strengths and weaknesses in this skill set. If he has a weakness, then he has to work harder in that area. The company training programs cover all these disciplines.
- Computer proficiency
- Internet proficiency
- Leadership development
- Public speaking
- Product knowledge
- Selling techniques
- Instructional techniques
- One on one communications techniques
- Direct selling
- Requires you to interface with the customer
- Take the order
- Does not require any distribution of product
- Inventory keeping
- Order processing
- Primary focus is on
- Finding new customers
- Recruiting new customers
- Educating new customers
It is in the best interest of the company recruiting you that you become effective and as trained as possible as soon as possible. If you leave Company A direct selling job for Company B, you can take your personal IP products with you and the knowledge you have gained with dealing with people stays with you.
As an entrepreneur, this is your business
- Your success will be directly proportional to what you bring in knowledge to the party, how hard you work to make up your Technology gap and the money you invest into the new business advertising for leads generation.
- Helping other people make smart economic decisions for themselves creates a business that you can operate from home, allows you to spend more time with your family, create intellectual property residual income, and help many different people meet their needs. This helping others provides its own rewards beyond the financial income.
- If you become proficient in a Direct Marketing company that has financial products such as Vertical Legacy, you will become proficient in debt management, the process of creating strategies for investing for wealth creation as wealth preservation.
- Direct selling makes you a better entrepreneur because it requires that you interface with people who are your customers.
- Your willingness to join a firm that has good teaching staff, tools such as videos and advanced training methods will speed your progress.
- The old jobs are not coming back. Your best chance for financial independence is to create your own company and depend on your own abilities.
I wrote this because through lead generation process for my affiliate marketing company, I have called hundreds of people and discovered the “hurt” that is out in the economy today and the number of people that are frankly deluding themselves that the jobs are coming back. They are not until the management of this country changes.
I believe that the alternative defined here is a viable alternative for the unemployed and underemployed. I believe that forming and running your own business is honorable, exciting, stressful at times, educational and financially rewarding. I have done it before in my own consulting business. Accordingly, I joined Vertical Legacy (VL) as a FMA. Even if you do not choose to join VL, you owe it to yourself to examine this type of company. This is the type of company that provides training and opportunity for your growth and financial independence.
A couple of months ago, I wrote an article called “Vertical Legacy Review” that is currently number one on Google. It was my training at VL that showed me how to do this. I suggest that you read it, not for joining VL, but for understanding the type of company that fits the model that I described above. By the way, the article provides “IIG”.
To return to Part I – The Problem, click here
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