http://www.relationship-economy.com/?p=9557

It didn’t have a lot of success over the past 40 years. Then along came the tsunami of economic forces, and inter-generational households are back with a vengeance.

http://pewresearch.org/pubs/1528/multi-generational-family-household

network marketing: global trends

THE LURE OF A BEACH LIFESTYLE

A lifestyle of the rich and famous is a common image projected by many network marketing leaders. It is extolled in video presentations. It is acted out at “major events” held in exotic resorts. It is seductive…a heady experience. We attend in droves, in hopes of an epiphany on the road to riches. We listen to the dream, with hopes the dream now includes us.

These sessions do inspire and encourage…but, if what follows is financial and relationship stress arising out of unreasonable business expectations and overextended  expenditures, the inspiration backfires. A promise of vast, easily-acquired wealth, is seductive and destructive; both for the new person, and for the leaders who are under pressure to uphold the persona.

OH – NO – ANOTHER NETWORK MARKETING BANKRUPTCY

If there is an elephant in the network marketing boardroom, this certainly is it!

MATERIALISM AS A MEASURE OF SUCCESS

Network marketing grew up in the United States in a pervasive culture of materialism.

Top performers are held up on pedestals. They may arrive in white limos and be-jeweled gowns, march across stages with photos of their multimillion dollar homes, their multiple cars, beach vacations, beautiful children, flashing on screens behind them, as they sit  lounging at home, while the cheques roll in.

IS THIS TRUTH?

Not a bad picture, you may say…who wouldn’t aspire to it? It has been truth for a small number – less that .5% actually.

The problem comes when the story being told is that everyone can easily have this, in a short period of time. It is true, there is nothing standing in the way of that level of success – but, no different than success in traditional business, only a few become heads of huge corporations. Many more in traditional business make a good living and manage their money carefully…so it is, and should be, in network marketing.

THE DREAM IS IMPORTANT – BUT SO IS KEEPING YOUR FINANCIAL FEET ON THE GROUND

Chasing the possibility of riches, or maintaining the illusion of a wealthy lifestyle, has taken all too many into bankruptcy, or to the brink of bankruptcy. Relationships have been strained, if  not totally destroyed, and not just at the entry levels.

I have seen people, who were making six figure incomes per month, head into divorce and bankruptcy because of that insatiable hunger in the belly of the beast of greed that keeps driving them to spend more and more. They keep buying ever bigger homes, more vacations, wanting to generate an even more opulent lifestyle to attract others to the dream.

Let’s be truthful about what we can realistically expect in this business, and reasonable in setting our financial goals. It will be to our advantage and earn us credibility in the business world.

LET’S GET TO THE TRUTH ABOUT THE MONEY

New recruits are all too often approached with the lure of riches, status, and an opulence, easily attained.  This wealthy lifestyle  is promoted as the norm, promising to be within the grasp of all who sign on the dotted line.

It is a culture of untruth (not really ‘out and out’ lies) about how much money the leaders and the majority of people are making. The mystique tempts one to fill up credit cards, borrow from family, or anyone who will lend money, so they, too, can prematurely flaunt wealth.

Most companies also have levels of achievement based on volume. The rush to hold the crown (often the levels are named after precious gems) and gain status by being part of the stage parade at these higher leadership levels, propels many to overspend, thus losing sight of the need to build a business that will generate sustainable income.

I once heard a top distributor speaking  to a large crowd in a training session suggesting that when you are asked, “How much money are YOU making?”…you should simply reply, “You wouldn’t believe it.” The crowd laughed… knowingly.

WE ARE IN CRISIS NOW

The timing to make a consciousness shift in network marketing  is critical and addressing this issue is part of the shift. This industry provides a legitimate option to survive and thrive in the current economic crisis. In case you are still buying into the “song and dance routine” that we are just experiencing a little market blip and will soon hit bottom and rebound, you need to look at the numbers.

THE NUMBERS SUGGEST A LONG ROAD TO RECOVERY

Here are some interesting global facts. Credit default swaps now total 683 trillion while real global production is 63 trillion of global GDP -  (The New Financiers by Hazel Henderson) . A complete financial system redesign is necessary to find our way out of this crisis. Network marketing could be a player in that redesign, if we are ready to revolutionalize this outdated six decade-old model and be honest about what you can expect from doing business in this way.

IS THERE MONEY TO BE MADE?

The network marketing model is one way to  financial security. Unfortunately, security is not achieved when one is living the lifestyle before the money is earned. And that is the culture the industry has perpetuated, believing that flaunting the outer trappings of success will attract more participants. Some people do make very serious money in network marketing. Many make very good incomes and manage that money well. And many more, find great satisfaction aside from the money…through relationships and association with like-minded people.

WHAT IS THE REALITY?

• What if you could replace your current income and gain the freedom of owning your own business…would that be worthy of your time?

• What if you could pay down your debt with a few additional hundred dollars per month...would that be worthy of your time?

• What if you had an additional $1,000.00 per month from your part-time network marketing business? And what if you invested it in other sources of residual income, diversifying and creating sustainable personal wealth …or perhaps even took a vacation?…would that be worthy of your time?

• What if you were part of a company that connected you with like-minded people from around the world…would that be worthy of your time?

It’s about impact and global contribution. It’s about transparency, honesty, sustainability and contribution…the money will follow truth and passion for service.

Let’s give the facts about money, be fiscally responsible, focus on building customer-based residual incomes and promote the intrinsic values being in this business holds for everyone.

Let’s be honest.

Let’s be transparent.

Let’s use an approach to marketing that is about real abundance.

Let’s use Social, Relationship and Environmental Marketing to attract people to the industry using personalized, reasonable expectations of success.

BLESS BLESS
JUDY BERG

contact: attractingsuccess@soulabundant.com
Organizational Behaviour Consultant
Network Marketing Consultant and Trainer
author: Imagine Your Soul Abundant: Attracting Success, Fulfillment and True Happiness
more about: www.wellnaturallyinternational.com www.soulabundant.com
Judy’s book can be ordered from her website www.soulabundant.com.  Special prices for bulk orders upon request. Seminars and retreats customized to the needs of your group or organization.

Food & Design: Pepsi Natural

GOING ORGANIC

It seems like the new trend for products is to go organic these days.  Or at least trying to find a more eco-friendly or natural approach to their products.  So one would think that this would be an interesting approach for a cola company, PepsiCo. to switch over to the “natural” ingredients that nature has to offer.

IN THE UK
At first, Pepsi tried out the “natural” approach to its United Kingdom customers.  Calling their new recipe Pepsi Raw, PepsiCo. introduced a cola made from sparking water, cane sugar, apple extract, tartaric acid, which comes from grapes, just to name a few.  This is such an interesting idea for a cola company -remove the high fructose corn syrup and market it as the natural cola.

Now, on this side of the pond, American customers will find three similar Pepsi products sweetened with natural sugar in March and April: Pepsi Natural, Pepsi Throwback and Mountain Dew Throwback.  The two throwbacks will be available nationally April 20 for eight weeks.  To complement the name, the throwback packaging will have a retro-look.  As for Pepsi Natural, the glass bottle, sold in a four pack will have a sleeker, simple design showcasing the three main ingredients: sparking water, sugar and kola nut extract.  In addition, Pepsi is labeling this as the “all natural cola”.

WHY DID PEPSI DEVELOP A ‘NATURAL’ COLA?
Back in the early 1980s, most of the major cola manufactures made the switch to high-fructose corn syrup from refined sugar.  At the time, the lower cost of the syrup and the cola wars made the switch obvious.  Now, with the current market’s negative press for all things high-fructose corn syrup, Pepsi realized that part of its market share was dropping.  With different approaches and new flavors to keep with current trends, PepsiCo tried Pepsi Raw and now Pepsi Natural.

WILL CUSTOMERS EVEN DRINK THIS?
Let’s face it. Pepsi has created some interesting drinks to extend their product line.  In fact, some may say that their product line is a bit over-extended.  The question is, will people want to pay about twice as much for this “natural” Pepsi?  Providing a solution to the negative press for the sugar substitute syrup, Pepsi created a solution for its customers.  However, its does pose the question: is there a price where no cola is better than natural cola?  When you double the price of your good, just to serve a niche market of individuals who want to drink cola but without the chemicals, will this product extension survive?  At this point, I think its too early to tell.

Personally, I think this a step in the right direction for the beverage industry as a whole.  As Americans, we have grown accustomed to drink our sweets and sometimes forget to watch what we put into our bodies.  This would be a positive step for cola drinkers into this new and improved natural Pepsi.  However, even with the term “natural” Pepsi is not trying to market this cola as a health drink.  In the Times, a spokeswoman said, “We’re not saying it’s healthier.  It’s a premium drink for people who like natural products.”

Alexandra Gergar graduates from the University of Pittsburgh with a BS in marketing and finance.  Cooking since she was a child, she now  has a food blog called Lemons in Water.

Product design is a conversation with your audience, why not blog in the same manner?

Alex Gergar

enlightened orgs: inspiration

A NEW BLACK GOLD

In the debt-free province of Alberta, where the black gold that first gushed from the ground in the 1950’s, has resulted in a Heritage Trust fund worth of billions of dollars being set aside for a “rainy day” – getting anyone to think about alternative energy sources is not an easy sell. But two framers from the tiny farming community of Vegreville have risen to the challenge.

Their innovation to create Biogas from cattle manure seems a perfect fit for a province that has ranching as it second largest industry. It is also timely for a province aware of the implications of the depleting sources of non-renewable oil and gas, and the challenges of a reliance on an industry with a Boom/Bust economic cycle.

“Inventing a new technology is a pure Alberta story… a great example that building a knowledge economy can happen on the farm, not just in ivory towers” – Evan Chapko, CEO, Highmark Renewables (Edmonton Journal, 02/08/09)

FROM POOP TO PROFIT…Alberta’s new Black Gold…

ALBERTA’S FIRST GREEN ENERGY MEGA-PROJECT

Shane and Evan Chrapko are taking the cattle manure from a 30,000 cow feedlot, owned by partners Mike and Bert Kotelko, and turning it into Biogas, something their company Highmark Renewables, markets as “renewable natural gas.”

They have just tapped into what is probably Alberta’s most abundant and renewable resource…cattle poop.

The greenist electrical generating plant in the province is now producing one megawatt of power which is enough to meet the electrical demand of the feedlot and 700 homes in the tiny communities of Vegreville and Two Hills. When the construction on this plant is completed, it will also produce ethanol to be added to gasoline without the current problem of having to take away from farmland to produce ethanol from crops like corn. Together, with the help of Xiaomei Li, a scientist from China, they have developed more than 40 recipes for turning waste, including slaughter house waste and municipal sewage, into biogas. Patents are pending.

Their motto: “Where there is waste…there is opportunity.”
Chrapko calls it a “virtuous loop – producing power, cattle feed, fuel and fertilizer .”

The goal is to have a string of plants across the prairies at sites where manure is plentiful. When you consider each cow produces the manure equivalent of six humans, the idea of continuing to spread this volume of waste and its resultant methane gas, over the land forever, without negative consequences, is to ignore a looming environmental problem.

Travis Nickel who heads up the company, Growing Power, responsible for the electrical side of this innovation, sees a time when every feedlot in the country will have such a plant to provide fuel for nearby towns and will deliver ethanol to the big refineries for production of gasoline.

Shane and Evan Chrapko are no strangers to successful ventures. They launched, built and sold The DocSpace Company for 811 Million (538 Million USD) in just 30 months from inception to final sale. Both are graduates of the University of Alberta. Shane is the recipient of the rare Early Career Achievement award awarded to one graduate from a pool of 100,00, who has achieved remarkable success in business within ten years of graduation.

ANOTHER LOCAL, HOME-GROWN SOLUTION…a company to watch in the future!

BLESS BLESS
JUDY BERG
If you know a company that is making a Mindshift towards serving humanity while still turning a profit, we would like to know about them. Let us know by contacting::
attractingsuccess@soulabundant.com... or leave the information in the comments section of this post.

Organizational Behaviour Consultant
author: Imagine Your Soul Abundant: Attracting Success, Fulfillment and True Happiness
more about: www.soulabundant.com
Judy’s book can be ordered from her website www.soulabundant.com.  Special prices for bulk orders upon request. Seminars and retreats customized to the needs of your group or organization.

Consciousness: inspiration

CONGRATULATIONS, CANADA!

Today, we are celebrating the significant acts of two groups of people who are making a difference – first, a group of Canadians doing, 1 million right things...and secondly, 2500 Australians, who peacefully stood up for their beliefs.

My usual approach to this Friday post on Consciousness, is to recognize the inspiring efforts of an individual who is committed to doing something special to make a difference on the planet. We call this person an enlightenor. They are, typically, someone who is quietly going about doing the right things, for the right reasons.

It is exciting to see groups of people coming together – one dream – one team! On Wednesday, February 4th,2009, a Canadian team reached its goal!

THE GREEN CHALLENGE – 1 MILLION ACTS OF GREEN

CBC’s George Stroumboulopoulos, host of the CBC program “The Hour”, challenged individual Canadians to reach a goal of 1 million acts of Green. The idea behind the project is that one small act can make a difference.

“When we all do one act – we act as one – that’s the save the planet effect.”

CBC set up a partnership with Cisco and, using a software program called GreenNexxus, a website was established for anyone to record the actions they are taking to demonstrate their commitment to changing the way we live on the planet and the software calculates the amount of greenhouse emissions reduced by their actions.

“We’re asking everyone to get involved: schools and universities, cities and communities, business, politicians, and even celebrities. George and The Hour are challenging other CBC programs to go green, including CBC News, Kids’ CBC, Steven & Chris, Living, and CBC Sports. But most of all, YOU.

Together we can make an impact. Together we can make our lives, our communities, and our environment greener.“

“The 1 million acts of green have already saved the planet 58,987, 483 kg of green house gases.

Stroumboulopoulos says the next step is to encourage these people to contact their Members of Parliament to insist that they make an equal or better effort.

The demand for government to pay attention to the environment is also coming from the grass roots level at the other end of the planet. Mums, Dad’s, grandmas and babies in prams…

2500 PEOPLE HOLD HANDS TO ENCIRCLE THE PARLIAMENT BUILDING IN CANBERRA

Gently resisting the direction to stay away from the building, protestors, wearing red shirts and traveling from across Australia, yelled a triumphant cheer when the last hands were clasped, heralding success in their project to circle the parliament building with a human chain, and drawing attention to the lack of responsibility of the government in dealing with climate change and environmental issues.

Read the story

“They are calling for urgent action on the climate emergency that threatens Australia’s future and the world.  Their action follows an intense three-day national Climate Summit which produced a list of 2009 campaign objectives:

Newcastle activist, Naomi Hodgson, says, “Today marks a turning point where we say we will not sit on our lounges and watch the government give in to polluting industries and consign us all to an uncertain and dangerous future.”

As we posted yesterday, there is a shift in the climate movement driven by urgency.  Those holding hands around Parliament House today are not a bunch of hippies. We are mothers, scientists, business people, children and commentators. And we all want the same thing – a safe climate future.”

“Never doubt that a small group of thoughtful people can change the world – in fact it is the only thing that ever has.” – Margaret Meade.

BLESS BLESS
JUDY BERG

Organizational Behaviour Consultant
author: Imagine Your Soul Abundant: Attracting Success, Fulfillment and True Happiness
more about: www.soulabundant.com
Judy’s book can be ordered from her website www.soulabundant.com.  Special prices for bulk orders upon request. Seminars and retreats customized to the needs of your group or organization. ]]> http://vanamburggroup.com/blogs/the-power-of-a-small-group-of-people/feed/ 2 http://vanamburggroup.com/blogs/we-deliver-wow-through-service/ http://vanamburggroup.com/blogs/we-deliver-wow-through-service/#comments Tue, 03 Feb 2009 17:36:38 +0000 Judy Berg http://vanamburggroup.com/blogs/?p=3043

enlightened orgs: inspiration

IT’S ALL ABOUT THE PASSION

I discovered our Enlightened Corporation for this week while watching a segment of the Oprah show in which she interviewed young, self-made millionaires.

Tony Hsieh, CEO of Zappos.com, was one of the guests. He is a great inspiration, a model CEO of a model corporation, for our Enlightened Orgs directory.

His business achievements are certainly significant for such a young man. While still in his twenties, Hsieh (SHAY), a computer undergraduate from Harvard, co-founded an internet advertising agency called LinkExchange, which was sold to Microsoft for $265 million in 1998. But it was actually his business philosophy or mindset, that really caught my attention.

“I AM NOT NECESSARILY PASSIONATE ABOUT SHOES…WHAT I AM PASSIONATE ABOUT IS…

CUSTOMER SERVICE“.

Hsieh says the company could go in any direction, perhaps even the airline business, one day, because it is CUSTOMER SERVICE that he is passionate about, and it is their commitment to customer service that will drive the success of the company regardless of  its product line.

“We`re continuing our focus on service, which includes 24/7 customer service, free overnight shipping and free return shipping with a 365-day return policy.” (source:ecommerceoptimizations.com)
Zappos believes in putting WOW into service.

Zappos.com is an electronic commerce company specializing in footwear and is currently based in Henderson, Nevada, USA.^[2] The company warehouse is located in Shepherdsville, Kentucky, along with an outlet store. In addition, Zappos has two outlets stores in Las Vegas, Nevada and Henderson, Nevada.[wikipedia]

The company was founded in 1999 and went from virtually no sales activity in its first year, to grossing over $800 million in 2007 and projecting sales of $1 billion in 2008.

The company specializes in Relationship Marketing.[wikepedia]

Using this model the company knows its primary focus must be on the customer and the relationship the company will have with the customer over extended periods of time. Contrary to many companies, a company committed to Relationship marketing puts retention at the top of their agenda. It seems an obvious position to take when research indicates that retaining even 5% of your customers can increase your profitability by 25 – 85%.

WHAT QUALIFIES ZAPPOS AS AN ENLIGHTENED ORG?

The things Tony Hsieh described that most caught my attention, and why I have included Zappos in our directory of companies that are doing things differently, and achieving great success at a time when others are “dying on the vines” include…

1.  Relationship Marketing model – it is ALL about the customer and customer retention. That the e-commerce business is built on customer retention is one of their core values.

2. Corporate Culture and Values -they have a Culture Book written by the employees describing what the company culture means to them. A core value for Zappos is the realization that you MUST manage your Corporate Culture. They are absolutely correct. You will have one! It will develop at the water cooler, if you do not define it, manage it… and live it.

3.  Core Values – their website has 10 core values or guiding principles so everyone, both inside and outside the company, can understand what makes the company succeed.

4. Customer Loyalty Training Program - all employees attend this 4 week program. At the end of the first week, they are offered $1,000.00 to leave the company immediately. About 10% of potential employees take the bait. This offer is made to ensure the employees who stay are dedicated to the values and the company, and not just the money.

5. Corporate salaries – Hsieh mentioned he pays himself the same amount of money as his employees make – $36,000.00 per year.

6. Corporate Perks - at a time when Wall Street CEOs are paying themselves $18 Billion in bonuses out of the tax dollars given to keep them afloat, CEO Hsieh, does not have a corporate car, does not have a corner office, sits in a cubicle like everyone else… and says he and his brother share a suit.

7. Work and play have few lines of separation – at any time, Hsieh says, a department may initiate an impromptu parade in costume through the office. He had great difficulty describing his work hours, “Staff like to be together and often the activity at the office spills out into dinner or evening activities together…because I am passionate about what I do, it is hard to tell when it is work, and when it is play.”

8. Don’t be secretive. Don’t worry about competitors - this is another core value at Zappos -  one that is consistent with our belief system for a Corporate Mindshift or a Conscious Corporation. Worrying about your competitors is a belief built on the old model of scarcity. If you believe there is more than enough for all -  you will be open and supportive with all whom you come into contact.

9. Trust Yourself - in our definition of an Enlightened Org, we place heavy emphasis on TRUST and INTUITION (click to see the chart). We believe this is the first step a corporation must take to make a shift from Old Business model to New business model. Learn to trust and rely upon your intuitive voice. It is as powerful for guiding your new reality  – as your physical vision is to guide you in a physical world.

“Make certain you are passionate about what you do – and the money will follow,” says Tony Hsieh.

BLESS BLESS
JUDY BERG
If you know a company that is making a Mindshift towards serving humanity while still turning a profit, we would like to know about them. Let us know by contacting::
attractingsuccess@soulabundant.com... or leave the information in the comments section of this post.

Organizational Behaviour Consultant

author: Imagine Your Soul Abundant: Attracting Success, Fulfillment and True Happiness
more about: www.soulabundant.com
Judy’s book can be ordered from her website www.soulabundant.com.  Special prices for bulk orders upon request. Seminars and retreats customized to the needs of your group or organization.

AWARENESS AND ATTENTION ARE OUR STARTING POINTS

We mentioned the great program, PopTech, last week. If you haven’t watched it yet, here’s another excellent presentation from the October 2008 conference. Debt-crisis expert Juan Enriquez diagnoses and prescribes a reasonable 10-point remedy to America’s pressing financial ills.

Juan calls it a “systemic problem“. Please understand what he means. Only if you do, can you be informed and educate your elected officials who you hired to act on your behalf. For all of our sakes, please listen carefully, then follow up at PopTech.

Can’t see it? Get FlashPlayer, or view at PopTech.

Do you have your head around what “our” Federal Reserve Bank, mortgage bankers, financial “experts” and insurance executives have done with derivatives? $531 trillion???

BUT DO YOU KNOW WHAT MONEY REALLY IS AND HOW IT’S CREATED?

This is important.

To continue our metaphor from earlier today, the U.S. debt is the GIANT canary in the economic coal mine.

Most of us scratch our heads when asked the questions, what is money and how is it created. Yet it’s fundamental to our lives. We invest 40 years or more of our lives earning money. We rely on it for multiple times a day, to buy a pack of gum or to charge for our services.

I don’t know Chris Martenson personally, but I like most of what he has done in creating his Crash Course, a free, condensed online version of  his “End of Money” seminar. In 20 sections, 3 to 20 minutes in length, he covers most of the critical elements we need to think about.

He is totally on target by identifying energy as critical to our economic and societal future. I respect, but don’t agree with all of his conclusions regarding energy. More on energy later. But I think he has captured much of the essence of where we are with our money system.

Here’s his two minute introduction.

I recommend viewing the full course. It won’t cost a penny, it’s constructed in digestible bite sizes, and it could help you save your home, retirement, and business.

But please remember that if we see ourselves as separate from the the world, we will experience desire and fear. We are all part of one reality. The common themes we experience can be changed overnight. It is up to us to change them.

WHERE IS THE UNIVERSE MOVING US AND WHAT ARE THE PRACTICAL IMPLICATIONS FOR YOU?

If you’ve stuck with us all day, we’re finally ready to discuss the question, Where Is the Universe Moving Us and Our Economy? Next Monday, we’ll start giving some of our big picture projections, and identifying specific opportunities being brought by the changes for you and your organization. And in advance of that, we’ll touch on other opportunities throughout this week.

Until then, be excellent.

Sincerely,

David VanAmburg

global trends: economy: non-traditional revenues

BREATHE DEEPLY

Our last post talked about the adult entertainment industry’s request for a government bailout as a canary in the economy’s coal mine – a harbinger of the thinning oxygen of cash flow.

But to see one canary doesn’t necessarily give us good direction. What are the other canaries to watch? There are so many. We’ll look at just a few.

This week we’ll focus on specific “non-traditional” revenues, forms of value added taxes, or goods and services taxes [Wikipedia] based on your travel, entertainment and gambling activities. In the coming weeks, we’ll observe others.

WHY SHOULD YOU CARE ABOUT NON-TRADITIONAL REVENUES?

This term is used by businesses and non-profits to identify sources of revenue beyond their usual sales, fees or grants. But for government, it has a special meaning.

Local, state and federal governments have shifted the economy over the past few decades to rely on non-traditional revenues. And that reliance is much deeper than you may be aware.

Entertainment taxes: Many urban cities or counties have have instituted an entertainment tax, a 1% – 10% add-on to sales taxes. Purchase a concert ticket, order a drink at a restaurant, stay at a hotel, etc., and you may be paying to subsidize a convention center, a tourism promotion agency, a zoo, or other “regional assets”.

But these fees could be much more. FRAMES is the biggest global convention in Asia on the business of entertainment. In a 2003 presentation, Indian government officials stated that entertainments taxes total 120% of the actual cost of entertainment services.

“Sin” taxes: Likewise, it is easy for politicians to justify increasing taxes on selected activities that are considered optional and not in the best interest of society. Purchase a pack of cigarettes, buy another drink, gamble a bit, and you might be paying a premium to subsidize drug and alcohol treatment or other human services, your local playhouse, etc.

Lottery revenues: It is/was illegal and considered immoral for private bookies to run numbers and for individuals to bet through them. But it is legal and respectable for states to run lotteries and individuals to bet at every grocery and convenience store in the nation. Your state’s education for children, services for seniors, and other human support services are now very dependent on lottery funds. In the U.S., 43 states now operate lotteries. [Wikipedia]

How dependent are we now on lotteries to fund our society? Pretty darn dependent. Cultural Information and Research Centres Liaison in Europe published Gambling on Culture: State Lotteries as a source of funding for culture – the arts and heritage.

Some reports indicate lottery revenues are declining. Texas’ lottery revenue decreased $102 million or 2.7% in the last fiscal year. This decreased public education revenues by $49 million. In October, Rhode Island officials acknowledged that their gambling receipts will fall $11.1 million behind earlier estimates for the year.

But the Boston Herald reports the AP story today that Many states’ lottery sales are rising in recession.

“More than half of all states with lotteries have reported rising sales over the past six months, and some researchers say financial insecurity might be driving people to risk more of their money than usual on $1 and $5 instant scratch-offs and other daily games in hopes of a big payoff.”

Why are more people buying lottery tickets? The Tax Foundation asked a few weeks ago, Does Lottery Revenue Rise or Fall during Economic Hardship? Their conclusion:

“… some people see the lottery as a solution to financial hardship and spend money on it when they can least afford it.”

Global Investment Trends published an article that makes a lot of sense to me, The Lottery Scam. The article investigates the real odds of winning with the question:

“Would you like to pay a 75% sales tax? This is what you are paying when you purchase a lottery ticket.

North America Casinos
click for map

Gaming revenues: Regions, states and countries fight over gamblers’ revenues. WorldCasinoDirectory.com offers an interactive map of 1,511 casinos in North America. It’s missing a few, but the visual impact is overwhelming. Some casinos are seeing steady revenues, but others are dying. Las Vegas gaming revenues fell 26% in October.

Still others are just now getting into the game, such as Ohio.

But think BIGGER. Tie this into underlying shifts in awareness. Planetizen tracks a wide range of urban development issues. Planetizen’s What We Really Need to Learn from Las Vegas, a review of the recent Alternet article, Leaving Las Vegas: Are Americans Ready to Put Cataclysmic Consumption and Hedonism Behind Them? focuses on key issues beyond who gambles with their money:

“Las Vegas has always epitomized American excess. But with its water supply running out and its constant illumination warming the planet, it also represents the extent of our economic and ecological unsustainability.”

North America Casinos
click for map

I posted two articles last year on the water economy in Peter Panepento’s great blog, GlobalErie, Correct Thought: Are There Silver linings In Our Water Supply, and More on Less Water.

Look at the map of droughts in the U.S. There’s an obvious reason why more folks around Las Vegas are thinking about water.

There are many more canaries to watch. We’ll discuss some of them as we go forward, but it’s more important now to jump into practical issues for you, your family and your business.

WHERE IS THE UNIVERSE MOVING US AND WHAT ARE THE PRACTICAL IMPLICATIONS FOR YOU?

We have one more stop to make before identifying specific opportunities being brought by the changes. Come back at 5 pm today (Eastern time) for Understanding the Big Economic Picture – Debt and Money.

Until then, be well.

Sincerely,

David VanAmburg

The story of the photo above

As we are gripped by the world’s daily events, we tend to lose the anchor of our surroundings and history. We’re told that the hills of Pittsburgh, Pennsylvania were created by glaciers passing over the land. The topography has left much of the urban city forested. My son, David D. VanAmburg, has lived in Pittsburgh for many years, walking,  exploring and photographing the largely lost paths, walkways, parks and cemeteries throughout the hills of the city. This photo is from a path overlooking Arlington Ave. in the city’s south side.

global trends: industry upheavals

CANARIES GALORE

We all know the story of the coal miners who would take a canary in a cage with them as they entered mine shafts. If the canary died, it indicated oxygen depletion and acted as a warning to the miners to move quickly to avoid their own deaths.

The livelihoods of real people and their families are at stake with every loss of a job, but if watch the big picture, we see interesting changes.

The adult sex industry has been the bulwark of Internet revenue and growth since nearly the beginning. Now CNN reports that the porn industry is asking for a handout.

“Hustler publisher Larry Flynt and Girls Gone Wild CEO Joe Francis said Wednesday they will request that Congress allocate $5 billion for a bailout of the adult entertainment industry.”

FORGET YOUR RELIGIOUS OR POLITICAL PERSUASIONS FOR A MOMENT…

Yes, you legitimately ask, “Where’s my bailout?!!”

But what a perfect foil against which to discuss the real changes occurring before our eyes.

An industry that is contentious grows within a  society – tobacco, armaments, alcohol, etc. Through the market, society supports it. It is a reflection of the level of consciousness of the nation or the world. It provides lots of jobs and businesses make a lot of money.

Some people think the industry in question is not life supporting, but it becomes strong and entrenched. It plays its political cards well and governments support it.

Its opponents fight it. They raise millions to defeat it. They advertise, they lobby, they fail.

THEN THE UNIVERSE MOVES

This does not imply that any business that needs support during a crisis is involved in questionable or contentious activities. But to witness the porn industry’s revenues suddenly dry up enough to bring it to  its knees in front of politicians and media is revealing.

The public request for subsidies from any industry indicate an underlying failure.

The wonderful edifice created by the financial industry had convinced most everyone – the populace, pundits, academics and politicians – that the financial industry is too big to be allowed to fail. Similarly, many large corporations have grown through effective capturing of monopolies, manipulation of legislation, etc. Yet our national and global focus has been on them, not on small to medium businesses.

WHAT ARE THE CANARIES TO WATCH?

There are so many. Come back at noon (Eastern time) today, and we’ll chat about the first group, alternate government taxes and their revenue trends. Then at 5 pm Eastern, we’ll focus on debt and money, before sharing some of our projections for the big picture – where things are headed.

And very quickly, we’ll focus on specific opportunities for you and your organization. Times of change are usually the consultant’s nirvana, because change means opportunity. You can expect more opportunities than you can dream of.

Be ready.

David VanAmburg

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