A look at successful Internet business models

Some of the Internet's most successful business models have grown from almost nothing to being economic giants in the world economy.

Google - basically a search engine - has become a huge business earning millions of dollars in profits. Examining Google closely reveals that the company offers a range of services. Most of these are free. Every webmaster and blogger is familiar with Adsense which provides web site owners with the opportunity to add advertising to their site. This is supplemented with Adwords - a facility for businesses to advertise on a wide range of websites that publish relevant material. Both of these services use the key word concept. Advertising relates to the content of the page on which it is placed. Advertisers only pay for actual clicks on the adverts. Google also offer referral ads where payment only becomes due on a successful subscription.

One of the oldest Internet businesses is amazon.com. Originally known as Internet sellers of books, amazon.com now sell a whole range of products. Many of their sales come from the many affiliate sites that advertise and promote their products. At the beginning of its life, Amazon.com was able to offer its products at lower prices than retail outlets. There was no need to hold large amounts of stock, to maintain showrooms and so on. Their prices are still competitive and amazon.com now supplies books, CDs, DVDs and a range of other products at the click of a mouse. Amazon.com entered the Internet with its then new marketing and sales strategy before the Internet had become an acceptable medium for purchasing goods and services.

Some of the biggest Internet money spinners are on-line casinos. Many of these operate illegally and their trustworthiness may be questionable. These simply produce casino games in electronic form that allows punters to play anything from blackjack and roulette to a whole range of slot machines. With costs much lower than in a plush walk-in casino and the odds very firmly in their favour, on-line casino's are a huge success in the Internet business.

Porn sites also have a ready audience. Many curious viewers are able to enter this world through the privacy of their own computer.

Dating sites have also become successful. Free membership is offered allowing for the posting of a profile and photos. The member can browse through the other members' profiles and select favourites. But if the member wants to contact another member then a subscription is required. The subscription income is supplemented by advertising. Some dating sites rely purely on the advertising revenue and do remarkably well!

These are just a tiny selection of successful Internet business models. Others include Ebay where members can buy and sell goods and services using an on-line auction mechanism, Yahoo which is similar to Google in many ways. There are even blogs that achieve financial success even if these are only a fraction of the bloggers on the Web. Advertising for most is essential - often using Google as the medium. Many recruit affiliates to bring the traffic and achieve sales.

Many other models exist and Internet scams abound. But it seems that all successful Internet businesses have one thing in common - heavy traffic to the site.

Should employers monitor employees' Internet use?

Employers are often faced with a difficult choice. Allow free access to the Internet to employees, or monitor usage to prevent abuse - a practice that discourages employees from using the Internet at all. One of the big advantages of allowing free access is that the Internet is a great source of information. Information that could be put to good use in the workplace. These benefits are hardly recognised.

There is no doubt that many emplyees abuse the free use of the Internet. Visits to porn sites, on-line gambling or just pointless surfing for hours on end.

The Internet has a wealth of information available on almost any topic. Information on industries, trends, best business practices, how others have solved similar problems and so on. Internet monitoring inhibits access to useful information as much as it prevents abuse.

Even where non-work related usage is concerned, there are many instances where using the Internet is more time-efficient than the alternatives. Does it really matter if the employee looks up the TV schedule on the Internet rather than referring to a newspaper or magazine? Or booking movie or theatre tickets, ordering products and services or on-line banking? Doing these on the Internet is very time-efficient and avoids the need for trips out of the office to achieve the same thing.

Then there is Facebook. Does it really matter if employees are messaging through this at work? Perhaps there could be some work related benefits? It probably uses less time than the inevitable long phone calls to and from friends and family.

Obviously, the expectation of responsible usage must be encouraged. Surfing should not be at the expense of getting work done. But there must be other ways of achieving a responsible attitude. Better leadership by management. Incentives. Productivity targets. Giving more responsibility to the employees. The relationship between employer and employees should be one of trust. Performance evaluation should be based on outputs. If the outputs are good then why worry about Internet usage?

In an age where empowerment has become a major buzz-word employees are being given more power to control the way they work and how they achieve their work related objectives. Empowerment means treating employees as adults. How can this be achieved if we treat them like children?

Willing to kill for the cause

The president of the ANC Youth League, one Julius Malema, recently made a speech in which he said that he was willing to "kill for Jacob Zuma". The result was quite a furor. The Human Rights Commission solicited a promise that he wouldn't use the term "kill" again. All the while, Julius has protested his innocence. It wasn't meant literally. It was quoted out of context. But he has steadily defended the statement nonetheless.

But the problem does not end there. Having promised not to kill in the future, he has come out with a new term. Eliminate. The counter-revolutionary forced must be eliminated. No, he didn't mean kill. He meant Removed. But just how does he propose to eliminate these counter revolutionary forces?

In Julius Malema's view of the world, a counter revolutionary is an opponent of Jacob Zuma. The definition included many in his own party. It includes the official opposition and all the other smaller parties represented in the South African parliament. Who is left? How will they be removed? Or eliminated? Will he use a third force? What will he do when the purge is over?

HEaring such language from a party that produced such men of integrity and peace is disturbing. Perhaps the party is over. A new breed that do not share the same ideology are emerging. Where will it end?

When is it possible to resolve major national problems through dialogue?

After being ruled by a ruthless minority for 42 years, South Africa did the unthinkable. Nelson Mandela spoke to the oppressor. The ANC engaged in a dialogue with the National Party government - its long standing deadly enemy. The National Party talked to the ANC that had been banned for many of those years.

Deadly enemies got around the table and talked. The talking continued for the next four years resulting in a constitution that enshrines human rights and democratic elections. This was the South African miracle. Peaceful change.

Across the border to the north of South Africa, Zimbabwe is ruled by no less than a tyrant. Zanu-PF seem to believe that they have the G-d given right to rule rule forever. The democratic voice of the people has been swept aside, and Mugabe has stolen the election.

Around the world there have been calls for increased sanctions and other punitive measures. But the South African government has opposed these. Instead it is promoting a dialogue. Both sides are being encouraged to sit down and talk. They site the South African experience as a precident. But has Mugabe given up the right to a negotiated solution?

But can there be hope for a solution through dialogue when one side wants to hold all the cards? Many attempts at dialogue have failed. But there have been successes. Could the crisis in Zimbabwe be solved by talking, and when does talking become appeasement?

How to cut down on living expenses or how to survive a tough economy

Times are tough. Tighten your belts! The advice of financial advisers rings out loud and clear. Reduce debt, reduce living expenses, and tighten your belt.

The ever increasing prices of fuel and food have wreaked havoc in households around the world. The cost of simply driving to work and feeding the family has created a shortfall in disposable income that makes it difficult to keep up with car and mortgage repayments. South Africans have to face another negative financial pressure. The central bank has responded to these inflationary pressures with repeated increases in the rate of interest. It has certainly become much more difficult for the average man and woman in the street to make ends meet. How can ordinary people survive these extra costs? Already tightly squeezed, is it possible to cut living expenses even more?

What if your belt is already on the last notch? The solution is simple. Add another notch. You always wanted to be thinner. Right?

Luckily, many of us have quite an affluent lifestyle (even if we don't realise it!) so the possibilities of cutting back are abundant. We don't often realise that many regularly used items add very little value to our lives. Identify what is important and plan around keeping these.

Some years ago the local press reported widely on a prominent business woman that killed herself and her children. She had suffered a major financial setback and was about to lose her multi-million dollar home. She could not face the prospect of this loss. What she didn't realise is that money and material things come and go. Would a smaller home in a cheaper neighbourhood really have spelled the end of the world?

As long as your health is intact and you have a strong resolve to live, it is possible to recover from almost anything. Even if you don't make a full financial recovery, life can still be rich and rewarding.

Cutting down on living expenses is an option that is open to almost everyone as a solution to financial setbacks and hard times. The objective in cutting back must be to achieve the greatest possible saving by cutting back on items that don't really affect our lifestyle.

To begin, draw up a list of everything that you spend on a month to month basis. Identify the shortfall or the required saving. Examine your budget closely. What do you spend each month on sweets, crisps, fizzy drinks and cakes? Many people are taken aback when confronted with the monthly total. Smoking can be a huge expense both on a daily basis and in the long term in terms of our health and related expenses.

Review your alcohol spending. Alcohol can be a major drain on the household economy. No suggestion that you eliminate it altogether, but consider cutting back. Lunches at work can add up to a considerable sum. Consider making packed lunches instead.

Of course fuel is one of the growing expenses on our day to day lives. Limiting the fuel that we use is a priority. Plan your journeys to include everything that you need. Avoid unnecessary repeat trips to the shops and rediscover the joy of walking. Learn how to drive more economically, and make sure that your tires are inflated correctly.

There could be a lot of scope to reduce your electricity bill. Simply switch off whatever you are not using including lights, appliances and the computer. Swap your light bulbs for energy efficient equivalents that use about 10% of the power requirements. Small savings can add up to major savings over the course of a month.

Consider cutting back on entertainment. Cable or Satellite TV are expensive options. Frequent take-away meals may save on effort, but cost much more than a home cooked meal.

If these measures are not enough, then consider changing your accommodation. Could you live more cheaply elsewhere? Consider exchanging the fuel guzzling vehicle for a more economical model. Perhaps if you move closer to work you could also save on fuel. But these items are last resorts.

Avoid cashing in your investments unless doing so would eliminate debt. Eliminating debt can usually lead to a lower cost lifestyle and provides the opportunity for further investment. If you can pay off the home or car loan by cashing in investments then go ahead. The payments that are eliminated can be used to fund new investments in a fairly short space of time.

Cutting down on living expenses may appear to be totally impossible at first glance. Focus on what is important to you and what can be eliminated. Giving up unnecessary spending may be all that is required. Debt elimination can help a great deal towards solving financial problems. In some cases it will be necessary to make drastic changes, but do this only once you have thoroughly reviewed and adjusted your daily spending habits.

Will higher education or work experience get you ahead faster in your career?

A higher education is a key to success both within and outside of the corporate world. Some qualifications are highly sought after and rewarded. A professional degree is particularly valuable. An accounting degree leading to the professional chartered accountant qualification is particularly valuable. An MBA degree has been known to propel individuals from middle management to executive level in record time.

Work experience can and does help to move a career forward. Sometimes it is highly recognised, and there are times when an academic institution will award a degree for work experience. We've all heard about the office-boy that makes it to CEO, but this is the exception that proves the rule.

Education has almost become a necessity to advance a career. A bachelors degree, masters degree or MBA have become prerequisites for a range of jobs or occupations. A hundred years of working in the medical field is not enough to make you a doctor.

A friend and colleague worked his way through the corporate ladder to a position of Assistant General Manager over the course of twenty years. Once the company showed signs of being in trouble he was one of the first to be retrenched. He struggled to find alternative employment.

By contrast, an actuarial student entered the same business and even before completing the qualification began a rapid career rise. Within a year of qualifying, he was a general manager.

Of course a qualification in itself is no guarantee of career success. The corporate world is a very political place and you need to be a political player to climb the ladder. Other factors are at play. Performance on the job is crucial. But as a rule, those that are able to use their education effectively in their work are more successful than people that simply rely on work experience.

The value of education as a key to success is sharply evident when we look at the various professions - accountancy, law, actuarial science. A newly qualified chartered accountant can earn double the national average salary within two years of qualifying. Actuaries are amongst the highest earners in the world.

Perhaps the most important consideration is in the transferability of the skills. Twenty years experience and climbing the corporate ladder in one country does not make it easy to obtain another job. A professional qualification is a much greater help.

Do great writers rely more on effort or insight?

Good writing requires effort. The process of producing great writing may differ dramatically from one writer to the next. One will write in spurts and grind to a halt. Another will just carry on until the work is completed. Some may battle from sentence to sentence. The process of writing itself - particularly great writing - is a creative process. The creative process does not require effort. The creative process needs insight and inspiration.

The creative process is governed by the right hemisphere of the brain. When the right brain activity comes to the fore, the creative process becomes more or less automatic. Picasso often said that he allowed his hand to do the painting. The less thought he applied, the better the work. The right brain must be freed to produce the work.

My best work (no, I'm not suggesting that I am a great writer!) happens as a flow. When in a creative frame of mind, the effort is minimal. My best work has all been produced in this way. Once I have sufficient knowledge about the topic the effort becomes minimal. There is a difference between different types of writing - creative, academic, or writing for articles that are aimed at providing knowledge or a skill. It is when the left brain thought processes interfere that my writing suffers.

The effort required in writing lies in the development of writing skills. Learning and developing skills is a life-long process. Acquiring new knowledge, gaining insights into new topics, people and the world continues for life. This knowledge becomes internalised. Using the knowledge to write becomes a matter of intuition. Insights emerge as the creative process unfolds.

I know very little about the process followed by the great writers of the world. I can only guess at the creative process followed by writers such as Chekov, Jack London, Shakespeare or James Joyce. Reading War and Peace with its hundreds of characters and complicated story line leaves me with the distinct impression that Chekov just wrote from beginning to end. His internal knowledge of people, places and society - his vast insight - were enough to drive the entire process. Perhaps he mapped out the book before starting. Perhaps he planned the book's structure and outlined the story-line. Whatever the case, I imagine the words flowing directly from his mind to paper.

Artistic work relies on creativity. Creativity is governed by the right brain. When you start thinking too much the left brain takes over. The left brain is the logical side of the brain. We need it to function in the day to day world. When it comes to creativity the left brain has no idea. Writer's block is often a result left brain interference. The writer knows what he wants to write, but the words just don't come out right.

One way of stimulating creative right-brain activity is to listen to music while writing. It works every time. Even business reports require an element of creativity. There may be a need for a major effort in terms of gathering information, weighing up the arguments and making appropriate recommendations. Similarly, fictional works may require much detailed research. Research requires effort. Research, investigation, information gathering all require skills that reside primarily in the left brain.

The information must be processed and turned into something that the reader will want to read. No matter how much left brain activity is required to gather the information needed to facilitate the writing process, the act of writing - or more particularly the act of great writing - is a right brain process. The major problem faced lies in making the transition. Once the left brain has been active it does not easily let go. It can bring together the information required for a technical report, but the words just don't sound right. The document becomes difficult to read. Being able to switch from left brain to right brain is something that a writer must do to produce good work.

Reading about the writing process recently, one writer described the process as follows. He writes the complete story in one process without a break. He then re-reads the piece, adds to it and perhaps changes certain parts. Correct any factual errors of changes in the story-line. The second re-reading looks at the more technical writing aspects - grammatical errors, spelling, detail. A process that is similar, if not identical, to mine.

Great writing has to rely on insight. Effort may be required in collecting information. But when it comes to the actual writing, too much effort can only hamper the process.