A Revolutionary Way To Achieve Wealth in Uganda

Contents Chapter #1 Foundation in Financial Intelligence.................................................................3 Chapter #2 The Four Ages of Humanity..............................................................................6 Chapter #3 The Really New Economy..............................................................................18 Chapter #4 Our Education system is Obsolete and expensive...........................................25 Chapter #5 Plan to Use Faster Words if you are to become Rich......................................33 Chapter #6 Cash flow Explained.......................................................................................36 Chapter #7 The Network Marketing Industry....................................................................54 Chapter #8 The Vehicle.....................................................................................................72 Chapter #9 Excuses......................................................................................................104 Chapter #10 Recommended Reading...............................................................................116

Nov 2009

Chapter #1 Intelligence

Foundation

in

Financial

Definition of Insanity Naturally, most if not all of us want and crave for something better. It is all part of us if we want a bigger car, a better house, buying good things for the family. We keep hoping for more but, in order to get what you dont have, you have got to do something you have never done before. That simply means: Doing the same thing over and over again YET expecting different results Albert Einstein As an employee, you cant stay at the same job forever and hope that a miracle will happen and your boss will suddenly give you a raise. You will be lucky that there is no downsizing in your company. Switching to another company will only provide a short term solution to a long term problem. Sure, you can take up a second or even third job, but do you have enough hours and stamina in a day to sustain it? The bottom-line: Trading time for money isnt wise financial sense in the long term. You keep on increasing the hours just to win the rat race, but at the end of the day, you are still a rat on the mill! Increasing your wages only puts you in a higher tax bracket. Your salaries increase but so does your expenses on your house and car. How will you invest in yourself when all the time you spend working for a company, working for the government paying taxes and working for the bank paying off your house and car? What if you fall sick and cant work tomorrow? Will the government take care of your family? I highly doubt so. So isnt it time you take your finances a tad more seriously? What Is Money? You see, there are many ideas of what people think money is. Some say it is a form of measurement. Yes, but a measurement of what? Wealth? In the olden days, people measured wealth by how many cows, sheep and horses they had. But do people measure wealth today by your cows and horses? How about slaves? Was there a time where manpower is considered a hot commodity? Are slaves worth anything today? Are your dollar bills sitting in the bank going to protect you if a recession strikes the country? No, wealth can not be measured by the dollar bill.
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Some say it is a form of power. Yes, money can give you power, but if you are stuck on a desert island forever with a trillion dollars, will that money mean squat to you? If someone offered you water and a helicopter to fly out of there, you would trade all your money in a split second, so money is not an accurate measurement of power it heavily depends on how and wisely you use it (hint!). Many believe it is the root of all evil and several others take on this belief without much questioning. Now, now, now money is NOT the root of all evil (otherwise, why do you think churches still accept monetary donation and charity?). The love of money is the root of all evil. Remember, money is an excellent servant but a terrible master. If you are trading your life away for the dollar, money then has power over your time and life. And unless you have proper financial intelligence, the lack of money can spawn a lot of evil thinking and negative mindset as observed in primarily cheats, thieves, criminals, breakups, freeloaders, cheapskates, and more to name. But what is money, really? Money is an idea, backed by confidence. While money has naturally been developed by merchants in the older days to replace the questionable barter system, money today is literally invented by the rich and wealthy. Entrepreneurs are willing to part with their money to buy other peoples time. Other peoples time i.e. employees and self-employed people becomes their employers asset and the employers this priceless resource to go on to create more wealth for themselves. And heres the thing: as long as you work for money, you are enslaved by it! 80% - 90% of the populations today are being enslaved involuntarily. Later I will be explaining how this involuntary slavery begun. What we dont realize is that there is a part of our soul that cannot be bought at whatever price. Would you chop off your little finger if your boss offered you 24 months of your salary immediately? You and I know we are worth more than that. But when you hear of cases of people selling their body parts for cash in some countries, we can have our eyeballs pop out of our eye sockets. On the other hand, we occasionally DO sell out a part of ourselves for money like a donkey and a carrot.

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Awareness before Change Now dont get me wrong: Im not banging on working at a job (I worked at one before I became an Entrepreneur). But lets face it: our needs today are growing more than ever before in any period of history. Prices go up, salaries dont. There are more baby boomers than ever and have very little pension to show for their decades of years of work efforts. And there is no guessing to how many people really, really hate the unhealthy, hectic lifestyle of getting up early, coping with stress for most parts of the day, join traffic jams every mornings and evenings, spend more money and time in traveling, enjoy very little rest, and repeat the viscous cycle for 45 years. Definitely doesnt paint a nice financial and lifestyle picture, huh? The first step to change is to be aware of the problem. Awareness before change (or ABC for short) is necessary if you are to make any changes in life to start taking control of your financial life and then get out of the rat race. We need the awareness to know what state we are in so we know where we are going. Did you know which Age you are in? Are you in the Agrarian Age or Industrial Age or Information Age?

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Chapter #2 The Four Ages of Humanity

These have been four economic ages of humanity
1. The Hunter-Gatherer Age. During this period nature provided the wealth.

Tribes followed herds or searched for food. If you knew how to hunt and gather you survived. If you did not, you died. The tribe was social security. Socioeconomically, everyone was even. The chief didnt have a higher standard of living than the rest of the tribe. He may have eaten first and had more wives, but basically, fire was fire and a cave was a cave. In terms of money, there was only one class of people. Everyone was poor. 2. The Agrarian Age. Once humans learned how to plant seeds and domesticate animals, land became the wealth. Kings and queens owned the land, and everyone else worked on the land and paid a tax to the royals. That is why real estate strictly translated means royal rode horses and the peasants walked. That is why the word peasant is a derivative of many words broadly meaning on the land and on foot. Peasants owned nothing. Socioeconomivally, there were two groups, the rich and the peasants. 3. The Industrial Age. In 1402, Christopher Columbus and other explorers went in search of trade routes, land, and resources. To me, thats when the Industrial Age really begun. In the Industrial Age, resources such as oil, copper, tin, and rubber were wealth. During this era the value of real estate changed. In the Agrarian Age, land had to be fertile and able to grow crops or raise animals. In the Industrial Age, nonagricultural land became more valuable. For example, Henry Ford built his auto plant in Detroit because he could buy large tracts of rocky, unfertile, nonagricultural land for a great price. Today, industrial-use land has a higher value than agricultural land. Socioeconomically, a new class emerged, the middle class. There were now three groups of people: the rich, the middle class, and the poor. 4. The Information Age. The age officially started with the invention of digital computers. In the Information Age, information leveraged by technology is wealth, and very inexpensive and abundant resources, such as silicon, produce the wealth. In other words the price of getting rich has gone down. For the first time in history, wealth is available, affordable, and abundant for everyone, regardless of where he or she lives. Socioeconomically, there are now four groups of people: the poor, middle class, rich, and super-rich. Bill Gates is the most obvious example of the Information Age super-rich.

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Three Ages in summary In the Agrarian Age, the rich were those who owned a castle that overlooked large tracks of fertile agricultural land. These people were known as the monarchs and the nobles. If you were not born into this group, you were an outsider with very little chance of becoming an insider. The 90/10 rule (The 90/20 rule of money means that 10% of the people always made 90% of the money) controlled life. Therefore, the 10% who were in power were there because of marriage, birth, or conquest; the other 90% were serfs or peasants who worked the land but owned nothing. During the Agrarian Age, if you were a good, hardworking person, you were respected; the idea of being diligent was handed down from parent to child. It was also when the idle rich began to be loathed90% of the people worked to support the other 10%, who appeared not to be working; that idea was also handed down from parent to child. These ideas continue to be popular and are still handed down from generation to generation. Then came the Industrial Age and wealth shifted from agricultural land to real estate. Improvements such as buildings, factories, warehouses, mines, and residential homes for the workers were placed on top of the land . . . improvements. Suddenly, rich fertile agricultural land dropped in value because the wealth shifted to the owners of the buildings upon the land. In fact, an interesting thing happened. Suddenly, rich fertile land became less valuable than rocky land, where farming was difficult. Rocky land suddenly became more valuable because it was cheaper than fertile land. It could also hold taller building such as skyscrapers, or factories, and it often contained resources such as oil, iron, and copper that fueled the Industrial Age. When the shift in ages occurred, many farmers net worth went down; to maintain their standard of living, they had to work harder and farm more land than before. It was during the Industrial Age that the Go to school so you can find a job idea became popular. In the Agrarian Age, a formal education was not necessary since professions were handed down from parent to child; bakers taught their children to be bakers, and so on. Near the end of this era, the idea of a job, or the idea of one job for life, became popularized. You went to school, got that one job for life, worked your way up the corporate ladder or up the union ladder, and when you retired, the company and the government took care of your needs. In the Industrial Age, those not of noble birth could become rich and powerful. Rags-to-riches stories spurred on the ambitious. Entrepreneurs started with nothing and became billionaires. When Henry Ford decided to mass-produce the automobile, he found some cheap rocky land that farmers did not want near a small town known as Detroit, and an industry was born. The Ford family became, in essence, the new nobility, and anyone around them who did business with them also became the new, rich nobility. New names became as prestigious as those of
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kings and queensnames such as Rockefeller, Stanford, and Carnegie. People often respected as well as despised them for their great wealth and power. In the Industrial Age, as during the Agrarian Age, however, only a few controlled most of the wealth. The 90/10 rule still held true, although this time, the 10% was not determined by birth but by determination itself. The 90/10 rule held true simply because it took great effort and coordination as well as a lot of money, people, land, and power to build and control the wealth. For example, to start an automobile company or an oil or mining company is still capital intensive; it takes massive amounts of money, lots of land, and many smart formally educated people to build that type of company. On top of that, you often must get through years of bureaucratic red tapesuch as environmental studies, trade agreements, labor laws, and so onto get such a business off the ground. In the Industrial Age, the standard of living went up for most people, but the control of real wealth continued to remain in the hands of a few. The rules have changed. The 90/10 Rule Has Changed When the Berlin Wall came down and the World Wide Web went up, many of the rules changed. One of the most important rules that changed was the 90/10 rule. Although its likely that only 10% of the population will always control 90% of the money, the access or the opportunity to join that 10% has changed. The World Wide Web has changed what it costs to join the 10%. Today, it does not take being born into a royal family as it did in the Agrarian Age. It does not require massive sums of money, land, and people to join the 10%. The price of admission today is an idea, and ideas are free. At a later stage I will share an e-commerce idea. In the Information Age, all it takes is information or ideas to become very, very, wealthy. It is therefore possible for individuals who are financially obscure one year to be on the list of the richest people in the world the next. Such people often fly past individuals who made their money in the ages gone by. College students who have never had a job become billionaires. High school students will surpass their college student counterparts. In the early 1990s, I remember reading a newspaper article that said, Many Russian citizens complained that under the Communist rule their creativity was stifled. Now that Communist rule is over, many Russians citizens are finding out that they had no creativity. Personally, I think all of us have a brilliant creative idea that is unique to us, an idea that could be turned into an asset. The problem for the Russians, as it is with many citizens all over the world, is they did not understand the power of building a business that is purely information aged. I think it is very important that we teach more individuals to be entrepreneurs and how to take their unique ideas and turn them into businesses that create wealth. If we do so, our prosperity will only increase as the Information Age expands around the world.

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For the very first time in world history, the 90/10 rule to wealth may no longer apply. No longer does it take money to make money. No longer does it take vast tracts of land or resources to become rich. No longer does it take friends in high places to become rich. No longer does it matter if your relatives came over on the Mayflower; it does not matter what university you went to, or what sex, tribe, race, or religion you are a part of. Nowadays, all it takes is an idea, and as they say, Money is an idea. For some people, however, the hardest thing to change is an old idea. There is an old truth to the saying You cant teach an old dog new tricks. I think a more accurate saying is: You cant teach someone who clings to old ideas new tricks, regardless of if they are young or old. So when I am asked, What Internet company would you invest in? I still reply, Why not invest in your own Internet Company? I am not necessarily suggesting the askers start an Internet company; all I am doing is asking them to consider the idea, the possibility of starting their own company. In fact, many franchises and ecommerce and interactive marketing opportunities are now available on the internet in Uganda and the world at large, though these are regarded as scams or cults yet these are revolutionary new ways to achieve wealth. When people simply consider the idea of starting to build a business, their minds shift from hard work and physical limits to the possibility of unlimited wealth. All it takes is the ideaand we are in the Age of Ideas. I am not suggesting that such people quit their job and leap into starting a company. But I do suggest that they keep their full-time job and consider starting a business part-time in the new economy. The Challenge of Old Ideas In the stock market today you often hear announcers say, Old economy versus new economy. In many ways, the people being left behind are often people who continue to think in old economy ideas versus new economy ideas. What is right for you today could be wrong for you tomorrow? I have watched Amazon.com, a company without any profits or any real estate, grow faster and become more valuable in the stock market than established retailers such as Wal-Mart, Sears, J.C. Penny, and K-Mart. A new not-profitable Web retailer is perceived more valuable than Industrial Age retailers with solid profits, years of experience, massive real estate holdings, and more assets than any monarch of old. But the new web retailer is more valuable just because it does not require massive amounts of real estate, money, and people in order to do business. The very things that made Industrial Age retailers valuable in the Industrial Age are making them less valuable in the Information Age. You often hear people say, The rules have changed. I often wonder what the future holds for these older retailers and their investors as more and more Internet companies slice into profit margins, selling the same products for a lower price. In other words, although

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Amazon.com is not profitable today, it is cutting into the profit margins of companies that are profitable today. What will that mean to job security, pay raises, and benefits for employees and investor loyalty in the future? And what will happen to the value of real estate? Only time will tell. I believe that many of the new Internet companies will fold and investors will lose literally billions. They will fold because ultimately, profits and positive cash flow are how a business survives. But many Industrial Age companies will also fold because of price competition from these on-line retailers with no real estate. I recently heard an old-school retailer saying, We will make shopping an entertaining experience. The problem with such thinking is that making shopping an entertaining experience is expensive, and many shoppers will come to enjoy the experience but will still buy on line for a better price. I have a dear friend who has been my travel agent for years. However, she has to charge me a service fee to write my tickets these days because the airlines have stopped paying her a commission on ticket sales. She has had to release several of her loyal staff and now worries that I will shift to buying my tickets for a lower price on line. During this same period, a person who is not a travel agent and not regulated by the rules of the travel industry started an online company called Priceline.com. Suddenly, with the idea of auctioning off a perishable product known as an empty airline seat, Priceline.coms founder Jay Walker joins the Forbes 400 list of the richest people in the world. He does this in just a few years. So he becomes wealthy, and my dear friend lays off staff and counts on her loyal customers to stay with her because she will work harder and provide better service. I am sure she will do OK, but the business she started years ago as her retirement safety net has now become a full-time job with no assurance that it will be of any value whatever when shes ready to retire. Things Have Changed Since it does not take money to make money, then why not go out and make a lot of money? Why not find investors to invest in your idea so you can all become rich? The answer is because often, old ideas are in the way. As Merrill Lynch announced, The World Is 10 Years Old. The good news is that it is not too late to change your thinking and begin to catch up if you already have not started. The bad news is that sometimes, the hardest things to change are old ideas. Some of the old ideas that may need to be challenged are the following ideas that have been handed down for generations: Good, hard-working person. The reality today is that the people who physically work the hardest are paid the least and taxed the most. In fact hard work may get you killed. I am not saying not to work hard. All I am saying is that we need to constantly challenge our older thoughts and maybe rethink new ones. Consider working hard in a part-time business for yourself. Today, instead of being in just one quadrant(Employee or Self-employed or Business owner or Investor), we need to be very familiar with all four quadrants

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which generate CASHFLOW. After all, were in the Information Age and working hard at one job for life is an old idea and can get you killed through stress. 1. The idle rich are lazy. The reality is that the less you are involved physically in your work, the more your chances are of becoming very rich. Again, I am not saying to not work hard. I am suggesting that today, we all need to learn to make money mentally, not just physically. Those who make the most money work the least physically. They work the least because they work for residual income or passive income or portfolio income rather than earned income. And as you know by now, all a true investor does is turn earned income into passive and portfolio income. In my mind, todays idle rich are therefore not lazy. It is just that their money is working harder than they are 2. Go to school and get a job. In the Industrial Age, people retired at age 65 because they were often too worn out to lift tires and put engines into a car on the assembly line. Today, you are technically obsolete and ready for retirement every eighteen months, which is how fast information and technology are doubling. Many people say a student today is technically obsolete immediately upon graduation from university. You have to just deprogram and re-program yourself if you are to survive in the private sector driven economy. Now more than ever, School smarts with high academic IQ are important but so are street smarts with high financial IQ plus being practical, fast, and creative is even more relevant. 3. We are a self-learning society, not a society that learns from its parents (as in the Agrarian Age) or from its schools (as in the Industrial Age). Kids are teaching their parents how to use computers, and companies are looking for high-tech kids more than college-degreed middle-aged executives. To stay ahead of the obsolescence curve, continual learning from school as well as the street is vitally important. When I speak to young people, I advise them to think like professional athletes as well as college professors. Professional athletes know their careers will be over as soon as younger athletes can beat them. College professors know that they will become more valuable the older they get if they continue to study. Both points of view are important today. Have you notice that you cant help but get older physically, but that does not mean you have to get older mentally. If you want to stay younger longer, just adopt younger ideas. People get old or obsolete because they cling to right answers that are old answers. Today, I see so many of my friends falling behind financially simply because they fail to challenge their own ideas. Their ideas are often right answers that are very
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very old answers handed down for generations, from one economic era to another. Some high school kids plan on never having jobs. Their plan is to bypass the whole Industrial Age idea of job security and become financially free billionaires instead in this information age. I have a business partner who graduated in a Bachelors Degree in Telecommunications Engineering at Makerere University and he crossed over directly to the e-commerce and interactive marketing industry. Though, he has had a tough time explaining the e-commerce and interactive marketing industry business concept to his parents because the parents are Industrial Age fellows who still believed in the right answers that are old answers for today, get a job. But unfortunately to their surprise he had decided to do things in a completely different way which challenged their understanding. Todays thinking process is very different, and it may challenge some very, very, old right ideas. Those old ideas often make the process of change so difficult. I remember when I resigned from a job as a Finance Manager with an international NGO, my wife cried. She could not believe I could leave a safe and secure paying job to join a revolutionary new way of making money on an ecommerce platform. Following in Your Parents Footsteps Tom Peters, author of In Search of Excellence has been saying over and over again, Job security is dead. Yet, many people continue saying to their children, Go to school so you can find a secure job. Many people struggle financially simply because they have their parents ideas about money. Instead of creating assets that bought assets, most of our parents worked for money and then bought liabilities with that money, ignorantly thinking they were assets. For example a Ugandan goes for a salary loan from a bank to purchase a car or build a house and they call these their assets not knowing these are liabilities unless they generate positive cash flow. More than not knowing the definitions of words, using the wrong definition to a word is what really causes long-term financial problems. Nothing is more destructive to a persons financial stability than to call a liability an asset. Is this why many people go to school? And get good academic grades because that is what their parents did or advised them to do. Many struggle financially, or live paycheck to paycheck because that is what their parents did. If you try a very important exercise with your friends to compare what they are doing today to what their parents did or advised them to do. Many times, your friends realize that they are either following closely in their parents footsteps or are following their parents advice. At that point, they have the power to question these old ideas that have been running their lives. If a person truly wants to change, adopting a better idea is often a good idea. If you want to get richer faster, simply look for ideas that are better than the ones you are using today. To this day, I advice you to read biographies of rich entrepreneurs, listen to audio CDs of their lives, and listen to their ideas. Ideas
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need not be new; they just need to be betterand a rich person is always looking for better ideas. Poor people often defend their old ideas or criticize new ones. Only the Paranoid Survive Andy Grove, the chairman of Intel, titled his book Only the Paranoid Survive. He got that title from Dr. Joseph A. Schumpeter, a former Austrian minister of Finance and Harvard Business School professor. Dr. Schumpeter expressed this idea of only the paranoid surviving in his book Capitalism, Socialism, and Democracy. (Dr Schumpeter was the father of the modern study of growth and change in economicsdynamicsjust as Lord Keynes was the father of the study of static economicsstatics.) It is Dr. Schumpeters idea that capitalism is creative destruction; a perpetual cycle of destroying the old, less-efficient product or service and replacing it with new, more-efficient ones. Dr. Schumpeter believed that governments that allow the existence of capitalism, which tears down weaker and less efficient businesses, will survive and thrive. Governments that put up walls to protect the less efficient will fall behind. Today, people with old ideas are those who are falling behind the fastest, even though the world is only a little more than ten years old. The world we face today reminds me of the song The Times They Are Changing. A line from that song goes, For youd better start swimming or youll sink like a stone. Although that song was written approximately 40 years ago, it will reflect the next 40 years more and more. In other words, just because youre rich or poor today does not mean you will be in the near future. Your Past Success Means Nothing In the near future, those who do not risk failing will ultimately fail. The future belongs to the risk takers, not the security seekers. The poor look at failure as a noun, and the rich look upon failure as a verband that difference makes a big difference over a lifetime. In Future Edge, Joel Barker wrote, When a paradigm shifts, everyone goes back to zero. Your past success means nothing. In this fastchanging world, paradigms will be changing faster and faster, and your past successes could mean nothing. In other words, just because you work for a good company today does not ensure that it will be a good company tomorrow. For this reason, Grove chose the title of his book: Only the Paranoid Survive. Even employee benefits are changing. Not only has the Information Age changed the rules of retirement plans, the change from Defined Benefit Pension Plans to Defined Contribution Pension Plans, the change has also affected some employee benefits. Recently a friend who works for an airline said, It used to be easy to get free flights on airlines, which is one of the benefits of being an airline employee. But today, with airlines auctioning off empty seats on line, the planes are flying full and I find it harder to use a benefit I love.
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The Rules Have Changed Changes that were brought on once the Berlin Wall went down and the World Wide Web went up. In his book, The Lexus and the Olive Tree, New York Times foreign affairs columnist Thomas L. Friedman describes several changes between the Industrial Age and the Information Age. Some of the changes are: Cold War Globalization 2 1. Einsteins E=mc Moores Law During the Cold War, Einsteins theory of relativity E=mc2 ruled. In 1945, when the United States dropped the atomic bomb on Japan, America became the economic power of the world and took military dominance away from England. During the 1980s, everyone thought Japan was about to beat the United States economically, and the Nikkei stock market surged. But Japans period of economic dominance was short lived because the United States redefined itself. The United States redefined itself because it shifted from E=mc2 to Moores Law. Moores Law says that the power of the microchip will double every 18 months. Today, America is the leading world power because it leads in technology as well as weaponry. If America had remained in the weapons race only, it might have be a bankrupt nation like the former Soviet Union. When the Berlin Wall came down in 1989, Americas capital markets shifted quickly into the Information Age. That freedom to change quickly is the financial power provided by a free capitalistic society. Japan as well as England cannot change that quickly because both countries have too many ties to the days of the feudal systemotherwise known as the monarchy, an Agrarian Age institution. Unconsciously, those countries are waiting for the monarch to lead them. In other words, innovation is often hampered by traditions. That idea is true for individuals as well as nations. Old ideas get in the way of new ideas. I am not suggesting getting rid of old traditions, but rather that we are in the Information Age and so we need expanded ideas as well as old ideas. Cold War Globalization 2. Weight of missiles Speed of modems When the Berlin Wall came down, E=mc2 changed to Moores Law. The power in the world shifted from the weight of nuclear warheads to how fast your modem is. The good news is that a fast modem costs a lot less than big missiles; speed matters more than weight. 3.
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Cold War Two world powers in charge

Globalization No one in charge

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During the Cold War, there were two superpowers: the United States and the Soviet Union. Today, the web makes the idea of a borderless world and a global economy a reality. Today, the electronic herd, which is the thousands of fund managers who control great sums of money, have the power to affect world politics more than politicians. If the electronic herd does not like the way a country is managing their financial affairs, they will move their money elsewhere at the speed of light. That is what happened in Malaysia, Thailand, Indonesia, and Korea just a few years ago. In his book, The Lexus and the Olive Tree, a book I strongly recommend for anyone wanting to understand the new era of global business we are in, author Thomas L Friedman often makes reference to The Electronic Herd. The electronic herd is a group of several thousand, very often young, people who control great sums of electronic money. They are the individuals who work for large banks, mutual funds, hedge funds, insurance companies, and the like. They have the power with the click of their mouse to move literally trillions of dollars from one country to another country in a split second. That power gives the electronic herd more power than politicians. In South East Asia in 1997 when the electronic herd moved their money out of countries like Thailand, Indonesia, Malaysia, and Korea, virtually sinking those countries economies over night. It was not a pretty sight nor was it pleasant to be physically present in those countries. For those of you who invest globally, you may recall how most of the world, even Wall Street was singing praises to the new Asian Tiger Economies. Everyone wanted to invest in these countries. Then suddenly, literally over night, their world changed. There were murders, suicides, riots, looting, and a general feeling of financial sickness everywhere. The electronic herd did not like what it saw in those countries and moved their money out in a matter of seconds. Quoting from Thomas Friedmans book, he states: Think of the Electronic Herd as being like a herd of wildebeests grazing over a wide area of Africa. When a wildebeest on the edge of the herd sees something move in the tall, thick brush next to where its feeding, that wildebeest doesnt say to the wildebeest next to it, Gosh, I wonder if thats a lion moving around there in the brush. No way. That wildebeest just starts a stampede, and those wildebeests dont stampede for a mere hundred yards. They stampede to the next country and crush everything in their path. That is what happened to the Asian Tigers in 1997. The Electronic Herd did not like what they saw going on in the area and moved out literally overnight. It went from high optimism to riots and murder in a matter of days. The same thing could happen to any country. It is not the politicians that have the power today, as they did in the Industrial Age. In the Information Age, it is the power of global electronic money that often dictates a countrys affairs. Bill Gates crossed the border from the United States to Canada. When the customs agent asked him if he had anything of value to declare, he pulled out a stack of floppy disks wrapped in rubber bands. This is worth at least $50 billion.
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The customs agent shrugged, thinking he was talking to a nut and let the richest man in the world pass through the border without paying anything in taxes. The point is that the bundle of floppy disks wrapped in rubber bands was worth at least $50 billion. That bundle of floppy disks was the prototype of Microsofts Windows 95. Today, super-rich individuals like Gates often have more money and more influence over the world than many large nations. Such power caused the U.S. government, the strongest government in the world, to take Gates to court for monopolistic practices. When that case started, the frightening thing was that Gates could afford to hire better attorneys than the U.S. government could. That is because the U.S. government is an Industrial Age institution and Gates is an Information Age individual. Following in this line of thinking, George Soros wrote in The Crisis of Global Capitalism that many corporations had much more money and power than many Western nations. That means there are corporations today that could damage the economy of an entire nation just to benefit a few shareholders. That is how much power many corporations have. In the next few years, many changes, both good and bad, will occur. I believe that capitalism will be unleashed to its fullest extent. Old and obsolete businesses will be wiped out. Competition as well as the need to be cooperative will increase (e.g., there will be mega-mergers such as the one of AOL with Time Warner). Notice that the younger company buys the older one. These changes are all happening because the genie known as the internet (The Great Equalizer!) has been released from the bottle, The Internet doesnt care what you look like--whether youre young or old--- whether youre white or black--- whether youre a Ph.D. or a dropout none of those things are an issue online unless you choose to make them an issue. Like it or like it, its here in Uganda and e-commerce businesses that thrive on it are already rolling. The Good News The good news is that for the very first time, the 90/10 rule of the rich no longer needs to apply. It is now possible for more and more people to gain access to the great world of infinite wealth, the wealth found in information and leveraging your time and relationships and information is infinite, not restricted as land and resources were in ages gone by. The bad news is that the people who cling to old ideas may be brutalized by the changes upon us as well as by the changes yet to come. This Internet craze is much like the California Gold Rush of the 1850s. The only difference is that you do not need to leave your home to participate in it, so why not participate in it? For your information during any economic bonanza, there are only three kinds of people: those who make things happen, those who watch things happen, and those who say, What happened?

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Although I started with Einsteins Theory of Relativity as an obsolete idea from the Cold War, I also think of Einstein as a true visionary. Even then, he recognized an idea that is even truer todayImagination is more important than knowledge. The really good news is that for the first time in history, the Internet gives more and more people the ability to see the other side of the coin if they go there with open eyes. The other good news is that the Internet also makes it easier for more people to access a world of abundance that for centuries has been available to just a few. For the first time the Internet makes it possible for more people to have their financial dreams come true. Weve Only Just Begun Karen and Richard Carpenter sung a great song titled Weve Only Just Begun. For those of you, who think you may be too old to start over again, always remember that Colonel Sanders started all over again at 66. The advantage we have over the Colonel is that we are all now in the Information Age, where how young we are mentally matters, not how old we are physically. After all, Merrill Lynch reported, The world is 10 years old.

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Chapter #3 The Really New Economy

It is as easy to dismiss the new technology as superficial as it is to be seduced by what it seems to promise. The truth is in between. Some types of work will continue in the information age as they have always done, but some will go, never to return, many new ones will be invented. Town planners, architects and designers may use computers to turn theirs ideas into working models that they can walk through and round on screen, but there will still be town planners, architects and designers in twenty years time even if we call them by more grandiose names by then. I was trained as an architect, a young woman told me, but now I call myself a space therapist. More importantly, we have been given a whole new way of doing things and are only at the beginning of the long string of possible effects which will significantly change the way we work and do business. In that sense, the Internet may yet live up to the hype and turn out to be one of those disruptive technologies that change the world for ever. The only challenge in this New Economy is that everything is going to be invisible. So if you a pure Buganda and believe in this saying Amaaso gomuganda gali mungalo. Sorry for you because the monies to be made in this new economy are de-materialized in form of e-cards or you can call it electronic money. The first of those changes is already here. The middles of the different industries are disappearing. The industry, in which I am most closely involved, publishing, is one example. At present there is a long chain of processes and organizations between me, the author, and you, the reader. There is also, usually, the authors agent and then the publisher. The publisher in turn, once the book is edited, employs a designer and a printer to produce a finished article. The finished book then goes to the warehouse of a distributor or a wholesaler and thence on to a bookstore, where, hopefully, someone will buy it and read it. Everything in that chain of distribution is now in doubt apart from the beginning and the end, the author and the reader, but how the first connects with the second is now open to a wide range of options. We could dispense with the physical bookstore, the option focused on by Amazon.com and its imitators. The publisher could choose to bypass wholesalers and bookstores, virtual or physical, and publish electronically. Or, if I was intrepid enough, as the author I could bypass the lot of them and put my words on a website for anyone to download for a fee. Any information business is now prone to a disappearing middle. Travel agents, the intermediaries between the traveler and the travel companies, are unnecessary now that you obtain all the information that they have by clicking a few keys yourself. For example buy your e-ticket and also check in online.
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Newspapers and news bulletins may not be needed, are already not used by many when you can get the news, packaged as you would like, more immediately, on your own screen, even on your mobile phone. For example log on to www.monitor.co.ug or www.newvision.co.ug to get a copy of that days news package. The whole television industry is about to experience or has already experienced disintermediation with the arrival of two hundred or more channels to choose from and the PVR or Personal Video Recorder that records hundreds of hours of your favorite programs and then reply them at a time of your choice with or without ads. The music industry is another example. It fears that its CDs, which form the middle between the recording studio and the listener, will no longer be bought now that anyone can download their favorites from the internet via Gnuttella or one of its successors for free, swapping their recordings directly with unseen friends. The process now has a generic name P2P, or peer-to-peer. P2P is yet another of those disruptive technologies that could rip the heart of more industries. The free World Dial-Up project links private telephones across the world. You dial locally, the system routes the call via the internet to the other country where someone elses private phone makes another local call to the number you want. You will have made an international call for the price of two local ones, both of which could, in certain countries, be free. How, then, will telecom companies make their money? The disappearing middles continue. Stockbrokers arent needed any more now that you can buy and sell your own shares directly from your computer or your phone. Auction rooms will go the way of stock exchanges, moving on to the screen. Maybe even doctors will become unnecessary if we find it easier to describe our symptoms to an anonymous website and get back an authoritative diagnosis that would allow us to obtain prescribed medicines or hospital appointments. Politicians will find that national parliaments get squeezed out between more powerful local assemblies and the growing importance of regional economic blocs. The consequences of a world that is increasingly virtual to governments such as National boundaries will slowly erode, losing their importance, along with national parliaments, in a more virtual world. For example if I download something from my computer I have no idea what country it is coming from. What, then, is the meaning of the territorial rights clause. They will squeal loudly about the loss of national sovereignty as it happens but disintermediation is one of those unintended but inevitable consequences of the way the new technologies push everything to be more global, losing the middle in the process. The most intriguing, and important, disappearing middle may be the banking system. Smart cards called ATMs are already creating a form of private
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money. Many companies operate credit schemes cheaper and better than banks. Private clearing systems, some of them already in existence, would, as David Howell points out in his book The Edge of Now, remove the need for central banks to hold reserves in order to settle interback transactions. Economics out of control? Will these central banks have any function in future other than to hold a periodical meeting to decide the level of interest rates? Thinking radically, almost everyone could be thought of as an intermediary between the source and the ultimate customer. Almost every job could be part of a disappearing middle in the next few years. With all the information in the world at your fingertips there is no limit to the possibilities of computer-aided Do-ItYourself. Buy your car or computer on the web; sell your old one at one of the auction sites, no need to visit a dealer. Why then, will we need dealers at all? The disappearing middles continue to affect the tax collecting bodies. Income tax has traditionally been the easiest tax to collect, being done with the help of the employing organizations who deduct it at source. As more and more work gets contracted out to outsourced organizations via the web or to individuals working as independent contractors this free collecting agency will cease to be as useful. Countries like Italy have progressively moved from trying to tax invisible income to taxing the stuff that be seen and counted and, which, preferably doesnt move, such as a house. But property taxes have their limits, and sales taxes such as VAT are regressive. they hurt the poor more than the rich and inevitably they push up inflation, which hurts everyone. Politicians are getting cleverer at finding new stealth taxes in the new economy, the ones that no one notices at first, but they will have to get cleverer still, maybe by taxing those flows of electronic money through the banks and exchanges. But that will require international agreements to ensure that all countries use the same level playing field, as the jargon has it. More tax harmonization, in other words, between countries, is probably inevitable. Alternatively those politicians will have to find more ways to make paying taxes acceptable to us, possibly through hypothecation, an ugly word meaning that taxes are tied to certain uses. Income tax would be broken down into a health tax, an education tax, a police tax, a defence tax and so on. Governments hate hypothecation because it ties their hands and forces them to be the only way to extract money from us without an expensive and invasive use of electronic inspection of our money flows. It is not my intention here to reinvent the taxation system. I am using its future dilemmas in the information age only to illustrate how much society as well as business will be individualized in the world that lies ahead. Jobs have changed, too, as the organizations grapple with the consequences of those disappearing middles. The fact that already in Britain less than half the working population have full-time permanent jobs in organizations should alert us to the size of the changes that are occurring around us, even if they havent yet hit us personally.
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In the post-industrial societies work is hurriedly being reinvented. Employability means think like an independent and is understood as such by many of their staff. Flexibility means in your contract, that no one can guarantee anything for long. The jobs, even the fewer longer-lasting ones with the big organizations, will not guarantee the kind of retirement that our parents enjoyed. The new careers are already shorter. In France, for instance, only 38 per cent of men between the ages of 55 and 65 are in paid employment, and the figures are coming down to that level all over Europe. Proper jobs will end for most at 55, when with luck they will have another 30 years to live. To survive for the next 30 years, you neither your family cant even be sure to survive on your government safety net peanut pension most especially when it comes to the bureaucracy that you can not influence. No pension scheme, state or private, is currently able to provide a comfortable living for those extra 30 years. The hard or maybe the good, truth is that we shall have to go on working after the proper job ends, but it will be bits and pieces of work, collections or portfolios of work rather than the continuation of any proper job. The work will help to keep us healthy, useful and off the backs of the generation behind you who will be ill able to finance our so-called health bills and retirement, a word that itself may one day be extinct. Paradoxically, however, businesses are now worried that life outside their organizations is becoming so attractive to free and independent spirits that there is a real danger of losing their best and most innovative people. One time a chairman of a big multinational said, what worries me is that I cant see why any ambitious young person would want to join my company, or stay there for long if they did join because in the information age its ideas that are a major source of new wealth. How Are You Handling Change? I have friends who hate changes in fashion, music, and technology. These friends hate rap music, do not have a web-based business, and are glad that so many dotcoms failed. These are some of the same people who continue to believe in job security, government safety nets, and Medicare all Industrial Age ideas or promises. While there are people who fight change, there are others who run away from change. I have other friends who are actively searching for jobs that cannot be affected or threatened by the World Wide Web. One of them took a job as a teacher, not because he likes teaching kids. He took the job because he wanted a sanctuary from the changes going on in the world. He wanted a job where he could have job security and not be fired. The school system was his shelter from the world of change. Another friend bought a business that could never be affected by the Internet. She said, Im too old to learn how to do business on the Web so I want a

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business that is Web-proof. I dont have any money for retirement so my plan is to work until I am unable to work anymore. These examples show realities or contexts that are not changing with the times. These people will most likely fall behind in the ever widening gap between the middle class and the rich. The ship is leaving the dock for the land of greater opportunities, riches, and wealth and many people are choosing to be left behind simply because they are not able to change their mental context. They are stuck in a time that has passed, the Industrial Age. Are You Part of the Revolution? Great wealth, vast fortunes, and mega-rich families were created during the Industrial Revolution. The same is going on today during the Information Revolution. I find it interesting that today we have self-made multi-millionaires and billionaires who are twenty, thirty, and forty years of age; yet we still have people forty and over having a tough time hanging on to jobs. One reason causing this great disparity is the shift from the Industrial Age to the Information Age. When we shifted into the Industrial Age, people like Henry Ford and Thomas Edison became billionaires. Today, shifting into the Information Age, we have Bill Gates, Michael Dell, and the founders of the Internet companies becoming young millionaires and billionaires. These twenty-somethings will soon be passing Bill Gateswho is old at 39in wealth. That is the power of a shift in ages, the shift from the Industrial Age to the Information Age. It has been said that there is nothing so powerful as an idea whose time has come . . . and there is nothing so detrimental than someone who is still thinking old ideas. For you, this book may be about looking at old ideas and possibly finding new ideas for wealth. It may also be about a paradigm shift in your life. It may be about a transition as radical as the shift from the Industrial Age to the Information Age. It may be about you defining a new financial path for your life. It may be about thinking more like a businessperson and investor rather than an employee or a selfemployed person. It took me years to go through the phases, and in fact, I am still going through them. After reading this book, you may consider going through the same phases or you may decide that this developmental path is not for you. If you decide to embark upon the same path, how fast you choose to go through these phases of development is up to you. Remember that this book is not about getting rich quickly. The choice to undergo such a personal development and education program begins now with mental preparation. Are You Mentally Prepared to Be an Investor? Money will be anything you want it to be. Money comes from our minds, our thoughts. If a person says, Money is hard to get, it will probably be hard to get. If a person says, Oh Ill never be rich, or Its really hard to get rich, it will
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probably be true for that person. If a person says, The only way to get rich is to work hard, then that person will probably work hard. If the person says, If I had a lot of money, I would put it in the bank because I wouldnt know what to do with it, then it will probably happen just that way. Youd be surprised how many people think and do just that. And if a person says, Investing is risky, then it is. I warn you that the mental preparation needed to become a sophisticated investor is probably similar to the mental preparation it would take to climb Mt. Everest, or to prepare for the priesthood. All you have is hope and a dream of attaining great wealth. While many people dream of it, only a few achieve it. Think hard and prepare mentally because you are about to learn to invest in a way that very few people in Uganda have gotten to know. You will see the investment world from the inside rather than from the outside. There are far easier paths in life and easier ways to invest. So think it over and be prepared if you decide this is the path for your life. The Choice When it comes to money and investing, people have three fundamental reasons or choices for investing. They are: 1. To be secure, 2. To be comfortable, or 3. To be rich. All three choices are important. The difference in ones life occurs when the choices are prioritized. Most people make their money and investment choices in that exact order. In other words, their first choice when it comes to money decisions is security, second is comfort, and third is to be rich. That is why most people make job security their highest priority. After they have a secure job or profession, then they focus on comfort. The last choice for most people is to be rich. By the way most people dream of becoming rich, but it is not their first choice. For example only three out of a hundred people in America are rich because of this priority of choices. For most people, if becoming rich disturbs their comfort or makes them feel insecure, they will forsake becoming rich. That is why so many people want that one hot investment tip. People who make security and comfort their first and second choices look for ways to get rich quick that are easy, risk free, and comfortable. Editors of the UNDP, Uganda Country Human Development Report of 1998 rightly observed that, Unfortunately this population (Uganda) is characterized by a life that is seemingly void of direction and philosophical guidance and have a comparatively low want factor that makes them satisfied and comfortable with so little and not pursue higher levels of achievement I often hear people say, Id rather be happy than be rich. That comment has always sounded very strange to me since I have been both rich and poor. And in
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both financial positions, I have been both happy and unhappy. I wonder why people think they have to choose between happiness and being rich. When I reflect upon this lesson, it occurs to me that what people are really saying is that Id rather feel secure and comfortable than be rich. That is because if they felt insecure or uncomfortable, they were not happy. For me, I was willing to feel insecure and uncomfortable in order to be rich. I have been rich and poor as well as happy and unhappy. But I assure you that when I was poor and unhappy, I was much unhappier than when I was rich and unhappy. I have also never understood the statement Money does not make you happy. While there is some truth in it, I have always noticed that when I have money, I feel pretty good. The other day, I found a 10k note in my jeans pocket. Even though it was only 10k, it felt great finding it. Receiving money has always felt better than receiving a bill for money I owe. At least that is my experience with money. I feel happy when it comes in and sad when it leaves me. When it comes to money and investing, all three priorities are important. Which order you put them in is a very personal decision that should be made before beginning to invest. Putting to be secure as priority one or to be rich as priority one. Before beginning to invest, it is important to decide what your priorities are.

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Chapter #4 Our Education Obsolete and expensive.

system

is

Our current education system is the one thing that has remained the most mired in the past. The million dollar question is: Does school and universities prepare children for the real world? The answer seems to lie in the width and breadth of the meaning of the word academic. In the Oxford Advanced Learned Dictionary it means, not related to a real or practical situation; theoretical. It continues to say that it involves a lot of reading and studying rather than practical or technical skills. You must have heard at universities, statements like this academic year 2009/10 we had two thousand students enrolling. What is the problem here? The world these students will be joining soon is a social and of practical realities and not a theoretical world. This probably explains why highly educated professionals are not the richest men in the world because it is not academic success that counts. The Current educational system which has sunk so low is the British university system which historically has been the envy of the world. Unfortunately it teaches you to be an employee, a worker drone for the government and the rich people who want to leverage other peoples time in exchange for a paycheck every month. These systems were designed to fit the Industrial Age demands. During the Industrial Age many smart formally educated people were required to work in industries. But unfortunately the real world is no longer an Industrial Age place its an Information Age place. In the Information Age were the computer and the internet rule, a computer can solve all kinds of problems except the problem it instead created, the unemployment problem. So if you are still having Industrial Age ideas of go to school so you can find a job for life, work your way up the corporate ladder, and when you retire, the company and the government will take care of your needs through social security. Sorry! What is surprising is that the British were very first to see some of these challenges. When John Major became British Prime Minister, Parliament passed the further and Higher Education Acts, which allowed polytechnics to become universities. The British were wise and had already seen that the academic degree classification system had gone rotten It was just channeling more people into job seeking and not creators. Growing up, I was taught and conditioned to go to school and get a good job for a large company. Telling our children to Go to school, get good grades, and look for a safe, secure job with benefits is some of the most dangerous advice we could give them. The formula should instead be Go to school, learn to do math, read, write and learn how to broaden your career options
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Most people who follow that pattern of Go to school, get good grades, and look for a safe, secure job with benefits get into a position of dependency. In our case as Ugandans, we cannot exist in a mode of inter-dependence; instead we continue to be dependents. According to a World Bank Report launched in September 2009 at the International Monetary Fund offices in Johannesburg, South Africa, in a ceremony that was broadcast live through video conferences in selected African countries, the report called the Africa Development Indicators (ADI) 2008/09, focusing on the youth and employment in Africa says, Ugandas population also has the highest dependency ratio in Africa registered at 1:1. A sub-human condition that reduces us to second-class citizens of the globe, perpetual recipients of aid. This dependency habit is engrained in us right away from childhood to the extent that we as a nation survive on handouts like destitutes at least that is what the structure of our budget pronounces! This same report ranks Uganda, with the worlds highest youth unemployment recorded at 83 per cent between the ages of 15 24 years. We live in a system of dependence. We are conditioned to go to school and there after get a job, and the banks also teach us to get into bad debt: car loans, mortgages, credit cards . We are then locked into a lifetime commitment, locked into the system. Most people are trapped in the Rat Race for the rest of their lives! Because of the subconscious fear of failing that holds people back. Its this fear of failing that teachers used to motivate people in school. I remember my teachers saying to me, If you dont get good grades, you wont get a good job. Later in life, when the A students who got the high-paying jobs want to make career changes, their fear holds them prisoner. So they end up working for their employers, for the government by paying taxes, and for the bank by paying off a mortgages, car loans and credit cards. Have you noticed that its A students working for the C students or the illiterate owning businesses, and the B students work for the government? But its for hard for a C student to work for A student reason being a doctor or a lawyer need academically and professionally smart people around them. A doctor does not want a clumsy nurse nor does a lawyer want an incompetent paralegal. So the C students or school dropouts end up playing the richest game in the world called business and this is where the money is and not working for someone. However much you work hard for employment you can never be wealth but you can manage to become rich or make a living. You just have to come to peace with these facts. Wealth as defined by R. Buckminster Fuller, the number of days you can survive without working for money, while still maintaining your same standard of living.

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The wealth ratio is = Passive + Portfolio income = 1:1 Total monthly expenses When you have a ratio of 1:1 then you are wealth. Have you noticed there is no earned income in the formula? The rich ratio is = Earned income = 1:1 Total monthly expenses When you have a ratio of 1:1 its okay in the short term but then what if something goes wrong may be you are downsized or right sized or left sized or restructured or structural adjustments done or you retire or retrenched etc. so what happens? That is why they say a job is a short term solution to the real long term problems e.g. when you are aged. So basically you can only become wealth working for passive or portfolio income. An asset is something which puts money in your pocket whether you work or not. Assets include real estate, businesses, and paper assets. By definition a job is not an asset. Even many self-employed people do not own a business. They own a job. If self-employed people stop working, their income also stops or declines. Selfemployed includes all those working 8a.m. 5p.m. and they are part of the system. For example a doctor can drill in one mouth at a go and once he/ she goes home. The clinic has to be closed; therefore the system also goes home to sleep. So he/ she is the system. Unless there is a system which takes care of the business with or without him when he goes away. The employees and self-employed focus on earned income while the business people focus on assets which produce passive or portfolio income. A high paying job is not an asset because once you stop due to sickness or death, your salary stops immediately. Dr. Buckminster Fuller, Harvard university genius of our time, in his book Grunch of Giants he said, I believe it will make a little clearer how the game of money was stolen from the people, and shielded from discovery by our educational system. We are not taught to think for ourselves, we are taught to depend on others. Most of us dont have the time or resources to challenge this go to school and the job matrix, because we are locked into it! We get caught up and later we become comfortable thinking that this is the way it should be. Some people are so busy in their jobs, they cant let go of it long enough to enjoy their families, take a vacation, or just to smell the flowers. Have you wondered why, No one, on their deathbed, ever said: I wish I had spent more time at the office I am extremely concerned by the lack of financial education people receive in school. They have never had a course on wealth building, investing, taxes, accounting, business success, how compounding works, the perils of consumer debt, etc.
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Getting a good education and making good grades no longer ensures success in the real world. People are working harder and harder for a completely wrong income called earned income. Only to pay more taxes and end up in bad debt. There is no longer such a thing called job security anymore. Its completely obsolete because we are now living in the information age and not the industrial age were formerly educated people were needed and were selling like hot cake. You instead need financial security. How many millions of people are out there in the real world struggling financially? The world has changed, but our education system which is obsolete and expensive has not changed its approach to match the trends. The kind of education you receive determines your mindset and ultimately, your condition of life. Although the home still plays a big role in the education processes, in our modern times, the school is the major agent of mental conditioning it is the dominant shaper of your thinking. The mindset you acquire in school rules your world. To be in position to break free of this mental conditioning or programming you need to have courage to be a Calculative rebel. I believe that the reason why education is Missing the mark has much to do with the approach than the content. The approach is so theoretical yet the really world is practical and the school certificate is seen as the one-way ticket out of poverty and the curse of manual labor. By this standard, as Paul Harrison put it, investment in education is likened to buying an expensive lottery ticket, where predictable chances are more inclined to the losing side than not, it discourages creativity and adaptive thinking. Shut up! Do as you are told! Dont take the initiative, wait for instructions. Dont talk to your neighbor! Dont make any mistakes, or you are wrong, wrong, wrong! Also a recent survey commissioned by a top business organization supports the age old conviction that education is not a key in itself to prosperity, conducted by the Uganda National Chamber of Commerce and Industries in a period of two months between July and August 2009, the survey (Daily Monitor newspaper of 25th September, 2009 page 2) shows that out of every 100 successful business people in Uganda, at least 71 of them are school drop outs. According to Mr. John Ssempebwa, the chief executive officer UNCCI, educated people waste too much time in school and lack the shrewdness that propels school dropouts to succeed in the business world Mr. Ssempebwa also attributed the success of the so called un-educated to the fact that they are more practical compared to their more schooled counterparts who are more theoretical and recline after gaining employment but lack the motivation to create employment. Mr. Gordon Wavamuno, another successful businessman threw his weight behind results of the
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survey and said People who have succeeded in business in this world have never been academics. Succeeding in business depends on someones in-born intelligence that is why presidents from many countries are not doctors or have no specific profession but they know how to run their countries, Most teachers have been groomed to see themselves as pump attendants at a petrol station whose task is to fill the empty hands (tanks) of students with academic content and see them off; they dont see students as human beings who come to learn and who have an experience in life. Teachers perceive themselves as experts hired to fill empty containers, not as people experienced in facilitating learners to manifest their own potentials so as to develop them. In short, we have an education system that emphasizes how many papers one accumulates rather than how one can develop and skillfully put to use his or her natural inherent potentials. How can educationists connive with parents to use intimidation in the name of discipline then we hope to get products that believe in themselves and are creative enough? No wonder they prefer being self-willed slaves in foreign lands than being called educated refugees or hewers of wood in their own motherland. As a fresh school leaver, you soon learn about the huge difference between real life in the real world and the artificial life you lived at college. Whereas the skills you needed to thrive while at school were basically memory and the ability to reproduce what your academic masters expected of you, this is what they call programmed learning or compartmentalization of knowledge right from an early stage. In Oxford Advanced dictionary, programmed learning is a method of study in which a subject is divided into very small parts and the student must be successful in one part before he or she can go to the next part. So basically school programs you slowly until you get ready to be employed. E.g. a doctor will have to go through our educational system popularly known as the 7+4+2+5 inherited from the British comprising of seven years of primary (The word primary means ranked as most important), six years of secondary (This is means less important than or subordinate to the primary), and five years of university to finally be programmed as a doctor at medical school. And basically what is the end product of that person? You become a doctor going to work for the government / private hospitals. This is okay but my argument is can we apply a multidisciplinary approach to learning. The educational system is usually a 7+4+2+3 and have you noticed that its the first 7 years that are most important. In these 7 years its basically reading and writing. You have heard words like that man is illiterate (an offensive term for people who are not able to read and write). Here in the real world the things you need most are read, write, creativity and being practical, that is it. So when you say, that gentleman is a school dropout. Be careful because he
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might have completed his primary school and guess what? He knows how to read and write. That is it. The most interesting thing is that majority of these school dropouts finished their primary. They just didnt complete their former education which was going to channel them to a specific career path. E.g. becoming a lawyer, accountant, doctor and etc. If you have noticed the western worlds educational philosophy takes a multidisciplinary approach and to them its the primary stage which is so important, once done depending on the childs interest they will be channeled to that area. E.g. Tiger woods began playing golf when he was still very young, talk about the late Michael Jackson. But here in Africa, you get to see an early talent in your child to be a musician, instead of harness that talent, you just cripple it because you think since you a well known doctor specialized as a gynecologist around town, then your children should also become the same. How stupid of you! These formerly educated people were needed in the Industrial Age, though we still have the post Industrial Age going on but soon we shall be fully into the Information Age and all these formerly educated people wont have jobs. Because what the computer and the internet have done is to solve all problems except one problem they instead created, the unemployment problem. Where we used to have ten people working, now we have one person doing the work and how much is a computer any way, say $500 compared to the monthly salary of ten people for forty years until they retire. Ideally if it were you the owner of the company what would you prefer? Ten people who even make mistakes, very expensive to maintain in form of Medicare, lunch at office, making unnecessary telephone calls, office space in their cubicles, giving excuses all the time, then you pay 10% Social Security for them. The computer does not require Social Security which is a safety net you just have to backup your information, no lunch, no monthly pay, it does not give excuses all times because its garbage in, garbage out, it does not require a Human Resources Manager to be monitored, it wont require salary increment at the end of each year and other compounded benefits. In the real world, loaded with uncertainties, there are no ready made answers and nobody can claim to be in possession of the marking scheme you invent answers to specific situations at specific moments of which each is largely unique. The answers you leave school will fast become obsolete as soon as you exit the gates of your university. To fit in the real world, you have to deprogram and reprogram yourself. That is the way things work out here my friend. I continue to see many people seeking out more advanced degrees. Here is an excerpt from Fortune Magazines article on the 40 richest people under 40 years The MBAs dont fit into the (Silicon) valley scene. MBAs are traditionally risk-averse. The reason most people go to business school is to ensure getting a six-figure job after graduation. Morons! I love this. People have not yet wakened up to notice that the world has long changed from the Industrial Age to the Information Age.

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In the information age, personal capability and competencies will take over as the main sources of personal security; not contracts, appointment letters or academic qualifications. The Job Security mentality is a liability for both the organization and the individual. Its a word that is soon becoming extinct. Lets talk about this thing called employment. Its funny that when people reach a certain age, such as after graduating college, they assume its time to go out and get a job. But like many things the masses do, just because everyone does it doesnt mean its a good idea. Somebody gives you a job. You may get lucky enough to get a couple of promotions, which comes with all the busy work so you become Mr or Mrs. busy being busy to the extent that you have no time to listen to what the world has to offer in form of business opportunities, no family time, you actually leave your house at 6a.m. and return at 11p.m. And you are so comfortable because there are compounded benefits such as vehicle, credit on your phone, air conditioned office, housing allowance and others. Since when did comfort and luxury become the chief requirements of life! You retire on a peanut Social Security/ pension (In Oxford Advanced it means money that the government pays regularly to people who are poor, unemployed, sick etc. to live on) This money is just for living on purposes. It cant even cover your day to day normal requirements, so you embark on soliciting support from your working sons and daughters (You actually see them as an investment made, so its time to reap) who have again preferred the same 45 years plan in a rat race infrastructure forgetting that they also have a life to live when still young, so you end up going to the village very frustrated and where life is cheap, and you die shortly afterwards with just enough cash to cover the funeral bill. This is what we call 45 years plan dead end. Former USA Pres. Bill Clinton said Life is organized backwards. You spend the best years studying, and then working. When you retire at 60, you are too old to enjoy it. People should retire between the ages 21 and 35, and then work like HELL till they die. Not everything that can be counted counts; and not everything that counts can be counted. - Albert Einstein. Just because academic grades can be counted does not mean that they matter most. And because there are no mechanisms to measure and count what people have learnt outside the formal curriculum does not mean that it does not count. In fact, it counts most in real life. The challenge is, are we going to spend our lives in school where we are only judged by what can be counted (theoretical degrees) or shall we spend it in the real world where the uncountable counts more than the countable? I am not advocating for the de-Schooling of society. I know that going to school is of such great value and indeed a human right. But I quickly caution that the school can also be a place where human beings are slowly and unknowingly reduced to a sub-human level. The said fact is that our educational system seems to produce robot like and automated students who cannot think outside the box.

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You are a genius We all know people who are academically brilliant, but who have no social skills at all. These people do not succeed in the competitive world of business where cooperation from others is essential. In short, the world is full of geniuses who cannot even earn a living. In the real world, intelligence is a way of behaving, not IQ (Capacity to think and memorize). If you behave intelligently, you are an intelligent person. If you behave as a fool behaves, then you are a fool even if you have two university degrees. If compared to our own presidents in Uganda its interesting! a) You look at a man from Lango, some delicate of a man, school dropout, former sugar cane cutter. This fellow who is a school dropout, no degree, no nothing, and in 1962 he makes history, Ugandas most glorious moment, Ugandas glorious hour, finest moment in Ugandas history. He crosses the threshold from colonialism to independence. This scraper looking fellow from Lango, whether you like him or not he took that moment. When there were professors, doctors and brilliant people like you. This fellow crosses and he got there. b) Then we got a village buffoon, semi-literate, idiot, emerges from Arua and he puts in eight years un interrupted., primary four man, straddles this wonderful country with the Harvard of Africa, with people like us, who make wonderful speeches at seminars, speaks Queens English. This village idiot surfaces and rules this country of intelligencer for eight an interrupted years. c) A professor who is a chairman of African universities, the first vice chancellor of the Harvard of Africa, he rules only for 68 days. d) A brilliant lawyer, the first Queens Counsel, New York lawyer, first talking, Queens English, he rules for only eleven months. e) And the other fellow surfaces again (Lango guy) and he says where did I leave you. You better follow me. That one puts in another five years. f) A young man, who is tired, worn out, bleeding, very young with a degree in one arm and a gun in the other. He crisscrosses from Dar la salaam through Luwero and he puts in twenty years and he says he is still going to give you a little more for as long as it takes. In short what does this explain to you as far as Academic IQ is concerned?

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Chapter #5 Plan to Use Faster Words if you are to become Rich

If you plan on creating a plan to retire young and financially free, you may need to update your vocabulary, and if you change your vocabulary, you may speed up your ideas. For example: Slow Words Fast Words High-paying job Cash flow from assets (Or when someone finds you on the streets of Kampala and they ask where you work than what business you are doing) Finding a high-paying job may seem like the fast way to get rich at the start when you have finished studies, but in most cases it is the slow way to become rich in the end of your life. In fact, very few people ever become rich via a job even a high-paying one. Slow Words Fast Words Save money Make money Focusing on saving money takes too much of your time and there is not enough leverage in saving money. The money most people save is after-tax money. On top of that, the interest that you earn on your savings is also very small a percentage. If I were a doctor who had to personally work to get paid, then I would be a doctor who worked for money. If I were a doctor who invented a new medicine and sold it in the form of a pill through pharmacies, that pill would be a form of the doctor making money rather than working for money. In summary, working for money in most cases is slow, and finding ways to make money can be much faster if you know what you are doing. So if your plan is to work for money and then try and save money, then you may be swinging in a wrong direction. Slow Words Fast Words Avoid risk Gain control Thats too risky or play it safe or why take the risk. The more you believe in these ideas, the more you loose control over your financial life. By saying that investing is risky remember it isnt the investing that is risky, it is the investor who is risky! A final word on risk vs. control: The more a person seeks security, the more that person gives up control over their life. Today there are two worlds evolving. One is the world I call the Responsible Society. It is the group that believes in being responsible for their lives and the ultimate outcome of their lives. The second one called the Victim Society which is the group that believes that someone else, a company, or the government is responsible for their lives. I have found that one of the dividing factors between both societies is their core view on the ideas of risk
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vs. control. Victims tend to want to give control over their lives to someone else in order to avoid taking risks. Then they get angry when they feel someone abuses the control they granted the abuser in the first place. On other words, victims are often victims of themselves. Slow Words Fast Words Go to school Go to seminars You go to school if you are expecting a promotion and want to be a better employee or better professional person such as a doctor, lawyer, or accountant. If you dont care about degrees, promotions, or job security, then you go to seminars. Seminars are for people who want better financial results than a job promotion or increased job security. Guess what? Making a million dollar is not academically oriented. Make peace with this fact right now A JOB WILL NOT MAKE YOU WEALTH. No matter how good the salary. It is not about how hard you work because it stops immediately after you have stopped working. Hard work may kill you instead. One of the big differences between those who go to school and those who attend seminars is again the difference between context and content. I have noticed that when a person who attends schools asks a person who attends seminars, What did you get from the seminars? the person who attended the seminar is often not able to explain what he or she got. The reason is, many seminars are more contextexpanding than content-increasing. A person who has just had his or her context expanded often cannot say specifically what he or she got. A person who is school oriented (Professional student), a person who would rather remain an employee, often cannot understand such vagueness. There are completely and totally different ingredients to making a million dollar but not academically oriented. A person who wants their context to remain the same, and only seeks to have his or her content increased, will not understand a person who is happy to have their reality expanded and is still waiting for the new content to appear. People wanting only content often become very upset if they have their context messed with. For example this information you are reading now must have messed up some of your content. You are wondering and confused, how come you didnt know this before. Probably you were working within the context of a job and go to school for additional qualifications (Masters Degree, PhDs). You didnt think that there were better alternatives of getting back your life in a faster and in a smarter way in the Information Age. The good news is that both can get ahead, regardless if what they seek. Yet the person getting ahead the fastest is the person who seeks to have both his or her context expanded and content increased. More than just Definitions A person who uses poor words has poor ideas, and hence a poor life. Take a moment to think about the profound difference just knowing the difference
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between the three types of incomes that is earned, portfolio, and passive income that has made on my life and many other lives. They are relatively simple words, but just knowing the difference can make a big difference in your life. If you want to change your financial future, one of the most important and inexpensive steps you can take is to know the definitions of words you use seriously and getting to know other investment hip or hype type jargon. The reason as to why I am throwing around this jargon is to enable you the reader to improve your financial vocabulary and not an attempt to sound intelligent. It will also help you to understand why you have been required to wake up every morning and go to work (earned income). But to fully improve your vocabulary, it is also important to know more than just the definition of the word. In my opinion, it is important to also make that word a part of your life and your reality. For example, when I say the word passive income I say it with passion because it is an important part of my life. Passive income means as much to me as pay raise means to many employees. The reason I am not passionate about a pay raise is because a pay raise for me would be income without much of a future. In summary, if you want to retire young and financially free, take the time to constantly up-grade your financial vocabulary and always remember that words are tools for the brain and that there are fast words and slow words to wealth

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Chapter #6 Cash flow Explained

ONCE UPON A TIME LONG, LONG AGO, two ambitious young cousins named Pablo and Bruno lived side by side in a small Italian village. The young men were best buddies. And big dreamers. They would talk endlessly about how some day, some way, they would become the richest men in the village. They were both bright and hard working. All they needed was an opportunity. One day that opportunity arrived. The village decided to hire two men to carry water from a nearby river to a cistern in the town square. The job went to Pablo and Bruno. Each man grabbed two buckets and headed to the river. By the end of the day, they had filled the town cistern to the brim. The village elder paid them one penny for each bucket of water. This is our dream come true! shouted Bruno. fortune. I cant believe our good

But Pablo wasnt so sure. His back ached and his hands were blistered from carrying the heavy buckets. He dreaded getting up and going to work the next morning. He vowed to think of a better way of getting the water from the river to the village.

Pablo, the Pipeline Man Bruno, I have a plan, Pablo said the next morning as they grabbed their buckets and headed for the river. Instead of lugging buckets back and forth for pennies a day, lets build a pipeline from the river to the village. Bruno stopped dead in his tracks. A pipeline! Whoever heard of such a thing? Bruno shouted. Weve got a great job, Pablo. I can carry 100 buckets a day. At a penny a bucket, thats a dollar a day! Im rich! By the end of the week, I can buy a new pair of shoes. By
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the end of the month, a cow. By the end of six months, I can build a new hut. We have the best job in town. We have weekends off and two weeks paid vacation every year. Were set for life! Get out of here with your pipeline. But Pablo was not easily discouraged. He patiently explained the pipeline plan to his best friend. Pablo would work part of the day carrying buckets and then part of the day and weekends building his pipeline. He knew it would be hard work digging a ditch in the rocky soil. Because he was paid by the bucket, he knew his income would drop at first. He also knew it would take a year, possibly two, before his pipeline would start to pay big dividends. But Pablo believed in his dream, and he went to work. Pipeline in Progress Bruno and the rest of the villagers began mocking Pablo, calling him Pablo the Pipeline Man. Bruno, who was earning almost twice as much money as Pablo, flaunted his new purchases. He bought a donkey outfitted with a new leather saddle, which he kept parked outside his new two-story hut. He bought flashy clothes and fancy meals at the inn. The villagers called him Mr. Bruno, and they cheered when he bought rounds at the tavern and laughed loudly at his jokes. Small Actions Equal Big Results While Bruno lay in his hammock on evenings and weekends, Pablo kept digging his pipeline. The first few months Pablo didnt have much to show for his efforts. The work was hard even harder than Brunos because Pablo was working evenings and weekends, too. But Pablo kept reminding himself that tomorrows dreams are built on todays sacrifices. Day by day he dug, an inch at a time. Inch by inch its a cinch, he chanted to himself as he swung his pickax into the rocky soil. Inches turned into one footthen 10 feetthen 20100. Short-term pain equals long-term gain, he reminded himself as he stumbled into his humble hut exhausted from another days work. He measured his success by setting and meeting his daily goals, knowing that, over time, the results would far exceed his efforts. Keep your eyes on the prize, he repeated over and over as he drifted off to sleep accompanied by the sounds of laughter from the village tavern.

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Keep your eyes on the prize Completed pipeline The Prize The Tables Are Turned Days turned into months. One day Pablo realized his pipeline was halfway finished, which meant he only had to walk half as far to fill up his buckets! Pablo used the extra time to work on his pipeline. The completion date was advancing faster and faster. During his rest breaks, Pablo watched his old friend Bruno lug buckets. Brunos shoulders were more stooped than ever. He was hunched in pain, his steps slowed by the daily grind. Bruno was angry and sullen, resenting the fact that he was doomed to carry buckets, day in and day out, for the rest of his life. He began spending less time in his hammock and more time in the tavern. When the taverns patrons saw Bruno coming, theyd whisper, Here comes Bruno the Bucket Man, and theyd giggle when the town drunk mimicked Brunos stooped posture and shuffling gait. Bruno didnt buy rounds or tell jokes anymore, preferring to sit alone in a dark corner surrounded by empty bottles. Finally, Pablos big day arrived the pipeline was complete! The villagers crowded around as the water gushed from the pipeline into the village cistern! Now that the village had a steady supply of fresh water, people from the surrounding countryside moved into the village, and it grew and prospered. NO YES

Once the pipeline was complete, Pablo didnt have to carry buckets anymore. The water flowed whether he worked or not. It flowed while he ate. It flowed while he slept. It flowed on the weekends while he played. The more the water flowed into the village, the more the money flowed into Pablos pockets! Pablo the Pipeline Man became known as Pablo the Miracle Maker. Politicians lauded him for his vision and begged him to run for mayor. But Pablo understood that what he had accomplished wasnt a miracle. It was merely the first stage of a big, big dream. You see, Pablo had plans that reached far beyond his village. Pablo planned to build pipelines all over the world!
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S S

S S

Recruiting His Friend to Help The pipeline drove Bruno the Bucket Man out of business, and it pained Pablo to see his old friend begging for free drinks in the tavern. So, Pablo arranged a meeting with Bruno. Bruno, Ive come here to ask you for your help. Bruno straightened his stooped shoulders, and it pained Pablo to see his old friend begging for free drinks in the tavern. So, Pablo arranged a meeting with Bruno. Bruno, Ive come here to ask you for your help. Bruno straightened his stooped shoulders, and his dark eyes narrowed to a squint. Dont mock me, Bruno hissed. I havent come here to gloat, said Pablo. Ive come here to offer you a great business opportunity. It took me more than two years before my first pipeline was complete. But Ive learned a lot during those two years! I know what tools to use, where to dig. How to lay the pipe. I kept notes as I went along, and Ive developed a system that will allow me to build another pipelineand then anotherand another. I could build a pipeline a year by myself. But that would not be the best use of my time. What I plan to do is to teach you and others how to build a pipeline and then have you teach othersand have each of them teach othersuntil there is a pipeline to every village in the regionthen a pipeline to every village in the countryand eventually, a pipeline to every village in the world! Just think, Pablo continued, we could make a small percentage of every gallon of water that goes through those pipelines. The more water that flows through the pipelines, the more money that will flow into our pockets. The pipeline I built isnt the end of a dream. Its only the beginning! Bruno finally saw the Big Picture. He smiled and extended his callused hand to his old friend. They shook handsand then hugged like long-lost friends.

Pipeline Dreams in a Bucket-Carrying World

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Years passed. Pablo and Bruno had long since retired. Their worldwide pipeline business was still pumping millions of dollars a year into their bank accounts. Sometimes on their trips through the countryside, Pablo and Bruno would pass young men carrying water buckets. The childhood friends would pull over land tell the young men their story and offer to help them build their own pipeline. A few would listen and jump at the opportunity to start a pipeline business. But sadly, most bucket carriers would hastily dismiss the notion of a pipeline. Pablo and Bruno heard the same excuses over and over. I dont have the time. My friend told me he knew a friend of a friend who tried to build a pipeline and failed. Only the ones who get in early make money on pipelines. Ive carried buckets all my life. Ill stick with what I know. I know some people who lost money in a pipeline scam. Not me. It made Pablo and Bruno sad that so many people lacked vision. But both men resigned themselves to the fact that they lived in a bucket-carrying worldand that only a small percentage of people dared to dream pipeline dreams. WE LIVE IN A BUCKET-CARRYING WORLD Who are you? A bucket-carrieror a pipeline builder? Do you get paid only when you show up for work like Bruno the bucket carrier? Oh do you do the work once and get paid over and over again like Pablo the pipe line Builder? If youre like most people, youre working the bucket carrying plan. Its the timefor-money-trap. The problem with bucket is that the money stops when the bucket carrying stops. Which means the concept of secure job or dream job is an illusion. The inherent danger of carrying buckets is that the income is temporary instead of on going. If Bruno woke up one morning with a stiff back and couldnt get out of bed. How much money would he earn that day? ZERO! No work-no money

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The same goes for any bucket carrying job. Once bucket carriers stop carry buckets for any reason, they wont continue to get paycheck. REAL LIFE TRUE STORY My previous dentist was the best dentist I ever had. A complete professional. Great personality. Great technician, every visit was virtually pain-free. She loved what she did and set her own hours. She was only open 3 days a week so she could spend four-day weekends with her family. She pulled down more than $100,000 a year working three days a week at a job she loved. This was a bucket carriers dream job if there ever was one! One problem. Before the age of 40 she developed arthritis in her hands and couldnt work any more. Today she teaches at the university earning one third the income she earned as a dentist. Theres no such thing as secure bucket carrying job no matter how great it seems. The problem with the time for money trap is that if you can no longer trade-thetime, you no longer get the money Most people mistake bucket carrying for pipeline building. We assume 99% of the people in the world are carrying buckets, so we assume bucket carrying is the way to get what we want in life. We grow up surrounded by bucket carriers, so we figure thats the way of theworld. It reminds me of pamper sticker I saw recently: 100,000 lemmings cant be wrong. People think the same way about bucket-carriers.100 million bucket-carriers cant be wrong. Well yes they can! Lets face it. There are a lot more bucket-carriers in this world than pipe line builders. Why Because bucket carrying is the model that our parents followed and the one that they taught us to follow. The bucket- carrying model tells you heres what you do to get ahead:

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Go to school and learn how to carry buckets. Work really hard Earn the right to carry bigger buckets. (Get promoted) Resign from Bucket company A to work for Bucket company B which lets you carry bigger buckets. Work long hours so you can carry more buckets. Put the kids through bucket carrying college. Try to get promoted from carrying metal buckets..to carrying plastic buckets. to carrying digital buckets. Dream of the day you can retire from bucket carrying after 30-40 years Until then, keep carrying those buckets..or, the bucket carrier dream comes true. you hit the big lottery!(the odds are one in about 14-15 million against them, but most all bucket carriers think it could happen to them, sountil then, keep carrying those buckets) What do all those bucket carriers earn for their efforts? Surprisingly little. According to Parade magzineswhat people earn survey, the average worker in America earns$28,500 a year, subtract almost 20%for taxes, and that leaves $22,500 take home pay. Lets face it thats not enough for most people to live on. What do bucket carriers do when they need more money? Because they have a bucket carrying mentality, they come up with a bucket carrying solutionif you need more money youve got to carry more buckets. Ill get second job carrying buckets in the evenings and on weekends Daddy Bucket carrier decides. I can go to back to bucket carrying job I had before the kids were born, Mommy bucket carrier says. The kids can get bucket carrying jobs after school and in the summer. They both say. The results? To day North America work the longest hours in the world. Yes even more than the work obsessed Japanese, they earn more money-by- carrying- more -buckets
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Plan working? No. Here are the facts Consumer debt is at record high. The average house hold has 95 cents worth of debt for every dollar earned. The proportion of women working to support their families more than doubled over the past 20 years. More people are taking second and third mortgages on the single biggest asset.. Their homes to pay the bills. Hello whats wrong with this picture? Its the fallacy of carrying bigger buckets. Bucket carriers tell them selves every thing would be okay if they could just carry bigger buckets. Bucket carriers are forever wondering how much money other bucket carriers earn. True, the doctors bucket is bigger than the cooks bucket..About ten times bigger! But that doesnt mean the doctor is financially independent. He is just as dependent on his bucket carrying job as the cook Why? They spend more, Truth is, the doctors and lawyers making six-figures are spending most of their income to support their lifestyles. a. The average worker drive a $5,000 used car. The doctor drives a $45,00Lexus. b. The average worker sends his kids to free public schools. The doctor sends his kid to a private school.and on and on The doctor spends just as much of the percentage of his income than all other bucket carriers. All are living paycheck-to paycheck. If you dont believe check the bankrupts records. Youll see every kind of bucket carrier listed in there. All Buckets Eventually Dry Up All buckets dry up no matter how big they are. Pipelines, on the other hand, are self sustaining. But pipelines require sacrifice. Pipelines dont build themselves. You have to be willing to put in the time and effort to build them. A Bigger Bucket wont solve the Problem. Why? Carry as big a bucket as you can but build a pipeline on the side, because as long as you carry buckets, you have to show up to get paid, and no matter how big the bucket is..it will dry up!

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Many a person has gone from the Millionaire Next Door to the Bankrupt Person Next Door. This Person had a HUGE bucket and now has nothing! His name is Darryl Strawberry. Professional ball player. The 38 year old outfielder broke into the major leagues as a teenager and was hailed as the next Ted Williams! Strawberry has made a fortune in his career$2-$5million every year. That was just from his baseball contract! Add a couple million from endorsements, speeches, autographs and more and hes earned $50-$100 million before his 40 th birthday! Strawberries Didnt Field Forever A guy like that has to be set for life right? WRONG! According to a local newspaper report, Strawberry has no income or savings to support his current wife and their three children $100 million and not a thing to show for it. What Happened? He spent it Strawberry bought expensive everything..including drugs and alcohol. Strawberry dint build a pipeline..because he thought he had enough money to last forever no matter what. He cant play baseball anymore because of his drug problem. He wont be allowed to play ever again. He is Broke! Its your Turn to choose What sounds like the best plan to you? Remember, most of your friends and neighbors wont understand! They have been taught to carry buckets! Time levels the playing Field It doesnt matter how much money you earn.or how little money you earnwe all have the same amount of time in each day. 24 hours. It doesnt matter if you are a doctor, lawyer, or cook. It only takes time to build a pipeline. Yes you will need tools.but those will cost relatively very little. So everyone has an equal opportunity when it comes to building a pipeline! Some people put off building their pipelines because right now isnt a good time for me. Guess what? Right now is a bad time for everybody! We are all stressed. We are all busy. We are all putting out fires and dealing with unexpected emergencies. There is a word for these bad times.

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Its called Life! Some people waste their lives waiting for the Perfect time to do x, y, or z. Well, they will die waiting because there is no such thing as a perfect time. If someone told you they would give you $1million dollars if youd sit in a corner and knit for two hours every day for one year, youd find the time no matter what. Waste Not Want Not People often ask me why they should take the time to and effort to build pipelines when things are not going so bad for them right now. They say they deserve to relax in the recliner and watch a TV after a hard days work. Got a few bucks in the bank..kids are doing well in schoolno need to rock the boat. This story illustrates the difference between an active and passive income. Here's a more detailed comparison: Active Income: 1. Time + Effort = Money. You get money proportionate to the amount of time you put in. 2. No work, no pay (except for limited paid leave). 3. No security. 4. Small risk. 5. Not paid what you're worth (your boss uses your time to make a profit). 6. You usually start earning immediately. Passive Income: 1. Time + Effort + System = Profit. You use a system to provide money even when you're not working. 2. Youre still earning when you're not working, because the system pays you. 3. More security. For your income to fail, your system has to fail. It's as secure as you make it. 4. Sometimes a higher risk, but the only real risk is you. 5. Paid what you are worth. The more productive you are, the more you are paid. 6. It usually takes some time to build a good passive income, but once it's there, it's hard to get rid of it. There are sub-divisions to each of the income types: Active Income: -Employees. -Self-employed individuals. Passive Income: -Big Business owners. -Investors.

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Employees Most of the people of the world fall into this category. These are people who offer their time and expertise to someone else in exchange for money. It is a way of providing a living for your family, and rightly so. Many people will never go beyond this position. Now, just to be clear: Employees include everyone from the gardener and janitor, right through to the managers and directors! They are all giving their time away for someone else to use, and get paid peanuts for doing so. The only difference is the size of the peanuts! When you look at the corporate structure you can see that there really is no difference the director can lose his job just as easily as the janitor (actually the janitor's job is better protected than the director's in the Ugandan context). I know it might sound harsh, but you can never earn what you rightfully deserve from a normal job. There are simply too many people who need to make a living off what you do. They all need a piece of the pie. That's why salaries get bigger as you move up the corporate ladder more of the people below you are spending their time working for you, earning you money, and in reality the owners and investors are reaping all of the benefits. Some characteristics of the Employee income level: 1. A part from paid leave, you are paid for what you put in. 2. A part from paid leave, you are on a no work, no pay system. 3. No security. You can lose your job at any time due to downsizing (and don't be fooled into thinking the owners and investors suffer because of this, in fact the company's share value will probably increase when they downsize). 4. Low risk. Actually, this is open for interpretation. I have a friend who started working for a company, did his 3 months probation, and just as he was employed permanently the company downsized, leaving him with no job after just a few months. I might also mention that he is a highly-qualified individual! In my opinion a job is a higher risk system than most of the other systems, because usually it is putting all your eggs in one basket. It is quite safe in terms of a comfort zone, though like we already said, you are not paid what you are worth. 5. You start earning money immediately, usually from the first Friday or monthend after you started working. This is probably a benefit however, in the business world you can start earning even more money, and on the same day that you start working. Self-employed individuals I sub-divide this level into two further levels: 1. Professional self-employed individuals. These are professional people who have qualified themselves in a certain field that almost demands for them to become self-employed. This includes medical doctors, lawyers, private investigators, etc.
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2. Qualified self-employed individuals. These people have learned certain skills through formal or informal study, and they started out as normal employees, but they soon got disgruntled by the workplace and started dreaming of the romantic lure of their own business. This includes computer technicians, electricians, plumbers, and practically any freelance professional or sole proprietor you can think of. It sounds very romantic to have your own business. However, just like being in love, where you eventually discover that the person you love is not so perfect and it takes hard work to keep the love relationship working, you soon discover that being your own boss simply means owning your own job. Though the income potential is much better for the individual than in a job (if you do things correctly), the negative side is the hours you simply have to work the extra hours. Usually it's exactly like Bruno in the story in the beginning of this chapter you have to work harder, put in more hours, pay an extra pair of hands to help you, and drop your prices to compete. Do not be fooled for some people it is great to have their own business, especially if they are doing what they love, but it is always a stressful, unstable environment, full of surprises and irritations. What's even worse is that many people take out a second bond on their home to pay for the business they often end up losing everything. Some characteristics of Self-employed income stream are: 1. The money you get is in exact proportion to the amount of hours you spend working. 2. No work, no pay (no paid leave). You are not leveraging off other people's time and relationships to earn you more money. 3. Low security. It takes a huge amount of marketing to build up a stable client base, and even that is never truly guaranteed. 4. Huge risk. Laying everything on the line to do your own thing can't be defined in any other way. The risk can be managed through smart thinking, though. 5. You are paid what you are worth. If you prove that you are worth 23 working hours per day, you will be paid that. If you manage to find enough customers. You could start earning big money immediately, or it could take months before you earn even one cent. It really is up to you. At this point it might seem to you like I'm negative about the level of Selfemployed people. On the contrary, it is a good system; I just believe that you should never keep all your eggs in one basket (like I said about the Employees, too). When we get to the practical steps, you will see how you can take some of your eggs and place them in different baskets to provide multiple income streams and a true passive income along with it.

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Big Business Owners Now we have moved to the first level of passive income. These are people who have often started out as Self-employed individuals, but they worked to get a system in place that would pay them even when they don't work (a pipeline). Usually, these are businesses that don't keep all their eggs in one basket. Let's take Microsoft, for example. They are a software company they sell computer software. They are a hardware company they sell computer hardware. And through licensing fees they earn a passive income from a few million, if not billion, computers around the world every single month. And who owns all of this and earns all of the money? Not the directors, but Bill Gates himself. Another example is MacDonald's. The owner of the corporation once asked a group of students what they thought his business was. They laughed at him I earn, everyone knows its hamburgers! He responded, No, it's not hamburgers. It's real estate. I own the best pieces of real estate in the world! And it's true think of every single MacDonald's restaurant you know; they are all on prime pieces of real estate! So while he earns an income from the hamburgers, he is also earning an income from the land on which the burgers are sold. That's the heart of Big Business. Big Business employs a feature known as networking. This involves networking with at least 500 other individuals or organizations in a conventional business setting, or far less when you are looking at a predominantly Internet-based business. These network relationships could be with employees, but usually the big businesses will have limited employees. They could also network with Self-employed individuals, in the form of contracts or retail agreements. Or they could network with other big businesses. I would like to use Microsoft as an example again. They have their staff, but you can't walk into a Microsoft shop to get the new version of Windows. No, you go to some other computer retailer and ask them for the product you need. In other words, Bill Gates doesn't need to pay the rent and salaries of a bunch of sales reps; he simply provides the products to the smaller businesses at a profit, and allows them to sell it at a further profit for themselves, thereby putting more money into his own pocket! Some characteristics of Big Business: 1. You use a system to provide money even when you're not working. These people can often go away for 6 months or more, never mentioning the name of their business, and still get a monthly raise while they are away! You're still earning when you're not working, because the system pays you. 2. More security. For your income to fail, your system has to fail. It's as secure as you make it (think multiple income streams). 3. Usually a higher risk, but the only real risk is you. If you do your homework properly and follow strict guidelines, there really is no risk. (This book does NOT make you an expert on Big Business!)
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4. Paid what you are worth. The more productive you are, and the more creative you are, the more you are paid. 5. It usually takes some time to build a good passive income; in his book Rich Dad's Cashflow Quadrant Robert Kiyosaki, the author of Rich Dad, Poor Dad, says that it could take around 5 years (once again, I believe that there are exceptions, especially for predominantly Internet-based businesses). But once the income is there, it's hard to get rid of if you manage it well. We will look at a few Big Business systems over the next two chapters. Investors This is the highest level of passive income. These are generally the people who supply the Big Business owners with the money to start their big businesses, and many big business owners are investors themselves. I'm not talking about unit trust investments and policies. I'm not even really talking about stock market speculators, most of whom are small-change when compared to the true Investors. I'm talking about people like Robert Kiyosaki, who earn millions from their investments. I'm talking about people like Donald Trump, who owns so much real estate that he probably doesn't even know about all of it. And I'm not talking just about real estate investment. The stock market, loan systems, banks they are all investment systems, and they are all available to anyone to start speculating. There are different levels of investment, but I'm not going to go into them all in this book. I would like to challenge your thinking, though. When most people think about investments, they think about their retirement plan, or their social security fund, life insurance, mutual funds, or some money they have saved in the bank. However, how about owning your own bank? What could THAT do for your finances? Now, I'm not about to tell you how to open up your own bank, but if you let your mind go, follow the principles I teach you in this book, and just be creative, you could definitely find a way to do that. As an investor, the more streams of income you earn from as many investments as possible, the higher your passive income; When you reach the point where you have multiple income streams from employees, self-employed businesses and big businesses, all paying you on a monthly basis, you can retire and do the things you always wanted to do. We will look at some practical first steps to investment at the end of this book. However, for now it is important to note that you should never invest in something you dont understand or that youre not passionate about. It is also important to look for professional advice when you start investing. We will look at some basic investment principles and first steps a little later.

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Some characteristics of investors are: 1. You use a system to provide money even when you're not working. They are often the people seen next to the pool at expensive holiday resorts, buying and selling investments over the phone. 2. You're still earning when you're not working, because the investments pay you. Your money is truly working for you. 3. More security. For your income to fail, your system has to fail. It's as secure as you make it (think multiple income streams through multiple investment types). Sometimes risk is involved, but the risk should be managed risk. 4. Paid what you are worth. The more investments you have, the more you are paid. 5. It usually takes some time. By the time you reach this point, you will have invested quite a good deal of money and time. You will have failed a few times, lost some money, and started over. All of this is part of the package. It's not failure 6. Its a learning curve. In Summary: Now you should be able to identify where you are financially, and also where you want to be. If you are having trouble identifying which level you are on, look at your five closest friends. What are they? That will probably be you as well. You see, one of the steps in changing your financial position is also changing the people you mingle with. Im not saying you should abandon your friends, but you should also start making friends with people who are where you want to be, or at least people who are also seriously on their way there and are ahead of you. The purpose of this book is to show you that it is possible to change your financial position. You can move from being an employee straight to being an investor if you want to. Or you can turn your sole proprietorship (small business) into a big business.

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Income type

Business type

Age

Challenges

Advantages

Earned

Employed, selfemployed, small businesses

Industrial Age

Portfolio

Paper assets e.g. Stocks, bonds, mutual funds & index funds

Industrial Age

Passive Residual

Real Estate Network Marketing/

Industrial Age Information Age.

1. You have no control. You can be hired and fired any time of the economy or season. You are not paid what you are worth but rather what the job is worth however much you may have Masters or PhDs. In fact you may be told that you are over qualified during the interview panel. 2. Highly competitive and the competition is based on academic papers and experience which is considered as added advantage. 3. No or less leverage. 4. Highly taxed. 5. The trouble with working at a job for money is that you have to start over selling your labor each and every morning. In most cases, your labor has no long-term residual value, if you are working for money. 6. The trouble with selling your labor for money is that there is only so much you can do. 7. Your job or profession is not something you pass on in your will to your children. 8. Its incremental 4%, 5% or at times its just linear in growth. 1. No control at all, some stocks go down. And sometimes the entire market goes down, as it did in the crash of 1929. But all of the wizards on Wall Street say that over time, investing in the stock market is the easiest and surest way to build a profit-pumping pipeline. The facts support the experts: During the 200-plus years the New York Stock Exchange has been in business, stocks have averaged going up two out of every three days. Since WWII, the stock market has gone up 71-fold, despite nine recessions during that 55-year span. 2. The earnings potential is limited. 3. The major flaw in paper assets is the lack of control; it is difficult and risky to apply leverage. 4. You cannot apply debt leverage because the Banks know that the stock market is just next to a gambling business. Any thing can happen for example Obamas speech can affect your share. 1. Requires a lot of capital at acquisition. 2. Its management intensive. 3. 1. Its a revolutionary new way of making money. And the challenge with the Information Age is its invisible. We talk about virtual offices not

1. Compounded benefits such as housing allowances, social security/ pension, Medicare, phone credit, and transport allowance.

1. Easy to manage. 2. Its highly liquid.

1. Its willable and sellable. 2. You can apply debt leverage because you can present your title to the bank. 1. The earnings potential is infinite. 2. There is leverage in form of time,

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Royalty

Direct selling combined with ecommerce OR eFranchise businesses. Songs, books authored, inventions, trademarks

physical offices with post office addresses but with web addresses. 2. Its knowledge based business and the challenge we have in Africa is people dont want to read and they are ignorant about the information age. If you dont want to read then it will be hard to see such opportunities that are in the information Age. Otherwise a knowledge bath is required or a must to understand these info-concept businesses. Industrial Age 1. In most cases you need talent.

relationships, word of mouth and technology. 3. Its exponential or compounding or doubling in growth. 4. Its willable, sellable and duplicable.

1. Its highly leveraged through word of mouth and technology. For example a local musician releases a song and immediately the TV channels, newspaper, websites, Radio stations start advertising the song, and including word of mouth. These are all free services to a musician. So his sales go high. This explains why a musician makes a lot of money compared to a highly educated professional under earned income. 2. The earnings potential is infinite.

Note: I think now you know where you fall as far as these forms of incomes are concerned: Take a moment to think about the profound difference just knowing the difference between earned, portfolio, passive, residual, dividend, interest, and royalty income. They are relatively simple words, but just knowing the difference can make a big difference in your life. The most important factors you need to look for in an investment are; positive cash flow whether you work or not with a passive element, leverage of (technology, relationships, time, debt), control, global market, system dependent and not people dependant, duplicable, willable and sellable. What makes earned income from a job very dangerous is the lack of control and if you dont have this then you cant even apply any type of leverage like technology to increase your earnings. Its highly taxed and again as said previously you have no control, so its the government in charge of the tax percentages, your pay raise is entirely in your bosses mercy, and you are basically a slave, working someone elses dream. However much you may be paid, there is nothing, nothing that an organization can pay you to be equivalent to your 8a.m. to 5p.m. time for work. Thus we have to start thinking about redeeming our time and dreams in the most appropriate ways.

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Neither of these forms of income is right or wrong. It simply depends on the person. You need to decide for yourself which one you would prefer. However, I have found that passive income frees me up to spend more time with my family; to take more holidays every year; to buy the home and the car that I really want; to support my church in every way, with my money and my time. Honestly, living a lifestyle with a passive income is worth every bit of effort that it takes! So how can you start earning a passive income? Most people would already have guessed that you do it through a business. By building a big business, you create yourself an asset (a system that keeps on paying you money even after you finished working). This type of business isnt a small one-man enterprise; with this type of business you need to leverage off the efforts of at least 500 other people or organizations (staff, investors, and other companies). The problem is that most businesses fail within the first 2 to 3 years. They also take a lot of start-up capital, time and effort on the part of the entrepreneur. The business owner usually ends up only really owning his own job. So what if I told you that there is a way for you to start a part-time business with a high chance of achieving success, with low start-up capital, that could guarantee you a passive income of more than $60 000 per month within 2 years? You only need to work one hour per day, so you can still keep your job until you decide its time for you to retire? Better yet, that this system is 100% legal and has made many millionaires world-wide? This system exists. It is known as network marketing or Direct Selling or multi-level marketing (MLM) online and it truly is the greatest opportunity in the history of the world.

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Chapter #7 Industry

The

Network

Marketing

The MLM industry is fairly young. It was born around the 1940s in the USA as the next logical step in the franchising system. Since then many companies have expanded successfully by making use of MLM, either as their only marketing system or one of the systems they use. Some of the local and international companies making use of network marketing as one of their marketing systems include: Coca-Cola Texas Instruments General Electric Corporation IBM Hewlett-Packard Vodacom Auto & General Insurance Hollard Insurance NetCare 911 Momentum Resolution Health Some of these companies credit more than 50% of their customer base to network marketing. This is why, after less than 70 years, MLM is already a multi-Billiondollar worldwide industry. So what exactly IS network marketing? Let me start by explaining conventional marketing first. Traditionally, marketing has been done in one of two ways; I refer to them separately as advertising and marketing for commission. Advertising is when a company publishes or broadcasts an advertisement of their product or service in some form of media, like television, radio, newspapers, etc. Lets take television advertising, for example. A company called Pad Corporation develops a new product and calls the product a pad. Now they want people to know about pads. They pay around 10 million Uganda shillings to film and produce a television advertisement. Then they go to the television networks (WBS, NTV, LTV and etc.) and buy a certain amount of airtime for that ad, which amounts to another 3 million Ugandan shillings per month. Now they sit and hope that people see the ad and react to it. As people watch TV they are bombarded with pads, and suddenly everyone wants one. As the pads start to

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sell, the Pad Corporation takes a certain percentage of the sale price to pay for the advertisement expenses. Some advantages: You reach many people with your products. Repetition works. Some disadvantages: Theres no guarantee. You take 100% risk if no ones interested, you lose all your money. Though this is probably the most common form of advertisement, it isnt the most practical one. Marketing for commission is much more practical for young, start-up companies. Lets say Pad Corporation decides to employ a few full-time marketers. They receive training, and eventually they are sent out into the world to take the product to the people. These marketers are armed with brochures, samples and statistics, and they phone people who seem to need pads to make appointments to demonstrate how these pads could improve the potential customers lives. As and when the marketers make a sale, the Pad Corporation pays a percentage of the product price to the marketer for selling the pad. Some advantages: You have potentially unlimited customers. Marketing costs are only paid once the sale is made. Provides more employment opportunities. Some disadvantages: Many people dont respond well to telemarketers. Products are often over-priced to make up for higher commissions. Marketers are paid per sale no work, no pay (active income). Some products are seasonal for example, most people buy gutters during the rain season. When it doesnt rain, gutters dont really sell, and marketers go looking for other work. You need to train the marketers, and when they find a competitor paying them more commission, they will move on. Marketing, in this sense, is a highly competitive, dog-eat-dog world, and many people who try it will fail miserably. Network marketing takes the advantages of both of these systems and combines them into one super-powerful industry that makes sense for companies and marketers. Heres how it works:

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Nokia goes to Afron Marketing, an MLM company, to market their phones. Afron Marketing has an online database of a network of people who use word-of-mouth to tell their friends about great products and services, just as we all do automatically when we see a good movie or eat at a great restaurant. Afron Marketing provides these network marketers with brochures and product information concerning the Nokia phones. Some of these partners realize, Hey, I need one of those Nokia phones! and they buy. Even more of them will think of a friend or family member who needs one, and then tell them about it or give them a brochure. When a Nokia phone is sold, Nokia then takes the same percentage that they would have paid for advertising or conventional marketing, and pays it to Afron Marketing, who then splits it up into a certain number of sections to pay the network marketers responsible for doing the marketing. Some advantages: Equal opportunities for all network marketers. They all have the same opportunity to become wealthy. 0% Risk for the product provider (Nokia) because they only pay the advertising costs after they have received their payment. Opportunity for passive income. Get paid for doing something you do every day refer useful products and services to people you know. Some disadvantages: Some companies abuse the power of MLM to market illegitimate products or to fool consumers and marketers into thinking they can get rich quick with an inferior network system. As you can see, there really is only one disadvantage to network marketing, and that is negotiable as you will see. In truth, network marketing IS a get rich sure scheme system 2 to 4 years! As stated in the Introduction, after working 45 years at a job very few people earn per month what they can earn in MLM after 2 to 4 years of PART-TIME work. Network marketing is the easiest way for you to either earn an extra $2,000 per month part-time to improve your financial position, or to build a multi-Million per month income that will enable you to retire early and live the lifestyle you always wanted to live! How Network Marketing Works Call it what you will, the business model of network marketing is easy to understand. A company makes or distributes a product or service. Then the company joins in partnership with a network of independent business owners. Heres how the partnership works:

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The company takes care of all the big infrastructure expenses, such as manufacturing--- packaging--- quality control--- warehousing--- research and development--- administration--- employees--- management--- public relations--order processing--- shipping--- and payroll. In other words, all the headaches and major expenses. About the only thing the company doesnt pay for that traditional businesses do pay for is advertising. And thats where the independent business owners come in. They market the products and services for the company. The company compensates independent business owners by paying them commissions and bonuses from the advertising money the company saves. How much might that calculate to be? Consider this. As much as 80% of a products retail price can go for advertising. Did you know that our own coca cola bottle costs 150Ugs factory price. But how much do you pay for a bottle in the different places, probably between 600Ugs to 2000Ugs. So what is happening to the difference? It all goes to the distribution change. Proctor and Gamble spends $2 billion every single year on advertising. Nike in just one quarter of a year reported $3 billion expenses on advertising. Experts estimate that by the year 2000, companies will spend $200 billion a year advertising on TV, radio, newspapers, and the Internet (you didnt really think those little banners were free, did you?). If thats not bad enough, companies arent even sure if their expensive ads are working! Traditional advertising is like rolling the dice. As the famous advertising guru David Ogilvy put it, Only 50% of every dollar spent on advertising works. The only problem is, we dont know which 50%. A Win/Win Partnership This partnership between the company and the independent business owner is a real win/win. The company gets the best form of advertising word of mouth from a legion of commission-only independent business owners. In addition, the company streamlines the distribution process. No more need for wholesalers--jobbers--- brokers--- salaried salespersons--- expensive retail outlets--- store employees and managers. As a result, all of the middlemen and middle-women who would have had their fingers in the profit pie dont exist in the networking business model. The savings that result from this lean and mean operation can now be used to pay the independent business owners who are moving the products, as the diagram below clearly illustrates:

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BAD

BETTER
Discount Store Model

BEST
Network Marketing Model MANUFACTURER

Retail Store Model

MANUFACTURER JOBBERS $ WHOLESALERS $ STORES $ ADVERTISING $ CONSUMER

MANUFACTURER

STORES $

INDEPENDENT BUSINESS OWNERS

ADVERTISJNG $ CONSUMER

CONSUMER

Its simple brilliantly simple. And it works like a charm! The independent business owners earn rebates and/or commissions on the products they use and sell, plus commissions on the sales generated by other business partners they bring into the business. Because there is no cap on their income or restrictions on their territory, independent business owners have the incentive and the freedom to build huge organizations of consumers. Its not uncommon for an independent business owner to build an organization of consumers numbering in the 100s--- or 1,000s--- or 10,000s--- or even more! If each of those consumers averaged only $100 per month on products, and you built an organization of say, 1,000 consumers, you could earn commissions from 1% to 10%, or more, on $100,000 worth of product each month! Let me take this opportunity to also explain what most people have failed to understand and have ill-information about this industry. You have probably heard some people call Direct selling/ Network marketing/ Interactive marketing a pyramid scheme. Do you know what that means? The reason I ask is that most people have no idea what a pyramid scheme really is. Many people confuse Network Marketing, also known as Multilevel Marketing or MLM, with illegal pyramid schemes. You see the basic structure is the same, and the reason for that is because a pyramid is the strongest and most stable structure known to man. To understand how powerful this pricinple is please read the book called The Pyramid Principle.

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All successful companies and organizations have some form of a pyramid in their structure. This includes big companies (look at Microsoft), the government, churches, your own family setup, etc. The pyramids of Egypt show you a sense of strength, stability, and longevity. But for now lets suffice it to say that the main difference between an illegal pyramid scheme and a legal MLM business is the fact that MLM companies offer compensation for the movement of products from suppliers to end-users, whereas pyramid schemes usually involve no products, or their products are dubious at best. In addition, there is nothing unethical or illegal in compensating based on personal or family consumption, so long as the amount purchased for such personal and family consumption is reasonable and the products are reasonably priced. So usually people bring in arguments of the structure Pyramid and they forget to look at it in the commerce/ business sense. The argument or fight should be illegal pyramid schemes. In other words illegal in the business sense. Otherwise for anything to be called business or trade there must be the following. An offer, a willing seller, buyer, and goods or services. So anything without a product or service, PLEASE dont bother. That is not called business/ commerce as far as international business law is concern. Bank of Uganda has tried to warn the general public on many occasions against illegal pyramid schemes A copy of their letter is below though they missed out the real word in their letter illegal in the business sense.

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BANK OF UGANDA

37/43 KAMPALA ROAD, P.O. BOX 7120, KAMPALA; Telephone: 256-414- 258441/6 or 258061/6, Telex: 61069/61244; Fax 256-414233818 Web site: www.bou.or.ug E-mail address: info@bou.or.ug

Press Release Warning against Pyramid Schemes and Gift Circles

Several Pyramid Schemes and Gift Circles are currently operating in Uganda. These schemes use the Banking and Financial system to mobilize funds from unsuspecting members of the general public. Pyramid/Gift Circle schemes claim to offer a business opportunity that can enrich those who participate. Those who join the scheme are required to pay money into a series of bank accounts. In return for making these payments each new member expects to receive payments from future new members who they have recruited to the scheme. All Pyramid Schemes and Gift Circles eventually run out of new members to recruit. When that happens, large numbers of the existing members fail to receive any payments at all. Instead of enriching themselves, they simply lose the money that they have paid into the Scheme. Far more people lose money and are made worse off as a result of participating in the scheme than make money. The only people who become rich are the owners of the schemes who have fleeced the public out of their money. These Pyramid Schemes and Gift Circles are not new. Similar Pyramid Schemes collapsed in 2003 with a loss of millions of shillings to unsuspecting Ugandans. The Bank of Uganda has taken action to close the accounts of Pyramid Schemes and Gift Circles in the Commercial Banks. The general public is strongly advised that they risk the loss of their money deposited with the Pyramid Schemes and Gift Circles. Management

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30th September 2009 CONVENTIONAL BUSINESS VS NETWORK MARKETING Now you have seen why network marketing is a superior advertising system. However, I doubt that advertising a product is why you would be interested in network marketing. Lets face it: you are interested in one thing here - MONEY. And dont let that sound selfish, because it isnt. Lets look at the financial position of people upon retirement. Did you know that, after working for 40 years or more, only 3% of all people will retire financially independent? This means that only 3% of all people will be able to retire at the age of 60 with enough money every month to cover all of their expenses, let alone to live in luxury! Yet all people start their careers dreaming of that glorious day when they will be able to do whatever they really want to do. However, that is hardly ever the case. When age 60 arrives, most people start preparing for death; and they dont WANT to do anything more than that, because they dont have the money to do the things they always wanted to. Why do you think people died so soon after retiring or why someone would commit suicide after working their entire life and finally being on easy street, I was told that for some people, working was their entire life. They had nothing else in their life. The second reason that was offered was that many people worked their whole life, relying on a pension when they retired, and found out that pension barely got them through month to month. They were at the point in their lives when they had all the time in the world to do whatever they wanted, but had no money with which do it. Others are always waiting for their ship to come in. When my ship comes in I will go and see the world. When I win the lotto, I will fire my boss. As soon as I get that big promotion I will buy the house that I always wanted. The problem with this reasoning is that ships hardly ever come in. Its true! And you know what? A ship cant come in if you dont send it out first! YOU need to take authority over your financial future. Nobody else will do it for you. Ask yourself, do you want to retire financially independent? And at what age do you want to do this? Now heres an interesting thing: many people have told me that they have no interest in retiring! They make excuses: Oh, if I ever retire I would just die, anyway. Or, I am so used to working that I would never be able to sit still. Some people tell me that the hardest thing about being retired was having nothing to do. After years of school, classrooms, tests, meetings, airplanes, reports, and deadlines. I was truly conditioned to get up and rush off to do something. Yet these same people complain day after day about going back to work, dealing with their boss, and trying to keep their heads above water with their small salaries. Do you realize that since we are five years old? We are in school studying and once we are out of school, we are working like hell? Very few people have the luxury of at least one year to sit and just think and be with yourself. I believe that people dont want to retire, because they dont understand what retirement means. It means being free to do what you want, when you want to do
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it. It means not answering to a boss anymore. It means having the freedom to go where you want, when you want. The way I see it, that sounds so good that I dont want to wait until Im 60; 30 sounds MUCH better! Many people get fed up with their boss and their small salary, or they get retrenched, and so they decide to do their own thing start a business! It sounds so romantic. Finally we are going to build your future! Do what you always wanted to do! Unfortunately, reality isnt always that romantic. I enjoy the TV show Desperate Housewives immensely. I am not a big fan of the television; I believe it is one of the biggest time-wasters and dream stealers in the world today. However, I do believe that it helps you to relax every once in a while, and my wife and I enjoy watching Desperate Housewives together. In this show one of the characters, Tom Scavo, loses his job in advertising and decides to go with his big dream: opening a pizzeria. Lynette, his wife, struggles with the idea initially, but decides to go with it, because at least she is still earning a salary. Then she loses her job as well, and she is forced to go into the business with Tom. This leads to all kinds of frustration and irritation, and eventually their marriage is tested, their savings are all used up, and they both end up in hospital. This is reality. I know countless people who have tried what Tom and Lynette tried, with very little success; in the end they are often divorced, bankrupt alcoholics who cant buy food but always have an abundance of alcohol in their homes. With network marketing you have an alternative. It can be different for you. So why is conventional business so ineffective? Im glad you asked! Heres why: Start-up Capital Depending on the kind of business that you want to start, it could cost you up to a few million shillings to get it up and running. Quite often people use their life savings, their pension fund lump-sums, or a second mortgage on their homes to get started. Others get bank loans, which are very difficult to do without a solid business plan, or they get partners to invest capital. This capital is then used to pay the initial start-up costs (company registration, getting premises, paying first salaries, franchising costs, etc.), and to provide cash flow while the business is in the initial marketing stages. The issue of capital is probably the primary reason why people dont start their own business, or why they give up after only a little while. I know a few individuals who are highly specialized people. They are excellently qualified, with skills that are in high demand, but every time they try to get a business up and running it is the shortage of capital and cash flow that stops them. Warehousing So now you have the capital, you have registered the business, now you need to start developing your product, and this product needs to be stored and distributed. Thats where warehousing comes in.
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There are a few potential problems with warehousing; these are generally related to environmental conditions. For example, there is the danger of floods, earthquakes, fires... things that you have little or no control over. Then theres the matter of theft. Break-ins and theft means you need to get insurance, which adds thousands of Uganda shillings to your monthly budget. However, if you dont get insurance and some of your stock is stolen or damaged, it could cost you even more. Running Costs and Overheads Its impossible to run a traditional business without any overheads or running costs. You can limit it, but there are expenses involved. Here are some examples: Rent for premises Water & Electricity Telephone expenses Marketing costs Manufacturing costs Salaries & wages Insurance Equipment purchases and upgrades Storage rental Taxes (Hey, if Jesus paid them, who are you not to?) This could run into the thousands every month. Marketing Expenses Getting your product out there will hardly ever happen for free. There are free forms of advertising and marketing, but it takes a lot of planning to do this, and it usually starts with paid marketing. As you saw earlier, marketing can take on many forms: advertising on TV, radio, fliers, posters, pole ads, pull-tab ads, one-on-one marketing, corporate marketing campaigns, telesales, web marketing, etc. What you want to market and who you want to reach will determine which of these systems you use. Salaries It is almost impossible to start a good business without employees. I know some of you are saying, But I can do all of it by myself. Yes, you probably can, but then you will never be truly free. The best way to be financially free is to leverage off someone elses time and efforts. Either way, if its only you, you can only do half the work you can do if there are two of you. Robert Kiyosakis book, Rich Dads Cashflow Quadrant, refers to two types of businesses: small business and true business. Small business is the self-employed individual doing almost everything by himself. True business is the business where the entrepreneur got a team together to do everything so that he would not have to.
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When you start a business, you can either start a small business where you are the only employee, you earn an active income, and you cannot take a holiday without taking your work with you, or you can choose to start a true business with a team of employees, earning a passive income, and be free to take holidays without answering your phone every few minutes. If you want to build a true business, you need to pay salaries. In fact, Robert Kiyosaki says that you need to network with about 500 people before you can truly call your business a true business. Paying 500 salaries is expensive to begin with, and then once a year you have to give all your employees a raise. This is probably the greatest expense you will have in your business, but it is a necessary expense. Timing Though this does not apply to all businesses, most industries rely greatly on timing. For example, imagine starting a computer service company during the 1960s. Computers werent at all popular back then; it would just be impractical. This is an extreme example, but right now, as Im typing this, there are so many computer service companies that the market is almost full. To be a competitor in the computer industry you need to offer something that the others arent. It isnt impossible, just difficult. 15 years ago was the perfect timing for that. Just like the number of web developing companies around today. Web sites have become so popular over the last 10 years that many companies are developing web sites for other companies. People often try to start a business at the wrong time. If you want to benefit from a certain trend (like the web explosion) you need to get in when its fresh, or you will have much more of a struggle. Just one thing to note: this does not apply to business types. For example, franchising is a very old system or an Industrial Aged business, but it is still popular and effective. Its just the things being sold through franchises that have changed. Location This point is also debatable. Especially with the World Wide Web becoming so popular, a companys physical location is less important than its web presence. However, if you are a company dealing face-to-face with clients, you need a good physical location. For example, a friend of mine owned a computer college. This company was situated on a busy street in a big city, and we benefited greatly from people sitting in the traffic right outside our doors. With proper banners with our name and telephone numbers and some signs containing our specials we improved our client base considerably.

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On the flipside, a family of mine has a fast food restaurant and take away shop in another city. They started a franchise, selling local food. It is truly delicious, and they have everything going for them. Unfortunately their premises are hidden from sight, being located on a side street with one-way traffic and very limited parking space. Because of this they are struggling to keep the business afloat. I honestly believe that they could have made much more profit if they were willing to pay a little bit extra for a better location. To summaries all this I have a story to share with you as told by Burke Hedges from his book Dream Biz.com. Nightmare of owning a traditional business I was pretty proud the day we opened the doors. I had a 3,000-square-foot retail store on the busiest street in Clearwater, Florida. The aisles and walls were lined with $200,000 worth of inventory. I hired a receptionist, and I personally trained all 10 of the sales reps. The accountant had his own office, right next to mine so I could keep an eye on the books. I hired a crackerjack service manager and a couple of inexperienced technicians who I prayed would learn quickly on the job. I ran some big splashy ads in the newspaper. Hung a banner across the door. And waited for the money to come pouring in. It poured, all right, as in, When it rains, it pours! It didnt take long for reality to set in. Each month I had to ring up $100,000 in sales just to keep the doors open. Every time I turned around, the accountant was standing there holding a pen and the company checkbook. Sign here, hed say. I signed there. And I signed--- and signed--- and signed. Meanwhile, new inventory had to be ordered--- old inventory paid for--- and yet another new employee hired. Can you give me a two-week advance? he asked sweetly. Innocently, I signed another check. I never saw the guy again. I personally trained 30 different sales people in 11 months. Most of them, however, didnt earn their salaries in commissions. The only two good ones I ever had quit and opened their own stores down the street. My operations manager slipped off her chair and hurt her back. Workers Compensation insurance paid for her back operation. It didnt pay for my attorney, however, when she hauled me into court. To meet payroll, I went months without paying myself. I even took advances against my credit cards to make payroll. The employees got the money, I got the debt. The bills kept coming in. The employees kept walking out. And I kept getting deeper and deeper in debt. American Express told me to leave home without it!

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Expensive but Valuable Lessons Yes, opening up my dream business was the second-best decision I made in 1987. The best decision I made that year was to close my nightmare business down! They say experience is the best teacher. If thats true, then I earned my Ph.D. in Business Administration in less than a year! I learned some valuable lessons, no doubt about that. Expensive lessons, but valuable ones. And as a result, Ive been able to avoid some costly errors in later businesses. I tell you this story to illustrate a crucial point. Just because you dream about opening a business doesnt make it a dream business! In other words, not all businesses are created equal, believe me! Some businesses are better than other businesses, and thats a fact! Characteristics of a Dream Business I took a few minutes and jotted down a few characteristics of a dream business versus a traditional business. When you compare them side by side, its easy to see that owning a dream business would be a lot more attractive than owning a traditional business.
OWNING A DREAM BUSINESS VS. OWNING A TRADITIONAL BUSINESS

No employees Set your own hours Low start-up cost No restrictions on territory Experienced mentors to advise you Unlimited Income Recession-proof Low inventory Low overhead

Employees 9 a.m. to 9 p.m. six days a week All your savings Plus bank loans Limited territory On your own Income limited By number of store Dependent on Seasons or economy Inventory is biggest expense Monthly lease plus utilities

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No advertising Residual income

Expensive advertising budget Trade time for dollars

The Richest Game In The World The reasons mentioned above show you why very few people are willing to start their own businesses or why they give up shortly after they started, even though business is called the richest game in the world. Now I would like to use those very same reasons to prove to you that Network Marketing is the perfect business: Start-up Capital You can start a fully registered, legal business with most network marketing organizations for less than $600. This usually includes a starter kit containing some products or product brochures, training manuals, information, etc. Warehousing Depending on the type of product you market, you may not need warehousing at all. Usually the network marketing company provides warehousing, and they stock all of the products there until you have a customer or partner who orders it online. You are not a hawker in this case. Running Costs and Overheads Probably the biggest advantage; because it is meant to be a home-based business, you dont need to pay rent for business premises, water & electricity, telephone expenses, marketing costs, manufacturing costs, salaries & wages, insurance, equipment purchases and upgrades, or storage rental over and above what you are already paying for your normal home use. And concerning taxes, well, because you now have a home-based business, you have considerable tax advantages! Marketing Expenses You are the marketer; therefore you dont really have many marketing expenses. Brochures and other marketing materials will usually be provided by the network marketing company at a very affordable price. These expenses are generally taxdeductable as well. Salaries You dont need to employ any staff; in fact, you are not supposed to. You should go and see people with a business opportunity, and they will start their own business, for which you will be paid, and they will be responsible for building their own salaries, just like you are!

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Timing The management and admin departments of the network marketing companies are usually up-to-date with the trends. They know what the next big thing is going to be, and by linking with them, you are guaranteed to be on the forefront of technological development as and when it happens. Location Location doesnt matter. I work from home; when I go away, I take my network marketing kit with me. I can move to the mountains, the beach, or anywhere I want. As long as there are people, I can do business. So after identifying what type of income you are making and the challenges with that income, which income do you intend to work for in this dot-com era?

This Is the Greatest Tool Ever Invented!

We used tools in the past to leverage our muscles. We use tools today to leverage our minds,

Bill Gates, Microsoft Founder & CEO

Internet Age: More Change--- Faster Change--- Bigger Change Today we are entering the Internet Age an age that will propel the Information Age into hyper-drive! The people who make fortunes in the Internet Age will be the ones who can capitalize on the digital distribution of information and/or products to the hundreds of millions of people (soon to be billions) who are interconnected via a global network of PCs. And believe me, the wealth created via the Internet Age will far surpass the wealth of the three previous ages combined! How do you know? Because its already happening here in Uganda. In the Internet Age, change occurs monthly, even daily, as information is sapped around the world at the speed of light now that we have new bandwidth technology from SEACOM. Flexible people who embrace change as a way of life will position themselves to profit at the speed of light. Changing of the Guard The Internet is changing the way the old companies conduct business in the new eeconomy, thats for sure! For example, IBM announced it would offer its entire PC product line for sale over the Internet just like their rivals Dell, Gateway, and Compaq had been doing. Why? Because Internet sales had moved IBMs market, thats why! Theyve been losing money trying to sell their computers using the old

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distribution model, and they were forced to enter the Internet Age or get left in the cyber-dust. Even Barbie is getting the message! The Barbie doll is the top-selling toy of all time. Mattel has sold billions of Barbies through retail stores since she was first introduced in 1959. So how did Mattel celebrate her 40th birthday in April of 1999? The worlds biggest toy-maker announced it would cut 3,000 jobs and invest $50 million to build an Internet unit. The Internet moved Barbies market share and she wants it back! Same thing with the major car manufacturers. Ford and GM have launched online buying services, and MoneyWorld magazine reports that Individuals who are already involved in the Internet car-buying service believe that 60% to 75% of buying activity will happen online in the next years. Blue Chips Give Way to Computer Chips Can you guess the name of the person that CEOs of the old Economy companies, such as Ford, are asking to meet with? According to a USA Today article, the old guard is most after advice from Michael Dell, CEO of Dell Computer, who, at 34, is younger than most children of the average Fortune 500 CEO! Why Dell? Because Dell Computer has online sales of $14 million EACH DAY--- and Dells earnings have grown at an annual rate of 40% over the last three years! Those kind of numbers will make the oldest of the old guard take a new look at e-commerce. A 1999 Fortune magazine article stated that 1998 will likely signal the beginning of the end of the dominance of the old blue chip Industrial Age companies, such as general Motors and Coca-Cola, both of which have been around for over a century. Younger Internet Age companies, such as Dell computers, Microsoft, and Cisco (makers of Internet switching devices) are wielding more influence in corporate America, Fortune said. Over the years weve been conditioned to accept the get-a-job mentality. Our parents had full-time jobs. Our friends had part-time jobs. The school counsellors encouraged us to attend job fairs--- showed us how to fill our job applications--coached us on what to say during a job interview. Is it any wonder so many people get conditioned to think of a job as the only way to create wealth? Secret of the Wealthy So, if a job isnt the best way to create wealth, what is? What do wealthy people do that enables them to create far more wealth than the average person? Well, before I answer that, let me add that the secret of the wealthy has been around since the beginning of time. The secret of the wealthy is immutable, which means it will never become oldfashioned or go out of favor, no matter how fast or how much the world changes. The secret of the wealthy is written in stone. And its the key to every great fortune ever made.
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So, what is the secret of the wealthy, anyway? I can answer that question in two words they own. They own their own businesses. They own stocks in other companies. They own their own lives. And they own their own dreams. You see, wealthy people understand that when youre an independent business owner, youre building your dream, not someone elses. Content versus Context So where in the old economy, content was king, in the new economy, context is king. The current school system still struggles with giving students better content rather than looking at how the Information Age has changed the context of the world we now live in. Most school teachers are trying to create course content that will hopefully make your children more employable. That is why the school system continues to focus on content rather than context. This makes it obsolete. The context of the world has changed. During the Great Depression, the context was that jobs were scarce and job security was king. That is when the importance of good grades and a secure job came in. During those days, if you found a secure job with a good company, and you were loyal and hardworking, you were set for life. The company was responsible for your financial security after you retired. Today, after the retrenchment exercise of the early 1990s in Uganda and world wide, most people didnt realize that the context or the rules of employment had been changed forever. In the new economy, you need to expand your reality or context by watching your ideas. Did you know that Money is just an idea? This business of saying I cant afford it, I cant do that, Thats wrong, Its against my religion, I already know that, My brother tried that once and it did not work, Its a scam, Thats impossible. It will never work, You cant do that, Thats illegal, Thats too hard to do, Im right and youre wrong, I have no time Did you know that cynics and fools are twins on opposite sides of reality and possibility? Fools will believe any far-fetched scheme and a cynic will criticize anything outside their reality. A cynics reality does not let anything new in and a fools reality does not have the ability to keep foolish ideas out. If you want to be abundant and get rich quickly, you need to have an open mind to new ideas, a flexible reality, and the skills to turn new ideas into real and profitable ventures. In order to do that, you must have a reality that can change, expand, and grow quickly. To try and get rich with a poor persons reality or a reality that comes from lack and limitation is a mission impossible. In the new economy, context is king because context determines content. And context plus content equals capacity. So those who can change and expand their context will prosper and move ahead of those who cannot.
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The good news is that if you understand the importance of having the right reality or context, and understand the importance of having a plan, your chances of retiring young while financially free are greatly increased. If you can change your reality and have a strong plan, you may find that making $1 million or more without working can be a lot easier than working all your life struggling financially. All it takes is a flexible reality or context and plan that is followed. The next section introduces you to the quickest way to build a business and a revolutionary new way to achieve wealth in a highly leveraged industry. One of the leading in this industry of e-commerce and interactive marketing/ network marketing is a company called QI Ltd.

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Chapter #8 The Vehicle

The Company - Quest International Ltd (QI Ltd) QI Ltd is a multinational conglomerate with business interests in retailing, travel and leisure, luxury products, interactive marketing, technology, financial services, corporate investments, training and education, business consulting, and logistics. The rapidly expanding QI group, established in 1998, has regional offices in Hong Kong, Malaysia, and Singapore.

QI Ltd, through its subsidiaries and associate companies, has a presence in nearly 30 countries, including operational headquarters in Malaysia, a marketing and product development team based in Thailand, a telecommunications arm in the United Kingdom and substantial investments in India and Sri Lanka. With over 1,000 employees, QI Ltd through its various businesses has a global customer base of over three million and spans nearly 160 countries. QI Ltd's success reflects the creative, entrepreneurial spirit of a team led by resourceful managers who focus on solid economic fundamentals and an allconsuming commitment to the success of its partners and satisfactions of its customers. The groups expansion into high-quality interrelated products and services has created many new opportunities for customers. The group is guided in its growth by a determined vision: to be acknowledged by its clients as their preeminent business partner.

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Today, QI Ltd is a customer-centric company with the ability to match the rapid rate of change in the international business environment. QI Ltd's cutting-edge technology and advanced, web-based solutions offer an efficient service to the companys valued partners, customers, and suppliers alike. In just ten years, the group has built a significant reputation for innovation and achievement. QI Ltds mission is to be a major stakeholder by accurately evaluating and confidently investing in dynamic business ventures that will benefit our valued partners. The aim is to develop new business ideas and lucrative market opportunities including fund management and property development. The strategy is to diversify QI Ltd by creating multiple opportunities through its subsidiaries. Time line 1998 8 September 1998. Two friends set up a multilevel marketing business known today the world over as QuestNet. 1999 Launches its official website and becomes one of the first Asian companies to push network marketing online. Merges direct sales and multilevel marketing with collectible coins, medallions, luxury jewellery and watches as its sales model. 2000 Associates with B.H. Mayers Mint Germany. Launches the eStore to maximise opportunities for Internet commerce and deepen its relationship with customers The QI Ltd group managing director presents a gift to Pope John Paul.

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2001 Branches into the holiday, hotel, resorts and spa industries through Quest Vacation International. Introduces in-house e-currency payment system to the network. 2002 Affiliates with one of the worlds leading providers of products and services in the travel and leisure industry. Launches a diverse Cycle Redemption collection with 100 plus products in the eStore. 2003 Deploys Microsoft.NET Architecture based on Windows Server 2003. A page from Microsoft.com web site below shows a case study by Microsoft or click on this link to visit it directly
http://www.microsoft.com/hk/sia/search2.aspx?CaseID=218

Sponsors the 2003 QI-IBF Badminton World Championships in

Birmingham, England.

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2004 Becomes a licensed distributor of the FIFA commemorative coin programme. Becomes one of the few authorised distributors of official coins for the 2004 Athens Olympic Games. Releases a new Compensation Plan. 2005

Invests in a UK-based independent telecommunications provider with a

strong background in providing advanced telecommunications solutions and technology in the United Kingdom. Visit www.QIcomm.com The number of QuestNet Independent Representatives around the world reaches one million. Participates in relief operations throughout countries affected by the December 2004 Asian Tsunami through RYTHM Foundation.

2006

Acquires a Swiss watch manufacturer in Zurich, Switzerland, this solidifies

the Questnet watch range to allow complete in-house design and manufacturing of Bernhard H. Mayer watches. Invests in Prana Resorts and Spa at Koh Samui, Thailand. Sponsors Team QI-Meritus in the Formula V6 series.

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breakthrough wellness products from Amezcua. www.amezcua.com The famous one in the wellness range is the Bio Disk. Sponsors the 2006 IBF Badminton World Championships in Madrid.

Introduces

Sponsored the Brazil Team in World Cup 2006 in their training camp in Switzerland.

2007 Sponsors the Commonwealth Business Forum 2007 in Kampala, Uganda. Team QI-Meritus is confirmed as Champion of the 2007 Formula BMW Asia Series, Shanghai International Circuit, China. Commonwealth Business Forum 2007 Kampala, Uganda On-the-spot reports & images. The Commonwealth Business Forum is being run in conjunction with the CHOGM [Commonwealth Heads of Government Meeting], meaning that the leading decision makers from both the public and private sectors will all come together in Uganda over the course of this week until 25th November. This provides not only a forum for open discussion and frank exchanges of ideas, but also crucially the impetus for

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future

decision

making

Richard Zinkiewicz (left) and Dato Vijay Eswaran (right) give the special CBF commemorative medallions to Uganda's President - H.E. Yoweri Museveni and CBF Chairman - James Mulwana.

Dato' Vijay Eswaran meets the Malaysian Prime Minister, the Honourable
Dato Seri Abdullah Haji Ahmad Badawi at dinner and presents him with the CBF commemorative medallion.
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19/11/2007 QuestNet arrives in Kampala Uganda in full force bringing the message to over 750 local IRs! Opening night prior to the official start of the Commonwealth Business Forum 2007, QuestNet held a Bonanza Rule 3 event which was facilitated by QuestNet Board Directors, V-Council Members and V-Partners. QuestNet's notable attendees included (pictured above from left to right) Mr. Richard Zinkiewicz, VIP guest Mr. TP Sreenivasan, Ms. Donna Imson, Dato' Vijay Eswaran, Mr. JR Mayer, Mr. Kuna Senathirajah and Shashi Korla.

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20/11/2007 The CBF officially begins and as the host the Ugandan President - General Yoweri Kaguta Museveni makes the opening speech. QuestNet is again well represented at the official opening and we have included some pictures from there for you to enjoy!

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21/11/2007 The second day of the conference was when the serious discussions took place and topics were debated in earnest. On the agenda was Information Communication and Technology (or ICT) and we have some pictures of Dato' Vijay Eswaran who was a key speaker along with the other panelists from an eventful second day.

Dato' Vijay Eswaran presenting his book; 'In the Sphere of Silence'
[special edition], to the President of Rwanda - H.E. Paul Kagame.

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2008 Sponsors the MY Team QI-Meritus.Mahara team in the first annual GP2 Asia Series 2008. Becomes an official distributor of the Beijing 2008 Olympic Games Commemorative coins. Introduces BioSilver and Swiss Glacier Essentials personal care products.

Participated in the World Federation of Direct Selling Association. (WFDSA) World Congress XIII in Singapore. Official web address of WFDSA is www.wfdsa.org Establishes the QuestNet Advisory Board to support the company. On Oct 24, 2008, Success in Shanghai. Hong Kong-based QI Ltd which boasts of a market base of over 4 million partners and customers in the Asia Pacific, Central Asia, Africa, the Middle East, the Americas and Europe, injected a multimillion dollar investment in the title sponsorship of Team Meritus racers over the past two years. The synergy which began between the multinational company QI and Meritus brought so many mutual benefits for both sponsor and team, as the e-commerce giant goes on a quest to promote motor sports in Asia and create a region of world-class champions.

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(Left to right) MY Team QI-Meritus.Mahara owner Peter Thompson poses with QI Director of International Operations Mr Richard Zinkiewicz, Malaysian driver Alex Yoong, and QI Director of Product Development Mr Joachim Steffen

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Bambers second place finish was a great start for MY Team QIMeritus.Mahara

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On 25th to 29th November 2008, Questnet holds its annual conference the VAfrica 2008 in Kampala, Uganda.

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Dato Vijay Eswaran during the 10th Anniversary ceremony in Munyono, Kampala while Mr. James Mulwana the Uganda Private Sector Foundation Chairman looks on.

The Prime Minister of Uganda, Prof. Apollo Nsibambi during the 10th Anniversary ceremony in Munyono, Kampala.

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In November 2008, RHYTHM Foundation, the charitable arm QuestNet, reached out to H.E. the First Lady of Ugandas UWESO (Ugandan Womens Effort to Save Orphans )Foundation

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In November 2008, RHYTHM Foundation, the charitable arm QuestNet, Her Majesty Queen Sylvia Nagginda of Bugandas Nnabagereka Development Trust Foundation and Think Tank of the Makerere University Private Sector Forum, under the patronage of Governor Emmanuel Mutebile of Bank of Uganda.

On Nov 05, 2008 QI shines at East Africa International Business Forum. A

crucial meeting of various Heads of Government, senior ministers and prominent business leaders from East Africa, Europe and Asia, the EAIBF provides delegates unrivalled networking opportunities and active participation in round table sessions. Themed as "Trade & Investment Opportunities: East Africa - One Market One Destination, the forum aims to identify the best investment opportunities for East Africa and the practical steps required to implement economic reforms for the region.

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QI Director of Investments, Kuna Senathirajah, right posses for a photo with H.E. President of the Republic of Rwanda, Paul Kagame, centre and other QI partners.

On Nov 14, 2008, QI Attends the International Business & Leadership Forum at the EU Parliament in Brussels. The forum's theme this year was Ethics in Business - Corporate Culture and Spirituality. Dato' Vijay Eswaran, Chairman of the QI Group was invited to speak at this prestigious forum that took place at the European Parliament along with business and thought leaders from around the world, including several heads of state from Europe and ambassadors from 14 countries.

. Vijay Eswaran with panelists at the symposium

2009

On Sep 30, 2009 The QI Group of Companies officially gained membership into the World Economic Forums (WEF) Community of Global Growth Companies (GGC). Incorporated as a foundation in 1971,

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The World Economic Forum is an independent international organisation that is committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agencies. Members of the GGC are selected based on factors such as a companys business model, growth record, leadership and the market it serves. For a multinational conglomerate like QI, this new membership marks a great leap forward, as it offers privileged occasions to network with outstanding industry leaders and experts from academia and the business world, especially through the Annual Meeting of the New Champions, a gathering specially reserved for chief executives of member companies.

On Feb 24, 2009 RYTHM Foundation, the corporate heartbeat of the QI Group, donated USD 30,000 to UNICEF in India to support its water and sanitation programmes in the flood-affected districts of Bihar State in Supaul, Saharsa, Araria, Madhepura and Purnia.

For the full story click on this link or insert this in the URL http://www.unicef.org/india/emergency_4835.htm or visit the unicef website with the above address. On Feb 23, 2009, QI Sponsors AAAA Business Summit. QI was the principal sponsor of this event, organised by the Commonwealth Business Council which brought together 300 delegates from all over the world to explore increased collaboration between the Southern economies in Africa, Asia, Arab and the Americas in order to promote global economic development. This important business forum focussed on the role of new economic factors in these emerging economies and explored shifting

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patterns of cooperation between them and those of mature industrialised countries, in driving forward global economic growth and wealth creation.

On Jan 12, 2009, QI Joins Commonwealth Business Council. The Commonwealth Business Council (CBC) provides leadership in increasing international trade and investment flows, creating new business opportunities, promoting good governance and corporate social responsibility, reducing the digital divide and integrating developing countries into the global market. CBC is the voice of the private sector in the commonwealth and beyond and plays a crucial role in bridging the gap between the public and private sector, small and large businesses, and developed and developing markets. Members of the CBC include Standard Chartered Bank, MTN Group, Coca-Cola, Virgin Atlantic and many others in the CBC and looks forward to a long and fruitful partnership.

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Reasons for tremendous success: 1 The use of Internet (100% e-commerce). QI does its trading only over the Internet through a subsidiary called QuestNet (www.quest.net) This medium lowers costs yet providing access to global markets, thus faster growth. 2 Word of mouth advert (referral/network marketing). If one says he/she has never done referral marketing, then he/she has never referred a friend to a good hotel, school, doctor, lawyer and so on. Users recommend good quality products to their friends and colleagues. Because of this, 65% of sales are made out of referral marketing. 3 Direct selling marketing. In traditional marketing/trading, this is what happens, Here the company recognizes your effort in brining new customers/sales to the business and shares the resulting profit with you. How possible to share profit? Because, we use E-Commerce selling principles which makes this business different from Traditional business;
Traditional marketing; A product moves from manufacturer to final customer thru a chain of distributors. The difference between the factory price and
the consumer price goes to the middlemen 80%. In interactive marketing, this difference is shared between the customers and the manufacturer (see below)

Factory $100

Area Distributor

Country Distributor

Local Distributor

Retailer

Customer $500

$400 (80%) A product that costs $100 from a factory may cost a consumer $500 from a retail shop. Why? The middlemen add cost to the product without any value added due to; Stockholding costs, Advertisements costs, Profit margins, Shipping costs, Taxations, and many others. In Direct Selling, this is what happens,
In Direct Selling; A customer refers a prospective customer to the company, the prospective customer deals directly with the company to buy and receive
a product. A customer who refers another customer shares the profit generated from the sales made by their own referrals or those of their down lines.

Internet
Factory $300 $$$3
Customer $330

Courier

In direct selling, a customer contacts the company direct through word-of-mouth and the company delivers a product to the customer. This cuts off middlemen involved in the distribution channel. The factory/company in this case can sell the product sharply (say $300) and the product is more affordable to the customer (e.g. $330). The additional $30 could be spent on shipping by the courier company. QuestNet uses the Internet; a customer visits the companys website (www.quest.net) and they are asked who referred them to Quest net before they buy a product of they choice. QuestNet then contracts any courier company (DHL, TNT) to deliver the product, since QuestNet is 100% e-commerce. BUT since QuestNet removes the middlemen, advertisement is left for the customers who do referral marketing for the companys products. The best person to market a product is the end user, dont you agree?

These customers are paid commission basing on the results of their word-of-month marketing. E.g. If Jackson refers George how is based in the U.S.A, Jackson is paid a commission basing on what George buys from QuestNet, and if George refers Sam in Zambia, George is paid a commission basing on what Sam buys from QuestNet and Jackson is also paid a commission because; QuestNet was able to sell to Sam through George because of Jackson. And so on, and so on. Because of their wonderful commissions, over 5.5m people worldwide are doing business with QuestNet. In Uganda alone, the number is more than 10,000 and growing so fast. The Direct Selling Industry Direct selling is a growing and exciting industry that provides a way to sell products and / or services directly to customers, away from a traditional retail location. You can actually consider this industry as one of those disruptive technologies that have cut out the middles because of the internet. The industry allows businesses to connect with customers one-one-one-be it in groups, online, by phone or through catalogue sales. A direct selling opportunity is a viable option for people of all ages and genders and from all income and education levels. In emerging markets, direct sales companies benefits from both strong market growth and an attractive earning opportunity. In more mature markets, direct selling creates the togetherness that many are seeking and brings additional income, personal growth and peer recognition. In direct selling, a salesperson earns a commission by referring a companys products to customers. They also earn commission when other salespeople in his or her network successfully refers product. What really sets direct sales companies apart from more traditional retail industries is the ability for a person to start their own business, without major investment in inventory, expensive office space or shop fronts, challenging start-up costs, or prior education in developing business plans. Further, the marketing, packaging and advertising of the products are already taken care of by the company. A salesperson of a direct sales company is able to focus solely on promoting the companys products. Direct selling allows people to choose when and where they work and involves little financial investment. Further, there are no specific qualifications needed to become a salesperson for a direct selling business, since the company provides training to develop the necessary business skills, as well as marketing education. This training aspect is an integral part of the offered business opportunity. For more information on this industry visit Direct Selling Association www.dsa.org or the World Federation of Direct Selling Association www.wfdsa.org
Nov 2009

Quantum Leap A good path to Wealth Working for money by selling your labor often means that life gets harder simply because you have to work harder to make more money. If your leverage ratio for life remains at 1:1, then your life will get harder. If you work for an ever increasing leverage ration, then life gets easier and you make more and more money. Most of us have heard of the term a quantum leap. Others may use the term exponential, meaning beyond a linear increase in something. In other words, 1 + 1 does not equal 2. In a quantum leap of wealth or an exponential increase of money, 1 + 1 can equal 5, 6, 7, or more. In other words, if you work diligently and build a strong house of bricks, I have found that there are often sudden quantum leaps of wealth, quantum leaps that people who follow a 1:1 do not seem to have. The value of assets often increases exponentially while the value of your labor only increases incrementally. For example, you buy land today and after one year the value of that asset grows by 40 million Ugandan shillings and at the same time a salary increment is made at your place of work lets say 5% of 4 million Uganda shillings equal to 200,000 Uganda shillings. Have you noticed that the word used when increasing your salary is called increment In MATHEMATICS an increment means a small change in mathematical value: a small positive or negative change in the value of a mathematical variable or function. Have you noticed or marked the words small change? So I usually hear people complaining that the organization is cheating them by increasing their salaries by only 4% or 5%. How ignorant of them! The condition is in the words used by the organization at the time of hiring you that there will be an increment at the end of the year after your performance appraisal and increment means a small positive or negative change in something. Probably if they were using words like there will be an exponential or compounding growth in your salary that would sound better and you would actually have the right to sue the organization if a 5% increase is done yet they had used words like exponential increase. The Power of Networks There is a law known as Metcalfes Law that partially explains the quantum leap or exponential burst of wealth. Robert Metcalfe is one of the founders of 3Com, the company that brought you the palmpilot. His law states that the economic power of a business is the square of the number in the network. Network Marketing Business After understanding Metcalfes Law, the law of networks, I knew why network marketing organizations offer such a powerful tool to average people like you and me. Applying Metcalfes Law to a network marketing business, you begin to see the power of this form of business.
Nov 2009

For example: A person from the E or S quadrant decides to join a network marketing organization and learns to move to the B quadrant. They work a year or two, gaining the required education and mind-set. Lets say for two years, nothing much happens. People come and people go from their business, rather than stick it out. So after a year or two, their leverage ratio or economic power is the same. It is not much different from being in the E or S quadrant: 1:12 Economic power of 1 Suddenly, in the third year, this persons context is expanded and they have new content and all of a sudden they now attract and train three strong candidates who also want to build the business. 1:3 Economic power of 9 In three years that is a quantum leap of power. After five years this person now has a network of ten and their leverage ratio looks like this: 1:10 Economic power of 100 And now lets say this person decides that ten people are enough and he or she focuses only on the ten people in their business. Soon after just a few years, lets say the ten people in his network also have ten people (1:10:10). That means the original person now has 100 people in his network. Then with his or her excess cash, this person begins to buy apartment houses. He begins with a 100-unit apartment house: Business 1:10:10 Real estate 1:100 Within five to ten years, this individual has not only made the shift from the E and S side of the quadrant, he has jumped his economic power in both the B and I quadrant, something that is hard to do in the E and S quadrant, to get rich because of the leverage ratios. For example, most employees can only work for one company at a time. While they may hold a second job, that still falls in the 1:1 ratio. The same is true for many small business owners or self-employed people. A dentist can only drill in one mouth at one time and a lawyer or accountant only has so many billable hours in a day. Suddenly, the person who made the shift is far wealthier, making much more money, and has more economic power than the peers he or she left behind in the E or S quadrant. After fifteen years, the numbers could be staggering.

Nov 2009

That is an oversimplified example of why I recommend some of the network marketing companies. As the name says, it is a network which harnesses Metcalfes Law, which is the law that measures the power of networks. Robert T. Kiyosaki the author of Rich Dad Poor Dad, the #1 New York Times, #1 Wall Street Journal, #1 BusinessWeek and #1 USA Today business bestseller and a financial guru said in his book Retire Young Retire Rich, Today, when I talk to people who are worried about their retirement or their mutual funds in their retirement account, I often recommend they add to their portfolio a network marketing business. I say to them, If you really follow the lessons taught by some of the network marketing businesses, and you build a solid business with solid people in your network, you will find that business to be far more secure than the mutual funds found in your retirement fund. If you truly work hard to make those in your network rich, they in turn will make you rich and very secure, In my mind, a network marketing business is far more secure than the stock market because you are counting on people you have grown to love and trust and all of you are harnessing the power of Metcalfes Law the law that measures the power of networks. Robert T. Kiyosaki continued to emphasize that, if you want to be rich, you may build networks and link your network with other networks. People who act alone or as individuals limit their chances for economic success. Networks are people, businesses, or organizations that you are generous with because you support them and they support you. Networks are powerful forms of leverage. If you want to be rich, build a network and network with other networks. The other good news is that it has never been easier and less expensive to become rich. All you have to focus on is serving more and more people. In John D. Rockefellers day, it took him approximately fifteen years to become a billionaire. For him to become a billionaire, he had to acquire many oil wells and create a network of gas stations and gasoline delivery systems. That took a lot of time and a lot of money. Today it would take billions of dollars to build what Rockefeller built. It took Bill Gates approximately ten years to become a billionaire he had the foresight to use IBMs network to grow rapidly. It took Michael Dell and Steve Case, founder of AOL, less than five years to become billionaires. One entrepreneur used the growing demand for computers and the other used the explosive power of the World Wide Web to tap into the power of an explosive network. For each new generation of entrepreneur, it took less time and less capital to become billionaires, due to the advent of new networks. You can too. If you understand the power of networks and the importance of leverage ratios, you too can become exceptionally wealthy in a short period of time and at a fraction of the cost. If you have solid business fundamentals and experience, you can market to the world over the World Wide Web. As the cost of doing business
Nov 2009

on the Web goes down in Uganda due to the fact that the Sea Cable which offers fast speeds and bigger bandwidth is being laid across the country. So even if you have a low-paying job, you can still become very, very rich if you start a Network Marketing business in your spare time and leverage your relationships very well. Remember, It is not your bosss job to make you rich. Your bosss job is to pay you for what you do, and it is your job to make yourself rich at home and in your spare time. In the future, when the new technology of bandwidth (Sea Cable) hits the World Wide Web, what will our economic value be when we become one of the thousands of businesses that have our own network marketing distribution channel over the Web? Ugandans, your job is to position yourselves and be ready for this opportunity. It is okay to be five years early, but not one day late. In the few years, those that are prepared and positioned will take advantage of the explosive power that bandwidth will bring and the explosion of the e-network marketing business opportunity. The people who take advantage of the new technology can become far richer than Ted Turner did with television, or Bill Gates did with computer software, or Jeff Bezos did with the Internet. C: Product Lines In Brief: 1 Telecom Products: Managed by a subsidiary Qicomm. Qicomm is based in UK, formally United Telecom. Qicomm operates over 3 million switches. Fully owned by QI. More on www.qicomm.com and www.in-voice.com Some of the products

2 Numismatics and Luxury Products: Managed by a subsidiary QiQatana QiQatana is based in Germany and Switzerland QI fully owns JR Mayers Mint (Germany) and BH Mayer (Switzerland) that is responsible for making the best Numismatics and luxury/jewelry products internationally.

Nov 2009

These medals, commemorative coins, watches and other jewelries are made out of precious metals like Gold, silver and platinum and in limited editions.

More on www.qatana.com 3 Holiday products: Managed by a subsidiary QVI Club. QVI Club is based in Malaysia. This provides Holiday products that one can cheaply enjoy in over 4,000 five-start hotels worldwide fully owned by QI.

More on www.qviclub.com and www.xchangeworld.com 4 Wellness Products: Managed by a subsidiary QiLifestyle. These are very brilliant products produced by Schott AG facility in Germany (www.schott.com). The gentleman behind them is called Dr. Ian Lyons (a British neuron surgeon), who retired from the British army. Dr. Ian Lyons studied hot spring waters regarding their healing powers. His research took 25 yrs and was sponsored by Humberg University in Germany. After studying over 56 samples of hot spring waters around the world, he came up with the following conclusion on their properties;

Nov 2009

Properties of Hot Spring Waters 1 All the samples had 13 essential minerals in life. 2 The 13 minerals were in equal proportions in each sample. 3 The water samples had definite molecular structure. 4 The water samples had no free radicals; they were pure water (H20). 5 The samples were emitting energy (Scalar energy). Scalar energy that was being emitted was responsible for the healing. Scalar energy improves the covalent level of the hydrogen atom which holds our DNA together. For more about scalar energy, search for scalar energy on the net. I would also advice you to read on other types of energies such as potential energy, kinetic energy, solar energy, static energy and others. The reason why I am emphasizing this is we have a challenge differentiating what is called power and energy. Some people will take the Bio Disc as some glass which has got power to heal people, but its not the case. Its the scalar energy which is emitted over the Bio Disc that improves the covalent level of the hydrogen atom which holds our DNA together. So the body actually heals itself. Using NANO fusion technology, the 13 essential minerals were fused onto a glass matrix that he named a BIO DISC. This disc can now produce and transfer scalar energy to any liquid substance like water, drinks, food, fruits, human body and many others. More on how to use can be found online. www.biodisc2u.com or www.amazcua.com By using this product, one can be relieved from diseases NOT caused by virus or bacteria, e.g - High blood pressure - Diabetes

Nov 2009

- Sinuses - Eczema - Migraines - Joint pains - And many others. The list is long E: - Business Opportunity In Brief: QI offers you an opportunity if you help them distribute their products through referral marketing strategy. The more you help the company sell, the more you earn in commissions. The marketing arm of QI is called QuestNet (www.quest.net). QuestNet is responsible for all marketing tasks including commissions payments and all other related activities for QI. QuestNet uses a Balanced Binary Compensation Plan To start doing business with QuestNet, one must fulfill the three (3) requirements listed bellow. Three (3) Requirements 1 Register By paying $10 renewable every year. This is to maintain your virtual office (personal webpage) for monitoring your business with QuestNet. 2- Qualify By buying at least 1 product of at least 1UV (unit value/volume) of your choice from QuestNet. The products have Unit Volumes ranging from 0.5UV to 21UV. Products of higher UVs are more expensive than those with lower UVs. A product of 1 UV costs roughly $600 - $850. 3- Activate By referring at least 2 persons who can buy a 1UV product of their choice.

Nov 2009

Graphical Presentation

Balanced binary compensation plan

Every 3 new sales that occur in your left group of customers, whenever they balance with another 3 new sales among the right group of customers , you earn $250 Left Group

Right Group

YOU
HA 123123 ANNE HA234234
RICHARD HC456456 LINDA HC567567

BEN HA345345 SARA

HC789789

JIMMY
HC889977

JOHN HD 100002

KUMAR HD 100004

ABDU HD 199299

KEVIN HD 288377

MARY HD 377266

KENETH HU422533

BETTY HD376412

HADIJJA HD333444

Projection This shows the potential of a pessimistic projection this balanced binary

compensation plan has.

THE POTENTIAL
US$

Month
One Two Three Four Five Six Seven Eight Nine Ten

Assuming that you and all your down lines will each take one month to get 1L + 1R Income Left Team Right Team Your Progress

1 2 4 8 +1 16 32+1 64 128+1 256 512+1

1 2 4 8 +1 16 32+1 64 128+1 256 512+1

1L +1R 2L + 2R 3L + 3R Bal 1 3 x 250 5 x 250 11 x 250 21 x 250 43 x 250 85 x250 171 x 250 Bal 1 Bal 1 Bal 1

50 200 250 750 1250 2750 5,250 10,750 21,250 42,750

Pls note; it is not possible that everybody will take the same amount of time to get their 1L +1R. Some people will take 2 wks others 2 months. This is just an estimation of normal growth

Nov 2009

So, the earlier you react and signup, the better for you. The decision lies on you. Thats in brief about the business opportunity I wanted to share with you. Note: This document was written in my words. This is not the brochure by QI. I am simply trying to explain to you what kind of opportunity QI offers. ---------- I wish you all the best as you struggle to meet your needs -----------

Nov 2009

Chapter #9 Excuses
Objections and Excuses An objection is a question in disguise, and an excuse is just a way of delaying your own success or a well organized lie. So I want to ask you, before reading on, take a pen and a piece of paper and write down every single reason/ excuse you can think of NOT to get involved with e-commerce & direct selling industry, as well as every single problem that you have with the concept of direct selling. Go on, Ill be waiting right here when you get back! Okay, you did it? Good. Now, read on... Heres a list of the most common objections and excuses that I have seen, as well as the answers that I give people in my network. Some of these are so silly that they almost dont warrant a reply, but I promise you that these objections and excuses were used, either on me myself, or on someone I know. Here we go: Some people will say, I dont have the time because I have to stay behind and do my reports or go home and prepare for my family or I have to go for further studies or Its not for me or Im too old to try something new or I dont have the money I am not smart enough I dont want to be bothered Its against my religion What if I invest in this business then it stops there What if the market gets saturated Its a cult Its a scam I am not smart enough Investing is risky I work too hard at my job and I still want the benefits from my job to accumulate I am not a sales person I dont know any people Its one of those pyramid schemes Guess what? That thing doesnt work and so on. I am going to address all these half-baked excuses and how you can overcome them. All these half-baked excuses remind me of a guy who wanted to mow his grass, but his mower was broken. So he went next door to his neighbors house and asked if he could use their lawn mower. Sorry, said the neighbor. I cant lend you my lawn mower because my wife is cooking beef stroganoff. Startled by his neighbors response, the man asked, What does your wife cooking beef stroganoff have to do with you lending me your lawn mower? The neighbor looked him square in the eye and replied, If I dont want to loan you my lawn mower, any excuse will do!

Nov 2009

I cant do that. Well, what cant you do? You have to explain what exactly it is that you cant do. Cant you talk to people? Thats actually a lie. You CAN talk to people. You may not LIKE talking to people, but you are talking every day, and unless you are talking to yourself, you are talking to people! Network Marketing isnt about talking to strangers, or knocking on doors, or going from person to person on the street. Its about talking to the people that you already know, and telling them about something that youre excited about. Besides, the business training system will teach you how to talk to people, and often you dont even have to talk to the first few people by yourself your upline will talk to them with you. Apart from that, most Network Marketing businesses have DVDs and live presentations. You dont have to talk to people, you just go to their home and plug in a DVD, or invite them to a business opportunity meeting, where someone experienced will explain the business. That thing doesnt work. I have often heard an excuse along the lines of My brothers neighbours sisters uncles dogs previous owners neighbours aunt once tried it and it didnt work. Stupid! I am going to tell you a secret. Its a BIG secret. Many people in the network marketing industry dont want you to know this, but its true, and Im going to tell you. This excuse is true. Network Marketing doesnt work! 100% correct. Let me tell you something else: Think about your dream car. Now go to the agents who sell that car. Buy a brand new model. Now tell it to take you home. These guys who enter this business and they dont spare any single hour on a daily basis to build their business. These are guys who think its a get quick-rich-scheme. Sorry kiss my foot! These are the kind of guys you will call in for the business opportunity meetings and trainings and they will refuse. But they are so busy being broke in offices and they have all the time to go home and watch TV, go to the bars and drink alcohol, go and watch football and even analyze the football match better than the commentators, they know who earns how much per hour, who has been transferred where, they go to every wedding meeting, mention all the disenabling activities which in 5 years wont enable you to put good food on the table. Now the next time you meet such guys in your office or anywhere ask them, how much commitment have you made to achieve your goals by building this business? Because all network marketing companies are like vehicles which need to be driven to your destination of your choice and you need the skills. Now if you are not willing to be trained and have no time to spare to build your business then you better remain in your 8am 5pm job, 40 years dead end very comfortably and stop bad mouthing the business because you failed.

Nov 2009

Guess what? It doesnt work! For a car to work, you have to drive it. It isnt the car that works; its you driving the car. And if you dont drive the car correctly, it wont work for long. The only way to get a car to work and keep it working is to drive it, to keep on driving it, and to drive it correctly. Once you stop driving, the car will stop working. The same is true of network marketing, investing, or any type of business (or job) out there. It wont work unless you are working. It will stop working whenever you stop working. And it will also stop working after a while if you dont work correctly. Thats why its important to find a mentor who already achieved that which you want to achieve, and to follow his / her advice to the letter. They know how to work the business successfully; why try to change something that works? I dont have enough money. Great! Thats why Im telling you about network marketing, so you can GET enough money! When someone says its expensive to join this business, just know that they have taken it as a sales pitch more than a business plan. The truth is, if you arent willing to sacrifice something in order to get something, you wont achieve anything. There is a saying: To want is to buy, but to live is to die. In other words, to truly live, you have to be willing to sacrifice something in return. Contrary to popular belief it doesnt take money to make money. I have never had a lot of capital to put down to start a business, yet I have already started quite a few profitable businesses in my life. So dont tell me you need money to make money, I know it isnt true. However, it does take sacrifice. You need to sacrifice something, whether it is your time, your efforts, your pride...arroganceignorance.ego. I know one man who borrowed money from a friend to start network marketing business. He is a millionaire today. I also know a man who agreed to mow his brothers lawn every second Saturday in order to get the money to pay his monthly product while he worked the network marketing business. He is also well on his way to becoming a millionaire. Im not saying you need to borrow money or mow lawns. Just decide how desperate you are to change your financial position. If you are desperate enough, you will be able to find the money, no matter how broke you are. Something that helps many people is finding what David Bach calls their Latte factor. He tells the story of a lady who came to him and asked him to help her financially. She didnt have any surplus money to invest. He asked her to log her expenses in detail for a few days. When he evaluated her expenses he found that she spent a few dollars on a latte on her way to work every day. That Latte was costing her hundreds of dollars every month! She broke the latte habit, and she finally had the money to start working on her financial future.
Nov 2009

I would like to give you David Bachs advice: find your latte factor, and get rid of it. Take that money and invest it in your own e-commerce and interactive marketing business! I dont have the time. Thats great! Thats exactly why Im sharing interactive marketing with you, so you can have more time! As an investor you are in control of your time. Investing is something you are can do part time or full time. It is something you can do from home, from the office, anywhere. I know many people are working so much overtime that they honestly feel that they dont have time to do interactive Marketing. My question is, when are you hoping for that to stop? You see, things wont change. For things to change, you have to change. Others have exactly the same circumstances, or even worse circumstances, but they are becoming successful despite those circumstances. Theres a couple I know. They used to work terrible hours. They left home at 5am in the morning, came home at 6pm, ate, and fell asleep in front of the television. They had a lot of money, but they werent free. When they were introduced to interactive marketing, they saw it as an opportunity to improve their time situation. They made appointments with people from 7 oclock to 11 oclock at night, sacrificing some sleep, but because of that sacrifice they are millionaires today, able to spend as much time as they want with their family, friends, on vacations, or looking at potential deals. Again I want to mention the latte factor, this time in the context of time. What do you waste most of your time on? Im going to venture a guess: The idiot box (the television) I have family that is very dear to me, but they are in an intense financial struggle. In an attempt to make things easier for them we introduced them to network marketing. They got excited, but never managed to do much. I then noticed that, whenever I try to make an appointment with them to help them build their business, they had something to watch on TV! Have you ever wondered why people enjoy watching the idiot box? Its because of the soap operas. Guess what? The reason soap operas like Second chance and Nigerian movies do so well is that people love to see people with lives more screwed up than their own. Then they can say to themselves, See, my lifes not so bad. Seeing someone in worse shape then they are justifies their less-than-successful lives, and they can feel good about themselves again. The sad reality is the average Ugandan watches television 6 hours a day. If you are one of the these average Ugandans, by the time you are 60 years old you will have wasted 15 years of your life watching television. Thats one fourth of your life! Do you really want to spend one fourth of your life watching other people-the ones on television who are working-getting rich living out their dreams while you are vegetating? For example some of you are so good at analyzing football to the extent that you know how much a footballer in an English football league earns
Nov 2009

per minute and you when he was transferred from this club to that club and at how much. But guess what how much do you have in your bank account. Another painful problem we Ugandans have is the time we spend in public houses (bars, night clubs, restaurants) to review an exciting day which includes deep conversations about the companys office politics and office love affairs, the delay of Microsofts latest operating system, and the unexpected delivery of more Bic pens as you are drinking alcohol. No wonder in May 2009, the World Health Organization ranked Uganda as the number one country in taking alcohol in the whole world at 17.6 litres a person takes on average per year. Let me recommend something. If you are addicted to the idiot box, as Randy Gage calls it, sacrifice at least one hour per day (at the VERY LEAST) cutting out just one hour of television a day creates an extra 365 hours per year (thats over nine additional 40-hour work weeks-2 months of additional time!) to spend on your business. After three years or so, you will be able to make up what youve lost by buying the complete DVD sets with a PVR Personal Video Recorder of all of the shows you ever wanted to watch, and you can watch them over and over again, all day long! If youre not addicted to the idiot box, find what it is thats stealing your time. For example is it further studies every evening, going to the gym, going to public houses, attending to social events like wedding meetings, this is a Ugandan thing for your information. Have you noticed that these are all activities that consume a lot of our time and drain our pockets as well? I have not seen Mr. James Mulwana and Mr. Gordon Wavamuno at wedding meetings or in public houses drinking alcohol. These fellows have no time to waste. Have you noticed its you poor people who have the time to waste on such activities? Believe me this business of excusing yourself as not having time to listen to a business opportunity is a poor mans excuse. I bet if you called Mr. James Mulwana for a business venture he will be very much willing to listen and attend the meeting. So you need to sacrifice that time thief. Remember that it takes sacrifice to achieve anything in life. The question isnt Do you have enough money, time, experience? but, Are you willing to make the necessary sacrifices? NEVER USE TIME AS AN EXCUSE. Life is time. The meaning of life is to enrich the lives of others. The way you manage your time is the way in which you manage your life. In fact time cannot be managed, but you can manage the activities in your life. The actions you take determine your results. Never never never use time as an excuse when it comes to investing. Everybody has 24 hours in each day included in the list is Bill Gates of Microsoft and the richest man, Donald Trump, Steve Jobs, Ted Turner, Our own Ugandan business people like Gordon Wavumono and James Mulwana and so on. But how comes they are rich and you are poor or a middle class struggling in debt. Losers blame time. Winners use their time to achieve their goals.
Nov 2009

This is one of those pyramid things. Yes, it is. Network marketing is one of those pyramid things. So is every other successful company on earth, as well as the government, the church, and other big organizations. The fact is that a pyramid is the most stable structure known to man. Every successful organization is shaped like a pyramid, with the owner / CEO at the top, directors under him, managers under them, supervisors next, and lastly the employees. Its an effective system. However, I know that most people refer to an illegal pyramid scheme with this objection. An illegal pyramid scheme uses the same structure and payment system. Theres nothing illegal about those aspects. The legal problem is with the absence of a real product. When you have a valid product being distributed in a network that is shaped like a pyramid, and people being paid for the number of people under them using that product instead of being paid for physically getting people into the pyramid, you have a legal network marketing business. In other words: the difference is in the product. If you are only being paid for physically signing someone up into the business, its an illegal pyramid. Its against my religion. What exactly is against your religion? Making money? Or telling people about something that could help them? Being a Christian, Im going to explain this using Christianity as an example, but the same principle applies to any other religion. God wants you to be rich. The Bible is full of verses regarding financial wellbeing. God doesnt want you to be poor. Let me ask you a question: Who put the gold into the earth? If your answer was anything other than God, you are probably an Atheist, and this question doesnt apply to you anyway. The point is, God put layers of gold into the earth. Next question: Why did God put gold into the earth? If your answer was To keep the ground from falling in, you are ignorant! He put it there for humans. That is explained in the third question: Why did God give humans the skills to get the gold out of the ground? My point is that God wants people to have more than enough. He guided His people to the land with abundance of milk and honey. If you have a religious problem with Direct selling or network marketing itself, think about this for a moment. Jesus walked around and spoke to many people. He chose 12 people to be close to Him and learn from Him; then He told those 12 to go out in pairs and tell others. Eventually, after His death and resurrection, He had around 500 people who saw Him before He ascended to heaven. His last command to those 500 was to go and tell others.
Nov 2009

Doesnt that sound like network marketing to you? So if Jesus chose networking to build His kingdom, what makes you think that network marketing is against your religion? Religion should not be a burden. I like what some pastors preach, the gospel of prosperity. Like Joyce Mayer, one of the Sundays I was seated watching LTV and she was preaching about Negativity She was so beat about people being so negative to life, not having dreams. I was so happy about pastor Joyce Mayers preaching. Then another Sunday I watched Pastor Alex Mitala (Ugandas born again leader) preaching about opportunity. And he was saying that never know when an opportunity comes but you have to take all that comes your way because it could lead you to a good life. Now what do these two have in common? They are preaching the gospel of prosperity unlike other pastors I have heard in the Pentecostal churches here in Kampala who call direct selling/ network marketing gambling, a cult or against religion in front of their congregation. Do these fellows know the definitions of a cult or gambling? What type of ignorance are we seeing here in these churches? I am not happy at all. These pastors are taking advantage of public ignorance. There is a great quote which says, governments best friend is public ignorance. For sure I never knew that this applied to pastors in Kampala. Here is another quote by Horace Mann Ignorance breeds monsters to fill up the vacancies of the soul that are unoccupied by the verities of knowledge. If you dont have any knowledge/ information about something believe me dont say any single word on something you dont understand. Even a fool who keeps quiet is considered wise. Also this is what great men had to say about ignorance. Nothing is more terrible than to see ignorance in action Johnann Wolfgang Von Goethe, A fools brain digests philosophy into folly, science into superstition, and art into pedantry. Hence University education. George Bernard Shaw. The only good is knowledge and the only evil is ignorance Socrates. Ignorance, the root and stem of all evil Plato. My people are perishing because of lack of knowledge Hosea 4:6 Do pastors say this to protect their congregation or they say it ignorantly to instill fear in their followers. Because ignorance breeds fear. Ignorance is bliss. One thing that runs to my mind is probably our country suffers a lack of a very important education called financial education. And this is unfortunately not taught at school. Our schools are just academic. People just have to study for the purposes of passing exams, no practice is done until when you get to the real world which starts examining you by what you were taught. They will just teach you theoretical things that stifle ones mind and channel you to one way which is employment and not business. Not knowing the following and how they apply is what is causing this ignorance, confusion and fear in churches and the general public. Words like leverage by using technology, cash flow, the different types of incomes, earned income from a job, passive from real estate, portfolio income from paper assets (stocks, bonds, index funds), residual income from network
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marketing businesses or franchise business you own but someone else runs, royalty income from songs or books written or trademarks or inventions, dividend income from stocks, interest income from savings, what are the advantages and disadvantages of these incomes, talk about Robert Metcalfes Law which states that the economic power of a business is the square of the number in the network, e-commerce, Direct selling industry, what is an asset and a liability, and how the world has evolved from the Hunter-Gatherer Age to Agrarian Age through the Industrial Age to the Information Age and what types of businesses will stand/ thrive in the Information Age. So next time you hear a pastor or a person saying that that business is against their religion, please kindly give them a pen and paper and ask them to explain in details what is against their religion in relation to direct selling industry. You will see the guy start blinking. And just believe me these people are ignorant about this industry. Tell them also to take a knowledge bath as far as financial education and let them carry out their due diligence. Start reading financial literacy books like INCREASE YOUR FINANCIAL IQ by Robert T. Kiyosaki the author of Rich Dad Poor Dad and also start associating with street smarts not school smarts who are ignorant about businesses but who think of acquiring more academic papers so as to climb the corporate ladder they can never own. To be successful in the real world you need to be more of a street smart than a school smart. In school, youre given the lesson first. On the street, youre given the mistake first and then its up to you to find the lesson, if you ever find it. The education you receive in school is important but the education you receive on the street is even better. You could be educated, but not financially educated or word literate but not financially literate. Anyone who is not financially literate cannot see into an investment. Most people leave school looking for jobs not business opportunities; they have been taught to work hard for earned income rather than passive income or portfolio income or royalty income. Probably you have seen parents abscond their child because he has gone into music. These parents didnt have an idea of what type of income their child is working for because royalty income has an element of passive and there is leverage. I usually see our local musicians like Bobi Wine driving posh cars around town. Why is it that a musician makes more money than a highly paid professional? The reason is that the musician has got leverage. His songs are being promoted by word of mouth, on the radio stations, on the TVs. So his sales increase exponentially as his song continues to be popular. If you compare yourself as a professional to a musician who has got leverage and royalty income which has got a passive element you may end up struggling as he/she is becoming more financially independent. If you look at direct selling industry, it harnesses the power of word of mouth; it leverages the internet, the relationships of your friends, and the time of each individual in the network. So you can end up becoming super rich. It requires big mindsets to see certain things at different angles. Otherwise if you spend your evenings watching the idiot box, your weekends socializing, and you
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seldom read or learn anything since you left university, sorry you may not know why the world is so cruel on you. You end up struggling financially and wondering arent there other means and ways of getting financial independence. Unless something changes inside you, chances are that you will live a life of financial servitude. The majority of the rich people I know read extensively including leaders. You very much know leaders are readers. Money flows to leaders. So if you want to be rich start upgrading your financial IQ and not the Academic IQ. There is a report which was showing the development levels. Africa was the last. Some of the reasons why Africa was last were because of the poor reading culture. The developed countries are at the top because the capital they have in abundance which is the human capital is highly knowledgeable. The word capital comes from a Latin word called capitus meaning brains. You board a plane going for a 10 hours journey and on your left is an African sleeping or watching videos or listening to music and on your right there is a white reading a book. In this report, there was a correlation between the reading culture and the development of a country. If your life is being ruled by a religion, cult or sect with its own notion of right and wrong, you are no longer master of your own life. Religions were organized centuries ago to establish a framework of behaviors for cultures that were not conscious enough to guide themselves. As with everything, there are positive and negative aspects to any religion that has developed for such purposes. Many of the religions, because they are created by human beings, are designed to control their followers by instilling fear in them. This is a terrible abuse of power and does not result in the balanced, harmonious existence that you desire. God is love the concept of fear is manmade. I dont know any people who would be interested in this business. Shame, poor you! Did you know that, if you dont know at least 6 people? Youre in trouble? A coffin has 6 handles... Scientists say that even the most introverted person influences at least 800 people each and every day, either directly or indirectly. That means that, whether you like it or not, you know people. You may not know hundreds of people, but thats not necessary. Most network marketing companies can be started with as few as 2 or 5 people. Some of the people that you do know will know many people, so make use of that! Apart from that, remember the self-development benefit of network marketing? If you really make use of that, you will find that you will have no problem meeting new people. In fact, I have found that everyone else feels the same way that you do they are looking at you and thinking, Why would that guy ever want to talk to ME?

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During my town walks I have tested this principle. I have found that even the most miserable-looking person warms up to you if you show them some friendliness first. Just a smile and a friendly wave goes a long way! Im not a salesman. Thats great! We dont want salespeople in network marketing. Sales is what you do in person, one on one. Marketing is sales done via a system. Let me explain. I had a friend who was a salesman. He knew how to close a deal no matter what. He did not accept no for an answer. He sold computer components, life insurance, broadband wireless internet services, and eventually he got involved in networking. The problem was that, after he would sell you something, you wouldnt be able to reach him until he had the next thing he wanted to sell you. Did you notice that I used the words I HAD a friend earlier? Now you know why. The point is that sales people hardly ever have the necessary skills or patience to do well in networking. Its not about closing the deal; in fact, friendship is more important than business. Ladies and gentlemen this is a relationship business. If someone says no, thats fine with me. I just want to make sure that they understand properly what Ive been trying to explain. No simply means get me more information (Remember its a truly an information age based business) or you did not explain very well or they are the kind who is stupid. If they say no, I accept it, because I honor our friendship. If they say yes, then you need to start supporting that person; another thing that sales people arent good at. At a computer store where I worked we had that problem. I was a technician. Whenever a customer would buy a computer, he would deal with a specific salesman. That customer would always go back to that one salesman. However, what would the salesman do whenever the customer came back with a problem? Im sorry, sir, I cant help you with that. Please go to our workshop and speak with one of the technicians. You cant expect any kind of support beyond the closing of the sale from a salesman. Now if you ARE a salesman and you are reading this, dont worry, you can learn the necessary skills, just like anyone else, if you are willing to. The other assumption people make is to think that networking marketing, since it has a word called marketing then I think I am going to be hawking around with products. Now, assumption is a mother of all f**k ups. This is a business were we share the business concept with people you know like workmates, friends, enemies inclusive, mothers-in-law and showing these people how to use the product and later train them to do the same. Take the product like a bonus. If you go in for the products then you a salesman and you wont last long in this industry because you have not duplicated yourself, if your target is the business concept then you are a NETWORKER you just have to harness the power of Metcalfes law. Investing is risky
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So is investing risky? My answer is absolutely not. In my opinion, being ignorant is risky. If you want to retire financially free, learning the basic financial words is fundamental. It is the average investor who would rather not study and would rather say that investing is risky that is in the greatest of risks. Never in the history of Uganda and the world have so many people bet their financial future and their financial security on jobs. That is risky only because these people know its risky and yet they do nothing about the risk. Investing in its self is not risky. But being financially ignorant and taking advice from financially ignorant advisors (Your poor brothers, sisters, father, mother and friends) is very risky. Not only is it risky, it is also expensive in terms of time. Millions of Ugandans spend their lives clinging to job security rather than seeking financial security because of financial ignorance. Because of financial ignorance many Ugandans cling to a small paycheck rather than seek the abundance of money that is available in this new industry called interactive marketing. Because of financial ignorance, Ugandans put money in their bank accounts and then worry about it being there when they need it. Because of financial ignorance, millions of Ugandans spend more time at work, making the rich richer, rather than spend their time enriching the lives of those they love. No, I would not say investing is risky. But I would say that being financially ignorant is risky and it is expensive.
FINAL THOUGHTS

If theres one thing you take with you from this book, it should be this: You can change your life. You dont have to be satisfied with your situation, your circumstances, your income. Its all up to you. Anyone can do e-commerce and interactive marketing. Anyone can be successful in this business. It doesnt matter what kind of background you have or what problems you have, I know people who have been worse off than you and they still did it. They are millionaires today. The only REAL question is this: Do you WANT to be successful, or not? Ladies and gentlemen this is TRULY the last left in a free enterprise world for people who are average and want to get their Dreams otherwise traditional businesses require a lot at the start in form of capital but in the information age you just need an idea which allows you to tap into the internet revolution (The Great Equalizer) Although the business has grown immensely, now is the time to get into the ecommerce and interactive marketing business. Why do I say that? I say that because the world has finally awakened to the idea that the Industrial Age is over and we are officially entering the Information Age. Big businesses such as General Electric and Ford Motor Company are Industrial Age businesses. Franchises such as McDonalds are transition businesses between the Industries. And e-commerce and interactive Marketing is truly an Information Age business the only in that category and whose time has come. So lets embrace it.

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Another challenge as I previously said its lack of Financial Literacy or being financially ignorant that is killing us as Ugandans. Its strange to me that people would invest their hard-earned money, but not invest much time in learning how to multiply it and these are people who would rather work hard all their lives than learn to have their money work hard for them. Spend your evenings watching television, your weekends socializing, and you seldom read or learn anything since you left university. To be a fundamental investor in the real world of business you need financial literacy. Financial Literacy is more than numbers. Financial literacy is knowing the words that point out to your brain the strengths and weaknesses of your investment. Financial literacy is knowing what to look at, things that average investors miss. For example most people think their liabilities are assets. You see a person struggling to get a loan to buy a liability like a car yet they are going to use their hard-earned income to service that loan on a monthly basis. Now what if the job goes, what happens? You can buy Financial Literacy audio CDs on richdad.com web site. Otherwise that is why people miss out on business opportunities in the Information Age simply because they cant differentiate the three general types of income, earned, passive, and portfolio. They cant know which of these is highly taxed, which one of these can apply leverage, which one of these do you have control, which one do you have money working for you and so on. Dont resort to rejecting an opportunity of a life time simply because you think it cant work without ever doing any research. I also argue you to have an open context and a flexible context. These are important. If you hear your context saying, Thats impossible, or You cant do that, or Thats illegal, or Thats too risky, or That would be too hard for me to learn, or Its a scam, or Its against my religion, or I have no time, or so on. Simply remind yourself to keep your context open so you can hear the content that is being delivered. Otherwise being financially ignorant is risky.
WHAT WILL YOU DO WHEN OPPORTUNITY KNOCKS? Why is it that some average people from average backgrounds with average educations are able to enjoy the many pleasures of life that come from financial freedom? Is it because theyre smarter? Luckier? Or harder working? NO! Most financially free people have one thing in common they were in the right place at the right time and recognized it! When opportunity knocked, they flung open the door and welcomed it with open arms! But what do the vast majority of people do when opportunity knocks? Well, by the time they turn the key of scepticism--- release the deadbolt of caution--- unlock the chains of fear--- and crack open the door their once-in-a-lifetime opportunity is gone! These

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people grow old asking themselves, Where would I be today if only I had answered the door? Well, opportunity is knocking loud and strong on your door right now! Open the door! Always remember that a wise person investigates what a fool takes for granted. Be wise and investigate the opportunity outlined in this book. Get more information. Learn the facts. And then determine once and for all if this is truly your opportunity of a lifetime! I wish you all the success you permit yourself to have!

Chapter #10 Recommended Reading

1. 2. 3. 4. 5. Rich Dad Poor DadBy Robert T. Kiyosaki Cash Flow QuadrantBy Robert Kiyosaki Retire Young Retire RichBy Robert Kiyosaki Guide To InvestigatingBy Robert Kiyosaki Rich Woman..By Kim Kiyosaki The Parable of The PipelineBy Burke Hedges Dream Biz.ComBy Burke Hedges Who Stole The American Dream? The book your boss still does not want you to read!By Burke Hedges Even a Moron With a Dream.By Pathman Senathirajah

6. 7. 8.
9.

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CONTACT US For more information, please contact the person who gave you this book. OR You can also contact Mr. Benon Kiggundu for comments, questions, and criticisms. Postal Address: PO Box 71595 Clock Tower, Kampala E-mail: Mr. Benon Kiggundu: benonk@gmail.com Mobile: Mr. Benon Kiggundu: +256 702 999 431

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If you enjoyed this book and know someone else who might benefit from it, please do not hesitate to send them a copy. Thank you! Benon Kiggundu

Nov 2009