Entrepinoy Adventures

Suds Opens 3rd Franchise in Calamba

2010-01-13T17:53:00.000+08:00

Suds Calamba opened on Jan. 8, 2010. It was a good blessing to start the new year. Darwin Paderes with his highly supportive spouse, Ethel, owns and manages the branch. Darwin actually decided to end his employment with a multinational company as an engineer to start his own business.

The main challenge we encountered at Calamba was finding a good location. There were a lot of potential locations but there were challenges relating to the set back of the buildings that prevented them from being leased. We have never faced this type of problem before.

Persistence and prayer was what solved the day, as the building in Hectan, which we overlooked, has been right under our noses. Darwin discovered it since his daughter studies in Kumon, which is nearby. It was a good thing too as the size of the space enabled us to combine his reception and operations.

In his first week operating the business, Darwin says his confidence has built up. The Suds start up team will stay with them for at least 1 more week to make sure everything's operating smoothly.

First Look at Suds Ad in Franchise Today

2009-11-05T19:56:00.000+08:00

This Suds ad will appear in Franchise Today, a free, monthly publication you can get at any Figaro's, Bo's Coffee, Kitaro, Jessie Mendez Salons.

The ad was finalized after a few tests we made on the pic, headline and copy.

I was surprised by what came out on top of most people's choices. It wasn't my first personal choice but this was the concept most people responded to.

The November issue of Franchise Today will be available by November 15 in the outlets mentioned above.

Suds Marketing - Let's Go Guerilla!

2009-10-29T18:03:00.000+08:00

This is a picture of the tarpaulin banner hanging at the Robinsons Place Imus footbridge. Imus was the first of our branches to find a suitable spot for marketing, kudos to Daniel (naunahan pa kami). At Suds Dasma, we're working with the local government to rent a space at the footbridge to display a backlit sign with a similar theme.
John and I are also exploring Tagaytay for some areas where we can do guerilla marketing (effective but cheap). Hopefully, we'll get everything set up by November.
Our thanks to Bing of Visual Fusion for a great job capturing the design we wanted.

Laundry Franchising - The Problem with Royalties

2009-10-08T10:58:00.000+08:00

On the extreme end of royalty fees, franchisors don't collect them. At the other end, well, there could be a problem too.

Suds started in 2003. By 2005, we have had franchise inquiries but we never took them seriously because of one thing: some of our friends who franchised popular laundry franchises were unhappy with their businesses. And it had a lot to do with royalty collection.

The problem? Royalties are too high. There were instances when they had to give almost ALL net income to the franchisor. In any business, that could be a problem.

Before we understood franchise structuring, we thought that royalty payments were arbitrary. But Jojo showed us that there could be a way for a franchisee-franchisor win-win program. We thought long and hard and came with a ground breaking royalty system - a system that adapts to the gross sales level of the franchisee.

Here's what's good about it:

1. We don't collect for the first 6 months. That's the franchise customer build up stage and it's very critical for them to survive this stage.

2. We start at 3% which is way lower than what our competitors charge.

3. As the franchise's sales grow, we set up trigger points where we increase our royalties to 4% then to 5%.

4. At a certain point, when sales continue to grow, we actually LOWER our royalty percentage as an incentive for good-performing franchises.

All these took a little number-crunching. We had to base it on the projected Profit and Loss of the franchisee taking into account all the expenses first. It's not arbitrary and its main aim is to keep our franchisee happy even if they contribute royalties.

So the next time, the issue of royalties come up, prospective franchisees should not automatically label it a bad thing. Royalties should help both franchisors and franchisees if properly structured.

God Bless!

Starting a Business

2009-09-07T21:36:00.000+08:00

I remember starting our business 6 years ago. I was inspired by Robert Kiyosaki's book Rich Dad, Poor Dad. I thought to myself, this is it, my way out of the rat race!

Fast forward 6 years and multiple bloopers, I'm still alive but man, that Rich Dad book really understated it (hahaha!). Not to take anything from that book but really, Rich Dad just tells you why, not the how. My wife and I had numerous challenges in starting a business the past 6 years. And though we experienced a lot of hard times, we would still choose the way we chose: business over employment. Our why's are all in Rich Dad. But for quick hows, especially to many of my friends looking to cross over soon, here's what I can share:

1. Build Inner Strength - Related to my blog about Giving Up is mental toughness. I don't think you can survive owning a business without developing mental toughness. And it's not about the petty problems either. It's about problems that are matters of life and death - of your business that is. Problems make you strong, there is no substitute for challenges to make you grow.

If faced with a huge problem, a technique I learned is: Don't think about the problem. That's right. Instead, think about the solution. For example, you have a money problem. Instead of thinking about what will happen to you when you don't have the money, focus your efforts on how much money you need and how you will get it. I try to visualize the exact amount I need and sooner or later, my mind gives out suggestions.

Focus on the solution.Focusing on your problems will inevitably cause anxiety. Focusing on the solution gives you a puncher's chance. Use your thoughts wisely.

You will be tested many times in your business life. If you fall, just get up and play some more. Also, you will need a good assist from above.

2. Pray like Jacob - There have been a lot of small miracles in our business life. Loans that get granted just in time, timely rebates and stuff like that. I know that no matter how hard I try, if I don't have the blessing from my God, I'd be doomed. But I also learned to pray like Jacob sometimes. That is, to knock, pound and shout to God to bless me. And to keep on knocking until He 'gives in'. I don't know if you can ever force God to give in but I do know that Jacob wrestled with an angel and did not let go until he was blessed. That sort of tenacity is needed in prayer sometimes. We are all children of God, and He blesses us. It won't hurt to be persistent as long as we know how to submit if the answer is No.

3. Choose a business with multiple markets - You are never helpless in a business. If business is slow, make sure you have a market you can woo. For example, in our laundry business, we serve mostly retail. But that didn't stop us from courting commercial accounts. Both of these markets are actually 'woo-able' but I like having the option to go out there and talk person to person to purchasing managers and get their big accounts.

Some markets are too focused on retail and walk-in customers. It would be good if your business gives you the chance to sharpen your man to man sales skills too. Which brings me to #4.

4. Learn to Sell - Most of us who came from the world of employment do not know how to sell. But selling in your store or when you are courting customers is a very important skill. And it's not hard to learn. The key is PRACTICE. Selling skills do not sprout overnight. And it is not dependent on how many books you have read. You have to go out there and sell. Be ready to be rejected, but be happy because it means you have room to improve.

The best way (and cheapest too) to practice selling in the Philippines is to join a direct-selling company. Yup. Those dreaded direct-selling companies and networking companies are actually great boot camps to get you in shape. You also get good trainings and get to watch good salesmen exhibit their skills. Join a company you believe in and stay out of 'hyping' which is actually just a form of lying. Sell softly until you get the hang of it. Build your confidence. And be sure that the sales process is successful for both ends. You have to be able to collect payment for you part. Selling is different from giving, you know.

You can also practice selling in your store. Make sure you are the receptionist on some days so you can get to know your customers.

5. Conserve Cash - One of my biggest mistakes when I started out was when I spent too much to beautify parts of my store my customer wont even see! Looking back, I wish I conserved the cash because I definitely had better use for it when we opened for business.

6. Look for the Market BEFORE you build your business - Most people look for customers after the store has been built and after the cash has been spent. Look for a business that has ready made customers waiting. If you are still looking for a business to start, take a look around. What do all these people need that you can provide for? Do you have competitors? Can your competitors copy your idea? Can you get people to be loyal to you?

7. Stick to One - In his great book: Growing a Business, Paul Hawken reminds his readers to not start multiple business at once. Just one. And put all your efforts into making that business successful. Robert Kiyosaki also advises us to put our eggs in one basket and watch that basket. I subscribe to this way of thinking and I find it better advise compared to diversification. Diversification is good advice for those who have a lot of money. If you have only 100T or even 1M, diversification will only divide your investments into mediocre parts, without real substance or promise for growth.

8. Know You are Capable - Never discount yourself. Instead, take stock at what you are good at and think of that always. Everyone can learn to be entrepreneurs. I often smile at people's comments that this person or that person is 'business-minded'. I have been introduced to 'business-minded' people who are only good at one facet and that is looking for the next opportunity. They have no focus and no sense of persistence at all.I should know, I have that streak myself!

While some of the most quiet people I know, though they don't know how to sell yet, have many ingredients that make them ready to own their businesses - they are tenacious, numbers-oriented and have enough willpower to carry the business through.

9. Choose Your Own Adventure - Businesses are as diverse as the people that own them. My experience in service and in distribution tells me I have much to learn. These two business types have different challenges and rewards (not all rewards are monetary). I think I would love to try out trading or import-export someday. Some comments:

Service - small capital needed.You meet a lot of people. Business could be prone to complaints.
Distribution - not much hassle but could need big capital to corner a market.
Trading - you can start small. Competitors can be a problem if they smell your success. You need to be innovative often.
Manufacturing - big capital needed. Marketing arm needs to be strong.

Choose a business compatible to your character. But be open to challenges of adding some skills too, especially selling. If you are contemplating going into business, don't keep a plan B when you start. Plan it well then burn the bridge. Make it your only option. I know it's scary but positive tension can do wonderful things.

Dedicated to my friends who are looking to start their own business. You can do it!
God be with you!

Recommended Books:
1. Rich Dad, Poor Dad
2. The E-Myth Revisited

10,000 Hours

2009-08-19T03:05:00.001+08:00

10,000 hours. If you are looking to be not just good, but elite, in what you do, this is a key.

I first saw this figure in Bo Sanchez's article about fulfilling your purpose. I thought it was just some random big number until yesterday. I was browsing the Phil Star when I saw Bill Velasco's column titled: Secret of success: 10,000 hours. In that column, he outlined the study that showed how elite athletes, musicians, even criminals logged more than 10,000 hours in order to become world-class in their field.

One thing that stood out for me:
GOOD = 8,000 hours
ELITE = 10,000 hours or more.

You can read Bill Velasco's article here.

I've always wondered what makes great men great. I knew it wasn't just luck or sheer talent that pushes them. I've read stuff about how Michael Jordan used to practice hours and hours everyday to be that great. Kobe too.

But 10,000 hours...That's a big price to pay. That's like practicing 3 hours per day for 3,333 days (9.1 years). Consistently. Even on Sundays. Wow, no wonder I never got close to good at playing the guitar.

This was really a big answer for me. It tells me, there's a price to pay to shine. And that price is TIME. Time you put into whatever you do. And it tells me, I got to have a 10 year plan (or a 9.1 year plan) to be elite and if I want to be world-class at anything, I have to start now.

Putting it together, Bo says you have to:
1. Do What You Like
2. Do What You're Good At (or Excel In).

And do it for 10,000 hours.

Time to go to work!

The Strength of Franchising

2009-08-09T17:36:00.000+08:00

Franchising is considered to be one of the best business inventions of the century. I have to agree. This year alone, Suds grew by leaps and bounds not by our effort but because of the efforts of many capable minds.

During the franchise system development, we were forced to stare at our systems and to project it so that both franchisor and franchisees will win. After all, starting up a business with hard-earned money is no laughing matter. Our consultants, especially Jojo, made sure that we understood what we were doing. I made a joke to Charm that with the work Jojo made us do, he ought to have been the one paying us! (just kidding bro, you were invaluable). Jojo made us work hard but in the end, we were happy with what we got... which was just the beginning of our job with Dee.

We asked Dee to help us clean and streamline our training materials and manuals. We never realized just how much work it takes to make a training manual. Kung wala si Dee, pupulitin kami sa kangkungan, literally. She had the ability to put the process into paper. Dee, her husband Richard and myself used to work with Intel. Looking at the body of work someone like Dee can generate, I now know how big time companies stay on top.

That's not to mention our franchisees John and Daniel who wasted no time in making Suds their own. It was touching but only up to the point where they see where we need improvement and that's when we go to work again. Thanks to them, we see how we can really make Suds grow. Their ideas are sometimes like ours, other times so far out I start to wonder how it would be if we have more than 10 franchisees?

But that's why I am so thankful. We could never have grown up so fast if these guys weren't there. If this continues, I think Suds will grow even more by next year.

All in all, I have to agree that the strength of franchising is in the relationships we form. I definitely feel that now that more capable people care about this business, God's blessings are pouring out. Though there may be more work ahead for all of us, it feels much lighter now that the load is shared.

Suds' First Franchise

2009-07-27T19:59:00.000+08:00

4 years ago, when we were still fledgling entrepreneurs, John and I used to take coffee together and brainstorm about business. That was when we were still engineers at Intel. Suds was 2 years old then.

Fast forward four years and 400 cups of coffee, John is now a franchisee of Suds. What a twist.
I am really thankful for John to have opened my eyes to the potential of franchising. Before, I used to dismiss the idea, I thought that it will never work and I never put much thought into it. But John’s insistence caused us to consult RK (Rudolf Kotik) and he told us it could be done. Thus the franchising effort was born.

What a year!

We started working on the system late last year. We were forced to look at the numbers from all angles by our friend Jojo V. and we were thankful for that because Charm (my wife) and I finally found a way that this might work WIN-WIN for all. Jojo never allowed us to compromise and I don’t know what the reason is but I highly suspect it’s because of his Peyups (U.P. grad) blood. For that, I am thankful.

Dee Fenix was a great help in our documentation effort. I don’t know anyone with a sharper eye. Plus, she has an unbelievable work ethic (Salamat gyud, Dee!). Dee and Charm’s body of work was something I couldn’t accomplish even if they chain me to a computer for year.

The next phase was looking for a spot. The first place John wanted was the Summit Ridge at Tagaytay. We all fell in love with that place but, sad to say, something about the numbers was not in place and in the end we had to give it up.

After Summit, we tried another space but it didn't seemed to be right either. And that’s when we decided to really scout Tagaytay. It was a decision aided by God because that was when we found a very good site at the Corner Stone building (operated coincidentally by a religious group, Focolare). In the end, John, Charm and I were satisfied that this could work.

After all the preparations and trainings and coffee (kape pa please!) we finally opened on July 12. It was a happy, happy day with all the staff feeling the satisfaction of hard work bearing fruit.

Somehow, I didn’t feel it as a culmination although in some ways it us. I felt it was a start of something big – for me and Charm and hopefully for John and Malou as well. I know the four of us dedicate this effort to Him, upstairs. His hand was there to guide us.

And to John and Malou, thanks a lot for trusting us (and for the delicious home cooking!).

Now the real work begins.

-Caloy Ang

Giving Up

2009-04-01T22:40:00.001+08:00

I was talking to a friend the other week. My friend was trying to start a new business selling office partitions. She had little background in sales and she was devastated when we talked. I asked her what was wrong and she told me she had visited 10 prospects and had not closed any deal. She was ready to quit and gave a litany of why she was such a loser and why going into this endeavor was such a bad decision.

If I haven't had any experience from Royale and Suds, I believe I would have just consoled her and encourage her to look elsewhere. But my reaction was something like: Are you kidding? Quitting after only 10 prospects?

In line with my character (as some of you have gotten to know), I told her to snap out of it. That her burden was all in her mind and that there is still a lot of room to improve. That she will close her first deal if she just works on it. It wasn't the reaction she was expecting but I believed she appreciated it.

One of the lessons I have learned for the past 6 years of trying to be an entrepreneur is that giving up so easily does more harm than good.

(Before I go further, please let me explain that this is not meant to offend those who have given up on networking. I meant to write about business life in general.)

The Quit Button - I forgot the title of the book I read a while back. But the author of that book said that everyone has a 'Quit Button'. When we were young, we didn't know what failure meant so we tried hard to stand up and walk even if we keep falling down. As we grew up, we discovered our quit button, and life got a lot easier.

Fear taught us to push the quit button more and more often until sometimes, we push it even before we take the first step.

What happens then is we stagnate. We stay were we are, always afraid to try something new for fear of failure.

Is this you? Do you give up very easily now?

The book really gave me pause and made me wonder how often I use my quit button. I realized that sometimes my fear programs do make me quit even if I didn't even fail yet. One fear I had was of being 'busted' in my panliligaws which was why I always tried to look cool to my crushes. (Buti na lang sinagot pa rin ako ni Charm.)

Is the quit button ruining our lives? I have seen many people give up on their spouses, give up on their kids, give up on their dreams, give up on their lives.

Solving the Problem - It's easy to solve the Quit Button problem: make it hard to press. If you only had one hand, place the button on your elbow.

In short, scrap Plan B. Burn the bridge!

When I decided to quit employment for good, I felt very nervous. It was like being thrown in the middle of a lake and not knowing how to swim. It was terrible! I was sometimes sure I would fail.But part of me knew it was do or die. It took me 3 months of uncertainty before I snapped out of it. Now that I had nowhere else to go, I decided to succeed in my decision. Fast forward 3 years and I'm still alive and kicking, thank God.

Now, Charm, my wife and I are in a critical point again. We know that after we decided to franchise our business, things would not be the same again. This is a bigger game now, and we could not afford to give up. Again.

Looking back, we never thought we would go this far in so short a time. There were sooo many times we felt like giving up, to sell our business and just go back to work. Or go back to Davao to recharge. I remembered times when we were on the verge of tears because of frustration and dissappointment.

Now, I'm very happy we decided to move forward. To continue believing in our goals, even though I think secretly each of us were reaching for that quit button sometimes.

The good thing is: the more you delay pushing that button, the stronger you get. I'm guessing someday, we'll learn to use the quit button wisely instead of just automatically pushing it. Of course quitting has it's uses, like when you encounter a mad dog, wag ka na lumaban, tumakbo ka na. But quitting should never be a way of life.

Keep on pursuing your dreams, guys. Whatever it may be. What's a few miles of thorns and hard rocks when you're going to a kingdom of carpets, huh? Konting tiis lang. At kung malapit na talaga niyo pindutin yung quit button, sabihin niyo, kooooooooooooooooooonti pa.

I sincerely believe God feels sad when quit. I also believe that He has given us strength to accomplish our goals through Him. But we need to rediscover the strength He has already gifted us, it's in there somewhere.

Hoping we all discover the true gems we are by not jumping out of the fires meant to purify us.

God Bless!

The Perils of Franchising

2009-03-28T18:00:00.000+08:00

As my wife and I continue to work on our franchising system for Suds (www.suds.com.ph), I continue to learn a lot about franchising. Franchising changed the way business worked in the world. The most popular model now is called business format franchising started with Ray Kroc and McDonalds. Now, franchising is one of the most successful models driving businesses to succeed.

But, not everything is nice and rosy though (and I don't mean to be bad news bringer, I just want clarity). Franchising has its pitfalls also. Here are some we should watch out for:

1. Pseudo franchises - Also called fake franchises. These franchises are not really franchises because they just treat the initial investment as an income stream for them. One of the most common signs of pseudo franchises is (get ready): no royalty fees. You might say, "but some of Royale's franchisors don't charge royalty fees!". And you would be correct. But this problem is not limited to Royale, it is actually a big problem in the Philippine franchising industry, most especially food carts. Most food carts do not collect royalty fees as a marketing come on. This is ok if they earn enough to provide good support to the franchisee. But in most cases, even outside Royale-accredited franchises, the support is just so and so.

The problem then becomes a question of support. Since most food carts are affordable and royalty fees are not collected, the franchisor does not have enough funds to support franchisees well. This is a case of you get what you pay for.

The take home message? Please be careful when advertising No Royalty Fees. It is a double edged sword and is becoming a common practice especially in food carts.

NOTE: Some Royale franchises DO charge Royalty Fees. Examples are: Laundry Gallery, Chickco Chicken among others

2. Generic Franchise Agreements - Another common practice. You wont believe how similar some franchise agreements are to one another and this is dangerous because each business is supposed to be unique. The franchise agreement is the synthesis of the unique points tailor fitted to a specific franchise. It is a franchise's main selling point.

It takes months to formulate your own unique franchise agreement and it is dangerous to use just someone else's to save on money. As a franchisee, you need to know how the franchise fee and royalty fees are computed; what are the potential capital demands while operating, what the franchisor obligations are and how the agreement can be terminated.

The franchise agreement is the source of the sales presentation materials so make sure you read the agreement before signing.

3. Hard Selling - franchising is and will always be a relationship-based business. Thus the franchisor should make sure to screen the franchisees. A good franchisor should reject some franchise applicants. Having enough capital does not mean you can automatically be a franchisee. One interesting tip a franchisor told me is that I should not approve anyone having a much higher net worth than me, a franchisor because of the danger of spying and technology theft.

Unfortunately again, most food carts do the hard sell. And this is the reason why there is a higher proportion of food cart franchises that fail. It is either they lacked support, lacked training, lacked focus or believed that the franchisor has the sole responsibility to make them succeed. All of these are warped illusions of franchising and is tarnishing the good franchises.

So what's going on here? Am I discouraging you when I should be inspiring you? My intention is to educate always. Here are my tips when selling or presenting franchises:

1. Learn to screen franchisees - If the person you are talking to just has money but has no interest, let it go. Make sure they really have the interest and focus to franchise and run their own business. If the applicant is too strong-headed (or hard-headed), stop. It's not worth it.

2. Show both sides - let them know the good and the bad sides. Don't promise magic bullets. Remember: Sipag + Tiyaga + Systema, they need to have the required sipag at tiyaga.

3. Stay away from franchisors with bad support - applicable anywhere. The best thing to do is to talk to many franchisees. If they are satisfied, then recommend the franchise. If not, stay away.

I hope, as always, that I have helped you through my experiences. Til next time!

2009 is here, are you ready?

2009-01-26T08:49:00.000+08:00

2009 began with a lot of challenging news for me. My former employer Intel Tech Phils. Inc. announced it's closure of the some sites, including the Philippine site. That in itself was heavy news. I had the chance to view last friday's issue of the Phil Star in the business section; it was said the the semiconductor sector is being hit hard. About 60,000 workers will be laid of in that sector alone.

I think it's now, more than ever, that Pinoys should consider learning business. Although businesses won't have walks in the park this year, owning your own enterprise, however small, can give you more options and control. Running a business will also be hard this year but unless we slow down to a depression, kikita ka pa rin.

I'm impressed with the way Royale is facing these tough times. They have just opened the Mindanao Headquarters in Davao and the office there was impressive even if smaller compared to our QC HQ. Product centers will also open in Paranaque and Tacloban soon.

Microsoft has said that the companies who spend now, even in tough times, will be the ones who will lead the way when the recession is over. I'm not sure how that translates to small businesses and I am eager to find out what the effects of Royale's actions will be.

Mr. C's decisions will embolden the leaders and members and in tough times like this, that's always a good thing. Sana nga tuloy tuloy pa ang paglaki natin.

Proud to be Royale,
Caloy Ang

Royale Advisory - Christmas Celebration

2008-11-24T04:56:00.000+08:00

Our Christmas Celebration will be on Tuesday, Dec. 16 6PM at the Metro Concert Bar.
You are invited to form a 6-12 member choir to join the Royale Christmas Carol Singing Contest with the theme: "Royale Oneness for Christmas is our Wellness".

1st audition is on Dec. 3, 4PM.

7 Reasons Why Royale Rocks

2008-09-07T10:55:00.003+08:00

Royale is now 2 years old and is still growing stronger. In my 10 months in this company, I have witnessed a lot of things. I truly feel that Royale is a very unique company. I heard one guy yesterday say that he thought he was allergic to networking but he felt different when Royale was presented to him, that is why he joined. I felt the same way about the company and I thought I would share some insights on what makes Royale unique. So, as your partner insider, I present to you 7 reasons why our company rocks!
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Reason 1: Our Chairman is a Capable and Willing Traditional Businessman

Most networking companies die in the first year. Some last 2 or 3 years but that's it. One common reason is that they were founded by networkers. This is a sensitive topic since a lot of people are successful networkers. But somehow, I have observed that the networking companies that fall fail because of 2 things: Greed and Inexperience handling money. When company founders experience success and are flushed with cash, they crumble because they are not used to handling tens of millions of pesos.

Bo Sanchez has a term for this: The Psychological Wallet. If you used to handling only thousands of pesos and you are suddenly given millions, chances are you will go back to your comfort zone and will have a hard time adjusting, especially if the transition is sudden. Sudden transitions from small money to big money occur in networks; it's called MOMENTUM. When the momentum stage comes, the company suddenly gets very rich very fast.

In his 2nd year anniversary speech, Mr. Castaneda mentioned his thankfulness that the company's growth has been moderate and controlled so far. This allowed him and management to build the necessary infrastructure to support solid growth in the years ahead. This includes hiring more employees, expanding the leased spaces, building product centers and improving the products.

On the product launch last July 26, his message was simple: DO NOT BE GREEDY. It was a clear reminder to Royale's leaders to stick to what made us successful: clear, transparent leadership and the drive to help others.

Mr. Castaneda owns a lot of successful businesses. He owns Punchline, Laffline and Metro Comedy/ Concert Bars, Nomu Japanese Resto, Blooming face and body center, an STI and a 7-11(his "smallest" business costing 15M to build). He also owns a lending company. He is a financial analyst by profession. And he earns somewhere between 300-500T per night according to the leaders.

I believe Mr. Castaneda is dead serious about making Royale a big success. He has the capacity and willingness to do it. He is in it for the long term and he definitely has the experience in handling money. Royale earned 50M last year and is on track to earn 100M this year.

So my friends, I think we are in good hands here. Let's continue to pray that Mr. Castaneda remains steadfast in his aim to help Pinoys become financially well.
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Reason 2: Builders, not Recruiters

There are 2 types of successful networkers: recruiters and builders. Only one of these experience true passive, residual income.

Let's tackle the Recruiter first. This guy is smooth, he talks very well and can sell anything. Once you join his network, he only has one recommendation for your plan of action - invite, invite, invite. Because of his inherent skills, he can build his network very fast. His earnings grow big, fast. But just like a field of cogon grass, they are shallow-rooted and die out at the first test of heat. When his network dies, he jumps ship and joins another network repeating the cycle. His downlines are left high and dry. And most of the time, he is the only one who earned big.

In my opinion, Recruiters are the reason why network marketing has such a stigma in our country. Two weeks ago, I had the opportunity to present Royale to a veteran networker who prided himself in being a leader. I was excited because it meant we will be talking the same language. His first question was: :Will you give downlines in both left and right groups? My internal answer was: This guy is crazy (recruiter, recruiter, recruiter).

Guys like him belong to an old breed of networkers. They want to get rich quick and don't have the patience of building a network of new relationships. For them, networking is a cold-blooded business. Since they are already 'tested', companies should buy their services to seed their networking. They are also known as Junkies, networkers who have no loyalty and jump from ship to ship.

Contrast that to the Builder. Builders take their time to develop the people they sponsor. They believe that Slow is Fast and Fast is Slow. Their plan of action is TRAIN first before DOING. Doc Butch is an example of a Builder. He once told me that networking is like planting Mangoes. There is a cycle: Plant - Nurture - Harvest. People always seem to forget the nurturing part. Recruiters follow the Plant - Harvest scheme (Munggo yun, hindi Mangga).

Builders' networks seem slow at first because each person sponsored, if willing, get to train. But networks like this are deep-rooted and can weather storms. Some people do fall off but here, in this system, a lot of leaders emerge.

And that is the key. Once you train and help enough people, the success follows. They bloom, you bloom with them. That is the forgotten essence of networking and the source of true, long-lasting passive income.

And if you look around Royale, you can't see a lot of old, 'popular' networkers. In fact, some old networkers tried it but found the growth too slow. If you look around the main office, most active members are new blood leaders who have embraced networking as it should be: a legitimate, relationship-centered business. There's nothing quick about it because it takes time to build leaders.

Most of Royale's leaders (Pres Juluis, Doc Butch, Jay, Elmer, Ariel, Maam Grace, Karen etc.) came from a company called I-Gen Portal. It was a networking company that lasted for only about a year before bickering weakened it's foundations (see reason #1). I heard that Royale's leaders were the loyalists to I-Gen. They never wanted to leave their downlines behind until the doors closed on them. I personally asked Doc what his commitment to Royale is and his answer was: "Hanggang padlock ako dito." If he is in for the long haul, I'm also in for the long haul.

Builders - these are the kinds of leaders our company is built on. I know most of you don't know them personally yet. I am hoping that through my blogs and emails you will understand them more and see what I see in them.

On my part, my commitment to you is: Hanggang padlock din ako. Walang iwanan!
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Reason 3: The Three-Pronged Attack

To start of this article, let me quote a book titled Law of Leverage by Rane Panaligan, a CPA:

"...Micro-franchising, home-based businesses and network marketing are the most viable alternatives and wealth-building mediums to survive the economic world." p.26

This book was first published 2004, 2 years before Royale was formed and yet if you read it, you will find that the 3 alternatives for small and medium enterprises are all present in Royale. This is no coincidence. Our Business Club is a well thought out, 3-pronged approach to present viable businesses for first time entrepreneurs.

We got Franchising, Direct Selling (a home based biz) and Networking options that can be done independently or at the same time.

Some people (members included) have the mistake of labelling Royale as a Networking company. While that is true, I think what they mean is that it is a Networking company ONLY. And that, is definitely NOT TRUE.

How different are we from pure networking companies? I had the pleasure of talking to networkers from AIM Global (networkers of the Alive brand) last friday. After the presentation, I only had one question to them: Can you present your company to cooperatives? Their answer was no, probably not.

Even though networking could be a good business to start, a lot of people have mistaken concepts about it. This is the reason why you cannot bring networking concepts to coops anymore. They hate it. I know because I have presented to many coops already and they always warn me that they dont accept networking opportunities anymore. But...

Take Royale to cooperatives and say this to the cooperative board of directors: We are from Royale Business Club and we would like to partner with your coop in providing livelihood/ micro businesses to your members. Present the RBP WITHOUT presenting the networking. Just the Franchises up to the Finder's Fee and Royalty Income. You will be surprised by the positive reaction of most coops to this.

The reason is most coops earn by lending to members. If the coop becomes a Business Club member and the coop members avail of coop loans to buy Royale franchises, the coop generates 3 incomes: 1. from the business loan interest, 2. from the Finder's Fees, 3. from Royalty Incomes of the franchises.

This is my proof that Royale is a chameleon. You can change the way you present it to suit your audience. A grocery or drugstore owner might be more receptive if you focus on the products. Conservative people might only want to franchise.

My point is this: Just because there is a networking option in the business club, it does not mean ALL members need to network to earn.

This means that what we really have are 3 weapons for income. A good friend of mine, Rolly Pagaspas put it this way: your franchise is a traditional business, your dealership is your distribution business you can do on the side and he calls networking "Sharing The Concept" - a business you can carry inside your pocket.

This is what makes the Royale concept unique. We got all the ingredients to succeed as entrepreneurs.

To end, let me quote from another book - Robert Kiyosaki's Retire Young, Retire Rich (p.295)

"If you are serious about retiring young, begin studying the different types of income, which will allow to become rich without working forever. Some of the other types of income are:

1. Residual income, which is income from a business, such as a network marketing business or a franchise business you own but someone else run...." (underlines are mine)

In short, mag Royale na kayo! We are on the right track.
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Reasons 4 and 5: Product and Franchise Innovation

This was supposed to be 2 articles but I thought the line of thinking was too similar so I bundled it together.

Product Innovation - When I became part of Royale September 2007, the Glutathione product was in its second revision. It was placed on smaller (and uglier compared to the current) plastic bottles and was soon replaced by blister packs in a box. Those had problems when exposed to heat because the aluminum in the blister pack heated the capsules which turned yellowish-brown.

Royale hired Lollie Sarmiento, and ex-Splash Corporation product developer who recommended most of the improvements in the packaging.

The result was a better plastic bottle package, better labels, Halal approval plus the Angelica endorsement. The rest of the products followed suit.

Now, the best selling Gluta Soap as well as the Kojic soap package was revamped to have plastic instead of the paper packaging. Also, the newest coffee product has packaging that can rival Nescafe or San Mig.

One thing that I like about the company is it's eye for continuous innovation. They never seem to rest, always churning out new ideas on how to make the products more saleable. They are also open to suggestions on how to improve some more.

Franchise Innovation - To sum it up: No Franchise fees, no royalty fees, no renewal fees. Most of Royale's franchises started as unknowns and so they had to innovate to get noticed by the market.

To do this, they removed most of the fees that standard franchising charges and instead offered the franchises as an all-in package. This simplified version was easier to understand for the new micro-business owner and help fuel Royale's franchising success.

However, based on my research into franchising, not charging royalty fees could be a double-edged sword to the franchisor as this severely limits his cash flow. I think that as more and more people know the Royale brands, the franchisors will introduce small royalty fees (e.g. Chickco Country Chicken now charges P1000/ month royalty fees).

At this point, I can see some franchisors already improving their offerings. JCFran has released The Noodle House HongKong Style noodles. While not yet officially a franchise carried by the Royale Business Club, JCFran proves that innovation is at work in their company.

Chickco Country Chicken also has recently hired Francorp to improve its franchise structure and also introduced financing plans for their new franchisees.

The spirit of innovation is evident in our products, franchises and IT systems. I am hoping that the company can improve and react fast enough to adapt to the challenges. But as for the past year I have been on board, I could say that the management of Royale never rests with their achievements. They are always pushing forward. And that is always a good sign.
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Reason 6: The People That You Meet Each Day

The transformation from anti-networking to pro-networking was a hard one for me. I still couldnt believe I lasted this long (1 year on Sep 9!) and yet the longer I stay, the more open-minded I have become.

I have met a lot of curious characters in Royale and I would like to introduce you to some of them.

There's Ate Lorna, the once hardware saleslady who now owns 3 Galaxy Burger carts. She used to be so shy because of her speech impediment but now, looking at her give presentations to many people makes me smile.

If Ate Lorna had a speech impediment, Abe's got it worse. Abe stutters and can't say anything straight. Hearing Abe stutter his way to a testimony in the PEC about how he got his cheque gave me pause. How can a guy who talks like Abe gather the guts to present - and succeed?

There's Ate Darly, ang Reyna ng Benta. She's a sweet 50 something year old government employee who likes to grab my elbow when she talks to me. Who whould know this lady earns 6 figures a month selling soap? :-)

Doc Butch just bought his dream car, a BMW Z4. He was already rich before he started networking. But looking at him work puts me to shame. I have seen this guy take 'lunch' at 7PM and for the past year, has seen him work to exhaustion. He owns 3 businesses but still works like a blue-collar worker.

Tony is one of the top 3 Distributors for Smart in Cavite. He turns over at least 30M worth of load each month, became a millionaire through Smart at the age of 22 (he made his first million in 3 months swapping sim packs back then). But he is one of the most humble guys I have ever met. He is also one of the leaders of Royale's Dream Team.

And you partners, I have enjoyed meeting and working with each and everyone of you. Meeting you really expanded my heart and mind.

Networking is a hard business because you deal with people but it's also a great business because of great people.

One thing that has cemented itself into my philosophies for the past year is that you make your own destiny. The people I have met didnt meet success in their first try. They too were rejected just like the rest. They were just mentally tougher.

I am now sure that God wants us to be prosperous. But we have to give something from our end. As Jay Ocampo says: God is a Multiplier. In the story of Elijah, the prophet asked the widow what she has left in her possession. She said she had some oil left. Elijah told her to borrow jars from her neighbors and from what little oil that was left, God multiplied it til all the jars were full.

Being with people like Abe the stutterer cements my belief that God indeed is a Multiplier. Abe took what little he has and gave it his all and he has success to show for it.

Looking at him makes me look at myself and find those little drops of oil that He can multiply. The people we meet makes us reflect on ourselves. Hopefully, they will continue to reflect what's good in all of us.

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Reason 7: Entrepreneurship 101

People who dismiss Royale as just a networking company miss an important point. Royale offers a chance for you to hone your business skills, especially those who don't have any business experience. Let me elaborate.

Networking = Traditional business? - I have been in the 'traditional' business of laundry and dry cleaning for 5 1/2 years now. The skills I needed to survive that long were: mental toughness, belief in one's self, marketing and basic math. I always say to my partners that business is just a reflection of you. Whatever your core beliefs are, they show up in your business. If you think 'pang small time ka lang' then you will never go big time.

What does this have to do with networking and Royale? Well, for one, it takes much much more mental toughness to build your own network than to build your own small business. The reason is, you expose yourself to more chances of rejection in networking compared to just being in your shop.

The same thing goes for marketing and belief in yourself. As I see it, networking is a springboard for people to develop critical business skills.

Businesses within the business - Another good thing about Royale is that there are opportunities that abound inside the club to do you own business. Consider this: you are a member of a club that contains THOUSANDS of business-minded people. What do they need???

1. Can you print marketing materials on tarpaulin and flyers and resell these to business club members?

2. Can you look for potential locations for franchises and make your own survey and sell these for a fee to potential franchisees?

3. Can you offer your own specialty entrepreneurship trainings to franchisees? How about technology-enhanced services on the web? Or the mobile phone???

4. How about if you talk to franchisors and offer logistical support in the provinces. You can act as the hub where they drop off their supplies and you deliver to franchisees in that province.

These are just ideas I got off the top of my head and of course we will need to really scrutinize the details but there's a lot of stuff we can cook up if we just get creative.

The thing is, Royale is all about creating the entrepreneur in you. Open your eyes and see that it's not just about networking. It's a goldmine of opportunities to practice business.

Royale Celebrates 2nd Anniversary

2008-05-18T21:28:00.003+08:00

May 17, 2008 at Crossroads 77:

Thousands of members celebrated the business club's 2nd anniversary. It was a joyous occasion with lots memorable and enjoyable moments. Among them:

The Prayer - I very rarely hear applause after a prayer. This one gave me goose bumps. It was unrehearsed but went straight to our hearts. I guess a lot of us felt it because a lot of us clapped. We clapped for our Ultimate Upline - God.

The Chairman Speaks - it was clear that he enjoyed the day as much as the members did. The usually reserved Mr. C spoke with vigour about Royale's plans for the future. What resonated to me during his talk was that he was thankful that Royale did NOT grow that fast which was the reason why the team was able to manage the foundation solidly instead of being rushed. Spoken like a true businessman.

Senate President Manny Villar is the Keynote Speaker - I'd like to blog more about this later. But one thing I am sure of is that if he runs for President, I'm voting for him.

3 Guys buy BMW's - I personally knew all three of them. But I was brought to tears during Jay's story. To most people, Jay is the comedian of the Phoenix Leaders. But nobody really expected his story to be so sad (but Jay, even if he was crying still managed to joke about it). Many times, he said he had to meet clients at a fastfood restaurant. One time, he waited til his client had ordered before he went inside so that he wouldn't be forced to buy food because he had no money and worse, he was hungry. So when his client invited him to eat, he said no thanks he was full. But suddenly, his stomach growled and the client asked: "Akala ko ba, busog ka?" Jay's reply: "Opo, acidic lang po ako."
He also told the story about being a safety shoe salesman and having his delivery of shoes scatter all over the bus when the driver braked hard. People were laughing at him and he felt so sorry for himself.
He tried so hard to succeed in Royale. His code was NO EMOTIONS when he was rejected. His reason was simple, he had no time to be offended, he had a family to feed.
I know Jay. I know he has a strong faith in God and in people. He showed his love for his wife by calling her to the stage.

I couldn't be more proud of a triumph of a friend and a good person. Mabuhay ka, Jay!

Anton Diva is a Guy - Now, for some comic relief. This guy sang like Regine Velasquez. He really sounded and looked like a woman. So when he said, in a deep, deep voice after singing: "Wala ba kayong mga kamay?" everyone laughed. He even invited another guy on stage and sang to him and teased him with a dare for a nose to nose. I kept shouting: "Dude, lalaki yan, don't forget!!!!" because the guy seemed to forget.

Pres Juluis presented the upcoming products - Man! we are in for a good year. There were a lot of exciting updates. An anti-ageing cream, an 8-in-1 coffee to be manufactured by Kraft (makers of the Maxwell House brand), a supplement for diabetics, new improved packaging for the best-selling Gluta and Kojic soaps, Fit and Trim will be redesigned and renamed to FitShape, Fiberich - a fiber supplement for the colon. These will be launched by July 26, 2008.

Plus, more effort will be focused now in advertising in the tri-media of TV, Radio and Print so that Royale Wellness and Royale Beauty will become household brands.

Pres urged us again to clap for God. I clapped til my hands hurt.

All in all, it was a good anniversary celebration. According to Pres, 2 years pa lang tayo, umpisa pa lang to!

God Bless!

Six Suggestions When Hiring Your First Employee

2008-03-14T00:06:00.003+08:00

Now that some of you have already committed to owning a franchise, I’d like to offer some practical suggestions in hiring employees that will not only make the work easier for you, they’ll help grow your business.

Charm and I have had some good and bad experiences in the hiring process. We have hired keepers and we have also hired pilferers and thieves. Hiring should not be guess work and I am hoping that by sharing what we have learned, you can hire good employees to man your franchises.

In hiring, I now follow a rule I learned from a book: Hire Slowly but Fire Quickly.

I find this rule very practical. In one instance, we did not fire an employee quick enough which was why that employee was able to pilfer more than she should have. Some other things to consider:

Give an IQ Test – not to hire geniuses but to look at the distribution of your applicants’ intelligence levels. There are IQ tests you can get from books. Make sure that the IQ test is general in nature and not focused on just one section like math or spatial reasoning (but it depends on what you are hiring for, I’m assuming this is for a food cart only). From my experience, applicants in the average IQ range turn out ok. I try not to hire those at the bottom and I always look for smart people because smart people with good hearts are simply put, the best there is (more on good hearts later). Also, let them do math without calculators because there will be a lot of addition and subtraction during store operations. Just the basic, no algebra stuff.

Look at the resume’s and biodata – and look for applicants who care about their applications. I don’t even read incomplete biodatas, those without specific dates. If they don’t care enough to fill up information correctly, then they are not worth hiring. Also, look at how long they have served in their jobs. Good employees usually last longer than 1 year at a certain job. While there may be a lot of contractual lately (jobs lasting 5-6 months), try to see if they have been renewed which is a good sign. Also, look for and ask about gaps in between jobs. Why were there gaps? Was it because they found it hard to look for jobs or because of other stuff? If other employers turned them down, ask them why. Also, require NBI and local police clearances always. Baka si Osama yang na-hire mo, eh di mayaman ka na.

Interview properly – In an interview, my goal is to make the interviewee feel at home and comfortable. I am not that particular about questions that they can make perfect answers to. I ask them stuff about employment, usually about their last job. But I also ask them about their daily routines. For example: A kid I interviewed watched a lot of TV which for me was a red flag. When I asked this kid to do an OJT, I was right, she wasn’t able to focus and got bored easily. Don’t just ask questions, get to know the person. Look at the person in the eye when talking, honest people usually can look right back. Look at their body language, are they too tense? You need calm people who can take customer complaints in stride.

Always do a hands-on test – IQ’s and good interviews do not compare to the information that you get when the person is actually on the job. You will see how fast they learn, how they interact with customers and other employees and most important of all, you will see who has initiative. A lot of good interviewers fall flat when it comes to initiative. In fact, more than 70% of potential candidates after testing and interviewing seem not so good after all once you tried them out. Try outs can usually last 1 to 2 days.

Some stuff I have observed – these are not meant to be generalizations, these are just based on my experiences. Feel free to test them.

1. Single moms are hard workers. I salute single moms, some of my most hardworking employees are single mothers.

2. Women generally are more diligent than men. Ewan ko ba.

3. Employees below 25 years are just too young. Some of them are good but they could be diamonds in the rough, but you have to spend some time polishing them. They have too many distractions going on.

4. Employees above 40 could be so hard wired already. In short matitigas na rin ang ulo. May sariling style na. Ayaw paturo.

5. Employees who respond to your text messages to confirm appointments are good candidates. You need guys who are responsive to you as their boss.

6. Look for leadership experience in college and in work.

And.. fire quickly - If you find your employee stealing or doing something that erodes your trust, replace him quickly. If there is suspicion, act quickly and investigate. Always be ready to lose an employee. DO NOT BE DEPENDENT on one single employee. Know the ins and outs of your business so that you will not be crippled if you lose a key employee.

That’s it for now. I hope I was able to help those who are already planning to operate their carts. More blogs to come!

God Bless!

Caloy

5 Stages of Truly Successful Networking

2008-02-29T22:42:00.003+08:00

Even though networking is hard to do, it’s potential as a business remains attractive to people who want to start up a good business with little start up capital.

We usually hear about the ‘extraordinary’ earnings of some people in network marketing. I previously thought it was all hype until I joined Royale last September 2007. When I joined, the biggest weekly check earned was just around P100,000 (in one week). Now, the record check is P390,000 for 1 week’s earnings held by Ariel De Leon.

These earnings may seem insane for most people, myself included ( I admit, these figures are still way, way above my “psychological wallet “) but I quickly found out among those used to networking that these are actually normal and expected.

I have no questions why network marketing can pay so big. The mechanism of removing middlemen from distribution generates big profits for a networking company (as much as 70% of the prices of goods go to middlemen such as supermarkets etc.). The profits are then distributed instead to the consumer-members.

But to learn about the income in networking is one thing. Trying to earn the big income from network marketing is another story. In the months that I have been doing this business, I did nothing but observe the top earners. At first I could see some obvious traits that separate them from most people but I suspected there was a deeper secret to doing this business. Based on inputs from the Phoenix leaders and other successful networkers, I now know there is. Here is what I have learned so far:

Stage 1 – Before You Join

Choose a good company – one where you can be comfortable endorsing the product because after all, you’ll be sponsoring friends and most of those who will join do so because they trust you.

Know who runs the show – I learned that a lot of network marketing companies fold because the owners and founders themselves are not used to earning millions. Some go corrupt while others just melt from the challenge. Make sure the owner knows how to do business.

Know the Uplines – Uplines are your guide. If the top earners in your company are no longer accessible, you might as well forget it. One reason I joined Royale was the attitude of the Phoenix leaders, particularly Doc Butch. Now, 5 months in, he treats my new downlines like old friends and it’s a great plus to have someone of that calibre mentor you and your team.

Stage 2 – Just after Joining

Decide – Most people get burned in this business because they skip this first step which for me is the most important of all. In Paolo Coelho’s book, The Alchemist, someone said to Santiago, a boy searching for a lost treasure that ‘if you really want it, the universe will conspire to help you”. There is something about being 100% decided to do networking, it helps you through the toughest part which is unfortunately the first part.

“The most difficult thing is the decision to act, the rest is merely tenacity. The fears are paper tigers. You can do anything you decide to do. You can act to change and control your life; and the procedure, the process is its own reward.” - Amelia Earhart

Know What to Expect – If you were a boxer in a 12-round match and your coach told you that your opponent will land jabs from the 1^st to the 9^th round and that you would get hurt but won’t be knocked out and that if you are still standing you’ll land some big blows from the 10^th to the 12^th and will win the match, will you follow the fight plan and still fight?

The nature of network marketing follows time compounding in which the longer you stay in, the better it gets (assuming you ARE pouring effort building your network). You usually don’t feel the effects of good income until around 6 months of doing the business. But when you start earning substantially, the income increases pretty fast. You just have to ride the challenge of the first few months and keep punching.

Build Your Foundation – When starting, it is advisable not to do anything yet. The first step should be to learn how to do the business – TRAIN. Some view it as a waste of time but leaders view it as a building your foundation. Training does not have to be formal. It could be as simple as meeting your upline often (1x/wk) and letting him or her guide you what to do.

Build your presentation materials. Attend good presentations all the time. Absorb everything first because you will need every ounce of information you get to build your people network.

Dedicate Your Effort – This business really needs mental toughness and perseverance. I discovered a secret that keeps me going: It helps if you dedicate the effort for someone or something that will move you to action no matter what the circumstances are. I carry a picture of my son always and when I feel down, I simply look at it and remember that I dedicate this effort to him, it works like a charm every time.

Stage 3 – Planting Your Seeds

Make Inviting a Habit – At this stage, think like a balut vendor. Balut vendors don’t just focus on one street or worse focus on one house! They go around the neighbourhood inviting people to buy balut. If one of your friends doesn’t want to listen to you, don’t force it, go to the next friend.

I have learned to always keep a brochure or pamphlet with me wherever I go. I’m always ready to invite whenever an opportunity arises. Sow your seeds all the time. I have had people whom I invited months ago join just recently. It turns out, some people take a long time to think and decide about doing something so just be patient and invite, invite, invite. Make it a habit.

“Keep on sowing your seeds, for you never know which will grow – perhaps all will” – Albert Einstein

Learn How to Present – Although invitation is the first step, networking is a business of presentation. Presenting the business is the single most important skill you need to really experience the potential of this business.

If you are a carpenter, you need a hammer. In networking, you need your clearbook. Some may think it is ‘baduy’ but I wonder how baduy earning 50T per week is. I’d rather be baduy and be financially free than ‘may dating pero walang datung’. Presenting is so much easier if you believe in what you are doing. This is why the first 2 stages of deciding, committing and building your foundation is so important.

You Will Be Rejected – This is the one guarantee you can count on. If network marketing has a tagline it should be: Do You Want to Earn a Million per Week? Then Get Ready to Be Rejected!!!! If you do not experience getting rejected doing this business, then you are doing something wrong. Prepare for it, expect it but don’t store it.Throw rejection away! For me this used to be the hardest part, I just couldn’t shake it off that easily. Getting insulted in the middle of a presentation is no joke. Now, when I get rejected or when people make me feel bad about this business, I just shake it off and pray. My decision to see this through is greater than any rejection thrown at me. Rejection simply means you can still improve. Remember, when you are rejected, just shake it off, vitamins lang yan.

“A rejection is nothing more than a necessary step in the pursuit of success.” - Bo Bennett

At this stage, do not expect a check.

Stage 4 – Nurturing Stage

Slow is Fast, Fast is Slow – Every time you sponsor someone, slow down. Being an upline is a big responsibility. You have to make sure your new downline knows what to do. Focus on each new member first and make sure they make the proper first steps. I have learned to sit down with each new downline and understand their goals and make them understand what they are going to be facing. Make them understand the real nature of the business, not just the rewards but also the challenges. Some guys can sponsor hundreds of direct referrals, earn big and then later on get confused why the big income does not come. Teaching downlines know how to do the business may be slow at first but this system pays dividends in the long run.

Increase Your Knowledge – When you become the upline, you become the source of energy, motivation and knowledge. This is where your long trainings come in handy. Read books on leadership, motivation, business and product knowledge. Ask your uplines if you don’t know.

Follow the 80-20 Rule – Look for downlines who are interested in the business and show commitment. Spend 80% of your time with these downlines. From a business and management perspective, you gain more by developing your performers. At this stage, your potential leaders will already start to emerge. Spend 20% of your time on the other downlines because you’ll never know when they will start to move.

Own the Business – One common pitfall I saw was the over reliance of people on their uplines. They let their uplines present and caddy them all the time. The top earners and fast rising stars are usually independent and treat their uplines like partners. These guys go their own way and treat the business like it’s their own business. Uplines are a great help especially if they are accessible but the absence of uplines shouldn’t be a reason for you to not do the business. Only you can be accountable for your success.

Look for Leaders – Leaders are one of a kind. These are the type of people who do not need any help yet perform greatly, show commitment and are always hungry for more. Leaders don’t emerge right away. According to the uplines, in the Royale Cavite group, it took six months for the first true leaders to really emerge. In a binary system, you only need 1 leader per side to really grow your network. One sign that you may have a leader is that your downline does not consult you but moves on his or her own doing the business. Don’t leave it at that, show your support.

[Here is the catch: It takes one to know one. Which means in order to have a great network, you need to have at least one leader per side of a binary. In order to find the leaders, you have to know what leaders are. In order to know what leaders are, you have to be one yourself.]

At this stage, expect small checks.

Stage 5 – Harvesting

At this stage you should have a pretty substantial network (at least 60 downlines). Here is what you should be doing to grow the network:

Develop Your Leaders – Meet them often. Learn to motivate them. The real leaders will probably surpass you in skills and it’s ok, let them grow. Most of your time should be spent chatting with them. But since actions speak louder than words, you need to be a good example.

Remember the FOLLOW UPLINE rule. Your downlines follow whatever positive habit you do and will magnify whatever negative habits you do.

But even if your upline is such a bad example, try not to follow that upline. Instead, follow your upline’s upline until you see someone you can emulate.

Enhance Your Skills – By now you should be able to present to a big crowd of 50 or more people. You should be the master of the MAM (Meeting After Meeting )and of Closing. You should radiate the confidence because more and more people will be looking up to you and following what you do.

Learn to Motivate – In the Phoenix Group, the leaders who know how to motivate best are also the top earners. You have now become the lighthouse of your group and there is no shying away from the limelight anymore. You cannot earn P100T per week while staying unknown and incognito. At this stage, the spotlight is on you, you might as well learn to shine.

At this stage, expect big checks that will continue to increase.

I really, really hope I helped in making you understand what network marketing really is. They call this the GET RICH SURE not the get rich quick business. I also hope that the Royale Business Club can help in making network marketing respectable again. It’s so sad to see a lot of our kababayans suffer financially when there is a very rewarding business they could do here.

Til next time!

The One Thing that Makes Networking a Powerful Business

2008-02-27T20:38:00.003+08:00

If you are looking to be financially free in a short amount of time you should definitely consider network marketing as a business. It’s because of one reason only: LEVERAGE.

No other business can compare to Network Marketing’s use of the Law of Leverage.

Before proceeding, let me explain what leverage is. Rane Panaligan, in his book Law of Leverage says:

“The word leverage came from the French word ‘levier’ which simply means to raise or elevate; to lessen the burden...to give a minimum input that achieves maximum results; to multiply time, effort and money...or the ability to gain more with less effort.”

A simple example of the use of leverage would be a door knob. You exert almost no effort turning door knobs because the knob is designed to multiply the force you exert in turning so that the mechanism opens without effort. Another example is the tire wrench. Have you ever seen bus drivers replace flat tires on their buses? They use very long poles to turn the bolts because if they use a simple wrench, they would not be able to maximize their force. Even if they don’t know it, they have just used leverage.

Simply stated, leverage makes life easier because it multiplies your effort.

You can use the law of leverage in personal finance as well. In fact, whatever you do be it employment or business, you can use it to your advantage.

Leverage in Employment – Leverage exists not only in business, it also exists in employment. People who have staff doing some of their work for them (we call them bosses) use their staff’s time to produce more. The staff can also employ leverage through the use of technology (cellphones, computers, equipment) to do part of the work for them. But the use of leverage in employment is limited.

For example: Most people who have no staff work 8 hours per day. It would be very hard to increase this to 12 productive hours per day. And the highest that person can go is 24 hours of work per day.

Leverage in Business – Most businesses can add to the 24 productive hours through the leverage provided by the owner’s employees. The more employees the business has, the more productive hours are generated.

For example, a businessman employs 4 employees working 8 hours per day. He can now count a total of 32 (8 hours x 4 people) productive hours towards his business and has now surpassed the limit of 24 hours he can spend if he did it all by himself. Robert Kiyosaki calls this the leverage of OPT or Other People’s Time.

Leverage in Networking – When it comes to the use of leverage, there is no other business that optimizes the law better than the business of network marketing.

For example:

If you spend 8 hours doing network marketing and you have no downlines, you get 8 productive hours.

[YOU = 8 HOURS]

If you have 2 downlines doing 4 hours per day, you get an additional 8 hours of productive work that benefits you and you raise the total productive hours of your network to 16.

[YOU (8 hours) + 2 downlines (4 hours each) = 16 HOURS]

If your downlines have 2 downlines each working 4 hours per day, you have now 4 more people X 4 hours resulting to another 16 productive hours. You now have a total of 32 productive hours and you have already surpassed the maximum limit of 24 hours you can use if you are simply doing a business all by yourself.

[YOU( 8 hours) + 2 downlines (4 hours each) + 4 downlines’ downlines (4 hours each) = 32 HOURS]

Now imagine having a network of 100 people spending only 1 hour per day doing the networking business. That’s 100 productive hours per day which directly benefits the network marketer businessman.

What happens if your network reaches 1000 people doing 1 hour of productive business per day?

On top of this, networking has a built-in mechanism that eventually turn it into a beast of a business if you are serious about it: The Network Grows Exponentially.

I thought I understood the power of the Law of Leverage when I read Rich Dad Poor Dad (by Robert Kiyosaki) but I never saw it in the light of network marketing. I now understood why some people earned millions doing this business.

Also, comparing network marketing with my traditional business, I saw that in my traditional business only one guy can use the law of leverage – me, because I own the business. In network marketing, everyone has the opportunity to use leverage if they just choose to. It is not an employer – employee relationship. It’s more like a business partnership. But here, instead of having just a couple of business partners, you can have hundreds, even thousands of business partners.

For those without enough capital to start a business, I can recommend only 1 thing: Start your own network marketing business with a reputable company. People always say “Sipag at Tiyaga lang Yan”. Kalokohan. My uncle is a farmer and he possesses all the sipag at tiyaga a man can have but he never seem to find the financial freedom he deserves. There is a missing ingredient to sipag at tiyaga.

It’s Sipag + Tiyaga + Strategy. And one strategy that is sure to work with Sipag at Tiyaga is employing the Law of Leverage. Parang kare-kare at bagoong yan, they go together.

My wife and now own 2 businesses. Our laundry business, has now a total of 150 productive hours per day after a span of 5 years of operations. Our network marketing business in Royale now has about 50 productive hours per day after 5 months. Both businesses took a lot of hard work to put up. And both businesses are very rewarding. But I must admit that the network marketing business has some characteristics that make it unique and exciting, thanks to the leverage.

One of the top earners in Royale said he has around 3000 people in his network. If those people just worked 1 hour per day, that would give him 3000 productive hours per day. That is like accomplishing in one day what an 8-hour per day person accomplishes in 1 year!

Network Marketing is a great business. And it is one of a kind when it comes to using the LAW OF LEVERAGE. If you have the right company to build a network for and if you know the right approach to building your network, it could become financially satisfying after a couple of years. Knowing this and setting my goal in accelerating my financial freedom, I think I can now accept being called a networker.

Next Blog: How to Really Succeed in Networking.

I Hate Network Marketing

2008-02-26T22:23:00.001+08:00

I used to hate network marketing.

I remember a lady going to our apartment asking if she could explain her networking business concept to my staff. I gave her permission but I stayed in the bedroom the whole time because I knew her real target was me and my wife.

Network marketing carries a negative connotation to it. And for good reason too. Most network marketing companies often hype up their motivational spills just to entice members to continue doing the business. It often ends up catastrophically because the business concept that is being hyped is at best questionable. I did some research into this type of business and here are some objections I usually hear:

1. The business concept involves selling some exotic product with exotic qualities. The main drawback of which is after a while, you begin to wonder what you are selling in the first place. In my research of networking companies, I recently attended a company selling some sort of green liquid which reportedly came from plants and was manufactured in Malaysia. It supposedly cures a lot of illnesses but I could not see any BFAD accreditation on its markings. As the guests tried the drink, I begin to wonder how in the world are you supposed to sell stuff like this? I don’t think I can. Mas maganda pa mag-aral na lang ng magik, kikita pa ako.

2. The hype is stronger than the product. At another seminar I attended, I found out that you have to shell out approximately P1,200 for a membership ID and a catalog. Wow, that is some expensive ID! But the members were going crazy about the compensation plan because trainors were hyping the product with technical terms (I heard polysaccharide being mentioned - di ba asukal lang yun?). I found out that a lot of members shelled out P10T-90T to buy products they could not sell outside. Tsk.

3. The focus is on the compensation, not the product. One networker came to our shop one day and pretended to ask about Royale. I found out his real intention was to sell me how much better the compensation plan his company has compared to Royale and proceeded to show me dollar signs everywhere. I told him politely that there is so much more than money in the networking business. There should be integrity too, but I don’t think he got my point. His company is now closed.

This and other horror stories are so rampant that people tend to bundle up all networking companies together and throw them in the fires of hell. I used to think that way too.

But 5 months ago, I was exposed to another type of network marketing by a businessman who was also into networking. Among his businesses: owns dental clinics, a tilapia fish pond, a canteen, an auto detailing and distributes Republic Cement. And naturally my first question was:

Bakit? Bakit ka pa nagnenetwork, nasisiraan ka na ba ng bait?

I got so curious, I researched. And the more I found out about the good parts of this business, the more I wanted to learn about it.

At naging networker na nga rin po ako.

Yup, even it meant going against the tide.

It was terrible! The prejudice against this type of business if overwhelming that people who are not prepared to do it awakes to a shock every time they try to do it.

I am often asked, why? Why did I do network marketing when I knew what I was going into? Why not just stay content with my other business and have my peace? “Akala ko allergic ka dyan??”

Well, simple lang at maganda ang sagot. Promise.

But I am out of time so I will write it in my next blog soon! Stay tuned!

The Art of Presenting

2008-02-22T15:25:00.002+08:00

Presenting is the lifeblood of any word of mouth marketing business. As those that are already ‘veterans’ in this business say: YOU ARE NOT IN BUSINESS UNLESS YOU KNOW HOW TO PRESENT.

That is easier said than done. Because according to statistics, the fear of public speech ranks second only to the fear of death.

There are ways to prepare for public presentations. The first step is to go 1 on 1. 1 on 1 talks are easier to manage because it is not that structured. And you can change your style according to who you are talking to. There are concrete ways to being effective in 1 on 1 presentations.

1. Don’t start right away – Take time to know the person you are talking to. What is his background? What are his priorities? What is his opinion about entrepreneurship? The more you know about the person, the more you can relate the presentation to his experiences. Spend time to chit chat because this is sometimes your one and only chance to do your research and increase your chance that can relate to what you are talking about. Of course, if you are talking to your best friend, then I assume you know the ins and outs of his outlook and attitude and you can fire away faster.

2. Sell a Solution – The real objective of your talk is not to sell a product or a company. Your one and only objective is to SELL A SOLUTION. This is why it is so important to have small talk before you begin the actual business presentation so that you will be able to identify problems. Be careful not to sell a solution which is not needed. I remember talking to a loading dealer encouraging her to add on to her income through franchises. But because I did not do my research, it was too late to find out she was one of the few who are content with what they earn. Needless to say, I did not close the deal. Remember, people do not buy things, they buy solutions to their problems.

3. Be Excited! – In college, I used to really get bored with my Physics classes. Physics was one of my favourite subjects but I could not bear to listen to a boring lecture for 1 hour, my mind was flying after 5 minutes. No matter how structured and arranged the presentation is, if your audience does not sense any excitement, you will lose their interest. In fact, based on my own experience, people are more interested in listening if you are excited and enthusiastic about your talk.

4. Pick the right time and place – Do not present at your guest’s office or home. Do not present during lunch break. There are too many distractions (kids, telephones, co-workers) for it to be effective. Do not present during reunions, parties, gimmicks and outings. As for big groups, do not present in general assemblies where there are other topics because your topic will be forgotten.

Choose a neutral place like a coffee shop and make your guest sit facing a wall if possible to avoid distractions. If presenting to a group make sure that the group understands that it will be a talk about business so they will know what to expect.

5. Look Successful – People are always judging others by the way they look. Use this to your advantage by dressing 1 level higher than the person you are talking to. No T-shirts and shorts please! If the person you are talking to will be wearing a polo, wear a long sleeved polo and tie if possible.

6. Use visual aids – Since presenting is your business then visual aids are your tools. Imagine if a person told you a business concept without any visuals. Or imagine describing the Red Ninja cart without pictures. It would be very, very hard.

7. Watch out for positive feedback – Based on my experience, people always begin with crossed arms, a sign that they have a closed or doubting mind. I just keep on presenting until I see some positive signs like uncrossing of the arms, raising questions or going nearer my presentation materials. You have to watch out when this happens because it means you said something that interested them. When you figure out what caught their attention, it is a likely sign that you have found the solution you should sell.

8. Make the presentation personal – People want to know who they are talking to. If you are talking to a complete stranger, you should share your personal stories. This helps them understand you more. The more they know you, they more they’ll trust you. Stories have a way of getting people to relax. If you can tell jokes, it’s much, much more effective. But if you can’t it’s better to just stick to stories. J

9. Practice, practice, practice – Your first presentation won’t be very good, this I can promise. But it is in this 1^st presentation where you will learn 90% of your mistakes. If you correct those, your second one will be so much better. Keep on going until you hit your 5^th presentation. By this time, you will have developed your own style. By the time you get to your 10^th presentation, it will be as easy. 1 on 1’s will practice you for small group presentations. Small group presentations will prepare you for large group presentations.

I’m hoping that these tips will help you do this business and other businesses you might be starting. If you really are nervous, try to start with someone close to you, just to get the 1^st one out of your system. I assure you, things will get better as you go.

Why You Should Consider Network Marketing as a Business - Part1

2008-02-11T12:55:00.000+08:00

Quick, tell me what comes to mind if I say this word: NETWORKING.

If I have been asked 6 months ago, I would have replied: SCAM! PYRAMIDING! FLY BY NIGHT! But if you asked me today, I would reply differently.

I no longer can trace why such a black eye exists for networking. But I suspect it’s largely because 1. It has been abused by illegal companies using MLM-like compensation plans for illegal purposes (e.g. Franc Swiss) and 2. People tried it, didn’t succeed, licked their wounds and added to the horror stories.

When I heard about Royale last May 07, I just raised my eyebrows, decided it was a scam and forgot about it.

5 months and a lot of text messages from Ellen (my sponsor) later, I was ‘forced’ to attend Doc Butch’s business presentation and 3 days later, I was a member.

It didn’t happen that fast. Before I became a member I noticed a few things:

1.Ellen seemed to be on fire. I see her on the bus going to Quezon City after her shift, she literally gets no sleep. But she seems to be always excited. Either she was on drugs or something else was going on. When I talk to her, I had the certainty she is going to succeed in whatever she was into. I seldom meet people as driven as her and I am always intrigued when I do.

2.Doc Butch is already wealthy. Not from networking but from his other businesses. I could not think of any reason why he would subject himself to the humiliation of being a networker.

3.The income they were generating was pretty impressive, even from a business standpoint. I thought if they could do it part time, why not me? I needed a challenge.

From the time I became a member, I researched about this business. And the more I know about it, the more I appreciate it. Here are a few things I have unearthed I would like to share to you.

HOW CREDIBLE IS NETWORK MARKETING?

For this part, I would like to quote Josiah Go verbatim. Josiah Go is a well known entrepreneur coach and teaches marketing in both La Salle and Ateneo De Manila Universities. He has written many marketing books. In one book titled Build, Grow and Sustain Your NETWORK MARKETING Distributor Business (picture at the top), he wrote specifically about Network Marketing.

“Let me start with some schools that have been teaching network marketing – University of Illinois at Chicago and the University of Houston in the United States. In Asia, the Asian Institute of Management (AIM) would regularly include it as one of their topics in their 2-week Marketing Strategy Course but the first known university in Asia that offered network marketing is located in the Philippines – the Ateneo de Manila University. They opened network marketing as a full semester 3-unit course in June 1999.” P.30

Wow. A full semester just for network marketing? That simply means, there is a lot more to learn about this business. And if AIM is teaching it, it tells us a lot about the credibility of using network marketing as a marketing strategy.

But why do network marketing at all?

Network marketing is a form of advertising. Instead of using the radio, TV or print, companies rely on word of mouth. They rely on people to spread the buzz about a product or company. Instead of spending on radio, TV or print advertising, they use the money to compensate people who do the advertising for them. Word of mouth advertising is no slouch either.

In Neilsen’s survey titled: Word-of-Mouth the Most Powerful Selling Tool released October 2007, word of mouth trumps all other form of advertising. To quote:

“New York October 1, 2007- Despite an ever-expanding array of advertising platforms and sources, consumers around the world still place their highest levels of trust in other consumers, according to a recent global Nielsen Internet survey.

Conducted twice-a-year among 26,486 internet users in 47 markets from Europe, Asia Pacific, the Americas and the Middle East, Nielsen most recently surveyed consumers on their attitudes toward thirteen types of advertising - from conventional newspaper and television ads to branded web sites and consumer-generated content.

"Advertisers around the world are able to reach consumers across an increasingly diverse range of media platforms," said David McCallum, the global managing director for Nielsen's Customized Research Services. "Even so, the recommendation of someone else remains the most trusted sources of information when consumers decide which products and services to buy...” source: http://www.nielsen.com/media/2007/pr_071001.html

NETWORK MARKETING VS PYRAMIDING

Because of the similarities of compensation plans used by legal network marketing companies and illegal pyramiding companies, it is no surprise people mistake one for the other. The illegal companies were quite good in blurring the boundaries between them and the legal companies. Some can even get SEC registrations!

There are multiple compensation schemes developed by network marketing companies. When Forever Living first became a hit, we were introduced to Stairstep Plans. Companies like GoldQuest introduced and popularized the Binary plan which was much more simple to understand. And there lies the rub.

Because of the popularity and simplicity of the Binary plan (Left, Right; Group A, Group B, etc.), most pyramiding companies also used it as their marketing plan of choice.

How do we distinguish pyramids from legal companies? There are hard and fast rules but there are some points you can check. Pyramiding companies usually:

1. Have no products. They just have some form of ‘membership’ or investment fee but you get nothing in return. Some pyramids do have products, but they are sold way, way above the price they sell outside. An example of this scam was the Prepaid Cards being sold at an absurd P12,000++ !
2. They promise BIG RETURNS WITHOUT ANY FORM OF WORK. You just sit back and let them do the work for you which is pretty tempting for most guys. Aside from big returns, they also promise FAST Returns on Investments.

People do make big money in legitimate network marketing businesses. But they do it through hard, consistent work selling the products and building their network of distributors.

WHY SHOULD I BOTHER WITH NETWORK MARKETING?

In business, you usually have 2 major components: Your Money and Your Sweat. Your sweat equity is the effort you pour into the business for it to succeed. I remember our first months in the laundry business. My wife and I did everything from washing, ironing, folding and packing to deliveries! I understood the importance of sweat equity back then. We poured our hearts out without taking anything back as salaries yet.

Some companies can succeed with minimal sweat equity and lots of money. Some businesses can grow big with little cash but lots of sweat equity and network marketing is one of them.

Robert Kiyosaki, in his book: Business School for People Who Like Helping other People (picture also at the top of this blog) lists the advantages of Network Marketing as a business:
1. It is a democratic business. Anyone from any and all walks of life CAN succeed in this business. No credentials needed.
2. It offers real life business education by requiring the distributor to learn street smart selling techniques (as opposed to learning in the classroom) before the person can succeed.
3. It is a business that pulls people up, not push people down. In networking, you can’t succeed if you do not help people understand the business.
4. Network Marketing uses the power of networks, just like any big business (internet, banks, gas stations etc.). Your success ultimately depends on how big you can grow your people network.

And a lot more values which separates it from most traditional businesses in its character.

Knowing these facts helped me understand this business more. And the more I understood, the more I appreciated it.

I hope this blog helped you understand some of the most common misunderstood aspects of this business. Since this is a business option in Royale, I’m hoping to write a multi-part blog to help you learn some of the techniques top networkers use in their success.

Till next time!

7 Ways to Help a Franchisee Succeed

2008-01-29T21:44:00.000+08:00

My friend Edwin and I met up last night to have a chat and visit a nearby Royale Business Club franchise. But when we arrived at the place, the cart was no longer there and in place a pawnshop was being constructed. We don't know what happened to it, it could have moved somewhere else but it really got me thinking about the possibility of losing a business.

I know this possibility is something very real in people's minds. I get asked quite a lot how much risk these franchises pose and if they are sure investments.

While I could not think of any surefire, fail-proof businesses, there are some things we can do to help small businesses take root and survive the first critical months. Some of these come from my experience, some come from business books I've read.

Here are some I would like to share to you.

1. Conduct a Survey
Before we started our laundry/dry cleaning business, my wife Charm made a simple questionnaire about customer preferences regarding laundry. I was surprised by the results but found out later on that they were indeed true. This simple questionnaire could be done for any small business. You can ask your target market if they would consider purchasing your product for the prices the franchisor has set. If you are considering food, you can ask your customers what time of the day they eat your product or if they eat it at all. This survey would give some supporting data on whether your hunch is correct. If you don't have any hunches, you should definitely conduct a survey.

2.Spread the Word
If your business has started, it's not enough to just operate it. You have to spread the word, tell people you exist. I remember the time when we walked house to house, knocking on doors to give away flyers, telling the people we exist. We chatted with potential customers and 80% of them tried us out. Another time, we hired students to hand out flyers for us, this time only about 2% responded. Try streamers, samples, stickers and other affordable marketing strategies to get people to know you. A good book that really helps in this type of marketing is Guerilla Marketing by Jay Conrad Levinson.

3. Deliver
Customers, especially us Pinoys love convenience. It's surprising to note that when you eat in the US or even Hong Kong fast food restos, you are expected to clean up your waste and throw it in the wastebasket. But not here. Here, we got guys cleaning up after us (isn't that cool?). Even if it's just a food cart, delivering the food to offices during lunch can be an effective idea. It expands your market and it beats your competitors who don't deliver.

4. Minimize Expenses
When starting out a new business, cash flow is very important. You can be profitable but still not make it because your cash is not returned (flowed) back fast enough for you to pay for your expenses. This is why cash flow protection is vital. To help you with this, you need to protect your cash vigilantly by minimizing expenses. Just like day to day spending, expenses can really pile up fast in a small business. It's important to separate personal spending from business expense so the business can be sustained by it's own profit and cash flow.

5. (Repeat) Customer is King
Hire someone who can chat with customers well. There is greater chance of success if your customers return for repeat business. And every business is a relationship-based business, even food. I think one of the reasons why Country Chicken is one of the best-selling cart in the RBC main office is Ate Bing, the saleslady. For me, she has one of the best attitudes among those in charge of the carts and she makes a lot of friends who buy from her constantly.

6. Act and React
Once the business is set up, continue making observations about your customers, location and competitors. The more you understand, the better your can fine tune your operations. If your location is not the best, maybe you can request for a transfer to a better place. If a competitor sets up nearby, here is where your customer service should come handy. Contrary to popular opinion, a business is a living, breathing entity and sometimes we need to constantly change the situation for it to succeed.

7. Treat it like a Child
My wife and I constantly refer to our first business, Suds, as our first 'child'. No kidding, it gave us lots of sleepless nights and challenges just like changing nappies for Eli, my son. But it has now reached a point where we could leave it for some time without thinking about it too much. I remember a friend who asked me how to set up a laundry shop and I asked him back who's going to take care of it. His reply was "Gusto ko, remote control lang". Ouch. I told him to forget about it. I don't think any rookie entrepreneur should ever leave his business at the control of others, it's a potential recipe for disaster. Be hands on at least until you get the hang of it. That way, you'll know if something fishy is going on when you leave it. You'll also get to know the biz like a person. And you'll know when it's demanding growth already. Someday, all the hard work will pay off and the business will take care of you.

Good Day!

News and Updates

2008-01-28T06:48:00.000+08:00

Jan 15, 2008
JC Fran featured in Jan-Feb issue of Entrepreneur magazine
One of Royale Business Club's franchisors, JC Fran Corp, was featured in the latest issue of Entrepreneur magazine. The article outlines JC Fran's philosophy of quality which resulted to a growth of 50 carts nationwide in just 20 months.

Jan 22, 2008
Royale VP Mar Mapala Interviewed in One Morning Show

Jan 27, 2008
Royale VP Mar Mapala and Franchisors (Galaxy Burger, TinyVille and First Blend Corp) appear in channel 4's The Young Once show.

Jan 28, 2008
Royale Business Club International Inc. to be featured today on IBC 13's 430PM news.

Feb 5, 2008
Product Centers to open in Dasmarinas (March 08) and Davao (June 08)! - It was announced in the Leaders' Meeting last Jan 31, 2008. The Dasma Product Center will be located either at Dasmarinas Highway or at Robinson's Pala-pala. Stay tuned!

Strategy Session - Become a Stockist

2008-01-23T23:14:00.000+08:00

Stockists versus Franchising

I have been asked may times which is a better option, becoming a stockist or becoming a franchisee. Before I understood the incentives, I thought that they should have been pretty even.
But given the incentives now, I would have to say becoming a stockist would give you better odds at better income.

For those not familiar with the term, a stockist is basically a Royale member who pays an additional 50T and gets 50T worth of Royale products. The stockists have bigger discounts than regular members and can thus sell to regular members for a profit. They can also sell to non-members.

For example: Royale sells the L-GlutaPower product for P1400 to non-members, P700 to members and P560 to Stockists.

Stockists have a number of advantages over regular franchisees:

1. They are mobile - they are not tied to a single location.
2. They require lower capital - only 50T to become a stockist.
3. They have a captured market in the form of Royale members in their area.
4. Most importantly, becoming a stockist increases your chance to partake in the profit sharing.

The Profit Sharing Program

Please make sure you read the incentives blog before you proceed. You can read it here.

First off: Please understand that each time you buy Royale in-house products, you get points. For example for L-GlutaPower, you get 275 points for the regular bottle and 375 for the L-GlutaPower700.

In order to be part of the Royale profit sharing program (PSP) requires two things:

1. You should consistently purchase products to maintain points on a monthly basis.
AND
2.You should have 2 direct referrals that also maintain a certain level of points monthly.

Let's tackle the first condition first: You should consistently purchase products to maintain points on a monthly basis.

If you read and understood the incentives article, you will find that maintaining the required number of monthly points could be pretty hard if you just use it for personal consumption. For example, for the lowest level (PSP level 1), you are required to maintain 3500 points/month. That translates to purchasing around 13 bottles of L-GlutaPower per month or around 10 bottles of L-GlutaPower700/ month. Unless you are a 'gluta junkie', you can never consume that much.

Here is where stockists have an advantage. They buy more products from Royale (and thus have more points) because they sell the products. 13 bottles of gluta for a stockist is very achievable.

Now for the second condition: You should have 2 direct referrals that also maintain a certain level of points monthly.

At first glance, this looks hard because you now have to make sure two other people are 'gluta junkies' otherwise you don't meet the profit sharing conditions!

Don't worry, I have talked to some friends and I learned that there are certain techniques you can use to achieve this. Here are some of them:

Tips and Techniques

1. Cultivate a circle of sellers and ask your direct referrals to do the same. - Here's how it goes. Say you talk to Inday, Tata, Baby, your neighbors who are not Royale members and who might not have enough money to become members themselves. Tell them you will give them discounts on Royale products. Your goal is to cultivate distributors. You sell them the products cheaper than the Standard Retail Price so that they can sell it to others. You buy more products, you get more points. Teach your direct referral to do the same.

2. Become a stockist, cultivate a circle of sellers and get a triple head - This concept is basically the same as above. The difference is that by becoming a stockist, you have a bigger discount and thus have a higher profit margin. Also, instead of depending on your other direct referrals to maintain points, you make your other 2 heads your direct referrals and distribute points to them for maintenance.

For example: Pedro is a stockist and has a triple head. His 1st head buys products enough for 6500 points per month. He assigns the 3500 points to the 1st head and gives 1500 points each to his other heads. Voila! Now you dont have to depend on your other direct referrals to maintain points. You have the control.

Another Tip: If you buy products worth 10,000 points this month. You can opt to use just a certain number of points for this month and 'reserve' the remaining points for the next months.

More Tips

1. Tap doctors and their networks. Some doctors actually prescribe glutathione to some patients.

2. Contact friends who are active in direct selling companies such as Avon, Natasha, Dakki etc. They might be willing to sell the products for you for the profit. They get some of the money, you get the points. Example: You sell L-Gluta for just P850 instead of P1400. They think it's a deal. You make P150 (for regular members) but get the complete points.

3. Supply to pharmacies. Our products are BFAD Food Registered and could be displayed and sold in pharmacies.

4. Tap the OFW market, especially Filipinos in Japan and HongKong. I heard they are avid consumers of our products.

As with other business opportunities, you have to act fast. The faster you establish your 'sellers circle' the better. Remember: your profit sharing depends on the number of months you consistently maintain your points. If you break your maintenance just for 1 month, your hard work will be erased.

If you are interested in this business scheme, contact me for more details. I'll be glad to help.

Good luck and God bless!

Royale's 2008 Incentives

2008-01-23T18:58:00.000+08:00

Royale introduced a lot of incentives for 2008. From just local travels to Tagaytay and Subic last 2007, we now have local and international travel, a chance to purchase a new car or house and profit sharing. The incentives were also designed so that new members could compete with old members (unlike the questionable category of just “top earners” before).

Disclaimer: This is not meant to explain all (too much details). Please visit the Royale Office or get in touch with me for more details.

There are 4 main incentives:

The Profit Sharing Program

International and Local Travel

Special Incentive Program

2008 End of Year Raffle

Some clarifications/ definitions before we start:

Personal Points – when you buy Royale Wellness and Beauty products, you get points. See catalogue for corresponding points for each product.

Network Points – You also earn a percentage of the points from the consumption of the people in your network.

Group Points – Sum of member’s personal and network points.

Corpo Accounts – Accounts with more than one person as an owner. Example: Phoenix Corpo is owned by 9 of our Phoenix leaders.

I’ll start with the simplest program

I. 2008 End of Year Raffle

What Can I Win?

i. Grand Prize - 50% down payment on a brand new Honda Civic

ii. 1^st Prize – 30% down payment on a brand new Innova

iii. 2^nd Prize – 20% down payment on a brand new Avanza

iv. 3^rd Price – a brand new Nokia Communicator

b. How do I Qualify? – Get raffle tickets if you become or sponsor/ refer a new member (2008 new accounts only), buy a franchise, buy 1000 worth of Royale products, become or sponsor a mobile stockist or product center (you get lots of tickets if you sponsor or become a product center owner).

II. Special Incentive Program

What Can I Win?

i. Level 1 – P200,000 towards the purchase of a new car or house and lot

ii. Level 2 – P300,000 towards the purchase of a new car or house and lot

How do I Qualify?

i. Level 1 – Have 350 Pairs in your Binary Network in 365 days after you join (new, 2008 accounts only).

ii. Level 2 – Have 700 Pairs in your Binary Network 2 years after you join (new, 2008 accounts only)

iii. If you reached level 1 and level 2, you only get P100T once you reach level 2.

Did you Know? – You actually have 2 networks working for you in Royale? One is your Binary ‘pairing’ network. The other, less famous one is your Unilevel Network. But I doubt it’s going to stay ‘less famous’ for long. Watch out for my article about your existing (yes, it is already existing) Unilevel network and how to take advantage of it.

III. International and Local Travel Incentive

a. Local Travel (Jan 01 to June 30, 2008 period)

Where do I Get to Go? – Either Palawan, Boracay or Bohol.

How do I Qualify?

1. Be a Top 10 Earner – Only personal, no corpo accounts are eligible. Must have at least 6 direct referrals. Must have 9000 personal points within the period.

2. Be a Top 10 Direct Referrer – No corpo accounts. Must have at least 30 Direct Referrals for the period. Must have at least P100T income within the period. Must have 9000 personal points within the period.

b. International Travel

Where do I Get to Go? – If Royale meets the 80M income mark (which we are on target for), we will be going to either Hawaii, Australia (on a tour that includes the Great Barrier Reef), Dubai (on a Safari), or 3 European countries.

How do I Qualify?

1. Be a Top 10 Earner for the Year – No corpo accounts. Must have 12 direct referrals, must have 18,000 personal points for the year.

2. Be a Top 3 Rookie of the Year – no corpo accounts, must be a new member joining in 2008, must have at least 12 direct referrals, must have at least 250T income and have 18,000 personal points for the calendar year. (Kayang kaya niyo to)

3. Top 3 Mobile Stockist/ Product Center – must have 1M of products purchased, must have 18,000 personal points,

4. Top 3 Unilevel Earners

5. Top 1 in Personal Sales for Royale In-house products

IV. Royale Profit Sharing Program – In a nutshell, it is a profit sharing program for people who consistently push Royale’s product through personal consumption or through selling to others.

Note: This program actually use formulas which I will conveniently leave out. But please make sure you get the details if you are interested.

What Do I Get? – you get to share 10% of Royale’s NET income with the other members who qualified for the profit sharing.

How Much are We Talking About? – Royale’s Net Income last year was at least 50M according to our president. I’m pretty sure this year will be bigger, but assuming it’s the same, we are talking about 5M divided by a few people.

How do I Qualify? – There are 3 levels of qualifications. Level 3 will have the highest income among the 3.

i. Level 1 – Maintain 3500 personal points/ month. Have 2 direct referrals who maintain 1500 points/ month.

ii. Level 2 – Gets 2x as much group points as a level 1. Maintain 5,000 personal points/ month. Has 2 direct referrals who are level 1s or has 4 direct referrals who maintain 1500 points/ month.

iii. Level 3 – Gets 3x as much group points compared to a level 1. Maintains 10,000 personal points/ month. Has 2 direct referrals who are level 2s. Or has 4 direct referrals who are level 1s. Or has 8 direct referrals who maintain 1500 points/ month.

Ano daw Yun? – Nakakalito ba? Ok, let’s backtrack. In summary, you have to be a consistent Royale product purchaser and must have direct referrals who are the same (consistent Royale product purchasers). You and your direct referrals must maintain certain monthly product points.

i. Case 1 – What if you meet the monthly product points but do not have direct referrals who meet the criteria? Answer: Sorry, you don’t qualify.

ii. Case 2 – What if you are a Level 2 and have direct referrals who are level 3’s? Answer: That’s good for you, you get a level 2 profit share. But if this happens to you, you should plan to be a level 3 to increase your share.

iii. Case 3 – What if you and your referrals consistently maintain points from Jan – Mar, did not meet the criteria Apr – June and then came back and met the criteria from July to December? Answer: Since one of the key criterion is you have to be CONSISTENT, once you drop off a single month, your record gets wiped off. But since in this case, since you were consistent again from July to December, you get 6/12 prorated profit sharing.

Royale Business Options Basics

2008-01-20T22:05:00.000+08:00

Royale's a good stepping stone for new businessmen

If you are new to Royale or is an old member but hasn't really explored what it offers, this blog is for you.

Most Royale Business Presentations focus on either the franchising aspects or the networking aspects. But there are really 3 main business options you can go into in the business club. These are: Franchising, Direct Selling and Networking.

Franchising

The Good - For people who really want to go into business but are not yet sure how business systems work together, franchising is the way to go. It's like a Business 101 practicum. You learn the basics of Operations, Margins, Accounting, Being a Boss. It also introduces you to the world of selling - softly.

The Not so Good - Franchisees usually leave the Marketing to the Franchisor which is really a waste of opportunity. Marketing is an essential aspect of business and is something you definitely have control over even if it is just small-scale. For seasoned entrepreneurs, franchising sometimes pose a challenge since you don't have all the control you need.

How to make it work - As with most businesses, location is essential. This is why Royale's franchisors' offer for a site-locator service is very useful in my opinion. Aside from a good location, it would really help if you do some form of marketing on your own such as go house to house to introduce your business locally. You can also expand your market by delivering to your neighborhood.

Direct Selling

The Good - The best part I see for a direct selling business is that you set your own limit. I have met people who earn 6-digit net incomes from direct selling. It also introduces you, sometimes harshly, to the wonderful world of Selling. Here, you cannot hide behind your office or cart while letting the brand or your employee sell for you, you do the selling yourself - which is a good thing by the way. If you want to go into business, you have to learn to sell.

The Not so Good - Direct sellers are usually go-getters but most do not see how business systems tie up together. Since you can succeed with a one-man team (yourself), it does not present a multi-faceted challenge of running an operation, marketing, managing staff and taking care of your brand.

How to make it work - Use the leverage of other people's time (OPT). You can form a team to sell for you, if you give away part of your profit. You earn less but offset this by selling more with less effort. It also pays to know your product very well and not just repeat what other people tell you.

Networking

The Good - Among the 3 businesses, network marketing offers the biggest income potential due to the fact that it heavily employs leverage. Once you take the time to build a network, income generated from your network base can become a good source of passive income later on. It also allows you to earn big money with little capital and also teaches you to sell.

The Not so Good - Networking is viewed with a stigma, which is really sad since it drives people away from a business that they could build big with little money. Also, the sweat equity you need to build a network could be substantial. It's not a surprise that only people who have learned to handle rejection can succeed in this type of business.

How to make it work - Develop your mental toughness and learn to handle rejection. Just like building a traditional business, you can employ systems in the people business to help make it grow. Train, train and train some more, most of us initially have very little skills to succeed in this business right away. It may look simple, but it actually isn't, just ask the millions out there who claim they got 'burnt' by this sort of business.

You can choose to do just one type of business or you can combine two or all three. Just don't spread yourself too thin. Remember: What you focus on expands. It's much better to focus on one than to do all and succeed in none, right?

In the next topics, I'll thresh out some details on what you can do for each business type to enhance your chances of succeeding.

Lastly, don't be afraid to fail. I read a quote before saying that failure is not success' enemy, rather one is necessary for the other. Do you agree?

Til next time!