International Management and Finance

How to build Online Influence without seeming to

2011-11-04T13:35:00.002+11:00

I have watched with interest how organisations that operate in the Social Media sector .. and I have some observations about how to define your strategy

Lets start with the function of Social Media ….

Social Media is not a direct influence or sales path …. it is a tool to build a contact .. to build a relationship and ultimately to add to an experience of your brand from which you can then leverage, while you continue to add value to the overall experience.

Social Media is the Internets replacement in this insular world for your sphere of influence … you community, your friends, and those organisations that you are interested in engaging with.
Social Media has been hyped up to the point where people are living their life in this cyber space instead of the real world … please take note … Social Media is not your life, and the most important people in your life, are not on Twitter ! Well they shouldn’t be … professionally speaking I believe many mature bricks and mortar organisations would be more successful especially on Facebook if they de-activated their account – their strategy is all one sided, and is all about providing the information that they believe is important – which is not how you build a relationship .. One thing, numbers of Facebook does not means that they are actually listening to you … but on Twitter … I believe they are more engaged and therefore interested and note, the un-follow button on Twitter is a heart beat away.

In the early days, very early days on Twitter, on another account I did an experiment with that exact scenario .. and then changed the nature of the feed .. the response was immediate … that feed lost a large number of followers .. and note people remember … that … if you don’t value them .. well enough said

Now lets look at how to build influence

It is built by engagement and valuing the people you connect with, but you MUST speak with your own voice and from your own values …. if you do not offer up something of yourself then what makes you different than the thousands of voices of the Internet .. that say .. buy this .. do this .. see here … your strategy must be to enhance the experience of your followers … their world is made somehow brighter by following you on Twitter or any other Social Media channel, in other words you provide something they want in their life.

I have seen worthy organisations who are so focused on getting their message across, without seeing the other side of the picture …. you need to involve people in your world on a more personal basis or should I say your persona …. which on the Internet is not the same thing .. well it shouldn’t be. Also if you are speaking as the voice of a organisation, you need to follow strict protocols of how you engage … what you say .. and how you say it … bring your personal views of what they did, or how they have treated you is counter-productive and will lose you followers.

There are specific processes and strategies to interest, to engage, involve the customer / follower, to retain them and use that connection as a leverage to a wider audience … but so many are missing the mark here …. to start look at your own interests and those sites you follow and ask yourself, why am I interested in this information, and how do they retain my interest and how do they interest me enough, that I want to re-tweeted my message to my followers … this is a critical point … to a large extent I choose the people I follow and likewise unless I believe they overall experience of my feed will be enhanced and will add something to my message … I will not engage … so I this is how I value them by not devaluing our relationship - and therefore I will only re-tweet a message and content that I can relate to … and I believe my “friends” for want of a better world will find of value …. basically because I do.

At the end of the day … you need to remember on thing .. this is Social Media … it is not a one way passive “relationship” as in Mass Media, it is or at least it should be a engaged interactive relationship, that value and engage with your people … to build a joint experience, and note joint means together …. do not make the mistake of seeing your followers as a means to an end .. as the equivalent of email fodder … value them, respect them and you will succeed … don’t .. well we know what happens if you don’t.

Introduction to Issues surrounding Engagement Consulting

2011-10-24T22:59:00.000+11:00

I was recently speaking on chat to a friend of some problems I had with trying to impress on
the company, the seriousness of their disconnect with their end clients who were, after all, you know real people… (like them?) it sort of went like this..

We are all much more creative than we give ourselves credit. Sorry for my disconnection with you … I have been trying every which was I can to relate and communicate to non-creative (C level Operations & Executive personnel ) to get them to comprehend what I consider as real business concerns … they consider as irrelevant emotive concepts like customer experience, engagement, feelings, and other more tangible concepts such as sustainable growth (that they understand) and future growth strategies that require innovative and out of the box thinking .. any real growth without innovation is a fantasy .. future real growth will come from disruptive products and services that fracture and re-define the markets
I am certainly passionate about those areas …. where the corporate world think they are operating in a vacuum …. the psychological aspects of individual C Level career success restricts focus, narrows perspective & may break engagement & understanding of customers – I think it more than breaks the connection with the customers … except for those very rare people who have their feet on the ground – not too many of those …
Its amazing the mess that this one issue is causing the likes of News Corp, HP, Netflix, Yahoo and the obvious one is the looming changes facing Mass Media … you know Film, Mass Media (TV)+ Cable + Newspaper + Magazines .. Amazon must be loving this ..

I am been quiet on the blog, because I have been trying to process the so many changes since the uncloaking of the morally reprehensible behaviours of News Corp and a separate free lesson on how to damage your brand and lose over a million of subscribers courtesy of NETFLIX, Yahoo and the bickering … and the fork in the road that HP find themselves — put there through their own bad strategic planning … and lets not forget Delta who are without doubt the singularly worst client and customer culture I have ever observed in a company ….. and finally what the death of a truly inspiring creator, Steve Jobs will mean for Business in general but for Apple in particular, so I will come back here … give me a while to compose my thoughts and we will get at it.

PerhapsI can point to a letter sent by a recent passenger of Delta by my friend Sandra Maxey … here is the link … @sandymaxey Letter to Delta Airlines CEO – http://bit.ly/qcPxoK

But a couple more points while we are here, I am wondering if we are all in the mess because of the MBA Program … it may make business understandable, but business is not a thing, each company is a life, made up of their own dreams and aspirations, full of individual people whom it might be nice to think are actually going in the same direction as the company, (most aren’t because of flawed Corporate cultures) and the most important aspect, their customers, who are all real people, who want to be valued and engaged … and refused to be categorized and sorted just so it makes it easier for the company to dissociate themselves from this truth .. companies are people … so are customers, people even own it … (maybe not directly) people manage it, operate in it, and who they sell their product or service to … you need to value them or basically become irrelevant .. you will cease to exist.

One last observation, the large aspect of the MBA attitude is one of expedience .. which is kind of abhorrent to me .. however that aside, recently I heard that Harvard and Wharton Schools were adding ethics classes to the MBA .. what a total wast of time, ethics, principles and integrity is not something you can teach, it is something that has to be part of your values, the actual make-up of your personality – if not, when you are put under pressure they (ethics) will not be your go to code of conduct.

So I would say again, to change the way the world thinks we need to teach our children what is really of value – and guess what its not money .. more later

Reader Engagement

2011-09-16T03:16:00.003+10:00

It does not matter how the content gets to you, by what ‘road” or in what form, whether in a library book, a hard copy magazine or newspaper, the web and its various forms of streaming … it has something in common … you have to have interest in the content, it has to engage with you .. and make you want you to focus and read on.

This has always been the case. How often have you picked up a book, looked over a few pages, and discarded it. Why ? because it did not engage with you, watched a movie, switched channels, went to sleep or worse still, walked out of a theatre .. or reading a web page and thought , no .. and moved on … read a Twitter stream and nothing, you either clicked good bye or went looking for content that you can relate to, regardless of how the content is delivered to you, how you view it or engage with it, it has to value you and engage with you as a person.

Think about this and we will come back to you … in the next blog entry with more .. of what I hope is interesting content

Socrates Fundamental Principles

2011-08-28T03:12:00.000+10:00

My aim is simplicity and therefore clarity.

I came across a happenstance, a link to my childhood, and a time when philosophy and ethics of living were a integral part of my upbringing, that moulded my character, my values and therefore my integrity – in other words all that I am.

Socrates’ fundamental principles
P1: We must always act on the basis of good reasons and good reasoning, not out of fear, mere self-interest, etc.

P1(a): We value the opinions of those who know, not the many

P1(b): The principles on which we rely must stand the tests of time and change of circumstances, and the conclusions we draw from them must be ones which we can be constantly faithful.

P2: It is not enough to live; we must live well, nobly and justly.

P3: We must never do wrong willingly, even in requital.

P4: We must always keep our agreements, provided they are just.

You know looking at these Principles, I do not think our current society complies with one of them .. not even close.

Engagement & Content

2011-04-30T17:01:00.005+10:00

Content of an interesting discussion …. starts the thought processes !

My thoughts at the moment, seem to be focused on “engagement”, the reasons why we aren’t and the bigger picture of flawed corporate cultures caused by basic systemic issues ... as I said in the feed yesterday "Everyone is connected, but are we really connecting ?” – I think not .. or worse if we are ... we are not listening. I have some views on the reasons for this ... but it amazes me that organisations including governments seem to just go through the motions and are seemingly indifferent to the reality .. which is why their stakeholders .. us .. are not engaged (normally) with their strategies ... this comes down to the education of the “masses” as well, as for the Gods in the marble halls – we are just too ‘aware’ for their own good.

However with the fragmentation of the mass market in all areas, including mass media, the outcome for me is that instead of organisations making systemic changes to move with the social and technological changes to improve their internal cultures and thus the engagement and transparency with “us”, they basically keep going the way they are going, and one day when the financial world is sorting through the carcass of what were “great” organisations (including governments probably) ... they will ask .. too late .. “How did this happen” ?

To cut a long story short, there has to be change in the way things are done ... we all need to realise that so far as the Universe is concerned we don’t amount to a hill of beans as individuals (but together ?? ) ... as Carl Sagan said in his own meditation ... we are just this little blue dot in a relatively small galaxy, within the infinity of the Universe, that’s the reality of our significance ... numberless blades of grass or the grains of sands on every beach ... in every world springs to mind …

So what can potentially makes us different .. one thing, which is “what if” we believed in engagement with each other, in true transparency (not just the words) we can become magnificent working together .. so what exactly is stopping us .. fear of “everything”, ego .. perhaps !

But we need to start, with one small step, how about within your own circle of influence, and then the circle will grow, and soon (this relies on engagement) .. we have the ability to foresee the magnificence which can be a social engaged one world … utopia, even possible ?? … it must be possible as I can see our potential …probable .. I hope so .. I hope I see the start of it before my time is over .. well this time around anyway.

There needs to be one thing, a world wide social revolution, that holds Governments at all levels accountable and likewise all levels of business … how about we bring all levels of abuse and inequity to the surface …. without all of the hype and b/s of the news organisations who are basically there to sell their own product, their content… so we come back basically to transparency and accountability … so long as there is a “rating” to be improved .. we cannot trust in the ethics of the organisation, who are only motivated by money .. for me (now) money is like the mythical pot of gold at the end of the rainbow .. when you get to it, there is nothing there … and I can tell you from personal experience that money and materialism does not make you happy … but I guess that is something you need to find out for yourself.

By the way, if I hear one more time, “We have always done it this way ... “ but this is my point exactly ... and here you are talking with some organisation that is in need of change, sometimes surgical change. In any organisation, you must be proactive and always be curious and strive for excellence. To drive policy … that is the function, or it is supposed to be of the Board / owner and the CEO .. to work on the question .. here is the direction we we want to go, how do we get there ? Too many CEO’s work in the company and therefore never understand the reality which is that their company is not entitled to anything .. they may have the best / greatest most exciting wiz bang product or idea in the Universe, but unless you really engage with your market, (before – you take it to market, so they are part of the process) – it will rarely succeed.

This post seems more about engagement rather than content ... so next time .. content for your publications ...

Ok .. time for my exercise …

You and Blogging

2011-04-27T16:57:00.002+10:00

I have been taking a lot of time and attention of the processes that Blogs and on Twitter, users there employ to connect, engage and convert readers.

I have noticed that most Blogs and Twitter feeds (business) are only concerned about serving themselves and seem to care little about attracting and engaging with "readers" with interesting content.

There are others who say this far better than I.

The first is Glen Allsop who writes for Copyblogger.com, his post

Why Nobody Cares About Your Content (And What to do About it)

I seriously couldn't say it any better myself.

Please take note …. the content of your blog has to matter to me … as a reader .. if it does not matter to me, well the next site is a click away.

I have other suggestions for excellent Marketing sales advice at the blogs of Seth Godin .. in particular the realities of the process at his link Seth Godin and Darren Rowse at true expert at this ... with over 320,000 readers can be found at Problogger.net
and an article of interest from his site about becoming a pro blogger
here

I would also refer you to the three basic rules of sales blogging, be the expert, the authority a reader is seeking by Attracting Readers, Engaging with them (with content) and Convert these contacts to sales …

I hope that this helps you move forward.

NZ Copyright Amendment Bill

2011-04-18T16:20:00.000+10:00

New Zealand has just enacted into law, the Copyright (Infringing File Sharing) Amendment Act 2011 No 11, Public Act, which requires the New Zealand Copyright Tribunal to oversee ISPs’ (Internet Service Providers) implementation of a graduated response system with subscribers found to be infringing copyright works over their networks.

The new law also provides for a “default” remedy for rights holders in the event that a court finds that the system implemented by the Copyright Tribunal is ineffective.

Not sure I agree with this, as where does the burden of proof lay. I have even had a letter from one of these cowboys accusing me of downloading a file, and I know I did not download the file .. so I say again, what is the proof required of the infringement process, or are you presumed to be guilty ?

Limits to Growth

2011-04-09T15:29:00.000+10:00

This is a post I wrote last year on one of the other blogs for which I write

Why are we here? And how did we get here… I think you will find that is the question that people should be asking now, and will be asking more and more over the coming years. Let us look at history just for a while, something which we almost never do, there have been Oh so many instances which we can point to where we as a species, did not learn from the past, and there are two culprits for this beside arrogance and all of the platitudes, like "it can't happen to me", "Think positive", "it will all work out" … this position we are in for one reason, the resources of the planet are finite, the call and demand for those resources by the ever increasing population is causing the very scarcity of the resources to finally be brought into focus… the old scarcity principle is well and truly alive, the trouble is this time it really is real.

Why are we surprised with this… since the Club of Rome was formed in 1968 and with their first major publication in 1972 was Limits to Growth – the Club of Rome, seems to have as its charter .. "to act as a global catalyst for change through the identification and analysis of the crucial problems facing humanity and the communication of such problems to the most important public and private decision makers as well as to the general public."

The original report, examines fives variables which are: world population, industrialization, pollution, food production and resource depletion. An update to the original report came out after 20 years, and another after 30 years (published in 2004). Another is expected in the short term, the 40 year report.

In 2008 Graham Turner at the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in Australia published a paper called "A Comparison of `The Limits to Growth` with Thirty Years of Reality". It examined the past thirty years of reality with the predictions made in 1972 and found that changes in industrial production, food production and pollution are all in line with the book's predictions of economic and societal collapse in the 21st century.

There is huge controversy about some of the claims made in the books, however in essence it sheds light on a simple fact, that resources are finite and are therefore limited. This is so important when we look at non-sustainable energy resources such as Petroleum based products (that currently underlies our entire way of living), rather than using sustainable resources for all our product needs.

This of course gets me to another issue, we need an alternative to petroleum products, not to convert basically many food based crops, such as corn etc, as a base for maintaining the status quo and further polluting the atmosphere, we need dramatic research into a sustainable ways to produce hydrogen, as well as any other form of sustainable ways to produce, portable and peak load electrical energy (the somewhat mythical cold fusion comes to mind), some positive early work is already evident - much more emphasis on this work needs to be shown. If we cannot find a sustainable energy source, what do u think will happen to the civilisation as we know it.. as one of the biggest problems with a global market, is how do you ship products from one point to another when there are no oil products to power the ships, road transport, farming machinery and of course airlines. It seems on the outside looking in , countries should be looking to provide incentives to their local industries to at least make them self sustaining in the essentials of life, food, clean water, and shelter – and being communal animals.. a community. Any thoughts…?

Motion Picture / Content Production & Distribution - the next 5 years

2011-03-29T02:10:00.005+11:00

My experience is in content production, distribution, Broadcasting and electronic Media.

Just doing some more research on the current “issue” or alleged issue of Piracy for the motion picture industry. The major players of which is primarily represented in the by the Trade Organisation the MPAA (Motion Picture Association of America, http://www.mpaa.org).

Now until recently I was aware of the issue, but not of the financial details, now after looking at the issue I am actually wondering if there even is a real issue, with the effect of the Global Economic Crisis being seemingly felt across every market segment imaginable, except the motion picture industry, which has according to their own figures had a 15% domestic increase and an International increase of 30% over the years between 2006 and 2010 … wow ! This despite the fact that the number of actual releases in theaters increased just 10.1%.

The price of the admission ticket, rose by 39.4% from 2001– 2010 and yet the cumulative cost of the CPI rose just 27.95% …. ?

OK all that aside …. the rise in the income 2008 – 2009 for theater sales can be expected, as if we go back to the depression, even in harsh economic times (because of the times in fact) the industry has been pretty much recession proof. The major demographics for the audience goes from 12 to 39 year olds, it is a very niche audience which in these harsher than normal economic times seem to be the only ones that actually have any access to disposable income.

I could go on and on .. however the point is essentially this …. Yes there is a problem with Pirating ( a small one ), but it is not serious, how can it be when year on year the income from sales of theatrical releases has increased far in excess of the CPI … the figures for loss of income presented by the MPAA are not believable.

The following from the immediate past interim CEO, of the MPAA, Mr. Bob Pisano is basically unsubstantiated rhetoric, more commonly known as spin, how can there be a serious problem with over time the income to the industry has increased 30% … such statements as “We will continue to work with our industry partners to fight for common sense ways, through legislative, enforcement and legal avenues, to vigilantly protect the creativity at the heart of our industry from theft.” These kind of statements are making the industry look ridiculous.

I do not agree with piracy, however, this mis-information, is on going and has not been substantiated, they are beat ups by what is essential a trade organisation with a big voice - these statements are not showing the industry in its best light … there are many other industries that employ far more people and families in the USA and worldwide … that actually are in serious and dire straits .. because they don't have access to the Hollywood Media their voice is lost. Many families on main street, also have no disposable income to currently invest in any sort of recreation, except free to air TV and maybe cable … remember cable, content on demand and it new variances will be the ever increasing choice for the distribution of content to the wider market.

There are a few issues that the MPAA and the industry in general needs to address… urgently.

The price of tickets is not sustainable, bearing in mind that on top of these are the travel, parking, food etc .. taking your children is not the escape it used to be … I took my son to see Avatar at the local cinema and it cost one adult and one child over $40, not including parking, vehicle .. drinks etc…

The lack of growth is also a social one, and manifests as a result of the niche interests of the population, in their online lives - there will come a time, and it is not that far away where people will not go to the movies in anywhere near the same numbers, it is trending down in real terms and will continue to, for lots of reasons, some social, some concerning access, transport and financial to name just some, hopefully before then the studios will have come up with a way to reach people directly via Video Streaming in their lounge rooms, using the dreaded internet … this is here now - so change your business model or else basically ... you have less than 5 years, probably less. I wrote about the effects of technology on the film industry over 12 months ago, and it seems very much to be following the path and the time frame suggested then … in Australia with the NBN (National Broadband Network) this is supposedly designed to provide fibre access with data speeds from 100Mbps to 1 Gbps ... this will have a major effect on the access to On demand services including rich and video media content in Australia.

The Film industry, as with Television needs to start to make relevant stories - content that people will in the short term at least want to invest money in to go and see … perhaps the new business model is to make low budget movies that are truly an escape from the current meltdown and the huge pressures on families just to get by … but hopefully not too many more regurgitated sequels !!! - mind you that would not be too bad .. if they had a good story, as one can forgive just about anything if the writer and the Directors are at the top of their game - unfortunately that is not the norm.

Also I have been saying this forever, content production is inseparable from content distribution and visa virsa … you cannot have one without the other. if you have funds you need to have been or will be investing in infrastructure for program distribution - either in the historical bricks and mortar theatrical release or the new technology content distribution infrastructure, by Video on Demand, Bit torrent or similar technologies ..the future is not with the existing venues as now, if you don't now make these strategic investments or at least strategic partnerships, the future is going to be a difficult place as you are going to be a poor position at the bargaining table when it comes time to negotiation in 3–6 years …. because then you will have no distribution infrastructure that you influence, control or own.

Note Change is the only constant, be flexible, be awake to the social & technologically driven changes thaat are all around you, and respond to your market, your consumers - your consumers are not the distribution companies, or the theaters, your consumers are the people on main street ... engage with them, find out what they want ... if you do not listen to their feedback or even make a channel to listen (really listen) then I do not wan to be the one to say I told you so, while I cry over the carcass of the industry that help to inspire my imagination.

Future distribution will not be by a Bricks and Mortar Theatrical release, ultimately the distribution will be in the form of data perhaps via a Peer to Peer network such as a Bit Torrent data stream ... think outside the box people . Further the expansion of major releases will become a rarity, not the norm, and hopefully Hollywood will actually become a mature business instead of what it appears to be at the moment, an ego driven teenager with entitlement issues.

The uptake of new movies will have to have relevance to the actual market, talk to them, the real users, use the internet, that is its strength, where relationships and communities are the norm, not the exception .. also personally I am pretty tired of the predictability of the content coming out of Hollywood .. what about an original story please - also how about appealing to some level of standard and not the lowest common denominator.

To expand on the above via a personal observation, there are some unique and profoundly creative talents in the film industry, starting with unique writers that are true story tellers, their connection with the viewers illicit profound emotive responses, exceptional Directors with intuitive interpretation, timing and insight, fantastic Cinematographers, gifted actors and support staff ... with so much raw talent to draw from why is it so hard to put it all into an exceptional film that does not necessarily follow the prescribed formula ... but that creates a real connection, and is not just some faded copy of a something that was once a profound original work.

Mainstream mass media including film, is normally a passive experience (except in the case of that true creative work), this mass media model also includes Newspapers, Radio, Cable / Satellite and terrestrial TV .... there is normally little to no interaction with the viewer, that is not where we are going, the future will trend .... in the longer term your content will need to illicit a emotive response, or if you cannot create a masterpiece then at the very least, interactive ....ultimately the technology and the data speeds will materialize to make this a reality ... unfortunately, the current trends for content is that it will come out of virtual sets, and actors as we understand them now may be a thing of the past, computer generation will be much more prevalent than it is even now.

Concerning the future distribution model, basically the Telco's that currently own the fibre, need content just as much a you will need their fibre for distribution, however I guess if there is no successful negotiation, between you, then I guess content of the ilk of “I love Lucy” and “A Wonderful life” will be the only content … for distribution … funny that.

I realise that if I was again actively involved with the industry, that is back in the club, after a while, perhaps as little as three years, this type of objective perspective would be nearly impossible for me to create, as unfortunately those in the industry have an total inability to be objective and relate to their viewers, their users .. they are too busy doing, but doing what actually ?

A revelation, perhaps even a epiphany will be come to light and be forced upon the industry sooner or later, as they clearly don't get it ... change is here, recognise it, or suffer the inevitable changes that will be forced upon you, which you won't like so much - it's like I say “Change is the only constant, how we experience it, is up to us” ….

Here is the link to the MPAA Theatrical Report 2010 PDF ….

Is Bit Torrent really a threat for Old Media ?

2011-03-27T02:47:00.006+11:00

Whilst on the surface the Bit torrent application using Peer to Peer technology has the capacity to do harm , again I look at the response to this in a productive viewpoint, how can the studios benefit from this obvious market potential …

For software applications, it is only a threat if the license key operates with the software – this comes back to the software providers own encryption and licensing software system.

For Video, it is obvious, from the numbers of users, it is well proven point that there is a market for TV shows and Movies … this can be shown by the number of Torrent participants in the data stream … why isn’t it an option to pursue, that the content producers offer a legal stream of product, such as the Australian ABC does when product is broadcast within Australia, OK it is downgraded and in Mp4 Video format, but for those who have missed the show, or want to keep it for their amusement, what is the harm ? – it is a domestic only quality. Alternatively I can view the content in high quality using the i-View program replay service … for a limited time ? This is excellent interactive strategy for a transparent relationship with your customer.

For those outside of the studios primary market, which is primarily that of the continental USA, it is impossible to gain access to the content legally – due to the Networks own licensing restrictions, people outside the studio zone, cannot view the product on-line … so the Bit torrent Software was born and is used as a response to this limitation. I am speaking primarily here of TV programs, the software allows someone to upload a program that was in the Public Domain, as it has been broadcast, so they can viewed in another geographic zone … In Australia none of the Video Streaming services allow access to the content for users in Australia, due to licensing issues, why is this ? Surely if I was subscribing to a US content provider – streaming content, my own internet id (Geo location) would identify what geographic zone I was in, and thus my licensing region, and thus the content licensee for this zone … in my view the money I pay for access could be quite easily sent to the applicable country license holder for a particular content, by the i/p address as a subscriber … you guys need to start thinking outside of the box, and there is a substantial increase in income that will flow once you do something so simple, for no appreciable increase in costs, as well as the increase in net due to increases in good will and lack of a confrontation relationship and the lack of a divisive enforcement arm – which lacks any credibility.

Stripping of a DVD to obtain the Video Stream is something that is another kettle of fish all together, as it was a licensed program, for one viewer only (household) – I can see the harm here, all though it is no way to take as credible the loss of income the studio pundits claim, you cannot view the numbers and directly equate them to lost profits. However I do not agree with the commercial use of the Bit Torrent service where people pirate these streams to produce pirate copies to DVD’s …. however from the research I have undertaken, talking to users past and present, for a single user .. I have been told by many people I have spoken to actually go onto to buy legitimate licensed products, using the downloaded product as a trial if you like.

The content creators themselves have used the Bit Torrent facility, in the recent past and continue to do so. Recently there was the much heralded release of almost the final installment of a major franchise – (one more to go) … a program full topped and tailed (a teaser .. less than 40 minutes long) was released onto the Bit torrent before the theatrical release date … I have written about this as a use by the studios, when it suited them as a “legitimate marketing channel”, they used the Bit torrent facility, that obviously created interest and did make a positive difference at the box office.

However, by creating scarcity, the studios, the content creators / providers have created a secondary market that is so substantial – what is their response, instead of being constructive and transparent, and working with the internet, to provide a access channel to provide access to this content, they go to these facilitator organisations that further exacerbate the situation, they troll the internet for alleged offenders. I have been so informed that the content providers / studios supposedly farm out their enforcement to self styled cowboys who I have been told send out unsubstantiated claims of infringement … for which they have no way of gaining anything positive from, except that it creates distance between the two parties and a them and us mentality. Nothing will be resolved … hopefully though, we are looking for a solution here … right ?

Surely if the studios, created a way whereby people could legitimately download a copy of the content, a downgraded quality for free or via something like an i-store or similar content provider at a reasonable cost of say $1 per TV episode (bear in mind there is no medium and the user pays for the data downloaded), the problem would essentially evaporate ….. or provide a encryption licensed video feed on something like a i-View format file, to provide the content …. or invest in a new Video file format that could not be hacked with a one user only encryption key.
Further to these claims of loss that is put forward by the license holders and their cowboys, this is substantially a fallacy, as it looks at the numbers of downloads and equates them to sold product at a sell price, this is such manipulation, as those downloads will not transfer to income unless the studio actually puts a 21st century procedure in to capitalise on this … if those that are seeking content could legitimately source product from the studios, free for a lower quality downloaded copy of pay for it at a reasonable price for a quality product then I believe the problem, much of these I am a victim mentality the content providers, particularly the spin the TV studios are pushing, is substantially a beat up and the problem would essentially evaporate.

If we view the actual financial performance of studio licensing, in context of the United States Balance of payments for 2008, 2009 and now in 2010 – you can see increases in licensing income for overseas content sales which has increased over these years, the is further explained in another post I will do on Content Production and Distribution .. the need to be ready for the future and the change now.

Incidentally there is only one major TV network in the USA that gets it … and coincidentally only one in Australia … that is making an attempt to provide access .. unfortunately the worst network is someone who should know better and I thought that they did

I wrote about this and other aspects of the affect of the internet on Old Media models in a white paper as far back as 2008 … with different ways to re-structure their business models even then, it is obvious that no one is yet ready to see a solution here and start thinking outside of the box now or then.

My view of the Internet and Older business models, is a couple of things, (1) The internet user demands a different relationship with content providers & (2) Use the internet to form communities, and build a sustainable interactive relationship – this is its strength (3) Please think outside the box … you cannot win this – make some money by approaching it another way … and what you can do best, that is to produce excellent content .

My advice to the studios, capitalise on the opportunity …. focus on your craft instead of sending all your profits to the lawyers.

Rothschilds - another flawed non-sustainable business model

2011-03-17T00:51:00.001+11:00

This is an old post of mine on another site …. but I thought it was worth a reprise here

Inspired by an article by Jesse Riseborough and Simon Casey NATHANIEL Rothschild's the future 5th Baron Rothschild says he now plans to build one of the world's largest coal producers. A member of the Rothschild lineage that helped bankroll Britain's war against Napoleon, he is leading a $USD 3 billion ($A3.12 billion) takeover that will create the biggest exporter of coal to China So what do you think the motivation of this is … perhaps greed and control …. by suggesting he could corner the control of the coal exports to China …. when China's apparent strategy is to use all the worlds coal before they have to touch their own …. because its cheaper …. and makes excellent strategy … because then they will have the option to burn their own coal totally within their own borders … and so much for the worlds need to reduce burning of fossil fuels. Most Indonesian coal (there are exceptions… yes but few) is generally not preferred for China in any case due to its high water content – so what is the real strategy behind this …? perhaps it is to subtly ( though there is nothing subtle about this) apply pressure to China to just suggest that he can for another advantage or have China as a partner in this venture .. mind you I work in commodities … I think he has a snowballs chance in hell of ultimate success .. going up against a sovereign state in this fashion with their essentially unlimited balance sheet – but as I said … perhaps this is the opening gambit, and this is merely a vehicle for another strategy, yet to be revealed. If China even considers such a block possible, does he really think that China will let someone outside of China control – where importing coal is seen by China as part of an overall strategy … people have to stop thinking that China thinks as we do … they don't …. their vision runs in decades not our baby steps, in other words the next 3–12 months where most of the western world seems to reside. If we continue down this road, China will have the last laugh …. they are using our greed and lust for money to win this particular battle … and the war … (as they see it) … please wake up and understand.

If this article is true, I would be surprised, as I really would have thought that the 39 year old Nathaniel Rothschild would have come up with a more innovative and technologically savvy strategy … such as control of essential earth minerals … necessary for us in today electronics or perhaps tomorrows energy sources or perhaps research into a sustainable way to make hydrogen .. which could provide a portable essentially non-polluting power source from fuel cells …. but no … with this dated coal strategy which would have been innovative 50–100 years ago .. I so don't think so – as it has so little vision and is so passe' ….. do get with it mate, remember what century you are in.

News Limited - the "Daily"

2011-02-05T11:29:00.005+11:00

I know that it is the essence of business to explore every option, but this niche opportunity that News is exploring to me verges on wishful thinking.

With the introduction of a new product for a very limited closed product market, namely for the Apple iPad. A very niche market … So what happens when a new hardware tablet is produced, a new “Daily” ?

A brave new venture to say the least, in my humble opinion the likelihood of payback and ultimate success is remote, when there is so much other content out there (all accessible via RSS and free),as well it harks back to the old media mentality of a closed channel for information. This is not how it works, and it is not viable to think that way anymore. Nor are pay walls … but that is seriously another discussion about flawed market strategies and tactics altogether.

In their favour News Limited / Fox will be able to provide a very wide and diverse content from news, comments and media content, but will that be enough, my view is that you cannot transpose old media structure on the internet, its about time that Fox and News Limited actually woke up to this. The internet is not about closed systems., something also which Facebook will learn, if it doesn’t evolve.

Concerning the future, if there is one, The Daily itself, will News have control over content – or will Apple have some say ? Is it going to be skewed or politically biased like other News Limited content ? Also advertising on a subscription service will be needed to create long term viability – would you pay for a subscription and at the same time be bombarded with advertising ? Or turn it around, offer the subscription to the magazine without Adverts or no subscription with adverts... and why only for the iPad .. ?

The only good things that I see here is that News is doing it at all - it will have to evolve or die (after MySpace and their fiddling and controls .. what of this ? ) the thing that is innovative about this new venture, is that a subscription service actually exists to provide content under the Apple iTunes / Apps store, now that is a a new horizon to explore. Good luck with that.

Sustainability, Media and the Internet

2011-01-28T00:40:00.004+11:00

This is the edited context of a message I sent to a contact of mine on Linked In ….

For myself I tend to write a bit in my blog and ask the simple question why do companies continue to do it this way … or that ? Whilst websites are “your virtual windows to the world” they are only part of a virtual strategy along with those such as Twitter (@intmf) and even Facebook .. actually Facebook surprises me, I went on there in the past few weeks for a personal page to stay in contact with my friends around the world and it is quite amazing the contacts you receive …

Organisations cannot ignore the internet – you do so at your peril.

I would say in passing I am not a fan of unsolicited direct marketing in any shape or form – even subscription based direct marketing has serious flaws in its business model, because it doesn't interact, it generally dictates.

The Internet is about building relationships and through that communities, too bad (to name just one, who should know better) Television, Publishing and Films (old media attitudes) just don’t get it, they need to realise (there are organisations that do) that this is the 21st Century (I say that lot) and start using it properly as a real part of their strategy instead of alienating your virtual family by using them as Email fodder.

I have written about this a number of times, old media needs to think laterally and develop a new business model, for the internet, especially in the world of copying of digital files …. they could make money out of this … but instead they make the lawyers rich and damage their brand and lose their business focus in the process – by trying to control the uncontrollable.

Old media, has thrown money at buying internet operations, to try and fill a hole in their own business model, however as one example only you just need to look at what a disaster News has made of MySpace by forcing them to comply with old media philosophy (about control – which is such b/s) as with the internet the truth is that no one is in charge. You are either on the internet or not .. trying to be on the internet behind pay walls will not get you a wide audience …. of those who will subscribe, many will have the the same antiquated values as your own, or those who relate to the scarcity of this “resource”. There are many ways to make money on the internet, advertising seems to provide a handsome return for the majority.

News’s idea of an Digital Newspaper subscription is likewise flawed – guys and girls get with it.

People do want to be a part of something that interacts with us, asks our views, nurtures and supports the relationship .. they do not want to be dictated or lauded over … these days people vote, in the idiom of Facebook by unfriending (disconnecting) you – all connections are about choice, and the normal basis of the decision is the status of the two way relationship. When people purposefully disconnect this seriously damages a organisations brand in the view of the ex subscriber, people talk about their experiences … but because there is no way to measure why people really disconnect (no there isn’t) even though people try.

Other organizations who are deeply involved with the internet and its technology are the legacy carriers who are stumbling forward and falling over continuously, in Australia one who comes to mind is Telstra – I talk about them here superficially – I hear from various sources that AT&T is suffering serious problems with their customer service and network as well. This may be similar to the issues with Telstra which from where I sit is evidently a lack of a strategic vision from the board and a very flawed organisational culture.

The only way to operate in the internet, or anywhere in fact, is to operate with ethics and honesty as your base values, with a total accountable and transparent culture actually giving a dam about your customer – too many organisations say they do, then like with the ANZ Bank – someone in their organisation didn’t get the “this is our new culture memo” ingrained into their own values and personal culture, their lack of personal integrity and values damages the organisations as a whole … this reflected very badly on the ANZ Bank especially after being recognised as a sustainable bank on the world stage.

The whole flawed philosophy of business is expedience …. whatever gets it done, the trouble is it doesn’t – these flawed strategies just widen the gap between the provider and the customer.

Anyway, way too much to talk about here … if you like we can chat one day or I can give you one of my blogs to check out .. (I have three) …

XRZ Time Wasters and Non-performers

2011-01-19T20:49:00.011+11:00

Telephone: +7-495-490-3271 | Facsimile: +7-495-490-6594| e-mail: info@xrz-gmbh.at | web-site: www.xrz-gmbh.at

Affiliate Company of XRZ GmbH Austria

We sent this buyer FCO's for two products, which was duly signed, sealed and returned, as being acceptable.

Then we sent them contracts which was again, signed, sealed and accepted without change. A ratified contract was then sent.

The next step for the buyer was to provide verification of the their capacity to close, buyer's had agreed to send a Non-Active RDLC

This deal was happening coming up to Christmas and the refinery close down.

The General Director of XRZ, a Dimitri Chernikov send us a signed and sealed undertaking on their letter head saying in part " .... We are ready to provide you with the supporting documents not later than 14/01/2011"

The next step due on 14th of January, was for the buyer to provide an non-active RDLC …. they did not do this ....

So I say in the deal with us they are time wasters. and non-performers.

So be aware and be careful.

Broadcasters need to change - to stay relevant and viable

2010-12-23T17:18:00.006+11:00

I wrote the below to a company in the UK about their response to a submission of mine.

“ I am not sure you will read this, but I will take the chance you may, I have been all across media, from Radio, Television and Content production, now more focused on strategy for current and future delivery systems, and how companies, particularly those former monopolistic media companies, such as Television will survive and prosper.

What I wonder, and perhaps you can enlighten me, why Traditional (old) media does not view the Internet as a partner instead of a threat, it is the ideal resource to allow them to form “true” partnerships, rather than the current viewpoint of most broadcasters where they treat these “communities” in anything but an accountable and collaborative way, they either totally ignore their feedback or treat them as a target for Email fodder... the potential for the internet to build support, communities and a future (though a more accountable and transparent one) for old media is there, it is profound, it just needs to be tapped with the right strategy.

Traditional (old) Media needs to be more open and inclusive, they need to provide content that their customers (which isn't the advertiser) want to view, value them and treat them with respect, why not to start with a treat, for example, like asking your customer base what they want to see, or how they see this character or that character or that relationship develop, this is the essence of the difference between old and new media ( although the whole idea of being tied to the end-user would be impossible and abhorrent for a really creative soul, Broadcasting is not about true creativity ... it is about putting bums on seats ), however if those in Broadcasting are not responsive with a collaborative strategy, traditional media will be about as relevant to the future of content production and delivery, as the current manufacturer of buggy whips are to mass transit.

Old media has to become relevant to the future, they need to stop lamenting about their past glories. For instance the Internet, will not have in the short term, the capacity to deliver product to all, as Television and Cable / Satellite technologies do...I wrote a paper about this and other new growth business models back in 2008, though currently some aspects are changing, conventional broadcasters do have a real positive, and that is unlimited “connections” if you like, the true mass media model, something that under current and short to medium term prediction of capacity, the internet does not - but that gives old media a breather, it is not a reprieve.

Broadcasters need to change direction, as I guess I am doing, re-inventing themselves in a new guise, they need to find a different business model – but I guess my point is, just as in the past, the dire predictions from the other old media such as Radio and Cinema has had to do, they had to find a different way to prosper, they will have to specialise, but first of all they need to listen.

When Rupert bought MySpace .. it was a disaster waiting to happen (and I thought so then when I wrote this and this about Fox and old media), MySpace is now floundering because of the stereotypes and the inflexible and unrealistic short term strategies that Fox tried to impose on the organisation – Fox, like many in the industry are just not structured or psychologically equipped to operate in the internet, as they like most conventional media is looking for the quick fix, the magic bullet, when there is none

They need to face and change, not only change to their structure and the organisation, but more importantly to their old viewpoints, a true change of culture is needed … do get with it, please remember what century you are in ( I am saying that a lot lately ), your consumers do not want what you think is best or spin, they want respect and to be valued, especially the future generation s – the up and coming new consumers, including my sons 'Y" generation … respect them, ask them what they want and listen and that will help you mold your future.

There is so much more to this .. but finding someone who will even listen, and is open to the inevitable changes needed, that will make them a force in the future is almost impossible to communicate to those who can make the change - now that is irony.

I don’t really want to be the one to say I told you so when it all crumbles and the jackals are there looking to the future picking over the remains of the carcass of old media.

Thoughts anyone – or send me an Email

Innovation for the future

2010-12-12T14:28:00.000+11:00

What is the best structure for innovation (not just research and development) within an organisation ?

I think it is essential for the future of any organisation to be looking towards the horizon and hopefully over it … so lets look how this sort of structure will operate within a organisation.
Well that’s the first point, I don’t think it should, I think you need to create a separate structure, including its own management structure to pursue innovation and excellence.

This structure has to be staffed with people who are dedicated to building a new future, but at the same time as being independent of the main entity, they need to be fully integrated from an information flow, point of view with the main organisation, so they are working in concert.

Also from an accountability and progress viewpoint. These need to be measured differently than in a normal organisation, you cannot measure productivity / progress and “performance” using the normal financial markers – the performance and their results have to be measured differently. I think their brief has to start with testing all of the “given” assumptions. Their primary function is therefore to think, hopefully “Outside of the Box” – to develop thoughts from the ground up (with few assumptions), in fact to learn what is possible, what will work and what will not, therefore the progress needs to be measured by what they have learnt, this is the measure of progress & performance. After all Edison once said he knew he would find the right material to create the light bulb, after all he was running out of materials that didn’t work .. even a negative result, is still a result which we learn from.

Telstra and the NBN

2010-12-11T09:43:00.002+11:00

Research , tells us that the sale of Telecom Australia which was established in 1975 (to eventually become Telstra) had been an issue of public policy debate for well over a decade. It was talked about in the late 1980s and early 1990s as the Hawke Labor Government implemented a micro-economic reform agenda that included the privatisation of a number of Commonwealth assets including AUSSAT, the Commonwealth Bank, Australian Airlines, the Commonwealth airports, the Commonwealth Serum Laboratories (CSL) and Qantas. Labor generally opposed any sell-off of Telstra, but did consider the splitting of Telstra on a number of occasions

From the attached link here we can see that the Australian Senate has passed the legislation to split Telstra into a retail and wholesale (network assets) parts, Telstra, the monopolistic legacy provider of all Telecommunications infrastructure in Australia.

To me this whole situation is moot.

The Australian Government sold Telstra when it went private under a former Australian Government, and the government was paid for this assets and the remainder of this , though there is not that is left (approx 10%) is owned by the Future Fund a government entity which was established in 2006, basically to meet the long term commitments of Public sector Superannuation payments…. see here.

My point is that we are using some of the same money that went into the coffers which we ere paid when Telstra went Private to exchange the Privately owned monopoly that was Telstra for another monopoly which is the National Broadband Network … the only difference being that this one is a government monopoly.

In a few years when the Government has spent tens of billions of our dollars on the NBN and its implementation, they will probably privatise it. Then essentially we will be back where we are now, with a Private enterprise monopoly – funny does anyone else see something here that looks like Telstra, feels like Telstra and smells like Telstra – ah… then its Telstra by another name.

Surely it would have been cheaper just to buy back Telstra, just wait a while, until its shares lose more value they will be giving them away with your breakfast cereal.

Or perhaps they didn't want the aggravation of trying to institute the massive structural and cultural changes that would be necessary for Telstra to change from the former monopolistic anachronism into a relevant, sustainable, transparent, accountable customer focused organisation, in short into a viable business model … Wow !! No wonder they are going for an alternative, actually I agree, it seems to be an almost impossible task.

For this to actually happen would perhaps require the board of Telstra instituting (and paying for) the changes, they would have to care and give a dam, a necessarily focused team would have to be imposed on Telstra – independent of the operational structure, and finally the will and commitment to spend many billions of dollars over perhaps 7– 10+ years. Then if successful, Telstra might have a possibility of resurrecting a worthwhile business model … this is part of what I do …. I am so aware of the enormity of the task. However there is no choice, Telstra has to be rebuilt from a organisational, structural and most important a cultural point of view, otherwise it will be as relevant to the future of communications technology as is the current manufacturer of buggy whips. Personally I see much of Telstra's problem is a lack of a coherent vision, including the active involvement of all stakeholders, until this happens Telstra will not be relevant and competitive - long term.

Such transformations are possible, I once had hopes that the culture of the ANZ Bank which I considered such a success story, however my previous article about Green-washing here - has shown me, that the changes appear to be only skin deep, the culture has not appeared to change as I had hoped... greed is still greed - a sustainable accountable culture does not seem to have taken ... very sad.

Well back to the article, I foresee a long term career here, as after working on Telstra for about 10 years a few short years later (or even sooner) we would have to do it all over again, to refocus and change the culture of the NBN after it goes back to private ownership …. so I could move from Telstra to the NBN … to institute similar organisational and culture changes …. then I could retire and write about the experience ... but what an experience it would be.

Does anyone else see a cycle here…. ? The real problem is that these decisions are not driven by anything other than incompetence, short term strategy, expedience, and ego – after all, they are politicians. Could it be that the Labor Party is trying to correct the fact that Telstra was privatised in the first place ?

Essentially the problem is that nobody learns from the past, they always think this time it will be different …. without a underlying commitment to an ethical and sustainable culture as the basis for the paradigm, our egos, will screw it up … do you think it is possible for us to put aside our egos and actually work together … pretty please ?

Tags: Telstra+and+the+NBN, We+don't+learn+from+the+past

Oil Buyers - Time Wasters

2010-12-10T15:55:00.000+11:00

MR. ABDULLAH KURSAD DARCIN
Director
DMS GRUPPE LLC AG

and

DMS GRUP YATIRIM VE DIS. TIC. LTD. STI.
EGITIM MAH MURATPASA SK 1/24
ZIVERBEY/ISTANBUL
TURKEY

Both companies are on the same letterhead.

We sent this buyer a FCO for two products, which was duly signed, sealed and returned, as being acceptable.

Then we sent them contracts which was again, signed, sealed with some changes which were not accepted by us as they were outside of our already accepted procedures, we sent them the ratified contract, then after this they wished to change the contract.

The next step for the buyer was to provide an inactive Non-Active DLC …. they did not do this .... they are time wasters. at the very least, more probably non-performers so be careful.

Financea Limited - Non-Performer & Time Waster

2010-12-10T01:58:00.001+11:00

This company director a MR. VALENTIN MARCHUK of Financea Limited of SUITE B29 HARLEY STREET, LONDON U. K. WIG9 QR

They received and agreed to our procedures 100%, signed, sealed and received our ratified contract - they received the corporate invoice, but did not provide Proof of Funding as per the contract.

They did NOT perform, they also wasted our time.

Beware and learn from my experience.

Gold deals for idiots

2010-12-04T17:26:00.000+11:00

I really and truly like this link to an example of a fake gold deal ... in truth .... I have had the same approaches, by people who get so invested in the outcome and more .. to the point that they are blinded by the deal ... which 995 out of 1000 is not real ... for instance in this particular deal, 300,000 mt of gold is a fantasy ... about twice as much gold as is on record as being produced to date, world wide ...

From my point of view as we have access to current annual production statistics per country .. I know what is produced and where .... Oh I cry out for someone who is real ... someone who does due diligence and brings me a real quantity of gold of around one kilo to one or two metric tons of gold per month - but make note ... as a very good friend of mine says ... Google is not a due diligence tool ... it's only a starting point ....

You know gold is worse than oil for attracting the worst kind of criminals and those who actually are real spend most of our time trying to cut through the bull ... these days it takes usually all of 60 seconds ... as soon as someone talks about a stupid quantity, an stupid quantity, or a FOB deal or a guarantee instrument ... I hit the delete button.

Do watch this one ..... here. ... I hope you understand that this is not how you do a gold deal or a oil deal or any deal.

Google - Was it Hubris or Hype ?

2010-11-30T03:11:00.002+11:00

Google Vice President, Linus Upson, recently told The New York Times that when (?) the Chrome OS deploys, some 60% of all businesses could get rid of Windows for good and switch to Chrome overnight.

I think this article below gives a balanced look and asks some pertinent questions about this revelation which seems to be full of hype about the second coming.

If the following report here from Renee Oricchio is any indication –

I think that Google has a problem. It’s called arrogance! or in this case one might even be called hubris, for your information this word is defined as “ being out of touch with reality and overestimating one’s own competence or capabilities ”

If you don’t believe arrogance can fell an empire, just go back and study World War I. or for a more recent cautionary tale, look at Wall Street over the past couple of years and the resulting Global Financial meltdown.

I regard Google as a very good resource, however the idea of cloud computing from a risk management point of view is a nightmare waiting to happen …. cloud storage as part of a strategy yes, but as a end in itself, no thanks definitely not at the moment. There are way too many points of failure within the access path and when there is a failure within the network or with Google, what exactly would you have left of your business ?

How not to do a Oil deal ..

2010-11-22T15:07:00.006+11:00

This is an interesting breakdown of how not to do an oil deal, ladies and gentlemen, if you are more than two away from a buyer or a seller mandate the likely hood of a close is very, very low.

A couple of other points to remember (1) Verify everything you are told, because even ethical operators are told lies - I say this because if you take someone to a buyer or a seller and they are not real, you will only hurt your credibility and your future - this is a serious business and brokers who do not invest in verifying their leads are bad for the business (2) once you have been in the game a while you will know who is real and who isn't .. if someone is open, transparent, ethical and honest stick with them even if they currently are not direct, they will be, if your contact, no matter who he or she is lies to you .... then save yourself a lot of grief and walk away.

Please see the Video as attached from a good friend of mine...

Mate, thanks very much for the time you put into this.

New Blood

2010-11-03T15:07:00.001+11:00

Hi,

I have a little free time, so if you need some help kicking around some new ideas ... let me know ... I like meeting new people and talking through viable ideas ... no time wasters please. At this point I am looking to help you move forward, for New Ventures or entrepreneurs also but I will also offer help concerning corporate structure, continuous improvement models, corporate culture all within a ethical transparent accountable structure.

I am not offering help with funding at this point.

So contact me on the email address of davids@intmf.com and lets see where this will lead.

Thanks
David

Commodities and Buyers

2010-10-22T14:27:00.003+11:00

When I work in commodities, I deal mainly in Oil and Gold .. two very different markets and with two very different expectations so far as the buyer's are concerned.

For Oil, there are probably less than 50 or 60 real and capable buyers world wide.

On the other side of the coin, there are the Buyers whom without providing any substantive information for you to due diligence are most probably fakes. Those buyers that use this strategy, routinely come from a generic Email address.

Recently I was approached by an exceptional contact within a large multi-national oil company with a suggestion that I offer someone he knew product.

We as a result sent them our procedures and requested further information from the buyers so we would have confidence to go to the next step, as I have the capacity either directly or indirectly to provide product for most buyers who are real.

I was astounded by the response, the suggestion was that without knowing anything about the buyer I was to take them to a tier one refinery, on someone's word only, whilst I had no problem doing this as I highly regarded the reference highly, the Tier One refinery and a major reseller are not so agreeable or flexible, and will not engage unless they know more about the buyer. The buyer's representative was not communicative, off hand, dismissive of my request and did not provide any information. Even their website was under construction with no content.

Unfortunately that left me with no option but to regard this buyer as questionable, as our due diligence had suggested that as a seller this company had failed on two previous occassions.

My contact with the major seemed to take this as a personal a front, and has broken off contact… so be it.

Stick to your procedures, nothing you can do will make an impossible deal that is outside your procedures possible, if you take a non-performing buyer to a seller mandate and they discover that you have brought them a time waster … this will reflect on you or worse still someone who is asking for POP up front with NO capacity to close and lift product, the most likely outcome being that the seller will not respond to you in the future.

I mean if I could get full POP upfront, without showing my financial credentials, why exactly would I need a buyer ? I could take it to buyers myself.

Be careful …. so be sure.

Commodities 105 - Books

2010-10-08T17:11:00.004+11:00

For those who are interested, there is a book I suggest you get hold of, if you want to find out more about this market segment .... a recent book published in 2009 concerning the industry

International Trade and the Successful Intermediary

by

Davide Giovanni Papa, Lorna Elliott

The link for those who are interested is here...

http://www.amazon.com/s/?tag=sandnetbooksonli&creative=392969&campaign=213689&link_code=bsw&_encoding=UTF-8&search-alias=stripbooks&field-keywords=International+Trade+and+Successful+Intermediary&Submit.x=10&Submit.y=8&Submit=Go