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How To Create Leverage For Your Business
First question is from Patrick Miguel. Do you employ leverage?
Oh, it’s a finance question. When you’re asking about leverage, so there’s a lot of ways to look at it. There’s the negotiation way. So do I use leverage when I negotiate in business? Or you can look at it from a finance standpoint, which is, do I use that or options or futures, or do I have any leverage from the brokerage platform that I’m using, meaning, I kind of borrow from them and then I paid double afterwards? So double the win, but also double the loss.
In terms of finance, I don’t employ leverage because I’m not really that amazing as a trader. I think I suck as a trader to be honest, and I’m not that good as an investor. Marvin Germo is a brilliant trader and investor, and I learned a lot from him. But in terms of practice, you need to practice. If you don’t practice anything that even a master could teach you, you’re not going to really learn it, you’re not going to experience it and it’s not going to stick. So I guess in my case, I haven’t practiced that well. I haven’t had a lot of opportunities to use everything that I’ve learned from Marvin. So I don’t employ leverage because it’s too risky for me. I think I’m just going to lose money.
In terms of negotiation, do I employ leverage? Yes, definitely. We have negotiation points and we have leverage points that we always use. I always say, during negotiation, you have to gather data about your negotiation partner. Take note. I say, negotiation partner, not your opponent, or you’re not trying to fight it out or slug it out. When you’re in the negotiating table, you’re a businessman. That’s why business people in Tagalog are called “negosyante”.
When you negotiate, you are trying to get to a win-win solution. If it’s going to be a win-lose, I say better, no deal. Let’s not make a deal if it’s just a win-lose. So it has to be a win-win situation. And I do employ leverage that way, either relationship leverage. I have done something for this person before, or I know the owner, that’s a big deal. Especially here in the Philippines where network is critical. Referrals, it’s very, very important.
What is the next big thing for e-commerce? Do you think after the pandemic, people will return to malls or e-commerce will change this behavior of Filipinos?
I think e-commerce is getting bigger and bigger. That’s what I think. I don’t think it’s going to stop, even if we’re back to normal, after the pandemic blows over. I think that we have already gotten into that lifestyle. It’s no longer a habit. A habit forms in 31 days. So it’s already a lifestyle because it’s already 10 months. That’s a lot more than 31 days that we’ve been buying e-commerce. That we’ve been having groceries delivered to our door steps. That we’ve been paying via bank transfer, Gcash, GrabPay, or credit card. So I think people are used to buying online.
If we’re going to the mall, I don’t think that we’re going to buy a lot there anymore. That’s what I think. I think malls have to be a lot more competitive in terms of their price point versus e-commerce because a lot of choices are available now in the e-commerce platforms. And a lot of people are also getting more stuff here from China, which improves selection and price.
So if ever that people are going to buy stuff from the mall, it should be something that is really not in the e-commerce platforms or it shouldn’t be something that’s super expensive in the e-commerce platforms. That’s what I think. But in terms of, are people still going to be buying through the e-commerce platforms? Definitely. I don’t think it’s going to slow down. I think it’s going to be maintained or it’s going to curve up. That’s my opinion.
From monster wings, question is: What do you think of crowdfunding?
I think it’s brilliant. I think crowdfunding is one of the most brilliant ideas in our generation. And that’s because there are ideas that could not come to life, would have never come to life if it wasn’t crowdfunded. So I think the ideas that have been produced because of crowdfunding and the people that were helped because of funding, we had someone who suffered from COVID and we ran crowdfunding campaigns, and it really did help. So I think it is a very good thing, if you’re planning to run a crowdfunding campaign.
One thing that I just want you to know is you have to have a good marketing campaign for it. Because if you don’t market it well, then not a lot of people would fund your project or your costs. So you have to have a good, maybe hire a good launch team for that. Or if you can DIY it, all the better, just make sure you market it very well.
From Viane. Can you recommend a good and free affiliate marketing software?
I’m not sure if you’re the one who wants to run an affiliate marketing campaign, or you’re the one who wants to shop for affiliate marketing companies and you want to sell their stuff. So that’s a question that I need you to qualify first for me. So again, do you want to be the one running the affiliate campaign? You’re the company and you want affiliates. Or do you want to find companies that have good products that you can resell? So I need you to qualify that for me.
You’re an affiliate marketer, you advertise both products and services of the seller or company. Got it. So you are the affiliate and you want a software to sell it. Now, my answer to that is, it depends on what niche you’re in. So I’m in the SEO niche and digital marketing niche. There are a lot of SEO software that have an affiliate program. SEMrush is one of them and I’m an affiliate. I’m an influencer actually.
So whenever I sell SEMrush, what happens is I get a percentage, a cut, every month, from the company or the people who uses SEMrush. And I love those kinds of affiliate marketing models because I get monthly recurring revenue. You just have to look it up, but again, it depends on what niche you’re in.
If you’re not in the SEO and digital marketing space, it would be difficult for you to sell SEMrush. Because I mean, how can you? You have to have your leaders have to be SEO people. Your leaders have to be the digital marketers, at least for you to be able to do that. So it depends on what your niche is, but there are tons. And you can look at ClickBank, they have a lot of software there. I haven’t tried them. I only sell software that I have personally tried. And so I don’t sell the software I haven’t tried yet. Everything that I am an affiliate of, we personally try it, me and my team.
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