Wednesday, June 30, 2010

Online Sources for Utilizing Network Marketing More Effectively

Below is a compilation of online articles about being an effective network marketer. 

Make Your Business Card a Marketing Tool, http://sbinfocanada.about.com/cs/marketing/qt/bizcardmarket.htm
Zita's Top 10 Networking Tips for Savvy Networkers, http://www.top10networkingtips.com/
The Riley Guide - Networking Advice - A list of quite a few other links. An especially good website to visit, http://www.rileyguide.com/nettips.html
Business Networking Tips, Another article with a lot of sub-links that delve more deeply into specific aspects of network marketing. Recommended site. http://www.business-networking-tips.net/
Networking Tips - from Work Bloom, http://workbloom.com/networking/networking-tips.aspx
Networking Tips - How to Work a Room, https://career.berkeley.edu/article/021011b.stm
Networking Tips Blog, An Austin Tx based blog, with a useful listing of sublinks. http://www.networkinaustin.com/business-networking-tips

Marketing - How to Reap Great ROI From Network Marketing, Part One of a Series

by Howard Fireman
This is the first of an ongoing series of articles on marketing, which will explore the most important considerations business owners must take into account, when laying out and executing a marketing plan for their companies. Along the way, we will define marketing. We will also look at pricing and credit strategies and consider how to use business communications (advertising, sponsorships, special events, publicity) to put a company out before the public. We will also dedicate an article to going global and to e-commerce marketing.

To start off the series, we will focus on network marketing, which constitutes one of the most commonly used strategies to market one's company. The focus will be on the goals that individuals in business should set for themselves as they use network marketing to build their client/customer base.


This article will not lay out 10 or 12 strategies for network marketing, which can easily be found in numerous articles out there on the internet. However, we would like to provide you with some useful management articles on network marketing. For a list of web pages with practical strategies for network marketing, click on the link below. 
http://businessnewsarchive.blogspot.com/2010/06/online-sources-for-utilizing-network.html
Marketing. At the very heart and soul of any business are marketing activities. "Marketing management is one of the major components of business management." (Wikipedia - Marketing)


We need to be on the same page as to what the word, marketing, means. So let's start out with a very clear definition. Wikipedia provides a very thorough definition: "Marketing - Marketing is the process by which companies determine what products or services may be of interest to customers and clients,and the strategy to use in sales, communications and business development..."(http://en.wikipedia.org/wiki/Marketing ) I encourage you to read through the entire definition, by clicking on this link. The full scope of information about what marketing entails and the strategies a company can pursue are complex and varied. This reality demands that a business owner has to fully understand the idea of marketing and to devote considerable thought about what goes into the marketing plan for his or her company, to be an effective marketing manager. 


Please answer the following questions.   
Question 1: Network Marketing should primarily focus on: 

  1. Getting new customers and immediate sales
  2. Making new business connections
Question 2: If you meet a prospective client at a business mixer and you schedule an appointment with that person, you can expect to make a sale...
  1. At the first appointment with that person
  2. At the second appointment with that person
  3. After that person has gotten to know you and has determined that he or she wants to do business with you. This may take awhile to happen.
How did you answer these questions? The common wisdom about network marketing suggests that the best answer to Question 1 is Answer 2. Also that the best answer to Question 2 is Answer 3. Does this surprise you? 


If you look at the numbers, studies show that on average, 70% of new business is gained through referrals or relationship marketing. Potential clients buy from people they know, like and trust. The refer their friends and acquaintances to service and product providers... you know what's coming... whom they know, like and trust. So it should be no particular surprise that the real objective of going to a business mixer is to make new business connections. 



The reality is that at a networking event, you have three possible outcomes in connecting  with other business people there: 


  • You are looking to acquire a new client
  • You are looking to connect with a potential referral partner
  • You are looking for a potential deal partner.
Whatever the outcome, the connection is a win-win proposition for both parties. 

This reality really shows that when we set out to establish new business connections, the goal is for these to become long-term connections. The hope is that these connections may become clients and/or repetitive residual business referral partners. So effectively each new connection becomes an investment asset. That means staying in contact with each new connection. Phone calls, emails, letters, holiday cards, meeting over coffee or lunch. It also means finding out something about that individual and personalizing those points of contact in the future. There is the implied expectation that you will have to invest time in building an enduring relationship, without any expectation of a return on your investment. Of course this seems absolutely counter-intuitive. Almost altruistic generosity? Yes. But the payoff comes in time, because the people with whom you connect, in time, will seek you out for services and goods because (here we go again) they know you, they like you and they trust you. Not very original, I know. But nevertheless, very true. 

Ray Reid, a property assessor for Harris County here in Texas, tells a story about when he was in sales a few years back. He was trying to get business from a particular fellow. He got to know the fellow pretty well. Ray spent time at this businessman's home and Ray and his wife entertained this fellow and his wife as well. Nothing happened for over a year. One day Ray and this fellow were playing a round of golf. That day, Ray really wanted to pitch his product, but said nothing during the golf game, allowing his golfing partner to fully enjoy the afternoon. At the end of the match, as the man was putting away his clubs, he turned to Ray and said, "Ray. I really like you. Stop by my office tomorrow. I think we can do business together." It took over a year for Ray to get that account. But he did.


In reality, we do not need to be at a mixer to carry out network marketing. We can strike up a conversation with the person next to us on a business flight. We can be talking to family or friends. Possibilities for making business connections can take place wherever and whenever we happen to be. There are really effective strategies for turning an accidental encounter into a genuine business connection opportunity. 

We know that sales is a numbers game. This is no less true with regard to network marketing. The object is to build as big a base of business connections as it is possible to do. We have marvelous tools and new strategies for doing just that. There is great new software that enables us to track and keep in contact with business connections today very efficiently. Online social networking enables us to let many of our contacts know what is going on with us and for us to know what is going on with them, without making a phone call or sending an email. The more connections we make and sustain, the greater the number of referrals we will get. And because this is a reciprocal arrangement, we are likewise sending referrals all the time to our trusted connections. We may even be carrying their business cards so that when someone says they are in the need of a CPA or an event planner, we can immediately hand out our connection's card. That way, we are holding up our end of the bargain. 


Setting Working Goals as a Network Marketer


We understand the basic ground rules for networking. Now we must set practical goals for ourselves. We must also be aware of the pitfalls we face in attempting to be an effective network marketer. 


For anyone in business, time is limited. So when we set out to increase our circle of business connections, we have to keep in mind that we will need to regularly keep in contact with everyone in our network of connections. That means we cannot realistically establish 100 connections a day. Or even 5-10 connections a day. But realistically as individuals, we can connect with 1 or 2 people every day, and over time build a working relationship with each of them. 


So the first goal is to establish a manageable number of new business relationships everyday. For a factory rep or a sales rep, that may translate into 1 to 2 business connections a day. A company can set the goals to growing the base of business connections, according to the resources that it can dedicate to communicating on a regular basis with these connections. 


But we are not in business only to build business relationships. Ultimately anyone in business has to get new clients. One must generate new sales to keep a company financially healthy and to enable the company to grow larger and stronger


As we build a network of connections, we need to convert the referrals we get into new clients and into new sales. We must take this new client base and employ marketing strategies that will deliver residual sales from these very same clients. 


For any marketing representative or company, the second marketing goal is to add a manageable number of new clients to the client base every week. Also, once new clients are acquired, a critical goal is to generate a certain volume of sales from these clients within a set time frame. 


Keep in mind, that once one gains a new client, one must be able to schedule the time to properly service that client's needs. A marketing rep or a company can grow the client base too quickly and subsequently the quality of the services he or she provides seriously deteriorates. No sales person can afford to lose a client or gain a reputation for providing poor or unresponsive service. 


There is another possibility for a company which allows the client base to grow too quickly. That company can experience a cash flow shortfall that is severe enough to put the company out of business, if the marketing management does not make almost immediate strategy corrections. 


The third goal is to make personal generosity the central quality of making and sustaining a business connection. What you give in terms of listening, caring and being attentive to the goals of a business connection are ultimately more important that what you receive in exchange. Forget about quid pro quo. Treat a new business connection as a long-term investment. Don't worry about what the quarterly ROI turns out to be. Focus more on the long-term ROI.


A special note about networking online through email, LinkedIn, Twitter and Facebook. Used properly, these sites and email can be very effective if you exercise good time management. However, unchecked, online networking can suck up huge amounts of time away from more important activities such as sales presentations, closing deals or developing important marketing strategy. In the case of self-employed providers of business services, marketing online can severely eat into billable time or face-to-face marketing opportunities. 


A Summation

By being generous, by focusing on how we can help our business connections to succeed in their endeavors, we gain allies, referral partners, partners in business deals and a few lifetime friends. We gain a good name for ourselves. We are able to make a difference in the world. And because we are looking out for the folks in our connection network, we gain an entire community of business associates who are looking out for us as well. Our success is always less dependent on how talented or clever we are than on the support, encouragement and business referrals that come from our network of business connections. 

This is probably not what you expected to be reading in this column. You still need to develop the skills in presenting your products and services. You still need to be able to close the sale. But you would probably not have had as many opportunities to make your sales presentations if the prospective clients had not been referred to you in the first place. Those referrals came from the very people whom you cultivated as business connections and the clients whom you served in the past. So, you can now clearly see why the primary objective  of network marketing is establishing solid and enduring business connections. 

Tuesday, June 29, 2010

Hitting the Wall

Marathon runners at some point in the race hit a psychological barrier called the wall. It is somewhere after the middle of the race and they have to push past that mental barrier to keep going if they are going to reach the finish line. Those of us in business have our own "wall." If we are ambitious and hardworking, becoming the workaholic is all too easy. Sooner or later, having done so will catch up with us and we will burn out for a time.

You will know when that happens. You no longer fully know (or really care) about what you are doing presently. You can no longer say to yourself why you are even doing it, except out of habit or to keep the company afloat or to sustain the lifestyle to which you have become accustomed. All you know, when you are suffering from burnout, is that you don't have any enthusiasm or energy and you don't really care very much.

In anything you set out to do or to be, it has always been a challenge to keep a balance in your life. You get caught up in a project and other important parts of your life suffer. You get caught up in a chase after importance, position, money. Burnout. You are now living life on a treadmill that you cannot seem to turn off and your life becomes an endless cycle of work, of going to sleep and back to work...

As always, when you find yourself in this situation, it is time to make a decision to stop the craziness and do something about it. And then to act on that decision. When you do that, whatever you must do to fix things may not be easy or without a cost to you personally. But what other options do you really have?

Burnout isn't an inevitable experience one has to go through in one's life. One can learn by trial and error. Or one can realize that burnout is a possible scenario in the game of life. If one knows that burnout is a pitfall to be avoided, it is much smarter just to structure one's life more rationally from the getgo.

You can learn to manage your schedule, leaving sufficient time for family, friends, and time to recharge your batteries. You can make it a habit to pace yourself and learn to recognize when you are pushing yourself too hard for too long. You can live to work. Or, if you are smart, you can work to live. It is all about the choices you make. It is your choice as to how you are going to live your life.

Some say live and learn. I say it is smarter to learn and live well.

Monday, June 21, 2010

The Web That Time Forgot - Part 1

The web that time forgot


MONS, Belgium — On a fog-drizzled Monday afternoon, this fading medieval city feels like a forgotten place. Apart from the obligatory Gothic cathedral, there is not much to see here except for a tiny storefront museum called the Mundaneum, tucked down a narrow street in the northeast corner of town. It feels like a fittingly secluded home for the legacy of one of technology's lost pioneers: Paul Otlet.
In 1934, Otlet sketched out plans for a global network of computers (or "electric telescopes," as he called them) that would allow people to search and browse through millions of interlinked documents, images, audio and video files. He described how people would use the devices to send messages to one another, share files and even congregate in online social networks. He called the whole thing a "réseau," which might be translated as "network" — or arguably, "web."
Historians typically trace the origins of the World Wide Web through a lineage of Anglo-American inventors like Vannevar Bush, Doug Engelbart and Ted Nelson. But more than half a century before Tim Berners-Lee released the first Web browser in 1991, Otlet (pronounced ot-LAY) described a networked world where "anyone in his armchair would be able to contemplate the whole of creation."
Although Otlet's proto-Web relied on a patchwork of analog technologies like index cards and telegraph machines, it nonetheless anticipated the hyperlinked structure of today's Web. "This was a Steampunk version of hypertext," said Kevin Kelly, former editor of Wired, who is writing a book about the future of technology.
Otlet's vision hinged on the idea of a networked machine that joined documents using symbolic links. While that notion may seem obvious today, in 1934 it marked a conceptual breakthrough. "The hyperlink is one of the most underappreciated inventions of the last century," Kelly said. "It will go down with radio in the pantheon of great inventions."
Today, Otlet and his work have been largely forgotten, even in his native Belgium. Although Otlet enjoyed considerable fame during his lifetime, his legacy fell victim to a series of historical misfortunes — not least of which involved the Nazis marching into Belgium and destroying much of his life's work.
But in recent years, a small group of researchers has begun to resurrect Otlet's reputation, republishing some of his writing and raising money to establish the museum and archive in Mons.
As the Mundaneum museum prepares to celebrate its 10th anniversary on Thursday, the curators are planning to release part of the original collection onto the present-day Web. That event will not only be a kind of posthumous vindication for Otlet, but it will also provide an opportunity to re-evaluate his place in Web history. Was the Mundaneum (mun-da-NAY-um) just a historical curiosity — a technological road not taken — or can his vision shed useful light on the Web as we know it?
Although Otlet spent his entire working life in the age before computers, he possessed remarkable foresight into the possibilities of electronic media. Paradoxically, his vision of a paperless future stemmed from a lifelong fascination with printed books.
Otlet, born in 1868, did not set foot in a schoolroom until age 12. His mother died when he was 3; his father was a successful entrepreneur who made a fortune selling trams all over the world. The senior Otlet kept his son out of school, out of a conviction that classrooms stifled children's natural abilities. Left at home with his tutors and with few friends, the young Otlet lived the life of a solitary bookworm.
When he finally entered secondary school, he made straight for the library. "I could lock myself into the library and peruse the catalogue, which for me was a miracle," he later wrote. Soon after entering school, Otlet took on the role of school librarian.
In the years that followed, Otlet never really left the library. Though his father pushed him into law school, he soon left the bar to return to his first love, books. In 1895, he met a kindred spirit in the future Nobel Prize winner Henri La Fontaine, who joined him in planning to create a master bibliography of all the world's published knowledge.

Continued: http://businessnewsarchive.blogspot.com/2010/06/web-that-time-forgot-part-2.html

The Web That Time Forgot - Part 2


The web that time forgot


(Page 2 of 3)
Even in 1895, such a project marked an act of colossal intellectual hubris. The two men set out to collect data on every book ever published, along with a vast collection of magazine and journal articles, photographs, posters and all kinds of ephemera — like pamphlets — that libraries typically ignored. Using 3 by 5 index cards (then the state of the art in storage technology), they went on to create a vast paper database with more than 12 million individual entries.
Otlet and LaFontaine eventually persuaded the Belgian government to support their project, proposing to build a "city of knowledge" that would bolster the government's bid to become host of the League of Nations. The government granted them space in a government building, where Otlet expanded the operation. He hired more staff, and established a fee-based research service that allowed anyone in the world to submit a query via mail or telegraph — a kind of analog search engine. Inquiries poured in from all over the world, more than 1,500 a year, on topics as diverse as boomerangs and Bulgarian finance.
As the Mundaneum evolved, it began to choke on the sheer volume of paper. Otlet started sketching ideas for new technologies to manage the information overload. At one point he posited a kind of paper-based computer, rigged with wheels and spokes that would move documents around on the surface of a desk. Eventually, however, Otlet realized the ultimate answer involved scrapping paper altogether.
Since there was no such thing as electronic data storage in the 1920s, Otlet had to invent it. He started writing at length about the possibility of electronic media storage, culminating in a 1934 book, "Monde," where he laid out his vision of a "mechanical, collective brain" that would house all the world's information, made readily accessible over a global telecommunications network.
Tragically, just as Otlet's vision began to crystallize, the Mundaneum fell on hard times. In 1934, the Belgian government lost interest in the project after losing its bid for the League of Nations headquarters. Otlet moved it to a smaller space, and after financial struggles had to close it to the public.
A handful of staff members kept working on the project, but the dream ended when the Nazis marched through Belgium in 1939. The Germans cleared out the original Mundaneum site to make way for an exhibit of Third Reich art, destroying thousands of boxes filled with index cards. Otlet died in 1944, a broken and soon-to-be-forgotten man.
After Otlet's death, what survived of the original Mundaneum was left to languish in an old anatomy building of the Free University in the Parc Leopold until 1968, when a young graduate student named W. Boyd Rayward picked up the paper trail. Having read some of Otlet's work, he traveled to the abandoned office in Brussels, where he discovered a mausoleumlike room full of books and mounds of paper covered in cobwebs.
Rayward has since helped lead a resurgence of interest in Otlet's work, a movement that eventually fueled enough interest to prompt development of the Mundaneum museum in Mons.
Today, the new Mundaneum reveals tantalizing glimpses of a Web that might have been. Long rows of catalogue drawers hold millions of Otlet's index cards, pointing the way into a back-room archive brimming with books, posters, photos, newspaper clippings and all kinds of other artifacts. A team of full-time archivists have managed to catalogue less than 10 percent of the collection.
The archive's sheer sprawl reveals both the possibilities and the limits of Otlet's original vision. Otlet envisioned a team of professional catalogers analyzing every piece of incoming information, a philosophy that runs counter to the bottom-up ethos of the Web.
"I think Otlet would have felt lost with the Internet," said his biographer, Françoise Levie. Even with a small army of professional librarians, the original Mundaneum could never have accommodated the sheer volume of information produced on the Web today.
"I don't think it could have scaled up," Rayward said. "It couldn't even scale up to meet the demands of the paper-based world he was living in."

The Web That Time Forgot - Part 3

Those limitations notwithstanding, Otlet's version of hypertext held a few important advantages over today's Web. For one thing, he saw a smarter kind of hyperlink. Whereas links on the Web today serve as a kind of mute bond between documents, Otlet envisioned links that carried meaning by, for example, annotating if particular documents agreed or disagreed with each other. That facility is notably lacking in the dumb logic of modern hyperlinks.
Otlet also saw the possibilities of social networks, of letting users "participate, applaud, give ovations, sing in the chorus." While he very likely would have been flummoxed by the anything-goes environment of Facebook or MySpace, Otlet saw some of the more productive aspects of social networking — the ability to trade messages, participate in discussions and work together to collect and organize documents.
Some scholars believe Otlet also foresaw something like the Semantic Web, the emerging framework for subject-centric computing that has been gaining traction among computer scientists like Berners-Lee. Like the Semantic Web, the Mundaneum aspired not just to draw static links between documents, but also to map out conceptual relationships between facts and ideas. "The Semantic Web is rather Otlet-ish," said Michael Buckland, a professor at the School of Information at the University of California, Berkeley.
Critics of the Semantic Web say it relies too heavily on expert programmers to create ontologies (formalized descriptions of concepts and relationships) that will let computers exchange data with one another more easily. The Semantic Web "may be useful, but it is bound to fail," Buckland said, adding, "It doesn't scale because nobody will provide enough labor to build it."
The same criticism could have been leveled against the Mundaneum. Just as Otlet's vision required a group of trained catalogers to classify the world's knowledge, so the Semantic Web hinges on an elite class of programmers to formulate descriptions for a potentially vast range of information. For those who advocate such labor-intensive data schemes, the fate of the Mundaneum may offer a cautionary tale.
The curators of today's Mundaneum hope the museum avoids its predecessor's fate. Although the museum has consistently managed to secure financing, it struggles to attract visitors.
"The problem is that no one knows the story of the Mundaneum," said the lead archivist, Stéphanie Manfroid. "People are not necessarily excited to go see an archive. It's like, would you rather go see the latest 'Star Wars' movie, or would you rather go see a giant card catalogue?"
Striving to broaden its appeal, the museum stages regular exhibits of posters, photographs and contemporary art. And while only a trickle of tourists make their way to the little museum in Mons, the town may yet find its way onto the technological history map. Later this year, a new corporate citizen plans to open a data center on the edge of town: Google.

Seminars, Webinars and Business Mixers for the week of June 21st

NuSkin - Rollout of New Product
Thursday, June 24, 2010
Location: 
The Junior League Bldg
1811 Briar Oaks Lane
Houston, Texas 77027
By Invitation. 
Contact: Andrew Watts, 713-816-5278


InHouston Events
For event details, go to the link below: 
HNN Events
For event details, go to the link below:
BNI Katy
Every Tuesday, 
7:00 am to 8:30 am
Crowne Plaza Hotel
Hwy 6 at I-10
Cost: $10.00
For more information:  http://www.bnihouston.com/

U of H SBDC June Seminar Offerings For event details, use the link below.http://www.sbdc.uh.edu/sbdc/Calendar.asp?SnID=2127573939





SCORE Houston
Schedule of Events for 2010
For Information of events this week, go to the link below:
http://www.scorehouston.org/workshops/

Webinar - Dan Zarella
The Science of Facebook Marketing
Tuesday, June 29, 2010
Time: 1 pm to 2 pm
For more information: 
http://www.hubspot.com/marketing-webinar/science-of-facebook-marketing/

The Dover Club
Friday, June 25, 2010
6:30 am to 8 am
The Houstonian Hotel and Conference Center
Houston, Texas
For more information, call Heath Nobles, 713.853.2466 or
go to: http://www.thedoverclub.com/


DFJ Mercury VC Office Hours
A Forum for Entrepreneurs and VCs
Friday, June 25, 2010
3 pm to 5 pm
Coffee Groundz
2503 Bagby
Houston, TX
For more information, contact: 
www.dfjmercury.com









News You Can Use, Monday, June 21, 2010

The Law and Technology
No Privacy for State-Issued Messaging Devices, Justices Rule
Washington (CNN) -Worried that your boss may be checking your private messages on state.. or company-issued communication devices? The Supreme Court strongly recommends buying your own pagers and cellphones. http://www.cnn.com/2010/CRIME/06/17/scotus.privacy/index.
html
Business Travel News
Latest Airlines Fee? Early Boarding
(CNN) Do you like to be one of the first people to board a plane, avoiding the crowded aisles and getting your pick of the overhead bin space? There is a fee for that... http://www.cnn.com/2010/TRAVEL/06/17/american.
airlines.boarding.fee/index.html
Software and Technology
Goodbye to Checks: Peer-to-Peer Payments Gain Momentum.
Small Business owners and their customers no longer have to rely on checks to make and accept payments, thanks to new peer-to-peer payment services...http://www.foxsmallbusinesscenter.com/sbc/2010/06/17/say-goodbye-checks-peer-peer-payments-gain-momentum/
Marketing Strategies
Candor With Your Client: It may be your job to tell them what they need
As a professional, how many times have you been asked by a potential client to do what you believe to be absolutely the wrong thng to do?...
http://biznik.com/articles/candor-with-clients-it-may-be-your-job-to-tell-them-what-they-want?utm_source=articles&utm_medium=email&utm_campaign=2010-06-16
Your Money and New Tax Laws
How the New Wealth Taxes Will Hit You.
The health-care bill that Congress passed in March contained two surprising new taxes to pay for the changes...


Sunday, June 20, 2010

Business NewsBytes

>>>Out of June 20th Zest Magazine put out by the Houston Chronicle comes this rich tidbit. HIdden away in the Pet of the Week column: Starting July 1 Starbucks will offer free Wi-Fi in its coffee shops. Way to go 'Bucks. You've finally caught up to Chick-fil-A.
>>>Peter Svensson, in the June 1 HouChron Business Section, suggests that except for faster access to data [e.g. streaming video or video-conferencing], 4G wireless will be a bit underwhelming. "Other than that, it's difficult to point to new uses for 4G phones - things [people] can do, that 3G phones already can do."
>>>In the latest business news: Be careful what you say online in Facebook or in a blog posting. Venting your complaints in the Internet can spark lawsuits against you. The range of free speech on the Internet is now being challenged. A fellow named Justin Kurtz was sued by a company that towed his car. In facebook he made some unkind comments about the folks who hauled his car away. The towing company sued him for defamation of character and they were asking for $750,000 in damages.  Is this just a classic harassment action by the towing company to silence Mr. Kurtz or is this the beginning of an attack on free speech in the Internet?
>>>Any doubts about the power of Social Networking? Lately in the press, it has been reported that Hugo Chavez, the feisty President of Venezuela, has decided that if you can't beat them, join them. In a counterattack on his critics, he has started using Internet social networking to mount a defense of his controversial regime. 


If you spot a great bit of business news, scan it and send it to me at howard.fireman@gmail.com
.

Friday, June 18, 2010

In The Market for Telecom Services? Get the Most for Your Money!

by Tom Craig


Shopping for telecom services can be very confusing for any company, especially small and medium sized companies. Anymore, the telecom industry is very complex and in a constant state of change. Telecom technology advances at such a rapid pace, it is nearly impossible to keep up with it. As if they did not already have enough to focus on, now business owners also face a daunting challenge to make sound purchasing decisions from among the many competing telecom services, products and suppliers. So the important thing that needs to be done is to demystify the telecommunications industry and the products/services that are out there in the market place.


Let's start with an understanding of Bandwidth. Bandwidth is the main component of modern telecom services. It is essentially the pipeline that carries the services you purchase, whether it is voice transmission, internet or data services. The quality of the transmissions you receive is very much a function of the availability of bandwidth. Availability can be determined by how the building in which you office has configured itself. It will also depend on whether or not your supplier of telecom services has installed a fiber optic network, the advantage of which is that with fiber optics there is no limit to the speed available.The bottom line is that a fiber optics delivery  system is currently the most optimal choice for any telecom company.


Okay. You are ready to begin your search for a new telecom provider and/or new products/services to meet your needs. What are the issues you need to consider when you set out to do that?


Before you do anything, you need to carefully assess what your company's telecom needs are. What do you need the telecom services you buy to do for you? Next, budget how much you can spend. 


Then, establish the criteria for evaluating companies which provide the services and products you need. In your search, at minimum, make sure you focus in on the following considerations: 

  • Does the telecom services provider deliver excellent services? 
  • Are services delivered consistently and reliably? 
  • How much is the telecom package you select going to cost you? Is it an affordable package for your company? 



1. Excellent Services: Does a telecom provider deliver excellent services?. How do we define "excellent services" from a telecom provider? A telecom provider is doing it's job when it has the ability to deliver the type of products that will best benefit your company and fully meet your needs. This consideration is important for any of the following configurations:


  • Digital or analog voice applications
  • WAN (Wide Area Network) applications to connect multiple locations
  • Internet Services to allow you to connect with your customers and your vendors 
  • The capacity to deliver any kind of service over a standard Ethernet network, used for most office LANs (Local Area Networks). 
The flexibility of an Ethernet network demands some additional discussion. It is one of the latest technologies to to emerge from the telecom world. A provider can deliver any type of service over Ethernet networks reliably. Typically, Ethernet can be plugged in just like your internet at home. It makes it far easier for an IT professional to handle because there is no need to convert a signal and setting up a Wan becomes as simple as setting a LAN, therefore more cost-effective. Ethernet has become the industry standard for its ease of scalability and simplicity, in terms of delivering services. 


2. Reliability: Will the telecom provider deliver reliable and consistent service? 
Reliability is an absolute must for any telecom company which wants your business. Your company simply cannot afford for telecom services to go down even for a short time. Downtime costs your company dearly and adversely impacts your sales revenue, interrupts normal business activities and affects overall productivity. 


An important way to evaluate a telecom services provider is to look at how well it has designed and built its delivery network. Take a look at how that delivery network is configured. That will provide you with an important clue as to what level of service you can expect, because some networks are more stable than others. 

  • Long distance carrier to carrier networks: Telecom providers in this class usually build their networks with two paths to each end, creating a ring. If one path is damaged or has equipment issues, then the other path will still have the capacity to carry data and voice traffic.These networks are designed to absorb a maximum impact, natural or man-made. This type of network is designed for companies which cannot tolerate any downtime whatsoever.
  • Local Provider Networks: The better local telecom providers (and only a few companies fall into this class) build their networks to the same standards as the long distance carrier to carrier networks. 
  • Local Provider Networks: The remainder of the local providers of telecom services will use a different, less reliable and effective configuration. As service delivery gets to the end user, the network is often hubbed from a central location in a star pattern. From the hub, the flow of digital traffic is redirected to the final end user and radiates out of one of the arms of the star. While this is a very cost effective configuration to build, it creates a single path to the end user. However, if there is damage or equipment failure, then end users will be out of service until the problem is repaired. 
  • Special Consideration: Who is the telecom provider in the building in which you office: It is important to know who the providers are in your office building. Understand the important consideration about telecom services, so you can ask intelligent questions to protect yourself and take advantage of every benefit from those providers. 
Look for a telecom provider that can demonstrate the level of reliability through built in service level agreements and reports showing adherence to them. 

3. Cost: How much is your telecom services package going to cost you? 
Most companies will start out by focusing on this issue. But looking solely at cost will not provide a good measure of just how good a deal you are getting or whether or not a company can or will deliver on it's promises to it's customers.

First of all, what kind of telecom company are you talking to?
  • A telecom company which is actually providing the service and owns the delivery system.
  • A reseller of telecom services.
The difference between the two types of companies is that the reseller of telecom services has no control over the network that delivers service. If your telecom system goes down and you are buying through a reseller, you have to call the reseller who then has to contact the telecom company which is providing and delivering service, the main carrier. 

The best solution is to use a carrier that owns and operates it own network. 

The reseller will offer services at a lower price, but you need to consider the cost of down time vs. the price. Often outages can last for hours, severely impacting your business. For the sake of saving a few bucks, do you want to take that risk? 

Look for a telecom provider who can provide multiple services on one bill. That will make it much easier to get the services you need and keep track of your overall expenses. 

Once you have found reliable companies which can provide you with the services you require at an affordable price, find out what new technologies are out there. These new technologies may offer you new services and capabilities, about which you were not aware. For a small incremental cost, you may be able to obtain additional services which can make your own company's operations run more smoothly and efficiently.

Summary:  At the onset, know what telecom services and products your company requires and find out what is currently available in telecom products and services in the marketplace. Identify provider companies which can provide consistently excellent services. Determine which potential providers can deliver consistent and reliable services. Find out how well they have designed and configured their delivery system. Once you have narrowed your choices of telecom providers, pick out the one which is preferably one which is actually providing the service and owns the delivery system. 

Coming Soon: In a future issue of The 610 Business Journal, I will explore the critical issue of network security. How can you best keep your network up and running, no matter what happens to your office.