Finding Great Employees Close to Home
Archives: Daily Issues
Issue #2083
- WEALTHY: An information-overload nightmare? Or a smart way to build your business? (Paul Smithson)
- HEALTHY: Would you take a painkiller if you weren’t in pain? (Dr. Al Sears)
- WISE: Ray Kroc on hiring great employees
ALSO IN THIS ISSUE:
- The case for nepotism (Michael Masterson)
- Your chance to see your name in print (Jason Holland)
- It’s Good to Know… about using bacteria to store data
- Add "stertorous" to your vocabulary
Revealed: Probably The Biggest Red Herring in History!
While the World’s Been Stock Watching (and losing!), The Elite Quietly Play a Different Game with Different Rules…
Feeling cheated and disillusioned by the stock market? Sure, you may have made a good trade here… but then lost on another. The people dutifully pour their hard-earned cash into investment banks to put into the stock market for them… and those investment banks gladly oblige, for a fat fee… which they invest somewhere else! I’m no conspiracy theorist, but in my opinion the stock market is really a diversion for the masses… a distraction from where the BIG and consistent money is made… in the world’s money mountain. And when I say “Money Mountain”, I speak quite literally… the BIGGEST mountain of money on the planet.
- Patrick Coffey
A Crash Course in Creating Multiple Streams of Income
You hear a lot about creating multiple streams of income these days – and, in fact, Michael Masterson recommends doing it in almost all his books. But in my recent article about cracking down on information overload, I stressed the importance of focusing on one thing at a time as you build your online business.
Contradictory? Not really.
You see, no one ever said you should create multiple streams of income all at once. Experienced businesspeople develop one stream until it’s pretty much self-sufficient. Then they set about to establish a second, third, and fourth stream of profits.
Let’s say your goal is to topple the cake-decorating niche.
You could start by creating a website filled with cake-decorating articles. Then, you could join Google’s AdSense program (which allows you to post ads that are relevant to your site content). Since you earn money every time a visitor to your site clicks on one of your AdSense ads, you now have an automatic trickle of money coming in.
Once you have a site, you’ll get an idea of the kind of traffic that is available for your niche. So you can then create a free short report to give away to people who sign up for your e-mail newsletter. In that report, you promote relevant affiliate items – books from ClickBank or products from Amazon.com – and you earn money each time the inclusion of one of those items in your report leads to a sale.
As your list of subscribers to your newsletter grows, you begin to create a membership site or e-book to sell – bringing in more money. Those who buy the e-book or join the site might later be interested in a series of instructional DVDs that you put together – bringing in even more money.
And your income streams continue to grow from there. Once you exhaust the cake-decorating niche, you could branch out into similar niches, like catering or event planning.
Focusing on one thing at a time while you build your online business doesn’t mean not going for multiple income streams, but it does mean knowing exactly where you’re going and what you’re planning to do in the future. It means that you aren’t allowing yourself to be swayed by every opportunity that comes along – that, instead, you’re sticking with your chosen niche and building around it.
[Ed. Note: Ready to step up to the plate and start your own Internet business? If so, online marketing expert Paul Smithson and ETR's team of friendly experts are standing by to help you. We've partnered with Paul, creator of the XSitePro website-building program, so you'll be able to come to ETR's 5 Days in July conference with nothing - no product, no marketing skills, no technical know-how - and walk out 5 days later with your own online business. No experience required and it only takes a few minutes to get started!]
"You’re only as good as the people you hire."
Ray Kroc
Finding Great Employees Close to Home
The inexperienced son of the CEO is abruptly put in charge of executives twice his age. The real estate developer’s wife, fresh from finishing an adult-education class on interior design, is brought in to buy furnishings for a $5 million spec home. We’ve all heard horror stories like this about nepotism in the workplace.
I have some stories of my own: a husband and wife team who would occasionally start screaming at each other during meetings… the brother of a publisher who almost single-handedly destroyed the business through a combination of arrogance and rudeness.
Better-known examples of failed nepotism might include Donald Trump’s efforts to make a TV personality of his daughter, Ivanka… legendary Florida State University football coach Bobby Bowden’s disastrous hiring of his less-than-legendary son as the team’s offensive coordinator… former New Jersey Governor Jim Greevey’s installation of his unqualified, secret "significant other" as his homeland security advisor (an action that led to his downfall)… and former World Bank President Paul Wolfowitz’s questionable decision to promote his girlfriend and give her a pay raise (which, along with other factors, forced him to quit).
Based on these examples, nepotism – favoritism based on a family relationship – clearly has its risks. But for the most part, I’ve had good experiences with it.
Many of the best employees I’ve hired over the years have been the brothers, sisters, spouses, cousins, uncles, aunts, and even grandchildren of other employees. At most of the companies I’ve owned or worked with, nepotism has not just been tolerated, it’s been encouraged.
The same has been true with respect to friends.
I have found that recruiting new employees through existing employees has been the single best way to find great people. And when I do a mental role call of the 30-odd senior people running the companies I’m involved with, at least a third of them were originally friends or relatives of existing employees.
It doesn’t surprise me that friends and family members make for good hires. Smart, hard-working, goal-oriented people tend to live in clusters – either natural formations created by DNA and family culture or social formations created at colleges or in clubs.
Back in the days when I was a CEO, I made it a policy to work the friends-and-family game whenever I needed to bring in someone good. I would speak personally to every superstar employee and ask them if they knew anyone who would be right for the job – "maybe a relative or friend," I’d add.
Working the superstar network was always my first effort, because it was easy, fast, and produced good results. It didn’t always work – especially after I had pumped the well dry – but it was an advantage I had that my competitors who were scared of nepotism lacked.
Hiring good people is difficult. It is so difficult, in fact, that it is foolish to have a policy that discourages the hiring of friends and family members. If you want your business to grow as fast as it can, you should do the opposite. You should actively recruit from these pools of potential superstars.
A few simple rules can greatly reduce or eliminate the nightmarish problems that can arise.
Rule #1. Never, ever hire a friend or relative to work directly for you. You don’t have the judgment to evaluate them objectively – and if things go bad, you can ruin the primary relationship.
Rule #2. If you want to give a friend or relative an opportunity to work in your business, tell them about the job and recommend that they apply for it. You can also tell their future boss that you have suggested the connection. But be very clear that you will not interfere at all with the relationship. The hiring, firing, compensation, and other aspects of the job are entirely the supervisor’s decisions.
Rule #3. If that person is hired, refuse to get involved. Don’t even talk to them about work. Tell them ahead of time that you want to keep your relationship personal and hold them to it.
Rule #4. If you want your child to work for your business, start them at the bottom and let them work their way up the ladder on their own. Banish any expectations of their taking over the business. What’s best for them is to end up in the job that best suits them. Let the natural forces of your business decide that.
Rule #5. When relatives and friends are being interviewed by their potential boss, they must be scrutinized and assessed with rigor. The person doing the interviewing should:
- Look for the right things.
Intelligence is important, but I’d list it third on my list of things to look for. I agree with Jeffrey J. Fox in his book How to Become a Great Boss that the two most important things to look for are attitude and aptitude.
- Flee flaws.
Generally speaking, a job candidate is at his best during the interview. If something seems "wrong," it shouldn’t be ignored – especially if it concerns qualities that are important for the job. Personal quirks are like the tip of an iceberg – what you see on the surface is a very small part of what you will have to deal with later.
- Don’t worry too much about specific experience.
Of all the qualities that are important to look for in finding a great employee, specific experience is not very high on my list. Yes, it’s good to know that the person you hire can do the technical work from day one – but on day seven or day 14, you’ll wish you had opted for the better, though perhaps untried and unproven, prospect.
By working your network, employing tough standards, and insisting on keeping personal and business relationships separate, you will be able to fill your company with smart, hardworking people – sometimes without having to place a single help-wanted ad.
[Ed. Note: For more of Michael Masterson's leadership techniques, pick up a copy of Power and Persuasion. ]
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- Justin Ford
Aspirin Can Boost Your Risk of Stroke
By Al Sears, MD
Yesterday, my neighbor asked me if it was a good idea to take aspirin to avoid heart attacks and stroke. I responded with a question of my own: "Would you take a painkiller if you weren’t in pain?"
TV commercials make it sound logical… but taking aspirin regularly just causes a new set of problems. What I call "the law of unintended consequences."
A new study published in Lancet Neurology found that older people who are taking aspirin "preventively" may be seven times more likely to have a stroke. The same researchers estimated that if the misuse of drugs like aspirin continues to increase, it may soon overtake high blood pressure as the leading cause of stroke in those over 75.
Instead of taking aspirin, take steps to lower your homocysteine levels. Your cells dump this "toxic waste" product into your bloodstream as they burn energy. Too much homocysteine is a serious health risk. In fact, homocysteine levels are a better predictor of heart disease – and stroke, by the way – than anything else, including cholesterol.
You can lower your homocysteine levels simply by supplementing with B vitamin. No harsh drugs are necessary. Here’s what I recommend:
- Vitamin B6 – 75 mg daily
- Vitamin B12 – 400 mcg daily
- Folic Acid – 800 mcg daily
[Ed. Note: Dr. Sears is a practicing physician and an expert on heart health. You can learn how to apply his winning heart-healthy strategies in The Doctor's Heart Cure.]
ETR Insider Report: We Need People Who’ve Read Michael’s Books to Speak Up!
Last week, I told you about the new Michael Masterson website. It’s almost up and running – but it’s missing something crucial: input from you.
The new site will feature sneak peeks at Michael’s new book on business building, Ready Fire Aim… regular updates on his best-sellers Automatic Wealth for Grads and Seven Years to Seven Figures… details on upcoming events… and, of course, Michael’s blog.
But in addition to all those goodies, Michael wants to make sure this site will be a place where readers can express their opinions about his books… ask questions about some of his ideas… share their own experiences with the techniques he describes.
I asked around the office to see if anyone had collected comments from readers who’d used Automatic Wealth for Grads to get a raise… or who’d used Seven Years to Seven Figures to start a new business… or who’d tried one of Michael’s recommendations and it was a big, sad flop.
Suzanne immediately came up with dozens of great letters that we’ve received in the past 12 months.
But we want to fill the site with even more reader responses. So I decided to go directly to you and ask for them myself.
So here goes: How did Automatic Wealth for Grads and/or Seven Years to Seven Figures help you become a better employee, a better businessperson, or a better investor?
Do you have a comment – good or bad – about Michael, his blog, or one of his books?
Send your questions, comments, and criticisms to me at ReaderFeedback@gmail.com. Include your name and hometown… and you just might see yourself in print on the brand-new Michael Masterson website.
It’s Good to Know: Using Bacteria to Store Data
Digital data is commonly stored on disks, computer chips, and hard drives. But Japanese scientists think they have found another format for storing text, music files, etc. – bacteria. Specifically, the researchers believe they can create different combinations of genetic codes in bacteria DNA to represent digital data (though they’re still working on real-world applications and practical ways to access it).
The motivation? Information stored in bacteria will last longer and won’t take up as much room.
(Source: Australian Associated Press)
What If There Was A Way To Legally Beat A Traffic Ticket?
“When Attorneys Get Speeding Or Traffic Tickets, This Is What They Do… No Points, No Increased Premiums & Definitely No Stupid Driving School. These Tricks Work Like Magic.”
If you’re like me then the simple sight of a police car in your rear-view mirror is enough to send shivers down your spine, but…
When the lights start flashing…
There Goes That Safe Driver Discount…Right? Not anymore…
- Patrick Coffey
Word to the Wise: Stertorous
"Stertorous" (STUR-tuh-rus) – from the Latin for "to snore" – means characterized by heavy, hoarse breathing.
Example (as used by Josie Glausiusz in Discover): "As pianist Dezso Ranki pounds and weaves at the keys, his breathing is at times so stertorous one could swear that someone in the audience is snoring."
[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]
Michael Masterson
Copyright ETR, LLC, 2007
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