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How Mukesh Ambani became the Richest Man in Asia

Forbes and Bloomberg now rank Mukesh Ambani as the richest man in Asia as shares of his reliance industries which he owns about 38% (according to a filing with Bombay stock exchange) has skyrocketed.

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Ambani is now richer than Jack Ma of Alibaba Group and Ma Huateng of Tencent Holdings.

Reliance Industries shares surged nearly 6% during trading on Thursday and nearly 1% today already. The company is now worth over $100B; the last time the company was this valuable was in 2008.

The stock has dragged the S&P BSE Sensex for years until last March when its telecom unit, Reliance Jio Infocomm Ltd. decided to start charging for its services.

Recall that Jio debuted in 2016 and made history when it gained 100 million users in just 170 days – about 7 customers per second after giving subscribers dirt cheap data and call services.

Investors upped their price target for the stock after Ambani assured shareholders earlier this month that he has a fierce strategic intent which will position the company to take substantial e-commerce market share from big players such as Walmart and Amazon.

Reliance Industries controlled by Ambani owns the largest refinery complex in the world. Ambani’s 27-story residential house is estimated to cost around $1B billion according to some analyst familiar with the matter.

It is made to withstand an earthquake with a magnitude of 8 on the Ritcher scale and this house often called Antilia is the second most expensive residential home in the world after Buckingham Palace.

As of 1:36pm WAT, Ambani is worth $45.1B according to Forbes.

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Family Business Succession Planning: Creation, Template, Model, and Sustainability

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Family Business Succession Planning

Introduction

Many family-owned businesses don’t make it past the second generation, and only a few get to the third. The primary reason is the lack of family business succession planning. 

If you own a family business, you may be wondering how to prepare the next generation to take over. However, in this article, we’ll share insights about family business succession planning. Additionally, you’ll learn how to create a plan that’ll be sustainable in your absence. 

Succession in most family-owned businesses operates around the assumption that the next generation can successfully run the company as the predecessor did. However, this idea fails to account for the fact that each new generation has different leadership skills, abilities, and interests. 

Also, there’s the factor of the business context that shifts or evolves, which businesses fail to consider. Here is where family business succession planning becomes relevant. 

What is Family Business Succession Planning?

Family business succession planning is a process where a family-owned business devises strategies to hand over the reins to a next-generation family member. A succession plan is why multi-generational family businesses have a firm staying power. From one generation to another, they keep upholding the organization’s vision and founding principles. 

Therefore, heads of family businesses need to start planning for their successor as soon as possible. The reason is that it may take years to groom a strong and capable leader. Also, the more time business owners spend executing a succession plan, the smoother the transitioning process will be.

Read Also: Corporate Level Strategy – Definition and Types

The Creation of a Family Business Succession Plan

Michael Evans of the Newport Board Group recommends five significant steps that family-owned businesses should follow, to create a viable succession plan. These steps also comprise several mini-steps, and they include:

Establish Goals and Objectives

Leaders of family businesses should first identify clearly the visions, goals, and objectives of the organization. This step also addresses the importance of continued family involvement in leadership and the option of bringing in external professional management. 

Additionally, the management team should consider retirement goals and the cash flow needs of exiting family members. Likewise, they should take into account the personal and business goals for the incoming generation.

Establish a Decision-making Process

This step identifies and establishes, in a written document, the process for involving family members in the firm’s decision making. It also lays out procedures for resolving disputes.

Establish the Succession Plan

In creating the succession plan, management should identify successors- both managers of the company and owners of the business. They should also define each family member’s role, either active or non-active, and any additional support the successors may require.

Create a Business and Owner Estate Plan

This phase addresses any tax implications to the owner or business upon transfer of ownership, death, or divorce. It also reviews the owner’s estate planning strategies to minimize taxes and avoid delays in stock transfer. Furthermore, it should create a buy or sell agreement that is fair, reflective of the business’ value, and tax strategic.

Create a Transition Plan

The business owner should consider the options of an outright purchase versus a gift/inheritance, or the possibility of combining both options. This step also considers external financing or self-financing from the retiring owners in case of a sale. Finally, the business owners should establish a timeline for implementing the succession plan.

Family Business Succession Planning Template

Family business succession planning may seem difficult to carry out. Therefore, most family-led organizations employ the help of professionals like lawyers and accountants when crafting a plan. 

However, if you’d like an easy way to go through the process yourself, you can use a planning template. There are several of these templates online, either for free or a small fee. A template makes the planning process a breeze, and also gives the succession plan a professional look. 

Family Business Succession Planning Model

A succession planning model helps illustrate the family’s interaction on management and ownership of the family business. A simplified model, called the Three Circle Model, consists of the ownership circle, the management circle, and the family circle. 

Three circle model of family business succesion planning

These circles represent the interaction/impact that each component has on the family and the management of the business. It also illustrates the relationship between each element and the other. Furthermore, it shows how they meet in the middle, indicating a mix of family, ownership, and management at some point in the business.

From the circle, it’s easy to see how the three components’ interaction can create challenges and provide unique opportunities. Therefore, the family business’s ability to transfer ownership to the next generation depends on the management of the family component.

Read Also: Concept of Management in Business

Sustainability in Family Business Succession Planning

If you run a family business, you’ll want to give your company the best chance at a transition. Most importantly, you’ll want to ensure that the business thrives for several generations after your exit. To ensure the sustainability of a succession plan, consider these tips.

Plan Early

Sustaining a succession plan begins with the timing of crafting the plan. As a rule of thumb, you should prepare a succession plan at least ten years ahead. The earlier you plan, the better your chance to mentor the successor and the smoother the transition process.

Involve Family Members

The best way to avoid discord among family members is to involve them in the planning process. It also helps you identify which family member wants to be involved in the business or intends to pursue other careers. 

Be Realistic About Picking a Successor

While it may be your desire to leave the business to your first-born, he/she may not have the necessary managerial skills. So, it’s best to do an honest assessment of which family member is capable before picking a successor. 

Train Your Successor

A succession plan can’t be sustainable without training the next generation to take over the business. Consider dedicating some years to work with your successor while teaching him/her the required business skills.

The Bottom Line

Irrespective of how successful a family-owned business becomes, leadership roles must change someday. This event may be voluntary, as in the case of retirement or involuntary, such as death or incapacitation. However, a succession plan ensures that the business will continuously operate with no disruptions and minimize tax implications for all parties. 

Business leaders should start building their exit strategy right into their business plan. Firstly, long-term succession planning helps businesses determine how well the successor can execute management tasks and gives them time to learn. Lastly, it helps to facilitate an orderly transitioning of management and ownership.

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Psychographic Segmentation: Best Practices for any business (+ practical examples)

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Psychographic segmentation

Psychographic segmentation is an important aspect of marketing. It gives you deeper insights into your consumers and the choices they make.

This article will provide you with all you need to know on this topic.

So, let’s dive in.

Psychographic segmentation

Basically, we have several types of market segmentation, and psychographic segmentation is one of them.

Psychographic segmentation is the type of market segmentation that separates consumers into sub-groups based on their psychological characteristics. These sub-groups include beliefs, priorities, interests, etc. As a result of this, we are able to explain and predict consumer behavior.

Furthermore, this market study helps you understand your consumers well, and find out the reasons they buy.

However, many people think that you can get a better understanding of your consumers just by studying their demographics. But, I daresay that its important you do proper research and add common psychographic characteristics for additional clarification.

A very good example would be a company that sells fishing gear. It runs a quick psychographic check on its prospects and notices this prospective buyer is an introvert. This will give the company a better understanding of the consumer. With that information, it will choose to display ads that reflect people fishing alone that exhibits solitude and peace.

Clearly, this would relate better with this prospect.

On the flipside, Behavioral and Psychographic segmentation may seem alike, but they are not.

So, let’s explore the difference between the both of them.

Read Also: Market Segmentation: All you need to know with Examples

Behavioral and Psychographic segmentation

Psychographic segmentation is simply dividing a market into related consumers based on their lifestyles, values, interests, and personality characteristics.

It is the time invested into understanding how the person lives, thinks and feels.

Furthermore, Psychographic segmentation tries to uncover what is important to a consumer and what drives them to act in certain ways.

On the other hand, behavioral segmentation does not refer to the behavior of a person. It rather refers to the measurable actions of a consumer in the marketplace.

Also, it reflects how the consumers interact and engage with products of a company.

The variables used in behavioral segmentation include: Attitude towards brands, brand loyalty, etc.

Psychographic segmentation advantages

There are so many benefits attached to using psychographic data. They include:

  1. Psychographic Segmentation reveals greater insights at reasons behind buyers’ decisions. uncovers unseen motivations and attitudes behind buyers’ decisions.
  2. It helps marketers adjust their product features and messaging to better fit their target audience.
  3. It creates a better understanding of the consumer.

Conversely, Over the years, some brands have used psychographic data to their advantage. Let’s take a look at some of these brands:

Psychographic segmentation examples:

McDonald’s

McDonald’s is one of the fastest rising restaurants in the US.
It is one of the biggest examples of brands practicing psychographic marketing.
McDonald’s has adapted itself according to the convenience, social class, and lifestyle of its consumers.
An outstanding example was the case of a country that had a huge vegetarian population. They came up with new product lines to blend in. These included items like Mc Veggie Burger and so on.

Starbucks

This brand is a major coffee retailer that focuses on a variety of brands of blended coffee and ice beverages.

The brand has adopted several marketing strategies to gain and retain customer loyalty. One of the key marketing strategies used is psychographic segmentation.

Furthermore, this company targets customers based on lifestyle choices and attitudes.

But this article wouldn’t be complete if we don’t mention some tools used to get psychographic data.

Market Segmentation: All you need to know about

Psychographic segmentation tools:

Google Analytics

This is a free and detailed online guide. Google analytics gives you access to some broad psychographics of your website visitors.
You can use the insights gotten from here to find out the interests of your audience.

Social media

Every social media platform that offers advertising services will provide psychographic details.

Platforms like Twitter, Facebook will give you insights of the interests and lifestyle of your audience. .

Website data

Another option is to run experiments on your website. You can run various experiments to test what your visitors respond to regarding copy, product characteristics, et al.

Surveys

Surveys are also a good way to get psychographic data, but sometimes might not be so effective.

Interviews

Having one-on-one conversations with a consumer is another way to get deeper insights into how these people think and act.

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Affiliate Marketing for Beginners (20+ Companies to start with) +free courses

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Affiliate Marketing




We all love the idea of passive income. Earning through a system that functions on autopilot, or like several platforms put it, “Earn while you sleep.” But in most cases, we do not usually see the possibility of this. Apparently, a good number of us are in the dark when it comes to systems like Google AdSense, Affiliate marketing, and the rest of them.  However, in the post, we’ll be going through just one of these systems- Affiliate Marketing. But, mostly, it’s going to be a guide to Affiliate Marketing for Beginners and Affiliate marketing Companies to earn from.

So let’s start with the basics. 

What is Affiliate Marketing?

Pat Flynn’s Smart Passive Income gave a detailed yet simplified definition of Affiliate marketing: 

Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others, and earn a piece of the profit for each sale that you make. 

However, the underside of this definition is, we think all it takes is putting a bunch of promotional codes on websites while waiting for visitors to buy from your link. Some take a step further to running paid ads to get results.  

Though, these strategies may have worked in the ’80s but not anymore. A trip to our Content Marketing post will shed more light on this assertion.  

Read Also: PRODUCT MARKETING: Overview, Examples, Strategy, Job Description, Jobs (+ free courses)

How does Affiliate Marketing work? 

According to Wikipedia, the concept of Affiliate marketing usually involves four parties, even though, in reality, there are just two sides to this coin. 

Just to clear the air though, we’ll briefly go through the four.  

The Merchant  

This party is at the top of the food chain. They are known as the brand, the vendor, or the creator.  

They are responsible for creating affiliate products.

Furthermore, participants of this party range from small companies or individuals like Mariah Coz to the big shots like Alibaba. 

But for the most part, these set of individuals do not have to be actively involved in the program. They just need to have the products, manage the program, and send your percentage after a successful sale with your affiliate link. 

The Affiliate  

This point is where you come in. An affiliate is one who promotes single or multiple products from the merchant in a bid to convince and attract potential customers into buying these products.  

Participants of this party range from individuals to companies. Affiliates basically wield the power to make commissions of a few hundred dollars to millions – depending on your approach.  

However, a basic strategy most beginners in affiliate marketing have adopted in recent years is running reviews or comparisons on the merchant’s products. But an effective review that may lead to purchases is dependent on a few factors which include the following:  

  • Buying the merchant’s products for personal use.  

There is a limit to the number of individuals you can convince with a product review based on just reading a bunch of stuff on the net. People tend to see through scenarios like this. So if you want to go down this path, ensure you buy the product first. This way, you’ll be able to get first-hand information about the product and write reviews based on personal experience. 

Read Also: Facebook Marketing: Best Guide to Scale any Business (+ Free Tips)

  • Optimize your posts for SERPs 

Whether you’re writing reviews as a guest author or on your blog, ranking on the Search Engine Results page is a no brainer. Check our post on content marketing to get acquainted. 

The Consumer 

The consumer or customer is an essential piece of the affiliate marketing program because, without a sale, it’ll be impossible to generate revenues or hand out commissions. 

However, affiliates are responsible for making these sales happen with channels that conveniently suit them. Channels like social networks, digital billboards, or search engines using product reviews or content marketing on blogs are usually the best bet for affiliate marketing beginners. 

Furthermore, in most cases, affiliates tend to be transparent with the consumer even though it’s general knowledge that marketers get a commission from each sale. But while divulging this information may help you get a sale faster, it’s pretty unimportant 

Marketers basically take this path to the trigger emotions of the consumer. But, it’s usually more professional to let the system work automatically. That is, allowing the consumer purchase the product like they usually would while getting your commission at the end of the day. 

The Network  

Although a lot of people fail to acknowledge the existence of this party, it goes a long way in ensuring balance in the process. The Network basically acts as the middle man between the Merchant and the Affiliate.  

However, it is technically possible to deal with the Merchant directly and just get your cut at the end of a sale. But with networks such as Commission Junction and Clickbank in the picture, it is almost impossible to worry about product delivery and payments.  

Furthermore, this party exposes you to an unending list of products to choose from. On the flipside dealing directly with Merchants streamlines your options just products the brand produces. 

A perfect example is the Amazon Associates affiliate program. Basically, every item sold on this platform is accessible by affiliates. 

All it demands is a sign-up, and you’ll be able to generate a custom affiliate link to any product of your choice. 

But like I said earlier, there are just two sides to affiliate marketing: The Merchant and the Affiliate. In other words, you can either become the brand and have others promote your product for a commission or become an Affiliate and receive commissions for promoting the Merchant’s products. 

The conventional path is usually to skip the brand making process and become affiliates, which is the easier route. So below are top affiliate marketing companies to earn from. 

Read Also: Marketing Communication: All you need to know (Detailed Guide)

Affiliate Marketing Companies

With the vast amount of affiliate marketing companies out there, choosing the right program could prove tricky. Regardless, this part is pretty important because a wrong choice could frustrate your efforts. So before getting you acquainted with some of the best affiliate programs, I have put together factors to make your choice process more straightforward.  

These factors need to be studied, evaluated, and compared to make sound decisions at the end of the day.  Furthermore, you may need to apply them in making choices beyond the programs listed in this post. So, let’s a quick look at them. 

Commission Rates 

Almost 95% of individuals who venture into affiliate marketing do so for the money. It’s the reason commission rates are a predominant factor in this line of business.  

Popular perceptions say, “the higher the commission rates, the more you convert.” But over time, marketers have come to realize that lower commission rates convert more.  

However, a typical example of a pretty decent rate would be that of LambdaTest. The program offers a flat rate of 25% on all recurring commissions and 50% on the first transaction of the month.  

Product Kind  

If you already run a blog or website in a particular niche, say, for example, a web-development-related blog, you would need to target affiliate companies with digital products. Considering your position as a beginner in affiliate marketing, you should stay away from products that have nothing to do with your niche. 

Furthermore, another important side of this is the value of the product. You don’t want to have to deal with promoting products people do not need.  

So, all you need is an in-depth research on products in your niche before you make a pick. You want to go for products with high demand throughout the year.

Affiliate Company Reputation 

A vital part of picking an affiliate marketing company is reputation. You would need to conduct a background check on these programs to ensure they’ve had a flawless reputation in the past.  

Although it is almost impossible to find a program that’s had a perfect record, yet a better reputation comes from the ability to effectively minimize and deal with problems when they show up. You also want to know how responsive their customer care representatives are.  

Indeed, at some point, you may need answers to vital questions, and it’s going to be a massive put off having to deal with customer care representatives that are unresponsive.  

So, a necessary fix will be ensuring your background check is thorough. Read unbiased reviews from existing affiliates. Fabricate problems and contact their customer care to see how responsive they would be.  

Method of Payment 

Most programs employ different methods of payment when disbursing commissions to their affiliates. While some programs pay monthly or weekly, a handful of others require that you get to a threshold amount before you request a payout. For example, before you get paid on the Konga Affiliate program, you would need to make up to N5000 or US$12.86. 

However, this could become an issue when you need to withdraw funds urgently. So, if you fall under this category, you might want to try out Clickbank. 

Furthermore, due to the ban on some countries by Paypal, you should also consider programs that are versatile with payment options. 

List of Best Affiliate Marketing Companies to earn From 

Based on the above factors, I have listed some affiliate marketing companies to help you get started, with links to their About us page. This is in a bid to give you a head start with your background checks and familiarize yourself with the platforms. These companies are, however, cataloged into four sections: 

Best Affiliate Marketing Companies for Beginners

Highest Paying Companies

Best Companies for Bloggers 

Best Affiliate Networks 

How to Start Affiliate Marketing for Beginners

So, according to Shopify, all you need to get started include the following simple steps: 

  • Research and join a reputable affiliate program 
  • Pick which offer or product to promote 
  • Obtain a unique link for each offer or product  
  • Share those links on social media platforms, your blog, or website 
  • Get a commission each time a buyer uses any of your links to make a purchase 

However, in the real world, it doesn’t pan out like this. Using the above method only drives you to run paid ads, pay influencers to get your link out there, or worse still spam.  

The steps outlined below should get you started on the right path. 

Read Also: CPA Marketing Guide 2020 (+ Free Course)

Research  

Prior to starting out in Affiliate Marketing, this step is the most vital. It helps you decide the basic stuffs like:  

  • Choosing between a blog or landing page  
  • Choosing between affiliate merchants or affiliate networks 
  • The Kind of niche and product you would want to market   
  • The type of layout for your blog or landing page  
  • The Affiliate marketing program that best suits your niche and so on  

Making these decisions would get strenuous without strategic research. An excellent place to start with your study is using a tool known as Google Trends. You can basically research on any niche that comes to mind with this tool. It gives you real-time data on market saturation for any product you can think of. Also, an added advantage will be knowing how to explore google search results. 

However, there are other research tools out there that could aid you in making informed decisions rather than decisions based on feelings or passion. 

Choose an Affiliate program and then a Product to promote 

At this stage, your decisions concerning the kind of product, niche, and program should have been made. All that’s left will be to go ahead and pick any program of your choosing, register, and then get the affiliate links to the products you wish to promote. 

The odds would be in your favor if you opt for Affiliate networks rather than merchants. Apart from getting a huge range of products to pick from, most affiliate merchants require you already have a functioning blog with a reasonable number of traffic before you can be accepted. Although there are some exceptions that you may find out during your research phase.  

But lucky you, this factor was considered in handpicking the Best Affiliate Marketing Companies for Beginners. 

Create a Blog or Website 

While a landing page may be easier to maintain, a better approach would be to build a website or blog. Reason being that it helps you take the content marketing route, which is the most lucrative path in this business.  

Luckily, building a professional website these days do not require any form of codding. Few tutorials on the net could get your website up and running in a matter of hours. A few of them are listed below: 

Install an Affiliate Management Plugin 

As an affiliate marketer, you would need to keep track of your links embedded at different locations on the net. You may be successful at this manually in the beginning, but as you go deeper and your links increase, the task gets more tedious. Especially in cases where you have to update expired product links. 

 Although these updates do not occur very often but imagine a scenario where you have to first pinpoint the location of these links and then update them one after the other. 

Well, this is a one really strenuous task that can be avoided by installing an affiliate management plugin like Pretty links. 

Asides the fact that it is user-friendly, it will be able to accomplish these tasks outlined above in minutes if that day ever comes. 

Create Relevant and High-Quality Content to Promote your Affiliate links  

Now that your website or blog has been created, you would need to create relevant and quality content to boost your marketing. You can go through our guide on content marketing to get you started. 

This strategy is a no brainer because basically every route you might want to take to promote your products in this era may come out as offensive or irrelevant to your target audience. Talking about paid ads, sharing links on social media platforms, and spamming. 

So, your best bet to making the money you desire in this field is staying relevant to your audience.  

And staying relevant means feeding them with the relevant content they need while marketing your affiliate products behind the scenes. Smart right?  

Click here to find out how to go about this.  

Free Affiliate Marketing Courses

To further broaden your knowledge on affiliate marketing as beginners, I  have outlined some free course below;

  1. FREE Affiliate Marketing Course for Beginners
  2. Affiliate Marketing A-Z
  3. Guide to Effective Affiliate Marketing Strategies
  4. Intro To Affiliate Marketing for Beginners
  5. Passive Income: Affiliate Marketing [WordPress Website]

Conclusion 

A wrong approach to affiliate marketing could dash those high hopes you had starting out. Hence the need to read through this post on Affiliate marketing for beginners. So, following the steps outlined in this post closely, will get you started on the right foot which is a vital factor in earning big as a marketer.

All that’s left is to take action on what you’ve read.  

 

 

 

 

 

 

 

 

 

 

 

 

 




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