Mark Zuckerberg – Forgiveness, Not Permission | Entrepreneur Profile

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Mark Zuckerberg

Mark Elliot Zuckerberg is a social media pioneer and currently, the CEO of Facebook.

He developed it as an online platform while attending Harvard University. Eventually causing Mark to move to Palo Alto, CA and run it as a business.

Zuckerberg’s interest in software programming was developed during middle school and he was taught  the basics of programming by his father.

During his stay at Harvard, he was able to study psychology but his passion for computer programming was hardly over. He created the prototype of Facebook which he called Facemash.

It allowed students to rate female undergrads based on their hotness. It didn’t take long for the complaints to start tumbling in and Facemash was shut down.

The “chaos” the Facemash brought forced Zuckerberg to apologize publicly. The incident inspired the idea of having a college website exclusively for students with their contact details and photos. Mark dropped out of school and focused on building a website with the same idea.

His idea materialized with the support and effort of his friends. Afterwards, the platform was shared to other campuses until it reached the entire country.

In 2007, Zuckerberg had a net worth of over $1 billion.

The social network has grown to over 1 billion users and counting.

Despite his enormous success, he faced many criticisms of his “ask forgiveness, not permission” attitude for site updates. They have been criticized for privacy issues, advertising problems, child safety, and controversial content.

Facebook was also negatively criticized by various groups for its censorship. As a result, some groups and individuals have filed lawsuits against Zuckerberg.

One particular lawsuit came from those who claimed to be the ones who helped Zuckerberg in creating Facebook. The suit lasted for years until Mark settled and surrendered an undisclosed amount of Facebook equity.

Zuckerberg has become one of the 100 most influential and wealthiest people in the World based on Time Magazine.

His story was turned into an incredible movie entitled The Social Network.

Currently, Mark Zuckerberg has personal wealth estimated to be at $9.4 billion.

Net Worth: $9.4 Billion

John D. Rockefeller – Fueling America | Entrepreneur Profile

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John D. Rockefeller

John Davison Rockefeller was born in Richford, New York on July 8, 1839.

He first worked as an assistant bookkeeper where he earned less than $4 per week. Yet, he remained focused on his job and worked hard until he was able to venture out into business.

At the age of 20, he got involved as a commission merchant of a company, which gained around $450,000 during its first year in business. Rockefeller was very careful when it came to investing. He ignored unnecessary risks and concentrated more on business opportunities.

He discovered great business potential in the oil industry during the 1860s and went on to found the Standard Oil Company.

Prior to the creation of the oil company, he was involved in the creation of Rockefeller and Andrews, partnering with Samuel Andrews, as well as the Standard Works company.

He created the company together his brother William Rockefeller, Stephen V. Harkness, Samuel Andrews and Henry M. Flagler. His oil firm expanded by buying out all of its competitors operating within his target area. Rockefeller made use of some monopolistic practices in terms of negotiating with shipping and railroads companies.

John D. Rockefeller was a big time businessman in the oil industry. He dominated the market owning more than 90% share as his empire continued to take over smaller oil companies. His highly effective strategy, however, resulted to an examination conducted by the Supreme Court, which later split his firm into smaller companies.

Every businessman is bound to experience a downfall. As for John Rockefeller, his relationship with the public went south.

He retired in 1895 and switched directions. He engaged with philanthropic activities, which lessened the attacks on his personal life and oil business.

A few years later, a book entitled “The History of Standard Oil,” which was written by Ida M. Tarbell revealed Standard Oil’s cruel business practices.

It was in 1911 that Rockefeller’s corporation was declared to have violated the Sherman Act and received an order to dissolve.

In the latter years, Rockefeller donated over $530 million and helped built the University of Chicago and the Rockefeller Institute for Medical Research or Rockefeller University. He also created the Rockefeller Foundation.

John Rockefeller was married to Laura Rockefeller. He had five children.

Rockefeller’s estate upon his death was worth around $30 million.  It’s been said that he was the first American ever to be worth more than $1 billion during his lifetime.  The primary reason for the decrease in his wealth was philanthropy during the latter years of his life.

He was known as one of the most prominent businessmen in the U.S. He was also recognized as one of the people who helped in building the Nation we have today.

Rockefeller’s amassed wealth during his lifetime would be worth around $340 billion if compared to its US dollar equivalent today.

Net Worth: $340 Billion
(adjusted for inflation)

Cash or Stock? 50 Cent, Shatner and The $ Billion Bet.

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50 Cent Shatner David Choe

If your company is just starting out or you’re having trouble finding traction, celebrity endorsement for stock compensation might be the perfect solution.

Yes, the rules have changed. As a startup, that can definitely work to your advantage especially when cash is tight. The good news is that most celebrities would love the opportunity to be paid in stock.

Influencers are starting to embrace the concept of building brands outside of their core acting or singing careers for the potential of long-term riches.

Let’s take a quick look at a few examples:

50 Cent

Realizing his massive popularity in 2004, 50 Cent was tapped as Vitamin Water’s endorser. I’m sure you heard the rumor that 50 Cent walked away with $400 million when he finally cashed out.

Though Glaceau CEO Darius Bikoff and president Mike Repole were initially apprehensive about getting 50 Cent as the company’s spokesperson, Chris Lighty made sure the deal was finalized.

It has been said that 50 Cent was given shares of the company, with a stipulation for possible increase should the company’s growth hit a certain number.

An agreement was signed between 50 Cent and Glaceau. Although it has been kept confidential, rumor has it that Chris Lighty was able to close a deal that eventually netted 50 Cent $100 million.

Total: $100 Million

William Shatner

The rumor regarding William Shatner’s $600 million earnings from Priceline.com also indicates how celebrities are taking advantage of stock compensation agreements.

William Shatner became a “Priceline Negotiator” in several commercials for the travel company. During that time, Priceline was getting high stock market valuations, which gave Shatner the idea to get paid in stocks instead of cash.

It was a smart move… until the company’s shares lost nearly half their value.

Rumors revealed that Shatner did not sell any of his stocks despite the company’s downfall moment. He continued doing commercials until Priceline regained the majority of these loses.

Again, those are just rumors. After some careful digging I found an interview where Shatner himself denied the rumor. He sold his shares when they were worth pennies.

Priceline is currently trading at more than $600 per share, and Shatner’s stock would have been worth around $600 million.

Total: $0 ($600 Million)

David Choe

Does the name ring a bell?

David Choe was an unknown graffiti artist requested by Mark Zuckerberg to cover the walls of his FB headquarters with some artwork. The Facebook CEO offered Choe $60,000 for the project.

It was quite an offer for someone who had yet to create a name in the world of graffiti art. But surprisingly, Choe did not accept the cash. He declined the offer and presented a different way of getting paid for the proposed work.

Choe opted to receive $60,000 worth of Facebook stock. It was one of the best deals any artist has ever made.

When the social network went public at an estimated market value of $100 billion, Choe’s stocks were expected to valued at $500 million. If he held onto the stock, it would only be worth about 60% of that.

Total: $300 Million

Indeed, artists or celebrities know how to make money. But instead of just relying on talent fees, they’re engaging in opportunities that allow their money to grow.

As a startup, still in the process of establishing a brand, paying celebrities in stock enables you to save drastically on marketing expenses and more importantly, overcome the “cold start” launch dilemma.

And, it is definitely a win-win situation for both parties.

Build Something That Sucks!

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Rug Beating

“Necessity is the mother of invention.”

Creating a successful company doesn’t actually start with the inception of a random idea. Reality is that most successful enterprises were built to address something that the world is missing.

Journalists claim Mark Zuckerberg created Facebook to meet more girls at Harvard. The service was missing, so Facebook was born.

Google’s founders wanted a tool that would make searching and organizing information on the web easier. Don’t believe me? Google it!

Build Something That Sucks.

Hundreds of years before the era of 20-something tech billionaires, there was a more fundamental problem… dirty carpet. Cleaning rugs meant hanging them over the wall and beating them with a carpet beater to remove as much dirt and dust as possible.

Imagine the time and effort involved in that process.

The desire to find an effective mechanical solution to floor cleaning resulted in the invention of Vacuum Sweeper. Ives McGaffey patented a sweeping machine on June 8, 1869. And that was the very first patent made for a rug cleaning device.

However, it wasn’t a motorized sweeper. McGaffey called it a Whirlwind, a hand-pumped vacuum cleaner introduced in the U.S.

Since then, other inventors followed.

John Thurman introduced the horse-drawn vacuum system through a door-to-door service in St. Louis. His rate for the cleaning service was $4 per session in 1903. He built a gasoline-powered vacuum cleaner a few years prior. It was considered the first motorized vacuum cleaner according to historians.

The popularity of using vacuum cleaners encouraged several other American inventors to create their own variations.

TTI Floor Care North America is at the top of the US vacuum cleaners category with a 32% share, along with Dirt Devil and Hoover brands.  Bissel Inc. has a 21% share and Eureka is at 17%.

In 2011, the vacuum cleaner industry’s posted $1.2 billion revenues, with estimated gross profit of 20.65%.

The industry continues to grow, and there seems to be no letting up as innovation to make the vacuum cleaner more economical, user-friendly and more innovative.

What other rug beating processes can you improve?

Build a product worth improving. Build something that sucks!

The Best of Zig Ziglar

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Best of Zig Ziglar

 

“It’s not what you’ve got, it’s what you use that makes a difference.”

– Zig Ziglar (Nov. 6, 1926 – Nov. 28, 2012)

Zig Ziglar, often introduced as “The Human Exclamation Point,” passed away this week. Yes, the total embodiment of the CAN-DO attitude has left us, but not without leaving important gems of thought that life has so much to offer, and that we have the power to change our own lives.

“Some of us learn from other people’s mistakes and the rest of us have to be other people.”

Born on November 6, 1926, Hilary Hinton Ziglar was the 10th of 12 children. His father died when he was 5, so he sold vegetables and newspapers on the street to help put food on the table.

Zig attended the University of South Carolina after serving the US Navy in World War II. Eager to continue his life of sales, he decided to leave the school to become a door-to-door kitchenware salesman.

He had his share of struggles at work, but his life took a turn when a company executive told him that he could be the company’s best salesman if he only believed in himself and set his goals.

The power of those words changed his life.

Soon, he began winning sales awards and eventually trained others in the art of sales. In 1968, he left the company, moved to Dallas and began working as the Vice President of a car accessories company. When the company folded, he established his own.

“When obstacles arise, you change your direction to reach your goal; you do not change your decision to get there.”

“If you go out looking for friends, you’re going to find they are very scarce. If you go out to be a friend, you’ll find them everywhere.”

“You are what you are and you are where you are because of what has gone into your mind. You change what you are and you change where you are by changing what goes into your mind.”

 

Best of Zig Ziglar | Top 5 Video Clips.

 

Attitude Makes All the Difference

This video takes us to the realization that how we see things is a reflection of who we are, and not what others really are. He narrates the story of a woman who hates her job so much, but eventually changed her attitude and sees the things that she despised so much in a totally new light.

Zig said, “Some who comes to you with a problem doesn’t necessarily want a solution.” So what are they really after?

Here he explored the attitude that drives people to do what they do, and reminds us that, “ The healthiest human emotion is gratitude.”

 

Keys to Igniting Motivation and Success

When Zig said, “Motivation is temporary, but so are bathing and eating,” he reminded us that in order for us to really live a fulfilled and happy life, we should always get up in the morning with a brand new hope. And that if we are able to do that each and every day, it’ll grow on us and will make us feel more revitalized in the process.

 

Setting Goals

In this video, Zig explains how valuable setting goals are in our lives. It’s a showcase that we can achieve something that looks absurd at first glance, if we’ll only put our minds to it.

 

Selling

Here, we watch Zig Ziglar talked about his passion, sales.

He tells us how uncovering a need, and bringing to your customers the solution to that specific need, can get you started on your sales career. He also illustrated how our life is really all about sales. And that this has been going on for thousands of years now.

 

Secrets for Closing the Sale

Zig reminded us to always deliver on what we promise. Here in the “Shame Close” (or also known as the “Guilt Close”), he illustrates how salespeople can really sell by allowing their customers to see what they might be missing if they don’t buy what you have to offer.

 

Best of Zig Ziglar | 3 Must Read Books:

 

See You at the Top

Structured more like a staircase, where you need to take each step before the next.

In this book, Zig Ziglar helped us understand how we see ourselves is as important as how others see us.

He also shared how the right attitude can take us from “mediocrity to meteority.” This book is an embodiment of business philosophy where little theory is involved, as it shares the real-life techniques of real people and what made them successful.

 

Born to Win

“A book dedicated to all those who were born to win, and not for those who are made with a spirit of timidity.”

The idea is both simple and deep. It’s realizing that for you to be able to win, you have to make sure that you plan to win and prepare to win. It’s telling us that it may not be easy. But everything’s really within our reach if we set our mind to it.

 

Zig Ziglar’s Secret of Closing the Sale

It’s a book that illustrates the power of persuasion. It teaches us how we can win in the game of life by convincing others and compelling them to take action, based on what we want them to do.

It tells us a no isn’t a no, unless we have conceded to defeat. A no is just merely an opportunity to open other people’s eyes to the reality that we’re seeing.

 

We pay tribute to a man who blazed trails in the field of sales & marketing and life. And who willingly shared what he had learned so that others may also know.

“You don’t have to be great to start, but you have to start to be great.”

Finding the Right Partner | The Steves

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Finding the Right Partnet

The Steves

Steve Jobs is acclaimed by many as one of the most revolutionary men in the history of technology.

But like many great leaders, Jobs didn’t reach that level of success on his own. Apple became the company that it is today with the help of his co-founder, Steve Wozniak, his long-time friend.

Yes, two Steves are definitely better than one. And you cannot have Steve jobs without Steve Wozniak in the same sentence if asked how Apple was founded in 1976.

Creating the foundation for a successful business becomes highly possible when two or more people are working together. Handling a job alone can be very difficult without someone showing you things from a different point of view.

Having a partner is not just wanting to have someone to share tasks with. It is about having a person who can assist you in staying motivated, sharing passion and keeping the team focused. And more importantly, a partner can also help you discover new business opportunities.

Jobs and Wozniak were high-school friends. Jobs was 26 and Wozniak was 21 when they organized Apple.

Wozniak, who has undergone computer engineer training, described Job’s incomparable passion for developing and marketing. Woz had all the technical abilities needed by the company, but he didn’t have the driving passion that Jobs did.

Woz created the world’s first assembled personal computer by collecting disjointed parts of the old Motorola 6800 CPU and soldering them on a motherboard. This became the prototype for Apple I.

Obviously, Wozniak and Jobs had very different personalities. However, they were still able to establish a firm that is now the most valuable tech company in the world.

In hindsight, a common admiration for people who think differently was what really brought them together. They founded a company that changed the way people live their lives today.

Where Steve Jobs was the marketing whiz, Steve Wozniak was the engineering guru; two very different people who created a bond by establishing a company that they both fell in love with.

Different skills. Different passion. But with a common goal, to think beyond the ordinary and make new things possible.

 

Tips for Finding the Right Partner

Finding the right business partner is not always easy, but the rewards are priceless if you’re able to find someone who shares your passion, your dreams and your attitude.

Here are a few guidelines when looking for a business partner.

 

Know Your Partner

Discovering your potential partner’s character is one way of understanding their business objectives. Your personality and skills should compliment and not clash. Keep in mind, just because you’re friends, doesn’t mean you should work together. In fact, that can be a quick way to ruin a great friendship.

 

Trust and Respect

Trust and respect are two of the biggest qualities entrepreneurs must have for each other. These two must come together; otherwise, you’re destined to fail. If you don’t trust your partner you’ll spend more time double checking their efforts and drain your limited energy with paranoia and negativity.

 

Complimentary Skills

Besides personality strengths, it is also important that your partner has the right skills for your business. For tech companies, make sure you have at least one engineer on the founding team. I’ve seen several tech companies fail with great ideas but products that never surface. If you’re an engineer with no design skills and limited charisma, partner with a marketing guru that shares your passion.

 

Challenger

Although it might sound nice, having a partner that simply agrees with you is a huge mistake. With no one to challenge your ideas and your thoughts, the drive to stay focused and improve your products will be lost. As they say, before peace, there’s always chaos. And an idea that is unchallenged is in its essence, raw.

 

A business is a like a boat trip. The sail may not always be smooth, but it’s comforting to know that your partner is willing to swim or sink with you.

Gangnam Style Success: The Secrets Behind the Viral Phenomenon

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Gangnam Style Success

Who would have thought a few months back that a 34-year old, portly South Korean rapper could actually surpass a teen pop star heartthrob, with millions of loyal fans, in YouTube’s viewership race?

This was thought to be impossible around six months ago when PSY’s ‘Gangnam Style’ first hit YouTube. However, the recent numbers show that PSY has already outnumbered the rather popular Justin Bieber’s ‘Baby’ — which toppled Lady Gaga’s ‘Bad Romance’ in 2010.

‘Gangnam Style’ has already earned ‘Gangnam Style Success’ with over 830 million views since it was posted last July while the Bieb’s ‘Baby’ that was released in February 2010 which stands at 803,732,000.

The same video by PSY has also earned the Guinness Book of World Records title for the most liked video posted on YouTube. At the time the recognition was given, the numbers stood at 5.3 million likes. As if these are not enough, PSY’s meteoric rise to fame has also seen him dance alongside big shots such as UN’s Ban Ki-moon, Hugh Jackman, Britney Spears, Madonna, and most recently, MC Hammer during the American Music Awards.

So, what does this viral video teach us?

There is no need to utilize a popular face to rake in big numbers, as there are other key points that can spell success for an advertising endeavor.

 

Be Funny

One formidable lesson PSY and his ‘Gangnam Style’ video relay is the fact that a funny and satirical video can be more relatable than its serious counterparts. This is what the video capitalized on to catapult PSY to worldwide fame. It displays a satire of a Seoul neighborhood renowned for its wealth (Gangnam). It also shows a fairly crazy horse-riding dance move along with a catchy croon. Gone are the days when videos have to be humorless in order to communicate their message. Fact is, people are humans, who find more comfort in funny things.

 

Be Short

The video, which is only around 4 minutes and 13 seconds, may be short but is jam-packed with messages. Remember that people have shorter attention spans these days. Brevity can serve better purpose than putting up an epic video. This is where talent in video editing comes in and there is no shortchanging that. This same concept conveys the need for simplicity.

 

Be Original

The need to keep things new is also necessary to have a successful marketing strategy. Take a look at PSY’s video and notice how novel his looks, moves and overall concepts are.

Finally, squeeze out those creative juices the same way ‘Gangnam Style’ did.

Data shows that the most successful campaigns are the most creative.

They present something unique and unconventional; something that makes them stand out from their competition. The campaigns they make also have a clear understanding of the audience they wish to reach. Often, these materials resonate the voice of their viewers.

 

Chew On This: It’s OK To Pivot!

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Doublemint, Juicyfruit and Big Red are among the best-known brands in gum. As the competition heats up, those popular names continue to dominate as Wrigley keeps a tight hold of the market. Believe it or not, Wrigley didn’t begin as a gum company at all. They learned early on that it’s ok to pivot.

Wrigley has been around for 110 years, long enough to consider the company a national treasure. Its many years of existence are due to the high quality gums the company has offered to the market. Wrigley Jr. Company is currently supplying almost 50% of the chewing gum sold in the U.S. It also holds the largest part of the gum market in Europe, owning nearly 50% of the gum profits earned in the region.

Other huge brands under Wrigley’s are Alpine, Extra, Eclipse, Orbit, Airwaves and P.K. it’s subsidiary, Armurol Confections Company also produced gums and confectionary products intended for youths and adults. Among its products that stood out in the market are Bubble Tape, Squeeze Pop, Velamints, Big League Chew and Hubba Bubba Sweet Roll.

William Wrigley Jr., the person behind Wrigley’s success, started out working in the soap factory after being kicked out from school several times. It was his father who put him into the factory, seeing if he could find his luck there. Wrigley has been stirring soap for a year, earning only $1.50 a week. He performed well and was promoted to a sales staff position.

Wrigley Jr. quickly earned skills and was able to sell tons of soap. However, every business has its downspin. His father’s “washed up” soap company started including gum with the soap to help increase sales. Wrigley discovered huge potential in selling chewing candy. His big hit on this new line of business started when he offered Juicy Fruit and Wrigley’s Spearmint to the market. The huge success of both brands encouraged him to go on manufacturing chewing gum. Eventually, they dropped the soap and stuck with the massively popular gum.

Wrigley’s gum business was a huge success not only because of the current status of the industry, but also because of the advertising strategies that he started applying. He created a campaign that motivated more individuals to buy. As a result, Wrigley’s market share extended not just to a single region, but to the whole nation. It multiplied his sales and moved his brand to the top rank. Wrigley’s Spearmint turned out to be the biggest-selling brand in the country.

From then on, Wrigley developed marketing and advertising techniques to increase the popularity of his chewing gum.

The company understood that it’s ok to pivot. From the 1890s to present day, Wrigley’s chewing gum product line is still a staple in the market. Consumers are still buying Wrigley’s gums regardless of the company’s decision to change direction and take a risk at trying something new. Wrigley’s plan for a major expansion has made its competitors and other players in the business curious as to what pivoting techniques Wrigley will be using next.

Instagram VS Kodak: Bits are the New Bricks

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Instagram VS Kodak

Online shopping is showing massive growth this Holiday season. Anyone who consistently uses the Internet will most likely shop for goods online. Businesses are aggressive in looking for ways to reduce their costs and raise their profit margin. Eliminating the middleman of a physical store can significantly increase their savings. Thus explains the rise in internet-based start-ups.

For most entrepreneurs, an online business is without a doubt easier and more convenient to manage, although it faces a completely different set of challenges. Market research for the target market and demographics should be done in both business types. However, in running an online business, there is no need to specify a particular area and the business will not be limited by its location. Instead of doing the legwork, online entrepreneurs can do their market research sitting down in front of their computer making use of various online resources.

The start-up capital to open an online business is also much less compared with that of a physical “brick-and-mortar” store. Marketing and advertising costs are also significantly less with the presence of various online marketing tools. In fact, most online marketing tools are even free of charge. However, it takes quite a lot of time and effort to advertise an online business. Some of the most common advertising strategies often used by online business entrepreneurs are; blogging, visibility in various forums and chat rooms, social networking sites and blogs. Online visibility is the key.

Online businesses also have less overhead costs. As long as the aspiring entrepreneur has a computer, good Internet connection, mobile phone or landline phone, and email address, an online business can be successfully launched. Familiarity of various Internet tools is likewise important to maximize available resources for an online business. Having a website that is solely dedicated for the business is important thus it would be necessary to have a domain name and a web host.

The declining interest for brick-and-mortar based start-ups can be attributed to the presence of online businesses. A brick-and-mortar based business demands a lot of physical requirements that dramatically increases its cost of operations, marketing and advertising. However, virtual online business set ups are arguably easier on the legwork and most definitely easier on the budget. Moreover, start up capital for online business set up is less because they operate online as compared to a brick-and-mortar based store which demands for a good location, space rental, store renovation, operation costs, employee salary, and other variable costs. This comparison between the set ups of virtual online business and brick-and-mortar business has come to the attention of a lot of entrepreneurs, including the ones who are still on the planning stages of their business. Ideally, the business set up preferred by most of entrepreneurs is the one that requires minimal cost in terms of capital and operations yet delivers a decent profit.

 

Case Study: Instagram VS Kodak

Eastman Kodak’s losses increased to $312 million while struggling to emerge from bankruptcy protection. The company is working on preparing for the next disaster, consider selling its patents and pulling the plug on consumer inkjet printers. The decrease in its revenue caused the company to eliminate 775 jobs during the third quarter and the charges that occurred from this move accounted for its latest loss. More than 2,800 workers were affected since the start of the year. Since the end of 2007, this 132-year old company has now lost more than $3 billion. Once considered a pioneer of technology, Kodak filed for bankruptcy protection last January and is currently seeking court approval to wait until the latter part of February for bankruptcy reorganization plan.

Meanwhile, Facebook’s $715 million acquisition of photo-sharing app, Instagram, happened less than 18 months after Instagram launched. Following the super-hyped “billion dollar” acquisition of Instagram, Facebook is actually costing the company much less because of its falling share price. This is revealed to the public in the company’s quarter report. So far, Facebook has already shed off $521 million in cash and stock.

 

Kodak

Founded: 1892
$57 Million (Nov. 2012 Market Cap)

Instagram

Founded: 2011
$715 Million (Sept. 2012 Acquisition)

 

How to Increase Employee Loyalty | Gamification Tips

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Job turnover is a sure thing. It is inevitable for employees to come and go for different reasons. The big question… how to increase employee loyalty to minimize job turnover rate?

On average, employee turnover rate in North America is in the 25% to 30% range. The estimated cost of turnover is about 25% of annual salary and could go as high as 250% for entry level and for senior management positions.

The problem of employee turnover should never be ignored; it should be treated like a cancer that’s eating up profits. As a matter of fact, the sales required to recover the costs can be detrimental to a business.

A research from the UB School of Management found a solution to the problem. In this study involving MMORPGs (Massive Multiplayer Online Role Playing Games) and other online games such as FarmVille, it was found that users were likely to return to these subscription-based games when they feel that the characters are their virtual representations: something that they can relate to. Loyalty also blooms when there is a continued change in the environment, and they get to associate themselves with like-minded members.

In the study, 173 players were tested to analyze player loyalty. It was discovered that the players who were able to create their own characters develop a deep sense of loyalty. Furthermore, the creation of guilds and in-game chat systems encouraged players to socialize.

By providing equal opportunities to any player to win a game, the player develops a sense of ownership of the character. And when the player customizes his character, the loyalty starts to grow.

How can these findings be applied in increasing employee loyalty in the workplace? Business owners can learn a lot from the results of this research. For one, it is best to create a constantly changing work environment that provides every member of the organization the opportunity to win. When there is a constant challenge in the workplace, employees are steadily improving to compete and shine. This is the concept of character customization, allowing every employee to develop his or her own skills.

To increase employee loyalty, it should also be a priority to bring together like-minded members.  This idea of creating groups and teams with similar passions just like in guild features can help build strong support groups and a sense of belongingness. In this case, encouraging socialization is an important factor. By giving importance to communication, employee loyalty can be further enhanced.

In the end, reducing job turnover rate is a big challenge that every business should face head on. By creating a constantly changing environment, driving employees to customize themselves, and having groups and teams of like-minded individuals for better communication, increasing employee loyalty can be drastically improved.

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