So what is it? It is search engine results advertising, or pay per click advertising.

A couple of years ago, I took an Internet marketing class, although it was basically a waste of my time, there is one thing which really stands out from that class.

We were taught “”when advertising on the Internet, find something that is really hot and connect your keywords to it”" to generate more traffic and greater results. The example we primarily used was “”who is hot in entertainment”". For example, if Britney Spears is in the news, use her as a keyword and link your site and your ad to anyone who is searching for information on her.

Well, at the time, I thought it was silly and actually unethical, so I never used that technique. After all, people searching for Britney would never be looking for a way to improve themselves or even a home based business.

But today, I find this tactic is being so badly misused in Internet Search Marketing. Google any legitimate business or person and what you will find is paid advertising, ads that blast or slam the company only to bring attention to another company.

I find this especially true in home based businesses, but don’t just take my word for it. Google any legitimate business, businesses where people are having amazing success and results and see for yourself what those with no ethics are doing.

You will find things like “”Why I did not join”", Why I quit”", “”This is a scam”" and the disgusting antics go on and on and on.

Most Internet marketers would NEVER pay any attention to ads such as this. Marketers know these people are just using unethical approaches to ride the tide of success of other legitimate marketers. But the inexperienced public does NOT know this. Unfortunately they believe what these guys are saying. All they really have to do is click on the ads and see that it is actually an ad for another company. Duh! How hard is this to figure out??

Why do you think advertising always slams the other guy? If the other guy is hot, then jump on the bandwagon. That is all these sleazy people are doing, is jumping on the bandwagon of success. Making a disgusting attempt to legitimise themselves by disenfranchising the real marketer.

So, what do I suggest? Do your homework. Talk to people who are ACTUALLY involved in the opportunity so see what they think. Talk to the Attorney General of the listed home state, talk to the Association of Home Business, talk to the State Incorporation offices, they will tell you all you need to know. BUT, do not listen to unethical, sleazy people who do not know how to advertise without slamming another company.

Anyway, why would ANYONE want to get started with a business who bases it’s advertising on slamming other businesses? That would certainly be a red flag to me and businesses started with this technique are surely going to have little success. It is the law of nature, the Law of Reciprocity”".

And one more thing I absolutely must add here…

Adults have to be responsible for their own results in life. If someone fails at any business opportunity, it is because THEY failed. Either they did not follow the already proven systems (trying to reinvent the wheel), or they were waiting for someone else to do the work for them, or maybe even they never expected to succeed anyway. I truly believe this is why most failures occur, there was never a level of expectation for success.

You should also trust your feelings in these cases as well. If a product feels right, if it is hot, if it is cutting edge, and if others are having success, then there is no reason why you can not as well as long as you are willing to do the work.

So get out there and find what you are looking for, but stay away from paid advertising slamming your company and let those who are practicing this know, it DOES NOT WORK FOR YOU!

To your success…

Wanda Grindstaff is recognized in the Direct Sales industry as a true leader. She teaches a very simple system to assist people in accomplishing major income goals. Serious entrepreneurs are invited to request information on starting a home based business. For more information, visit her here.

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Tags: marketing, ethics, ethical, competition, compete

Direct Marketing

Of all the proven marketing strategies, none have gained as much reputation as direct marketing. A successful direct marketing campaign will give you amazing results and will propel your business to newer heights. If you can set up a database of the most probable and right customers and mail to the right customer all the time, then your direct marketing campaign will produce better results. The right customer will read your mail while the others will dismiss it as junk. You want more people in the right customer category than in the junk category. Boost your mail with the right information and dialogue. List the benefits of your product or program in small sweet paragraphs. Finally make an impact with it.

Online Marketing and lead generation

If there is anything in the last decade that has changed the way we live, then it is the internet. So you need to incorporate the internet into your business marketing program. There are several online marketing strategies that are proven winners. Lead generation, affiliate marketing, direct marketing and many more such marketing programs are available online. There was a time when lead generation on the internet was considered to be a dead end. But now there are more precise lead generation models that have put the earlier lead generation practices behind. Lesser number of fraudulent leads is being generated and the other online marketing strategies are also improving.

Guerilla Marketing

This relatively new low cost marketing strategy has created a huge impact on online marketing in the last few years. It relies on the principle that direct marketing is saturated and customers today are unaffected by these strategies. Hence guerilla marketing relies on getting you and your product in the places which customers are most likely to be present in the future. This has a great chance of giving your business the right kind of boost and a head start. There are many strategies that are used in guerilla marketing. The thank-you-take-away packet is one of the most used methods. This not only gives your customer a value added service by means of the packet, but it also thanks the customer for using your service. This keeps your company fresh in the minds of the customers.

Other methods

Besides these, there are many other marketing strategies that can be a part of your winning business plan. It all depends on what your target audience mainly comprises of. Put in the right amount of research and you will surely hit the right note with your marketing plan.

William King is the director of Wholesale UK Distributors, Importers, Dropshippers & Manufacturers Directory, Wholesalers, Traders, Manufacturers, Dropshippers & Distributors Directory, and Canadian Wholesalers and Dropshippers Canada Dropshipping Directory. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.

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Tags: business, marketing, plan, strategy, advertising

In the past, it has been very easy to get caught up purely in a business’s profitability and financial performance. This influence has been brought on by people and shareholders as they expect ever increasing returns on their hard earned investment dollars.

Having recently attended the Australian Institute of Company Directors CDC Course, we were given examples of companies that desire to achieve more than profit. Interestingly, these included businesses that dealt with products such as petroleum and fast food.This additional desire is based on the theory that by being good corporate citizens, companies will be more attractive to deal with and profitability could be even more enhanced which would ultimately lead to an improvement in their share prices.

What is the Triple Bottom Line?

Traditionally, the notion of the “triple bottom line” approach is a way of assessing and comparing large public companies only.But initially, let’s ask ourselves, what is Triple Bottom Line?

Well, the first “bottom” line is usually looking at how a company’s finances are going.The second “bottom line” is the company’s environmental record.The third “bottom line” is the company’s social record.

Whilst many small businesses quite rightly need to ensure they are profitable, isn’t it possible that it would be good to adopt the “triple bottom line” approach to our own businesses and reap the benefits accordingly particularly in regional communities? In fact, it is quite ironic that many small regional businesses do this (perhaps without realising it) and the large public companies are finally registering that this is a good thing and hence following suit.

Don’t Fake it!

Many of us should have as part of our culture and values, honesty and integrity. This cannot be faked and eventually, those businesses that try to fake it, are caught out.How can the second and third bottom lines be measured? This can be quite difficult when assessing your business your desire to achieve measurable standards other than profitability. However, this is a challenge worth persisting with.

What is the Community/Public Looking For?

Many communities and the public are looking for higher standards from business before they will deal with them.For example, people will buy products from businesses they trust in and in which they have confidence. They will feel good in doing so. Also, employees work better when associated with businesses in which they feel pride. They have less interest in their work if they are working for businesses they are embarrassed to admit to their relatives and friends that they work for. An ethical business has high morale.

Act Now!

As part of your overall business strategy, you may wish to consider how your business contributes to your community. You might set participation rates in charity/community events each year involving principals and staff or set aside sponsorship dollars per annum and allocate them across a broad section of the community. It may be to have a policy to deal with local business wherever possible (subject to reasonable parameters involving competitiveness, service etc). You may also wish to have a culture that is environmentally responsible within your workplace and promote this to your staff and clients.

By sitting down and quantifying not just your annual profit and budget targets but also, how you would like your business to make the world a better place, you may find you receive additional benefits and profitability you hadn’t expected in the first place.Big business is finally realising this – small business should never underestimate it.

More information on this article can be found here and also at this site.

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Tags: marketing, ethics, ethical, competition, compete

Complaint: Walmart drives out competition! They’re evil!
My Response: Walmart beats the competition. They offer the same product at a cheaper price. That means they are more efficient then their competitors. Since when was being successful a crime? Let’s look at a scenario. Let’s pretend YOU made a new website. Let’s say your new website competes with Google. Your new website is amazingly efficient, user friendly, and always gets the best search results. You start making millions of dollars. Your new website is absolutely phenomenal. Whenever someone searches something, they always find exactly what they’re looking for. You managed to do this because you spent countless months developing your new search engine. Your new website also gets praise from the entire country for being such a resourceful website. However, due to the result of your new success, you managed to bankrupt both Google and Yahoo by offering cheaper rates. Did you do anything wrong? Absolutely not! You created a BETTER product then your competitors, and in result, they had to close down, because they couldn’t adapt to their new competition. This is exactly what Walmart did. They created an extremely efficient method of getting products and putting them on the shelf at low costs.

Complaint: Walmart strong-arms its suppliers for the lowest possible prices.
My Response: Why should Walmart pay the same price for a TV as Joe’s electronics? Walmart purchases 1,000,000 TVs at once, while Joe’s electronics purchases 5. The truth is that suppliers love Walmart. (source below). Why wouldn’t they? When you talk about transactions, you have to understand basic economics. Whenever a transaction occurs, both parties always benefit. If that wasn’t the case, the transaction would not have occurred. Lets look at the most basic example. When I purchase a gallon of milk for $2 at 7-Eleven, I clearly want the milk more then I want the 2$. The 7-Eleven clearly wants my 2$ instead of the gallon of milk. Whenever Walmart needs to restock, they contact their suppliers and negotiate a price. If both parties agree, the order is fulfilled. If the supplier cannot agree on a price with Walmart, the supplier has the option to decline. Walmart will then seek a different supplier to get the order filled. If no supplier will fulfill Walmart’s order, Walmart will most likely raise its offer and try to negotiate once again with its suppliers. Is this penny pinching method evil? Of course not! Walmart is trying to get the best deal possible. Since when was that ever a despicable act? A consumer usually checks the price on higher tag items at multiple retailers before making a purchase, why shouldn’t Walmart do the same thing?

Complaint: Walmart is a monopoly!
My Response: Walmart is not a monopoly. Anyone can compete with Walmart. If you want to talk about monopolies, take a look the United States Postal Service or PSEG. If you compete with the Postal Service on non urgent first class mail you will get locked up. You won’t get locked up for competing with Walmart. Walmart currently has fewer than 10% market share for retail in the United States. Hewlett Packard (HP) currently has a 16.9% worldwide market share in the personal computer market, why aren’t they labeled a monopoly? Intuit, the maker of QuickBooks, has a 73.9% of the accounting software market, and they aren’t criticized nearly as much as Walmart is. Where do the complaints really come from? The consumers? No way! Walmart serves over 100 million customers each week. They wouldn’t keep coming back if their experience wasn’t satisfactory.

Original Article is here.
Visit us, and learn more about Libertarian politics! Learn about Capitalism, and why small government works!

Some of Walmart’s Achievements / Awards:

2007: Guangdong 10-Year Outstanding Chain Supermarket

2006: Most Satisfactory Supplier in Shenzhen

2006: China Retail Industry’s Top Employer

2006: Top Multinational Company in Asia

2006: Academician-Recognized Best Employers in China

2005: Best Companies to Work for in China

2005: Employers of the Year in China

Visit the Website

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Tags: marketing, ethics, ethical, competition, compete

Complaint: Walmart drives out competition! They’re evil!
My Response: Walmart beats the competition. They offer the same product at a cheaper price. That means they are more efficient then their competitors. Since when was being successful a crime? Let’s look at a scenario. Let’s pretend YOU made a new website. Let’s say your new website competes with Google. Your new website is amazingly efficient, user friendly, and always gets the best search results. You start making millions of dollars. Your new website is absolutely phenomenal. Whenever someone searches something, they always find exactly what they’re looking for. You managed to do this because you spent countless months developing your new search engine. Your new website also gets praise from the entire country for being such a resourceful website. However, due to the result of your new success, you managed to bankrupt both Google and Yahoo by offering cheaper rates. Did you do anything wrong? Absolutely not! You created a BETTER product then your competitors, and in result, they had to close down, because they couldn’t adapt to their new competition. This is exactly what Walmart did. They created an extremely efficient method of getting products and putting them on the shelf at low costs.

Complaint: Walmart strong-arms its suppliers for the lowest possible prices.
My Response: Why should Walmart pay the same price for a TV as Joe’s electronics? Walmart purchases 1,000,000 TVs at once, while Joe’s electronics purchases 5. The truth is that suppliers love Walmart. (source below). Why wouldn’t they? When you talk about transactions, you have to understand basic economics. Whenever a transaction occurs, both parties always benefit. If that wasn’t the case, the transaction would not have occurred. Lets look at the most basic example. When I purchase a gallon of milk for $2 at 7-Eleven, I clearly want the milk more then I want the 2$. The 7-Eleven clearly wants my 2$ instead of the gallon of milk. Whenever Walmart needs to restock, they contact their suppliers and negotiate a price. If both parties agree, the order is fulfilled. If the supplier cannot agree on a price with Walmart, the supplier has the option to decline. Walmart will then seek a different supplier to get the order filled. If no supplier will fulfill Walmart’s order, Walmart will most likely raise its offer and try to negotiate once again with its suppliers. Is this penny pinching method evil? Of course not! Walmart is trying to get the best deal possible. Since when was that ever a despicable act? A consumer usually checks the price on higher tag items at multiple retailers before making a purchase, why shouldn’t Walmart do the same thing?

Complaint: Walmart is a monopoly!
My Response: Walmart is not a monopoly. Anyone can compete with Walmart. If you want to talk about monopolies, take a look the United States Postal Service or PSEG. If you compete with the Postal Service on non urgent first class mail you will get locked up. You won’t get locked up for competing with Walmart. Walmart currently has fewer than 10% market share for retail in the United States. Hewlett Packard (HP) currently has a 16.9% worldwide market share in the personal computer market, why aren’t they labeled a monopoly? Intuit, the maker of QuickBooks, has a 73.9% of the accounting software market, and they aren’t criticized nearly as much as Walmart is. Where do the complaints really come from? The consumers? No way! Walmart serves over 100 million customers each week. They wouldn’t keep coming back if their experience wasn’t satisfactory.

Original Article is here.
Visit us, and learn more about Libertarian politics! Learn about Capitalism, and why small government works!

Some of Walmart’s Achievements / Awards:

2007: Guangdong 10-Year Outstanding Chain Supermarket

2006: Most Satisfactory Supplier in Shenzhen

2006: China Retail Industry’s Top Employer

2006: Top Multinational Company in Asia

2006: Academician-Recognized Best Employers in China

2005: Best Companies to Work for in China

2005: Employers of the Year in China

Visit the Website

Article Source

Tags: marketing, ethics, ethical, competition, compete

Ethics have always been an important aspect of every business activity, although the term has meant different things at different times in different lands to different people. Nonetheless, as ethical concerns are an inseparable element of business, advertising can not ignore them. Sadly, the advertising industry has rarely cared to look beyond immediate marketing objectives. The argument in the industry is that it is the government’s job to judge what is right and what is wrong. Shirking its own responsibility for regulation, the industry has belittled business values and agencies have harmed their balance sheets.

For any business, customer is very important, and businessman attempt to communicate to all their target customers using means of communication like advertising and sales promotion. Advertising is a very powerful and most commonly used tool.

Benefits of advertising

• Communication

The organization has to attract the customer and create a market for its products. For this purpose, advertising is the most powerful and widely used tool for communicating message regarding products/services to a large target audience.

• To raise the standard of living

In our developing economy, adverting with its micro and macro level influences, exerts vast and varied influences that have played key role in raising the standards of physical and material well being of the Indian society.

• To make market competitive

In India, one finds many innovations being introduced which has changed the market structure from seller’s market, and thus the result is more competitive market conditions.

• Product differentiation

It is a fact that advertising brings about products variety through real and psychological product differentiation.

Critical evaluation of advertising

Though many benefits are achieved through advertisements, the ad message is becoming more and more exaggerated. To achieve competitive advantage, advertising magnifies unimportant differences, resorts to clever, tricky product promises, and claims more and more unbelievable benefits. The customer finds many advertisements as false, deceptive, or misleading. Consumers are uncertain regarding whether or not the performance of a product purchased will in fact meet their needs. If they find that the product lacks in quality, advantage, durability etc., as advertised they might not buy it again, and develop an aversion to every other product of that company.

Unethical advertising

Advertisement is considered unethical in the following situations;

• When it has degraded or underestimated the substitute or rival’s product.

• When it gives false or misleading information on the value of the product.

• When it fails to give useful information on the possible reaction or side effects of the product. And

• When it is immoral.

Ways of misleading the consumers

• Many a time, traders entice the customers into their stores by advertising goods at a very low price, but they stock only a handful of such sale items in the store. When the advertised goods are sold out, consumers are steered towards the higher-priced stock or lower quality goods.

Retailers must ensure that reasonable supply of products is available during the sales, and retailers should not purposely avoid it. Retailers should make it clear in the advertisement that how many items on sale are available or when the sale ends.

• Sale offer should be for a limited period. Advertisement should declare that sale offer is for a limited time period. The period of the offer should be made clear in the advertisement only when the advertised goods are available for a limited period or stocks are limited.

• Traders often offer insignificant price reduction. To illustrate, a trader may advertise that the price of product is reduced to Rs.99.95, when the normal selling price is Rs.100.. The trader must include the normal selling price and discounted price in his offer .The trader sale offer is misleading if the trader claims the product is below cost , when the price is not below cost after discounts, rebates and other allowances it is misleading if the trader simply shows a fictitious higher price as normal selling price in the advertisement.

• Advertisement must clearly indicate the total price of goods or services. All price comparison must be truthful and must not intentionally or unintentionally mislead the consumers. Under the Fair Trade Practices Act, retailers have an obligation to ensure that they do not mislead or make false representations to customers with respect to price of the goods. The consumers who shop around and compare the prices of various products are less likely to be deceived by misleading claims consumers should also be aware of what is a reasonable price of goods and not take any advertised discounts at face value.

• While many sales are legitimate or genuine, the consumers should not get attracted to such sales offers i.e., “”Hurry…very few days remain for sale”. The consumers should be aware of what to expect when retailers place items on sale and how to avoid being misled by discount advertisements. A marketer should take care to ensure that when goods or services are advertised to be available at a discount or as being on sale, it is a genuine discount or sale.

Remedies to overcome deceptive advertisements

• Cease-and- Desist Orders

The cease-and-desist orders, which prohibit the respondent from engaging any more in deceptive practice, are actually the only formal procedure established by the Federal Trade Commission Act for enforcing the prohibition of ‘ deceptive acts and practices.”

• Restitution

Restitution means the consumer is compensated for any damage caused to him by the product that had advertised claims not adequately substantiated. Restitution is rarely considered because of its severity.

• Affirmative Disclosures

If an advertisement has provided insufficient information to the consumers, an affirmative disclosure might be issued Affirmative disclosure require ‘clear and conspicuous disclosure’ of omitted information. Often the involved information relates to the deficiency or limitations of the product or service possibly relating to matters of health or safety.

• Corrective Advertising

Corrective Advertising requires the advertisers to verify past deception by making suitable amendment in any of its future commercial.

Self Regulation in Advertising

It is our responsibility to regulate our operations. And we must do it ourselves. Self regulation is not a quick-fix solution; it will be completely ineffective with out commitment from and the integrity of one and all. Self Regulation may require the following;

• The development of a self-regulatory code of conduct covering all forms of media that is sensitive to ethics, legalities, decency and truthfulness in advertising.

• Provision for monitoring and accountability, including a policy allowing for the removal of ads that violate the code.

• Greater participation of advertising professionals in the regulatory process.

• The inclusion of non-industry players in the process

• Consumer awareness of the self regulation system.

• Simplification of the complaint process against ads.

• Transparency throughout the entire system.

These reforms will achieve three goals. They will make the industry accountable for its actions. They will make regulators and critics think twice before attacking the industry and finally they will lead the public to trust ads, advertisers and agencies.

Conclusion

Reputable companies and advertising agencies avoid telling lies. They realize the cost of being caught. A dent in trust can prove to be much costlier than the failure of an ad campaign or for that matter, even a brand. The challenge before advertisers and agencies is to ensure that ads reflect our values. We must endeavor to see that “advertising” does not remain a dirty word.

Dr.Gomathi Viswanathan

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Tags: marketing, advertising, company, management, ethics

On April 17, the GAO, the investigative arm of Congress, released the results of its much ballyhooed probe of the title industry, launched a year ago at the request of then-House Financial Services Committee Chairman Michael Oxley.

The report, titled “Title Insurance: Actions Needed to Improve Oversight of the Title Industry and Better Protect Consumers,” identified significant barriers to the successful regulation of the title industry, but for every weak link in the regulatory chain, the GAO offered a remedy, calling for the active participation of federal, state and local regulators.

“Given consumers’ weak position in the title insurance market, regulatory efforts to ensure reasonable prices and deter illegal marketing activities are critical,” the report stated. “Given the variety of professionals involved in a real estate transaction, a lack of coordination among different regulators within states, and between HUD and the states, could potentially hinder enforcement efforts against compensation for consumer referrals. Because of the involvement of both federal and state regulators, including multiple regulators at the state level, effective regulatory improvements will be a challenge and will require a coordinated effort among all involved.”

This effort is one strongly supported by all industry players, but exactly how and when the GAO’s recommendations will be implemented is a source of some debate.

Frustration exists at federal and state levels

Limited state and federal oversight of the title industry has resulted in proposals for change, the GAO found, but those changes are focused on the state level, mainly in the affiliated business arena.

“Some state regulators expressed frustration with HUD’s level of responsiveness to their requests for help with enforcement, and some industry officials said that RESPA rules regarding ABAs and referral fees need to be clarified,” the GAO said.

However, the more limited regulation and oversight of title agents and AfBAs in less active states could provide greater opportunity for potentially illegal marketing and sales practices, the GAO said. While the GAO listed states such as Colorado, California and Minnesota as leaders in enforcement and oversight, the report concluded that states’ enforcement of anti-kickback and referral fee provisions were uneven.

That would place the onus on HUD, but HUD officials expressed concern over a lack of enforcement authority for RESPA Section 8 violations, the GAO said.

“According to HUD officials, it is difficult to deter future violations without stronger enforcement authority, such as civil money penalties, because … companies view small settlements as simply a cost of doing business,” the GAO said.

Viewing these concerns as critical to the health of the industry, the GAO made a number of recommendations to improve oversight at each government level as well as to better coordinate the various efforts of those regulators.

Agents: Where’s the beef?

State regulators could most benefit by examining title agent costs, the GAO found. Officials in several state insurance departments last year questioned whether agents are worth their premium splits, and the GAO quickly picked up on this debate, finding that regulators do not fully assess title agents’ costs during rate reviews.

“Few regulators review the costs that title agents incur to determine whether they are in line with the prices charged,” the report stated. “In fact, in the majority of states, agents’ costs for search and examination services are not considered part of the premium and thus, receive no review by regulators. Therefore, title agents charge separately for their search and examination services, yet they receive about the same percentage of the premium as agents in states where these costs are included in the premium.”

Title insurers told the GAO that they generally share the same percentage of the premium with their agents, around 80 to 90 percent, regardless of whether those agents were in states where consumers pay for agents’ search and examination services within the premium rate — known as all-inclusive states — or whether they were in states where agents can charge consumers separately for those services — known as risk-rate states.

However, reliable data to determine whether consumers in risk-rate states consistently paid more than those in all-inclusive states does not exist, the GAO said, and thus recommended a “multi-step process that could involve detailed analysis of some title agents.” While the GAO placed the onus of this auditing function on state insurance regulators, some industry experts pointed out that reporting requirements currently vary by state, making it difficult for some companies to provide the type of uniform data needed to form constructive conclusions.

In California, for example, some companies are concerned that the Department of Insurance’s proposed statistical reporting requirements will force them out of business, as they cannot now provide data from past years that was not required of them at the time.

“Some of the information the GAO wants to collect drills into personnel and hiring practices and micromanages the entire process,” said Joe Petrelli, founder of Demotech, a ratings firm based in Columbus, Ohio. “It’s a level of detail I don’t think people have. It’s a tremendous layer of fixed overhead that no one anticipated, and it’s not like you can snap your fingers and get that type of detail.”

Matters for Congressional consideration

As far as Congress’ role in the melee, the GAO recommended that Congress reevaluate certain aspects of RESPA.

“Revisiting RESPA to ensure that consumers receive this information as soon as possible when they are considering any type of mortgage transaction … could be beneficial,” the GAO said.

The GAO’s recommendations to Congress were twofold. Congress could provide HUD with increased enforcement authority for Section 8 violations, such as the ability to levy civil money penalties. Congress could also make a detailed homebuyer information booklet available to consumers.

These recommendations are in line with what HUD’s RESPA office has likely been discussing since Fall 2005, when the department retreated into its chambers to mull over RESPA reform. Thus, by all accounts, the GAO’s Congressional recommendations stand a fair chance of becoming reality.

“HUD has long sought such authority, and the GAO report may be HUD’s best chance to get it,” said Rich Andreano, partner with the Washington, D.C., law firm Weiner Brodsky Sidman Kider PC.

Doubting Thomases

But the apparent consensus between HUD and the GAO does not mean these recommendations will see the light of day, at least in the foreseeable future, said some skeptical industry leaders.

Some industry players are hedging their bets that the recommendations will be swept under the carpet as Congress contemplates changes to predatory lending and FHA reform.

Noted RESPA attorney Phil Schulman of Kirkpatrick & Lockhart Preston Gates Ellis said, “The timing of the report works in the industry’s favor, given that the focus on Capital Hill and elsewhere is on subprime lending and the avalanche of foreclosures, not title insurance reform.”

National mortgage training expert Christopher Cruise observed that “the title insurance industry has dodged a bullet here. Asking the states to step up their enforcement activities seems reasonable, but, except in a few states with strong insurance commissioners, that simply won’t happen. I believe, in the long run that this report will have minimal effect and that title insurance rates will change little, if at all.”

Ken Trepeta, regulatory policy representative for the National Association of Realtors (NAR), likewise said, “The RESPA civil penalties issue is intriguing, but I wonder if anyone in Congress really has the stomach to revisit RESPA. I know Sen. [Mel] Martinez is interested in RESPA, but he has spoken more along the lines of disclosure.”

The writing on the wall

Although some are skeptical that the report will matter much in this era of increased scrutiny on predatory lending and mortgage issues, others believe it is a fallacy to say that the problems of the title and settlement services industries are that far removed from the problems in the mortgage industry.

Indeed, Rep. Spencer Bachus, R-Ala., ranking member of the House Financial Services Committee, has commented, “The GAO’s findings are significant, and I look forward to reviewing those findings thoroughly.”

Some respected sources have indicated to The Legal Description that Congress has been waiting for the results of the GAO report in order to determine if there were issues that needed to be addressed before putting RESPA and title industry reform on the front-burner.

Other industry leaders willing to speak on the record agreed that this scenario is not as farfetched as some skeptics believe.

“Congress obviously is still reviewing this and will be, I presume, taking that under consideration along with any other appropriate legislation,” said Sue Johnson, executive director of the Real Estate Services Providers Council Inc. (RESPRO). “I would be surprised if Congress did not touch base with HUD to check on the status of their RESPA rule and consult with them. A lot of this has to simply play out.”

Andreano was perhaps most confident in the prediction that Congress will put all of the pieces of the puzzle together to bolster its ongoing homeownership initiatives.

“I think it’s safe to say that the GAO will not be on the title industry’s Christmas list this year,” Andreano said. “While the report focuses on, and is critical of, the title industry, all settlement service providers need to focus on Congressional reaction. Clearly, title industry revenues are now under a microscope and the industry needs to be prepared to address scrutiny from regulators and lawmakers.

Amy Swinderman is the editor of The Legal Description, a trade publication specializing in focused analysis of legislative, regulatory and legal issues facing the title insurance and real estate settlement services industries. The Legal Description is a publication of October Research Corp, the nation’s premier provider of real estate industry news and analysis.

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Tags: marketing, ethics, ethical, competition, compete

It Can Happen to Anyone

The cases of Enron and Martha Stewart are extreme cases that we don’t see everyday, but consider this story about a medical doctor, Daniel Carlat. Dr. Carlat is a psychiatrist who marketed pharmaceutical products for companies. At one point, he earned one-fifth of his salary by being on the speaking circuit, “educating” his colleagues about these products. Nothing about what Dr. Carlat was doing was illegal, but in the end Carlat’s conscience wouldn’t let him continue and he ultimately quit. He came to the realization that not all money is good money. He made a choice that allowed him to live with himself.

Ethics Checklist

Maintaining your ethical standards isn’t always as simple as a gut check, but that certainly can be starting point. Use that feeling to pause and investigate further. Create an ethics checklist to go through when you need it. Here’s an example of questions you can ask yourself:

* Does this assignment violate any laws?
* Does this assignment violate any rules of ethics within my profession?
* Does this assignment violate any company policies?
* Does this assignment violate my personal moral or ethical standards?

Rosalyn Watts is the author of “The Expectation of Purpose.” She is a small business consultant who left her successful law practice to pursue her purpose and passion of helping other small business owners focus, start and prosper. Rosalyn shares her message of entrepreneurship through articles, workshops, and private consultations.

To request a copy of “The Expectation of Purpose” or for her free 5-part series entitled, “How to Get Money to Start Your Business” sign up

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Tags: ethics, article, business, medical, marketing

Recently, while in my Bangor, ME office I asked a fellow business person why they didn’t include a fairly common Internet solution offered by almost everyone in the current business environment. The answer was striking. He said, “Because that’s the way we do things in Maine.” As if to say, Maine business held a special exemption, due to its regional uniqueness, from providing customers with basic services that most other businesses offer as a matter of course.

As someone born and raised in the state of Maine, I was frankly shocked. The Internet, CNN, fiber optic cable and international cell phone coverage, to name just a few technologies, flattens not only our experience of the world, but the experience of our customers. When people talk about a “flattened” world what is meant is a world that is now much more transparent. Anyone or anything can be Googled. Any process or technology is available on line for all to see whether in Bangor or Bangalore. In short, everything is visible to everyone.

Since transparency is the rule of the day, business is impacted in new ways. Not only is process visible, but most processes become commoditized. In other words, few will find any particular edge in the platform or process itself. In my business of pensions and 401K plans, as just one example, there is almost no difference in platform from one 401K provider to the next. The only difference now is me. Globalization creates a transparency and commoditization that creates very little differentiation in basic products and services.

This means business needs to rethink its approach. The approach that matters in this new environment is refocusing on “how” we do business. In other words, if everyone now sees what everyone else is doing and can offer what everyone else offers, then the distinguishing feature of our business is the “how” of our particular approach. Character is going to count again. Honesty, integrity and placing the customers needs above our own is what will rule this new global day.

There is no longer the “Bangor way of doing things” or the “Bangalore way of doing things.” Now, there is one very transparent way of doing things that the whole world can see. What does Bangor have to do with Bangalore? A lot! The new standard of business is a global standard. No one is safe in their small, parochial world. Business cannot be accomplished well if uninformed, much less if delivered in a sloppy or unprofessional way, all in the name of “regional style.” Further, business people will no longer be their own arbiter and judge as to whether or not they are uninformed or unprofessional. The standard will be the definition adopted by their customers as those customers become shaped by the global standards that are delivered to each customer as they sit looking at their laptop. Bangor and Bangalore are very close indeed.

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Tags: business, ethics, global, institute, marketing

I rested my head once again and fell into a rather shallow sleep for about half an hour only to be woken up by a loud knock on the door. The man at the door was dripping wet, red faced, and sprinkled with grass clippings. He had taken it upon himself to mow my lawn and was now looking for payment.

This had all the sales and marketing thought of the guy who jumps in front of your car at the red light and washes your windows before you can even say “Stop! I just came from the carwash! No more washie! No washie!”

This can even be compared to the sales associate who says “And you’ll want the insurance plan… great value…” and selects it for you before you can consider if you actually do want it.

Or when you are handed a contract to sign with boxes checked and options selected that you were never even notified were possible. How are you expected to sign off on something without knowing what you are agreeing to?!

Shoot first and ask for the sale later? It may work for some of the people some of the time, but it will not earn you a customer. If it earns you a sale, you lucked out. The sale happens because the customer felt uneasy about speaking up, felt sorry for you, trusted your opinion, or decided they wanted the sale anyway. More than likely, it will be one of the first two and you are likely to lose the customer’s trust while annoying them. There are many customer out there who would be so appalled at the tactic that they would cancel the sale all together or say “I didn’t agree to this!” making the completion of the sale nearly impossible.

Anyone willing to perform such thoughtless service isn’t very business minded. Why? Because getting a sale is temporary. You have to constantly sale in order to maintain your job and finances. What you should try to get is a customer. If a customer feels pressured, annoyed, or cheated they won’t be your customer for much longer. What you gain in the moment, you lost for the future.

You must, and I cannot stress this enough, include the customer in your sale. After all, without them there would be no sale at all. If you explain the options, offer a service, and value their opinion they may turn down the extras but they won’t turn down you.

When the man mowing lawns showed up to collect his payment, he received his asking price but I let him know that we have other means of lawn care. While we appreciate his efforts, his services are not needed. Sad thing, too, since just a few days before my roommates and I were discussing hiring someone to cut the lawn on a regular basis and maybe do some landscaping. He proved to us that he would choose to mow the lawn without our consent; I can’t imagine the horrible decisions that would be made if he had the job of planting, pruning, trimming, or designing my pretty little lawn!

Make customers, not sales— and include them in the process or risk losing everything.

~:Taking care of business really means understanding people. Lola has worked in areas of Customer Service for nearly a decade, including CSR Training Coordinator at a major dot com. Her articles will show how every moment can be an opportunity to provide better service to the people around you:~