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The Billion Dollar Question: Are IPOs in Microfinance a Sign of Being Progressive or Simply Greed?

When commercially orientated companies make the big decision to have an IPO, their main aims are usually to mobilize capital for further expansion and possibly (as in the case of Facebook) in some instances may have been forced to go down this route by the regulatory authorities as a secondary market has been inadvertently created for their high demand shares. On the other hand, when an MFI makes this decision, their aims are to increase the capital for lending to their clients: or do they have other aims in mind?

This may be become clearer when we look at two MFIs that have had IPOs in the recent past; Banco Compartamos of Mexico and SKS, the largest MFI in India. Compartamos went for an IPO in April 2007. The issue was oversubscribed 13 times and in the first day of trading in Stock Exchanges, the share price surged 22% from the issue price.

This company was created in 2000 and the original investors amassed profits of $450 million, by selling just 30% of their stakes, as a result of the price escalation in the public market, which was almost at a crazy 1,150% of the book value of shares! Interestingly, Campartamos was originally a non-profit organization, prior to 2000 and received enormous government subsidies, for their "social service" of helping poor women of the region by providing them with loans for their businesses.

After Compartamos went public, it started to generate significantly higher profits than it did previously. This was mainly because they increased their interest rates to keep their shareholders happy and ended up charging an effective interest rate of almost 86% interest per annum - more than three times what normal banks charged. The returns on equity were as almost high as 50% at their peak.

As a consequence, the shareholders of Compartamos, who were mostly institutional investors and Private individuals, enjoyed huge profits. In contrast, the people whom the bank had set out to help, the poor women in the rural areas did not see any real benefits, if anything they struggled more with the repayments on their loans as a result of the increase in interest rates.

Similarly SKS Microfinance Ltd. - aptly nicknamed by critics as Compartamos II - went the same way. Its IPO for $347 million was oversubscribed by 13.8 times. The issue of 13.77 million shares to public and retail investors was exclusive of 3.02 million shares, reserved for anchor-investors - meaning financial giants.

Again, their stated objective was - lending finance for the rural poor - small farmers, vegetable vendors, weavers and the like. SKS boasted of 7 million clients already and by 2012 that will be extended to 15 million clients.

After the IPO and subsequent Board room coups that ensued, it was like Compartamos all over again: Interest rates increased and particularly in Andhra Pradesh, the incidence of suicides of borrowers increased. On further investigation, it was actually found that the bank's credit officers had encouraged the borrowers to take out life insurance as collateral for their loans, which means that on their death, SKS would actually get the loans repaid in full.

The vital question in both cases is who ultimately benefits from an IPOs? The IPOs both resulted in higher effective interest rates, so that the firms could reach their profit targets set by their new shareholders, who obviously expected dividend for their equity.

While it is indeed important for microfinance institutions to become self- sustaining and not be shackled by inadequate donor funding, it does raise the question that if their stated aims are to alleviate poverty through providing loans to the 'unbanked' can this work hand in hand with mainstream finance such as IPOs? From the two examples so far, my answer would be a strong reaffirming no!

Kanini Mutooni

Article Source: [http://EzineArticles.com/?The-Billion-Dollar-Question:-Are-IPOs-in-Microfinance-a-Sign-of-Being-Progressive-or-Simply-Greed?&id=6024408] The Billion Dollar Question: Are IPOs in Microfinance a Sign of Being Progressive or Simply Greed?

Example of Article Writing - How To Choose A Niche

You see you would need to generate interest, you will need to write e-mails, you will need to write articles and you will need to create products in your niche area topic. If you do not have an active interest in this niche area, you'll probably find that it very difficult to write interesting and compelling copy.

At some point also you will need to answer questions from your subscribers about your niche topic. If you do not have some interest in your niche you will likely find it quite boring and mundane to answer such questions. And you will find it very difficult to stay focused and to generate a decent income in this niche.

Okay so let's set about choosing a niche topic right now!

(1) Get a pen and paper and make a list of all the areas that you have experience and or an interest in. What is it you like to do? What are your hobbies? What can you do better than most other people? What subject do you know a lot about?

(2) Now we need to do a little bit of research. Using the internet you need to look up words pertaining to your potential niche area. So go through your list and look for information in each of the areas you showed some interest. What we are doing here is looking for areas where people online might be willing to spend money to learn more from you, to learn about the next level of education, we are looking for people who are already making purchases in that niche area.

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Janet Cole is a powerful coach and online mentor. She has over 1,400 articles in print and has created over 11 educational products.

Article Source: [http://EzineArticles.com/?Example-of-Article-Writing---How-To-Choose-A-Niche&...] Example of Article Writing - How To Choose A Niche

How To Cultivate Your Passion As An Online Entrepreneur

The same is the case for the market. The passion would enable you to devote your maximum time, energy and cost in identifying and analyzing the important variables that will lead to the identification of a successful market. Similarly, if you are searching on the internet, the passion would force you to make a significant website, generate substantial traffic of the users and make considerable revenue for your business. In addition, when the passionate objective is accomplished, it gives you heaps of joy and happiness. On the contrary, if you do not show interest in the topic you are studying, there is a rare chance that you will arrive at the desired conclusion. In the case of online, you will be unwilling and unenthusiastic to the work on your website and will devote less than the required time in monitoring and maintaining the website. If there is considerable passion, then the outcome will match your expectation.

One the most significant thing that you should take into consideration during the process of market is your preference and comfort in the subject. It is pretty straight that a person who is an expert in websites for instance will be fully aware of the ins and outs of the market or any other topic he is engaged in. It is the level of interest and commitment that increases the amount of creativity shown in the work. Once the interest is there, the task becomes simple and spontaneous to you. On top of this, it avoids the hindrance of original and innovative ideas and thoughts. In addition, the task requires regular input and update from your side. This is only possible if your interest and passion shows consistency in the work. In this way, you are in strong position to do the task effectively and efficiently.

Therefore, the most important that has been deciphered is the importance of passion behind any work you do in your life.

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What Should Be Your Blog Topic?

Ultimately they end up chasing the money.

However, there is a more profitable niche for the new marketer. It is different for every person, because each individual has a different set of skills and interest. There is a strong possibility that you have a strong interest in making money online, but do not discount your other areas of interest, because there is money being made in every possible industry online. You become much more competitive, if you are not only working within an area of interest, but also in an area where you are skilled, knowledgeable, and naturally gifted.

Think about it. There are thousands of affiliate products online. That means regardless of your niche, you should be able to monetize it once you learn marketing. They key word is marketing. Marketing can make or break a business, regardless of if it is done online or offline. Therefore it is a worthy area of study. Also if you have the budget, you can hire someone to do your marketing for you. Just be sure to do your due diligence and hire someone who knows what they are doing.

Much Success,

Jeremiah Carstarphen, The Cartoon Coach

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Article Source: [http://EzineArticles.com/?What-Should-Be-Your-Blog-Topic?&id=5473445] What Should Be Your Blog Topic?

Online Business - Know How Important Finding Your Niche Is

How to Find Your Niche

Hobbies, interest in sports, collectibles or anything you have a strong interest in can be turned into an online business. Maybe you use to play in several sports teams when you were younger and you are still interested in sports. So, this can be your niche. For your business you can use, you are encouraged to use, your creativity. Write down specifically details pertaining to your interests, what is needed to accomplish making your interest into an online business and services or products that can be offered to consumers who have the same interest.

Life experiences are valuable assets for starting a business online. Experience from jobs you've worked, careers, education and trainings can all help you decide what niche you would like to develop in the employment field. All of your knowledge is of interest to others and can be a profitable niche in an online business. If you suffered an accident, major illness, or a serious life altering experience, you can use the knowledge of these experiences as well to attract a niche group.

Review Information on Your Niche Group

Research your interest to see if there is a market for what you would like to do. Enter the topic in Google or Yahoo to search for the fields of interest you have noted. Look for experts in your area of interest and what items or products they are selling. Are these items sold digitally or are they physical? If there is free information available take the time to download it so you can further review it at your leisure.

Narrowing the possible niches you can pursue for your online business can be accomplished by examining your passions and your experiences. Research and learn all you can regarding the subject and the group of consumers you are targeting. Once this is accomplished take a running leap and get started with operating your niche business in the internet. You'll be glad you did.

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Article Source: [http://EzineArticles.com/?Online-Business---Know-How-Important-Finding-Your-N...] Online Business - Know How Important Finding Your Niche Is

Your Niche - 3 Ways To Choose The Best One

1. There's really no point in choosing a niche unless people involved in it can, and are willing, to spend money. The niche might be big or small but there must be potential customers willing to pay for your products. For example, if it's mostly to do with students at college, there isn't going to be the financial potential. Put your niche into Google(TM) and if there are lots of ads come up with the results, it's likely you've found a financially good niche.

2. Not only do there need to be people willing to buy in your niche, there must also be the opportunity to make lots of different offers to them. After all, you want to sell stuff in the niche over a period of time, not just one-off. This is where you'll probably find you go for a large niche with plenty of variety, traffic and interest already there. However, it could be you find a small area of a much larger niche where there is lots of potential for selling lots of different products.

3. The usual advice on finding a niche is to choose something you're really interested in or even passionate about. The argument goes that in that way you'll already have lots of knowledge and expertise. Plus, you'll have the drive to continue with something you want to do anyway: perhaps you would do it without even being paid for it. If you're in such a situation, then that's great. But only as long as it also fits the first 2 points. Without meeting those criteria you'll have a hobby and not a business.

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Article Source: [http://EzineArticles.com/?Your-Niche---3-Ways-To-Choose-The-Best-One&id=5292342] Your Niche - 3 Ways To Choose The Best One

Learning More About Credit Online

In the modern world today, no one finds this scenario uncommon anymore. Maybe because it is due to the lack of discipline people have towards their credit cards or maybe due to the fact that we just can't stop buying crap we don't need. I just continued my research about this statistic and I found out that there is this so called debt counselling in which may help you.

From the research paper I read from a BS Psychology under graduate and comparing it to the same tpic covered by a BS Business Administration under graduate, I immediately realize that being debt-free and staying out of debt is indeed one of the hardest tasks to do these days. From what I found out, debt counselling helps you eliminate those interest rates as well for very late payments.

Most people seem to ask "How does Debt Counselling Work Anyways and How Will I Benefit?" Debt counselling firms have their so called "debt counsellors" these debt counsellors are like psychologists but instead they give you advice on your concurrent status. They usually charge you a small fee but that fee is actually better than paying off for all those piled up interest. Your counsellors act as your mediator and talks to those creditors directly so you would not have hard times taking to them straight. You will no longer feel the embarrassment of declaring to people that you are also out of money or bankrupt.

If you think you are in the need of this service then please find a firm or person that you know may assist you fully. Learn to check the sincerity of other people before giving them your problems and also find someone that is patient to listen to your dilemmas.

It may also not be enough to just hire someone who is honest and sincere but he or she should have expertise on this job. I have found several useful articles over at [http://www.creditoffersonline.net/]CreditOffersOnline.net which helped me write this article. It would also be good if you continue reading their article [http://creditoffersonline.net/eliminate-debt-with-debt-counseling.html]eliminating debts with debt counseling.

Article Source: [http://EzineArticles.com/?Learning-More-About-Credit-Online&id=4939071] Learning More About Credit Online

Starting a Home Business - Are You Afraid of Selling?

... A man sells his prospective wife on why she should marry him.

... A woman sells her husband on why he should pick up his socks.

... Parents sell their children on why they should eat their vegetables.

Day in and day out - we sell. And think nothing of it. So why do we cringe when we have to "sell" our product or service? Historically, sales is associated with deceiving and getting someone to act in YOUR best interest rather than THEIR best interest. A win/lose.

In an ethical business, selling is different... a win/win.

It's about matching a customer's needs and best interest with a product or service that will meet those needs, and be in their best interest. You see, with many products and services, people need information and qualified advice to determine if the product or service will benefit them.

Sales - in part - is educating someone with their best interest at heart.

It's consultative and facilitating, not deceptive and pushy. It's about giving a reason WHY... Why is your product or service good for me? When I understand why, it becomes my choice... not your deception.

Selling Tips

Perception matters. If you're not perceived well, you're not as likely to be given a chance.
Be attentive to your personal hygiene. Be clean and avoid any strong smells such as cologne or perfume.
Dress for success. It's important to be appropriately dressed. Naturally that will differ if you're selling to fortune 500 lawyers or restaurant chefs. The rule of thumb here is to be dressed slightly better than your prospective customer.
Smile and be positive. We're more receptive to friendly, happy people.
Let your passion show. Enthusiasm is contagious. Typically folks have their defenses up and they're skeptical. They're afraid of "being taken". You have to overcome that. Enthusiasm shows you believe in your product or service. It's easier for someone else to believe you when that sincerity comes through.
Know your stuff. You'll lose credibility fast if you don't know your product or service inside and out and if you don't know your competition. How can someone be convinced you have their best interest at heart when you don't really know what you're trying to sell them.The Selling Process

Understanding and mastering these four steps will pay off tremendously:

Step 1: Seek to Understand

Remember selling is consultative.

You first want to understand your prospects needs and goals. Ask relevant questions to gather information, understand them and find common ground.

For example: "What are your favorite foods? What vegetables do you like?"

Pay attention to their style... are they chatty and friendly or short and more distant. Do they favor visual and descriptive words... do they like to show? Are they more auditory... do they like to tell? You're seeking to understand them better so you can tailor your presentation to their preferred style.

Step 2: Educate With Your Presentation

Always keep in mind: "What's in it for me". The "me" in this case is your prospect. The presentation isn't about your product or service. It's about what difference your product or service will make in the life of your prospect.

How will it make them money, save them money. Save them time. Decrease their work. Improve their health. Avoid disaster. Emphasize the benefits and how it will affect them.

For example: "If you eat your spinach you'll grow up healthy and strong. You'll have muscles like Popeye!"

Step 3: Trial Close

How do you know when you've made your case? Different people need different amounts of information before they're ready to decide. You don't want to give too little information. Neither do you want to "talk yourself out of a sale".

A trial close is taking the temperature... asking questions to determine whether your prospect needs more information or they're ready to say YES.

For example: "How do you feel about eating your vegetables?"

Step 4: The Close

Here's where many folks drop the ball.

You need to actually ask for the sale. It's best to phrase it as a choice between two different options rather than a yes or no...

"Do you want spinach or broccoli?"

From my experience selling your products and services will be much, much easier than trying to convince a 4 year old to eat vegetables.

Selling can be fun and easy! Try it out today!

About the Author:

Bruce Eckman started his first business at age 5. He has owned and operated over a dozen different business and is currently the President/CEO of EZ-NetTools Inc. He has helped thousands business owners over the years. He loves Business and is active in helping others in starting a home business through [http://www.EZ-BusinessBuilders.com]EZ-BusinessBuilders.com. Visit this website today and download a free webinar about starting and growing your own [http://www.EZ-Businessbuilders.com]easy home business!

Article Source: [http://EzineArticles.com/?Starting-a-Home-Business---Are-You-Afraid-of-Selling?&id=4544144] Starting a Home Business - Are You Afraid of Selling?

Buy and Sell

What is most important in this type of buy & sell is the product information, customer communication, price estimation and delivery time. Most of the other typically relevant qualities in the past have depended heavily on the face-to-face market which requires large physical distribution factors, staffing and administration of money and stock movement. Wholesale type trading leaves these well established factors with the shop front vendors and takes advantage of the customer's wise need to research, compare and decide without being rushed or forced into normal business hours.

I know many a friend who has a particular interest in certain products like comic books or guitars, or even jewellery. Being one who loves and routinely purchases some products makes you an unintended authority on them. Music as an example from particular artists and genres allows one to really capture and engage interested customers by describing the product in a manner that makes clear that you genuinely admire the product and that it is suitable for someone with the same or similar interest.

If you have an interest in a particular niche of products and would like to try your hand at selling them at great discounts that DO leave enough for an attractive margin then you'll find many trustworthy and diversely stocked wholesale websites. Membership prices with these wholesale sites are reasonable and if all else fails you have a place you can go to where cheap is an understatement.

Many may wonder how these products can be sold for so cheap - well the reality is that most products are sold in great number at a ridiculously low price to corporate outlets and middle-man distributors. They make decent profits even with shop front and staffing overheads, so it is with great certainty that a single individual with wits can sell as well or better and reap the same rewards.

The trade and exchange of goods and money is changing with the increased engagement of E-commerce and auctioning systems. Have your share.

By Clive Ettia

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Article Source: [http://EzineArticles.com/?Buy-and-Sell&id=3922672] Buy and Sell

Can I Get Principle-Less Interest From Numis Network?

When all's said and done, principle-less interest is revenue you earn and you do nothing for it. Typically this income is acquired by a relatively small amount of work, or large it really depends, done sometime in the past that you continue to be paid for.

This is one of the many ways of how the rich stay rich. Would you agree that you would like to have this kind of income working for you? It's snooze button money, as Cedrick Harris says and it keeps coming whether you work any more or not. The principle-less part means that the interest or capital acquired is not based on a significant original investment.

One more fantastic thing about residual, principle-less, income is as you grow older and are capible of physically working less and less, even as I write this article, your profit from the work you have done is continuing to benefit you financially. This is that money tree that you have always been looking to plant in your back yard.

So What Does Principle-less Interest Have to Do With the Numis Network?

A whole lot!

The Numis Network is a new company that sells graded Numismatic gold and silver coins. They chose to market their product through the dynamic network marketing industry. The objective of the Numis Network is to generate five million new Numismatic numismatists globally.

A key factor to principle-less interest is the fact that your initial investment is repetitively low and this is why it works well in the network marketing industry. Thus, giving you the potential of earning large piles of principle-less interest in a very short period of time.

Listen to this, many people that have massive success in this business and create phenomenal amounts of principle-less interest are the ones that get involved before the masses do. Robert Kiyosaki, the author of the "Rich Dad" series, says that those who make the really big bucks are the ones who know about the opportunity before everyone else. With just over 5500 Reps in Numis Network, I'd say that this is the "ground floor" you should be interested in. Not to mention their product is money, graded gold and silver Numismatic coins and not anything else, no juice, phone,or pill nope this is money, real money.

Principle-less interest occurs when you communicate the opportunity with others and they get happily involved building their coin collection, growing their net worth and sharing this same opportunity with others as well. This is very simple, very easy to do and very rewarding. Not only will you be well on your way to getting for yourself sizable amounts of principle-less interest but you will be helping others acquire their financial future as well.

Principle-less interest is not a new term it's just a great new way of saying something old...then I guess you could call it a new term then:). But regardless of its age the principal holds true, you will continue to benefit from work that you have done already. Does that make sense to you?

I think that soon, given the global employment climate, principle-less interest will be the way of choice to create a financial legacy. However the fortunes are for those who are bold enough to venture away from the herd and find pastures that are not so heavily grazed. [http://www.youcansellmoney.net]Numis Network is just that pasture and the perfect opportunity to secure principle-less interest. However if you are not utilizing attraction marketing you may not achieve the desired outcome. Josiah Ruff has more very valuable information about [http://www.josiahisruffisticated.com]principle-less interest and attraction marketing located at his blog.

Article Source: [http://EzineArticles.com/?Can-I-Get-Principle-Less-Interest-From-Numis-Network?&id=3886023] Can I Get Principle-Less Interest From Numis Network?