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

An IPO stands for Initial Public Offering of common stocks or shares of a public limited company. Micro Financial Institutions are mostly engaged in financial lending to smaller borrowers and have a stated social aim of helping to alleviate poverty- can these two opposing concepts work in tandem or are they diametrically opposed to each other?

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?

Earn Extra Cash Selling Old Magazines on eBay

In recent years, sales of collectible magazines has been booming, thanks to the "nostalgia wave." This huge wave of buyers, most of them baby boomers, is looking for ways to re-connect with their youth, when life was better, the pace was slower and anything was possible. Old magazines are a perfect way to do this, and prices are still quite affordable. Whether it's a Beatles fan looking for an issue of Life magazine from the 60s or a vet looking for magazine issues about military history, there's an issue - or several - just for them.Best of all, most of the back issues of old magazines can be found online, at sites like eBay or other online stores devoted entirely to collectible magazines. This easy access to old magazines has brought thousands of new buyers into the marketplace and dramatically increased both the demand for old magazines and the opportunities for new dealers.

Buying and selling old, collectible magazines is a simple business that can be started on a shoestring. Because old magazines are stashed away in attics, basements and garages everywhere, a "newbie" in a small town in Wisconsin or Texas has the same opportunities as an established dealer. Many dealers have started with an investment of just a few hundred dollars.More dealers list their magazines on eBay than anywhere else. As Willie Sutton once said when asked why he robbed banks, "That's where the money is!" It takes just a few minutes to set up an eBay account and start listing old magazines. Sales can even start the first day if you offer the "buy it now" option to shoppers.

There are three proven ways to profit selling used magazines on eBay. The first and most common way is to sell individual issues. Collectors are either looking for a specific issue, the July 1972 issue of the Saturday Evening Post, for example, or searching by topic. They may be looking for issues about a famous person, like Robert Kennedy or Martin Luther King, or about science, woodworking or model railroading. That's why it is important to describe an issue wheel in your listing, including at least the headlines of the major articles in that issue and a cover photo.The second way is to sell "runs" of several issues of the same magazine. This works particularly well for newer magazines that are not as popular with collectors. A run could be just a few issues of a magazine, People or Sports Illustrated, for example or all the issues from a particular year.

The last and often the most profitable way to sell old magazines is to set aside the less than high quality issues when you are sorting. A rip on the cover or a water stain could make an issue an ideal candidate for "ripping." Folks who cut or tear out individual pages, usually full-page ads or articles, are called "rippers" in the used magazine business. Due to the growing demand by collectors, old magazine ads can bring as much as $10-$12 each on eBay - that's $100 to $150 from just one magazine!There are other ways to make money from old magazines as well, such as bundling and selling clippings about famous people or selling mounted or framed copies of collectible magazine covers that are in the public domain. To learn more about this fascinating and very profitable business, read Old Magazines Into Gold, available from: rel=nofollow http://extraincomebulletin.com

Craig Wallin is the author of twelve best-selling books about home-based businesses you can start for just a few hundred dollars, and the editor of EXTRA INCOME BULLETIN, an online resource about honest businesses you can start on a shoestring. To learn more, visit: http://extraincomebulletin.com

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How to Make Money Selling Old Magazines Online

An estimated 65 million baby boomers in the U.S. are using the internet regularly. So what are they doing online? Web surfing down memory lane! Seems our fast paced, hurried society has created a big yearning for boomers to turn back the clock and return to the "good old days."This nostalgia wave has created a huge demand for anything collectible from those good old days.

Old magazines are hot because they are affordable nostalgia, and a boomer can purchase a collectible issue of a favorite magazine from the 50s,60s, or 70s for as little as $12-$30. That's created an opportunity for entrepreneurs to scout for those old magazines in their local attics, basements and garages, then sell them online to the boomer collectors who are snapping them up. It's not a get-rich-quick business, but ideal for those who enjoy browsing local garage and estate sales to find the magazines.

Today, eBay is the best place to sell old magazines, thanks to a well-deserved reputation as the go-to spot on the internet for collectibles of all sorts. There are also many lesser-known venues, such as Etsy.com. Those who have built up a decent inventory of magazines often open up their own online store, using inexpensive software such as Volusia.com.

While finding old magazines is fairly easy, the secret is in knowing which ones are profitable and which are dogs. According to one book on the subject, Old Magazines Into Gold, there are about two dozen common magazines that sell well and are in plentiful supply. Some, like Life magazine, were mass-circulation magazines, hitting a peak of 8 million copies sold every week in the 60s. The common magazines like Life, Look and Good Housekeeping are the steady seller online, and usually fetch a 10X markup over the garage/estate sale price. For example, you might pay $1 each for a stack of old Life magazines at a local sale, then list each one individually on eBay for $10-$15 each.Here's where the fun begins. Like a weekly treasure hunt, a garage or estate sale may turn up hidden gold. Examples include:

First issues. Look for Volume 1 #1 of almost any magazine. The first issue of People magazine from 1974 brings over $100.

Celebrities and VIPs. These can really boost a magazine's collectible value, especially if the celebrity is on the cover and an article about them appears inside. Deceased celebrities tend to bring more than those still alive, but let's use Madonna as an example anyway. She was on the cover of only one magazine in 1983, and just seven magazines in 1984, so those issues have a high value. Her very first appearance on the cover of Island magazine now brings over $1,000.

Inserts. Magazines occasionally publish an issue with an insert, which can raise the value substantially. For example, an issue of Sports Illustrated with a baseball card insert can bring 5X to 10X the price of an ordinary issue.

Avoid National Geographic. It has become the most saved magazine on the planet. Have you ever known a subscriber that did not save every issue? As a result, old issues are a very difficult sell, unless they are leather bound volumes with map inserts.

Covers. There is a sizable number of collectors who collect magazine covers, in particular the New Yorker, Life, Time and the Saturday Evening Post. A cover of a famous person, Marilyn Monroe, for example, or illustrated by a famous person like Norman Rockwell can bring many times the price of an ordinary issue.

The next time you're at a garage or estate sale, if you don't see any magazines, ask "Do you have any old magazines for sale?" You may find yourself taking a profitable trip down memory lane. To learn more about this little known, but very profitable business, read Old Magazines Into Gold, available at: rel=nofollow http://extraincomebulletin.com

Craig Wallin is the author of twelve best-selling books about home-based businesses you can start for just a few hundred dollars, and the editor of EXTRA INCOME BULLETIN, an online resource about honest businesses you can start on a shoestring. To learn more, visit: http://extraincomebulletin.com

Article Source: [http://EzineArticles.com/?How-to-Make-Money-Selling-Old-Magazines-Online&id=6...] How to Make Money Selling Old Magazines Online

How to Get People to Sign Up to Your Website

An individual can choose to give their personal information at different occasions. They could also do this when they sign up to your site and its important for you to offer them some incentive, say a free download.

When someone signs up to a site, they may not issue out all the accurate personal information yet its key for cases of setting up market strategies. Complete data about an individual has to be acquired by the site owner to smooth the process and to also assist them in relevant recommendations.

Clients are always helped when they are issued with your background information as well as history of practice in your activity or profession. That is the importance of introducing yourself to the customers.

There is always a line between private matters and business issues and one has to ensure that. They however need to issue out detailed information in some cases for example when it comes to selling their ideas and products to the customer and given prior business experience, it would be a bonus to them.

In issuing out information, you need not give all the details but rather only that which is relevant to your field of activity.

When you are seeking for trust from your potential customers, you have to work for it and this can be done through recommendation the right products and ensuring that these services or products are of high quality.

It is key for sales to grow and this largely depends on what service or product has been offered to the customer. If they are satisfied or pleased with these, they become loyal customers.

A targeted message to a customer about a preferred product is a wise idea because it saves both parties a lot of precious time. They don't have to search for their desired product for long. When high quality and sincerity can't be earned, failure emerges. [http://carpetprices.org]Carpet prices and [http://runner-rugs.net]runner rugs prices are usually in the same range.

Article Source: [http://EzineArticles.com/?How-to-Get-People-to-Sign-Up-to-Your-Website&id=596...] How to Get People to Sign Up to Your Website

Combating Negative Reviews Online - 6 Quick Tips

There's nothing more disheartening when you work hard to build up your brand and your online presence and then you discover that you're receiving negative reviews. Those reviews can substantially impact on your sales and your revenues and it can be very hard to deal with the fall out. Don't worry help is at hand, here are 6 tips to help you improve your reviews and to deal with the impact of bad feedback.

Always respond to bad reviews. Whatever the feedback, however mean or spiteful you feel it is, you need to respond. You must respond in a positive way, offer a means of resolving the issue, apologise and if you get a response update the review too. If the review makes steam pour out of your ears and you just want to scream and shout, calm down before you respond. You can't control the reactions of others, but you can control your reaction to them.
Work harder to get positive reviews. This has a couple of benefits, firstly new reviews tend to displace older reviews, so if your customers start posting about how happy they are the negative reviews will slide down the list. Though it's worth noting that some review providers (like Yell for example) will allow customers to screen by ratings, so a determined customer will always be able to pick out the bad reviews. So don't stop responding to bad reviews.

Tip: If you want positive reviews ask your customers to review you, give them web addresses and links to do so and thank them for doing so.

Tip: Never write positive reviews of your own business yourself, you will get caught and the fallout from this kind of situation will damage your business.

If you have issues, talk about them. From time to time you'll have an issue that affects a large group of customers, for example your delivery agent may have failed to deliver multiple orders on time or one of your suppliers may have issued a recall for a product you sell. Don't ignore these issues, talk about them before they become an issue - post on your blog/website and in other consumer sites about what has happened, and what you have done to resolve the issue.
Don't panic. It's OK to get bad reviews; no-one can be all things to all customers. Just ensure that your values and attitude are reflected in your responses and in your positive reviews.
Make it easier for unhappy customers to let you know. The best case scenario is that customers let you know they are unhappy before they go online and tell the world, encourage feedback from your customers and more importantly - thank them for that feedback and act on it wherever possible.
Don't let it go. If you believe a review is truly malicious and not at all representative of your business, contact the site it is on and ask them to take it down. Provide evidence when you do so, and try not to take no for an answer.

Nick is the President of http://www.authoring4u.com a specialist consultancy based in Shenzhen China, which helps companies from around the world save time and money in the areas of; technical documentation, Internet presence and marketing and Press Relations.

Article Source: [http://EzineArticles.com/?Combating-Negative-Reviews-Online---6-Quick-Tips&id...] Combating Negative Reviews Online - 6 Quick Tips

Issues With a Wiki World

As the internet continues to grow and the free flow of information continues to be facilitated, the problem of human error and bias enters more and more into our world. Blogs and wikis alike suffer from this already, and the issue compounds itself as both mediums become more popular and information becomes recycled by more and more people (the 'retweet' phenomena.)

As Wikipedia itself correctly identifies, "Anyone can change an article in Wikipedia. This means it is difficult to say if something that is written in Wikipedia is true, or accurate." This issue finds itself reincarnated in the new journalist's arena, where news sources rush to be the first to report on something, often sacrificing informational integrity in the name of 'breaking news.' As news providers becomes more focused on being the first to obtain a story, fact checking will inevitably be placed on the back-burner, creating an informational economy in which nobody knows what news is valid from what is fake or inaccurate.

The problem of bias is huge, as it has been since journalism first began. Simply put, one's beliefs and ideologies leak into their work, especially in the world of journalism. This problem is particularly noticeable in technology-related news, as journalists distort and in some cases even hide information based on their company preferences and consumer loyalties. This issue spreads beyond the internet, and outside of rigorous fact checking has no solution, but the decentralized and deregulated nature of the internet has provided a breeding ground for this type of behavior.

Finally, the censorship of information threatens to further dilute the purity of information on the internet. As seen in the incident involving Jeff Gerstmann and Gamespot, people perceive that information can be bought and influenced by money, and opinions counter to those of the highest bidder can be erased.

In an environment like this, the question of who and what sources can be trusted is difficult. The wiki world is one filled with brilliant ideas and to-the-minute news, but one must always be aware of what occurs behind the screen.

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Article Source: [http://EzineArticles.com/?Issues-With-a-Wiki-World&id=4494135] Issues With a Wiki World

Work at Home Success - How to Influence a Successful Outcome

Have you ever made a choice that you later felt was a mistake and given the chance you would go back and change the decision you made? Have you ever said "Hindsight is 20/20?"

I am certain that all of us have been in this situation, however not all of us have the same response to these circumstances, especially while working at home. The reason we react differently is that some people concentrate more on what they cannot control, rather than on what they can control in their life.

Most people fit into one or the other categories. So which are you?

If you concentrate more on what you cannot control your speech will sound like more along the lines of "I have to make this happen, If I only had the capitol, if I had a better car, if my past was not so bad I would have, if I was smarter I might be able to, If I could write better I would, if I were better looking then I might..." Get the picture?

On the contrary, if you are concentrated on that which you can change you would realize that it is not the situation (the I don't haves) or the issues surrounding you that are causing these things in your life to happen. It is You!

Your speech pattern will be like this: "I must change in order for that to happen, what can I do differently, I am responsible for my learning and skills improvement, I can make that change in my behavior, I choose to give it a chance, I want to become a movie star." Whatever your dreams, whatever your goals, you are responsible and can be Proactive.

How do you change and become this person so that you can succeed at home? Start by looking at one common problem you have in your life today. Think about that problem right now and write it down. How does it make you feel, who is causing you this pain? What is the situation about? What do you normally do about this issue? Stop now and do this for a better understanding...Did you do it?

Ok, now that you have completed that...look at what you wrote. Who is at fault in this situation? Is there anything you can do differently to change the outcome of this normal issue? How can you respond differently to make a positive change? Write that down now. Is there anything you can do Before the issue occurs again that can change the whole situation in a positive manner? Do it now

Remember that you are reasonable or "response able." You can change each situation, by changing the way you respond to it...are you reacting to it or being proactive towards it? Are you controlling the situation or letting it control you? Think about this before the next situation comes up and make sure that you are in control of your thoughts and feelings all day long.

So how can this change your business at home? You know you can control you, your time, the skills that you learn. If you want to learn how to get more people to join your business...then learn the art of speaking on the phone, if you want to know how to get 5,000 on Twitter...get a course on how to use Twitter the right way. If there is an issue that you see in your business, think about what steps you could take to change that issue into a non-issue and then take that step right now.

Learn to become solution oriented and concentrate on what you can change in you, not what others are doing "wrong" in your eyes.

Your Online Business Coach,

Misty Hofstetter Successful Online Entrepreneur

Misty's Mission For 2010 is to create 100 Successful Online Business Entrepreneurs in order to give back the gift of freedom she has been given! As a Military wife, an Experienced Internet Entrepreneur & Successful Internet Business Coach/Mentor, Misty knows how to complete a mission. She is not afraid to give the "tough love" that comes with learning the craft of online marketing and has learned the art of motivating her students. Misty's favorite pass times are watching football with the guys (Denver Broncos of course) and playing with her 2 dogs and 4 cats that keep her company as she works full time from home. Are you One of the 100 she will mentor into success?

For more training on marketing, mindset, and business go to her blog at http://www.MistyHof.com

To find out more about Misty's Primary Business go to http://www.MakeMoneyWithMisty.com/?t=ez09

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