Should Your Business Give You Free Drugs?
February 28, 2007
"For year," The New York Times tells us, "employers have been pushing their workers to pay more for health care, raising premiums and out-of-pocket medical expenses in an effort to save money for the company and force workers to seek only the most necessary care.
"Now some employers are reversing course, convinced that their pennywise approach does not always reduce long-term costs. In the most radical of various moves, a number of employers are now giving away drugs to help workers manage chronic conditions like diabetes, high blood pressure, asthma, and depression."
Pitney Bowes, Marriott International, and Mohawk Industries, to name three, have begun free drug programs for employees, hoping to avoid paying for more expensive medical treatments later.
Uwe E. Reinhardt, a health economist at Princeton University, told the NYT that "if you get people's obesity down, cholesterol down, asthma down, you save a lot of money."
The Times article is stupid in many ways - ways you might expect from a newspaper that prides itself in knowing next to nothing about business, especially small business. But it is right about the facts - that when it comes to health care, an ounce of prevention is worth a pound of cure.
Here's what is wrong about the article:
* Not all businesses have been pushing workers to pay more for health care.
* Those that are doing so aren't necessarily doing it to save money for the company (which would be unbelievably dumb) but because the cost of health care has been skyrocketing.
* There are three reasons why health care is skyrocketing.
1. A big part of the cost of health care - the part that goes for surgery and drugs (including many procedures and medicines that have little or no scientific support) - is dictated by drug companies.
2. More and more elective procedures are being allowed by insurance programs. (Why? Because it fattens everybody's pockets at the expense of health consumers and the companies that subsidize them.)
3. Health care costs are huge because Americans are huge. Obesity is the number one health problem in America, and none of the drugs mentioned by the NYT will do anything to make obese people thinner. They will just mask the symptoms of their obesity-related diseases.
The way to reduce rising health insurance premiums in America is to get Americans to lose weight by eliminating chemicals from their diets (including chemicals produced by the big drug companies) and switching to natural medicines and natural foods.
I believe that businesses should pay for the health care of their employees if they can. Small businesses, which account for the majority of new employment in America, can't usually afford to do that. But larger, more profitable companies can and should.
I also think businesses should take an active role in trying to encourage their employees to be healthier - but I agree with the NYT when it says that most people simply won't listen.
The responsibility for your health lies with you, not your company. Paying for health insurance is certainly something companies should do to attract and keep good employees, but health insurance doesn't make you healthy. And neither do most drugs. Eating well, keeping your stress down, and staying off the couch - that is the best thing you can do to live a long and active life.
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posted by M. Masterson @ 11:14 AM,
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No One Cares What You Had for Lunch, Part 2
Yesterday, I gave you six of Margaret Mason's best ideas from her book No One Cares What You Had for Lunch: 100 Ideas for Your Blog.
Here are six more:
Read the rest of this article at Early To Rise
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posted by M. Masterson @ 8:23 AM,
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No One Cares What You Had for Lunch, Part 1
February 27, 2007
Recently, I read a book about good blogging. It's called No One Cares What You Had for Lunch: 100 Ideas for Your Blog, by Margaret Mason.
To help you break through writer's block and get something posted on your blog, here are six of Mason's best ideas:
Read the rest of this article at Early To Rise
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posted by M. Masterson @ 8:17 AM,
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The Rental Real Estate Outlook for 2007
February 23, 2007
Rents are expected to go up in 2007 - for the third year in a row. The increase is projected to be five percent this year, for a 14 percent total increase since 2004, according to a report by the national brokerage firm Marcus & Millichap. That compares to a four percent increase in pay over the same period, adjusted for inflation.
Marcus & Millichap says this situation will make housing more difficult to find, especially in the coastal cities. They predict the trend will continue for another three years.
From 2000 to 2004, landlords couldn't raise rents, USA Today said, because tenants were leaving to buy houses or condos. To feed that buying frenzy, about 300,000 apartments were converted to condos in the past three years. Now, even with 92,000 new rental units this year, there's still not enough stock to meet the rising demand.
One of the worst locations for renters is New York City , where rents have increased seven percent in the last year.
The national median rent will be $943 a month, which is 60 percent of the median mortgage payment of $1,566.
Renters will get a break in Miami, Las Vegas, and San Diego, where investors bought up thousands of condos hoping to flip them. Since the market faltered, many of those investors will need to drop rents to help them pay expenses or will be forced to sell at steep discounts.
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posted by M. Masterson @ 5:05 PM,
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What's the Big Deal About Passion?
February 21, 2007
Why is "passion" such a buzzword with businesspeople today?
Maybe it's because we are increasingly getting our business ideas from professional sports, where playing with passion is supposed to be a good thing. (I don't think it is, but you'd be hard put to find a coach who agrees with me.) Still, many of the best players play without passion. I'm thinking of Dwayne Wade as opposed to, say, Alonzo Mourning.
They are both favorites of mine, but it's easy to see that Dwayne has taken his game to a much higher level than Alonzo has, because Dwayne plays without passion. (When I say "higher level," I'm speaking relatively ... relative to each player's personal potential.) He is never stressed, never angry. He is almost always calm and happy and in the groove ... even if he is temporarily off his game.
I'd like to draw a distinction between passion and enthusiasm. Passion includes enthusiasm, but is combined with emotional attachment.
Enthusiasm is good, because it can be a source of motivation and inspiration, both for the person who feels it and for those who are affected by it. But when you combine enthusiasm with emotional attachment, you end up with an irrational passion. And that, as Max Weber pointed out, is a dangerous thing. "Passion without responsibility," he said, "can lead to ... fervor and crime. Passion without judgment can lead to ineffective or dangerous decisions."
Because most people don't recognize this distinction, they are prone to giving imprecise or even incorrect advice. For example, when Jack Welch said that "people in leadership have to have passion (in order to) impassion people around them," he wasn't talking about the kind of passion that fanatics have. More likely, he was thinking of the kind of passion he provided as CEO of General Electric, which was rational enthusiasm.
Likewise, when Martin Luther King Jr. said that human progress requires the "passionate concern of dedicated individuals," he was talking, I think, about a deep commitment, the kind you need to carry you through adversity.
What I am saying is this: If you want the best chance of living a happy, accomplished, and well-balanced life, you need to learn how to set goals and pursue them with commitment and enthusiasm ... but to do so without emotional attachment. That way, you can maintain an open mind, act with responsibility and good judgment, and not be crestfallen if things don't go your way.
It may not seem possible to set a goal and pursue it with commitment and enthusiasm without getting emotionally connected to the end result, but it can be done.
And if you learn to do it, everything will get better, including your ability to achieve your goals.
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posted by M. Masterson @ 4:55 PM,
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Real Estate Trouble
February 20, 2007
In Early to Rise, we've been predicting a big drop in real estate prices for about three years. Our bet was that prime residential housing would drop about 15 percent, less-well-situated properties and townhouses would fall by about 25 percent, and condominiums by about 50 percent.
Prices are definitely down, but it's hard to say for certain where they are right now because so few houses are actually being sold. There are loads of properties listed, but few buyers ... because those people who are selling are hopelessly hoping to get pre-collapse prices.
Read the rest of this article at Early To Rise.
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posted by M. Masterson @ 8:23 AM,
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How to Be a Calm, Confident, Compelling Speaker
February 15, 2007
Sometimes a book review is so good at highlighting the key points that you feel like you don't need to read the book. Michele Archer's recent USA Today review of The Elements of Great Public Speaking by J. Lyman MacInnis is a good example.
Read the rest of this article at Early To Rise.
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posted by M. Masterson @ 9:32 AM,
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Feminist Art - Bah, Humbug!
February 14, 2007
Judy Chicago, a 67-year-old self-described "female artist," says she has struggled for many years to find a place in the male-dominated world of art. Now, her huge installation titled "The Dinner Party" has a permanent home in a new gallery at the Brooklyn Museum. The work is comprised of a very large dinner table with 39 place settings, each one dedicated to a historical female figure. Among the celebrated proto-feminists are Ishtar of Mesopotamia, the Hindu goddess Kali, Eleanor of Aquitaine, Elizabeth I, Virginia Woolf, and Georgia O'Keefe.How is it that feminist artists can get away with such predictable and pedantic art? Aren't intelligent women embarrassed by this?
There are plenty of good women artists around. Plenty who have, like Judy Chicago, managed to fight their way through the anti-female guardians at the museum gates. Why devote an entire gallery to such a corny, dumb, and insipid idea?
You see the same thing with some African-American artists - the stupidly preachy stuff is touted, while the work of much more intelligent and talented artists is left in the storage rooms.
Why is this stuff promoted?
Is it because the people behind it secretly think that women and other (i.e., real) minorities can't compete in an open contest? That they should be judged by different (i.e., lower) standards? That they should be praised for art that you'd expect to see in a competition among precocious 12-year-olds?
If not, why has this unspoken Special Art Olympics for the socially disadvantaged been established? I say, let's get rid of all that bad stuff from our museums and show art that's good and doesn't need excuses.
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posted by M. Masterson @ 9:37 AM,
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When in Paris, Do As Parisians Do
A promotion launched by the Ile de France tourism office is hoping to neutralize a decline in the number of British tourists that's been attributed to the snootiness of French waiters, taxi drivers, and retailers. The promotion, dubbed "C'est So Paris," instructs foreigners on how to snub back.
Read the rest of this article at Early To Rise.
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posted by M. Masterson @ 8:57 AM,
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Trying to Make Sense Out of Marriage and Money
February 12, 2007
For the first time in history, more than half of American women are living without a husband, according to a New York Times analysis of census data.
Is this a positive or a negative trend? Does it mean that more women are becoming independent ... or that the institution of marriage is becoming shakier ... or both?
Read the rest of this article at Early To Rise.
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posted by M. Masterson @ 8:19 AM,
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A Short Lesson in Quality Advertising
February 9, 2007
In an Early to Rise article titled "A Short Lesson in Quality Advertising," I explained how hypey, hyperbolic copy can get big responses in the short term - but it doesn't make for big profits in the long term. I believe that sincerity is much more important for getting satisfied customers who will buy from you again and again.
Read that full article here. Then take a look, below, at two memos I wrote to the ETR marketing team in response to two very different ETR ads - and let me know which type of copy you prefer, both as a businessperson and as a customer.
Here's the first ad ...
Give Yourself a Nice Pay Raise - and a Three-Day Weekend, Every Weekend
By the end of this week, you can give yourself a pay raise. How does an extra $20/hr sound ... and schedule a few days vacation while you're at it!
After a month or two, how about another raise ... to $2,000 a week.
It's happening everywhere. Ordinary people - including folks who never finished school - starting their own businesses ... and making side incomes in the neighborhood of $40,000 ... $60,000 ... even $100,000 or more a year.
They're living the American Dream. Now it's time for you to start living it too.
And here's the memo about this ad that I sent to the ETR marketing team ...
This was well written ... except for the $2,000 claim (maybe too aggressive). The copy was reasonable, well said, and involving.
We need to write like this more often ...Good job.
Now, here's the second ad ...
You know the feeling ... it's enough to turn you into a regular Scrooge! Bah humbug, indeed!
Well here's your chance to have the best Christmas you'll ever have. I mean it. No stress, no worry, no hassle.
Just sweet Christmas memories that will last you and your family a lifetime.
In the next three minutes I'd like to show you exactly how you can pick up a nice little bundle of extra cash for the holidays.
Look, my mom used to tell me, "It's not what you get for Christmas that's important, it's what you give." Yeah, it sounded nice, until I hit the mall and spent the rest of the year paying for the warm, fuzzy feeling I got from giving to everyone.
Face it - the happy moments are well worn off about mid-July when you are still paying 21% interest for that $40 tie you bought your boss.
Now, I am not saying that Mom was wrong. No, she was right. Giving is the most important thing. And there is no doubt you get a thrill from seeing faces light up when you give them killer gifts. I love being someone's hero for a day ... and there is nothing sweeter than letting family know you love them with a well-thought-of, quality gift. It just makes you feel good all over.
Maybe the next best feeling in the world is shopping without being short on cash. Can you imagine! There are people out there that can walk into almost any store this time of year, pick out what they want, and slap down the cash for it. Man! Would that feel good or what?
That is what you could feel like this Christmas. I wonder how much cash you would need to enjoy that kind of shopping experience? Would an extra $1,000 do it for you? How about $2,500? Maybe $3,500 puts you closer to having a stress-free holiday? Or are you a big spender and need more like $7,000 to get the job done?
Whatever it is, you have the chance at having it in your hands before December 24th ... and yes I am talking about this year. Right now.
In fact, if you follow the advice in this letter, by this time next month you could be well on your way to the holiday experience of your dreams.
Please click here to read all the details on this amazing quick cash program.
P.S. We know that the holidays are just around the corner. So if you order in the next 72 hours we'll also send you a downloadable version of the entire program so you can get started TODAY.
And here is the memo I sent to the ETR marketing staff the following day - after the above ad ran ...
Yesterday, I sent you a memo about an ETR ad that was well written. It was driven by a compelling idea, and it was expressed in a human voice.
But this ad is, in my view, weak. It does not have a compelling idea (or a compelling story) and the voice is insincere. It is the voice of someone who is trying to sell something.
Do you see the difference I see?
It is a daunting task to write so many ads ... so we can't expect all of them to be strong. I'm critiquing them so we can all work together to improve them over time ... to make them stronger, more believable, and more beneficial to our readers.
When I consider these two ads, a few ideas that we've discussed suggest themselves to me:
1. ETR ads, like ETR articles, should contain one good and useful idea - some technique or strategy or tip or illustrative story that the reader can benefit from. This will create a feeling of reciprocity that might improve the response for that particular ad and will surely increase the responsiveness of the reader over the long term as he comes to trust ETR more and value its recommendations more highly.
2. ETR ads should be written in the same voice that our editorials are written in. What is that voice? This is a tough one, since we have many writers with different personalities. But I would like to see ETR's voice be - first and foremost - sincere. Without sincerity, you cannot build a relationship ... because you cannot develop trust without sincerity.
Second to sincerity, I'd like our voice to be confident. Not the cocky confidence that attempts to cover up self-doubt, but the sort of relaxed confidence that can only be gained from knowing, from experience, what one is talking about.
Third, I'd like our voice to be enthusiastic, because a good part of the good we do is to motivate our readers. Some critics denigrate "motivational writers," but I am proud to think that we could be providing this service to thousands of people who have, for whatever reason, become temporarily stalled in achieving their goals. In speaking or writing with an enthusiastic voice, we should always be sure that our enthusiasm is appropriate to the product or service that is being marketed. In other words, we must be sure that our enthusiasm is sincere - our first requirement in having the right voice.
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posted by M. Masterson @ 7:00 AM,
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Dealing With Bullies
February 8, 2007
Bullies are all around you - at the office, in the parking lot, on the phone, and in line at the cash register.
Read the rest of this article at Early To Rise.
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posted by M. Masterson @ 8:07 AM,
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Living Up to Expectations
February 6, 2007
Every time you take a seat at a meeting, you have the chance to advance your career. So make the most of it.
Read the rest of this article at Early To Rise.
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posted by M. Masterson @ 10:32 AM,
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How to Get 15% on Your Money This Year
February 1, 2007
Jessie, a member of my extended family, has come to the ETR conferences and read all my books on wealth building, but she isn't happy with the advice I've been dishing out.
"For someone like me, it's not realistic to think about starting a business. I'm fifty-eight years old. I've already had a career. I just need to figure out how to make my money work harder so I can retire comfortably."
Jessie figures she and her husband need about $150,000 a year in income to enjoy the lifestyle they want. Right now, their passive income is next to nothing. She earns $35,000 a year as a substitute teacher. He owns a business that provides them with about $80,000 a year. They have about $600,000 in equity in their home and a summer cottage, plus about $250,000 in cash and savings accounts.
"We got a tip on a stock last year, and made a nice chunk of change on that," Jessie tells me. "A friend of mine says that he can get us into a hedge fund that guarantees 35 percent a year."
What is Jessie thinking?
We talk about the fundamentals of stock investing. I explain to her that, for a hundred years, the stock market has been averaging about 10 percent annually. I ask her if she really believes a hedge fund could outperform that long-term average by 350 percent. She doesn't know, but she's willing to find out.
"We don't have the luxury of being satisfied with 10 percent," she tells me. "We don't have your money."
Ouch.
I stop myself from saying that if they invest in some hedge fund Jessie's friend recommends it won't be long before they don't have their money either.
We talk about the normal relationship between risk and reward. I tell her that investing in something that you know nothing about and over which you have zero control is my idea of taking a lot of risk.
"How much risk are you willing to take?" I ask her. "To get that 35 percent, how much of your net worth would you be willing to lose?"
"What do you mean?" she wants to know.
I say, "Let's assume that this hedge fund has indeed delivered 35 percent to its investors for some period of time. To get that kind of return in the future, it needs to be more than good. It needs to be lucky. Would you invest in it if there was a 50 percent chance you'd lose every penny?"
"Hell, no," says Jessie.
"How about a 20 percent chance?"
No again.
"How about a 10 percent chance?"
Still a no.
The only risk she would take, she says, is a one percent risk. And she isn't too comfortable with that.
"Congratulations," I tell her. "You are a very conservative investor. But as a conservative investor, you have to be very careful. I'm a conservative investor, and I wouldn't think of risking more than two percent of my investment portfolio in hedge funds."
I'm not knocking hedge funds. I'm just saying that, as a conservative investor, I recognize that they come with significant risks. I'm willing to throw some money at one if it comes with good credentials ... but not much.
"So, what are you saying?" Jessie wants to know. "That it is impossible to get 35 percent on my money?"
"On stocks, on a consistent basis for a period of more than a few years, I am happy to go on record and say yes, it's impossible."
"So what can I get?"I tell her I think she could easily get the 15 percent she is looking for if she abandons her dream of making that kind of ROI lazily and passively and accepts the fact that she will have to work for it.
"Doing what?" she wants to know.
There are really only two options when it comes to getting a 15 percent return without taking any giant risks, I explain. And those two ways are by investing in a small business and/or real estate.
"If I wanted to hear that, I could read one of your books or go to one of your seminars," Jessie tells me.
"That's true," I admit. "And here I am giving you the same advice for free."
"I'm too old and tired to do that sort of thing," she says. "I need something simple and easy. Something I can do in my spare time that will be fun and won't stress me out."
"Like investing in hedge funds?" I ask.
"Right," she says.
"Oh. Now I get you," I say.
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posted by M. Masterson @ 10:41 AM,
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