These were some of the key factorsI presented
at an online conference about the
economy that awaits us (emphasis on UK,
US and Russia).
-Online companies smaller as employers
Google employs about 15,000 people. It
has subcontractors. I will guess that
these total a maximum of 35,000, giving
a total of 50,000.
In 2002, I visited car maker, Lada, in
Toliatti, Russia. Lada employed 120,000
in the town, which supported a
population of 700,000.
Also, it had
component suppliers elsewhere.
Online entrepreneur, Omar Martin, earns
$1 million per year. Including his
(subcontracted) support in the
Philippines, him and his wife, his team
totals just 6 people.
Due to automation, he could
grow considerably without a major
increase in staff.
John Thornhill’s revenue is probably
less, but his operation is run by a
similar number of staff and allies.
Affiliates, paid by commissions on
sales are major contributors to their
businesses, as they are to the
affiliates’ revenues.
They contract out
design and some technical needs, but
only when they need to so do.
Support operations, to help clients,
are often subcontracted out when online
operators move from beingsole proprietors to a
medium-size business.
Physical businesses, like Amazon andEBay tend
to need more support than digital
businesses supplying digital training
courses, music, videos and ebooks.
Delivery of digital products is
generally automated through JVZoo and
similar operators.
So, digital businesses offer growth
opportunities, without the need to hire
many (or any) staff, as almost any
service, or product, can be outsourced.
This good news for entrepreneurs is bad
news for employment.
Though Uber (taxis) provides work for
drivers and Amazon provides work for
delivery staff, most employment, for
major firms of today, is either being
contracted out (Apple phones made in
China), or limited to computer and
network specialists.
Middle managers
are a species that is fast disappearing.
Career ladders are disappearing.
Job losses are not being replaced as
unemployment is reaching record levels.
Employers cannot be trusted to provide
employment stability.
Having your own business, that you
control, is no longer a luxury: it is
essential.
Making Money Online may be for you,
given the low investment and available
help.
To be continued…..
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