Redtone : 100k Merchants

I was very excited of getting involved with Redtone Mobile Money to sign up merchants so that I can earn some passive incomes for the coming years. Nevertheless, my excitement came to an abrupt end due to the fact that Redtone by itself has already signup 100 merchants which consist of big boys like Carrefour and etc.

I mean, let's face it man, these are the type of merhants that can give you substantial revenue out of a 0.056% cut. For instance, if you are talking about A & W, which is centrally controlled for all its 50 branches around Malaysia, is thus capable of generating and income of around 50 * RM150K * (0.056/100) = RM 4200.00 (based on assumption that each branch generate an average revenue of RM150K per month)

This is a good money for someone who doesn't do anything except for earlier negotiation. But I just don't think it is left for us anymore.

Nevertheless, according to their press release on 21-Sept-05, their target is to create 100K merhants in one year, before another competitor moves in. Thus by assuming that on the average, a business needed RM150K of revenue to survive, what is left for freelance agent is 99900 merchants around Malaysia.

99900 * 150 K * (0.056/100) = RM 8.39 16 Million to be earn monthly for the agent.

According to the news, they have around 5K agents doing the job and more will be expected to join them, that would conclude a RM 1678.32 of passive income for everyone involves.

Thus, you go and figure out whether it is going to be your cup of tea.

Why Agency?

Basically, they are treating the Mobile Money business in the form of agency, similar to insurance agency.

The biggest reason is perhaps they are looking for someone to share the risks. Having agency means there must be come kind of agency manager who would be expected to bear the cost of training to sub agents and rentals to shop lot and etc.

The biggest problem is that if an agency is not able to deliver, Mobile Money would be affected at all, because they have other agencies and can always create new agency.

Therefore, if you notice carefully, insurance agencies are always on the lookout for new agent and the reason is simple; they can't wait for 10 years for an agent to perform. In fact, if you don't perform quickly, they would consider it as a waste investment. For them to continuously look for new agent is justified further that every single person can only go as far as 24 hours and your contacts will be limited. Up to one stage where the maximum capacity of an individual agent just could go any further, that is they time for someone new to come in, to offset the saturation.

Thus, don't be surprise that an insurance agency manager tells you that you are capable and is looking forward to provide you with training. That is just marketing talk. If you can't deliver, they will hate you for it, nothing is free.

Global Recession by 2010

Many experts predicted that a global economy is hitting the world by 2010 or sometime before that. One of the biggest trigger is the down fall of USA economy based on the fact that many USA citizen have negative savings in the bank, most of them are in debts anyway. Their survival tool is based on refinancing of properties which have seen prices soaring. And until the magic wand stop working, they will be in big problem.

Experts warn that recession will last more than 10 years and it will create a path for the golden age of Asia.

Thus, everybody needs to work hard for at least 3-4 years before the bad time arrives and the least you should do is to clear all your debts.

Work hard.