Wednesday 27 January 2016

To Stop Bad Behavior, Display a Virtuous Quote


The Research: Sreedhari Desai, an assistant professor of organizational behavior at UNC’s Kenan-Flagler Business School, ran a series of studies in which subjects believed they were part of a virtual team playing a game. The subjects were told that they’d earn more money if they got their teammates to unwittingly spread a lie. Unbeknownst to the participants, the other players were all researchers. In the signatures of their e-mails to the subjects, some included a quote about integrity, some a neutral quote, and some no quote at all. The subjects were least likely to ask the people who put the virtuous saying in their messages to do their unethical bidding.
The Challenge: Can you really insulate yourself from wrongdoing by advertising your values? Or will people just think you’re being holier than thou? Professor Desai, defend your research.
Desai: We clearly saw that if people had decided to do the unethical thing, they were far less likely to try to involve someone who displayed a quote on morals than to approach other team members. We also found that when subjects were presented with such a quote, the likelihood that they’d send a deceptive message at all was generally lower. So a virtuous quote not only shielded a teammate from being asked to do a bad thing but also seemed to regulate the subjects.
HBR: What quote were they shown?
“Success without honor is worse than fraud.” It clearly takes a point of view on ethics. The neutral quote, in contrast, was “Success and luck go hand in hand.”
In another study, we didn’t use e-mail messages but had team members build little digital avatars of themselves. In fact, the subjects thought that the study was about avatars. The shirts the avatars wore had brands on them. Some were “moral” brands, like YourMorals.org, while others weren’t. The outcome was similar: When subjects saw that a team member had an avatar wearing a moral brand, they didn’t try to get him or her to participate in a deception.
In another study, we primed people to feel powerful before playing the game, just to see if power somehow mitigated the effect of the moral talisman. But it didn’t; we still got very similar results.
What’s causing these results?
When someone is in a position to request an unethical thing, they may not consciously be thinking, “I won’t ask that person.” Instead, they may perceive a person as morally “pure” and feel that asking them to get “dirty” makes an ethical transgression even worse. Or they may be concerned that someone with moral character will just refuse the request.
Games in labs are artificial. Are you sure this carries over to the real world?
In business surveys, a high percentage of employees report they’ve been asked to do unethical things. That’s how all this started. My coresearcher, Maryam Kouchaki, and I wanted to see if we could empower employees so that their supervisors wouldn’t ask in the first place. We did an analysis of employees and managers in India. We asked the bosses if they’d noticed anything religious about their subordinates, like vermilion dots on their foreheads or pictures of Hindu gods or quotes from the Koran or the Bible in their cubicles. We know from previous research that people associate these religious symbols with morality. We also asked the subordinates if they’d gotten a request to do something unethical in the past six months. Controlling for job satisfaction, performance, and the quality of work relationships, we still found that people who wore or displayed religious symbols were less likely to be asked to do something shady.
That’s encouraging. It’s such a simple intervention.
Couldn’t this effect wash away if everyone starts displaying quotations and symbols?
That’s part of why we wanted to do the workplace survey. If I see Krishna in your cubicle every day, would that priming effect fade over time? Would the managers be desensitized? It doesn’t appear that they were.
Is it just religious symbols and quotes about ethics that affect us?
I’d love to study other types of cues. I suspect that if I showed quotes about environmental causes—about the sanctity of nature—my boss would be less likely to ask me to dump chemicals into a river. Obviously, empirical evidence is needed, but I’d predict the same effect.
So would you recommend that employees display their morality more prominently?
Well, just to be clear, we didn’t test people’s morality. We tested how others perceived symbols of morality—and behaved in response. You could have a beautiful quote on your e-mail and also be an unethical person. But in general, I’d say the findings support displaying moral symbols as a way to signal to others that you’re a good person and reduce the chances that you’ll be asked to do bad things.
Could the symbols make bosses unwilling to take on hard choices, though?
We tested some for that. In another study, we found that displaying moral symbols did not affect whether bosses would lay you off. And in another, we tested whether they affected other people’s perceptions of your leadership and competence, and found that they did not. By the way, we asked those people if they remembered the moral quotes from the leaders they were evaluating. Oddly, people couldn’t always identify the quote they’d just read, but they still were left with a favorable impression of the leaders’ morality. It could be a subconscious effect.
What if this result is peculiar to certain cultures?
There could be cultural boundaries. In fact, we’re studying how people react to moral symbols in Australia. Our preliminary study showed that people there were skeptical of moral displays. They seemed to think the bloke with the quote was being “holier than thou” and probably had something to hide. They were more fond of and likely to spare someone with fun-loving and silly quotes. I have to explore what makes Australians different.
Why is this research important?
What I love about it is that it doesn’t at all concern behaviors that are publicly known. It measures what people do when they’re aware that no one else will know they’re being dishonest. And to me, the heartening thing is that overall, the incidence of unethical behavior dropped because of moral displays. Not just in what people asked others to do, but what people did themselves. It tells me we can do better. The glass is half full for me.
You messed up, though. If you had started this conversation with a pithy saying about integrity, I’d be less likely to misquote you and make your research look foolish.
I don’t think it’s too late. “Let thy secret unseen acts be such as if the men thou prizest most were witness around thee.” Now I’m counting on you to do the right thing.
A version of this article appeared in the January–February 2016 issue (pp.34–35) of Harvard Business Review.

Scott Berinato is a senior editor at Harvard Business Review and the author of Good Charts: The HBR Guide to Making Smarter, More Persuasive Data Visualizations, forthcoming from Harvard Business Review Press and available for pre-order now

Monday 25 January 2016

8 Smart Things To Do When You Find That Your Capital Isn't Enough


There may be days ahead of struggle, of working through the night, of feeling exhausted. But if you really want that business bad enough, you will have your dream. Below are eight smart things to do when the capital for your start-up isn’t enough.

1. Don’t start with a bang.

The best business advice I got from my mentor just before I started my own business was to start small. According to him, even though I had a global idea, I should start locally. This advice spurred me to start my business with the little I had at my disposal. The conditions were not perfect, my savings was not enough either, but I started all the same.
You should do the same. Work toward starting with whatever you have at the moment. It is always better to start small and grow bigger, with time, than to start big.
Moreover, not all businesses require a lot of capital to start. For instance, I started my first Internet business with less than $20. All I needed was my laptop and Internet access.

2. Do some hustling by the side.

The second thing my mentor drummed into my ears was to look out for ways to generate passive income as support in the early stages of my business.
The founders of Airbnb did not allow their lack of funds to stop them from building the business of their dreams, and neither should you. In fact, when it looked as if their little company was going to fail, they used the little cash they had to create fictitious cereals, which they sold to bloggers as "Obama O's" and "Cap'n McCain" treats repackaged in specially designed, $40 boxes.
They made over $30,000 at the end, which was more than enough money for them to continue their original business.
In the same vein, Dan Bilzerian is recognized today as the king of Instagram. He has a net worth running into the millions. But that is only because he has his hands full with his trust funds, business ventures, poker-playing pursuit and Hollywood roles.
Similarly, you should look out for ways to hustle and make the extra money you need to invest into your business.

3. Reduce your expenses.

Who says you have to hire an expert for every service you require? You can minimize your expenses by doing some of the jobs yourself. The "do-it-yourself" start is a wonderful way of learning everything about your business. It will also make you better qualified to delegate work to others later on.

4. Take loans from private organizations.

Taking loans from banks usually comes with a lot of requirements. This makes the loan process tedious and discouraging to many entrepreneurs. Fortunately, there are a lot of private organizations that offer online personal loans to entrepreneurs, enabling them to start their businesses without having to go through the hassles typical of seeking loans from banks.

5. Make the most of available business grants.

Every year, a lot of individuals, government bodies, foundations and corporate bodies provide grants to support entrepreneurs. Look out for these opportunities and kick-start your business. You could get the grant if you apply. But even if you don’t, you will have at least learned how to write a good business plan.

6. Partner with an angel investor.

Angel investors are people with means who derive joy in investing their money in startups as their own way of giving back to the society. Another great thing about them is that most are available to offer mentorship and coaching from their vast experience.

7. Use other people’s money.

As a consumer goods entrepreneur, I remember collecting money from a customer who had put in an order for some of my goods which she wanted at a later date. Since I had the products she wanted, I used the money to make some necessary purchases for another customer trying to order a particular product that I didn’t have.

8. Take advantage of free social media and word-of-mouth advertising.

If you have, for instance, up to 2,000 Twitter followers and 1,000 Facebook friends, you have more than enough of an avenue to publicize your startup for free. Let the people around you know what you do. Word-of-mouth advertising is still the most effective advertising system.
Have you ever started a business even though you didn’t have all the capital you needed? Please share your experience in the comments section.

Money Making Essentials: PayPal for Freelancers

In the freelancing world these days, PayPal is the biggest, hottest thing. You can invoice your clients directly (and regularly) through there, make free transfers to your bank account (so your earnings are just as fluid as cash), and even use a MasterCard PayPal debit card to spend your earnings directly!
I think it’s worthwhile to get yourself a basic PayPal account.
Why?

Here are my 5 favorite things about PayPal for Freelancers:

1) Insanely Simple
Whether I’m being paid or paying someone else, PayPal lets me take care of everything with ease. There’s no hunting around for addresses or worrying about some website’s security settings. Instead, I know I’m safe. My PayPal settings are already set up, and I can shop with ease. Really though, I prefer to see that money coming in than going out, so I enjoy it’s incredible ease of use when it comes to user payments.
Note: Transactions are not free on PayPal. Instead, a small percentage is taken from each transaction. That’s not so much fun and yes, we could do everything through routing numbers elsewhere, but it’s so easy that I don’t mind losing a buck or two here or there.

In one account, I can be both personal me and professional me. I can send my invoices from my fancy, self-hosted domain’s email address, or through any of the other professional faces I wear. I love this option, and it makes it simple to keep everything tied up in one pretty outfit instead of hopping around and forgetting passwords.2) Multiple Accounts
This also means that you can be paid through different email addresses. Don’t want your business payment going to dorkyjoelovescheese@yahoo.com, but would instead prefer those funds to go to joe@joescheese.com? That’s a seamless, easy integration.
3) Easy Business Front
Just as noted above, this simplicity and easiness makes for a super convenient business front, regardless of how official you really are.
From sole proprietors to major corporations, you can use PayPal to throw up your shingle anywhere.
Yes, that does sound a little sketchy, but PayPal gives your new customers confidence. They can trust that their credit card or banking information will stay safe because they’re going through a third party. Plus, it means that you don’t have to go through the fuss of establishing a banking account at some local financial institution. You can just be you for a while. Oh yeah, and you can charge your Aunt Marge that $50 for those soap dispensers/letters you sent/wrote her.
4) Debit Card
Really, I know that many people have issues with PayPal (just as they do with a wide variety of sites), but the debit card is something that changes the system completely. It’s through MasterCard, one of the largest and most universally accepted credit card processing companies out there, which means your cash is both usable and safe.
As soon as your client foots the bill for those 1,000 articles you wrote, you can spend that cash immediately. Check the app from your phone for your account balance, and swipe! It’s as easy as that. (Disclaimer: there are rules and settings about who can open these accounts and when, so do read before applying and using your PayPal card.)
With this, you can make money and spend it without the fuss of transfering funds to your banking account. This will keep PayPal relevant and popular for years to come!
5) Invoicing
It takes maybe 2 minutes to start an invoice from scratch, fill it out (even with tax information, if necessary), and send it out. There is no faster, easier, more reliable way to get your hard-won earnings in your hand than this! Plus, you can even copy old invoices to resend at a later date, which is perfect for repeat clients.
Both you and your clients will appreciate the simplicity of PayPal as your financial intermediary.
It’s a quick, rather painless set up, so go ahead and get started today!

How to Make Money Online: Affiliate Marketing

Alright, so I know that “affiliate marketing” sounds a little sketchy to many people, especially those new to the online sales world. But, affiliate marketing is one of the few ways that bloggers and website owners can make a reasonable income without creating a brand new product or service. In fact, affiliate marketing is part of why they can keep offering their great resources and work!
What is affiliate marketing?
In a nutshell, affiliate marketing is the act of advertising, recommending, and directing potential customers to someone else’s goods or services in order to make a commission. This can be done in a variety of ways. Bloggers and website owners might:
  • Incorporate ads throughout their website
  • Write about product or service from time to time in various posts
  • Tweet or post about the company
  • Share special offers
How do you find affiliates?
Although there are affiliate opportunities everywhere, some of the most popular places to find affiliate marketing offers are through these websites:
  • Commission Junction
  • Share a Sale
  • Clickbank
  • E-Junkie
  • PayDotCom
Personally, I prefer the interface of Commission Junction, but I also like the ready availability of smaller scale digital products through E-Junkie.
The best places to look for affiliate marketing ideas are the websites you already use. Check out what they sell, and investigate the income platforms set forth by those organizations. Focus on your audience, what they’d want, and how they tend to behave. It’s better to find one or two products you really like than to hock a bunch of junk you don’t really care about!Affiliate Marketing
I tend to think of affiliate marketing as unintended sponsorship. The company doesn’t necessarily know that you’re going to go all out crazy for them, but you perform many of the same actions and present a similar brand loyalty to your readers.
Is affiliate marketing profitable?
Now, there’s the rub. Have you ever been to those websites where people say that they make unbelievable amounts of money each month? Those numbers might be from Google AdSense or the sales of their own product or service, but that might also be through affiliate marketing. If you’re a good salesperson and truly believe in what you’re selling, you might be able to make some dough.
But, affiliate marketing really requires the right audience, ample traffic, and your time and dedication. It takes a lot of time and practice to find the right product and the right way to sell it, and not everyone will achieve success.
Plus, you don’t want to put all of your eggs in one basket. Although you might love Product X and want to sell it forever, you never know what might happen with that organization. Diversify, find relevant products that fit the same niche market, and integrate everything into a seamless marketing campaign.
Okay, so should I shut off my AdSense Account and start affiliate marketing?
That’s the tricky part. Really, no, but also, yes. If you’re already making money through AdSense, you’re converting page views and readers into clicks and income. That’s good. That’s what Google does. It finds the right ad for the right viewer. Your affiliate products might not evoke such click-worthy thoughts and actions from your readers. Therefore, your income would go down, and it might not go up if you don’t have the right set-up.
But, you will sell more of your affiliate product if you emphasize that and not any potential competitors (through AdSense). At first, just keep doing what you’re doing. Integrate the affiliate program a little bit at a time, monitor your analytic, and then move accordingly.

How to Make Money Online: Online Tutoring

Whether you’re a young student with good grades or an adult with practical, real-world experience, there are tutoring options for you.
Wait..tutoring? You want me to become one of those book-toting, grammar-noticing people?
In a way, yes! Online tutoring is completely different from what you might expect, however. Grab an internet connection, a webcam, and a microphone, and you’re well on your way to making money online!

Here are a few perks of online tutoring:

Hours

Whether you’re helping out a family friend or teaching English to students in Korea, online tutors set their own hours. Sure, it takes some negotiation with the student, but it’s definitely a far cry from the traditional 9-5.

More Selective Client Pool

Let’s say you’re great at higher level physics. You live in a town rather far away from the nearest college, and you’re getting tired of tutoring lower level maths and sciences to the people in your area.
Online Tutoring
In the past, you would have to pay for a webcam to get into online tutoring, but many newer laptops come with built-in webcams and microphones.
Online tutoring is perfect for you! Since you’re no longer constrained by your physical limitations, you can reach an international pool of potential students looking for people just like you. Oh yeah, and the rarer your skill set, the higher the income.
Although it might be nice to pad the books with some students in middle and high school, it’s nice to have subject variation and a mental challenge.

Ease

There’s not too much easier than sliding out of bed, heading to your computer, and being at work before you’ve had your morning coffee or put on real pants. There are definitely challenges to being your own boss and working from home, but the sheer ease of online tutoring is a huge perk.
Besides the tax issues that come with being self-employed, all it really takes is Skype, PayPal, and a subject base. You can be paid nearly immediately, and avoid working with anyone who seems to be a major trouble maker.

Lack of Commute

Again, it’s always a nice feeling when your morning commute takes about 5 feet. By not commuting, there’s the obvious perks of not sitting in traffic, wasting money on gas, and adding up all that wear and tear on your vehicle.
If you work online and at home, you also have the luxury of translating that extra commute time into paid sessions with students. Instead of driving half an hour there and half an hour back, you just picked up another open hour of work. In some cases, you can double or even triple your available working hours, which can really bring in some major cash.

How to Get Started as an Online Tutor

There are countless agencies and programs out there that promise to match you with students if you’ll give a huge chunk of your earnings, but those rarely draw forth the types and quantities of contacts you need.
Instead, consider starting a website. It doesn’t need to be too fancy, but it does need to be user-friendly and easy-to-understand. You might want to consider blogging if you feel like you know enough about the subject to type up practical tips and examples!