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There’s an old belief that the safest investment in the world is and always will be land. Everybody needs land for one thing or another, be it to build new homes, commerce centers, or to grow food. However, I think that too many people forget that in tough economic times, human necessities remain. Which is why people should be considering putting money not just into the land, but into the food that might be grown on it.

I’ve heard a lot of comparisons lately between the US economy and post World War I Germany. The fear of hyperinflation seems to be spreading. And I’ll admit that if we continue to borrow indiscriminately and if we somehow try to print more money, this could be a real concern. However, I also believe that those in charge of our economic policy can and have learned from the past (hence the return to provable Keynesian models rather than the kind of mindless pure free market nonsense that even Milton Freedman stepped back from before his death), and that the lessons for investors from this sort of comparison can be remarkably cogent.

Even in Weimar Germany, not everyone lost money. Some gained, by definition. The runaway inflation made it hard for everyone, but farmers actually started to do quite well. This is in large part because their commerce started from dirt and labor, both of which were abundant and cheap. From that point, their product remained the same regardless of what the mark was valued at, so they were able to sell without having to deal with the inevitable reduction in value that trading along multiple avenues entailed. If every person in line has to raise prices in order to make a profit, but the value of what they’re trading for is falling continually, then literally every lost second means higher prices to the next guy. For the farmer, they are never the next guy.

With the dollar on shaky ground right now, there’s something to be said for buying up food contracts. The odds are in favor of the dollar continuing to drop for a little while, so buying now will provide ample opportunity to make a profit on the venture. The risk is a currency collapse, but the direction of the economy for the past few months doesn’t seem to indicate to me that that’s a danger.  However, it’s worth considering an investment in grains, vegetables, and domestically produced foodstuffs.

Recently KPMG LLP, a tax, audit, and advisory firm did a survey of executives in a series of different industries. It’s fascinating to read some of the results as they seem to have a general upward trend. Now, I know there is still a pervading feeling of dread in regards to the economy, but there are times when one must admit that something is going well. From personal experience, I can say that when executives in the upper levels of the corporate infrastructure start predicting improvement, especially when it benefits them more for those encouraging faith in failure to reach an audience, then you can tell that there’s something behind it.

Let’s begin with the financial sector, which was undoubtedly hit hardest by the economic meltdown. As they were the major architects of it, I feel that this is somewhat karmic, but I digress. However, executives in the financial industry are actually predicting that revenue and profitability will improve in 2010. They recognize the importance of job growth, but I happen to agree that that’s not a sector in which we’ll see significant job growth any time soon. They’ll simply have to hope that jobs in other industries will help restore consumer confidence so people will come to them for loans. Feel free to take a look at it.

On the other hand, the technology industry expects to lead the economic recovery. As somebody who considers himself a nerd (I owned a slide rule at one point and know how to use it), I’m actually delighted by their confidence. I feel that if we’re going to stay competitive, technology is where we need to concentrate. The potential for business solutions makes it an invaluable sector of the economy, streamlining and enhancing all other sectors. That they expect job growth within the industry as well is simply a bonus.

KPMG did a wide range of surveys that seemed to point inexorably in one direction: economic recovery. This despite the best efforts of politicians, the economy will continue to grow due to smart policies and the confidence of the public and business leaders.

In what seems to be a continuing series on how to innovate from within your company, I’d like to talk a little bit about what you can do with the things you’ve found. Sure, that unmarketable gizmo looks a little different now than it did when you originally put it on a shelf, but you still don’t know what to do with it. Maybe, instead of looking outward, look to your left and your right. It’s not only the mass of consumers that can benefit from your work. Other companies can make customers just as easily as any singular person.

Now that you’ve found something to work with, ask yourself, “Is there anybody with a problem that this can solve?” This is not an easy question to ask: by definition it’s not always easy to know what another company’s problems are. However, like with any other product, finding the niche for it to fit into will make it potentially valuable. Marketing your failed product or service around with a smart sales force actually might reveal where those problems are and put you in a position to take advantage of being the first to offer a solution.

Take some time to also consider what five other companies might want your product, either to use or to sell. Do some roleplaying and put yourself in the shoes of people like you, both competitors and non-competitors alike. How might a competitor approach the product differently? How do they generally approach things differently from you? What might somebody in another industry do with this type of service?

By thinking outside of your own company, you’ll find new markets to tap. Commerce doesn’t flow in a straight line from you to the customer. It branches along many roads of which you are a single hub. Consider your connections to the rest of the people in the corporate world and how what doesn’t work for you might be something they want or need.

They’ve been around for several years. Back in 2004 there was a minor craze for ebooks, before that in 2001, and even as far back as 1996 the concept has been floated as a new and exciting enterprise for the digital age. Each time the hype died back down shortly after as obstacles like an ironic public unwillingness to read books on their computers and lack of intuitive measures in e-readers made it infeasible as a format and insoluble as a business. Combine that with the lack of interest in publishing companies to produce high quality ebooks of popular novels, and you have a lot of hype that amounts to very little in terms of an actual industry.

Recently, an ebook distributor called LibreDigital got $15 million in venture capital for second round financing from several different firms. Considering the incredible difficulty in getting funding for business in the floundering world economy, especially from venture capitalists, this speaks volumes for the viability of this company. One must wonder exactly what it is about it that attracted a class of businessmen and women known for very careful investment to this particular company.

My guess would be that many of the hurdles that prevented the ebook fad from taking hold previously are being overcome by expanding technology. 2009 has seen the release of nine new ebook readers (compared to seven total from 2006-2008), seven of which were released between June and now. These portable devices allow for the storage of gigs of books and easy access to all of them, not to mention ease of reading. The advent of devices such as this which are also small and light enough to carry on an airplane (though not for long the way airlines are limiting luggage), mean that ebooks may actually become a profitable enterprise this time around.

There is an old saying in law enforcement: “Follow the money.” This also applies to business. Business trends are often set by what is invested in them, filtering up from the street only when money is infused into marketing and sales. In this case, the money is going into R&D and I suspect soon actual advertising. Either way, watch the ebook business over the rest of the year, especially during the holiday season, for a huge expansion.

Anyone who reads this blog knows that I respect the advance of technology in business. I respect efficiency and I respect cleverness. However, I value responsibility above all of these, and I feel that business has been moving further and further from that.

The newest perpetrator in irresponsible behavior is the New York Stock Exchange and they are doing so with their new facility in New Jersey dedicated to fast trading. For those who don’t know what that is, it’s a new way of using computers to perform potentially thousands of trades every second. However, by its very nature this will do nothing but further destabilize an already very unstable market with tiny trades that make trending absolutely impossible.

Fast trading lends itself well to older trading strategies that will become even easier now, specifically sculpting, which can be incredibly dangerous in an unstable market.

Sculpting is where traders buy and sell incredibly quickly, usually for a profit of only a few cents per share, gaining a quick buck while keeping shares of companies in a perpetual state of flux. This can make it difficult or impossible for legitimate traders to actually purchase or sell shares of a company, preventing the price from settling from one second to the next and unnaturally altering the value of the stock.

The new NYSE hub will contribute to the instability that this kind of trading brings to the market. It has the potential to take an already shaky market still trying to get back on its feet after the crisis less than a year ago and further shudder it to pieces the same way that program trading contributed to the ’87 crash by mindlessly selling at the wrong times, exacerbating the problem. In this case, the problem is quick-money traders looking to manipulate the market in tiny ways that add up very quickly, and a fast trading hub in New Jersey will do nothing but make it possible for this irresponsible behavior to continue.

Affiliate programs are not a new idea. They’ve gained a form of rebirth lately due to the ease with which the internet lends itself to their use, but in the end the idea of rewarding somebody for bringing business to you is as old as business itself. I can easily imagine merchants in ancient Egypt or Greece paying others to support their businesses. It’s neither revolutionary nor particularly risky in most cases as all you have to do is run your business and hope people follow it to your Seller.

While there is money to be made in affiliate marketing, keep in mind that there are pitfalls that you have to watch out for as well. It’s easy to get involved in the excitement of a new business, invest yourself and your time into it, and see small or no returns on your efforts, so pay careful attention to what you’re looking at and how you approach it.

First of all, any article, blog entry, or casual mention of “affiliate marketing” will probably get several comments inviting the author to join their program, that many of them are scams or sound too good to be true, but this one is different and worth trying for a small investment. Let me say now, I’m not interested in joining your affiliate, so please keep any comments to a discussion of the article.

That being said, they are right that a lot of affiliate programs sound too good to be true. They promise quick returns for minimal effort, simply putting a banner ad on your website or posting it on a social networking place. These will often be accompanied by testimonials that prove that with hardly any work you can make remarkable amounts of money. Even if this is true of some people, the odds are heavily against you, and the more a company tries to assure you of the safety of their investment, the less trustworthy they likely are.

It’s also worth noting that affiliate programs are a form of work. You are working for another company to advertise their product, service, website, etc. If you get a job in an office, do you pay your employer for the privilege of working there? Then why should you pay for the honor of being an affiliate to another company? If they’re asking you for an investment of your capital in order to work for them, consider that perhaps they’re not making enough on the click-throughs to otherwise make a profit, so why would you?

The truth is no matter what you become an affiliate for, it’s going to involve hard work like any business. It’s a marketing technique like any other, and the company you’re working for will expect you to spread the word about their company by any effective means. It may be traditional methods like email marketing, SEO, or even display marketing. It might be in the form of reviews or clever blog entries. But the point is that there is no easy money to be had, and it will require effort on your part.

One thing that old timers like me have to realize is that old timers like me are not the future of business. We’d like to pretend that we are, that our ideas will remain fresh forever, that we can continue to think ahead of the curve, but the truth is that our minds get slow, our thoughts fall into ruts, and in the end it’s the young that will innovate the markets, not people like me.

The problem becomes that people like me tend to not trust the young for the very same reasons that they are exactly who we should trust. We feel that they are inexperienced, they lack knowledge of “how things work,” they have no respect for tradition, specifically traditions designed to keep the senior people in power and slow down progress. We worked out way up through this system and don’t see why the next generation can’t as well. The honest reality, however, is that it’s not being a part of a failing, obsolete system that makes them so desirable as employees.

But, as a mock inspirational poster I saw pointed out, “Tradition: Just Because It’s How You’ve Always Done Things, Doesn’t Mean It’s Not Incredibly Stupid.”  The system that was put into place when I and my predecessors were coming up in business is no longer viable to the modern work environment. That has a lot to do with speed. Things simply move too fast today to ask everybody to slow down and wait their turn. This is especially true of ambitious young minds with new ideas and business models to work with.

If you want fresh ideas, it’s time to look to a fresh place, and that means young people. It’s worth the risk that they might replace you one day. In fact, odds are they will. It’s the nature of business, so accept it and succeed while you still can. Take a chance on youth and you’ll often find that they won’t disappoint you.

A quick internet search about “business tips” or “marketing strategies” is almost assured of bringing up the phrase “network marketing.” Some people will wonder what it is, click on the link, and begin immediately to get sucked into an old idea that has been given a new name by enhanced technology.

What is now being called “network marketing” was once known to old-timers like myself as “multi-level marketing” or MLM. Many of you know that among the most successful users of this marketing technique is Amway. I’m not suggesting that Amway is in any way not legitimate, but they ride a very thin line in regards to their marketing strategy. The reason why is that MLM relies not on a person’s ability to sell a product, to make a product, or to provide a service. Rather, it is based primarily on their ability to garner more sales people. The advantages of actual sales are eclipsed by the advantages of selling the company.

The major problem is not in the companies themselves. Nor is it in the business model as a concept, which is basically a form of franchising on a very small scale. The problem comes from people who are not ready to actually participate and a structure that encourages people sales over product sales. People don’t realize that they are getting involved in a business, and that business requires that they treat it like any other business. In another business situation, you wouldn’t focus your efforts on encouraging people to compete with you, so what makes people think this is a viable strategy other than a graded payment structure that lends itself to recruitment?

MLM/Network marketing can be a viable marketing strategy, but the potential for it being nothing but a pyramid or Ponzi scheme is very high. Far too often companies base the profits on sign-up and renewal fees, with very few actual products being sold. This type of business is not sustainable and hurts both its employees and its clients, which happen to be largely the same people. Any business model founded on mindless acquisition of a larger sales force and not on the production of that sales force is highly suspect, and as a consumer and a business person you should be wary of any such model.

Referral marketing is one of the easiet, cheapest, and most effective marketing strategies that a business owner can pursue. That is to say, if it’s done properly. What too many company owners and executivew do is attempt to build good word of mouth by luck alone, and it does require a certain extra amount of work. However, that work can pay off big in terms of customer volume. Most importantly, it’s a system that builds on itself.

The first thing that you should do in a referral marketing campaign is to set yourself a goal such as 10% business growth in the next ten weeks. Make your goal realistic, make sure it’s clear and that there’s a timeline. This will help keep you on track with your efforts and make measuring success easier.

When asking for referrals from current clients, there are several things you should keep in mind. Your timing can be very important in how effective your referral is. Asking for one right after the close of a sale, which is commonly accepted as the time to do so, can come off as aggressive and often results in lukewarm praise at best. Let your customer or client experience your service, do a followup, make sure that they realize that you’re willing to go out of your way to ensure their pleasure with your company. A thank you note is rarely unappreciated, and a subtle reminder to tell a friend if they were pleased can often lead you to a new customer.

Providing rewards for referrals can be an excellent incentive to bring new customers to your business. Is it worth a 10% or even 20% discount for a person if they bring in five new full-paying customers? Can an extra service for a specific period of time balance the introduction of a larger client base? Usually the answer is “yes.” The risk involved in this sort of incentive program is very low and the potential gains from it immense.

Make sure that you’re giving in this process. There are a lot of things almost any business can give away. In fact, when you write your business plans or budgets, plan a little space for extras that you can use either to go a little further for a happy client or calm down and angry one. Some of you are old enough to remember when pediatricians gave out lollypops. If it means a discount at your lawn service, a free sample at your deli, or a small toy for children at almost any business imaginable, then it may be worth it to show your customers and clients that you are not a faceless corporation, but rather an honest, human business owner. This sense of familiarity encourages them to refer friends and fosters trust between you and them.

Small efforts and rewards can go a long way toward drawing in new customers. Very few, if any other marketing strategies can produce the same number of loyal customers and clients as a smart referral campaign. It will require a little extra work on your part, but it’s worth it.

I’ve noticed a disturbing trend in the corporate world of late. As companies grow larger, become multinational conglomerations, push out local businesses, and generally change from a collection of businessmen and women into an entity, they’ve found new, more elaborate ways to divorce themselves from their customers.

I’m sure they all have reasons for this. Some do it in the name of efficiency and progress, arguing that increased computer-assisted help cuts down on hold times for common questions, making it more and more difficult to find an actual person to help you not just over the phone or the internet, but in physical locations as well. A few companies will say that they simply can’t afford to provide the customer service needed for the size that they’ve grown without a huge expenditure of capital. There are even corporations who unabashedly insist that customer service is not important in light of lower prices.

All of these arguments are poor excuses for what is essentially a desire to avoid having to deal with the repercussions of business decisions. I’m not suggesting that huge companies are looking for ways to swindle consumers like the robber barons of the 20s and 30s and get away with it, but rather that it is impossible to please everybody, and any decision a company makes will cause a certain part of their customer base to balk. The time and effort that it takes to address the concerns of customers and clients is by no means miniscule, and one could easily spend all of their time addressing every single concern.

However, the answer is not to develop labrythine systems designed to avoid the problem. The answer is to recognize that every individual problem is separate from the one before and, while offering computer-assisted solutions, make sure that you have a staff of human beings trained to deal with whatever problems may arise. If your company is too large to do this, then your company is too large.

No company, to my knowledge, has found a successful business model that did not, at one point or another, rely on consumers to generate cash flow. The nature of trade is that it is done between people. That’s how it was done when I was growing up and how it will continue to be done. Separating yourself from your customers is a short-term solution that encourages poor service, bad products, and eventually profit loss.

Regardless of how big or small your business is, think in the long term. The money you save cutting corners on customer service will eventually be money you wish you’d have spent.