A few pointers to a trip to Bhutan, the last Shangri-la

In June 2016, I rode to Bhutan from India with 2 friends. During this short trip of 10 days,I compiled a few pointers that might be useful to some one who is planning a trip to Bhutan.

Here we go.... To the Last Shangri-la on earth...

1. Bagdogra (Siliguri), West Bengal is the nearest airport where you can fly to if you intend to take a road entry to Bhutan. The distance from Siliguri to Jaigaon (Indian town at Bhutan-India Border) / Phuentsholing (Bhutan town at the same border) is about 150 kms. Between these 2 towns there is one huge arch with a gate that separates the two countries.

Siliguri to Border town of Jaigaon / Phuentsholing is about 150 Kms or so and takes about 4-5 hours of leisurely drive. The route is Siliguri to Gangtok NH10. take a diversion at Sevoke (about 24-26 kms from Siliguri) to right over the bridge on river Teesta and then it is via Damdim-Mal Bazar - Nagrakatta - Banarhat - Binnaguri - Birpara - Madhya Madarihat - Hasimara - Jaigaon. The roads are good with moderate seasonal traffic and should not be an issue.

If you choose to fly to Bhutan, then you can do so from Delhi / Calcutta ( please check not sure) to Paro International airport. Paro is 55 Kms from capital Thimphu and an hours drive. Paro is also a important tourist destination in Bhutan.

One need not have permit for person or vehicle to travel inside Phuentsholing from Indian side. The Passage is free and no hindrance or checking or stoppage. you can even stay at Phuentsholing if you feel like instead of Jaigaon.

Bhutanese Currency is NGultrum which is equavalent in value to Indian Rupee. that is 100 Ngultrum is equal to Indian Rs. 100.

Hindi is spoken widely in Bhutan and Indian currency is accepted everywhere. so currency and transaction there are no issues.

Now the permits. Please carry either passport or your election ID with 2 No. passport size photos with you.
The immigration office is on the right side after entering Phuentsholing gate. There is a board DRUK HOTEL attached to the immigration building compound wall that cannot be missed. Druk ( meaning Dragon in Bhutanese) hotel is in a lane next to the immigration building.

Bhutan time is 30 minutes ahead of Indian time. So it is prudent to reset your watch 30 minutes ahead as you enter phuentsholing so as to keep yourself in Bhutan time.

The immigration office opens at 9 AM (Indian time is 8:30AM) at the first counter you can request for a form and fill up the basic details like name, father's name, passport / election ID number, purpose of visit, etc and attach your photo and submit at the first counter. ( one form per person to be filled). You will be given a token number and called later. on your token being called proceed to the second counter for biometric ( finger print) check and wait around. some time soon depending on the rush, your token will be called again and you will be handed over the Individual permit.

Kindly do carry a bottle of water / juice and some snacks as it could get tiring and humid in the immigration office.

The person permit at Phuentsholing is valid for 7 days and is valid for passage to Paro and Thimphu only.

If you intend to extend your stay for more than 7 days or if you intend to visit other places such as Phunakha, Bhoomthang, Gangtey, Probjika or Haa Valley you need to obtain a special permit at Thimphu Immigration office ONLY. The special permit at Thimphu is no hassles and you need to attach a copy of your Phuentsholing permit and also mention where you intend to visit.
it is better to put all the places in the intended list ( Phunaka, Bhoomthang, Haa, Probjika etc) as it is free and adding those places will do no harm, but will be useful incase if you have a plan change and intend to visit one of these places.

Police can stop you anywhere on the road and ask you for the permit. If you do not have the permit you will be fined and not allowed to go further. But do not despair. Police are extremely friendly and helpful and generally allow you to pass without fine but a gentle warning not to repeat it next time.

Once you obtain the person permit at Phuentsholing immigration, if you are driving / riding an indian vehicle you need a vehicle permit that can be obtained at RSTA (Road security and Transport Authority) offices at Phuentsholing and Thimphu. RSTA offices are situated at the bus stands of respective towns.

For Vehicle permit you need the following at Phuentsholing.
1. Fill a form ( available at any shop in the bus stand. they will even fill it for you for a small token fee). you need to enter your name, your permit no, vehicle no, your DL details in form. it is a very basic form.
2. Vehicle RC Copy
3. Emission certificate copy
4. Insurance certificate copy
5. Driving license copy
6. Vehicle tax receipt from RTO ( not compulsory)
7. Your individual person permit copy.

so without getting the person permit first you cannot get the vehicle permit.

prepare all the above docs and give it Asst RTO ( a charming and helpful lady) and she asks you to pay the challan. Rs. 70/- per bike in the opposite counter. once the receipt is produced to her, your vehicle permit is given to you on the spot. It is a no hassle easy procedure. do not forget to take a copy of all the above mentioned docs to avoid delay.

The cash counter works from 9AM to 3 PM. so be there latest by 2:30 PM with all the above papers else you could loose a day just for this permit ( we lost a day as we went to the counter at 3:30 and it was closed).

The vehicle permit at Phuentsholing is valid only upto Thimphu and Paro. ( like person permits). you need to extend your vehicle permit at Thimphu RSTA if you intend to go further to Punakha and other places. again it is a hassle free exercise and does not take much time.

Kindly do not attempt to bribe the police or authorities. they are non corrupt as per my experience goes there. be polite, speak in a low tone, smile genuinely and all doors open in Bhutan and all help will be rendered either govt or private 

Once permits are done, proceed to get a Tashi Sim for your mobile for Rs. 200/- the sim is availabe at market road shops opposite to the Immigration building at Phuentsholing. The shop keeper will do the necessary setting for your mobile. so nothing to worry there. Top up can be done at any small villages / town anywhere in Bhutan.

Phuentsholing to Thimphu or Paro is about 175 Kms. The roads are hilly, winding, narrow so it takes about 5-6 hours of your time. If there is a check post enroute, do not forget to get your permit stamped for passage else you may have to pay fine at the next check post. we rode in June end. so it was raining and heavily fogged throughout.

People have divided opinion whether to visit Paro first or Thimphu first. My advise is go to Thimphu. get your Permits extended at Immigration office and RSTA. another reason is you need permit to visit Haa Valley which falls in the Paro circuit. So if you visit Paro first then you may not be able to go to Haa Valley as you may not have special permit in the first place for that. Any police checking and you will be asked to go back to paro from Chelela pass instead of onward passage to Haa Valley.

Always get special permit for all the possible places and also maximum dates. it is free. so if your trip after reaching Thimphu is for additional one week, take special permit for 8-9 days keeping a buffer day or two. it helps to be prepared with such situations.

That's about permit for person and vehicles.

Some names: Llakhang means Temple or place of worship.
Dzong: Fort like structures which are seat of power (Govt offices ) or monastries where children are taught the Buddhist way of life. Festivals are held here on regular intervels.
Chorten: These are Stupas or small rectangular colorful religious structures that you find everywhere including highways, hilltops, valleys and even remote areas. Chorten or Stupas are the oldest Buddhist religious monuments. There are 8 different kinds of Chortens in Buddhism each referring to major events in the life of Buddha. It is rare to see all the 8 Chortens together. One is in Wangduephodrong near the bridge.8 Different type of Stupas or Chortens are The Lotus Blossom Chorten, The Chorten of enlightenment, Chorten of many doors, Chorten of descent from God Realm, Chorten of miracles, Chorten of reconciliation, Chorten of Victory, and Chorten of Nirvana.

Hotels & Stays:
Bhutan ISD code is +975; Bhutan mobile numbers are only 8 digits against 10 digits of India.

the hotels that we stayed in Bhutan.

Hotel 89 in Thimphu is a medium budget hotel. Phone No. +975 - 77 10 00 16. It is opposite Hotel Le Meridian and in the heart of the city. In the main road of Thimphu, Norjim Lam ( Norjim Road. Lam means road in Bhuranese and Norjim Lam is Thimphu's main road albeit it is a one way. Many roads in Thimphu are one way. Keep a watch out for road signs) there is one signal where police man gives hand signals. Take a left at the junction and after 50 mtrs on left is the hotel.

Paro: Hotel Sonam. It is at the end of the Paro town on left towards the Tiger's Nest and Drukgyel Dzong road. Room tariff are about 2-2.5K but negotiable to 1.5-1.8K per night. Rooms are clean and spacious. you can email them at hotelsonamparo@gmail.com. contact number: 17004434 / 08274444 /08275555.

Phunakha: Instead of Punakha, it is advisable to take a room at Lobeysa which is about 10-12 kms before Punakha or at Kingaling about 3 kms from Lobeysa towards Bajo town.
The reason is from Lobeysa it is easy to go to Chimi Llakhang ( you can go on a leisurely trek through lush fields from Lobeysa town to Chimi Llakhang and it will take an hour or so) and to Punakha Dzong via Bajo town the roads are good and more scenic than the regular route. Kingaling Hotel about 3 kms further down Lobeysa town is awesome with room tariff about 1500 for a double room. Kingaling Hotel contact: Mob: 17792625 (Tenzin Wangdag) 17536515 ( Reservation). The supervisor Mr. Karma is an awesome helpful guy there.

The Chimi Llakhang ( temple) is a unique temple of it's kind in the world. It is also known as Fertility temple. In this temple, the priest blesses the visitors with a bow, arrow and a wooden phallus for fertility and long life. The houses around Chimi Llakhang are all painted with huge phallus images.

There is a Bhutan riders club there called Bhutan Dragons and Mr. Tshering & Mr. Thinley Wangchuk are the awesome guys if any assistance is needed ( contact no will be provided on request).

There are lot of hotels in paro and Thimphu but limited in Punakha. So an advance booking at Punakha / Lobeysa/ bajo town / Kingaling is advisable. Punakha comes under Wangdue Phodrang dist.

The roads in Bhutan are generally Ok. while the road from Paro to Thimphu - 55 kms is excellent and can be covered in one hour, most of the places in Bhutan the roads are always winding / climbing /lots of curves and hence the general speed is about 25 Kmph.

Thimphu to Paro is 67 Kms and road is under construction at places and takes about 3 hours ride. Bhutan experiences lots of land slides and you could see slush on the road with warning signs about land slides at many places.

Places to Visit in Thimphu: (Cameras are allowed inside Dzongs and Llakhangs except into the inner sanctum satorum in most places and completely not allowed at Tiger's Nest, Paro (Takhtsang)

1. Buddha Point ( largest Buddha statue in the world known as Kuensel Phodrang or Buddha Dordenma is about 8 kms from City on a hill. The large 160+ feet (52 Mtrs) tall Buddha statue is visible from Thimphu city.
2. The Bhutan National animal is Ta-Kin, a goat antelope. it is a protected animal ( like Tiger in India). there is a Takin reserve to see these beautiful animals.
3. Changanga Llakhang close to the Takin Preserve. Llakhang means Temple in Bhutanese.
4. Then there is the magnificent 350 year old Thimpu Dzong known as Tashichho Dzong. It's near the seat of power ( King's palace) and is open only from.5:30 to 6:30 pm in evening. Dzongs are seat of festivals in Bhutan and these festivals are area wise and seasonal.check out if any festival is happening during your time of visit and plan accordingly. These festivals are absolutely magnificent to watch.
5. Norzim Lam: The main road of Thimphu where you find many hotels and important govt bldgs, A stroll along the road and some shopping gives you a glimpse of everything Bhutanese.
6. The Clock Tower: At the begining of the Norzim Lam (Lam means road) on your right side is an Old Classic Clock Tower with an open amphitheatre like space for strolling and relaxing. The clock tower is an important land mark of Thimphu city. There is a beautiful Llakhang (temple) near the clock tower and colorful prayer wheels too.
7. National Memorial Chorten (Stupa) it is extremely popular and is located about 1 km from Thimphu Bus stand.
8. Coronation Park it is a huge park about 6 acres on Chhogyal Lam (road) on the bank of river Thimphu Chu ( Chu means river). There is a huge Buddha statue in the centre of the park It is a Govt park and entry is free.
9. Changlimithang statium: It is the only stadium in Thimphu and located near bus stand and the coronation park. It is locally centrally in the city.
10. Weekly market / Centenary Market: It is located on Chhogyel Lam and half a km from the coronation park. Market sits once weekly on saturdays and sunday. The market is very huge and very clean and well organised and a sight to see.
11. Dechencholing Palace: It is in the far north of Thimphu city and about 4 kms from Tashichcho Dzong and and was the King's former palace. Entry is not allowed and it is strictyly guarded property. the present King stays at another palace known as Samteling Palace or Royal Cottage close to the Tashichcho Dzong. The present palace is not visible to visitors and is camoflaged by thick bush of trees and is heavily guarded and off limits to tourists.
12. Dechen Phodrang Llakhang: it is a beautiful monastery situated at the end of Gaden Lam (road). This is at a height on a mountain but approachable by road . It is about 4 kms from city centre.
13. Zilukha Nunnery (Thangtong Dewachen Dupthop Nunnery): There is a beautiful Llakhang here and it is a school for girls who are studying to be nuns. it is usually busy with prayers and religious activities and studies.
14. Then there is a Museum, Sentoka Dzong close to Thimphu which are worth visiting.

One awesome place to have lunch is S.P Restaurant, Mothithang Ph: 17584547. It is on the way to the Ta-Kin Reserve and serves awesome tasty food at very affordable rates. and another hotel in heart of Thimphu city that we liked was Ama Restaurant on Norzim Lam very near to the Police Chowki. The entrance to Ama restaurant is a bit downer, but once inside it is a awesome place. Food is great.

Bhutanese Cuisine is different from India. Their staple food is Red rice which is different from our rice and a must try.
Their daily home food are National Dish - Ema Datshi (Tomato, Cheese, Chillies), Keva Datshi ( Potato, cheese, Chilies), Sumo Datshi (Mushroom, Cheese, chillies), Jasha Maru ( Chicken spicy), Fish Maru and Fish Paa. to name a few. Momos are also common here and tastes excellent.Local Drink Ara (arag) is also something to try. Also dont fail to try the local drink SUJA, made of Yak milk and tastes salty.

Both vegetarians and non veggies have ample choices to tickle their taste buds and the portions are adequate too. Rice and Daal with potato curry and vegetable curry are staple food in most of the restaurants. So indians need not miss their home food while in Bhutan. puri & Potato curry, Bread toast, Egg Omlette, Tea, Coffee is available for breakfast in every restaurant.

What time to visit: we rode to Bhutan in last week of June, supposedly the monsoon time there. Their season follows our season. But the rains are not heavy and continuous like in India. It rains, more of a drizzle for max 15 minutes and then it is sunshine again all over. So if you are planning to go in monsoon ( June July Aug) nothing to worry. The sparse rain won't trouble you much.
I was told the best time to see Bhutan in all her glory is from September to December. The monsoon would have been over and flowers bloom all over the valley. Bhoomthang is said to be the most beautiful place in Bhutan and between September to December it is virtually a replica of Switzerland with lush meadows and flowers blooming allover. Even Haa Valley is at it's best during that season. And add to that the chill and fog factor of winter. So September to December is the best time ti visit Bhutan to see her in full glory. March to May summer could be fun, but a bit sunny and harsh relatively. Not much chill or flowery meadows, but suffice for a tourist who intends to check out the usual touristy places. The road from Punakha to Boomthang was said to be under repairs. It is about 200 kms distant from Punakha and as we were riding a motorcycle, the thought of bad, slushy road prevented us to venture to Boomthang. For tourists in 4 wheelers there is no such issue. You can explore all there is in Bhutan.
We chose monsoon June-Aug for our ride as it was off season for my job (marine industry) and also the accommodation were cheaper in Bhutan and monsoon has it's own different charm. The drizzle, the rains, fog, raincoats, slush, flowing rivers and water falls at every turn of road, cool weather did drive us for a monsoon ride through Bhutan. So pick your season. Bhutan anyway is an all season visitable country.

A few more things to add:
1. Men need to wear full sleeve shirt to enter a Dzong and women have to dress conservatively. The authorities can deny you entry into dzong if you are wearing a short sleeve shirt.

2. There are lot of dogs in Bhutan. Mostly they are harmless. Please carry some biscuits in your bag and feed them when ever you find them. Buddha will be happy and bless you.

3. There are some very old people asking for alms on the street of Thimphu. Please provide them what ever you can.

Vehicle Rules: Please adhere to strict road rules of Bhutan. Police are non corrupt and fines are harsh. A left side indicator from the vehicle ahead of you means you can overtake that vehicle. A right side indicator from the vehicle ahead of you indicates YOU SHOULD NOT Overtake the vehicle in front of you.
No overtaking from left, No honking unnecessarily ( but you are encouraged to honk shortly in hair pin bends / blind corners in hilly roads) but in cities no honking. Bikes and cars can be parked at designated parking slots only. The parking attendant charges Rs. 10/- per hour of parking in Thimphu streets. There are large public parking slots incase if your hotel does not have a dedicated parking space. One such public parking space is next to hotel 89, opp to Le Meridian. The attendant charges Rs. 60/- per day.

If you refer a restaurant to a friend, the restaurant does not pay you- Network Marketing perspective

Have you ever seen Shahrukh drive an Hyundai i10? asked my friend.

I replied 'Yes of course. he drives the same red Hyundai i10 daily in my TV'

He persisted 'No No I mean do you really believe Shahrukh drives an i10??'

I quipped 'What Nonsense !!! why would he do that? He probably drives around in a Rolls Royce (which he incidentally owns)

'Ahhh there you are.... Can you see that? He drives around in a Rolls Royce but advertises for an Hyundai i10'

'But Dude. he is using his brand image to promote a product'

'Do you know he gets crores paid for that' my friend persisted.

'Yup.. that is the price to pay for his image and popularity..so what are you trying to tell me?'

'Will you buy a Hyundai i10 just because Shahrukh endorses it?' My friend was unrelenting.

'Nope, I wouldn't' I said and continued .. 'I would rather ask around my friends for their recommendation, then have a test drive the shortlisted cars and then choose one that I liked most'.

'Got You !!!!!!' my friend grinned from ear to ear. 'See there you are...Let me tell you some interesting fact.. More than 90% of what you buy is because your friend recommended it or you asked your friend about it and not from the TV ADs or the hoarding on the road side.. this is called Word of Mouth marketing or referral Marketing'

He went on 'Did you know that word of mouth is a very powerful way to influence a friend to buy certain product more over than the ads in TV because you trust your friend more than Ads in TV or Magazine?.

He had a valid point and I said Yes

He continued ..'My Company works on the same principle of Word of Mouth marketing. We cut down on Marketing and Advertisement expenses as you, Our Customer is our walking talking marketing and advertising :)  We remove Shahrukh from our Business model and pay the amount to you directly( albeit a very tiny fraction by means of commission).
'Now this works like this.. when you buy a product from our company directly through their web portal you bypass the Marketing, Advertisement and Distribution costs and so you get a product at a discounted price. Further when you refer our unique and wonderful products to your friend or family, they will buy it on your trust and word of mouth and you again cut down the Marketing, Advertisement cost to the company and now the company pays you a hefty commission for the same.

I thought 'This is so cool'

then my friend went a little further 'If you like a restaurant and refer it to your friend who visits the restaurant and enjoy the food as well, will the restaurant owner pay you anything ? or if you like a movie and refer it to a friend who goes and enjoys the movie, will the theater owner pay you?'

I said 'No.. never heard anything like that'

'Ahhh... there you see. all the time you have been referring a restaurant or a movie to a friend or family, but neither the restaurant or theater owner bothered to pay you something for the extra business that you bought them. They made money at your cost and did not bother to even acknowledge it or reward you' he started mocking me.

I started thinking ' Yes. if I refer a customer to a restaurant or a movie, I should get paid or should I' I was in a dilemma.. who ever thought all this ...

He said 'This is how our network marketing company pays you. You refer a product to a friend or family the company pays you a commission, then your friend refers the product to his friend then both you and your friend get commissions, then your friend's friend refers to his friend, then you, your friend and his friend gets paid... this is the network you build and you and your downlines will get paid every time when some one further downline (a person under you in your network) buys product. so it is a multiple residual income for which you don't have to work for always. So if you see, word of mouth marketing can bring you a life long residual income'

'This is good' I thought.  my brain was working fast. but then wait a minute. Did you say every time anyone in the downline ( like your friend's friend's friend's friend buying product by word of mouth starting from me) you get paid?

So let us assume that Paradise Hotel in Hyderabad pays Rs. 25/- for every person who refers their Biryani o their friend. Let us work it out. A Chicken Biryani at Paradise Costs Rs. 220/-. Let us assume that the actual production cost is Rs. 70/- and Paradise Keeps a margin of Rs. 150/- per plate of Biryani.

Now I, Ashok, visit Paradise, enjoy the Biryani so much that I refer the restaurant to my friend Benjamin.
So this guy Benjamin visits Paradise and enjoys a Biryani. Now I get paid Rs. 25/- as commission.
Next Benjamin refers the restaurant to his friend Carlos and Carlos visits Paradise and enjoys a Biryani.
Now I get paid Rs. 25/- and Benjamin gets paid Rs. 25/- as referral commission
Next carlos too loves the Biryani and refers his friend Daniel who visits the restaurant to enjoy the Biryani.
Now again I get paid Rs. 25/-, Benjamin gets paid Rs. 25/- and Carlos gets paid Rs. 25/-.
Now the Biryani is so good that Daniel recommends it to his friend Eddie who comes to paradise to enjoy it.
Now. I get paid Rs. 25/-, Benjamin gets paid RS 25/-, Carlos gets paid  Rs. 25/-, Daniel gets paid Rs. 25/- because when Eddie eats his Biryani all above him will get paid referral commission.
Let us take it further.
Eddie refers the Biryani to Felix who visits Paradise to enjoy the Biryani.
Now again I get Rs. 25/-. Benjamin gets paid Rs. 25/-, Carlos gets paid Rs. 25/-, Daniel gets paid Rs. 25/-, Eddie gets paid Rs. 25/-
Let us drag it further.
Felix enjoys it and recommends to George who really relishes the food.
Now again I get paid Rs. 25/-, Benjamin gets paid RS. 25/-, Carlos gets paid Rs. 25/-, Daniel gets paid Rs. 25/-, Eddie gets paid Rs. 25/-, Felix too gets paid Rs. 25/-
so cool every one is enjoying and having a great time and making money.
Wait a min. Let us look at the Paradise owner. when George eats his Biryani, the restaurant owner has shelled out Rs. 150/- as referral commission to all those who referred him.
Now if George refers the wonderful Biryani to his friend, Harry, the restaurant owner has no option but to shut down the shop as he has to dig into his pocket to pay all, forget making any profit at all.

This is an inherent flaw in the network marketing model where every person from bottom to top like George to Felix to Eddie to Daniel to Carlos to Benjamin to me, Ashok gets paid when some where down Harry eats a Biryani. This is handled by putting a cap on payment. but that is another discussion altogether.

So a normal transaction. the profit or commission is made at the most 4-5 levels (distributor, wholesaler,retailer et) or a single profit like a hotelier or a theater owner which any business can sustain.
But any referral commission pay out on recurring basis over and over again ( above 15 steps or more) is a sure recipe for going burst.

And now when you refer your friend a good movie or a restaurant there is no ulterior motive / personal interest ( read financial gain) for you in that recommendation but just that you care and love them and you would want them to have a good time. When there is no such ulterior motive seen in your action, your friends embrace the recommendation fully. They trust you.

Now do the similar referral of a MLM product to a friend of you. As soon as he understands that you stand to gain personally ( financially-referral commission) from this referral, the first seeds of doubt are sown on your very action of referral. From then on it is only the Trust that he carries upon you sees you through to a successful transaction else you stand to loose your friend.

So if someone tries to draw a parallel with the hotel or movie referral where you don't get paid, but for just referring the MLM product, they pay you commission and over that all your downlines who refer the product, you continue getting the referral commission, tell them that there is a basic flaw in their understanding of the whole mechanism and explain them the difference....

and do that over a Biryani at Paradise :)

 

A Seller Sells or A Buyer Buys ??? - A Network Marketing Perspective

In every transaction that occurs on earth there is a product or a service and a seller and a buyer. Now the transaction can be again in 2 ways.

1. A seller sells a product
2. A Buyer buys a product

Both look essentially same….. but look carefully.

In the first instance the seller sells his product irrespective whether the buyer really needs it or not. For example a seller comes to your door step and sells educational books. You don’t really need it, but then he coaxes, pleads, and somehow sells it to you. Now you are not a really happy customer. You will just keep the books inside and forget it.

Second instance you want to buy car of a particular brand and model, you go to showroom to know that the price has increased suddenly and waiting period is 6 months. But still you make the down payment and eagerly await 6 months for the car.

So what is the difference in the above 2? Both were business transactions. In the first instance the seller wants to PUSH or SELL his product irrespective of your need to buy it and hence the value exchange does not happen. The buyer does not see value in the purchase but in the second instance even after waiting for 6 months the buyer is happy coz he PERCEIVES THE VALUE in his product. All transactions are essentially value exchanges where product and money change hands and value is perceived to have received at both ends to their fullest gratification. If this value perception fails at any end, we have an unhappy person there.

In MLM biz, not always but most of the time the buyer does NOT NEED the product such as an overseas vacation for Rs 7 Lakh or an expensive watch costing Rs. 40K as he is not seeking it nor does he perceive any value in the purchase, but with the persistence or perhaps the trust factor, he still goes ahead and buys a product which does not mean much to him and he comes in the 1st category above. This is where the problem starts.

Now, we should note that the product, say a vacation or an expensive watch (unlike the car above) is not his inherent desire to acquire and hence the value is not perceived. But the silver lining is the business opportunity which apparently makes you financially Free.  If this business was as easy and simple as sweet talk and a beautiful presentation, then you would have financially free persons, dime a dozen and BMW’s and Mercedes companies would go into overdrive to satisfy the customer demand.. If you know what I mean

Now that is not how the industry works and our little buyer over a few failed feeble attempts quits the lofty  dream of financial freedom and then starts feeling cheated and product over priced etc.. and over that when he is unable to pursue his friends / relatives to buy the products that they do not actually need ( again he becomes the seller of the 1st type above) and desperation grows and then every person you come across becomes a biz target and eventually the biz fails and so does one looses the money (losing money means he does not see value in the product – for example a man who does never wear a watch buys an expensive watch for Rs. 40k just to get into MLM business, surely he does not see value in that watch right).

THINK…. you buy stuff coz you like it or you need it or you want it, not because somebody else wants you to buy it .

Now what did I say in my earlier post. Network Marketing is basically direct selling a product from manufacturing to end user so that some of the cost saving benefits could be transferred to the end user / customer and one of the basic tenets of this assumption is that the CUSTOMER NEEDS / WANTS the product and he wants it cheaper or more cost effective.

But with a product which one really is NOT looking out for, how can any Network Marketing company claim to be actually saving any cost on product purchase by its customer?  The answer or rather the bonus lies in the business opportunity as the seasoned Network Marketing representative harps more incessantly. More on that some other day.

So this is not direct sales per-se….

Does a Network Marketing model beat supply chain management model?

The other day a friend asked me what is this network marketing? Well this is not so easy to answer in a simple way as straight as the question was fired at me. So I picked one aspect of the biz.

I asked him 'Dude you know how a traditional supply chain management works?' let me explain a bit here.

Let us take the example of a bottle of Coke. Now the cost of manufacturing a bottle of coke could be what, say Rs. 5. To move this coke from the manufacturing plant to your glass at your home, industry follows the MAD process, Marketing, Advertisement and Distribution

Marketing and advertisement is a costly affair and many companies earmark a substantial budget for this endeavor to make their product reach as many end user / customer as possible. and this costs huge money.

Now this bottle of coke passes through the whole supply chain of distributor, stockiest, whole seller, retailer before it reaches the end user i.e. you. Now all the above parties in the supply chain are in business obviously. so they have their individual margin of profit which adds to the cost of coke  Add to it is cost of transportation, cost of cold storage, maintaining inventory as part of distribution process.

So finally you will pay RS. 25/- for the same coke and you are bearing all the cost of the supply chain management all along the way

Fine now what if I say, I shall deliver get you the coke directly from the factory at say Rs. 15/- you save Rs. 10 and I still earn my Rs. 10/-. This is called Direct Sales where a customer /end user benefits from the absence of middle men in terms of reduced price or otherwise he becomes a single point of conduit between the company and the end user for a commission. Now note that in the second scenario the customer still gets the product at a substantially lower price thereby beating the whole supply chain management system.

Now Network marketing company follows the direct selling model whereby the whole hog of MAD is bypassed. So No Marketing cost, No advertisement cost and No distribution cost. How is that?

Marketing and Advertisement is done by word of mouth by the company distributors or independent representatives and the product flows directly from the manufacturing place to the end user.

This is one of the many ways you can have a glimpse of a network marketing. Now let us see how this whole claim by networking industry works.

 If you observe, most of the network marketing companies promote vague /intangible product with less / or no known / established market / product value. The established product value of a known brand of washing machine, Fridge or a Motorcycle is different from a wellness product or an online educational programme. The value of the latter is determined by the promoter as they deem it fit (Of course the actual product value is much less / fraction of the sale value considering the step referral commissions / pay out involved, which can go up to say 13 or 14 steps / levels for example). 

So in the above scenario you see that that  it beats the claim of bypassing the supply chain flat out as the products are in fact priced much higher than they actually are else from where would the company pay out referral commission all the way say up to 13-14 steps / levels.  What I mean to say is if the same product were to be introduced in the market directly using the traditional supply chain management then the cost of the product could be very much much lesser

Now on the lighter side.    Let us assume that you want to buy one of the products of the networking companies but find them too expensive (which they are). Just try eBay. If you are in luck, you could just find someone who has put the  product your are seeking, on the block for a much lesser price than he had bought it, just to ... let us say get it off his back. 

This brings to the question why did he not keep it in the first place..... Well that is for another day to chat.. 

Good Morning Guys

It was a cloudy day with ferocious wind and heavy rain. Myself and a few friends made our way into a small hall where in there already were a motley crowd of about 30 persons with smile on their face and expectations in their eyes. A senior leader, the shepherd had graciously consented to share his knowledge and guide us through with his wisdom.

I greeted a friend with a friendly 'Good Evening' .. and he equally responded with all the jest. 'Good Morning Ashok. Nice to see you' and I just checked my watch. well it was close to 7 PM and by no means a morning unless you are on the other side of the world.

then 'Good Mornings' followed and the senior leader made his appearance with a thunderous 'GOOD MORNING Friends. How are you feeling today?'

I know I know what you guys are thinking :) this is Goa and 7PM is already little late to get high and this sure must be a party going on with rain pouring outside and Whiskey flowing inside the room....Hold on.. the whiskey can wait. we are into a more intoxicating fare here. Aahh welcome to Network Marketing and Yo ... you are in a QNet meet.

So what is this Good Morning all about? I asked my upline not long ago and he said 'Ashok, we are an e-commerce company with global presence and rightly we are on the go 24X7. Every moment some where at some corner of the world, some one is showing a presentation, some one is buying a product. so we always greet our biz partners with a Good Morning nevertheless of the time of the day'.  Aaaah that's it. How cute. what a wonderful to bond and build our brotherhood.

Then I was thinking of my friend in IBM or Toyota or Samsung or an Amazon or EBay for that matter who are a global conglomerate like hundreds of other companies in the world. Never heard any one greet me Good Morning in the night, except when he had downed more pegs than he could sanely manage. I am not implying that these 30 guys in the room were insane.  Imagine you are family n friends having dinner at 9 PM at a restaurant and this QNet guy from the far end shouts ' Hey Ashok. Good Morning' .......shucks !!

But then why? why cant you just be normal and greet the time of the day? why do you want to stand out with something weird? Greetings are what? just greetings. I don't think it implies anything more than an exchange of pleasantries, a matter of courtesy, But taking pleasantry to a different level concocting it with a global biz is something which has tinges of cult following. What has biz to do with a simple greeting I cannot fathom nor I can understand the necessity to warp a pleasant exchange.

My friends mock me at the QNet meeting with a sheepish grin and an Good Morning while I am content with a good afternoon or good evening. then more laughs follow at my defiance for not towing the line. May be my cup is yet full. ( this cup matter we will take up another day).. So as I was saying about inculcating a cultish behavior where in whatever is administered from above has to be followed with no questions asked and propagated downward with vociferous intensity. It also becomes one of the barometers (there are many) to assess your acceptance of the system. I say this because it is not easy for a man to say Good Morning when it is 7 PM in the evening unless you are conditioned to consciously call it out such and that takes some conditioning of the mind and when that happens your free will takes a back seat.

So what am I trying to convey? Nothing much but just a say that a simple greeting can be used as a powerful tool, first to coerce your mind (as it is against the normal) and later as a subtle demonstration to the society that you are different from the office going 'Morons' and within peers that you guys are a team and united in the quest for financial freedom.... Phew... Can a small twisted greeting achieve all this???/

Who knows, this network marketing biz is all about subtle cues leading to hardened views. :)

Time for my dinner now. 'Good Morning Guys' !!!!