Tuesday, March 5, 2013

Phone Conference Company: Outsourcing Conference Call Services

Phone conference call companies can easily provide outsourced services that can save you a substantial amount of money. In fact, if you spend less than 00 a month on telephone conferencing services, you are way ahead by using the services of a professional conference call company. If you spend more than 00 a month, you can still save by outsourcing, but you should also look at leasing or buying your own conference equipment. It all depends on your usage, what you anticipate your needs will be in the future, and if you want to go to the expense of maintaining the hardware and software.

For businesses and organizations who want to focus on their core mission and responsibilities, and have no interest in getting into their own conference call business, outsourcing is the logical choice. There is stiff competition in the conferencing field which have caused rates to fall. Moreover, there are deals out there that can offer you unlimited conferencing for one low flat rate a month, with no long term contracts.

When shopping for a phone conference company, here are some of the things that should be included in your checklist:

Phone Conference Company: Outsourcing Conference Call Services

1) No long term contract. Don't tie yourself into a contract unless you are absolutely sure that the conference company can offer you high quality and good customer service. Use the service for a couple of months and get a hands on experience using the system.

2) Good customer service. Does someone answer the phone when you call?

3) Testimonials are good. See if their website has comments from customers.

4) A variety of plans and options. Do you want toll free or non-toll free service? Do you want to pay-as-you-go with a per minute account, or use the flat/fixed rate conferencing service? Do you need professional operators on the call to help you manage the conference or to call up the participants and put them into the call for you?

5) No set up fee. Most conference call companies do not require you to pay an upfront cost to set up an account.

Overall, telephone conference call services are saving organizations a substantial amount of money and time by enabling convenient discussions among colleagues and contractors without the need for additional hardware or software. The outsourced conferencing services are easily accessed and participants can schedule meetings over the phone at anytime. Companies, large and small are realizing substantial savings in reducing travel and meeting costs.

Businesses and non-profits can choose from several types of phone conferencing formats and features that can fit any particular budget. The bottom line is that conference services can benefit almost any organization that needs to improve communications within and among internal and external people and groups.

Phone Conference Company: Outsourcing Conference Call Services
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Monday, February 25, 2013

iPhone Marketing Strategy

As with all Apple marketing, the iPhone marketing strategy is very clear, simple and clever. With the plain and simple apple icon, Apple focuses on the pure innovative style of their products without all the "fluff". The iPhone was released by Apple in June, 2007. The ground-breaking style of the iPhone was touted for months before the initial release and has remained the best of the best when it comes to cell phones over the past several years. Before the iPhone's official release, Apple ran four television commercials promoting the new cell phone.

The first of the commercials portrays the new iPhone as the next step up from the popular iPod. The iPod was all the rage up until this point, and the iPhone was supposed to be the next-generation iPod, oh, and it's also a phone! The advertisement displays all of the enhanced features available in the iPod, and more, the point being "There's never been an iPod that can do this."

"So, say you're watching Pirates of the Caribbean"
Finger clicks on video and displays wide screen movie.
"Mmm, did somebody say Calamari?"
Finger clicks back to menu, selects Maps application to search 'Seafood'.
"The closest would be..."
Map displays all seafood locations and highlights location nearest to you.
"Ah!"

iPhone Marketing Strategy

Finger clicks seafood location, and restaurant phone number displayed. iPhone dial's.

The first four iPhone commercials flaunted the convenience, innovation, and usefulness of a single product with the functionality of not only a phone, or a music device, but a product that can, among other things, listen to music, watch videos, view photos, make conference calls, check e-mail, browse the web, and view maps.

Not only does Apple utilize television for their marketing strategy, but they make use of their website by posting videos, they also published a handful of press releases that could have been released in one single document. Apple often uses this tactic to build up hype and leave the consumer wanting more.

With Apple's brief press releases, giving the audience little to go off, "Apple leveraged a law of social physics - news, like nature, abhors a vacuum. In the absence of real information, those who care about a product will grasp at any rumor that comes their way. Apple may publicly disavow the rumor Web sites that scramble for scraps about the companies plans, but secretly their marketing department must be delighted. It would cost a lot to buy that kind of Web advertising." (Silverman, 2007)

The official iPhone website does more than just provide information about the product. The website provides top tips and tricks for the use of an iPhone, as well as a huge focus on apps. Almost the entire iPhone page displays images of apps, provides the "App of the Week," the website also contains sections titled "Apps for Everything," and the "Top Apps." Apple's website is a great marketing tool for current iPhone users and consumers that have an interest in purchasing the iPhone. The promotion of the apps will create a stronger source of revenue for Apple. As customers see top rated applications, they are more likely to download the app, rather than searching through 25,000+ apps to find one that may be of any value to the consumer.

Successful younger men were the target audience that Apple had originally focused on. Apple had hoped that with this target audience, and the fact that 48% of this audience did not already own an Apple iPod, would allow them to reach their forecast of 10 million sales by the end of 2008.

One month prior to the release of the iPhone, Solutions Research Group profiled a cross-section of those aware of the phone. The forecast of potential buyers for the day of the release ranked a majority of T-Mobile customers, AT&T's only GSM-based product competitor, at 15%. The second largest group expected to purchase the new iPhone was AT&T's existing customer base, at 12%. The Solutions Research Group also found that 72% of males, versus 28% of women were most likely to investigate the phone at its minimum price of 9. (Malley, 2007)

The obvious current target audiences for the Apple iPhone include young people between the ages of 20 and 35, affluent teenagers, "jet-setters", and "mobile" employees who work outside of the office.

Apple is known for their simplistic, but catchy commercials. In recent television commercials for the Apple iPhone, "There's an App for that" is the new catch phrase that places a strong focus on the apps available from the App Store. Apps, or applications, are in "every category, from games to business, education to entertainment, finance to health and fitness, productivity to social networking. These applications have been designed to take advantage of iPhone features such as Multi-Touch, the accelerometer, wireless, and GPS" (Apple, 2009). Apple currently claims to have 25,000+ apps available, and counting.

The focus on the variation of apps offered opens up the target audience greatly. There is essentially an app for everyone. As a few of the iPhone commercials advertise, you can find the snow conditions on the mountain, track calories in your lunch, find exactly where you parked your car. You can find a cab in a strange city, find your share of the bill for a table of 5, or learn to fix a wobbly bookshelf. You can read a restaurant review, read an MRI, or just read a regular old book. These are just a few of the features that Apple has promoted through television commercials. iPhone apps provide every functionality that one can imagine.

When the iPhone was initially released, it was priced at a hefty 9. Still, hundreds of thousands of people rushed out to get the new phone, forking over a third as much as they would have had they waited an extra 3 months. 3 months after the initial release, Apple reduced the price of the iPhone to 9. This enraged Apple's loyal customers and consumers who purchased the new phone just months earlier. One year later, Apple again reduced the price of the iPhone to 9, 66% less than the original price.

In July, 2007, the Apple iPhone was all the hype. I believe that Apple's decision to release the phone at 9 was slightly based on greed. However, their product was the most innovative out in the market place, giving Apple the freedom to price the iPhone at whatever they wanted. Many believed that Apple had cut the price after discovering lower than expected iPhone sales. Apple, however, states that the price cut was made "to spur holiday sales and predicted that Apple would meet its stated goal of selling its 1 millionth iPhone by the end of September." (Dalrymple, 2007)

As with the product life cycle of any cell phone or Apple product, including Apple's iPod, prices are often reduced drastically months after the initially release. Tech products are always competing against "the latest and greatest" while maintaining a relevant price in the market place. Had Apple not reduced the price of the iPhone, the customer base would have dwindled quickly as many consumers are unwilling to spend 9 on a cell phone, no matter how many useful features the phone may carry.

As the iPhone remains to be the number one smart phone around, the product continues to grow, increasing size capabilities, increasing the number of applications available, and providing new features that are released through new iterations of the phone, continue to provide a greater value to the iPhone while the pricing remains relevant.

At this time in the product life cycle, Apple continues to release enhanced iterations of the iPhone. With most iPhone users un-willing to purchase a newer version of the iPhone because of price, the target audience for the newer generation phones is new iPhone customers. With Apple's installed base continuing to grow, they have found a way bring in reoccurring revenue from their existing customers through the sales of their application downloads. As more and more people purchase the iPhone, Apple's audience for new customers continues to dwindle. Fortunately for Apple, they have built in another source for revenue that continues throughout the life of the product.

References

(2009). Apple: iPhone. Retrieved April 26, 2009, from Apple

Dalrymple, J (2007, Sep, 11). Lessons learned from the iPhone price cuts. PCWorld, Retrieved Apr 26, 2009, from http://www.pcworld.com/article/137046/lessons_learned_from_the_iphone_price_cuts.html

Silverman, D (2007, Jul, 10). Apple's silence helped the iPhone hype. Chron.com:Computing, Retrieved Apr 26, 2009, from http://www.chron.com/disp/story.mpl/front/4954824.html

Malley, A (2007, Jun, 6). Apple, AT&T neophytes to define iPhone audience - report. AppleInsider, Retrieved Apr 26, 2009, from AppleInsider Website

Mukherjee, A (2007, Feb, 28). iPhone under attack. Business Today, Retrieved Apr 26, 2009, from the business today website

iPhone Marketing Strategy
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Saturday, February 9, 2013

Budget Preparation Guide

Budget preparation is a common affair in most established companies. Most of the time, the preparation procedures and formats are inherited from the predecessors. Giving short time and tight deadline are very common.  Most people who are involved in the budget, were always too engrossed to rush and meet the deadline.

How many people involved really understand the full budget preparation process? I have been preparing budgeting for the last 10 years of my working career. I realised that many of the people who are involved in budgeting, that I met, don't really have a proper training or knowledge of the full budget preparation process.

Therefore, I prepared this guide with an objective to give a better understanding of the budgeting process.  This guide is based on real practice and may differs from organization to organization.

Budget Preparation Guide

Budget Preparation Guide:

Budget templates and schedules may differs from organization to organization. However, most master budgets have two major common components such as the operating budget and the financial budget. From my experience, it is pertinent to have first two years prepared in monthly format and the next three or whatever years in yearly format.

1. Operating budget consists of the following components:

 a. Sales/revenues budget provides the various sources of revenue lines and how they would be achieved.

b. Cost of sales/direct cost budget provides the associated cost directly linked to the various revenue lines.  The difference between the sales/revenues budget and cost of sales/direct cost is the Gross Profit Margin.

c. Operating expenses budget provides the details of the indirect operating cost such staff salary, office rental, printing and stationery, telephone expense and etc. Such expenses normally will be incurred regardless whether there are sales/revenues.

d. Advertising & promotion budget provides the various plans of how the organization is going to promote its business. Example would be the advertisement cost, product promotion cost and etc.

The overall operating budget basically provides a full picture of the business operation and its bottom line.  

2. Financial budget consists of the following components:

a.  Capital budget provides the details of the capital expenditures such as office renovation, hardware investment cost and etc.

b.  Income from operations budget is the end result (bottom line or profitability) of the above operating budget. It can be a cash deficit or contribution from the operating activities.

c.  Cashflow budget provides the funding requirements of the business operations. It consist of the following components:

i.   Cash generated/used in operating activities.
ii.   Cash from/used in investment activities.
iii.  Cash from funding activities.

The financial budget focuses on the financial aspects of the business. It would tell whether the business is cash self sustaining or requires external cash funding from else where.

Budget Preparation Guide
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Thomas Wong

Sunday, February 3, 2013

50 Ideas For Increasing Profits and Cost Reduction

Do you want to know 50 great profit building ideas that you can put to immediate use in your business to increase profits and reduce costs?

If yes, read all these ideas that have been implemented by clients and have benefited them giving their businesses dramatic boost in profitability. Most ideas can be put to action immediately. Each idea has the potential to give you many %points increase in net profits.

Research shows profits increase by 4%-56% and costs reduce by 18%-37% within 2 years using the simple 5 step process called the Profit Maps Model. Usually a 5% reduction in cost is adequate to turnaround most loss making businesses.

50 Ideas For Increasing Profits and Cost Reduction

Businesses can calculate the value of the savings by these 2 simple formulas

If the business made a loss

Total Costs and Expenses = sales + absolute value of net loss +/- income tax = say X

Minimum Savings you will make in 2 years = 5% of X (which was calculated above)

If the business made a profit

Total Costs and Expenses = sales + net profit +/- income tax = say Y

Minimum Savings you will make in 2 years = 5% of Y (which was calculated above)

So how much can you save? Improve your profits by?

Revenue

This category typically contains inflows of resources into the business generated through operations.

Needless to say the profit building process can be used to generate marketing and sales ideas. The following ideas were generated with the objective of increasing revenue with little or no impact on the cost structure.

Revenue Increasing Ideas

1. If your company has facilities located over a multi-geographical area you may be able to rent antenna space to cellular phone companies. Typically these companies will pay for the use of rooftops as a place to erect their antennas. Another option is for billboards as advertising if you occupy a central location with a high visibility building. This enhances your revenue without any additional cost you. The point here is to explore alternative uses for your facilities. Remember they are assets that can be used 24 hours a day, seven days a week. There are numerous opportunities available for increased revenue if you look for them. Training room and function room facilities can be rented out in the evening or weekends. How about spare land or excess slots you own for public car parking?

2. Determine whether your business can market commission and non-commissioned products as add-on sales. Look for opportunities to sell products to your existing customer base at no additional cost. Examples are catalogue sales to airline passengers and the sale of miscellaneous products to credit card customers. You may have the opportunity to do something similar. Your customers have more value than you realise.

3. Is there any additional value in your customer database? Perhaps your business could generate additional revenue by selling the data. Alternatively consider starting a telemarketing department to market another line of products or services. Depending on your business and the nature of your customer base you may have something great here.

4. Explore the advantages of an effective e-strategy including e-commerce, e-business, e- people and e-technology. There is no question that the new opportunities available through the Internet offer new and innovative ways to increase profits and reduce costs. Consult with an expert in this area including a cross-section of your employees and magic will happen.

5. Segment your customers into heavy user and light user categories and determine the difference between these two groups. What needs to be done to generate another sale from both categories? All customers are critical. What can you learn about the different types of customers to determine whether more selling occasions possible? Make the most of these customers; you already have them.

6. Develop retention strategies as well as growth strategies. In today's markets, it is as important to hold on to your existing customer base as it to grow your business. It took you a certain amount of resources to attract your customers: you may want to explore ways to retain a high percentage. What is your cost to acquire a customer? What is your cost to retain a customer? Do your employees know?

7. Continue to look for augmented products and/or services that would add value without adding expense.

8. Explore opportunities to licence or franchise your business products or services for additional market share or penetration

9. Explore merger and acquisition scenarios where efficiencies would be gained for all businesses concerned.

10. Develop a relationship with a long-distance carrier whereby your company will distribute phone cards to your customer base in return for a fee or residual commission.

Salaries

This category typically contains charges associated with

· Management Pay
· Non-management Pay
· Hourly Wages
· Training Labour
· Overtime Pay
· All Other Pay, Wages and Salary items

Cost Saving Ideas

11. Establish a 45 to 60 hour per week work environment among the managers. Cost structures among your competitors are basically similar to your cost structure so you will obtain an advantage because your managers are working more hours. This assumes that your managers are productive. Managers who have responsibility for a workforce of hourly employees are usually at the facility, a retail outlet, restaurant or office at least this amount of time. Sometimes business volume is extremely low at early or closing hours. During the slow hours managers can save substantially by scheduling fewer employees and filling it themselves. In addition to the Labour savings, managers will become more knowledgeable about operations and will find ways to improve customer service, training and operations. I have put this procedure in place in several places. At the beginning there will always be resistance, but once managers get beyond the initial hump things will run smoothly. I also find that certain incentive programmes work well here. Get the manager's incentives based on Labour dollar saved and they come to understand the process.

12. Effectively manage your salary administration programs. Many companies pay lip service to this principle but failed to obtain true levels of success in salary administration and management. To start, make sure you have a salary range for every position in the company. Salaries should be structured so that the midpoint is 100, the minimum is 80% and the maximum is 120%. The basic philosophy is that the candidate should be hired into a position between the minimum and the midpoint on the basis of his or her level of experience. The employees are then moved higher in the range on the basis of performance. This philosophy is based on the premise that mid-point is the amount the position is worth to the company. Employees can obtain an additional 20% through stellar performance. Few employees should be paid over the 120% range. Each job is worth a specific amount to the organisation. If a new hire needs training to become efficient in a particular job, that employee is working at a level below the worth of the position and therefore should be paid at the minimum salary range. When the employee's performance rises at successful completion of training and can perform 100% of the job duties move the employee quickly toward the midpoint of the salary range.

13. Insist that a salary survey be done every year to ensure that you have achieved the desired community position relative to your competition. In this case the competition is those companies that would recruit your employees. You need to make sure that if you survey 10 competitors; you have a salary range higher than 75% of these companies for your key positions and higher than 50% of these companies for lower-level positions. Implementing this strategy will help you reduce turnover and will also ensure that you are not overpaying for positions.

14. Make sure your salary administration program allows for regular salary review. Typically, this is done once a year for salaried employees and every six months for hourly employees. The review should include a performance appraisal form and the employee's performance levels should correspond with established pay increases. In other words, establish the pay for your performance review system.

15. Establish a bell curve of salary increases. Let's say that approximately 8% of your employees are superior performers, 12% are above average, 60% are average, 12% are fair, and 8% are poor. Create a salary increase guideline that mirrors this curve, with the better performing employees receiving higher increases. For example superior employees are given 6% to 7%, above average employees 4% to 5%, average employees 3%, fair employees 2%, and poor employees 0%. This allows the organisation to check and reward performance whilst still meeting its salary increase budget. Obviously, your goal is to continue to train and develop your workforce. Occasionally, low performing employees have to be replaced with those most suited to the position. The Bell curve is just a process to ensure that star performers are recognised and rewarded for their work.

16. Establish the salary increase guideline budget and stick to it. Plan salary increases for the coming year by using the Bell curve mentioned in the above idea. Department managers should budget salary increases for employees assuming that the next year's performance will be at the same level as this year's. Please be aware that some performance ratings will change. There will always be exceptions. This process will help ensure that your organisation will remain within the new salary increase budget.

17. The salary increase guideline budget should be preapproved. When a different rating is submitted during the year, treat it as an exception and make sure to justify it because performances can change- it may go up or down. A strict salary administration program will ensure that budgets are achieved.

18. Establish a training rate for all appropriate positions. This is crucial when your organisation experiences higher levels of turnover during the first and second months of employment. The training rate is lower than the standard pay rate and is applicable only during the training period. Employees are given a raise once the training has been completed satisfactorily. Determine whether the training rate could be established for other positions in the organisation.

19. Where the training rate is not appropriate, establish a probationary rate for the standard 90 day period. This rate is lower than the standard pay rate and is applicable only during the first 90 days of employment. If performance is satisfactory, the employee will receive a raise to the standard pay rate. Determine whether a probationary rate could be established for all positions in the organisation.

20. Develop a labour-management system whereby a computer predicts daily or hourly volume and the amount of labour needs on the basis of seasonality. Most businesses have a trend cycle that can be measured with 15 minute increments. First, you must find a way to get past the notion that your business cannot be tracked this way. There is a pattern to your business. Discovering your business pattern is the first step toward determining how to manage your Labour cost. Management will give you many reasons why the business cannot be tracked. Once you work through all their concerns, you and your team can identify those trend items, aspects of your customer behaviour that, in fact, can be tracked and schedule Labour accordingly.

21. Determine whether your new hires would qualify for the targeted job tax credit program whereby a percentage of training dollars is refunded by the government.

22. Determine whether your organisation would qualify for tax benefits for providing employee childcare services.

23. If your employees handle cash transactions, install software driven cash reconciliation process to save time at shift changes and at closing. This will also reduce cash shortages. This type of procedure also saves time in the cash out process.

24. Constantly look for software modifications that can reduce labour. Seconds saved could also mean dollars earned. Using technology is a natural approach to the whole effort of productivity improvement. If your business has not recently explored this area, effective tools that currently exist may surprise you.

25. Have an industrial engineer evaluate your business in terms of time and motion studies to determine whether additional efficiencies can be achieved in areas where high throughput is important. This approach can still work today. Some managers run their businesses the same way they did 10 or 20 years ago. Time and motion studies can have an impact on cost savings, productivity, customer service, and employee morale.

26. Establish a self-regulating team with the specific responsibility of improving productivity and reducing costs in a particular department or area of the organisation.

27. Develop an incentive to reduce absenteeism. This incentive should be linked to productivity improvement goals and to the availability of the workforce. It should be based on reducing absenteeism from previous period. The incentives could be a vacation bonus based on a 1% reduction in absenteeism

28. Develop a variable pay program whereby management salaries are reduced 5% to 10% across the board and these dollars are set aside into a bonus pool. When there is goal achievement, managers have the potential to earn even higher levels of compensation. However, these dollars will be at risk if managers do not achieve profit objectives. The potential to earn even higher levels of compensation will help sell this item.

29. Controlling your staff turnover is another way to reduce operating costs. Implementing strategies throughout the entire human resources cycle to ensure that all systems, procedures, policies, and practices are tight preventing employees from falling through the cracks. I refer to this as the human resources closed loop. If you think about it you will see that there is a cycle to the human resources process. It starts with recruitment, interviewing, selection and placement and continues to orientation, training, salary administration, performance appraisal, development, promotion, and finally termination. Then the cycle begins again. Make sure that all of the areas mentioned are employee friendly and are designed to retain employees. Identify any areas where improvements would reduce the number of employees leaving.

30. In order to determine where are to place additional controls, measure your labour costs in terms of cost per unit, cost per test, cost per guest check, etc. Breaking your labour costs down to the lowest unit will help you better identify cost saving ideas. It will also make it easier to affect and control.

Other Personnel Costs

This category would typically contains charges associated with

· Applied Payroll Burden
· Superannuation Employers Portion
· Vacation
· Paid Holidays
· Sick Leave
· Bonuses
· Short/Long term disability
· Group medical

Cost Saving Ideas

31. Make sure your company has a program that offers all full-time employees the opportunity to receive a higher salary in lieu of accepting certain benefits (such as medical, dental and life-insurance). Today many employees are being carried on a spouse's plan. Why not let these employees choose a higher salary instead of benefits? As long as salary increases less than the cost of benefits, the company will save money and employees will increase their income.

32. Evaluate the cost of your superannuation administration. There are competitive programs that can reduce administrative costs. A simple evaluation of three different companies will determine whether you have an opportunity to realise savings. Even if you do not want to change the current superannuation administration you may still be able to negotiate better terms by showing your evaluation.

33. Reduce workers compensation insurance by aggressively reducing accidents. Evaluate your workers compensation actual to determine your claims history. Most companies set an actual rate and never re-evaluate them even though their experiences change. Depending on your business you may be surprised at the potential savings here.

34. Using the Internet conduct benefit surveys to comply your cost with those of similar organisations.

35. Challenge third-party providers to reduce administration costs by using the Profit Maps Model and passing those savings along to you.

36. Continue to monitor workers compensation costs and develop action plans to reduce them.

37. Develop a back to work programme that puts injured employees in alternative positions. There are times when injured employees want to remain active in the organisation and appropriate positions are available.

38. Negotiate settlements when long-term workers compensation situations dictate.

39. Eliminate alcohol at all company sponsored activities. This approach can prevent accidents, cut beverage costs at functions and reduce risks.

Communications

This category typically contains charges associated with

· Long-Distance Telephone
· Cellular Phone
· Pagers
· Data lines
· Fax lines

Cost Saving Ideas

40. Authorise a telecommunications consultant to analyse all your communication costs in terms of rates charged, equipment used, and programmes offered, promotions available, usage, cellular phone options, long-distance carrier performance and pricing, fax and security line combinations, past bills, and so on. Structure the contract so that the consultant bills on the basis of percentage of cost saved or refunds received. In this way, there will be no cost to you if the consultant is not successful in improving your bottom line. Review all areas of communication to ferret out these pockets of expense that often go unnoticed. Pagers and cell phones are usually ordered and distributed without the benefit of an organised plan. There are real and meaningful discounts if you shop around.

41. Continue to renegotiate rates and terms with the vendors who provide services. Set up an ongoing procedure for constantly renegotiating rates and terms.

42. Monitor and control your communications cost on the basis of the cost per unit test (guests check, or that like) in order to determine locations for exerting any additional control.

Utilities

In this category typically charges associated are

· Gas and Electricity Usage
· Water

Cost Saving Ideas

43. Authorise a utility consultant to analyse your utility costs. Such consultants would know how to deal effectively with the local public service companies in order to discover advantages or missed opportunities associated with gas and electric services. They should be fully authorised to check existing equipment and records. They should be experienced in developing an index and analyses and creating demand graphs to spot situations where you may have been overcharged. They would also represent your issues to the public utility commission.

44. Pay your consultant on the basis of a percentage of the savings associated with his or her action steps. The typical rate is 25% to 30% of the demonstrated savings and refunds over a specific period of time. There should be no charge if savings are not demonstrated.

45. Take energy conservation action steps including setting thermostats at 72°F. Automatic controls should be put in place to control temperature during off hours.

46. Turn off lights in conference rooms, restrooms and officers when they are not in use.

47. Turn off all lights not related to security at the close of business.

Professional fees

This category typically includes charges associated with professional services such as

· Legal and Human Resources Related Fees
· Proposals (domestic and international)
· Fees for Technical Services
· Other professional fees

Cost saving ideas

48. Talk about fees. If your lawyer does not bring up the subject of fees, you should. Do not be shy. In business, lawyers are free to set their own fees. The best time to discuss is at the beginning of a new legal matter.

49. Try to settle cases rather than litigate.

50. Have lawyers design standard forms you can use in routine transactions.

Conclusion

50 Ideas For Increasing Profits and Cost Reduction
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Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

The more you understand the power of this list, the more you'll realize you must get your hands on all the other ideas to benefit your business. Go to [http://www.profitmaps.com.au] to obtain and use a simple 5 step process that can do this for your business.

As mentioned each idea has the potential to increase your net profit margin by many % points. Research shows profits increase by 4%-56% and costs reduce by 18%-37% within 2 years. Usually a 5% reduction in cost is adequate to turnaround most loss making businesses.

To obtain the maximum benefit and ensure that the actions result in improving your bottom-line you need a structured methodology or a process on an on-going basis such as the 5 step process suggested in profitmaps.com.au.

Contact

Name SKANDA Kumarasingam

Title Business Professional and Facilitator

Organization [http://www.profitmaps.com.au]

Contact Details skandak@profitmaps.com.au

(02) 9960 1916

Wednesday, January 30, 2013

How to Make Free Internet Phone Calls From Your Computer

If you have a computer, a headset, and an internet connection, you can make free PC to PC phone calls to anyone in the world! The only catch is that the person you are calling must also have an active account with the same VoIP service provider, and must be online to get the call. With any VoIP service, "in-network" calling (all callers subscribing to the same carrier) is always free, but most providers require that you pay a small monthly fee which allows you to make "out-of-network" calls as well. Since this article is about making totally FREE internet phone calls, only the VoIP providers that offer 100% free calling will be mentioned.

There are several internet phone service providers that offer PC based phone calling, but only a few do not require a monthly service fee when you register. Because the PC to PC calling service is free, you may have to put up with ads on your dial pad or be limited to a certain call length, but for a free long distance call this is probably acceptable to most people. If you want to make calls to a landline phone, you can do so by paying a low cost per minute (much less than traditional long distance).

So here's how to make free PC to PC phone calls:

How to Make Free Internet Phone Calls From Your Computer

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Since PC to PC calling uses a technology similar to instant messaging, most VoIP provider's software allows you to text message the person you are talking to. Conference calling is also possible - just click on another active user and they can join in the call!

As of this writing, here are some VoIP providers I found that offer free PC to PC internet phone calls with no monthly fees. Because services can change from time to time, make sure you agree with the terms and conditions before creating an account. Skype is the largest and most well known provider with over 190 million downloads to date.

* http://www.skype.com

* http://www.google.com/talk

* http://www.earthlink.net/software/nmfree/onlinecalling

* http://www.voipbuster.com

* http://www.inphonex.com

* http://www.pc-telephone.com/free-phone.htm

As with any software, your computer must meet certain requirements in order for the installation to succeed. As a general rule, your computer should have at minimum a 400 MHz processor, 10 MB of free disk space and 128 MB of RAM. You also need a sound card, and either a headset with microphone or speakers and a microphone. Of course, you need an internet connection as well. Software is available for PC, Mac and Linux platforms. Skype has software for Pocket PC as well.

PC based VoIP will work fine over a dial up connection of at least 33.6 Kbps, but be sure to close all email applications and don't do any web surfing while talking because these processes will degrade performance. For the absolute best internet phone calling experience, broadband is the way to go.

Free software-based PC to PC internet phone service is a great way to "test the waters" if you are interested in trying VoIP before jumping into a paid service. It's also perfect if you're on a tight budget and want to make some free long distance calls. Anyone in the world can use VoIP as long as they have an internet connection; just make sure all your friends and relatives use the same carrier if you want to keep the calls free.

This type of VoIP service is not compatible with 911, so it should not be used as your one and only phone. If you want save a lot of money on your phone bill and use VoIP as your primary phone, consider subscribing to a hardware-based VoIP carrier like Packet8, Vonage, Lingo or Voip.net.

© Copyright 2005, Debbie Jacobsen. All rights reserved.

This article may be used without special permission as long as it remains intact, including live links.

How to Make Free Internet Phone Calls From Your Computer
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For more information on VoIP, visit my blog: Internet Phone Service - The Future is Here!.

Friday, January 25, 2013

The Advantages and Disadvantages of Voice Over Internet Protocol Telephone Service

There's this belief stating that "the very best things in life are free." Exactly how a person might respond to the simple fact that a person may place international calls around the globe free of charge? Sure, apart from the United states of America, you may also call up anybody in Canada, Puerto Rico, and other countries with no additional charge. Assuming you've took advantage of the Voice over internet protocol long-distance telephone service.

It is without a doubt gratifying to note that you've got this great feature however, the simple fact that you could utilize it to communicate with all the people who you treasure in a number of international locations is an extremely valuable thing! This is actually the feature that numerous consumers die for and it is the identical reason that explains why numerous other clients choose to subscribe for these services.

Voice over internet protocol telephone service system will keep individuals in touch even with their changing geographical locations. The only thing that must be done is to take note of the telephone number and presto you could connect through the internet without having additional charges!

The Advantages and Disadvantages of Voice Over Internet Protocol Telephone Service

The Advantages:

Listed here are the most beneficial features that you might appreciate as you acquire the actual service. Take the time to familiarize your self and distinguish the reason why it's a must to test the Voice over internet protocol.

Conferencing has been made easy via VoIP. Internet conferencing is extremely popular particularly among workers and their employers. Where ever both sides are, they're able to clearly communicate with each other. This can be similar to voice or interactive video or even the chat room features. Rather than traveling over to one location, money gets saved with this method.

Voice over internet protocol provides web conferencing at a very inexpensive price. Designed for both the companies and also the individuals, VOIP provides a low-cost alternative to the then conventional teleconferencing using a normal telephone line. If all customers utilize a similar conference call service provider, then a conference may take place clearly and with no extra expense for example.

Again, web conferencing using a traditional setup may well cost way too much in addition to consume a great deal of time. Should you have to think about the financial concerns which may be placed onto you,it's important that you simply consider making use of Voice over internet protocol services.

The best equipment with regard to Web conferencing. In case this is actually a piece of equipment which you must utilize, simply be really certain that every person is actually using the same compatible devices so that the actual calls can transpire efficiently as well as clearly. It is through this which frequent complications along with lost data and interrupted conversation are often avoided.

Disadvantages:

Needless to say, there's simply no such thing which continues to be to be 100 % pure and correct. For each and every good side will come a bad side. Voice over internet protocol service plans are truly remarkable however truth be told there are a several issues that may perhaps lead one to dislike it. To begin with, a power outage will cause phone to fail.

A normal phone can function regardless if there is power or not, but this is impossible with impossible with VoIP. The reason why is that it's connected directly into a cable box which is dependent on a electrical current to be able of work. Another part that often bothers the other users is that of the problem with the quality of the long distance call.

There are many people that are much more willing to admit that Voice over IP telephone service is certainly worthy to try, especially when it comes to saving money. That should really be sufficient to persuade you too and give it a try.All things considered, its Advantages far out weighs its disadvantages.

The Advantages and Disadvantages of Voice Over Internet Protocol Telephone Service
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Wednesday, January 23, 2013

Questions to Ask During a Parent Teacher Conference

Are you looking for a list of questions to ask the teacher during your parent/teacher conference? Here is a list of questions I routinely go over with the teachers during conference time. Look over these questions and modify them according to your needs. If you have any additional questions, ideas or stories, please comment below.

How is my child doing in school? In reading? Math? Science? Social Studies?

What subjects are his strongest? Weakest?

Questions to Ask During a Parent Teacher Conference

How are my child's work habits? Does he/she complete work on time?

Is homework turned in on time?

Does my child need extra help in a particular subject?

What is my child's ability level? Does he/she comfortably work at that level?

Is my student in different classes or groups for different subjects? Which ones? How are the groups determined?

How is my child's behavior?

Does he/she get along well with classmates? Who does my child play with? Is there any child you think might be a good friend for him that he doesn't play with?

Does my child participate in class activities?

Does my child show leadership abilities?

What kinds of tests do you give? What do the tests show about my student's progress? How does my student handle taking tests?

How does my child behave around adults? Is he polite and respectful?

What do you consider my child's best strengths and interests?

How can I help?

If I need to reach you, what is the best way? (E-mail, phone, note.)

During your conference time, if a teacher mentions a behavior or learning issue, listen carefully. Ask questions so you understand if this is a normal behavior or issue that needs a little work or if it is a problem and needs to be watched more closely. If that is the case if any learning disability is a possibility, ask the teacher what the school provides as far as testing. My advice would be not to delay testing if case any issue is present. If the school provides testing, it is better to have that done early rather than late. It will either ease your mind or allow your child the opportunity to learn more and receive help faster.

Questions to Ask During a Parent Teacher Conference
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Cammie's blog site http://www.MomsMaterial.com gives moms ideas they want. She talks about books for kids and moms, party ideas, school, parenting, great gifts ideas and how to look good doing it all.

Sunday, January 20, 2013

5 Benefits of A Call Center to Your Business

Your business is growing and so does your base clientèle. Customers no longer originate from your neighborhood nor in one city only but now spread
across state borders and countries. Your staff experiences heavy influx of telephone calls. The company's phones lines gradually get congested. Customer
transactions suffer because they could not reach your office. As the manager, you know you must implement solutions fast or your business will suffer.

Under these conditions, it's time you switch to call center services.

A call center, equipped with the right call center software, offers the following essential benefits:

5 Benefits of A Call Center to Your Business

1.)ENHANCE CUSTOMER RELATION

Because callers can immediately connect to your office, they can transact business with no more waiting time. It eliminates wasted calls. It gives your
customers quick access to the information they want and thus results in improve relationship with them. And too often, because clients can reach your office
immediately, it enhances their perception of your company. You getter more customers, more deals, more revenues.

2.)IMPROVE EFFICIENCY

A call center allows staff to deal with more customers at any a given time.
Richard Burgess, CEO of a large pharmaceutical company can attest to this. " The rapid growth of our company entails more doctors calling for prescription
drugs and customers asking for product description. Our staff cannot handle this increasing volume of callers. A call center services solved our dilemna.
Now, our personnel can take the growing calls and dispense the necessary services in less time, making customers happy. This translates to greater overall
efficiency."

3.)MINIMIZE EXPENSES
With call center that has the right call center software, the same number of staff will be able to handle more calls. Sarah Danitz, an insurance company
manager, has this to say, " We would have incurred large overhead expenses if we hire additional personnel to handle incoming calls. Instead, we turned to
call center. It satisfactorily meets our demand. And we were able to save money in the long run."
As you can see, you need not hire additional personnel or install extra phone lines to meet caller volumes.

4.)DISPLAY STATISTICS

In an ordinary helpdesk, your office can not track the number of calls you receive each day, how many of these calls were positively resolved, how many
callers turn away,etc. A call center makes these statistics available so you will know measures to take in order to improve your business.
"We didn't take any interests on our calls in the past, " says Michigan-based farm tools company owner Chris Laverdale. " But with a call center giving us
these data, we see some patterns and seek ways for improvement. These call center statistics are really helpful."

5.)BETTER OFFICE COMMUNICATION HANDLING

A call center, aside from handling live calls, can also process emails. In addition, it can handle fax, web-based queries, web-cam conferencing, Instant
Messaging, and other means of communication for the company.
" Our struggling staff could hardly deal with the number of calls we receive, and we hardly have time for incoming emails. A number of deals were lost
because we neglect emails. But now, we know better. Our call center which has an excellent call center software, processes our calls and emails. Now, we
receive favorable business transactions out of these emails."

These are just some of the many benefits your company can enjoy from a call center.

5 Benefits of A Call Center to Your Business
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Janine Fritzgerald is a call center administrator now for 5 years. She began as a call center agent and then worked her way up to the company's corporate hierarchy. She knows about call center software. She is a Psychology graduate with Business Administration as secondary course. She lectures on call center management. She is also prolific writer. Her first book, “The Real Deal on Call Centers” is a sell out. Janine lives in Connecticut with her husband and two kids.

Thursday, January 17, 2013

Face-to-Face Communication - Old Fashioned? Not!

It's unbelievable how dependent we've become as a society on electronic communication devices! E-mail, text messaging, PDA's, cell phones, video conferencing, blackberries, blueberries, rasberries, and more...have taken the place of good old fashioned, face-to-face communication leading to many interpersonal difficulties and miscommunications in today's workplace.

You may be thinking...Why improve my interpersonal skills when most businesses do 99% of communication by telephone, teleconferencing, videoconferencing, e-mail, and on rare occasions, snail mail. A popular way of thinking today...but, is it really the correct way? "Face-to-face communication remains the most powerful human interaction," says Kathleen Begley, Ed.D., author of Face-to-Face Communication, Making Human Connections in a Technology-Driven World. "As wonderful as electronic devices are, they can never fully replace the intimacy and immediacy of people conversing in the same room and it has worked for millions of years."

In business, we talk about "B2B" (business to business) and "B2C" (business to consumer) methods. I try to buck the trend (in a positive way!) to stress the importance of face-to-face communication. You'll hear me talk a lot about the "P2P" (people-to-people) connections and how important it is to get beyond technology and talk face-to-face with friends, family, colleagues, customers, vendors, and the like. You may think that's a bit old-fashioned, but in my opinion, there is no substitution for the human, up-close and personal contact. Don't get me wrong, there is a place for the terrific technology tools we have today and I use it regularly, but it's not always my first or best choice.

Face-to-Face Communication - Old Fashioned? Not!

Several decades ago, John Naisbitt, in his mega 1960's best-seller, Megatrends: Ten New Directions Transforming Our Lives, brought a new concept to the forefront called "high tech, high touch." His idea was that "as human beings became capable of anonymous electronic communication, they would concurrently need more close-up personal interaction." Seems to me that he was right on target!

We live in a society when flocking to the local coffee shop or diner for coffee chats with business associates or friends is a testimony to our need for human togetherness, especially when most coffee lovers can make a latte or cappuccino right in their homes. Think about the fortunes coffee establishments are making on our need for face-to-face communication! The people-to-people connections...

We hear of the many children (and adults) who spend countless hours alone playing video games. However, The Game Manufacturing Association reported in 2003 that family board game sales (like Monopoly and Scrabble) are booming and growing at 20% per year. Cranium has recently come out with a whole new line of board games for our "little people" (ages 3+). The people-to-people connections start at an early age - if you haven't heard it, ask me to tell you my "Papa Zitto" story!

Even when disaster strikes and the news media bring these events into our homes and workplaces via TV, radio and the Internet, we seek out opportunities to share grief. I personally waited in line for almost three hours with hundreds of others to visit Ground Zero in New York when it opened to the public in December 2001. Many people also left makeshift shrines nearby to honor the victims of that tragedy. The people-to-people connections...

We lead hectic, multi-tasking lives both at home and in the workplace these days and we find the need for balance even more critical than in days gone by. We understand that technology can be impersonal, but it's quick! We know we need to make time for more people-to-people connections but, the reality of the hectic pace doesn't leave us much time for this more intimate form of communication. You may be thinking, isn't it much faster to make a quick phone call, send a brief e-mail, or hook up via video-conferencing to have a meeting of the minds? Yes and no. It's a communications paradox...faster is not always better.

So the better question may be, how can we make the best of both worlds - technology and face-to-face, people-to-people connections?

Just as fashions are redesigned and come back with a variation on a style from days-gone- by, I believe it is time for redesigning and revitalizing face-to-face (P2P) communication skills.

We need to get the balance right! People-to-people (P2P) communication skills remain one of the primary success factors in business, even in this age of technology. There are many situations - often those involving conflict, hurt feelings, high priority, or a large sum of money - that demand business people take the time and trouble to get in the same room to share information. Video-conferencing has become a good simulation and cost-effective method when individuals are in remote locations, but there is still no substitute for good, old-fashioned, face-to-face communication.

Don't take my word for it...Let's take a look at what some of the experts are saying.

Tom Peters, internationally known business guru, says without reservation that you should constantly attend to your face-to-face communication. Not to do so, will lead to career disaster. "We believe in high tech, high touch," Peters writes. "No question, technology is the Great Enabler. But, paradoxically, now the human bit is more, not less, important than ever before."

Sheila Hodge, author of Global Smarts: The Art of Communicating and Deal Making Anywhere in the World, says "The modern office is full of gadgets - computers and the Internet, uplinks and downlinks, videoconferencing, and online databases. Many people think they should let the fancy technology handle the messy task of interfacing with people."

Jo-Ellan Dimitrius, in her book Reading People, talks about how young, technically oriented employees tend to communicate mostly in computer chat rooms. "If you want to become a better communicator, you must make a conscious effort to engage other people (in person)," she writes. "Even the most entrenched Internet junkie can learn the true meaning of 'chat' if the desire is there, but you have to get off the couch and make it happen."

Gary McClain and Deborah Romaine in their book, The Everything Managing People Book, put it this way..."Consistent, daily face-to-face communication promotes more than just good feelings; it also promotes effective and collaborative teamwork."

"One of the most critical areas of communication to get right in business is the one-on-one situations - especially offering advice, constructive feedback, and annual performance appraisals," says Chris Roebuck in Effective Communication.

One of my favorite quotes stated very simply by Margaret Wheatley, Turning to One Another: Simple Conversations to Restore Hope for the Future, says "I can believe we can change the world if we start talking to one another again."

Sounds like we're on to something here...So, what can you do? Start out by taking an honest look at your communication methods and your attitude about technology vs. (P2P) face-to-face interaction. Are you e-mailing more and meeting less for financial reasons? Are you avoiding human contact mostly because of a lack of interpersonal skills? If the latter is true, you need to take action before it's too late.

The next time you are tempted to send an e-mail, text message or make a phone call for other than routine purposes, stop! Get back to basics. Go out of your comfort zone and, instead, send the e-mail, text message or make the call to set up a face-to-face, in person meeting with the person behind the technology! Why? Because it works!

Make the people-to-people connections... You and your business will be glad you did!

A Positive Workplace Means Business! TM

Face-to-Face Communication - Old Fashioned? Not!
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Mary Jane (MJ) Paris, Founder and President of Positive Impact Consulting Services, LLC in Shelton, CT, brings a broad base of experience to her practice gained from more than 25 years in people management, sales, retail banking, training, recruiting, coaching, project management, event planning and community leadership.

With a focus on "The Positive Workplace," MJ and Positive Impact specialize in leadership and professional development programs, speaking engagements, and small business coaching that bring "Positive Energy" to your workplace. Engage employees, maximize productivity, improve customer service and business results...

mj@posimpact.net
203-929-6702
http://www.posimpact.net

Friday, January 4, 2013

How Skype Works

Skype is a software application that allows you to make free phone calls to more than 75 million people worldwide, and shockingly cheap calls to practically everywhere else on Earth! As a result of that, Skype has become the fastest growing service in the history of the Internet. Recently, the company was acquired by eBay, another step forward towards achieving the final goal of making Skype the world's largest communication company.

Skype is easy to install and use. It allows its users to make crystal clear calls, regardless of their location, send instant messages, switch seamlessly between text and voice communication, make video calls, conference calls, transfer files, call landlines and cell phones for a fraction of the cost of a traditional call. Skype is truly making a revolution in the way we communicate.

But how does it actually work? This article focuses on describing the Skype network and the technology behind it.

How Skype Works

Skype is a type of peer-to-peer Voice-Over-IP client, based on the Kazaa file sharing program. The developers of Skype claim that it provides better voice quality than similar applications like MSN and Yahoo Messenger. It also encrypts calls end-to-end.

There are two types of machines in the Skype network - ordinary host (Skype Client) and Super Node (SN). An ordinary host is the computer of a regular user who has the application installed and connects to the network in order to communicate with other users. The Super Nodes are the end-point of ordinary hosts in the network. In other words, ordinary hosts connect to the Super Nodes. Any computer with a public IP and proper hardware configuration can be a SN. An ordinary host must connect to a super node and must register itself with the Skype login server for a successful login. The Skype login server is the only central unit in the whole network. It stores the usernames and respective passwords of all Skype users. Nslookups have shown that this server is located in Denmark. All Super Nodes connect to the login server in attempt to verify the username password of the client. It stores your Skype Name, your e-mail address, and an encrypted representation of your password.

If you are a regular Skype user, then your computer is considered an 'ordinary host' that connects to a Super Node. The Super Nodes are servers, located in different parts of the world. But your Skype client, must know to which SN it has to connect. Therefore, every Skype client (SC) maintains a local table that contains the IPs and corresponding ports of Super Nodes. This is called a host cache and it stored in the Windows Registry of the given SC. So basically, every time you load up Skype, it reads the date from the host cache, takes the first IP and port from there and tries to connect to this SN. If the connection fails for some reason (the SN is offline; it is no longer part of the network, etc) then it reads the next line from the table. In case it fails to connect to any of the IPs listed, the Skype returns a login error upon start-up. Hence, the host cache must contain at least one valid entry in order for the application to connect to the network and work properly. Valid entry means an IP address and port number of an online Super Node. The path to the table in the Windows Registry is HKEY_CURRENT_USER / SOFTWARE / SKYPE / PHONE / LIB / CONNECTION / HOSTCACHE. You can verify that on your computer by opening the Start menu, then click Run and enter 'regedit', without the dashes. Of course, the exact path could be different in the next versions of the application.

As a concept, Super Nodes were introduced in the third-generation P2P networks. They allow improved search performance, reduced file-transfer latency, network scalability, and the ability to resume interrupted downloads and simultaneously download segments of one file from multiple peers. Basically, they help ordinary hosts connect to each other and guide efficiently the encrypted network traffic.

Super Nodes are also responsible for the 'Global Indexing'. This technology enables you to search for other users in the network. The company guarantees that it will find a user if he has registered and has logged in during the last 72 hours.

A very interesting moment about the Skype network is that it 'self-modifiable'. If you have the application installed, your computer may turn into a Super Node, without you even knowing it, because those capabilities don't have a noticeable impact on a computer's performance. SNs basically store the addresses of up to several hundred Skype users, without carrying any voice, text or file-transfer data. In that manner, the more Skype users come online, the more supernodes become available to expand the capacity of the network.

Skype routes the traffic intelligently by choosing the optimum data transfer path. Since it uses either TCP or UDP protocol, it breaks the whole data stream into separate packets, which can take different paths to the end destination. The final arrangement is done at the receiving end.

As far as safety and privacy are concerned, Skype uses Advanced Encryption Standard, known as Rijndel, used also by the U.S. Government organizations to protect sensitive data. Skype uses 256-bit encryption.

The programmers of Skype have implemented wideband codecs which allows it to maintain a good sound quality at a bandwidth of 32kb/s and allow frequencies between 5-8,000Hz to pass trough.

Your list of contacts, the application stores in the Windows Registry. This is called the Buddy list and once again, it is digitally encrypted. So, the list is local for every machine, or in other words, it's not downloaded from the central server.

Let's briefly describe the tasks of the Skype client. First it connects to the network. It then listens on particular ports for incoming calls, refreshes the host cache table, uses wideband codecs, maintains the buddy list, encrypts messages and determines if there is a firewall or not.

The login process:

The login process is the most important one and it consists of several phases. As mentioned, SC must connect to a valid SN in order to authenticate the username and password with the Central Server.

Skype gets the fist IP from the host cache, sends it a UDP packet and waits for response. If there is no response after 5 seconds, it sends a TCP packet to the same IP. It tries to establish a TCP connection to the HC IP address and port 80 (HTTP port). If still unsuccessful, it tried to connect to IP address and port 443 (HTTPS port). If this does not work either, it reads the next address in the HC. If Skype is unable to connect to a SN, it will report a login failure.

The application comes with several build-in addresses of different nodes, called bootstrap super nodes.

If the connection attempt is successful, the client must authenticate the user name and password with the Skype login server, which holds all user names and passwords and makes sure they are unique across the whole network. When the application connects to an SN, it receives an up-to-date list of other active SNs, so it has the most current information.

The Media Transfer process:

The video/voice communication through Skype is established through UDP. The trick here is that quite often, one of the users is behind a firewall or a router, hence it doesn't have a real IP address. But if both Skype clients are on real IPs, then the media traffic flows directly between them over UDP. The size of the voice packet is 67 bytes, which is actually the size of UDP payload. One second conversation results in roughly 140 voice packets being exchanged both ways, or 3-16 kilobytes/s.

If one of the callee or both of them do not have a public IP, then they send voice traffic to another online Skype node over UDP or TCP. The developers of Skype have preferred to use UDP for voice transmission as much as possible.

An interesting fact is that even if both sides are not speaking, voice packets will still be flowing between them. The purpose of these so called 'silent packages' is to keep the connection alive.

Conclusion:

There are several factors responsible for the success of Skype. First of all, the voice quality is better compared to other applications. It works without a problem on computers with firewall. It is very easy to install and use. Skype's security is also a big advantage. Everything that is being transferred across the network is being encrypted to ensure privacy. As a result of that, even if hackers intercept the data being transferred, they won't be able to decode it.

The Skype application does not include any adware or spyware. But, there are cases when third parties have managed to add such functionalities (not only for Skype), so it's really important that you download it from the right place. Therefore, do it either from the official website, or from respected sites as http://www.freesecuredownloads.com/skype/index.html.

How Skype Works
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