Counting Happiness

In recent decades, psychologists and biologists have taken up the challenge of studying scientifically what really makes people happy. Is it money, family, genetics or perhaps virtue? The first step is to define what is to be measured. The generally accepted definition of happiness is ‘subjective well-being’. Happiness, according to this view is something I feel inside myself, a sense of either immediate pleasure or long-term contentment with the way my life is going.

Many questionnaires are used in order to correlate happiness with various objective factors. One study might compare a thousand people who earn $100,000 a year with a thousand people who earn $50,000. If the study discovers that the first group has an average subjective well-being level of 8.7, while the latter has an average of only 7.3, the researcher may reasonably conclude that there is a positive correlation between wealth and subjective well-being. To put in simple English, money brings happiness.

One interesting conclusion is that money does indeed bring happiness. But only up to a point and beyond that point it has little significance. For people stuck at the bottom of the economic ladder, more money means greater happiness. If you are an American single mother earning $12,000 a year cleaning houses and you suddenly win $500,000 on the lottery, you will probably experience a significant and long-term surge in your subjective well-being. However, if you are a top executive earning $250,000 a year and you win $1 Million on the lottery, or your company board suddenly decides to double your salary, your surge is likely to last only a few weeks.

Family and community seem to have more impact on your happiness than money and health. People with strong families who live in tight-knit and supportive communities are significantly happier than people whose families are dysfunctional and who have never found a community to be part of.

Happiness does not really depend on objective conditions of wealth, health or even community. Rather, it depends on the correlation between objective conditions and subjective expectations. If you want an iPhone and get an iPhone, you are content. If you want a brand-new Mercedes and get only a second-hand Fiat you feel deprived. This is why winning the lottery has, over time, the same impact on people’s happiness as a debilitating car accident. When things improve, expectations balloon and consequently even dramatic improvements in objective conditions can leave us dissatisfied. When things deteriorate, expectations shrink, and consequently, even a severe illness might leave you pretty much as happy as you were before.

The crucial importance of human expectations has far-reaching implications for understanding the history of happiness. If happiness depended only on objective conditions such as wealth, health and social relations, it would have been relatively easy to investigate its history. The finding that it depends on subjective expectations makes the task of historians far harder. We moderns have an arsenal of tranquillizers and painkillers at our disposal, but our expectations of ease and pleasure and our intolerance of inconvenience and discomfort, have increased to such an extent that we may well suffer from pain more than our ancestors ever did.

Source - Sapiens

IPL 2016 Revenue Stream

The Indian Premier League has amassed about Rs. 2500 crore in overall revenue in its recently concluded ninth season, growing at a double digit pace over the year before. The figure includes revenue that TV and digital channels made from advertisements, as well as teams from sponsorship, ticket sales and merchandising, and BCCI from on-ground sponsorship.

The biggest chunk of revenue came from TVs as advertisers vied to grab ad spots when matches were telecast during the nearly two-month long tournament, which with its fast paced short format has become very popular in this cricket crazy nation. Official broadcaster Sony Pictures Networks India (SPN) made just under Rs 1100 crore while the eight IPL franchises together earned Rs 200-230 crore from Sponsors.

The Board of control for Cricket in India generated Rs 220-250 crore from on-ground sponsorships, whereas Hotstar the digital rights holder got around Rs 40 crore. This season IPL made ticketing revenue of Rs 150-160 crore. India is a market where a lot of new brands are launching. This need to chase salience and eyeballs and IPL viewership has remained rock. IPL is celebrated like a festival that unites once a year and brings families, friends and colleagues together to enjoy the spirit of cricketainment.

IPL has developed many unique skill sets and generated lot of job opportunities that are making a difference to the larger sports and events industry in India. In terms of ticketing revenue, Royal Challengers Bangalore (Rs 25-26 crore), Mumbai Indians (Rs 24-26 crore) and Delhi Daredevils (Rs 22-24 crore) topped the charts, followed by Rising Pune Supergiants (Rs 18-20 crore), Kolkata Knight Riders (Rs 16-18 crore), Sunrisers Hyderabad (Rs 15-16 crore), Gujarat Lions (Rs 14-15 crore) and Kings XI Punjab (Rs 13-14 crore). The BCCI ended up with almost Rs 10 crore in its kitty from ticketing revenue.

IPL is progressively growing at a 10-12% rate year on year. It may not be galloping, but it is definitely not sinking either. It is going in the right direction. Another small revenue stream for the franchises was merchandising, which is estimated to have generated Rs 17-20 crore for the teams put together. While it is hard to put a definite number to it, there is substantial revenue to the broadcaster from the TV channels that are subscription based.

SPN may allocate this revenue, estimated to be anywhere from Rs 250 crore to Rs 400 crore to the three channels – Sony Max, Sony Six, and Sony ESPN, which air IPL. SPN payout to the BCCI of Rs 820 crore per year (the 10 year deal is worth Rs 8200 crore) as well as Franchises fee has not been considered for the estimates. A major chunk of this goes into a central revenue pool, from where it is distributed among the Franchises.

Ways to make Money from Blog

Over the past decade, blog monetization has gained momentum. What was once just a way of making money on the side has now become a full-fledged profession, with various revenue channels opening up. Here are few ways to make Money from Blog.

Google AdSense- Once you sign up for AdSense, you will be allotted ads to place on your blog. After this, it’s a waiting game to see if your account is approved. If it is, you can continue to receive ad placements and earn a steady, if not large, income from it. AdSense pays on the basis of clicks and views the ads receive. The two categories on offer are cost per click (CPC) and cost per 1,000 impressions (CPM), and the ads are allotted based on which category can earn more revenues for a particular blogger.

The CPC rate, for instance, can range from Rs 2 to Rs 50, depending on the niche, content, use of keywords and the traffic you receive. AdSense lets you choose where you want to place the ads on your blog, and pays you when you accrue a certain amount from clicks or views. It is a safe bet because you don’t have to screen the ads for quality or compatibility with your content. Earnings can range from a few hundred to several lakhs of rupees for different bloggers.

Affiliate Marketing- Using your blog to sell or promote another seller’s product can be one of the most profitable avenues, if you can successfully convert readers into buyers. One of the main advantages of this channel is that you will not have to deal with production, shipping and customer care. However, it also requires you to have an audience that trusts your judgment. It works best for niche audiences, especially if you have a good degree of authority in your domain, as well as great salesmanship.

You will earn a percentage of profits made by the seller from the traffic redirected by you blog. You can feature product reviews with relevant links, but too much plugging can annoy readers. It is also important to find a good offer that is credible and rewarding, and the best way to ensure this is to approach a network rather than individual brands or sellers.

Product Sales- You can market your own product by featuring photos and descriptions on your blog. You can either allow your audience to purchase the items directly through your blog or redirect them to an e-commerce portal that stocks them. You can also turn your blog into a membership site, where readers can subscribe to receive personalized services. For instance, if you specialize in handling fiancés, you can allow your audience to sign up to receive specific financial advice tailored to their needs.

Sponsorship- If your blog already attracts a significant amount of traffic, you could choose to enlist blog sponsors. Sponsorship includes selling ad space on your blog to merchants, which offers a more stable source of income. You can charge for hosting banner ads, button or links on either a one-time or a monthly basis. Ads can pay Rs 2000-15000 a month for a 2x2 space, depending on your niche and readership.

Sponsored content which blend seamlessly into your blog prevailing tone and theme can also add to your earnings. The best bet for bloggers who want to monetize is to reach out to companies or wait to be approached. Promotional posts for events or reviews can fetch you anywhere between Rs 3000 and Rs 20000, depending on the sponsor and your popularity. You can also be paid in merchandise or services, if you’re open to the idea.

Ways to find your Niche- If you are looking to start blogging; here are a few things to keep in mind when choosing your niche. Being passionate about your subject matter is crucial to creating good content. Choose a topic you love to write about it, to set yourself apart and to hold the interest of your audience. Being fond of a subject is not enough. You need to evaluate whether you have enough specialization to offer valuable content to your readers.

Like any business venture, blog monetization can only be successful if you offer something that is not easily available elsewhere. Find a gap in the content market and plug it. You must ensure that your blog is one of the top results offered by search engines when people start looking into your niche. Use SEO techniques to help your content show up in search results. For AdSense, use the Google Keyword Planner to find out which keywords rank higher, and try to choose a niche that corresponds with them. This will ultimately yield better revenues.

Measuring Digital Economy

The dramatic rise of the digital economy presents unique challenges to the bean countries who try to measure the size of national economies. Most economic activity was about the production of standard stuff such as wheat or steel. The growing use of modern barter or peer to peer deals in what has been described as the sharing economy?

For example, we use to book airline ticket through a travel agent. Now, airline site allow us to book tickets on our own. The effect is same, but what used to once be a market transaction that involved payment to a travel agent has now become a household activity for which no money is paid. National Income has actually declined even though the underlying transaction is the same.

There is very unique way digital products are priced. They have high fixed costs but zero marginal costs. A software company spends big bucks to write its code. It can replicate this code at zero cost. Or think about a new age music band that can distribute its new album at minimal cost over the Internet despite the initial high costs of recording. The prices of many digital products tend to fall to zero because of their unique economies.

Many business models are designed to create other revenue streams such as advertising since the main product is given away free to build a large customer base. There is again not much agreement on how to capture these changes in national accounts. GDP is the cornerstone of all national economic statistics. It measures how much output is produced in a country in a particular period.

The digital economy presents a new set of challenges. Economists have struggled to understand what the transition from an economy of atoms to an economy of digit actually entails. Most of the emerging debates are not about the productivity effects of digital economy. They are more about how to measure an economy where some important distinctions are getting blurred.