For today’s Podcast, Dave Starr and I will be talking about a variety of financial subjects related to living in the Philippines. Basically, we start off the conversation about the Middle Class in the Philippines and how we have seen it grow over the last 20 years or so, and believe me, it is growing!
In addition, we talk about how ex-pats can earn money while living here in the Philippines, and how such earning can be done in a very honest way, without ripping off anybody, or anything else like that. You hear a lot online that it is not possible for a foreigner to earn money living here in the Philippines, but I can say for certain that this is not true. Listen in and see what we have to say on the subject!
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Thanks again for listening, everybody!
Hi Bob, I have just downloaded your latest podcast and currently listening it. And as you've stated in your podcast, where exactly did you get the opening music for this podcast? I dig it, I love it, and I do want it also in my collection of MP3s.
Hi Jio – The name of the song is "The far side of the world" and the singer is Jimmy Buffett. As you look at this page, just look up on the top, just to the right of the text that I wrote about this podcast and you will see an Amazon ad there. If you just click on that ad, you can download the song for 89 cents.
Hey Bob. Just listened to your new podcast and really enjoyed it. The information was great and your guest seemed very knowledgable. Could you respond with a link to your guest's sites which were discussed?
Thank you again for a great source for information.
Bob, Dave,
Good job, that was a very informative podcast. I just took a class on how to do podcasts and we were using Audacity to compose them. I read somewhere that GM will discontinue some of its Onstar service as they switch over to digital service.
The key point that I took from your podcast was for those that live in the Philippines and who don't travel out of the country, this doesn't allow them to see, or anticipate, possible business ideas between countries.
You 2 make a good double act! haha 🙂
keep up the good work its entertaining. I like the bit about the luxury bus reminded me of the bus i took from Manila to Baguio it had seats but not so sure about the brakes!! so i guess it was half luxury 😉
I would like to do some sort of business there(all above board!) but from the guys i have talked to there 99% said it was a not a good idea. Many a pitfall I think. Even if you have a good idea for a business and it becomes sucessful next thing you know people will copy it . I know some foreigners who are very successful there but i think it is probably a very small % of the ones who tried I think the main asset they had was a trusted filipino partner/wife/husband
ps. that song is going to make you rich Bob! haha
Hi Lonnie – Sure, I would be happy to give you links to Dave's blogs:
http://www.philfaqs.com http://www.retiredpay.com
Hi Kevin – Good luck on your Podcast plans! I use Audacity to edit the audio for these Podcasts. For the conversation between Dave and I, it is a Skype call, recorded with PowerGramo software.
Hi graham – Thanks for the nice comment! I do not agree that making money here is difficult. In my experience, it is much easier to make money here than it is in the USA.
very good pod cast. bob did you mention that dave star has his own blog ? what is his site, and how to find it? thanks again.
Hi Jerry – Yes, I linked to Dave's blogs in comment #6.
Hi Bob, Great podcast – very clear sounding. Sorry, you won't get your 9 cents from me – I went to Amazon.com but they won't sell MP3s to me in Europe! 😀
Hi John in Austria – Well, hopefully we will still be able to eat dinner tonight, but that extra 9 cents sure would have come in handy! 😆
I'm glad you enjoyed the show this week!
Enjoyed the podcast, Bob & Dave.
I'd like to add to business opportunites is that one important fact is that the Philippines has a very young & educated population. The 3rd or 4th largest english speaking country in the world and very much tuned in to western pop culture. So that is a HUGE number of young, curious people willing to try out new things or methods. potential clientele.
Case in point, cell phones & text messaging. Even though it is a 3rd world country, RP ranks up there in cell phone ownership & text messaging for over a decade now. You'd be hard pressed to find an American who texts as much (or as fast) as a regular Pinoy. So they will spend as long as it is within their means & is useful to them.
My point is, there is a market for new or innovative businesses there. It's just a matter of reading the market & knowing what fancies them.
It is true that expats or returning pinoys do have an advantage of seeing new approached to doing business there. I was nodding my head when listening to that part of the show.
I am not a natural entrepreneur, but every time I visit Davao, it is hard to switch off the idea light bulb. There are so many things that could work there that have not yet been tried. So many ideas, really. Everywhere I go I keep thinking "this would work here"…But I keep quiet unless asked. I don't want to be that balikbayan know it all.
I can just go back to my thinking of modern cafes in Davao. I always thought it would never fly (it's hot, pricey coffee? the locals prefer nightlife etc — that'll never work!), now there are so many cafes with numerous branches in one tiny city making money using a Starbucks model molded to suit the local taste.
You can just use whatever complaints that is being said about inefficent business methods in the country (and boy, there are a lot — read this site) — and introduce a faster quicker way. I see a young country in need of so many fixes as a huge base of opportunity really.
Lastly, the assumption that you have to line people's pockets in order to make it is false. I look at my own family as proof.
Hi Macky – Every one of your points is right on target! You know, when it comes to being able to do business here or make money, I think of the Philippines as the way the USA was 50 or 100 years ago. A guy without a load of money can get into the game, carve his own niche, etc. I feel that in the USA today, if you want to start your own business, in order to be successful you need to have a bunch of money to get started. It just isn't the case here.
Hi Bob-
Glad you agree. By the way, I wanted to correct myself, I meant the Philippines has the 3rd or 4th largest english speaking population (not country).
I am reminded by a quote from a visiting American cousin (who is now a Lt. serving in Iraq). He kept saying "I'm telling ya, Macky, ice cream parlors, man" everyday when he was in Davao. I cracked up every time he said that. I can't say if that idea would work, but here's a guy who's that typical party going tourist & still could see the potential of the city.
There are so many successful business models that work that haven't been introduced in the Philippines — or outside Manila. Best to beat the competition before they come in because that is inevitable.
glass is always half full, folks.
Hi macky – Hmm…. ice cream parlors! 😯
Hello to all … wow, what nice comments … I didn't even realize coments were open here until my dear wife pointed them out to me.
A couple quick business thoughts … I see many people, not just in this thread, coloring all their thoughts with the '3rd world country' aspect. The RP is '3rd world' in most people's definition, but it is also very dynamic and in many ways more technology oriented than the US .. cellular/wireless technology in the US is still iin the dark ages compared with much of the rest of the world. When thinking about business ideas, get rid of the '3rd world' preconceptions and think norein terms of the basic soundness of the business itself. One thing I have been seeing for years is people who dream about starting a business in the Phuilippines who are not doing anyhting entreprenuerial today. Start a business now, where you are currently planted … the lessons you will learn will translate to the Philippines much more easily thna you think … there is no such thing as "Philippine business" versus "rest of the world business" in my view … if you can start and run a business, you can start and run a business … no matter what country you are in.
Bob also made an interesting point. In one of my latest blog entries I minimized the idea of starting a business physically in the Philippines, but I may have leaned too heavily on getting money from outside the Philippines. there is _plenty_ opportunity here and as Bob mentioned you often do not need as much to get started as you do in the US.
One other thing I have noticed, personally … many Filipinos, even educated and with real-world business experience, believe the news media … they feel their businesses and ideas are inferior because they are '3rd world'. This attitude can be used to great advantage by those who take off their blinders.
Hi Dave – Well said!
Hi Bob, its good to be back supporting your blog, and I know you are going to be calling me soon on skype, you wanted to interview me, well I am waiting Bob ? I am currently listening to you and Dave Starr and enjoying this exciting and innovative way of conveying of information about the Philippines.
Great listening Bob.
Hi Pete – Nice to hear from you! Glad to see you back online. I am sorry I missed calling you, actually to be honest, I forgot! I will do it soon, though, I promise!
Thank you Bob, it was great to hear your voice, you sounded like you are doing your very own talk radio spot, next you will be having us calling in with questions, well i am certainly looking forward to your call, you will find me online most mornings here, (afternoons for you) and in most situations I will be driving around the nation's capital London, so hopefully we will meet up on skype soon.
Hi Pete – I look forward to it!
Interesting podcast guys!!
I live in Cavite and Ive thought long and hard in the past about the luxury bus trip to Manila idea in the past..
Im not convinced it would work.
There are 1000`s of comfortable newish buses passing through every day en route to Manila and in rush hour they are full to the brim with people of all classes and creeds standing in packed isles..Some of them may pay double to sit in comfort during rush..I certainly would!!
However for the rest of the day there are many seats available and the buses here are competing heavily for passengers..
In conclusion it may work fine for morning and evening rush hour( by no means a certainty).
One lesson that I have learned in my years of being here about local business is this.. If you think you can see a gap in the local market,it is usually because it has been tried already..If it was tried and was proved to be successful then there would be a glut of competitors beating it too death.
The bus lines here are already firmly established and if they see one guy with a posh bus taking their customers then the guy may have problems receiving his permits etc etc..
Having said that,I could be completely wrong and the guy ends up with a fleet of these buses within 2 years and becomes a multi PHP millionaire.!
Either way you look at it,Its a huge gamble.
Just my opinion.
Fred.
Hi Fred – Thanks for sharing your observations. It seems that the higher quality bus system is working, according to Dave.
Hi Fred,
Your thoughts are well put, and as a foreigner I certainly agree … in almost all cases I don't recommend foreigners go into Filipino businesses at all … for a number of reasons.
However, comma, the bus entrepreneur I was talking about _is_ making money at it for several years now, so far as I know … yes, an exception to prove a rule.
Just last week I note that one of the 'big guys' … it may be Victory Liner … is promoting a new non-stop service from Cubao(Manila) to Baguio .. only seated passengers, rest room on board, fare about twice the regular aircon fare … and if Victory Liner or one of those big outfits doesn't know how to make money with a bus, who does?
There's an Aussie hotel operator who's made money for years with a dedicated bus from Ermita (Manila) to Angeles City and return … more than twice the regular fare,3 round trips a day, he's made money for years.
Enough about buses, I'm no expert, nor do I recommend them for a business … but I'm using them as an illustration to prove the point that you absolutely _can_ make money in the Philippines if you see a need and fill it, even at a premium price.
One need only look at the difference in cost between a "Burger Machine" franchise and profit potential and a "Burger King" franchise cost and profit potential. Burger King food here costs nearly what B-K costs in the US … it's darn expensive for a Filipino family to drop in and buy burgers for the whole brood … not to mention that burgers aren't really a popular food here, but have you ever been in an SM mall without a B-K franchise? Ever seen one empty?
Hi Dave.. I guess you are referring to the Swagman and its transport services up to Angeles.. The Swagman have been operating since back in the 80`s when they had a really great business model going here..
From memory they would advertise heavily in Australia and ship in the tourists to their hotel in Mabini street and keep them there for no more than 2 days..After which they would put them in a bus and transport them all their Angeles hotel (I think its called the Narra Hotel now?) They were so well established and well known to Aussie,Brit and US tourists that they managed to survive the measures that Mr Lim imposed that part of town in the 90`s…
The Swagman are almost an institution here in Manila and Im not at all surprised at how much they are able to charge for their trips into AC..
Same thing on a far far bigger scale is Burger king..Mc donalds and that one that got away..Jollibee!
Im VERY glad that your friend is doing well with his bus in my district..It would be great if you could find out its timetable and perhaps even a picture of it so that I can recognise it and more importantly USE IT for my trips into town!! I also have quite a few foreign neighbours in this building that would be interested too.
Quote..but I’m using them as an illustration to prove the point that you absolutely _can_ make money in the Philippines if you see a need and fill it, even at a premium price.
I do agree to some extent as we have a small business here that charges a a small premium..This is because our customers are mainly expats that are prepared to pay a little extra for better quality.. We have a couple of Filipino clients(obviously middle-class) but thats all.
I remain highly sceptical and very cautious here these days as you can probably tell.!!
Ive had businesses tank here before which wiped me out financially..
Its a horrible experience and not one Id like to repeat..EVER!! lol.
In regards the Victory liner special to Cubao.. Very nice bus!! We nearly travelled on it to Baguio about a month ago.. Had a waitress on board and a CR ect..Just over PHP600.00 single trip. Unfortunately we had just missed one as we got into the terminal.
These buses do not stop en route and get to Baguio much faster than the normal Victory A/C buses..
This leads me to assume that their turn around (return trips) rates are much faster than their other buses.. Faster trips= faster return fares..
I could be completely wrong..I have been wrong many times before!
Just some thoughts..
Fred.
dear sir
love your pod cass how about som on site seminars on the differant things about makeing money in the phillipens
Hi Michael – Thanks for dropping by! Actually, I have a whole site about how to make money in the Philippines. Check here: Virtual Earner
nice podcast I really enjoy knowing about the philippines. I will be moving there in hopes to meet a girl I met online..But I want to live in Cebu City with her and her family. But the problem I have is that I have $5000 usd saved up, and I told my filipina fiance that thats all I have but she still wants me to move there with her. I am not sure if thats enough to get by while I find a job. I have some college but not a degree so I am not even sure if I can find a job. But my question is what is a middle class income in philippines? And do you think 5,000 is a safe amount to start my life there. she is from a very poor family and she would rather live on the same street as she lives on now so she does not want to be rich or anyhting…and I do not care about the lifestyle change it will be on me, I just want to work hard for our family, but I don't want to make a mistake by going there not perpared. I have asked so many other people what middle class income is and they would not say. I hope you may know. Thank you
Hi terry mccomase – Thanks for visiting my site. I'm glad to know that you enjoyed the podcast! I need to do more podcasts soon, because I am way behind on that! 😳
Honestly speaking, I simply do not feel that $5,000 is going to be enough to start a nice life for yourself here in the Philippines. When I came here, I had $100k, and frankly, I blew through that in about 2 years. I was wasteful and had to learn a lot about how to live here cheaply and also how to earn money here. You don't need 100K to make it here, but 5k is simply not enough, in my opinion.
Find a job? Well, are you willing to work for $3 to $5 per day? That is what kind of wages you will find here. I am not sure what kind of work you do now, but unless you can find some kind of executive position, you are not going to be able to make the kind of money that you are used to, or even what you need to live a decent life. Your best bet would be to be self employed, start up some kind of business of your own, and go from there.
Good luck to you terry, I do hope that you can work it out and make a successful life for yourself here in the Philippines. 😀