Bootstrapping Basics

September 28, 2009 by swgordon

Startups face many challenges.  Here are some tips to help you avoid the common pitfalls of starting a company.

Serve Your Customers
Customers are the lifeblood of any business.  Serve your customers, and the rest will fall into line easily.

Time Is Your Enemy
Your cash is running out.  Your competition is getting stronger.  Your customers are growing impatient.  There is only one way to handle these problems … get to market quickly.

Think Small
Far too often we want to dominate the world.  Better to focus on dominating main street first.  Don’t worry – the world will be waiting for you to take it over.

Forget Perfection
Being a perfectionist is fine, unless it gets in the way of getting your product / service to market.

Sell What You Can
Is your product or service not ready for market.  Sell something else!  Nothing motivates a team (and investors) like a steady stream of revenues.

Use Flex Teams
Labor and rent are two of the largest expenses your startup will face.  Conserve your cash by using flex teams.  Properly managed, contractors can serve a specific need, then be transitioned out until their skills are needed again, saving you labor costs.  This method reduces the amount of space you’ll need, and your rental costs.

Make It Easy For Them !!!

September 20, 2009 by swgordon

I recently saw this ad for Yoplaits “Save Lids to Save Lives” Campaign.   A throwback to the box-top drives of the 70’s, Yoplait donates 10 cents for every pink lid you mail in by December 31st.

yoplait giving campaign
The key to developing a successful campaign is to make it easy for the end user.  It you make them jump through too many hoops, well … they won’t.   People are creatures of habit.  We don’t like to be pushed outside of our comfort zones, especially by marketers.

As marketers, we need to align our campaigns with the behaviors of our target market.   Think incremental tweeks that deliver the desired results, not full blown changes in behavior.

In the example above, Yoplait (in an online ad) wants me to collect tops and mail them in.  Let’s break this down:

I have to:

  • Go to the store
  • Purchase Yoplait.  Not just any Yoplait, the one with the pink lid.
  • Eat the Yoplait.
  • Save the lid
  • Clean the lid
  • Buy a stamp ($0.44 USD)
  • Get an envelope ($0.05 USD)
  • Fill out the envelope
  • Mail the lid back to Yoplait, and trust that they get it

In exchange, Yoplait will:

  • donate $0.10 to the Susan G. Komen Foundation

The value of my time and the Yoplait aside, wouldn’t it be cheaper for me to just donate $0.49  (the estimated cost of the envelope and the stamp) to the Susan G. Komen Foundation ?

A better idea would be to just print a unique code on the inside top of ALL Yoplait lids (why limit it to just the pink ones?), and allow me to enter that code in the Yoplait website.  Yoplait could then provide me with tools that would allow me to support the cause in other ways (aside from purchasing Yoplait).  Just off the top of my head, they could offer social networking tools, email templates, fund raising kits, awareness literature, etc.  All the while delivering targeted advertising for Yoplait.

That would be much easier than the campaign they’ve launched, not to mention much more likely to succeed.

One quick note – let me say that I like the creativity of the featured tips of this campaign.  Yoplait is doing the thinking  – giving the reader ideas on how they can easily contribute, and achieve the goal.  The easier the action, the more likely it is that they’ll do it!

The 10 Core Values Your Company Needs

September 12, 2009 by swgordon

Some of you may have seen the article I wrote about Zappos for VegasChatter.com .

One of the main concepts that stuck with me after I walked away from the Zappos experience was their 10 Core Values. Just to refresh your memory (in case you haven’t memorized them), they are:

  1. Deliver WOW Through Service
  2. Embrace and Drive Change
  3. Create Fun and A Little Weirdness
  4. Be Adventurous, Creative, and Open-Minded
  5. Pursue Growth & Learning
  6. Build Open & Honest Relationships With Communication
  7. Build a Positive Team and Family Spirit
  8. Do More With Less
  9. Be Passionate & Determined
  10. Be Humble

Having been a key member of many a tech company, I recognize these 10 core values as crucial to launching and sustaining any company.  They address the “deal killers” that bring down even the strongest of companies.

To be successful, you must  focus on the customer.  Deliver service beyond the customer’s expectations.

You must also recognize that change is good. Be prepared for, embrace, and do your part to create it.  Keep an open mind to new things, and explore them.  Bad ideas are only the precursor to good ones.

Do more with less.  I really can’t put this any better.  Be faster and more efficient than your competitors.

And most important, be humble.  The humble person is always striving for to improve themselves.  The egomaniac thinks they’ve already reached the top.

I even like the name. “Core Values”. When I hear that, I think simplicity. I think basic. I think that above all else, these are the things that we hold true.

If you happen to find yourself in Las Vegas, I highly recommend that you take a tour of Zappos.  These tours are offered Monday through Thursday three times a day, and are free.  Zappos will even come pick you up at your hotel.

You may not find everything that they do at Zappos applicable to your company, but you’ll surely walk away with something that will make your team better, stronger, and more competitive – and maybe happier too.

The Power Of The Controversial Facebook Post

September 9, 2009 by swgordon

Even with all of the social networking marketing tools and strategies that are available to you, it isn’t easy to generate buzz.  Ironically, the increased adoption of social marketing tools such as Twitter, Facebook, MySpace, etc. have arguably created more noise, and made it more difficult for you to stand out from the crowd.

There is certainly no “silver bullet” when it comes to buzz creation.  Those that consistently generate buzz – that generate enormous traffic and position themselves centrally in relevant topics – use countless marketing strategies and tools.

One of them is the controversial post.

Here’s an example of one:

Facebook TeaserAs you can see, the post is controverisal.  It is polarizing.  It is a challenge.  And, intelligently design to deflect criticism towards the original author  with the disclaimer that reads : “So says this old …” .

It also effectively teases the reader into digging deeper.  Even if you don’t agree with the original statement, if you’re anything like me your at least a little bit curious about the post.  What does the original author really say?  I want to know more – even moreso that someone who might agree with the statement.

Creating buzz through controversial content is a great way to keep your brand top of mind.  But it must be handled carefully.  Otherwise, you could end up alienating the audience you’re looking to engage.

Web Enabled Mobile Devices Increase Importance Of RSS Feeds

August 29, 2009 by swgordon

The recent explosion of web enabled mobile devices has increased the importance of comprehensive RSS Feeds for all of your products available for online purchase.

Web enabled mobile devices now allow shoppers to check product pricing from anywhere, including inside brick and mortar locations.

Mobile devices such as the IPhone, MyTouch, and other android enabled devices offer the additional functionality of bar code scanning.  By simply taking a photo of a product’s bar code, a shopper can compare product prices and availability online.

The newly empowered mobile shopper increases the importance of including comprehensive product and pricing information online, through web sites and RSS Feeds.  The more data you provide, the more likely your products will rank highly when a shopper searches for alternative sources for a particular product.

This can be most effectively accomplished through in depth search engine optimization, and by syndicating your product data via RSS Feeds.

Avoiding Bait & Switch Through Planning

August 25, 2009 by swgordon

I have long been a proponent of the Free To Paid model of software subscription sales.  For those unfamiliar with this model, you offer a free product coupled with value added upgrades available for a reasonable fee (usually charged either monthly or yearly).

The Free To Paid models offers the best of both worlds when it comes to customer acquisition, retention, and monetization.  Users are offered a reasonable set of features for free, and are gently but persistently encouraged to upgrade their memberships to receive even more value.  Paid members who wish to cancel their memberships can usually be encouraged to maintain the free membership, which maintains your active user count (critical to investment valuation) and offers you the opportunity to re-upsell them to a paid membership.

Developing a successful Free To Paid subscription program takes planning.  You want to give away enough to make your service enticing, but not so much that you lose the value of upgrading the membership.  Once you’ve given away a feature, it is extremely difficult to charge for it without creating consumer animosity.

Plaxo recently encountered this when they removed their data sync feature from their free membership program, and made it available only to those who have upgraded to the Paid Premium membership.  To be fair, they did give some notice to the users, in this case 9 days.  And they offered a 20% loyalty discount to those who upgraded to the premium membership.

plaxo upgrade bait and switch

But even a few days notice can leave a bad taste in the mouths of consumers who have grown accustomed to using a feature or set of features for free.

plaxo2

Modifying the product / feature offerings for various levels of membership (free or otherwise) is a process that all subscription software companies face at one time or another.  How you manage this process can mean the difference between success and failure in the court of public opinion.

Aside from not offering these features for free in the first place, there are many things Plaxo should have done differently in this situation.

  • Rather than removing these features from the free membership, Plaxo should have looked to add more value-added features that would make the paid Premium membership more appealing.  For instance, the ability to schedule syncs times.
  • Instead of removing the Sync feature all together, Plaxo should have opted for a one-a-month sync option for free members.  Or perhaps only allow 100 contacts to sync at any one time.
  • Alternatively, Plaxo could offer free members sync options only at specific times of the day.  Not an ideal solution, but certainly better than removing the functionality entirely.
  • Ad based software is very common, and accepted, for free memberships.  Providing an ad with a call to action (Would you like to learn more about this offer?  [YES]  [NO]  ).

You can always add more functionality to a membership, but removing it is extremely difficult without risking a “bait and switch” syndrome from your loyal userbase.  Proper planning is essential when developing any subscription based revenue model, especially those that rely on the Free To Paid model.

Twitter User Stats

August 10, 2009 by swgordon

Twitter is the fastest growing social network, positioning itself to quickly be the largest social network – far larger than Facebook, Myspace, Orkut, etc.

Twitter can attribute part of this massive growth to their open API, which allows developers to integrate Twitter functionality into their web services.

But who exactly is “tweeting” ?  It turns out that 75% of all tweets come from 5% of twitter users.  And 32% of these users are bots – systems which use Twitter’s API to send automated tweets based upon certain activities.

Sysomos has conducted an interesting study on Twitter usage:

http://sysomos.com/insidetwitter/mostactiveusers

On a side note, we’ve successfully integrated Twitter into several web services, delivering pre-configured updates based upon activities such as adding events to a website, or approving the release of new content.   We’re quickly finding Twitter to be a powerful tool for local search engine optimization.

Key Steps To Local Search Engine Optimization

August 5, 2009 by swgordon

Search engine optimization – the fuzzy art of ranking your website at the top of search engine queries -  is the one of the most important elements of online marketing.

I’ve often said that there are three levels of SEO practitioners; those that are novices, those that know enough to be dangerous, and experts.

SEOMOZ has brought together experts in the field of Search Engine Optimization for their thoughts on what works, and what doesn’t with regards to Local Search.

Local Search is fairly self explanatory – it is the ranking of your site for localized search engine queries.  For quite some time I have found Local Search a powerful way to drive traffic to your site, in part due to the “Long Tail” effect where longer, more specific searches drive more relevant, targeted traffic to your website.

http://www.seomoz.org/article/search-ranking-factors

Dissecting A Guerrilla Online Marketing Campaign

July 30, 2009 by swgordon

Facebook provides highly targeted advertising opportunities, allowing the advertisers to deliver ads specific to a web visitor’’s demographics.  This goes beyond geographic information, and includes the web visitor’s likes, dislikes, and interests.

I was recently shown a guerilla marketing campaign on Facebook, and thought that it was worthy of further discussion.

Here is the ad the was displayed.  Notice how it doesn’t overtly “sell” anything, but rather uses both photos and text to pique the reader’s interest.  The ad offers to deliver value to reader, if the reader simply clicks on the ad to read more.  The reader is just a click away from learning how to go from a pale, beer drinking geek to a tanned, “ripped”, stud … in just four weeks.  Naturally, I clicked on the ad.


The ad linked to a website.  In this case, the ad linked to a weight loss diary website.  Notice that the URL hides two variables, presumably allowing the online marketer to track the ad and the keywords that drove the click.

This is a technique that is used in dynamic landing pages.  With dynamic landing pages, the landing page changes based upon variables passed through the URL.

Here is the landing page for this campaign.  As you can see, this landing page does not look like an ad.  The online marketer has used the movie “300″ and a personal story in their online marketing efforts.  They have focused on delivering value to the user, in the form of a “how-to” guide on getting fit.  This includes specific instructions, and more before and after photos.

Notice the step by step plan, that suggests that the reader take two products within specific instructions to get a ripped as the characters in the movie “300″.   The online marketer offers discounts through the use of discount codes.  Discount codes are an effective strategy to encourage the web visitor to take action (by purchasing), and also allow the seller of the product to accurately give the referring website an affiliate commission for the sale of the product.  Each coupon code is unique to each affiliate and discount amount.  For example, let’s say a seller is offering a 50% commission on the sale of a widget.  A discount code of  ‘ABC123′ can translated to a 10% discount referred by affiliate Jane Doe, where Jane Doe gets a commission of 40% (50% – 10%).   Discount code ‘ACD321′ can translated to a %15 discount referred by affiliate John Smith, where John Smith gets a commission of 35% (50% – 15%).

The purchaser is only aware that they are receiving a discount, not that the seller is tracking the sale for the affiliate through the discount code, nor that the affiliate is getting a commission dependent upon the amount of the discount.

The transactions are also tracked by affiliate code on the links, so that if the web visitor doesn’t use a discount code, the affiliate still receives a commission.

The techniques we’ve discussed here can be used with most any online marketing campaign.  Delivering content of value to the reader, creating dynamic content based upon the campaign, tracking transactions using multiple points (discount codes, URLs, etc.), offering discount codes, etc. are all key techniques in online marketing – especially with regards to guerilla marketing.

Online Influence

July 13, 2009 by swgordon

I recently saw this post from Internet Icon Justine Ezarik, which exemplifies the power of online influence.  Justine reaches out to millions of fans through various online channels. Justine is a true online influencer.  When she speaks, people listen.  Which is why posts like this can be so damaging to a company’s online brand.

justine

Actively participating in the online conversation surrounding your corporate brand is more important than ever.  This allows you to control the bad (and re-enforce the positive) discussions about your company.  There are numerous online tools which make this process manageable,  automating the ongoing tasks that can make online brand management arduous.