E-business and You: The Business of Making Money Online

Apr 29
2010

Several services, podcasts and consultants are dedicated to teaching people how to make money on the net.  Here’s the bottom line: They are taking your money and making money on the net by getting you to pay for their services, podcasts and consulting assistance.  That sounds harsh, and is not meant to be. It’s just a reality check. These e-gurus are making an honest dollar and charging for their expertise. However, in most cases, what they are serving up is how they are making money, not how you can.  It’s no different than when Carlton Sheets sold how to make money in real estate on Info-mercials.

The point is there is no rule to how to make money on the Internet. It’s just like any other business. If you have the right product, service, niche, marketing, and put in the sweat equity, you, too, can foster a business online just as you could offline.  The advantage is that your start-up costs are lower online.  The disadvantage is that it’s hard to cut through the clutter, smoke and mirrors.

Basically, monetizing content (as it’s called) is no different than the older term of e-commerce, except that it refers more to the selling of knowledge rather than products. Louis V. Gerstner, Jr., in his book “Who Says Elephants Can’t Dance? Inside IBM’s Historic Turnaround,” gives IBM credit for inventing the term e-business, which he prefers over e-commerce.

Deep in the book Gerstner writes: “I think for a lot of people, the ‘e’ in e-business came to stand for ‘easy’.  Easy money. Easy success. Easy life.  When you strip it doewn to bare metal, e-business is just business. And real business is serious work.”

That’s why today’s e-trepreneurs will honestly admit that they make $100 from Google Ads, if lucky, a bit more from affiliate marketing if aggressive, and the real money is made by the stars who have made real names for themselves ultimately through old-fashioned books and speaking engagements arising out of blogs, and e-communications.

If you’re not looking to promote yourself, but your business, the Internet is a great marketing tool – a key communication channel for letting people know about your product, service or offering. It never was a get rich quick vehicle.  Few marketing channels are, but each does help build the brand – even if the brand is you.

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Marketing Definitions: The Three A Marketing

Apr 18
2010

Recently I was asked my definition of marketing. I hate the question, even though it’s a very legitimate thing to ask a marketing person.  There are so many definitions and for a field that specializes in making things memorable and compelling, none of the definitions are memorable or compelling.

Finally, I’ve condensed my personal definition into something easier for me to remember.  Marketing, I said, is “Honing the brand and expanding its reach.”  That’s it.  I have longer definitions that deal with company vision, but they get too convoluted.

Bottom line – it’s about honing the brand and expanding reach. Sure, in expanding reach, there should be a way to monetize the brand – if that’s your goal. If you’re running for president, the goal is to motivate votes.  Either way, the goal is to create audience, action, or affection (loyalty).

OK, so the real definition of marketing is that which “hones the brand and expands its reach to create audience, action or affection.”  The Three A’s!

The problem is the definition keeps getting longer and less memorable. I recently completed the audio book “Made to Stick.” I had read it once before, but it’s a great book to revisit for marketing, editorial, educational and advertising types. The book discusses how to make ideas stick from campaign slogans to mathematical formulas.

The key, according to the authors, Chip and Dan Heath, is storytelling. None of us, it turns out, remembers data or love facts. We love and remember stories. But sometimes definitions are required. When your CEO or CFO asks “Why is marketing important,” you need to be able to answer – quickly and succinctly.  Our inability as a discipline to do just that has been just one reason for the demise of many of much needed marketing groups.

In effectively telling company stories, we marketing types frequently fail in one key area. We neglect to tell our own stories – how marketing has functioned as part of solutions. It’s the classic shoemaker’s children going without shoes.  Going forward, as marketing people, one of our key goals must be promoting our own proof of performance. Our performance as well as our very existence on the team is key to a company’s long-term survival.

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Marketing’s Number One Lesson

Dec 06
2009

Q: What do marketing people and therapists have in common?

A: They both deal with insecurities.

Q: Is marketing a discipline that belongs in a business school, communications school, or in the school of social sciences?

A: Yes.

—————–

In his book In Search of the Obvious: The Antidote for Today’s Marketing Mess,” marketing guru Jack Trout states the obvious: “…the human mind tends to be insecure when it comes to purchasing things.” The role of marketing, he argues, is simply to make people feel more secure with a purchasing decision.  It’s also the reason, Trout notes, that a leadership is so important and should be utilized whenever possible in a marketing campaign.

In psychology, he states, it’s called the “herd mentality.” The consumer assumes that others know better and are willing to lessen their psychological risk by following others in the marketplace. If a brand is number one, it must be number one for a reason.

Ironically, many company CEOs, CMOs and Communications VPs get humble when they hold a leadership position. From watching too many Greek Tragedies, they fear corporate Hubris and being toppled from the mountaintop should their position be discovered.

Odd, isn’t it?  Marketing is about helping a company be discovered and differentiating itself in the marketplace to make a consumer’s choice fsst, easy and obvious. Nevertheless, Trout has example after example of companies who go quiet when they are, in fact, number one in their profession.

I’m facing a similar challenge with a current client, who is clearly number one in its field.  Others, with a longer history with the account, emphatically state that the client will not admit in public that they are number one in their industry. They will say the are an industry leader, have the largest network, and make many other claims that imply number one, but will not use the term. “We’re number one!”

In the recent movie Whip It, starring Drew Barrymore, the featured roller derby team consistently comes in Number Two.  They even take up the chant, “We’re number two,” after every game. Roller Derby becomes about “attitude” as is “marketing.”  I won’t tell you the end of the movie. It isn’t a formula and may not be what you expect.

Here’s an interesting fact: Roller Derby is one of three major league sports invented in the U.S.  If you count marketing as a major league sport, perhaps it’s one of four.  However, it’s no secret that there are tons of sports analogies used in business. Perhaps it’s time, we stole a few from Roller Derby.  Attitude Matters and it’s not about just going around in circles.  The goal is to come in first.

Here’s a takeaway from yet another sport – horse racing – not invented in the U.S. You can be a leader and not be number one. You can be a leader in a Win, Place or Show position. You can only be number one in the Winner’s Circle.

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Make Your Business One for Dummies

Jul 23
2009

Is Marketing for Dummies?  I think not even though there is a book by that name.  Tom  Marin, A Reed Business writer for Converting Magazine, started the conversation and it got me thinking.  Marketing is for smart people who understand the need to reach out to customers, understand the market and provide the right mix of business services to be warrant market attention.

I’m not embarrassed to admit that I love “for Dummies” books and have several in my library including one on marketing. Friends made fun of me when I bought the marketing title some time back, but I purchased it for a few reasons:

1. I wanted to see what the Dummies series felt was required in a basic marketing text. I’m sorry to say that it still talks about the 5Ps of marketing — Product, Price, Place, Promotion and People — even though these are no longer valid and generally muddy the marketing discussion into an academic exercise.  Modern marketing talks more about 3 Ps and 5 C’s (but that’s another post entirely).

2. I believe marketing basics remain the same even though we’re in a new Internet world. The basics?  I have to repeat my sentence above — understand the need to reach out to customers, understand the market and provide the right mix of business services to be warrant market attention.

3. There are more than one Marketing for Dummies books including one on Small Business Marketing. Not surprisingly, it is more practical than the more generic Marketing text.  Chapters are devoted to why marketing and sales are not synonymous and the dollar and staffing differences inherent in small business marketing.

4. No one, particularly field experts, should ever think they “know it all.”  Hopefully, an expert is the first to realize that a field is always changing. There’s always something new to learn. When I bought the Dummies book I wanted to check myself.  Was there something in the book I needed to brush up on?  I’m happy to report that the book was very basic and didn’t really have anything of value in it for me — but if you’re a business person and not a marketing person, I can still recommend it.  It’s a great way to get started, and in marketing — it’s important to get started rather than sit still.

Nevertheless, as a marketing person, there is much to learn from the Dummies books. In a nutshell:

A. Branding. When you see a black and yellow cover you know you’re getting a Dummies book.

B. Branding. When you get  Dummies book you know what to expect — basic information to get you started down a specific task be it knitting, web site development, or even writing a marketing plan.

C. Branding. When you fork over your $25 +/- on the cover price, you know you’ll get help in simple English that won’t talk down to you.  You may need professional help over and above the book, but the book gives you the lingo to start to talk to the pros with confidence. It’s a basic roadmap to get you in gear down your latest road of engagement.

Here’s an idea to consider: What if you constructed your business as a business for Dummies?

  • How would you build customer confidence?
  • What could you do to make customers feel comfortable working with you when they are still low on the learning curve?

That’s smart marketing!

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Blankety Blank Marketing

May 30
2009

There’s always a new type of marketing on the horizon.   Here’s a short list of just some of your choices

  • Permission Marketing
  • Guerilla Marketing
  • Duct Tape Marketing
  • Experiential Marketing
  • Integrated Marketing
  • Inspired Marketing
  • Middle Finger Marketing
  • Digimarketing
  • Neuromarketing

And the list could go on.  How can you know which is right for you?  Can you do one and not the other?

Here’s the answer. Don’t get intimidated by the jargon. Most great marketing is based on never-Social network puzzle changing fundamentals, not the least of which include amazing creativity, intuition, risk-taking, knowledge of the market, and a clear understanding of what you have to offer and why it’s wanted and needed.

In fact, most new marketing trends are merely the name of a marketing book that needs selling. Marketing authors represent some of the best marketing minds in the world. It’s why they’re worth reading. It’s also why they realize that a new book better have a catchy new title in order to sell. They know you do judge a book by it’s cover (which includes its title, promise, and creative appeal).

Moral of the story: What do you call what you sell?  If you want to sell your wares to today’s consumers, reconsider what you’re calling what you sell.  Make what you’re selling sound like something the customer wants and needs to buy. It makes the sale that much easier, and positions you that much higher as an innovative company worth the customer’s time and attention.

P.S. Middle finger marketing is a new term floating on the web.  It refers to a writer, Greg Verdino, and his recent experience flying with a branded airline. The experience was less than wonderful and he was somewhat understanding until, once back on the ground he spotted a billboard for the same airline during a taxi ride. Knowing the cost of a billboard ad, he figured  the airline could have likely have had a better ROI if it spent a bit more on great customer service and less on advertising. He dubbed the experience middle finger marketing since he felt that, in the end, it best reflected how the airline felt about him as a customer. Here’s the link to the full story. It’s worth the read.

* abridged with permission from original post on InsideMarketing.org, 5/30/09, Rhona Bronson, NAPL

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Active Tense

Apr 13
2009

Marketing is a verb.  Seth Godin points it out in his book Tribes, but the fact is any dictionary will tell you the same thing.  The point is that, as a verb, marketing is about doing something. 

As with anything in life, action creates reaction.  It's a basic law of physics that also applies to51drpze7irL._SL160_PIsitb-sticker-arrow-dp,TopRight,12,-18_SH30_OU01_AA115_ marketing. Not all marketing gets the reaction you want.  Some seems to fall on totally deaf ears, but in reality, may be softening a final sale. It's what makes marketing maddening.  Sometimes you can't prove beyond a shadow of a doubt what works, but you do know what doesn't.  Doing nothing doesn't work.  

The goal of marketing is to get your company into the customer's conversation zone.  If you're not talked about, considered, or part of the discussion, you're invisible.  That's not a good marketing strategy, and yet it's the summary of most marketing plans in the industry.  

In the days of yore (probably only 10 years ago), marketing was thought to be reserved for big companies with big budgets.  The world has changed, and some of the most effective marketing is not expensive, close to free, does take time and thought, and has flattened access to all companies big and small.  In fact, smaller companies may be able to do modern marketing better. 

"Big budgets may be more of a hindrance than a help for many package-goods brands coming up with ideas that resonate with consumers, " stated Unilever's Chief Marketing Officer Simon Clift at the Advertising Age Digital Conference.  As one of the largest companies in the world, Unilever still has a decent marketing budget, but Clift implied the healthy budget may make it too easy for Unilever's team to fall back on old ways rather than come up with innovative marketing ideas.  Necessity continues to be the mother of invention, and even if your budget is small to nonexistent it doesn't mean your marketing should be as well.  Rather, it means you need to be smarter about how you market, but market you must. 

Full disclosure: I used to work for a Unilever company.  It was a great experience, and probably gave me my first taste of the power and importance of marketing. If there's one thing consumer goods companies don't take for granted, it's marketing.  You shouldn't either.  B:B can learn much from B:C companies, not the least of which is the importance of being front of mind with a consumer, client or prospect long before the sale is made.  

Don't have time or the desire to do a marketing plan?  Just start by asking yourself one simple question: "What do you need to do be more top of mind with your ideal customer?"   Whatever the answer, that is your first marketing action step. Get started today. Remember action creates reaction, so just get moving, or as marketing genius company Nike would advise: "Just do it."

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Thoughtful Leaders

Feb 15
2009

There's been much discussion lately about Charles Darwin, born February 12, 1809, as last week marked what would have been his 200th birthday.  A new book out called Angels and Ages, notes that on that same day, a world apart, Abraham Lincoln was also born. Both men became leaders of their age although in very different fields, and both are still discussed, studied and admired for their thought leadership. 

According to Buckminster Fuller (remember I promised to write more about him in the January post), one attribute of a leader is the ability to anticipate the future.  Similar to Darwin and Lincoln, Fuller was considered ahead of his time.  He saw a future so far out that the rest of us couldn't quite visualize it.  One thing that Fuller, Lincoln and Darwin did in common was to take time (lots of it) to think. For example, Darwin formulated his theories during his famous voyage of the Beagle in 1836. He published notes from that journey in 1838, but his landmark work Origin of Species was not published until 1859, 21 years later!  

In today's world, we all feel time starved.  One of the handicaps for business leaders today is the lack of time to make purposeful and thoughtful decisions. The world is almost moving too fast. Or, is it? Is it possible that we just haven't taken the time to create a strategy, philosophy, or vision about where we want to take our companies? Or, that we've gotten old and tired?

A January 31 Harvard Business Review blog post by leadership author Stewart Friedman discusses the qualities of leadership and he compares great leaders to great musicians. "Leadership is a performing art," he writes. "You can can never be too good at it."  He goes on to explain:

"Great performers devote themselves to increasing their capacity to perform.  It's the same with leaders. The best ones commit to learning continually because they want to make a difference."

In our current youth culture, Stewart Friedman makes a great case for admiring how we can improve with age, especially in terms of leadership.  It's also a good time to go back through the ages and look at our great leaders, many like LIncoln and Darwin, who did not hit their strides until their later years. 
If you're feeling this crisis needs the young, stop and take a deep breath. What it really needs is leadership, thoughtful leadership and experienced leadership.  

It's no coincidence that this year's theme for the upcoming NAPL Top Management Conference is Leadership. As always, it's timely and on target.  I hope you can participate. Another thing I hope you actively participate in is this blog/newsletter.  Please let me know if you feel the topics are on target, feel free to comment on a post, and if you'd like to contribute as an author, I'd welcome a broader voice of thoughts and perspective. Either just write something up you'd like me to post on your behalf, let me know if you'd like to be a more formal guest author, or e-mail me with topics you'd like to see covered. 

~ Rhona Bronson

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Land of the Free

Feb 01
2009

If you think Land of the Free refers to the U.S.A., you are showing your age.  Land of the Free is the Internet.  In the January 31 edition of the WSJ's Weekend Journal, author Chris Anderson wrote a thoughtful piece on "The Economics of Giving it Away."   If I can, I'll post the article on the news section of the group.  I posted a NY Times article there earlier in the month, and if you come across a great news story or other material from your neck of the woods, please try to post it on the news section of the our Linked In group so we can continue to gain from our collective experience. Unfortunately, the news posts get buried quickly so you have to dig a bit to get to older uploads.

The gist of the Anderson WSJ article is that the price of goods and services is continually going down, courtesy of innovation and the Internet.  The question for all businesses — mature and start-ups — is how to make money in an increasingly "free" world. Anderson writes: "It's now time for entrepreneurs to innovate, not just with new products, but new business models."  Easy to write — harder to implement, eh?

Even Microsoft, he writes, is feeling the pinch but is responding by providing free services to a segment of the market in hopes that when they mature to larger companies they will already be loyal to Microsoft branded products.  What does that mean for you?  It means finding a model that allows you to provide something free to provide outreach to potential and future customers.  You can't do free forever, but you can rob a page from the supermarket industry and provide some things as a loss-leader.  If you haven't figured it out yet — here's my dirty little secret – that's where Linked In fits in my NAPL marketing strategy.  Now, I've broken a marketing rule here — don't tell people when  you're marketing to them, but you're the Linked In Group and, by definition, a bit more hip than the rest of the industry so there it is… my secret.

This is why I believe so strongly in NAPL. As an association, we are supported by dues, but much of what we provide is value added or "free."  In January, alone, we sent out six different free e-newsletters (four exclusive to members, two open to the general industry), posted more than a half dozen free blogs, and took on the US Postal service on a proposed new regulation.  That's in addition to our member services, economics research, magazine and events.  If you'd like to subscribe to any of the free newsletters, go to our special request page. If you'd like to sample any of the management blogs (giving you a free sampling of some of the best thinking of our brightest consulting minds) go to NAPL's web site (www.napl.org) and click on the blog links.

This past weekend was the amazing Super Bowl XLIII between Pittsburgh and Arizona.  And, as with all Super Bowls, the commercials are almost as important as the game. In that tradition, I hope you'll indulge me with this mini-commercial for NAPL as a real-life example of how free can play out in today's economy.  For more on this business model, I strongly suggest Seth Godin's book Free Prize Inside. Written in 2004, it again shows why he's ahead of his time. To save you time, here's what it's about: We all loved getting the free prize in the Cracker Jacks box, didn't we?  Studies showed kids wanted the box as much, if not more, for the prize than the Cracker Jacks themselves. People still love to be surprised. So, don't just give what you have away… give it in a way that surprises and delights your audience, and make it part of your business model to turn that audience into paying customers.

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Black Boxes

Sep 07
2008

In preparing for a speech I’m giving on Marketing at GraphExpo, I’m currently reading Wikinomics by Don Tapscott and Anthony Williams. It’s not easy reading, so here’s my confession: I’m actually listening to it on an Ipod while walking the dog. It’s not great, but it’s the kind of book you almost have to be familiar with in this day and age. Here’s one simple phrase I got out of it last night: “The computer is not a box, but a doorway.” It’s a simple look into how the world of computing and marketing has changed.

TV was the original black box and, in many ways, still is. Its one-way communication with advertising that can easily be skipped through the magic of DVRs. When TV first came on the scene, it was a social experience with entire neighborhoods gathered around one set for a Milton Berle show. Today, more sets are watched by just one person. Even children’s programming seems increasingly watched by a child alone rather than a parent and child.

Computers are almost the exact opposite. The computer started out as a solo black box but with the emergence of Web 2.0, is an increasingly social and multi-faceted communication vehicle. Even if you appear alone at the terminal, the odds are you are increasingly interacting with someone.

It’s my hope that this Linked In group won’t be a one-way communication, but that you’ll respond to the occasional post, ask questions on the discussion board, find things of interest from the group that will lead you to other resources and ideas, and make suggestions back to me about what you’d like to see more of from us.

~ Rhona
rbronson@napl.org

P.S. If you’re going to GraphExpo, please stop by the NAPL booth and say hello. Or, better yet, sign up for my seminar on Wed. at 10am. It’s almost the last seminar of the show and although a few hardy souls have signed up, I’m sure I could use the extra company. The time slot is almost as bad as being the first speaker after a large lunch!

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