roi Archives by Mark Murnahan

What 40 Years Have Taught Me About Marketing

I turned forty today. I’m happy about it, too. It doesn’t really feel like forty quite yet, but I’ve done it! I have lived long enough to have some well-earned gray hair, and a good amount of wisdom that comes with it. For such a young guy, of course.

My forty years have come with a lot of lessons. Having spent well over half of those years as a marketing professional and business owner, I’ve learned a lot about marketing. I’ve shared large volumes of my experiences here on the Internet, and I feel great to say that I’ve helped a lot of people with that experience.

One of the things I learned about marketing is the value of brevity. Keep it short. Keep it easy. Don’t get too confusing with all of your wordiness. I learned it, and then I threw it out the window for the purpose of this blog. Brevity matters when you are selling something, but I am not. If you can embrace some blatant verbosity today, I’ll reward you with some valuable real life marketing lessons.

Did you get that? It’s my birthday, but I’m trying to give you a gift. I guess that’s lesson one. When you give more, you receive more, and it’s an important principle of marketing. It’s a principle that is far beyond most people’s patience threshold, but to the ones who get it, it is invaluable.

I’ve shared a lot of helpful principles and practices of marketing on this blog. Much of it comes directly from things I learned through decades in the marketing profession. I feel good about that, and I know I’ve made an impact. I’ve helped a lot of people reach their goals, both business and personal. I plan to continue that work, but in a different way.

The Announcement That Changed My Life: Sayonara Mediocrity

At forty years old, I decided it is time to change things up. I intended to be fully retired by now, and a few years ago, I was actually well-prepared for it. I had plans to race cars full time, and my work was going to focus only on things I love. My bank is not as big as it used to be after somebody screwed up the world’s economy, so I’m still working. That should not keep me from pursuing the work I love, so I’m doing it … I’m making one of those scary changes I’ve encouraged so many others to make.

As I announced a few weeks ago, I stopped taking new clients (of course, that is unless somebody with really big goals and a ginormous budget comes calling). It’s very liberating. Now I feel even more free than ever if I need to call somebody out for being an apathetic bonehead. I’m also inspired to believe that if I tell you something, you’ll feel confident there is not an underhanded agenda just to sucker you out of your hard-earned money.

A challenging fact of marketing is that the best marketing consultants will never receive as much benefit as the client. It’s why many independent marketing consultants have their own products or services to market, outside of the marketing industry. The best marketers know that marketing is an investment rather than wasted money, and that if they build their own business, they will always be paid far more than by boosting a client’s return on investment.

Sometimes clients will find themselves skeptical about who receives the greatest benefits, but it is the client and not the marketing consultant. I explained this in an article titled “Find Good SEO: Why Good SEO Don’t Seek Your Business“. Being regularly at odds with that inherent negativity and skepticism in the market is why I’m changing things up and creating some significant career moves. No, it’s not because I’m not good at it … I’m just ready to move on to something more positive and inspiring.

Today, more than ever, I hope you will listen up and take some good direction. Give this gritty old marketing guy a chance to help shape your perceptions and understanding of marketing. I serve some pretty good food for thought about marketing, and many easily actionable tasks that you can put to use in minutes. In fact, here are six ways to improve search engine ranking in under one hour. There’s one caveat: they are only useful if you use them.

I have no reason nor desire to lie to you or mislead you, and I cannot recall a time when I intentionally misled anybody about marketing. So slow down and stop worrying about the next thing to click.

Velocity is Great in a Market, But Sometimes You Must Slow Down

Rushing around the Internet looking for the next bit of marketing enlightenment is not where you really want to find yourself in another 15 minutes or half hour … or three months … or next year. That’s what everybody else is doing, and if you think searching the web and looking for the next bottle to rub and hoping a genie will pop out is a better option, you’re likely to get pretty average results.

Settle down and look for the greater benefits. A mathematical fact of the online marketing space is that an average result is abysmal. It’s true! Most companies really stink at reaching an online market, and never get much out of it. I find that it is very often because they don’t slow down – breathe – get some oxygen in their brains and pay attention. They don’t pay attention to their market, and they don’t pay attention to things that can help them to reach their market more effectively. They are often all mouth and no ears, and rushing too hard to get things right that they get it all wrong. That’s them, and I hope you will make the choice to not be one of them.

Honesty in Marketing: It’s Not All Evil!

Marketing is often viewed with a sizable dose of skepticism. If somebody will gain from it, there is a frequent perception that somebody also loses. It’s not true, but this skeptical belief often hurts people in their own marketing, based on how they view marketing as a whole. If I am introduced to something as a result of marketing, and I trade my money because I wanted it, did somebody automatically lose? I got the thing I wanted, and the company marketing to me got what they wanted.

Yes, there are a lot of dirty scoundrels who will lie to you about marketing, but in the big picture, dishonest companies just don’t make it very long. It reminds me of a principle I implemented to create one of my most successful business endeavors, and it was a single word. It came to me when I asked my wife and business partner to summarize what made us stand out from the crowd, and what made us better than the competition. She said “It’s easy, Mark. It all comes down to a single word … Integrity.” That moment will never leave me, and it has provided me a great amount of success.

Marketing Wisdom: It Only Appears Simple

Even today it feels strange and almost surreal to say that I’ve been in marketing for 25 years … but I have. I was raised into marketing, and I was sitting in boardrooms offering my opinions from the time I was a teenager. I started my first company when I was so young that my mother had to sign the legal papers … for years.

It took a long time to make good sense of it all, in business. In fact, I still utterly stink at some points in business, but the part I do understand is marketing. I know from many years of running successful (and some not so successful) businesses that marketing will make or break a company. They don’t make it easy to understand, either. Even in the best universities, they often talk about a lot of theories and concepts, but where the fork meets the food, it takes some stomach-churning hard work to see real success. I know, because I’ve done that, and if you ask me, or any of my peers who have earned anything more than six-digits per year, you will find very few of them who came by it with simplicity.

Stop buying into people’s notions that it is simple. If it was really so simple, it probably wouldn’t be very profitable.

TAM, SAM, SOM, ROI, SEO, SMM, and PECKERs

There are enough acronyms and industry buzz phrases to bring my lunch back to the top of my throat. Some of those acronyms really matter, such as TAM (Total Available Market), SAM (Served Available Market), SOM (Serviceable Obtainable Market), ROI (Return On Investment), and many others. These matter in huge ways, but they are very frequently misunderstood or overlooked because of shortsightedness, which often comes from a frightened accountant who knows little about marketing or how the company actually gets the money to pay their salary.

In small businesses, it is often because, although the person in charge was good enough in their field to start a company, they were not good enough at business to understand that being good at a trade does not mean being good in business. Being good in business means knowing where your weaknesses are, and knowing how to fill those gaps with people who are as good or better at their field of knowledge than you. That’s right, the best business leaders learn to effectively delegate what is out of their league. It’s why I don’t handle my own bookkeeping, and why people in other trades are usually let down when they try their hand at marketing.

Other marketing acronyms are beaten to death, like SEO (search engine optimization) and SMM (social media marketing). These buzz phrases are so popular these days that dishonest people use them to fool companies. In online marketing, they talk about building more website links, but they throw out good ideas of why somebody would actually want to link to their website … and they often hold the absurd notion that more links is always a good thing. The really misinformed marketers will lead you to believe that social media marketing is all about networking and socializing.

This kind of shortsighted and misinformed thinking is why I created my very own acronym for 2012, and I welcome you to read why I’m very proud to call myself a “PECKER” (Profit Engineer and Competition Killer with Extraordinary Resources).

Advertising is Only a Very Small Part of Marketing

I find that a lot of people imagine marketing to mean advertising what they offer for sale. This is only a small part of what makes up marketing. Marketing addresses many other things, including a whole lot of math, creativity, strategy, and so much more. An easy example is to look at anything you have for sale, and answer the question of why you priced it at the level you have. Is it because of its cost to produce? Did you leave it up to the competition to decide your price? Did you ever actually do the research to know what it’s worth – and not just that – to the right audience? Did you get that research just right, or is it really so impossible that you made some costly mistakes by using guesswork instead of basing it on the right factors?

The ways that marketing influences a business are far too numerous to list in a single blog. I hope you’ll think about some of those things you may have overlooked. I welcome you to my blog archive to help get the wheels turning. There are hundreds of articles there, and I think you’ll find them very useful if you slow down.

Throw Out Your Sandwich and Make a New One

I hear a lot of people regurgitating the last thing they heard or read about marketing, and how fresh the latest idea is. I guess maybe it was fresh sometime before it hit a squillion blogs, but now it’s like a day-old tuna sandwich sitting out in the sun.

Great marketing is seldom a matter of seeking the latest and greatest thing. Following trends is important, but following them too closely that you follow the mistakes is often a train wreck in the making. The things that work are not just following what everybody else fervently exclaims will work. Great marketing requires research, testing, and discovering what works – really works – for your company, and being the one all of those trend-talkers are talking about. It is not about tweeting, Facebooking, Flabunctuating … or whatever the next big trend is.

I’ve written volumes about social media, including hundreds of thousands of words, and even a book. I marvel at how many people think it is something new. Did you think social media is new? It’s how I met my wife, well over a decade ago … and many close friends years before that. Social media helped me to grow several of my companies quite abundantly, too, but social media is not a unicorn net or a leprechaun trap.

One of its greatest uses is to listen and learn about what makes your market tick … and then use that information. Many people are too short-sighted to take things to a new level of analysis, and understand what to do with a good analysis. Most are unwilling or unable to dig deep into their creativity and find ways to make their brand stick out like a sexy model passing out free bacon sandwiches and all expense paid trips to “Available-Sexy-Model-and-Free-Bacon-Sandwichville”.

I witness many scared companies making scared decisions, but I’ve watched a lot more scared companies fail than I care to count … and that’s because they don’t count. The ones that count are the ones willing and fearless enough to do what it takes to be more like you want your company to be. Not like the bottle-rubbing, instant-enlightenment-seeking, one shot wonder at the competitor down the street – like you – or at least your vision of you. So stop being scared! Go out on a limb. That’s how people succeed in the real world of business.

Fear of Failure Destroys Marketing Efforts

I know the extreme power of fear. I have witnessed it throughout my career, and I’ve even allowed myself to be a casualty of fear at times. There is nothing easy about making the kind of commitment it requires to be successful. This goes for anything you really want in your life, whether it’s a spouse, a family, a new home, a new car, or an improved bottom line in your business. It takes a leap, but it doesn’t have to be simply on faith.

If you think about your marketing as a foundation of your company, which it really is, you will find yourself on a much stronger path. I know, it’s easy to try and argue the point. The accountants think accounting is the foundation, the attorneys think the legal structure makes the foundation, and the people who created the company think it’s all about the product or service … but that’s really not true.

Businesses simply do not work without being marketed. Even in the most obscure and complex examples you can throw out there, the biggest factor between success and failure of two equal companies really does come down to how well they are marketed.

I Believe You Could Do Better With Your Marketing

How could I put this any more clearly? You can do better! Failure to control your fear impulses and continuing to worry about what will not work is a fast track to failure. Try thinking more along the lines of what you stand to gain, instead of cowering to the fear of what you stand to lose. Then consider what you continue to lose effortlessly because you’re waiting. There is a steep cost of missed business opportunities. In fact, it is often the worst scenario of all. Getting out of your easy chair to face your fears is a huge factor in success, and I know it from experience.

I turned ideas into millions of dollars within only a short time after completing my 8th grade education. It didn’t take an MBA, or however you spell those fancy degrees hanging on the “smart guy’s” wall. It took research, creativity, and a good supplier of balls. I said balls, and you can call me a bad marketer for that … but if you want to know about selling balls – or selling anything else – read this article to get your thinking up and bouncing: “SEO, Social Media, and Marketing Balls”

Stop worrying about the cost of marketing done right, and start focusing on the positive outcome if you do. There are plenty of chickens out there, and I hope you aren’t one of them … and if you are, I hope you’ll make a commitment to change it.

Some Personal Lessons I Learned About Marketing

When I consider why I advocate for people to take their marketing more seriously and stop waiting for “something” to change, I look inward at how it has changed my life. I imagine the things that would never have happened without marketing, and I’ll give you a glimpse.

I dropped out of school at age 15 to start my first company. That could have gone quite miserably without good marketing.
I retired (the first time) at age 25. Without good marketing and having guts, that would have sucked for the average 15 year old dropout.
I met my wife in 2000 by using good marketing skills … online … with social media. Without that, I would not have the three wonderful kids I enjoy so much today.
I learned to competitively control automobiles at over 170 miles per hour (270+ KPH). It took a lot of marketing to own a race team. It is what I wanted, and because of good marketing, I made it happen.
I learned that making everybody happy is not required. Making the right ones happy is a whole lot more productive.
I learned that without climbing out on a limb and having the courage to embrace the immense value of marketing, I would have very few of the things that bring me joy and sustenance today.
I learned that sharing what I know feels very good, but even better when people will use it to improve their own lives.
I learned a whole lot more, but that’s why I have an archive, and that’s why this blog is not finished yet. Please subscribe if you want to keep learning with me.

I have no intention of explaining all that I have learned about marketing in a single blog article. That would be impossible. I hope that you will be willing to take a good look and accept some useful tips from a guy who has been around the block. I hope you will bookmark my blog archive and keep coming back to feed your brain with some useful marketing advice. I also hope you will subscribe for more to come soon. Don’t miss the point that it will make a lot more difference to your business than it will mine.

I also welcome you to get to know me. I’m a very approachable guy who loves the field of marketing, and I’m always delighted to be helpful.

Podcast: Play in new window | Download

Do You Accept SEO or Social Media Marketing Contracts Under $10,000?

I could sit here at my computer all day and tease people who are willing to take on small contracts in the field of SEO and social media marketing, or the clients willing to pay them. Many of those clients are broke, and there are a lot of bad people with an SEO and social media flag waving to attract the last of their money.

Giving them a hard time can be very fun, but it is not really all that productive. After all, there is a huge majority of small businesses who seek somebody to help them, but do not have the needed resources for a grand entrance to the online market. There are also some talented marketing minds who like working with small or short-term contracts. I prefer to help bring them together.

I don’t accept those contracts, but not because I am an arrogant jerk who thinks he knows it all. I don’t arbitrarily look down upon those companies, and I don’t automatically look down upon the people serving them. It is just not my market, and I turn away business every day because of this.

If you accept small projects in SEO and social media marketing, I have some free leads for you. I don’t mean just a bunch of shabby sales leads from people hoping to spend an hour of research online to find a free website that will earn them a squillion dollars. I mean real companies hoping to make an entrance to their market.

This does not mean that I am a bad option, or that I am expensive. I return huge profits for my clients, and I am worth many times my rates. It also does not mean that you are bad, or “cheap”. We all have our market space here, and mine is in long-term and well-funded strategic projects. In fact, you can use me as an example to show your potential clients that you are not just trying to rip them off. It really does cost a lot of money and work to create success. Bigger success takes bigger experience, bigger money, and bigger strategy. Those are the projects I accept.

I believe that we both have a similar challenge of building confidence in customers. I even expressed some troubling truths only a few days ago in a long-winded article about a short-sighted customer who has done business with me for years. Check it out for yourself: “Marketing ROI Factor: Are You a Client or a Customer?”

In reality, the upfront cost of an optimal campaign in SEO or social media is prohibitive for the majority of companies. Sure, if they could pony up the money for a well-researched campaign, they could turn over their investment at a much higher velocity. As it is, they will have a higher opportunity cost by cutting corners, but that is often the only option. It is an option that you may be able to deliver.

Even when the cost is not the biggest hurdle, putting money into an online marketing campaign is a damn scary proposition for many companies. Even when and if they can swing the money, they will dip their toe in to check for sharks before they go swimming. It is frequently not the best option, but it is a popular option. Again, it is an option that you may be able to deliver.

Note: Sharks are my friends, and whales are my clients. The other fish are looking for you. You like fish, right?

People probably ask you a lot of questions about this industry. You will sometimes need a third-party resource to help make your point. I am happy to help you ease their tension, and to help them make better decisions. My blog is always here, and there is a lot of useful information in my archive. I don’t even want a finder’s fee to send paying customers your way, or to help you explain the benefits of SEO or social media marketing to your customers. Not at all, because if you have a small budget to work with, the last thing you need is to spiff me with money.

I love spiffs, but I prefer to pay them rather than receive them. Reference my article earlier this year titled “SEO and Social Media Reward: $5,000 for Introduction“. Yes, I really do prefer to pay you a $5,000 finders fee than for you to pay me a hundred. I am a money-spending madman like that. 😉

The Caveat … Yes, The Fine Print

The first thing to do is add your comment here on this article.

Of course, I don’t just want every cockroach in the Twinkies dumpster to hold out their hand for a free crumb. I want to hear from people who actually have a quality value proposition. The big catch is that for each person with their hand out, I will be watching. Yes, I will be looking at you, and judging you. I intend to provide a small degree of vetting. If I like what I find, I may put a spotlight on you in a follow-up article.

Because we are talking about people who looked to me for help, I am not about to mess up my reputation by referring them to somebody who will rip them off. I will watch my server logs to see how much and how long you have read my work. If you have been reading, and if you have subscribed, it is far more likely that we share similar principles. I will also notice if you have been a blog troll or lurker. If you are a non-communicating type of person, start communicating, and stop hiding in the shadows if you want my referral business.

Very Important: I will notice whether you are honest with your comment, and with your communications elsewhere on the Internet.

I welcome you to add your comments to explain your value. Feel free to spam all you like. If you seem spammy to me, I have a delete button for that. I tend to react pretty abruptly to people who annoy me. For example, don’t even think about commenting with your favorite keywords in place of a name. I am looking for people … real people with real names … who want more business.

The upside of my offer is that if you are legitimate, I would like to help my readers with appropriate options, and for us to possibly work together for mutual benefit. I am serious when I say that I want quality people to refer small project business to. If you are good and honorable, we may work together a lot in the future.

I have assembled a phenomenal team for producing massive success, but there never seems to be enough marketing talent to trust with the smaller projects.

I would also ask that in the event that you are ever over your head, that you consult me. You may find that you have enough resource to help that whale of a client after all.

Other Cost-Related Articles
Although it may seem hard to turn away a client only because of their budget, there are minimums I simply don’t work below. For more thought-provoking articles on the cost of SEO and social media marketing, and perhaps help with explaining cost to your clients, I offer the links as follows:

Photo Credit:
Broken Piggy Bank by Images_of_Money via Flickr

Podcast: Play in new window | Download

Marketing ROI Factor: Are You a Client or a Customer?

Planning is a Critical Marketing Component

I often ask people what they want to achieve in their business. Much of the time, they really don’t know. I ask questions relating to the sales volume of their industry, the volume they want to achieve, the market share increase they seek, and what they are doing, or willing to do to reach those things. It gets me a lot of blank stares and long pauses on phone lines. This is because they really don’t know.

Many companies don’t have goals, or even the right information to understand what goals are achievable at a given level of marketing effort. They don’t know what it will require to get the results they want, and many times they are entirely shut off to finding out the frightening truth of where they are and where they are headed. When this is the case, they simply do not have all the pieces of marketing math and science in place to make good decisions that will optimize their success.

Relax! If you don’t feel like reading right now, at least push the play button and listen to the audio version. I think you will gain something from this.

If you are a marketing professional of any decent calibur, you surely understand this, and deal with it all the time. You will appreciate this story, and wish for each of your customers to understand this. Otherwise, if you are a business person who is not involved in marketing, I will explain why you need to pay attention to your marketing people and stop trying to butt heads with them over things you don’t fully understand. If you don’t understand something, you should work with your marketing people to make things more understandable, and know this: Marketing professionals do a much better job when they are not getting roadblocked by you standing in your own way. They also perform much better if you are not having chest pains over every decision and over every nickel and dime. So, it is best that you pay attention and use what they know to your advantage. That is what they are there for!

The market information I mention here is not intuitive for most people. It is the data that a marketing director or consultant can deliver for you, digest for you, and provide continually updated measurement. Tragically, it is often overlooked when somebody chooses to kneecap the marketing department because they don’t understand the work we provide. It is important to have this information in order to build your strategy, or it will be much harder and usually impossible to achieve optimal results. If you overlook these fundamentals, you are building on a weakened foundation. It makes perfect sense, right? Fine, maybe not yet … so I’ll continue.

Without accurate information about market potential, a defined set of business objectives, and a clear knowledge of what it will take to meet your well-planned goals, a marketing campaign is often little more than an experiment in wasting money. Marketing should never be a “shot in the dark” like this, but I see it very often that this is the way companies, large and small, approach their market. It leaves little wonder why some companies view marketing as a risk, while others understand the sound investment it really is. When this miserable fate of marketing fear gains control, companies suffer in huge ways. The common cause is lack of research and planning. The common outcome is that somebody makes an executive decision to slow down the marketing train and pull it off the tracks.

When Return on Investment Goes Negative

Positive return on investment (ROI), is the magical part of marketing that keeps a business steaming forward. Sometimes companies accidentally stumble on a positive return on investment. After all, even a broken clock is right twice per day. When the return on investment comes without good planning, it is often just out of “luck”, and that “luck” runs out. When it is based on yesterday’s market information and yesterday’s strategy, a similar drop in ROI can be expected.

If you have encountered this in your company, let’s look at this again and reevaluate the importance of marketing. Marketing is what makes companies successful. Without good marketing, many phenomenally great companies have failed. Conversely, many presumed failures have become successful because of good marketing. There is a strong correlation in the outcome of a company and the quality of their marketing. Not just quantity of their marketing … I said quality. This requires providing your marketing people the resources they need so they can deliver what the company needs.

Marketing provides the math that runs the machine, and has a huge influence in everything from determining the right selling price of goods or services, to the CEO’s salary. It is a lot more than just advertising, branding, or updating your Facebook status. When marketing is done right, it is approached as a holistic strategy to make the company stronger and more profitable.

Notable Considerations: Starbucks was a little coffee company and Subway was a little sandwich shop in the beginning. Because they understood the principles I am expressing here, they have become some of the most successful companies in their fields.

Call for Marketing: A True Story

I received a telephone call from an existing client. Actually, he is more like a customer, because he thinks like a customer and creates his own roadblocks like a customer, which is unlike a client. I consider customers and clients two entirely different things.

Let me explain this: In my business, clients view me as an integral partner in their success, and not just a person who completes a series of tasks. They understand that my knowledge and experience is what brings them success, and not just my performance of a set of prescribed deeds. They pay attention, and they take my advice very seriously. Clients don’t tell me what to do about their marketing … they ask me what to do about their marketing.

To be a client, a person cannot nickel and dime their way through and stumble along an undefined path until they make it. We set goals together based on solid facts and market data, and we adjust them as needed. We create a finely polished plan and we work together to make that plan a success.

So, about the person who called me, I like this guy. He has been a customer for about four years, and we have built a relationship in that time. I consider him my friend. He has been to my home, and he has met my family. We are not strangers, and we have a mutual trust. If he says a check is in the mail, I trust him (unlike this example from Suture Express). I believe that he trusts me, too, but he gets in his own way. He likes to be in control, and he likes to prescribe specific marketing tasks. That is fine, because if he has less than optimal results, it is ultimately not my fault. On the other hand, it kind of makes me feel a bit dirty and icky to just do what he says when I know he is making a mistake.

The troubling part is that when I explain why he should be doing something differently, the train gets derailed. It is not really because he does not have faith in me. As I said, he has been to my home, and he has witnessed first-hand that I am more than just a little bit successful in my field. What I have determined is that he has a hard time putting faith in his own plan … because he doesn’t really have a plan. He just knows he wants to make more money, but he refuses to take a strategic approach, regardless how sincerely or logically I urge him to do so.

In our recent discussions, he has explained that he wishes to market a product that he believes in very much. The product is in one of the most competitive industries in the world, and includes a line of very exclusive products with a specific market that is typically affluent. I asked him the common questions, and he does not yet have all the answers. What he could tell me is that he wants to hit the market at full strength. In his own words, he wants to put 100 percent into the marketing effort. When I told him that he had better prepare to mortgage his oceanfront home, his boat, and his first-born son, he probably thought I was joking.

Let me insert a bit of fact so that you can really understand this. My customer recently experienced a common fate as his employer of 20 years sold off his division to an overseas company and he became jobless. Because of his age and his specialized experience, he decided to avoid the underwhelming job market and take a new focus. He has chosen to sell a line of products that he and his wife’s other company has had some success with.

My friend and customer is an accountant by trade. In fact, he is a damn good one, who has been charged with accounting for a whole lot of millions of dollars by a sizable corporation. He has his Master’s degree in accounting and I believe he has done a great job with it. He is not a marketing professional.

His idea of putting “100 percent” into the new business venture was still expected to be manageable with a budget of under $10,000. Ten thousand dollars?! Can you even imagine that? His goal is to replace his full-time income of a senior accountant of 20 years with an investment of less than a month’s income. If that level of investment success was possible, don’t you think McDonald’s, Wal Mart, Microsoft, and Google would have already cornered that market?

So, in order to try and keep his perception of risk low, I introduced the idea of a partnership of sorts, whereby I would provide marketing on a contingency basis. I would not have done that if I didn’t have a degree of faith in his idea, and trust for him as a businessman. I also normally do not provide such a service with woefully under-capitalized companies, or those which are unwilling to listen and take good advice from an experienced consultant.

What I realized, as I considered this a little closer is that such a partnership is really not a good idea for me, simply because of his unwillingness to understand the importance of marketing. After all, the emphasis of his new company is nearly entirely based on marketing. Instead, I will offer him the opportunity to prescribe a set of tasks, pay me as a customer, and tell me how he wants to handle his marketing.

The way it turns out, he mostly believes that the emphasis will be in the production of a really great website and some social media exposure, but gives little thought of what else it takes, and what else I know. He wants me to produce his ecommerce website development, initial search engine optimization efforts, and set up a social media presence. The four-digit budget will be exhausted long before I can complete these tasks at an optimal level, but since he is a great guy and existing customer, I will stretch my work out beyond his spending cap. I will do a an exceptional job for him, and I will not let him down.

My customer’s chosen direction will leave no room for strategy development, data acquisition, customer modeling, industry market research and forecasting, or the many other things which need to be done to create a successful market penetration. However, it will provide a sense of control and security for my customer. He will fall far short of what he could achieve if he actually could bring himself to put forth a 10 percent effort, but I cannot tell somebody how to run their business. My job is to tell them how they could run their business, what they could achieve, and help direct them there. As for the 100 percent effort he talked about … he has no concept of what a 100 percent effort looks like in a competitive market. He has only seen that in movies.

Summary: You Cannot Save Your Way to Prosperity

If you approach your market like the customer I have described, you will miss a lot of potential. In fact, it is a good recipe for failure. A reality of marketing that is difficult for many people to grasp is that you cannot save enough money to become prosperous in business. To become prosperous, you have to invest it, and do so with good direction and dedication.

I like the way Thomas Jefferson put it with the inspiring quote as follows:

“The man who stops advertising to save money is like the man who stops the clock to save time.”

–Thomas Jefferson

Don’t just take it from me, look at your own company. If you are investing wisely in your business, you know that I am right. On the other hand, if you are trying to save money in order to keep your cost low, your profit is undoubtedly much lower than it could be, too.

I shared my description of what I call a client versus a customer. The question that I really hope you can answer for yourself is which makes more sense in your business. Would you rather be a client or a customer?

Other Related Articles: I believe that a lot of shortsightedness comes from fear of loss overcoming hope for gain. The fear of loss is often due to the cost of doing things right, versus just doing things. Here are some related articles you will appreciate if you liked this topic.

Podcast: Play in new window | Download

Social Media Emphasizes “Pay Now, Play Later” Mentality

Have you ever heard the term “Pay now, play later”? Sure, it probably sounds familiar, right? It means that you pay your dues, and then, cash in your rewards later. Just ask a successful business person about this, or ask a parent. Most parents try to instill this mentality in their kids with something like “Do your chores, and then collect your allowance.”

This old school work ethic is a popular way that success is taught, even at the lowest levels of education, but we have a new school, now. We have a school that teaches success in overtly misleading ways.

It is astonishing how many people approach me with their marketing concerns and have this all backward, so I decided to share some thoughts with you. Not just thoughts, but experience … earned experience. I see it a lot more in small companies, but no size of company is immune, and we can witness this in Wall Street news stories every day. It is the needle that makes economic bubbles of all sizes burst.

Is Your Company a Job, a Career, or a Slush Fund?

Let’s have a glimpse at reality. You are probably not wealthy. Oh, you may even be “rich”, but I am a numbers guy, and I’m betting that you didn’t just send your butler, Charles, to bring you another chilled bottle of Dom Peringnon and a dish of beluga caviar.

The fact that you have read this far should perhaps tell us both that you have some serious moments of introspection, trying to figure out why all of the purchasing public does not understand the things you see so clearly. Your stuff is the best on the market, but yet, Charles is still just bringing you another Bud Light and some pretzels.

What in the heck is wrong with this picture? Well, here’s a tip: Charles isn’t messing it up … you are!

Yes, I know How Easy it Can Be

I am amazed and amused by how often I see business leaders rip off their own future to have some of that fun right now. They are playing now, and paying later. It is a lazy formula for disaster, but very popular.

I’m not going to claim that I am innocent. I have wasted more money than some small countries, so I know how easy it can be to rob yourself. I am trying to warn you and encourage you, so I hope you take this seriously.

People who treat their company this way are often paying quite dearly for it, with “opportunity cost“. It is worth being conscious of this, whether you are that business leader, or just a random employee behind the scenes. Either way, it can significantly screw up your future to ignore this behavior in a company.

Let’s Think About Opportunity Cost

Opportunity cost is the cost of all the missed opportunities that companies endure, and the examples are abundant. In simple terms, just try to add up the lost potential for referral business for every customer that goes elsewhere. Then, imagine the loss of market share over time, as their referred business sends referrals to the competition … and so on.

I see a lot of people damn near stroke out and die right in front of me when I tell them how much money they should logically be investing in their marketing. It really scares the heck out of a lot of people. Why does it scare them? Probably because, based on their limited experience, they imagine a marketing budget as risk capitol, rather than understand it as the most mathematically and scientifically sound thing they can do for their company. Many people are fantastic at their job, but if you throw them into marketing, they get ripped to pieces. They already saw failure, and they don’t need another financial bloodbath like that!

In case you missed that link I offered up a moment ago, let me tell you what Wikipedia says about opportunity cost. If you think about it, this should be what really scares companies. Brain-up for a bit … here you go:

Opportunity cost is the cost of any activity measured in terms of the best alternative forgone. It is the sacrifice related to the second best choice available to someone who has picked among several mutually exclusive choices. It is a key concept in economics. (more about opportunity cost)

When you look at it this way, it really sounds expensive to ignore the best possible alternatives, right? You bet it is! It is money that is flowing right on by and floating somebody else’s yacht while Charles gets your canoe ready for you.

How Does Social Media Add Emphasis?

Social media marketing is so frightening to some businesses that they are afraid to invest in it. Others are taking great advantage of the medium. If you look at the vast difference in potential opportunity cost between the two options, you can see how it emphasizes the loss or gain at both ends of the spectrum.

I want to be fair here, and give you an upside and a downside look at this. There is an amazing assortment of people to meet, interact with, and socialize with in the realm of social media. There are a lot of creative ways to gather market data and promote products and services using social media, as well. It can lead a company to great opportunities of all sorts. It can land you a great new customer, employee, or even a wife, three kids, and a corporation.

Social media is also very misunderstood by many, and from a marketing standpoint, a lot of people would like to imagine it as “free marketing”. Even just today, I was introduced to somebody, and I couldn’t make this up if I had just dosed myself like an under-aged hooker in a war zone … an exact quote was “The beauty of Mark is that he is the best and he’s free!”

Are you kidding me? I don’t even begin to market a company without a bare minimum … and I mean an “I owe you big time for saving my life from that charging grizzly bear” retainer fee of $5,000. It is usually a boot full of bear piss and swollen underpants full of “oh crap” more than that.

Now, although I would argue that she may have meant “free”, in the sense that I will not take money from a company unless I am confident that we can work well together and that I can provide them a huge return on investment … I’ll give her that. If she meant that somebody can get a lot of value by sucking up some of my experience like drinking free grape soda through a garden hose, that’s cool by me. She means well, and she knows that I do, too!

The cost of business is frightening and often frustrating, but only until you understand that a business is an investment. It requires tough decisions, and a good investment and reinvestment strategy. Making money takes money, and continuing to miss opportunities by seeking a cheap solution is like trying to dig your way out of a hole.

Social Media Can Destroy a Company

There, I said it … social media can destroy a company. It may not hit all the major news outlets, but I would put a good bet that it has helped more than a few into an earlier bankruptcy, or a complete failure.

It sounds crazy, right? This amazing saving grace we call the Internet could actually do harm to a company? It is very true, and it really happens. It is often a last refuge of absurd hope that setting up social media profiles will help a company out of trouble, or that this magnificent Internet can absolve a company from making good business decisions.

When I see people with starry eyes about the easy money online, it really brings back days in the early 2000’s when I was marketing for an Internet services company. It sounds a lot easier than it really was. I was marketing wholesale services to Internet access providers and web hosting companies. In the instance of my most satisfying online success story, I frequently had to lift the CEO by the ankles and shake him for every coin in his pockets to get the investment money needed to ensure his success.

A few years into the project, he could actually make better decisions about the corporation. He eventually even set his sails toward a young retirement, and after many years of paying heavily, he started playing (like a rock star). He paid himself handsomely. The corporation allocated $250,000 per year to fund his race team, $50,000 per month for “other miscellaneous business expenses”, and set him up pretty nicely. When he decided to buy a new home and asked the banker and accountant if he was spending more than he should, they literally said “If you want to buy every house on both sides the street, we will be happy to finance it for you.”

So, surely with an income in the top fraction of a percent of money earners in USA, and worldwide, that is a reasonably sensible time to stop investing in your company and soak in some significant leisure. A leader must eventually enjoy the lion’s share of the rewards someday, after all.

Oh, but there is still an “Unless Clause”, which explains that unless you are zombie-stupid, or high on arrogance, you must keep investing it well.

Damn it like mad, but the worst scenario still happened to my client. Corporate suppliers started laying off, killing services, and slaughtering his customers. He ended up losing millions in corporate equity, going back to working hard to earn a living, and teaching people like you to invest well in your company … even until the point when it nearly breaks you.

If you wonder how important it is to invest wisely today, to see a good future tomorrow, just ask that CEO about it. He has built many companies into huge successes. Best of all … well, aside from the fact that he is absolutely not free, you can reach him right here.

If you want to know how much it really takes to be successful, or how much it can hurt to stop looking ahead, you need to read the book “Living in the Storm“. If you were paying any attention at all, you will recognize the author. 😉

Photo Credit:
Playing in the Fountain by Tim Schapker via Flickr

Podcast: Play in new window | Download

Ray Skillman, Indianapolis Car Dealer Review: Bad Social Media and SEO

If you are marketing something online, give me a moment to show you how to screw it all up. Since I know a lot of people shudder at all the sacrifices associated with marketing done well, I want to show you an example of how badly it can go wrong if you succumb to being shortsighted and misinformed.

This exemplifies so much of what is wrong with today’s Internet, and why Google keeps splitting skulls on worthless website owners. It shows a downward spiral of desperation of a car dealer, and a trend that is so widely followed in other businesses that it relieves me of wondering why companies suffer from dwindling market share.

This really should open your eyes if you are trying to take the quick and easy road to your SEO (search engine optimization) and social media marketing. If this example does not show the pitfalls of shortcuts and the benefits of playing by the rules, nothing will. I know that you will probably not finish reading this, but then, that is exactly the problem … shortcuts are popular. I made an audio version, in case that will help.

In this case, it involves a car dealership in Indianapolis, Indiana that operates by the name Ray Skillman. For all I know, this fella may be a delightful car dealer. He may even be the kind of guy I would personally like, enough to buy a whole fleet of cars. In fact, his story sounds really great, but it seems that this guy has a reckless streak of delegating his business future.

On the surface, it appears that whomever is making their marketing decisions has chosen to believe an “easy money” approach to SEO and social media, or otherwise perhaps just wants to damage the company deliberately. My guess is that they simply believed a good pitch of SEO lies from a bad search engine optimizer, instead of using diligence. I could make guesses all day long, but I want you to give you what I know about the Ray Skillman auto dealerships, and help you to figure this one out.

I previously wrote about the high level of absurdity of car dealers using social media, and it really is a worthwhile read. This Ray Skillman Auto Group seems to be trying to set the bar at an all new low. Low enough that it seems they are quickly dropping off the net, despite all of their frantic actions.

Ray Skillman Dropping Off the ‘Net?

Based on statistical data, it appears that Ray Skillman Auto Group has messed up bad enough to get virtually slaughtered online. It was bad enough for it to hit my RADAR, and it gave me adequate material to send a warning slap. I will tell you why, but better yet, I will tell you just how badly they are ripping themselves a virtual new orifice when it comes to website traffic, and future search engine rankings. It will be even more obvious as they endure the effects of Google’s Farmer Update of late February 2011, just in time for the car industry’s busy spring and summer sales seasons. Google’s “Farmer Update” was designed to wipe out website farms, and this one will probably yield some pretty bad crops from Google.

Before I show you the company’s new orifice, let me explain that they seem to actually want to reach the auto buying market of the Indianapolis area. Although they are very misguided, I think they comprehend the importance of the Internet for their business, just like you. In fact, it only took me a moment to find that they have a unique domain name for each of the entities as follows:

Ray Skillman Auto Group
Ray Skillman Ford
Ray Skillman Chevrolet
Ray Skillman Buick
Ray Skillman Northeast Buick GMC
Ray Skillman Buick GMC
Ray Skillman GMC
Ray Skillman Classic Cars
Ray Skillman Collision Center
Ray Skillman Hyundai
Ray Skillman Southside Hyundai
Ray Skillman Hyundai West
Ray Skillman Kia
Ray Skillman Auto Center
Ray Skillman Shadeland
Ray Skillman Kia West
Ray Skillman Mazda
Ray Skillman Northeast Mazda
Ray Skillman Mazda West
Ray Skillman Mitsubishi
Ray Skillman Suzuki
Ray Skillman Buy Here Pay Here

Is Ray Skillman Playing Too Much Defensive SEO?

I understand the importance of “defensive SEO”. Heck, my examples in this area are the subject of case studies. Ranking for your own brand name, in multiplicity, is important. Nobody wants to become a “Suture Express” case (yeah, Google it if you are not sure what I mean). The problem here is that it seems they are using frantic tactics for defense, and abysmal strategy.

There is little or no tangible value for the consumer being expressed in their visible efforts. Even their “Happy St. Patrick’s Day” update to the 55 fans of their Facebook page was just another sales pitch to chime in with “It’s going to be a beautiful day… a perfect day to come out and look around!” They should really take the time to read this article about Facebook marketing titled “Facebook Marketing: Pages, Customer Modeling, Promoting, and Awesomeness“. Their Twitter usage is just as bad, too. They are still trying to use interruption marketing rather than building equity in social media.

So, Skillman, do you want me to have a happy holiday, or do you want me to come out and have a crappy time with a pushy car salesman? Don’t tell me your salesmen are not pushy, either. When I get spammed by you from The Philippines, a logical assumption is that it is in your company culture.

Skillman Auto Group and The Philippines?

My introduction to Skillman was in a spammy comment on my blog. The comment originated in Makati, The Philippines.

The commenter whipped out a blurb of horrible English to tout the value of social media for car dealers. They claimed to have shopped at a dealership in Indianapolis, Indiana, so I thought that was a kind of long trip from Makati, The Philippines just to buy a car.

Not only did they shop for a car thousands of miles away, they used a URL from Ray Skillman’s website as their own URL in the commenter profile. They must be a big fan, right? Otherwise, the comment seems a bit fishy? Well, I guess maybe they swam from The Philippines to go car shopping and they picked up a little fishiness along the way.

Sure enough, I was right … that is a really long trip! Check it out on Google Maps and see for yourself.

View Larger Map

Look, if this guy is pulling in customers from clear across the Pacific Ocean to buy a car, and use his website address when they comment on blog articles about auto dealer social media marketing, more power to him. According to what I see from his dwindling SEO and social media results, this is not likely the case. Instead, it looks like a cheap and easy way to get penalized by Google and other search engines, and to annoy people with more spam (as if we don’t already have enough). Let’s also not forget that a blog is social media, and social media is often very unkind to spammers.

Here is a quote from Google Webmaster Central about using comment spam as part of a strategy. Yes, this is actually in Google’s words:

“Comment spammers are often trying to improve their site’s organic search ranking by creating dubious inbound links to their site. Google has an understanding of the link graph of the web, and has algorithmic ways of discovering those alterations and tackling them.”

Here is a link to the full article: “Hard facts about comment spam”

As long as Skillman is actively offending people with their social media efforts with pitchy crap and spamming blog comments, there is no wonder why they are so busy playing defense with their SEO efforts.

Ray Skillman Auto Dealership Websites Sinking in The Pacific

Let me share what I discovered when I looked at just a couple of third-party resources for Ray Skillman’s dealership websites. I will show you results from Alexa.com and WebsiteGrader.com. I chose these, because they are well known measures of websites, and they are easy for people to understand the results.

What Does Alexa.com Say About Ray Skillman Dealerships?

Alexa ranks websites according to their known popularity, and the smaller the number, the better. Google is number one, Facebook is number two, YouTube is number three, aWebGuy.com is somewhere in the 130,000’s (still top 0.45% most trafficked), and etcetera. Alexa is not perfect, but it is pretty compelling when you see multiple of Skillman’s websites dropping in ranking by a million points or more over the past 30 days, and seven of them disappearing completely. This is a bad sign of doing something seriously wrong.

I took an average from 22 of Ray Skillman Auto Group websites and here is what I found:

90 Day Average of Ranked Domains:
9,498,928 average across 16 domains (the rest were not measurable). The best rank was 1,477,739 and the worst rank was 11,867,267

30 Day Average of Ranked Domains:
8,491,088 average across 11 domains (half were not measurable). The best rank was 2,766,597 and the worst rank was 21,187,719

So, are they moving up or down? If you look again, you can see that on a 30 day basis, even their best individual ranking was worse by 1,288,858. Worse than that is the disappearing act of seven more domains. Yes, there were seven of them which dropped completely off the RADAR!

I’d call it a game and throw in the towel before I threw another single dollar at the horrific tactics and utter lack of strategy that the SEO working for Ray Skillman Auto Group is using. My experience says that it will cost them many times whatever they are paying the search engine optimizer.

What Does Website Grader Say About Ray Skillman?

Website Grader uses information about the website to assign a numeric grade. It is explained on their website as follows: “The algorithm uses a proprietary blend of over 50 different variables, including search engine data , website structure, approximate traffic, site performance, and others.”

For the Ray Skillman Auto Group websites that I checked on Website Grader, the results did not look so good. Of course, I am a master of understatement. Fine, it looked like a murder scene, OK? Here is what I found from the websites:

Highest Grade: 86

Lowest Grade: 21

Average Grade: 64.6

The results are not just bad, but it shows a huge shortcut from trying to do things well. A website should be ready before it is ever even marketed … even in spam. For comparison purpose, and of course never to brag, this blog has a ranking of 99.8.

Ray Skillman Can Still Win!

With all of these business entities operating under the Ray Skillman Auto Group umbrella, just consider this: If they could increase their profit from SEO and social media marketing by just $1,000 per company, per month, it would add up to $252,000 per year. Even with a miserably low goal like that, they could expect a much greater increase in following years. That $252,000 per year could help them to afford a good SEO strategy, and improved social media marketing reach and response rate.

The trouble seems to be that they may not yet realize that a higher return on investment requires a responsible investment, first.

That, my friends, shows the difference between doing something, and doing something well. Rip me a new one if you like. My ears are wide open.

One more thing! Don’t take this wrong, because I love cars. I love them enough to drive them at over 200 miles per hour, race them at tracks all across the USA, and slap those who abuse them with terrible marketing shortsightedness.

Here are some other automotive-related articles from my petroleum-guzzling marketing head:

Photo Credits:
Bent screw by stevendepolo via Flickr
Screws by aussiegall via Flickr
Xray photo by Laurel Fan via Flickr

Podcast: Play in new window | Download