Business in General Archives - Page 4 of 25 by Mark Murnahan

Confession of a Workaholic and Benefits of Unplugging

Have you ever been told that you work too much, or that your work seems to follow you everywhere? If so, I just want to offer up a thought that it may be because you are doing it wrong. Maybe I’m wrong, but what if I am actually right? Stick around and judge that for yourself.

I “unplugged” myself over the weekend, and it felt great. I spent very little time at a computer, and I only used my cell phone enough to be sure nothing was on fire in my professional life.

I remember times when I would feel guilty for taking a break like that, and I find that sometimes social media emphasizes the “rat race” feeling of having to be everywhere at once. Fortunately for myself and everybody around me, I learned how and why to let go of those guilty feelings.

I generally feel very proud of my work ethic. Doing my job well is important to me, and I know that a lot of other people must feel this way, too. I hope you do. A hazard that is easy to overlook is when you become so engrossed in work that you chase productivity right off a cliff. That is when the term “workaholic” generally applies. What workaholics often do not realize is when it is happening, or when to step back and take a fresh look. Allow me to share some thoughts and experience with you.

What if I Miss an Important Call?

Tell me if this sounds familiar. If you nod your head even once, I hope you have learned when and how to unplug. If not, maybe I can encourage you a bit.

I have been plugged into my job with the latest productivity tools that technology has to offer and remain that way year after year. I have carried smart phones since they first became available, and I have had mobile Internet at my side since its earliest availability. My job has always required it, and delegating the really important tasks to somebody else has often seemed impossible, or marginally possible but terrifying at best.

My example may be a bit extreme, but I know it will resonate with some micro-managers and other workaholics. You see, aside from being a marketing guy, I am also the CEO of a company that provides Internet services to service providers. Since 2000, I have been responsible for more servers operating in more data centers across America, and Internet connectivity to more end-consumers than all but very small number of people. When there are millions of dollars riding on things working perfectly 99.999 percent of the time, somebody has to hold ultimate accountability and make decisions in the event that thousands of websites or Internet connections are affected by a DOS attack or a router going bad. That is usually the guy with chest pains and a death grip on his cell phone.

Even long before that, I remember keeping a “bag phone” no more than a few feet away back in the 1980’s. You know, because a consulting client may have had some brilliant idea to run by me at any minute of the day. Yikes … it has actually been decades now. Time sure can slip by fast when you are running a business, and all that time, I have been just a bit uncomfortable that I may miss an important call.

My willingness to work harder and keep pushing my capabilities against all odds has served me well. I have grown some great companies, and I have had an exciting career. Like any career, it has had its ups and downs. Whenever it seems to become a bit lackluster, I start looking back into my career history to try and find patterns and to figure out what I am doing wrong … or what I am just not doing right.

A common reason I found for the productivity downturns is when I pushed a little too far beyond my optimal productivity and lost focus on the purpose of my career.

I think of it in terms of a Gaussian function … you know, like a bell curve. If you sit at the top of your productivity bell curve, you are doing it right. Pushing beyond that, you quickly enter a point of diminishing returns, and the productivity outcome is no longer worth the effort.

Yes, I am a math geek. Since I am a marketing guy, and a computer programmer on top of that, it should be expected. Don’t worry though, I will not drag you into a mathematical discussion of probability distribution.

Has Somebody Warned You About Workaholism?

Has anybody ever questioned how you keep on doing what you are doing? Maybe you have heard somebody ask “Do you ever sleep?” I have heard this a lot, but I always used to take it as a compliment. What I eventually realized is that it is sometimes better to take it as a caution.

I’ll give you an example. In about 2004, my wife told me that I was working too hard and that I needed to take more time for myself. She encouraged a hobby, so I began taking more time for an old passion of motorcycles. That carried on, and moved me on to my life-long passion for cars. Not just cars, but really fast cars, and racing them.

I took more time to unplug myself just enough to see why I worked so hard in the first place. When it came to the real purpose of my career, it had an emphasis in providing security for my family, and to enjoy some leisure. Realizing it enough to rejuvenate myself with the original passion required me to take a step back and see it as a part of the picture and not the whole picture.

Once I realized the important reasons I was working so hard, things went gangbusters. My business went crazy! Things were better at home, and we had more babies. As crazy as this may seem, each baby gave me a pay raise. It happened because I worked smarter instead of working harder, and I learned the value of balance. Don’t get me wrong, I was still carrying all the technology and productivity tools with me. I have still been on-call 24 hours per day since the 1990’s, but once I realized that my career was just a part of the bigger job of being happy … I got happier!

The power of a refreshed mind, and the power of happiness may seem mythical at times. The common wisdom is that you must keep your nose to the grindstone, walk on fire, and a whole lot of other uncomfortable things. If you really believe it when people tell you these things are the keys to having a successful career, I believe you are doing yourself a disservice. Endurance is extremely important, and unplugging can provide huge benefits. It is not all about how much pain and tragedy you can endure.

Business and Career Require Endurance, But Not a Grindstone!

Having peace in your career, and realizing that it is an endurance race and not a short sprint is a big step toward succeeding. Enjoying what you do, and looking closer at why you are doing it is far more valuable than grinding your nose and burning your feet. I am saying this from experience, and what I truly believe.

In a look-back, I find things I have known for years and told myself I would never forget, but I still seem to forget them somehow. One of them is the wisdom of knowing when to disconnect, and actually having the courage to do it. “Unplugging” can be a great chance to reboot and resume greater productivity, but easy to neglect until later.

I have been taking a closer look at myself and my career history recently. I look at some of the peaks in my own career, and I find that some of the most productive times have been when I realized when to push less. Sometimes the timing did not seem logical, because conventional wisdom says that when you are riding a huge wave, it is the time to surf with all you’ve got. Unconventional, but often more productive wisdom says that if you are not careful, burnout can set in even faster than expected.

My best times ever have come after remembering to relax just a little more and stop punishing myself. It has been a little while since I felt this way, but when I knew it and remembered it, I got happy. In fact, I got happy enough that I was earning more money every week or two than an average American family was per year … all while struggling less, working fewer hours, and enjoying everything a lot more than before.

Maybe you’ve heard the term “hindsight is 20/20”. Of course, that means you can see the past perfectly clearly. I don’t think it is quite that perfect, but it holds a lot of predictive data, along with all of that great stuff we call experience.

I pushed like crazy to build a company to pay me enough to feel satisfied. I kept pushing for as long as I saw continual progress, but then I learned when it was time to unplug, and even face my fears to delegate a few tasks when it was appropriate.

I think I’ll try that again. It was sure more fun than feeling guilty to take in a little leisure. It was more profitable, too!

I have just one more bug to put in your ear. If you know somebody needing to delegate their marketing more wisely, I will be delighted to hear from them. Oh, or a race team looking for a wining driver … I am well-qualified for that, too! 😉

Coming Soon: Maybe you’ll think it is completely nuts to unplug and take a step back. I will soon share something that gave me a good reminder to pull the plug. I think you’ll like it. I hope you’ll be sure to return.

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Google Acquires Fridge, PittPatt, and PostRank, But What Does it Mean?

Google acquires many companies, but do you ever notice which ones, and do you ever speculate on why Google wants these start-up companies? I think it makes for some great water cooler gossip, but I also think it begins to form a picture of where our Internet is, and where it is moving.

Some of the recent Google acquisitions have been Fridge, which has a focus on security in social sharing, and PittPatt (Pittsburgh Pattern Recognition), a facial recognition developer. With only minimal creativity, one can imagine how these could each be useful to Google. I am confident that we will see influence from these technologies as Google continues to enhance the Google+ platform and other Google products.

In fact, if you have used Google+ at all, you can see some uncanny similarities between Google+ and Fridge.

Google and PostRank: An Obvious Match

I think perhaps one of the most telling of Google’s recent acquisitions is when they picked up PostRank in June. I wrote about PostRank back in 2010 in an article titled “Social Media Measurement Tools: What Do They Know About You?” Something I stated in that article was as follows: “PostRank pulls data from many sources, which makes it far less fallible than others which only measure single points of data.” It seems that Google noticed the value in this as well.

The image below shows an example of a PostRank score for a given article and indicates what PostRank knows about it. PostRank data can still be flawed, due to network restrictions and the sheer volume of data, but it does a good job.

We obviously know that Google has been very keen on social media for a long time. In fact, I have often said that Google is the ultimate king of social media. I do not mean because of their efforts with relative non-starters like Google Wave and Google Buzz, or the social feed in Google search results.

When I say that Google is the king of social media, I mean that because they have always made extraordinary strides toward measuring and delivering the information that is deemed important by social interaction. That social interaction has historically been in the form of websites linking to other websites. Google not only measures links from website to website, but they qualify it with the more popular websites providing amplification to the signal. This principle is not changing, but the methods and complexities of measurement are changing. In my estimation, Google is not missing a beat, and the acquisition of PostRank further adds to their reach.

People have tried to argue that Google’s measurement of links from one website to another is not social media, but let’s have a look at “social”. Social means, literally, “Of or relating to society or its organization” and it doesn’t just mean the microcosmic view of making buddies or socializing in the “let’s grab a beer” sense. By measuring website links, Google has used a social response from others to determine what people want, and what they are looking for.

So, let’s look at how the modern use of social media changed things. Google’s historical measurement of links is still just as social-based as what we see in modern social networks. The overall factors of separating the popular from the unpopular are similar. The difference today is that the simplicity of sharing those links is much easier for the non-technical “John and Mary Lunchbucket” type who don’t know anything about websites or HTML. Accordingly, it is much faster, and the amount of information to sort through is huge. There are a lot of factors to assimilate, and far more data points than ever before. Google is extremely efficient at this, but now Google has even more help gathering that data.

Since you may wonder how Google’s acquisition of PostRank really makes sense, or how it can help Google, here is a brief statement about PostRank in their own words:

What is PostRank?
The social web connects people where they share, critique and interact with content and each other. PostRank is the largest aggregator of social engagement data in the industry.

Our platform tracks where and how users engage, and what they pay attention to — in real-time. PostRank social engagement data measures actual user activity, the most accurate indicator of the relevance and influence of a site, story, or author.

PostRank provides useful data for publishers, and now that data will be useful to Google as well. I have heard a lot of people confused about how Google views the usage of modern social networks. I think it is absurd that a person could actually think they are not making efficient use of this information. For anybody who doubts the degree to which Google gives attention to modern social signals, the acquisition of PostRank should give a further indication that they are serious.

What Google Says About PostRank

According to an article on TechCrunch, Google made the statement about their acquisition of PostRank as follows:

“We’re always looking for new ways to measure and analyze data, and as social analytics become increasingly important for online businesses, we’re excited to work with the PostRank team to make this data more actionable and accountable. They have developed an innovative approach to measuring web engagement, and we think they can help us improve our products for our users and advertisers.”

As I said in my recent article about Klout, “I don’t think it is a good idea to become obsessed about statistics such as these, but I do believe it is valuable to be aware.”

If you are curious about how it works, or what PostRank knows about your presence on the web, I would encourage you to take a closer look and get familiar with PostRank.

This further emphasizes what I have always claimed, which is that SEO and social media marketing are entirely intertwined, and always will be. Through it all, I think it is important to note that Google wants to index your website, and they even go to great lengths to help you help yourself.

Please tell me what you think.

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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.

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Applebee’s Review Explains Why Companies Should Care About Online Reviews

Do people complain differently online than they do to your face? In most cases, you bet they do! Let’s have a look at why that matters, and how you can turn bad online reviews from a frightening fact of life into a benefit. First, here’s a short and relevant story from real life. It is my online review of Applebee’s Neighborhood Grill & Bar in Topeka, Kansas.

My wife and I worked very hard through the week. I am a web guy, and she is Owner / Chef of Mad Eliza’s Cakes and Confections … working hard is what we do.

After a long work week, we decided that our kitchen at home was closed for the day. Without deciding on a destination, we packed the kids in the car and headed out for dinner. As we drove down what I would describe as “restaurant row” in our town of Topeka, Kansas, we decided to go to Applebee’s. We figured it would be a quick place to eat, with something to suit everybody from ages two to 39. We had not been to an Applebee’s restaurant in a long time, but it didn’t take long to realize why.

Perhaps I would be a lot harsher if I had not waited ten days to write this, but I’ll be generous to say that they did a fine job with the ice water. As for the steak, it was absolutely without a shadow of a doubt the worst piece of meat I ever saw on a plate. It was as if Applebee’s purchasing department found the toughest cow in the pasture, put it on a treadmill for a few months to get rid of any tenderness or flavor, and waited for it to die of old age. Then they took the sick joke even further and sent it to my local Applebee’s, cooked it to a charcoal briquette and put it on my plate!

Note to Applebee’s: When a guy orders a steak “rare enough that a good veterinarian could bring it back to life”, and specifically asks for it cold, that means you don’t cook the damn thing into jerky!

That’s enough about the poor old cow … but how about that “baked” potato? It was cold … the way I asked for the steak. I could barely even cut it with the knife they gave me, and I am not exaggerating.

I hesitate to give an accurate Gordon Ramsay style critique, but mostly because I don’t want to curse that much on my blog … on a Monday. So, I made a video montage of Chef Ramsay to do the cursing at Applebee’s for me.

My wife suggested that I tell them about it, but I said … “I’m not going to be one of those people.” Of course, I followed it up by whipping out my phone, taking a photo, and saying “Nope … I’ll blog about it.” I am always looking for real-life experiences to blog about, so this opened the door to a topic of online reviews, and what could be better than a restaurant to demonstrate?

I don’t enjoy the personal confrontation, and I am not alone in this. Besides, if Applebee’s is running the kitchen that poorly, I can only imagine what kind of people are back there … and what they would do to my food if I told them they had done a bad job. Have you ever seen the movie “Waiting”? Here … watch this video “Why We Use Online Restaurant Review Sites“ to see what I mean.

Online Reviews Demonstrate How Customers Complain After They Leave

It may be easy to imagine that customers will exaggerate a complaint in an online review more than in person. There are surely instances of this, but the frightening reality is that people are often just being more forthright with their feelings of frustration.

It is easier to complain without company representation there trying to defend something that, as a customer in the heat of the moment, may seem indefensible. This holds true for both online and offline communications, but many people have come to expect less defensiveness from companies in online communications. One reason is because the company knows other people are watching, and another far worse reason is because the company is not watching.

Have you ever tried to complain to somebody who just didn’t seem to listen, or who did not give you the response you hoped for when you did complain? If you have ever encountered it, you surely know how aggravating that can feel. It is like an act of passive aggression, and it adds fuel to the fire. That is exactly how online complaints tend go, when companies are not listening. Here is the Wikipedia definition for passive–aggressive behavior:

Passive–aggressive behavior, a personality trait, is passive, sometimes obstructionist resistance to following through with expectations in interpersonal or occupational situations. It is a personality trait marked by a pervasive pattern of negative attitudes and passive, usually disavowed resistance in interpersonal or occupational situations.

It can manifest itself as learned helplessness, procrastination, stubbornness, resentment, sullenness, or deliberate/repeated failure to accomplish requested tasks for which one is (often explicitly) responsible.

Online Reviews Are Not Just for Consumers to Read

I find many instances of companies afraid to acknowledge their online reviews. I have heard people say things as absurd as “we cannot do anything about a negative review anyway” or “what if we respond to a review and people don’t like it?”

Being both a consumer, and a marketing strategist, I hope you can imagine how this makes my hair gray. What about the concern that these are customers who want to be heard, and deserve to be heard? What about the outcome if companies don’t respond … can they really somehow believe that people will like that any better?

Reviews are great for consumers. They may present their review as a compliment, as constructive criticism, or express their anger to a company where others can see it. In each case, they present opportunities for a company to come out better than before.

In some instances, a customer may just feel that their complaint is too petty to deliver in person, or they don’t feel like the outcome will be worth even the least confrontation. Of course, there is also the matter of hunting down and waiting for the right person to best direct the complaint. Have you ever waited for a manager in a store or restaurant, or waited on hold to tell your story? People really hate that, but online, there is no waiting to say your piece, and there are often other consumers there to cheer you on with a rant. This is especially the case if the company is not responding, or responds poorly.

An Upside to Bad Reviews

Even in the event of a dispute or a harsh criticism, there is a great opportunity to improve people’s opinion. Dispute resolution provides many chances to let people see your company in a completely new light. If you handle online reviews well, the opportunity for gain is even greater than offline communication. Then again, so is the loss … so it is important to get this right! Give it some thought before you react. Consider how others may feel. Whatever you do, don’t bury your head in the sand and act like you never saw it. That is pathetic, and that’s will just add fuel to an already destructive fire.

Try to look at it this way: Complaints are a customer’s way of giving you a chance to regain their faith and make them happy. Ignoring them is not the right answer.

I have just one more thing to add, before I leave you to write your comments and share this with others. Here is a closer look at that disgusting steak and potato that Applebee’s served. It does not quite look like the one in their menu.

Steak from Applebee's Neighborhood Grill & Bar, Topeka, Kansas

Addendum:

At the “brilliant” urging of a commenter, Lori Smart, I decided to add a copy of my receipt from this visit to Applebee’s. After all, as she said, “there is no record at the location’s management that you were even a customer there”. Here is that record, complete with the server’s name.

Here is a photo of my three kids across the table from my horrid Applebee’s steak. After seeing that nasty piece of meat, my dear little Madeline had to force a smile through the fear. 😀

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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

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