Archive for category Strategy

Hunters and Farmers – Seth Godin

Another bloody brilliant blog entry from Seth Godin. Click here for the article (one of those ones where it’s simple but you may not have thought about it framed this way…)

I love reading his stuff because I learn so much.

I feel uneasy reading his stuff because it makes me realise how much I have yet to learn…

A kid who has innate hunting skills is easily distracted, because noticing small movements in the brush is exactly what you’d need to do if you were hunting. Scan and scan and pounce. That same kid is able to drop everything and focus like a laser–for a while–if it’s urgent. The farming kid, on the other hand, is particularly good at tilling the fields of endless homework problems, each a bit like the other. Just don’t ask him to change gears instantly.

- Seth’s Blog

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Danger Will Robinson – Marketing of Marketing

Just a thought, has anyone else noticed that a lot of the “social media money” being made is by people/companies/organisations talking about how much money you can make with “social media”?

It’s started to feel a little bit like a 70s network marketing company. The products and services come second to the vehicle. Or am I just being cynical? I hope I am but I’ve yet to see hard figures on ROI through social media strategies.

Danger Will Robinson

Danger Will Robinson

I get the community building side of things. I get the idea of “tribes”. And I’ve no doubt that money can be made using Twitfacespace, I just wonder what the proportion of people trying is compared to the people succeeding.

A little known fact is that only about 1% of those people who do network marketing will succeed. There is a lot of obfuscation around that… and a loooot of rationalisation by those in the industry. And there is a whole lot of money being made selling seminars and books and audios on the “top ten secrets” that’ll have you rocketed to wealth… and the product/service comes second.

Looking at the interweb landscape today I see a lot of people hammering away with web strategies and social media strategies and making very little (i.e. negative amounts) money. Other than the guys selling the social media seminars. It’s fine to have 10,000 followers on Twitter but what have they done for you lately? Chances are, not a whole lot.

My thoughts are that social media has a definite place in many businesses. The trick, if there is one, is to not have the network marketing mentality of pumping time and money into something that doesn’t have a clear ROI. If you work out a strategy for how your social media presence is going to put money in your pocket then “go for it!” I say.

But, if you’re like many people and think that simply getting followers is going to pay for your new Ferrari, maybe it’s worth thinking again…

What Makes A Good Baker?

Question: “Whose bread would you buy? The bread made by the baker that spends their time working on the best recipe and new ways to make a better loaf, or the baker that has the best bread van and most advertisements?”

Next question: “Which bread would you prefer to buy?”

If you can see the fundamental difference in those two questions you’re a long way to figuring out the conundrum a lot of small businesses will find themselves in when it come’s to their online presence. So for the purposes of this article, let’s call the baker with the amazing bread van, popularised by ubiquitous advertisements, Jack. And our baker who focuses on making the best bread can be Jill.

Being honest, you’ll be most likely to buy Jack’s bread. You know about it. He gets the bread to you on time. And it’s bread right? Not the most complicated thing in the world when it comes to a purchase. You live in a happy enough world where you sometimes have a sandwich, sometimes have toast, and basically feel like your every bread need is satisfied.

Then one day, you remember a friend has recommended Jill’s loaf and you happen to be passing her shop. You stop in. You buy a loaf. And your bread world is never the same again! Never have you tasted such a loaf! Never has a sandwich tasted so good! Never has bread been this healthy for you (Jill uses ancient grains and all organic ingredients)! Jill charges more than Jack yet you would still pay more than she charges.

From now on, there is no question about where your multigrain toast will come from. Jack who? Jill has you as a customer for life and it doesn’t stop there. If anyone mentions bread, you mention Jill. Jill get’s more business and she never advertised.

So in your business, are you Jack or Jill?

If you’re Jack, then you’re spending a lot of time online building a social media presence, writing articles and following every new trend and fad so as many people as possible hear about you and what you do… and some of them may buy. You hope.

If you’re Jill then you work at getting better at your service, or creating a better product. Your online activity reflects your passion for bread. When you do contribute it’s because you’re interested – not because you’re thinking of the attention. The bread always comes first. You may not get a stampede of customers right now. But you know that with word of mouth, people’s loyalty to quality, people’s desire to pay for quality and a passion for what you do, you’re going to build a much more solid business.

Jill is not vulnerable to a new kid coming along with a bigger advertising budget, or more vans. Jack is.

Jill can raise her prices. Jack can’t (without losing customers).

Jill can change her recipes. In fact, her type of customer trusts her baking skills and expect new types of bread. Jack’s customers expect what was advertised.

Jack or Jill? Better to know and build your strategy.