Twitter Should Listen to Warren Buffett. He Was Right in 1999.

I am in the process of reading Alice Schroeder’s book entitled The Snowball: Warren Buffett and the Business of Life. The book is a massive source of information about the life of Warren Buffett. Needless to say the book is unbelievable! I love to read about the life of people who, in my opinion, have lived a valuable and influential life.

At the beginning of the book Alice recounts an event from the Sun Valley Conference in Hailey, Idaho. Allen & Company, a boutique investment firm in Hollywood handles the event inviting such notables as Bill Gates, Oprah Winfrey, and Rupert Murdoch.

In 1999 Warren Buffett was asked to be the keynote speaker to end the conference. This was a special year because the conference was filled with Internet tycoons ready to embark on billion dollar ventures in the new year. They were invited and were making the most of rubbing shoulders with the richest individuals around the world.

The Internet tycoons walked into the conference room that day hoping for a glowing reception and the blessings from one of the greatest investors of our time. What they received was quite the opposite.

Warren Buffett practically dismantled the belief in the new Internet startup companies. He likens the Internet Boom to that of the airline industry:

“…So I submit to you: I really like to think that if I had been down there at Kitty Hawk, I would have been farsighted enough and public-spirited enough to have shot Orville down, I owed it to future capitalists.”

“It’s wonderful to promote new industries, because they are very promotable. It’s very hard to promote investment in a mundane product. It’s much easier to promote an esoteric product, even particularly one with loses, because there’s no quantitative guideline.”

Warren Buffett, pg 19.

Most of the venture capitalists and entrepreneurs left the meeting slightly chuckling at “old Warren’s mistake.” They found out later that he was exactly right.

Web 2.0 companies should listen to Warren Buffett. He has always cautioned the vamping of over-promoted companies and increasing investment in techonolgy companies with no substance.

“You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” -Warren Buffett, page 21

I have always been a skeptic of increasing investment in social media and web 2.0. I do love the sites and I love the fact that they are free. I have a problem with the valuation of multiple billions of dollars for the site like Twitter.

This is a dangerous game we are playing when it comes to the multitude of millions of dollars invested in Internet startups. I am afraid we never learned to begin with.

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Why Do People Follow Brands? Conversation or Deals?

This is the second post about the Razorfish FEED 2009 Report… as promised. I was reading a post from my friend Todd Muffley over at Fat Atom and it got me thinking about the future of online communication. His post is entitled, “Is Social Media One Big Coupon Book?” The premise of the post is captured in two sentences:

“If Social Media does become one big coupon book, watch out Newspaper, Magazine, Radio, TV and Direct Mail (to name a few). The old school push model of coupon distribution may just go the way of the VCR.”

The post is (of course) fueled by the Razorfish study which states that of “those that follow a brand on Twitter, 44% say that access to deals is the main reason. The same holds true for those that added a brand on Facebook or Myspace, where 37% cite access to exclusive deals or offers as their main reason.” (pg 9)

Now, the Razorfish study does not give a voice to all 200 million people using broadband Internet access but it does create a platform for discussing the main draw of social media. I would venture to say that the main reason a user FIRST joins a fanpage or follows a brand on Twitter is because of a contest or promotion. Once the individual becomes a fan the SECOND step is interacting with that fan in order to build some type of trust. Repeat customers are the best customers… nay… repeat customers with friends are the best customers.

There is always a conversation buried in the depths of a relationship being built between a customer and a brand. Where that relationship starts? Who knows? The important thing to remember is to have the conversation… which eventually leads to conversion.

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130 Million Are Being Influenced Online

I was reading the new Razorfish FEED Digital Brand Experience Report for 2009. This report is unbelievable and has some amazing statistics to help further the goal of increased use of digital marketing. I am going to be devoting the rest of this week to breaking down the Razorfish report.

At the beginning of the report Razorfish states:

65% of consumers report having had a digital experience that either positively or negatively changed their opinion about a brand. 97% say that their digital experience influenced whether or not they eventually purchased a product of service from that brand.

Razorfish surveyed 1,000 U.S. consumers (50.5% female, 49.5% male) in four major age groups. The consumers that were surveyed have spent $150 online in the past six months and have broadband access to the Internet. According to the PEW Internet & American Life Project, about 63% of all Americans today have a high-speed Internet. The use of broadband stat stat roughly translates to 200 million people.

With 65% of broadband users being influenced by brands online (130 million) it may be important to start debating importance of digital marketing. The use of the Internet is only going to increase over the next 5 to 10 years. It is important for brands to start learning and educating their employees and consumers on the values of digital marketing.

What is even more important than the 65% statistic is the fact that almost ALL of the 130 million people influenced by a brand made the decision to purchase (or not purchase a product) based on their digital experience.

Decisions are being made online. Are you putting enough emphasis on your digital brand… or are you wasting that money on a stationary billboard that individuals can not interact with?

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The Arrival of My Twitter Marketing for Dummies Book

I have been waiting with great anticipation for the delivery of my book, Twitter Marketing for Dummies. It has been a long (but awesome) process of writing, editing, and brainstorming over different concepts involved in marketing through Twitter. I couldn’t have done it without Erik Deckers, the Wiley Staff, Manny Hernandez, and the staff at Brandswag. It was a fun 7 weeks of writing and I am looking forward to what the future brings.

If you have not picked up the book you can do so through Amazon.com (click the link) or through your local bookstore on November 18th.

Some general things you will learn by reading the book:

• Using Twitter to communicate with your customers
• Utilize tools to maximize your Twitter prescence
• Build and use your network to psread your message
• Measure the success of your efforts

It has been fun and I am looking forward to the feedback from the book!

Quality, Service, and Expertise Do Not Matter

I am currently in a sales training class at Trustpointe, a Sandler Sales Company, who I highly recommend  to anyone looking for sales training and expertise. We were talking about the idea of quality, service, and expertise not mattering when involved in marketing communications. I have been wrestling with that concept over the past 48 hours and decided… who best to ask?

I have been under the assumption that it is absolutely idiotic to use “best customer service” in marketing communications. I’m still convinced that you have to be a little more creative  to gain the attention of a consumer base when using traditional marketing… even more when using social media marketing.

Plain and simple… everyone has quality, service, and expertise. What makes you different from everyone in your industry? If I get hit with marketing that says “Best Quality since 1889
“… Do I really care? No. I don’t.

I care about how you personally take care of your customers. I care about how you go about your daily routine.

Seth Godin has always said that people have come to expect that you have quality, service, and expertise… you do not have to keep telling us… show us.

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Quit With All the BS. Let’s Create Business!

I’m tired… and I do not think it is from the daily grind or the work load at Brandswag. I am pretty sure it is from all the BS that is circulating in the world of social media and marketing.

I’m tried of reading blog posts about the death of social media experts or how there is no such thing as an expert (I’ve written a couple myself)… or the rise of the new “PR” firm. I’m tired of listening to people drone on about the importance of ONLY using traditional marketing and how social media is just… not for everyone (preaching to the choir here).

Hot air. Hot air. Hot air.

There are plenty of ways to use social media (research, marketing, customer support, internal communications). There are plenty of ways to make money off of yellow pages. Yes, you should still be sending out traditional press releases and YES… you should be using traditional means to meet and sell clients.

It is all about integration… whether you like it or not… social media is going to be around and traditional marketing will still be important. They will be one… one powerful force for customer communication.

Shouldn’t the main goal of your daily routine be making money for your clients? Shouldn’t the main goal be delivering creative and strategic programs to create SUCCESS? We all like a good argument but if the argument was made 10 months ago about social media or marketing… you probably shouldn’t bring it up again.

We can play the edge for a long time and I have done it with success… but it is time to focus on the success of clients and business… not the success of an idea or ego.

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I Received My MBO Degree Yesterday

I attended the Masters of Business Online Conference yesterday in Indianapolis and I am happy to say that is was AWESOME. I really enjoyed hearing the presentations and getting to know plenty of influential people from the city of Indianapolis and abroad.

I had a great time at my session, Evolve or Die: The Future of Online Communication, and as promised (to the crowd) I am going to be placing the slidedeck on my blog to be viewed. The slides do not give the depth of the presentation but it gives you a sneek peek into what we were talking about…

If you want to check out what people were talking about in regards to the conference. Check out the Twitter feed: #mbo09 or click this link.

10 Ways to Stand Out from the Crowd and Win

In today’s turbulent economy it is extremely important for every business (both large and small) to stand out from the crowd. Brand awareness is huge in the competitive world. It is no longer good enough to deliver a superior product or customer service experience…. you need to be known as well.

How do you use the tools on the Internet (mainly social media) to increase your brand awareness and drive the competition into oblivion? And by oblivion I mean… the junkyard of dead businesses.

1. Start a Blog

In my opinion, starting a blog is the center point to all marketing activity online. If you are going to be spending time in social media it is extremely important that you have a central location for all of your content. People want to connect with you on a completely different level once you have started the communication process. Use WordPress to start a blog. When writing content it is important to schedule blog posts ahead in order to be completely successful at managing your time.

2. Develop An Outstanding Identity

Branding is huge when standing out from your competition. If your logo and brand identity have a unique twist from a quality design firm… you will be able to reap the rewards.

3. Use a Flip Cam to Record Customer Testimonials

Flip cam is a unique video camera that allows you to record up to 60 minutes of high-quality HD footage. The Flip cams are small enough they can be taken anywhere… anytime. You never know when you might have the chance to record a customer or an employee talking about your company. Upload the videos to YouTube and play them on your website.

4. Start a Referral Program with your Current and Past Customers

5. Tell stories about your daily routine

Many customers (both potential and current) want to learn about your company from the actual individuals running and working behind the brand. Tell stories about the daily encounters inside the firm. Did you have a trip to a local amusement park? Did an employee win a race or a exhibition league championship? Business is personal again.. now is the time to shift the way you communicate with the world.

6. Create a Facebook FanPage to Showcase Your Ideas to Your Fans

Facebook FanPages are amazing tools withing Facebook that will add onto the human capital value of your company. Ben McConnell from the Church of the Customer gives an excellent idea surrounding Facebook FanPage marketing:

When fans interact with a fan page on Facebook, that interaction is sent through the fan’s news feed, which goes to all their friends, practically daring a chunk of them to see what the page is about.

7. Use Email Marketing to Stay in Front of Prospects

Email Marketing is not dead and it will give you an edge over the competition if done right. I will leave this up to the professionals over at Delivera: If You are Going to Win. You Have to Play the Game!

8. Sponsor a Tweetup or Social Media Meetup

I know.. I know.. Tweetup sounds like a complete GEEK fest! If can be a huge source of potential clients depending on your demographic. There are many small business and c-level employees who have started to attend Tweetups. I have yet to see a local Tweetup sponsored by a company. If you are wondering how many Twitter users are in your general area try Twellowhood.

9. Fully Utilize LinkedIN Recommendations

In my opinion there is nothing more powerful than a LinkedIN recommendation. Why is that? You can only get so real (other than video) in the world of the Internet. A LinkedIN recommendation gives your happy customers the ability to give you the KUDOS your company deserves.

10. Encourage Your Sales Team to Use Social Media for Lead Generation

Sell by Educating Through Social Media

Seth Godin had a great blog post yesterday talking about the fear of apples and the top two reasons people are not buying your product:

1. They don’t know about it.

2. They’re afraid of it.

Haven’t we been dealing with fear quite a bit this year? If you are a sales person (which most small business owners are) you may have seen the effects of this fear on your bottom line. The down economy has been killing the “risk-taking” gene of many professionals from corporate level employee to small business owner. The “risk-taking” gene is that diamond in the rough that allows for business to exist… to flourish. It reminds me on the William Shedd quote: A ship is safe in harbor, but that’s not what ships are for.

Are your clients clamming up? Are potential customers not buying because they do not know about your product or service…. or they are just… afraid?

Companies that use social media for lead generation and product information have a huge advantage over the companies that do not use the tools. Social media gives you the ability to inform your potential clients on products with stories! What better way to inform?

Be honest with me… would you rather read a story or boring product/service information?

I would rather read a story… every… single… time.

What stories are you telling your clients?What about your potential clients? Do you have a blog where you are writing your business stories? The marketing for your business should read like a book… a book of stories… a book where your potential leads learn about your company.

When the time comes to buy on a product or service… who do you think they are going to call? You or the business who doesn’t care about educating through stories?

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2 Steps to Starting Social Media

We all have to start somewhere right?

1. Start A Blog About Something You Love and Be Authentic

I know the concept of authentic content has been thrown around here and there between social media experts. It is a common practice to write about the concept of authentic content and communication. Many people ask the same question when debating on starting a blog: “What should I write about?” Write about something you enjoy! Write about something you do on a daily routine. Do you enjoy collecting stamps? Do you enjoy watching soccer and following sports?

I write about social media because I love it. It is easier for me to write because of the joy I find in learning about all things social media.

Write about something you love and find other people who are writing about the same thing. Utilize google alerts to find the people who share the same interest.

2. Start Small. Join a Regional Social Network and Dive In.

We have talked about regional (geographically based) social networks before in earlier posts. I am a member of a regional social media community called Smaller Indiana. I have found that my visibility as a business owner and social advocate has greatly increased because of my use of Smaller Indiana. If you are trying to build a personal brand identity through using social media a local social network will give you amazing exposure to local people.

It is getting harder and harder to make a name for yourself on the Internet when you are competing on a global scale with millions of individuals. If you focus on a niche geographic community you will find that it is slightly easier to be recognized. In order to get the most out of a geographic community don’t leave your relationships on the web, go out and meet the individuals you are collaborating with. A cup of coffee will go a long way at facilitating the building of a personal brand between two individuals.

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