The key to on-line marketing is organic traffic

/ Robert Pease / Leave a comment

This came up twice last week and is consistent with a realization I came to some time ago regarding search engine optimization (SEO) and search engine marketing (SEM).  No, I'm not hating on these disciplines or the service providers that deliver them.  I am, however, trying to shine some light on what to expect from them and how to use them to your advantage.

I heard (roughly) the title of this post twice last week – once from Marketo CEO Phil Fernandez and again in the Dharmesh Shah video and notes posted Saturday (BTW, very cool of Dharmesh to thank me for the post in a comment – he gets it). Phil used a phrase I really like during his panel – "being smart in the market."

Being "rank worthy" is not about picking the right words and bid price to make sure you are in one of the top four ads served or trying to use words in your web site content that will get you search hits.  It is about being smart, relevant, and compelling in what you project to the market. 

Static content is out of date the minute it is posted.  Dynamic content like blogs and even micro-blogging services like Twitter allow those that are looking for products or services like yours to find them without an ad and on their terms.  The bar is higher, but buyers have access to more information than ever before and if you aren't part of the resources they tap during the information gathering process you will be left out in the cold.

If you can afford an Aston Martin, do you really need Msft stock?

/ Robert Pease / Leave a comment

I get one paper – The Sunday Seattle Times.  Even though we have no shortage of on-line/real-time news feeds these days, I still enjoy thumbing through the paper on Sunday morning with a cup of coffee.  Call me old fashioned.

Anyway, the ad below caught my eye today (on the back of the business section) and wanted to share it here.  It definitely hits on Marketing 101 concepts of promoting with an offer (buy car, get stock) but I found it being applied to an Aston Martin purchase a bit interesting.

I love these cars and if I ever have the means, I will own one.  Unfortunately, I am not in a position to take advantage of this offer.  Maybe you are so give them a call.  I'm sure they'd love to hear from you.

Aston

What you need to hear about the business of software

/ Robert Pease / 1 Comment

This is a great use of an hour of time (for real).  I have not met Dharmesh Shah but follow his blog OnStartups and would love to have the opportunity to meet up some day.  I am also intrigued by his most recent company – HubSpot.

Below are the notes I captured as I watched this.  Great stuff. 

  • A small exit is a good exit (but not if you take VC funding so be aware of the pros and cons)

  • Be wary of the "attention economy" as advertising-based models are perilous

  • Enterprise software selling sucks

  • If you want to do a start up, get started

  • Get your product or service out there and charge for it asap – people will tell you why they won't buy it

  • Downsides to SaaS business models – margins aren't as good (b/c of COGS – you are running your own software); human costs; subscription shifts risk back to vendor

  • Focus on total cost of customer acquisition (references Constant Contact); $300 sales/mkting/mkting programs cost versus lifetime value of customer($1500); factor in churn

  • Drivers of that business: lifetime value and cost to acquire; focus on churn rate

  • What can the usage data tell you?  CHI (Customer Happiness Index) is a probability calculation that a customer will stay with you; Did the customer log-in plus usage patterns; Customers that use this feature stay with us, those that don't use it leave; This data will make product management work

  • On partnerships – don't do them.  The 900lb gorillas don't care (even though they act like they do); as for start up partnerships (you both want the same thing – looking in the mirror); but distribution partnerships can work if there is an established process and model.  Beware the time/resource suck from these efforts.

  • On marketing/lead generation – create an industry/market blog (even before product) to get feedback, establish your reputation and domain expertise, will also help you understand if there is a there there; reduce market risk as early as possible (will anybody buy what I built?)

  • Google Adwords – created an efficient market to connect sellers & buyers but still a Google tax involved (that is what organic search is all about)

  • CPC is a 'morphine drip'; you become a victim of the latest market entrant who bids up the price

  • Get good at being found in organic results (longer term b/c it is harder); upfront investment that pays off over time; make sure your website is best search result possible (be rank worthy).

DS_onstartups

Last slide first

/ Robert Pease / Leave a comment

There were lots of great presentations at the SIIA On-Demand conference in San Jose this week and I'll be posting some thoughts about what I learned over the next few days.

One of the highlights was a presentation by NetSuite CEO Zach Nelson and his first (and last) slide.  He told a short story about this being the way to do a presentation from his early working days at Motorola.  The then Vice Chairman (missed the name) told him to skip all his foils (pre-Powerpoint, egad!) and put up the last one.

We have all gotten away from this with too much Powerpoint in our lives and I promise I will now start all my presentations with the last slide. 

Enterprise lead & demand generation for early stage companies (full list)

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This series of posts has proven popular so thought I would re-post the complete list with hyperlinks.  Enjoy.

1. Brokered introductions
2. Partner marketing
3. Direct outreach & appointment setting
4. Tele-prospecting/tele-surveys
5. Guaranteed lead generation programs
6. Sponsored email blasts
7. On-line advertising
8. Email newsletter nurture programs
9. Direct mail
10. Events
11. Market awareness – self generated
12. Market awareness – through a PR firm
13. Analysts
14. Print advertising

Sign of the times

/ Robert Pease / Leave a comment

Boston College is no longer going to give incoming freshman email (via ReadWriteWeb).  They'll get an address that will forward to their preferred existing inbox vs. an actual inbox.  Here's the story.

This is an interesting story and touches on a trend we will see more of as younger folks enter the workforce with their on-line identities already established.  Of course, the workplace is different than college and the need for proper partitions between what is public and private will become even more important as will the ability to centralize, manage, and integrate the various message flows that come and go.

Spotting a turnaround vs. growth opportunity

/ Robert Pease / 2 Comments

Unfortunately many of these points have been learned by living them.  If you are looking at an early stage company, make sure you get a true understanding of the state of the business.  The longer a start up has been around, the more "scar tissue" from previous decisions, actions, and mistakes.

The 'experience' and background of the team, representations made by employees or recruiters, cash in the bank, investor/VC support, etc. are really not enough to accurately gauge an opportunity. 

Everyone is selling so be sure to get to the core of the business quickly.  Here's  a handful of questions I suggest you get answers to before taking a position:

  • Tenure of VP Sales
  • Tenure of VP Marketing
  • How many predecessors in each role and why aren't they there anymore
  • Tenure of CEO
  • How many predecessors in the role and why did they leave/why were they terminated
  • Level of operational/day-to-day engagement
  • Identify the last 5-10 deals closed
  • What was the deal close timing including how near/far apart and where they were on the calendar
  • When they entered the pipeline
  • When they were forecasted to close
  • Their dollar/revenue size
  • The lead source & similarities in sources among them
  • Implementation/activation status for these deals

The answers to these questions will tell you if you are staring at a turnaround opportunity or a growth opportunity.  You can then decide what you're up for as both have their pros and cons.

Oh and get a demo.  If they can't show it to you or if they do and it's not compelling, you'll have a great indication of what lies ahead.

How to start a company

/ Robert Pease / Leave a comment

Gist CEO TA McCann did a really nice presentation at Friday morning's NWEN venture breakfast in Bellevue about launching a start up and going from "0-25mph."  Some really great advice and nuggets in here.  Here's his blog post on it.

It was a great crowd and I made some new friends which is always a benefit of these types of gatherings.

Also, if you haven't signed up for the Gist beta, you can do so here.

http://docs.google.com/EmbedSlideshow?docid=dccqkkbj_67qd78rcc