They’ll Ruin It

So the big news is that Facebook acquired Instagram for a cool $1 billion dollars (I can't even type that without thinking about Dr. Evil). A billion dollars is a lot. It's big. To put it in context here is how it stacks up with other photo acquisitions over the years.

Chart-of-the-day-exits-by-photo-sharing-start-ups-april-2012

I mean it is big. And it is big because the future of social is mobile and the essence of Facebook is sharing pictures. Regardless of the price I can see why they did the deal.

Insta was becoming a threat to Facebook. I first noticed this during a trip to my nieces Bat Matzvah two months ago. Insta was becoming the social network of choice among the 13 year old crowd. My 12 year old picked it up. My 13 year old declared "Facebook is boring." 

And it was moving up the age stream real fast. Abby, my wife of a certain age, was using Insta. It is actually the first social network that she ever actively used. Insta moved her beyond the necessity of LinkedIn and her voyeurism on Facebook to actually engaging and posting on a social network. Upon learning about the deal via a Facebook post by me she actually made a rare Facebook comment "Say it isn't true! They'll ruin it."

I don't know if they will ruin it or not. I hope not, as Insta is one of my two favorite social networks at the moment (the other being Foursquare).

I do know this. A billion is a big. I hope Facebook makes it work for itself and for the Insta users.

April 10, 2012  |  Comments  |  Tweet  |  Posted in Current Affairs, Social

Partnership Marketing

The other day I wrote about the partnership that Half Off Depot and Google had entered. It's a big deal, but perhaps even more important then the deal itself was what it signified. Half Off Depot has grown to the point where it can do some partnership marketing.

Six years ago, I wrote an article on the stages of consumer Internet technology marketing. To quote myself:

As a company grows and starts to gain a little traction in the marketplace a wealth of partnership marketing opportunities can be pursued. These are business development channel type deals that can get a small but growing company much broader distribution and market credibility by associating with larger brand names if the right partners are chosen.

The key point being the last sentence. Once you reach a certain scale a small technology company needs to focus on continuing to grow by pursuing deals with larger companies that can give them more credibility and reach. 

March 20, 2012  |  Comments  |  Tweet  |  Posted in Half Off Depot, Marketing, Startups

Sleeping With The Enemy

This week was pretty exciting at Half Off Depot. Google announced that they were expanding their Offers program to include more cities and more deal partners. Half Off became one of 30 Google Offer partners. We have long considered ourselves to be a top ten participant in the online deal market so this in some way validates our position. And given the number of deal companies out there that puts us in pretty elite company. 

But the same response from almost everyone that I talk to about the deal is this. "Google Offers is a competitor, why do you want to work with them? Aren't you worried about Google stealing your customers or merchants?"

The answer to the latter is not really. The Google folks seem ernest and well intentioned. They are very professional and responsive. They care more about the customer experience then about money.

The answer to the former is that it seems to be a really good fit. Half Off Depot has a sales team that is second to none backed by a behind the scenes service offering that is really interesting to merchants and a unique approach to the space. This enables us to secure great local deals. Google is Google. They have unsurpassed reach on the Internet. A vast audience. When you combine our great local deals with Google's vast reach I think there is a way there is a way for us to work together to help both of our causes. 

So we did the deal. It has great promise. Sometimes doing a deal with a competitor is the right thing to do.

Beyond the potential of the Google partnership itself the deal signals something even greater. Half Off Depot has grown to the point where there are a number of logical partnership opportunities. Time to pursue them.

March 16, 2012  |  Comments  |  Tweet  |  Posted in Deals, Half Off Depot, Marketing

Remember Where You Came From

So about a week ago I posted an article about the eight qualities of remarkable employees. It was inspired by an article by Jeff Haden and he is back at it again with the five qualities of remarkable bosses. I try to live by some of the qualities that Jeff points out like never asking an employee to do something that I would not do myself. But his last point really hit home. 

Always remember where you came from.

To some of your employees, especially new employees, you are at least slightly famous. You’re in charge. You’re the boss.

That's why an employee who wants to talk about something that seems inconsequential may just want to spend a few moments with you.

When that happens, you have a choice. You can blow the employee off… or you can see the moment for its true importance: A chance to inspire, reassure, motivate, and even give someone hope for greater things in their life. The higher you rise the greater the impact you can make—and the greater your responsibility to make that impact.

In the eyes of his or her employees, a remarkable boss is a star.

The pressures of trying to grow a startup make it so so easy to blow off an employee that wants to chat for a few minutes. A manager's most important job is to help their employee's do theirs. Doing that means being available for them when they need you, not just when it is convenient for you.

March 12, 2012  |  Comments  |  Tweet  |  Posted in Management

Social Is Big, Mobile Is The Future

Over on the Nebo blog Kevin Howarth is doing a series of interviews that feature marketing thought leaders both locally and nationally. Kevin was gracious to ask me to participate and we had a fun conversation about interactive marketing. Kevin’s interview, with much better graphics than FoG, is being republished here with permission.

What do you feel is the most important aspect of how interactive marketing has developed over the last few years?

Interactive marketing has transitioned from command and control to a more user-generated focus. For any online marketer to be successful, they have to embrace user-generated content and online communities. That means empowering communities to help them spread the word about a company’s products and services. This kind of focus has led to a heavier emphasis on customer service. If you don’t have happy customers, then they’re not going to talk about you. Or they’re going to say bad things. The vast majority of good marketers understand that they are no longer 100% in control. Five years ago, people really didn’t understand this lack of control but I think they understand it now.

How is search and interactive marketing impacting how companies start up their businesses today?

It’s where they start. When a company begins, all they have are themselves and some word of mouth elements. An online presence via social is the least expensive way to amplify what you’re trying to do. SEO and SEM are obviously very important as core aspects to any technology company’s marketing. For example, at Half Off Depot we’ve seen that the way local merchants used to go to market has gone away. The Yellow Pages, local magazines and newspapers are gone or in steep decline, and merchants need a way to market online. We help them with the online piece so that they stay in front of their customers face-to-face.

Companies also have to figure out where “home” resides. Home might be their webpage, or it might be a Facebook page. Either way, companies really have to integrate social from the start while building this “home” presence. Website design has really started to emerge as a competitive advantage. For example,Fab.com is a beautifully designed site, and they actually used design to demonstrate how they’re going to be different from competitors. I don’t think people talk enough about the importance of good design or take into consideration how it can really impact the customer experience. In turn, customer experience can impact word of mouth and viral marketing.

What’s your current assessment of the Atlanta marketing community?

In my opinion, Atlanta is very strong from a technology marketing perspective. But we do a bad job letting the world know about it. We have established well-known companies like MailChimp and WhatCounts, and there are a number of email service providers like Silverpop. There are also quite a few companies starting to play in the social space, and we still have a strong cluster of traditional interactive marketing companies. Atlanta marketers have such deep domain knowledge of interactive marketing that it’s inevitable that they’re starting to apply that knowledge into different verticals and new emerging areas. At its core though, Atlanta is best at B2B. Even the more well-known consumer-focused companies have a heavy B2B bent, and a lot of Atlanta’s marketing companies direct their energies toward that demand.

You’ve mentioned social quite a few times. Why is social so important in today’s marketing climate?

The opportunity for social is understated. Everything is eventually going to be that way. Today, my teenage children cannot imagine a world without the Internet, and they are part of a demographic completely immersed in social. I think marketing is eventually going to become all social, and social is going to be one of the primary marketing drivers as other traditional mediums continue to fragment.

And how does mobile play into the mix?

Social is big, but mobile is the future. Anything that you wanted to do on a computer five years ago, you can now do on a three by six inch device. Today, I think it’s still a little bit difficult to do ecommerce on a mobile device, but that’s quickly going away. Behaviorally, people are not afraid to buy things on a device. It’s just hard to do sometimes because of the initial set up and ease of use, but that’s all going to get solved. For example, Square is making it easier for phones to accept credit cards, and local Atlanta startups such asWhisper Communications are also emerging into this space to help make B2B mobile transactions easier and more secure.

What are your thoughts about how marketing measurement has changed over the years?

If you look at one of the primary drivers of why interactive marketing is growing so quickly, it’s because people are spending more and more time online. That’s half of the equation. The other half is that interactive marketing is much more efficient than traditional marketing from a structural perspective. Not only is it less expensive online versus offline, but you can very accurately measure the effectiveness of what you’re doing in real dollars and cents. More and more companies are demanding that kind of measurement, and I see that trend continuing as audiences fragment and spend more time online.

How does content strategy fall into the marketing mix?

Content is king again, but it’s not necessarily because the content is truly unique. It’s because it will drive traffic to your site. You need good, strong, consistent, and deep content in order to effectively drive traffic. You’ve got to give people the content they want, in the format they want, at the price they’re willing to pay, and when they want it. There are many different variables, but the people who are successful at putting those things together are really good at getting people to buy their products and services.

What marketing trends do you feel will have the most impact in 2012?

Marketing spend will continue to follow people. People are spending much more time on the Internet than they did in the past, and marketing dollars have yet to completely follow that trend. Marketing dollars will continue to go where the people go. Right now, people are on social and I see that trend continuing for the foreseeable future until the next “social” emerges. I often talk about how there were the PC wars, the browser wars, the search engine wars, and the social wars. We had winners in each one of those categories. I don’t know what the next war is. But there is going to be something that pops up that’s truly disruptive and that no one’s really thought about. Consumers will interact with technologies in ways that we can’t even think about right now.

March 9, 2012  |  Comments  |  Tweet  |  Posted in Internet, Marketing, Mobile, Social

Get Rich Once

I recently had a meeting with one of my long-term financial advisors Rusty Holcombe. He has his own firm, Holcombe Financial. As always the meeting was thought provoking. To say Rusty is a contrarian is quite the understatement.

As we we leaving Rusty gave us a few books. One on top grading sales, finding good employees, and how to unlock business profits. He also gave us a book of his own. You Should Only Have to Get Rich Once. It is bascially completely counter to any advice you have ever received from the finance industry, or what Rusty refers to as toxic financial advice. 

The starting blocks to financial health according to Rusty are:

  1. Don't pay fixed bills with variable money.
  2. Build your saftey net.
  3. Invest for cash flow.
  4. Enjoy life.

Not a bad list though I am not sure that I totally agree that point number three applies to most people.

One of the more interesting things about Rusty is how he is marketing his book. His goal is to give away a thousand copies this year. I thought I would help him out.

March 7, 2012  |  Comments  |  Tweet  |  Posted in Books, Personal

8 Qualities of Remarkable Employees

So I came across this article the other day at Inc.called 8 Qualities of Remarkable Employees by Jeff Haden. Here's the quick list.

  1. They ignore job descriptions. 
  2. They’re eccentric.
  3. But they know when to dial it back. 
  4. They publicly praise.
  5. And they privately complain. 
  6. They speak when others won’t. 
  7. They like to prove others wrong.
  8. They’re always fiddling. 

The link was sent to me by one of Half Off Depot's investors. The note simply said "this describes you." First time I ever took being a bit quirky as a compliment.

February 29, 2012  |  Comments  |  Tweet  |  Posted in Management, Personal

College Degree Required

So I week or so I tweet out that I was looking for a receptionist. Entry level college grad was the gist of it. I got four potentials on short order but I also got a few questions. College grad to be a receptionist? Really?

Well yeah.

While I am looking for a receptionist, and about five other gigs for that matter, it is really a bit more than that. I am looking for smart people that can grow and contribute in a startup environment. Two of the things it takes to do so is smarts and drive. Rightly or wrongly having the gumption to go get yourself a degree can serve as an indicator of those two things. It's a screen. A proxy of some sort. It is why Google only hires from top tier universities. 

A gotta add that one of the people that questioned me is one of the smartest technologists that I know. A Georiga Tech drop out to play CTO for a hyper growth startup. About four successful ones at this point. Sometimes a degree just slows you down.

February 28, 2012  |  Comments  |  Tweet  |  Posted in Management