Bootstrapper.com - Confessions of Serial Entrepreneurs

Business Cards that are metro cards so you give a $2 rechargable metro card to everyone you meet.

The hardest part about creating an Internet business is not the product, is not the features, it is the marketing. In order to get traffic you need to spend money and hope that it takes off by word of mouth. There is no gaurentee that this will occur therefore there is no gaurantee of an online company’s success. Marketing formula’s that worked 7 years ago no longer work since there are so many systems out there now. Only the truly unique will prosper.

I’d like to publicly congratulate Pete Krainik for officially launching TheCMOClub.com site and social network for CMO’s around the world. It’s the first club bringing together just Chief Marketing Officers. It should be an amazing organization and I’m a huge supporter.

Pete also officially came on board as Chairman of AdSolutia so I’m psyched about that as well. If you are a CMO, apply to join!

So back again to what I actually do for startups. One of the most important things that I do for my friends and my collection of startups is something I dub Positioning. Now, I spent a long time trying to figure out what to call this but here is what I consider Positioning.

It is the overall development of a Sales & Marketing Strategy stemming from customer research and feedback and including but not limited to: Name Selection, General Branding, Niche Branding, Sales Pitch, Process, Training and Recruiting, Market Planning, Go TO Market Strategy, Traditional, online, alternative, napalm & hijack marketing. (this the verbose business school definition i came up with)

It’s a lot of stuff. At the end of the day its figuring out what your product does, how it solves a customers problems and figuring out how to most effectively get your product in your customers hands and make money. It’s a whole lot of crap. It’s basically what a CMO would do starting from the time a startup is the still in the womb of its founders and leading up to launch.

I was just discussing some of my personal marketing tactics with a friend and described them as “Napalm Marketing” where they are effective but you burn a few bridges. As you know, i’ve been a bit loud over the last few months trying to get my name out there more. We had the whole Silicon Alley People Choice Affair, my letter to Bill Gates, a voracious attack and discussion on the new your tech meetup discussion list against outsourcing to India and a period of a few weeks where I was so worked up and overworked that I became an arrogant prick. I apologize for the arrogance, I hate when I do it but it usually happens when I’m running too fast to have time to think. Now, I’m grounded so I’ll be fine. However, I do not apologize for my aggressive Napalm Marketing approach.

Napalm marketing is when you make yourself stand out and do audacious publicity stunts that achieve your goals but make you look like an asshole or showman in the process. Now, you may say that it’s not worth it. but it is. 9/10 people will know who you are as “that guy” and eventually forget about the tactics you employed. Also, just by getting your name out there, you are enhancing your long term credibility. After all, all press is good press right?

If people are ones that you can develop relationships with then those people will know who you really are and will forgive you though may castigate you for your audacious maneuverings - in the end, they will still take you seriously.

In the end you lose a few people that you didn’t know to begin with and at least those people now know who you are so if you run into them you have a talking point and hopefully can develop a relationship from there.

The most important point of marketing is that people are average has a very short memory for details, they only remembers grand generalizations (eye witnesses are notoriously wrong) and remember the old game “telephone” where you whisper something in one person ear and see what the last person thinks it was and almost always its totally different.

However, once you have achieved your goals of being more known and out there, DO NOT continue the tactics because eventually you will piss off your friends and then you are fucked. Your friends never forget.

PS. Dedicated to Larry

Lately people have been asking me to write a book about my theory of “Positive Manipulation”. I was asked as a result of a forum post on asmallworld that grew to 500 posts in a week, culminating with gaining me a fanbase and getting my forum rights revoked by asw (I called their webmaster an idiot and proved it - probably not so smart)

The theory of Positive Manipulation is that you can get people to offer you stuff that they wouldn’t give you if you asked for it. You can do this by being genuine. I realized “the rules” positive manipulation by reverse engineering my own networking approach. I’m quite certain it works because since I’ve begun vocalizing my approach - i’ve made a number of friends, very quickly without any of the bullshit we all normally go through.

My feeling is that the reason people have such a hard time making friends is that they are scared that the person across the table from them is trying to fuck them, either literally or figuratively - usually both.

So how do I counter that? I am transparent and honest and simply share my approach to life with people. I answer any question and volunteer the fact that i am a crazy entrepreneur and master manipulator so they don’t have to think it. I also offer anyone that asks FREE advice, advice I can charge a lot of money for (and i have reams of thank you notes to show the quality and appreciativeness) and if i feel the person is intelligent & serious, i make introductions for them - very targeted, usually high level introductions to people that can help them. I do this without asking.

I am essentially opening up my network and putting myself at risk. Because my network is so incestuous, if I fucked one person, my whole network would know and my reputation would be shot in 10 seconds. Therefore, I cannot afford to screw anyone. I tell people this. I also share with people stories of what an asshole I can be and what a nice person in fact I am. People ask me who I am, I don’t tell them my story (that’s available on my website) I tell them stories about me to show them my character & intelligence.

I also go further and try to separate people from their existing positions in life and ask questions to get at the heart of their true goals and aspirations. After all, we all love to talk, we just need to be asked the right questions in order to open up. Questions such as “Are you happy?”, “What do you really want to do?”, “Who Are You?”. “How Did you get here?” - are all good questions. BAd questions are questions about their current occupation. The way I ask questions people will talk indirectly about their current situation and will open up and tell you the truth instead of giving you the company line of BS.

What is the end result of my approach? I get people to offer to help me and put me in situations I couldn’t get if i asked because i had no agenda and helped them without them asking for help. I went out of my way for them, therefore they go out of the way for me. (I have a whole theory about self interest and motivating factors but that’s for another post)

It works. I have made lots of friends, gotten them to pour out their hearts and gotten them to do me favors - all within a few minutes of meeting them.

This works in business and normal life. It also works with the opposite sex as a way to attract people - with a few minor modifications (mainly the initial introduction needs to be manicured differently). How much money would you spend to be able to eliminate the bullshit and cut to the chase - and build real relationships in business or in dating? Think of all the wasted expensive dates…

So what does everyone think? Should I write a book?

Those of you lucky or unlucky enough to come into contact with me in the last few weeks have gotten to see me going through quite a number of changes. First I think I have fully grown out my set of balls, shown my humility, got a lot more intelligent and became a true marketer.

I don’t call it marketing though, i go beyond standard marketing - I call it Positive Manipulation & HIjack Marketing.

Yes, these are strong terms - but that is part of their beauty - i welcome the controversy over the terms because now you are thinking about me

My theory is that you never actually should enter a battle or negotiation, before it starts you should already be able to set the tone and steer the solution. I’m not going to get into the nitty gritty here but here’s an overview:

1) You must be relaxed
2) You must be willing to walk away
3) Your or your product must offer “perceived value” and always add it
4) You must be a good person and not use these powers for evil

You do positive manipulation by guiding people to do things for you by helping them. Here’s a simple story. A friend of mine runs an ATM company. He places machines in candy stores. When he puts up lots of signs in front of store - more people use the machines and he makes more money. However, every sign he puts up takes space away from the store. One of his signs fell down and the store owner called him. He went to the store and truly is friends with his store owners - he jokes around about payments - a sign of a real relationship and they offer him to put up a new sign in the best place in the store. They also said “thank you” for fixing the sign. Who makes more money off of the ATM? My friend or the store? My friend. because of his relationship they let him get away with making himself more money but he is adding perceived value because the store does make a little more money because of the ATM. It’s a win win situation but my friend got the better side of the bargain.

The key is to understand people’s goals and motivations and self interest and offer value in a way that they will seize on it and even get a little greedy (lust for it) and then they will go out of their way to help you and walk into your hands because you helped them first. Long term you get more value but they don’t care because you helped them first.

My issue with web2.0 is this: Lots of good products by people that don’t know how to market them. Viral marketing is a misnomer. You need to SEED viral marketing. You usually need to BUY your first 50,000 users. Once in a while there is an exception but you need to market.

Myspace for example was seeded. They had 300 employees and they have a contest where the employee who got the most friends would win $1000. The average person got 30 friends = 10,000 users.

Then they did email blasts to millions of opt-in records, probably another 40,000 users

In total they seeded it with at least 50,000 users in less than a week. Then it took off.

So Mr. Web2 - what’s your seed marketing plan?

Pick some influential groups with active listservs. In my business its the NY tech meetup. Start a controversy and post to it like crazy. Keep posting. Then post some more. Soon everyone in the industry will know who you are and what you are about. Just be careful - it could backfire - but if done well, it is extremely powerful

Richie

One of the least understood but most valuable tools any salesman can have is the ability to indirectly sell. What does that mean? It means getting people to talk about your product, putting the idea in your clients head, building a relationship but never actually trying to get them to buy it, maybe show it to them and ask for feedback but don’t try to hard sell them, don’t quote a price, just talk. Why? Because when they buy, they will feel like they wanted it and wasn’t sold anything so if it doesn’t work out, you’ll be bitched out less and they are likely to buy more and maybe buy into the hype because they weren’t sold, they bought.

This also holds true with investors. When you pitch for capital you are selling the dream not your product. The odds are that investor already saw that product from someone else - they will invest because they feel they can achieve the dream (of ALPHA) on your back. Sell that. Don’t sell your product.

For those of you expecting this to be an offshoot of The Art of Pitching, it is but it isn’t. I’m not talking about begging for capital but i’m talking about begging. I don’t understand why it’s not okay for people to beg on the streets but if you are a baseball team, it’s okay to send 10 years out on in the middle of the highway with a bucket to buy uniforms. It makes no sense to me how that is socially acceptable but begging on the street is not. So a drunk wants a new beer and a kid wants a new uniform - it’s the same recreational purpose! Additionally it’s fucking dangerous for kids to beg in the middle of the street, it is just wrong and should stop. Personally I don’t care if people beg, just leave the dam kids out of it. If you can’t afford your kids uniforms, you hit the streets, don’t send them. And for coaches that arrange this it is just shameful. Have a car wash, sell cookies or something but a bucket and a highway, come on. I don’t care how successful it is, it is just pain wrong. Additionally for those parents and coaches that support it, I hope you’re also supporting your local drunk and crack addict! Your encouraging the same behavior in your kids!

So by now you’re probably wondering what it is?

The answer is this; be a good person.

haha. you probably think I’m kidding I’m not. the most powerful networking tactic is to volunteer yourself to do small favors for friends. They don’t have to be big, it could be as simple as saving someone a seat in a conference or showing up at their office with a bottle of wine on a glum day. be nice and people reciprocate.

To go even further, I will show you what I do. Whenever I meet anyone that i think is a serious person and a potential good connection, I voluntarily introduce them to at least 2 people and as many as 10 people - without them asking. Of course the people need to be relevant to each other but they don’t have to have a specific purpose. Say you just met an entrepreneur in Kansas, you then introduce him to another entreprenuer in Kansas. Maybe they will be friends but they will appreciate it.

What is the effect of this? Well everyone you introduce will think you are super well connected and thus when you need something will be more inclined to help you out because they think you will be valuable to them in the future? Everyone loves you and it doesn’t matter if the people you connect ever do any business. They appreciate the gesture because no one ever does this. Heck, you can keep introducing people to the same 10 friends you already have. Sure you may not be a super networker but people will think you are and act accordingly.

More so, very few people ever volunteer referrals. This is for several reasons, first people are lazy, second people generally are not outwardly nice and volunteer to help, people are worried you may burn their friends, people want to take a cut and broker things.

If you actively volunteer introductions, advice or info, people are appreciate and remember that. They will give your name to people that need your help. If you are lucky you will find people that will volunteer to make 1 connection, if you are lucky. Most people you have to ask to tap their network. If you want to be a super connector, you must volunteer your network and make a flurry of referrals. It will overwhelm them, that is good. That means they will think you are a good guy and know a lot of people. One day you will need a favor from them and they will gladly do it because you spent 2 minutes and introduced them to 5 people they probably talked to once and then forgot about.

Everyone wants to know a super networker. You can be one now.

If you read all those fancy (and very good)M. Gladwell business books such as the Tipping Point and Blink, you learn about connectors. Connectors are those people you know that seem to know everyone. They are your friend Jim from college that whenever you find something you can and he comes through. In College maybe it was an ounce of hydroponic bliss but perhaps now its an invite to a sold show, a job referral or a new client.

Most people think hes a super networker, i could never be like him, I’m not social enough. Here’s a news flash, you don’t need to be social to be a networker superman.

I consider myself a professional networker. In fact it’s listed on my resume. Recruiters come to me all the time when they need people to hire and I have had friends tell otgher people “I don’t need to network, whenever I need something I just ask Richie”. While this may true and while AD (my friend) does not network and relies on me (which is dumb btw - always be able to do for yourself) he could easily do it. I’m going to share with the world my secrets to being a professional networker.

1) Get to know the host. If you are at an event, it doesn’t matter who you meet on the floor, they are too busy mingling to remember you, get to know the host. Oddly the host is usually the least social at the event because he’s worried about it and appreciates when people care about him. He also happens to be able to connect you with everyone in the room. Know the host and you know everyone.

2) Be Credible. Build credibility around what you are offering. If you do X, make sure you subtlely can prove you know your shit. You don’t want to sound like you are full of poop - people won’t remember you. Support your brand with a good business card, maybe a personal site with a blog and references on it. You don’t need to have a tier 1 domain (like bootstrapper.com) or an insane personal site (like RIchHecker.com) to stand out but you can do little things that help.

3) Have meaningful conversations. How many people you meet doesn’t mean poop for brains. Make a few quality connections. Don’t just pass around business cards. If you want to be a networker, people need to remember you. You don’t have to best friends but they need to be able to associate you with time/place/purpose if you want to be able to do my next point.

4) Leverage other people’s networks. Now, this has nothing to do with using people and even less to do with asking favors. It’s simply getting to know people and get to know what what makes them tick and who they know. Then when you need something casually bring it up and hint at it - if they are a good connection, they will volunteer their help. Don’t beg, market.

5) The single most powerful tool is….you will have to wait for my post next post….

The most important thing in business is customer service. I don’t care how good your product is. If you want to last for the long term, provide good customer care. Build a relationship with your customers.

Sending your customers to a call center in india, pakistan or whereverthefuck to read a predefined script is not customer service, it’s customer disservice. This is from someone that used to run a large call center company, which I did.

Care for your customers. LISTEN to what they want and give it to them. Empower your employees to give refunds, discounts or whatever they need to save customer. Don’t just have reps pass the buck. If t hey have to pass the buck then they shoud’nt be your customer service reps. Customer Service defines your business and quality care is the BEST WAY TO GET REFERRALS.

For those of you enamored by viral marketing, a little information, VIRAL MARKETING IS ANOTHER WAY TO SAY REFERRAL MARKETING.

Create positive buzz and your brand will survive even bad calamities. Handle situations by owning up to it, not denying it. The coverup is always worse than the scandal.

Me, I give all of my clients my cell and AIM and they can reach me 24/7. If you need me, call me. I rarely get late calls but when I do i take them. People appreciate it and actually call you less as a result knowing that they can is usually enough.

Think of yourself in your customers shoes. How would you want to be treated?

This message is intended for bankers and other such people that think saving money on cheap call centers is a good thing. IT IS NOT.

See you’re reading this….marketing works… learn it….

And don’t you love inuendo? it works…

The web2.0 strategy of if its good people will come to you is wrong. Every great idea needs seeding. Just ask Brad Greenspan founder of myspace, the first huge web 2 play. Myspace was seeded by 300 employees telling all of their friends and by sending out millions of emails promoting the site. Always market.

Even if you’re site is invite only market. Do negative pr - make people wish they could have an invite

If you don’t market you fail or you don’t succeed as much as you would if do market.

I don’t care what your investor says, marketing is more important that fucking whizbang product. Go ask Steve Jobs how the EXTREMELY defective nature of ipods hurt their sale?

My GF’s ipod EXPLODED in her ear…

Apple sells millions of them still…Apple has NEVER made a good/useful first generation product. Steve Jobs is just a marketing genius.