If I… Was a GroupOn Freak-o-Matic
I am not a coupon whore. Not even close. And although the economy has knocked us all on our butts, I still only participate in coupons if the stars align just right and I happen to see a coupon, happen to have time to save it, cut it, not lose it, not smoosh it to bits in my handbag, take it to the grocery store, need the item, buy the item and remember to redeem coupon. For 25 cents off, this seems like a lot of brain power. Nope, not a coupon type person.
Until Groupon. And SavvySource. And Fresh somethingruther, Daily Deals, Juice, Mamapedia, Group Swoop, Yipit Do it buy it fry it try it. Oy.
Unexpectedly, I have become a complete Groupon junkie. And likely, so have you. There is going to have to be some consolidation in the space. And if I were the czar of all things group buying I would focus on the following four things:
1. Think Vertical. It makes no sense to use similar technologies to accomplish the same tasks. There are even a zillion white label group buying softwares to start your own knockoff. Rather than reinvent the invented, I’d encourage companies that have a niche group buying model like App Sumo (a group buying site for software) to build out their niches. If GroupOn is local, verticals can go deep with the same customer’s targeted needs (without the local spin). App Sumo could, for example, use their audience to leverage new niche buying: Software, Hardware, Apps, and IT. There you go. Own the vertical space.Forget about local if you’ve got niche. From there, go category specific. Vertical consolidation has got to be one of the first changes in group buying.
2. Think Consumer. The downfall of many daily deals is that they are hyper local but broad. Although GroupOn went heavy into hitting every major world city (nearly 40) and close to 100 US cities, they haven’t yet leveraged their database to highly target user purchasing. There’s room in a rapidly saturating market to hit customers with what they want and be able to repeatedly deliver for them. Quality has to count. Be sure to vett out your customers well. At some point, Mamapedia is going to run out of Moms in San Jose who want deals on spa treatments at every place on El Camino Real Blvd. There’s only so much spa a girl can take. But, however, if Mamapedia refocused to go completely postal on offering me things that are (a) in my spending range for instant gratification/POS purchases (b) hit me with variety (I’m not just a mom!) (c) was both local and virtual and (d) only offered the good stuff and weeds out the crappy deals for me, then you’d have me as a loyal customer. So loyal, in fact, that I might just unsubscribe from Living Social. Make me a rockstar purchaser and I’ll return the favor.
3. Put real money into editorial. Voice is one of the most important things to look for in what we see next from group buying. This isn’t for marketing 101. Targeting isn’t enough. If you’re going to go vertical and focus on customer retention (even if the price point is lower), then you’ve got to speak to me. This is a relationship, afterall. You have my credit card, my attention, my inbox, my loyalty. You speak with me every single day. That’s more than I speak to my mother. Many of the leaders in daily deals use generic communication tactics. Boo! Take cues from sites like BuyWithMe who write unique copy and not PR submitted blahblah. It’s all in the positioning, the communication and the delicate yet direct call to act.
4. Think customer. So the bad news in group buying is that it might be a deal for you, but in general, it’s no bargain for the company (usually small business) offering the deal. The marketing dollars are well-spent and putting companies on the map is important. Once qualified, think about how to help the customer. How are they going to make real money here? What’s the package you offer them to help with user retention? What should they be prepared for? You are likely taking a small business’ Yellow Pages marketing dollars. It better be worth it. Be a customer care advocate. Help set expectations. My friends at The Grapevine Wine and Bistro lost money on their absolutely smashing Groupon deal from last year. There were over 1000 people who bought-in on the deal. It was a financial hit for them and wasn’t a new customer acquisition play either. They’ve learned and now are part of Groupon “G” points, ofering an ongoing discount rather than a one-off daily deal. Ace Hardware also took a hit too when they learned their computer systems couldn’t handle the Groupon couponing. They spent more money in getting their cash registers able to accept the Groupons without fraud than they did in income for the deal. What can you to to be fully customer focused to help customers become evangelists?
Consolidation in the group buying space is certain. Watch for key players to swoop in — eBay is running a good, but simple daily deals site that’s getting some traction. I’d expect Yelp to develop something here soon. I was surprised they went with the Foursquare direction before the daily deals, especially considering the controversy with their sales teams. Keep an eye on Merchant Circle, the online small business tool (advertising, ratings, blogs, community) for merchants to reach local customers. An acquisition for MC would be likely and beneficial to their model.
My existing group buying deals include: Zip lining, Kayak lessons for fun, Empire Tap Room, Edna Ray and Habana restaurants, Ace Hardware, A & I Books Online and A Work of Heart for creativity, One Month at Club One Fitness + 60 Min Massage and waxing services for body, The Gap and Bella James for clothes. My total savings to-date have been over a thousand dollars; my total purchases have been around $300.
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Five Phrases To Kill in Communication
They all have their time — groovy, neato, smooth, rad, gag me with [anything]. But coined phrases can move to cliches quickly. Clean up your chatter by nixing these five passe communication terms:
“In my wheelhouse”
What it means: What you are describing is what I have experience in.
Previous passe synonyms: “in my arsenal;” “right up my alley”
Why: Are you a train engineer? Do you ride choo-choos? Unless you are working on the chain gang, you have no business using this wildly over-used phrase.
Possible replacement: I have strong experience in this area.
Not possible replacement: I rock that shit.
“Social media guru”
What it means: I work in social media.
Previous passe synonyms: “community ninja;” “online whiz” or “social media expert”
Why: No one, but no one is a social media guru. Guru is reserved for spiritual leaders and maybe your yoga instrutor, not to self-describe your work online.
Possible replacement: “online marketer;” “social public relations”
Not possible replacement: “Hopeless online addict”
“Under the hood”
What it means: Investigate this topic further.
Previous passe synonyms: “into the nitty gritty;” “deep dive”
Why: Are you a mechanic? Mechanics are hot and greasy and work for near-minimum wage.
Possible replacement: “I’d like to research this topic further;” “understand the details”
Not possible replacement: “Under your hoodie”
“Signal to Noise”
What it means: Putting the highest quality to the forefront
Previous passe synonyms: “Cream of the crop;” “Streamline”
Why: Because you are not a radio. And if you are a marketer, you should assume that balancing communication directives are part of the job.
Possible replacement: “Clean communication;” “high quality coverage”
Not possible replacement: “Cut the crap”
“Close the loop”
What it means: Check with other people relavent to the subject to ensure you have completed the task and its needs
Previous passe synonyms: “circle back around;” “touch base with”
Why: Because you are a not a knitter.
Possible replacement: “Complete the process”
Not possible replacement: “Cover my ass”
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If I… Had a Great Idea
Maybe it’s in the Silicon Valley water. Maybe it’s just part of our inbreeding, or breeding or lack of breeding. Maybe it’s we drink a lot of wine, maybe it’s the weather. Maybe. Every day I hear of another great idea from friends and colleagues for new, inventive online businesses. Some aren’t bad, some are awesome and many we’ve sketched-out at the counter at Bill’s Cafe in Willow Glen. Few have come-to-pass. A small handful have made it, most don’t make it past buying the URL.
@Edubya and I always joke: There are no.new.ideas. And, I believe it’s true. It’s not having the innovative idea that is key to starting a project, it’s the skills behind it to turn that idea into a business. Unless, of course you like torture. And then, well, go ahead. @la_gringa and @linseyk and I toss ideas out every day — the topics vary, the target varies, the models vary, but there are a few things that are key to flushing out an idea. Bottom line: there’s more to an idea than an idea.
If I… Had a Great Idea
1. Write the idea down immediately. It has to be one sentence, less if you can. Now stop. Does this fully demonstrate what your idea is? No? Do it again. What is your idea? Do it again until you can tell me instantaneously what the business is. One sentence, no cheating with run-ons. Got it. Okay.
2. What’s the problem? Now this is stupid, basic VC jargon, but it’s a great way to gut-check your idea. What’s the problem that you are solving with your idea? Is it a big problem? A small problem? Who’s got the problem? What’s the problem. Tell me in three bullet points, no more than two sentences each. I didn’t ask what the solution was, or why your idea is great or what the benefits are, I’m asking you, What’s the Problem that your idea will solve?
3. What is the solution? This is not the place to tout your great executive staff (you and your drinking buddies with Stanford degrees) or how big the market is, or how you can beat competition or how cool your idea is. This is the place to run the same exercise, but tell me in very short sentences what your solution is to the problem. Remember, your idea is not unique, so why is this solution the better solution?
4. How does your idea make money? Unless you are independently wealthy and love your idea so much that you’re willing to blow a huge wad of cash on this idea as a hobby (don’t laugh, I’ve had clients just like this), then you need to know how you are going to make money. Tell me exactly how you plan to make money. Here’s a hint: Google Ad Words is not your primary driver of revenue. And ad dollars? You’ll need over 10mm pvs/month to make ad revenue worth your time. Now with those two things in mind. How does this make money?
5. What are two of the seven deadly sins? I had the awesome opportunity to get to know one of the greatest, most well-known VCs in the world. He taught me a lot, but the thing that stuck with me is that in order for an idea to be a compelling business, it has to have two — but not more than three — of the seven deadly sins. For the record, the seven deadly sins are: Lust, Gluttony, Greed, Sloth, Wrath, Envy and Pride.
6. Refrain from naming the company, creating a logo or building a website. Car salesman will ask you what your favorite color is. It’s one of the first questions. Why? Because it’s the first emotional question that leads to commitment. Use restraint here — it doesn’t matter yet what your idea is named or how it looks. The strongest buildings have strong, flexible foundations. Build the foundation before you pick the paint color.
6. Do you like your idea? If you’ve ventured into entrepreneurship before, you know, it’s hard as hell. Beyond the need, the solution and the revenue potential, you have to believe in your idea. Do you want to do this every waking and sleeping moment for the foreseeable future?
Last year, I went down the path of opening a make-your-own ice cream sandwich shop. The idea was good, not unique, of course, but good. It solved a problem, it had revenue potential, it had two of the seven deadly sins. I was committed to delving into the next stage of building out a business model. I talked about startup costs, competitive landscape and pricing. Then one day, my kid left ice cream on the back porch. I walked outside to the nastiest smell ever. The ground was sticky, the ice cream was rotten and smelly. I started laughing. Despite my idea, my beloved ice cream shop, I realized I didn’t want to spend the next few years of my life with sticky, smelly dairy. And there went the idea. Love what you do. Be ready to live it.
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The Scary Thin Line Between Blogging and Journalism
As a very young writer, I had the great honor of working for one of the finest editors in the publishing business. Twice, actually. My first real job outside of selling pantyhouse at Nordstrom was as an intern for Los Angeles Magazine a zillion years ago. The editor, Blue Lew, taught me more than he’ll ever know — but the number one lesson about journalism that I learned was that the line journalism and advertorial shall never, ever, be crossed. True journalists hold the honorable role of being paid to write without the bias of influence from advertisers nor perk-a-lators.
This precious lesson helped me write some terrific advertorial inserts which made me more money than journalism ever did. And that’s okay, because one is based on touting the products of the company that is paying you, the other is reporting on a product, event or thing. See? Not hard to decipher at all when the line is drawn.
There was a table at Los Angeles magazine that was endlessly piled with goodies. The old wood 6-ft banquet table had everything from cosmetics to fancy dog treats, hoards of the latest goods to hit the market. Sometimes it was junk; other time it was backstage passes to the opening of House of Blues. The goodies were free for the taking — just pick up whatever you want. Nobody was expected to write about them, talk about them or hell, even use them for more than white elephant gifts. But what the table wasn’t was a deal between the writers and the PR folks who send them the goods. See, journalists don’t take the crap you send them — at least unless then need to in order to write a story. But bloggers? Many bloggers do. And that’s where the scary line between journalism and blogging comes to play for me.
And it’s not just the bloggers’ issue, it’s the PR execs too. Send you a sample, you give me a write-up. I send you to a show, you give me a raving blog post. You send me a book, I write a review. You give me free downloads for my kids and I tweet it out to my followers. It’s a growing relationship between bloggers and journalists that needs to be addressed. In listening to people speak this week at BlogHer 10, I started to become more clear on the problem at-hand: Many bloggers are advertorialists, not journalists. Although not good or bad, it’s got to be addressed. And beyond that, it’s got to be determined that paid blogging — no matter how you cut it — isn’t journalism. And that’s okay. But it’s got to require transparency.
A seasoned PR exec with a stellar reputation was approached by a blogger who wanted to know why she hadn’t contacted her lately. She asked why she wasn’t commenting on her blog, why she wasn’t returning emails at the drop of a hat. Caught off-guard, she tried to make it clear how valuable the blogger was to her and important to her business. And that’s true. But what the blogger was missing in all of this is that her direct access to this PR exec wasn’t a friendship — it’s a business relationship. Do you think the PR chick is calling up Brad Stone every day for a chit-chat? She calls him, then it means she’s got news or information to share that might be useful for his writing. He takes her call knowing that she’s got business. How are bloggers missing this important piece of business relations? Dear blogger friends, PR executives do not want to be your friend, they are working for their client. It’s not personal. It’s not about you. And no, they’re not reading your every Tweet. PR execs know how to engage a journalist, but why not a blogger?
A few weeks ago I received a direct message on Twitter from a company that had offered me free downloads of their new iPhone app. I never got around to it. Yesterday I get a DM saying, “Taking your word for an older promise to try our (parenting) app on your iPhone.” Excuse me? I gave you my word? My word of what? And what promise would that be? How do I explain that offering writers a product to try is very different than committing to write about it. I think bloggers are mistraining our clients to expect that if we receive products to try that it means they will receive a post in return. The lessons of that old table are so simple and yet so hard to teach.
Advertorial is not a bad thing — it’s a great thing! The lines are very clear: you pay me with product or money and I, in return write a glowing blog post for you hitting all the points of interest that you’d like me to focus on. You pitch me or I pitch you. Great. You offer me a Cannon PIXMA Photojet printer which is worth about $375. How much are my blog posts worth? Well, if I write for BlogHer, they’re worth $50, so that’s either a blog post and social media outreach for $375 worth of your services or you are being over paid. Maybe that doesn’t work for longterm relationships with PR folks. Okay, how about if you loan me the printer and I get to have a photo printing party with some friends. You get to use the printer, print out as many photos as you want with all the supplies paid for. That’s worth about $50-$100. More in range of what we’re talking about here. Now you’ve got a deal. And, you’ve got a story to tell, rather than a simple review. That’s a good advertorial deal for both sides. And, could get you both more traffic and more clients.
I used to be on every PR list known to man. Seriously. Anything that had anything to do with entertainment was in my inbox. Not so much anymore. And that’s fine, I’m not an entertainment writers. It’s not my business. And, shame on the PR person who pitches me because they must be unaware that I no longer do that kind of writing. Recently I got on a PR list for live events for children. Now, that’s interesting to me. Why? Because I blog about my kids and kids lives, because I am always up for an adventure and I rather like cultural stuff. You want to send me tickets? That’s great! I like that, but what’s in it for you, you PR maven, you. Not much unless you have made a deal with me to do so. As your guest and having been “invited” to attend your event, I feel no obligation to write about your show. But the line is funky here too, especially for mom bloggers who could really use activities for their kids and ones that are free? Whoah, that’s hard to turn down. But before you say yes with three exclamation points, I’d suggest making the relationship official and transparent. Think: is this advertorial or is this journalism? And then, proceed accordingly. Neither is wrong, of course. It’s just business.
Transparency is the key here. Decide what it is you are doing and be transparent about it. The way I see it, you have three options (a) be a journalist and use your blog to report things/people/events/thoughts without influence or bias; (b) be an advertorialist and use your blog as paid writing, using your blog as a mechanism to advertise things/people/events. Neither is wrong or less influential. The only wrong turn you can make is to blur the lines. And in doing so, lose trust of your audience. Set expectations, understand your strengths and limitations and understand that being a writer — both advertorial and journalistic — are held to the highest level of integrity.
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If I Was… Going to BlogHer ’10
…oh wait, I am going to BlogHer10. But still.
I attended the very first BlogHer in Silicon Valley. I have to say, it wasn’t earth shattering for me. I never considered myself a pro blogger or even an aspiring pro blogger. I have been a journalist. I consider myself one of the tribe. Attending the first BlogHer didn’t do it for me. I was a bit annoyed at all the discussion of blogging for money, blogging for this, blogging for that. And why the focus on women? Weren’t journalists unbiased? Weren’t we held to the high code of honor to never entertain advertorial? It seemed, to me, at least, that BlogHer was one big amateur fest of women that wanted to be paid for their writing. What was the big deal? I thought BlogHer wouldn’t make it to year two. Holy hell, did I miss that one.
In 2008, with a ticket in-hand, I blew off BlogHer in San Francisco in lieu of taking my kids to Pier 39 and dinking around the City. I guess I *still* didn’t drink the kool-aid. BlogHer just seems like so.much.work. It also seems like a sorority gone wrong. Alpha Delta Ohmyfuckinggodstoppitchingme. But again, I was wrong. I had clients that did great business at BlogHer, business that moved the needle in their communications with bloggers.
On Wednesday I leave for BlogHer 2010. This time, I get it. I am at BlogHer to see my people. Some of them are indeed journalists and many I have come to know are not. In fact, many are people that I have grown to respect, admire and some times, get star-struck by. And those craft bloggers that I endlessly made fun of? Those are the ones that are at the core of some of the greatest work in the blogging industry who I am constantly learning from. This year, I am going to BlogHer to celebrate simply being a woman in a cutting-edge industry. I am going to have a cocktail. I am going to support my dear friend in her new book club venture, From Left 2 Write. I’m there for my new project with The SJFive, a kids geocaching adventure coming this fall. And then there is the marketing Me part. The I’m-A-Startup-Advisor-for-Women-Yes-We-Should-Talk-Here’s-My-Card part. That’s my least favorite part. I’m much better at marketing you than marketing me.
On that note, here’s my advice for those going to BlogHer ’10:
1. Without exception, be you. At the end of the day (and beginning, middle and end), being yourself is the very best marketing tool you have. This doesn’t mean dress like you’re homeless or neglect to brush your hair. It just means, be you. If a vendor doesn’t feel like the right match for you, then smile and leave. If a breakout session doesn’t offer what you are needing or how you want to spend your time, just leave. It’s not worth it to stick around half-assed with people, parties or conference sessions that don’t make you feel like you are getting your money’s worth.
2. Take a break. Now everyone talks about how crazy the conference is (and it is); how many parties they are attending (trust me, the free drinks aren’t always worth it); the sponsor events you must go to in order to maximize your time (ever heard of email?). The truth is, this stuff is truly overwhelming, overstimulating and over the top. Taking a break doesn’t mean meeting someone for coffee or even taking a yoga class. Taking a break means going to your room and putting your feet up without your laptop. It means putting on your headphones and stomping down the NYC streets smelling the City and people watching.
3. Live in the Moment. I know that you are wondering which event you are missing, where you should be and what you should be wearing. But being present and enjoying the process is something that I have worked toward for a long time. I’m not great at it at all. I suck. I’m always looking to where I should be, what’s next. I’m slowly learning to live more in the moment. Its my hope and advice to realize how damn lucky we are to be in the midst of great women doing great things and do my best to enjoy ever second I have to learn from them.
4. Plan. A Bit. I’m going to be going mostly under the radar this year. I’ll be going to a couple of parties, but not a ton. I’ll be going to some of the conference elements, but not all. I’ll be meeting up with friends but I also plan to be alone. My plan this year is to (a) not have a hangover (b) look my best (c) exercise Friday, Saturday and Sunday including the BlogHer 5k and an @EatBlogRun and @runteamsparkle reunion. (d) listen to some great speakers work their magic and (e). Bring something home to my children that’s one step above the mad dash at Barak Obama bobble heads at the sundry shop at the airport 20 minutes before boarding.
5. Forget the Popularity Contest. It’s already happening, just as it does every year. Is @punditmom going to be at this-and-that? Who will reign now that @queenofspain is not attending? What will @jessicagottlieb say/do/hang out with? Who is going to be at the cool parties? Who is having a private dinner with the @chevymissions team. Should I be jealous? How do I get in? Do they know I’m famous on Twitter?! Forget it. Seriously, forget it. When women get together — holy crap over 4,000 including sponsors — both magic and shit happen. Women are, well, women. For me it’s important to remember that it better be damn important to be 3,000 miles from my children and spouse for four days and it ain’t to worry about this stuff. Do your own thing, refer to #1 above and you’ll be fine.
My final goal for next week is to Learn. One of my favorite life lessons has been that I am not as smart as I think I am. Or that I am, but there are many that are smarter and smarter in different ways than I am. I don’t plan to market myself at BlogHer. I know that’s what’s done and I know it’s a game you have to play, but it’s just not why I am there. I’m there to learn from the best in the business. And for that alone, I can’t wait.
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A Little Marketing Humor
Salt and Pepper
Angelina might be Salt, but I am pepper. La Gringa and I had a lot of fun playing around with the image and we laughed ourselves silly. We’re dorks, but we like it. You can see it live here: http://www.whoispepper.com
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Side Gigs
