About Me 0010: Making Money Marketing

Now that it’s 2011 and we’re back in the swing of things, a lot of startups are already undoubtedly laying out their launch plans for the year. And while anytime seems like a good time around these parts, a lot of startups pencil in the SXSW festival in Austin, Texas as a good potential launching point. Why? Because it’s early in the year (early March), with a ton of people and hype, and a few of the most successful launches in recent years took place there.

You can always tell the most successful launches because the press the following year will say, “who is going to be this year’s ______ of SXSW?” The two most obvious companies that fit that bill are Twitter and Foursquare. (Well technically Twitter didn’t launch at SXSW, but that was definitely their coming out party in 2007.) And coincidentally, two founders of those two companies have taken to Quora today to both answer the question: What is the process involved in launching a startup at SXSW?

Yes, I get to write about Twitter, Foursquare, and Quora in the same post.

Twitter co-founder Evan Williams notes that Twitter launched prior to SXSW “to a whimper”. He says that the company made a decision to target SXSW for some publicity in 2007 simply because it seemed like a lot of the then “thousands” of Twitter early-adopters were heading there. He specifically credits two things they did there with helping the explosion of interest.

First, they set up a tweet visualization screens and negotiated with the conference to put them in the main hallways in the Austin Convention Center. “This is something they’d never done before, but we didn’t want a booth on the trade show floor, because we knew hallways is where the action was. We paid $11K for this and set up the TVs ourselves. (This was about the only money Twitter’s *ever* spent on marketing.),” Williams notes.

The second thing they did was to create a SXSW-specific feature that allowed people to join Twitter simply by texting “join sxsw” to their 40404 SMS shortcode. When people did that, they would show up on the screens around the conference. And you’d be following the half-dozen Twitter “ambassadors” that were other users at the conference (consider that the first SUL).

Williams notes, however, that it didn’t seem like a ton of people signed up for the service that way.

“I don’t know what was the most important factor, but networks are all about critical mass, so doubling down on the momentum seemed like a good idea. And something clicked,” he concludes.

Foursquare co-founder Dennis Crowley offers a different take. His big launch was two years later, at SXSW 2009, and the conference was already much larger at that point. His two main keys to a big SXSW launch are to “hustle” and to do everything in your power to get viral word-of-mouth buzz just before the conference. “Start telling friends and stranger to try out your app,” Crowley writes, saying that they spent $0 on marketing that year.

As for hustling, Crowley says that “we started in January and flipped the switch on 4SQ the Thursday before SXSW. Me & Naveen [his co-founder] were both coding in the airport, on the tarmac, on the runway.”

Crowley also says that you should take advantage of Twitter early on for both feedback and support. “Try to answer as many support + feature requests tweets you can. Get people to spread the love,” he writes.

He also suggests using a service like GetSatisfaction to gather a collection of “superusers” to help out with troubleshooting and bugs.

Finally, he says that it’s probably wise to have someone not at SXSW watching the ship during the actual conference. “It’ll help while you’re doing your thing in Austin,” he says.

But Crowley’s most interesting tidbit comes in a comment below his answer:

don’t focus on the press / media / bloggers.

Focus on making something you think is awesome. Focus on making something you think other people will also think is awesome. The rest will prob just happen.

In an answer below that, Kevin Marks leaves another crucial point:

FIrst of all, be sure that your startup makes sense for SXSW – both Twitter and Foursquare (and indeed Dodgeball) were highly suitable for thousands of geeks crammed into a smallish downtown with intermittent net connectivity and a desire to co-ordinate with each other.

If your startup is an Enterprise Sales tool, you might be better off launching somewhere else.

Consider this the official countdown kickoff to the “who will be this year’s ______ at SXSW” stories.

I recently watched the movie Exit Through the Gift Shop from well-known artist Banksy. I got a kick out of this film for multiple reasons having liked Banksy's artwork for years now.

What most amused me though is how well it goes about making you question what celebrity is and how much you can achieve by becoming famous. The key point for me is questioning whether you really need to be creative and innovative above and beyond being famous.

Then Mike Butcher over at Techcrunch went and posted something this morning about startup teams trumping celebrity tech entrepreneurs. In summary, he too is making the point that execution far outweighs celebrity.

Basically, what I'm getting at, is all the parallels you're starting to see between the startup world and the movie business. I am definitely not an expert on the movie business and can only imagine what it's truly like from afar. Yet, we've all seen enough of it to realize a bit how things work in Hollywood. You basically have a couple large companies or studios as they're usually called. There you have management at the top who are the power-brokers in the industry. They back films which are used as vehicles to market actors who either succeed or not. If they do succeed, they are cast in further films and a ton of marketing is thrown at these films, regardless of whether these actors have talent or not.

Ultimately, the goal is to make as much money as possible and if you're the one making all this money, keep other people out so you can continue to make as much money as possible. Sure, there are some stand-out actors, managers and studios who go against the grain but basically it's an industry optimized to make money. Simplified by me immensely but I believe you understand what I am saying.

Now let's switch over to the startup world. It's no longer Hollywood and we're now a bit north in Silicon Valley. You have a couple firms who call all the shots and are known as Tier 1 VC's (with some major players like Google, Apple, and Facebook thrown in for good measure).

These VC's fund firms instead of films run by entrepreneurs instead of actors. Some of these entrepreneurs are successful and some are not. Those who are get funded further by these Tier 1 firms. Lots of companies are started and sold since these power brokers in the Valley sit on each other's boards and pass deals back and forth. The power brokers continue to make money and those entrepreneurs who don't lead to successful exits get weeded out (where's the reality TV version of "out to pasture" for entrepreneurs?)

Ultimately, as in the movie business, you make as much money as possible and keep out the riff-raff who would keep you from making tons of money as long as possible.

Now don't get me wrong. I am in no way arguing about whether the movie or startup business is right or wrong or skewed in someone's favor or not. I'm also probably simplifying it too much as well. But the point I am making is that we are in a world where it's about making money. Sure, you can get your touchy-feely on and say you're changing the world but ultimately you wouldn't "work" if it wasn't about making some money.

Hence, my advice to any entrepreneur is to take advantage of whatever you have if you ultimately want to be successful. If you are naturally good looking, get your face out there. Be on TV and in the press. If it helps you make money, go for it.

At the same time, if media attention doesn't help you make more money, don't focus on it. Get your pretty head down to business and execute like hell to innovate, optimize and sell your product. Or have the best of both worlds. Be a CEO focussed on getting your brand or product out there and have a number two (great blog post by Ben Horowitz) who takes care of business. What you need to focus on is making money and being the scrappy entrepreneur that you are, you'll optimize wherever you can to achieve your goal.

In the end it's never about who was most popular that determines success. Just think back to all those football players and cheerleaders in high school. (I've seen some of them from my high school....thank you Facebook.....and had a good laugh!) So often there are people you never hear about making tons of cash since they don't need to focus on media.

On the other hand, if Twitter/Foursquare/Zynga/Groupon hadn't received so much media attention, you think they'd be where they are now? I highly doubt it and I guarantee you that they had a clear strategy in place to use media (and position their founders) from the start. Hence, don't waste time focussed on the wrong things. If you're a celebrity entrepreneur who's counting his millions hats off to you. If you've become a media darling and are broke, well tough luck kid. Try something new.

By the way, here's what Exit Through the Gift Shop is about cut and pasted from Wikipedia. Think what you will about whether it's a real story or not but reast assured the dollars earned by "Mr Brainwash" were real!!

Exit Through the Gift Shop: A Banksy Film is a Gonzo Documentary which tells the story of Thierry Guetta, a French immigrant in Los Angeles, and his obsession with street art. It is presented as a documentary, but reviewers have questioned its factuality. The film charts Guetta's constant documenting of his every moment on film, to his chance contact with his cousin, the artist Invader, and his documenting of a host of street artists with focus on Shepard Fairey, and also Banksy though the latter's face is never shown, and his voice is distorted to preserve his anonymity

bench craft company reviews bench craft company reviews

Monday, January 10, 2011

Making Money Marketing

No comments:

Post a Comment