Landing Media Placement for Your Product

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So you’re in the movie theatre or watching a sitcom on TV, and you’re thinking, “How’d this two-bit joke get into the script? They must have known somebody. Why couldn’t the audience be cheering for me?”

No, you’re not begrudging Will Smith, Julia Roberts or Jim Belushi their slice of fame. You’re wondering how Daniel Craig wound up wearing an Omega watch instead of the brand your company manufactures. You’re wondering how much dough Wonder Bread had to cough up to be the sponsor of the car Will Ferrell drives in Talladega Nights.

As long-time consumers, we're a savvy bunch. The term "product placement" is old news to us. And we know it wasn't a screenwriter or director who insisted those products appear in their films--Omega and Wonder Bread paid big bucks to get their brands into the movies.

But anyone who watches a fair amount of TV or goes to the movies has also probably noticed it’s not just the Miller Lites and American Airlines of the world that are getting their 15 minutes of fame. Every once in awhile, an average Joe-type of product will be given prominent placement. And if you’re a serious and ambitious entrepreneur, you couldn't help but think, “They’re not a major conglomerate. How'd they do that?”

Or more important: “How can I do that?”

Product placement is almost no different than being an unknown actor trying to make it into the movies or TV. And that’s both good news and bad. Because if you aren’t a company with an unlimited marketing budget, getting your product seen on TV or in the movies isn’t easy. But on the other hand, if you’re willing to pay your dues--and if you have some pluck and a little luck--your product, too, can be a star.

The encouraging thing to remember is that Hollywood wants your business, and getting your foot in the door doesn’t always mean paying a huge fee to get it there, says Joey Carson, CEO of Bunim/Murray Productions, which produces numerous reality TV series including MTV’s The Real World and Road Rules and FOX’s The Simple Life.

“It’s such an important part of what goes on in television,” says Carson. “Nowadays, you’re either going to have a person in your company who works solely on business development or, at the very least, a big part of a person's job will be focusing on product placement and trade-outs.”

For those not familiar with the term, trade-outs is a form of product placement in which an entrepreneur pays nothing to get their product in a show or movie--except for what it costs to provide the product or service for free. That’s how it worked out for sisters Tag and Catherine Goulet, who own FabJob, a publishing house specializing in career guidance books.

A Bewitching Product
It was June, 2004, when the set decorating coordinator for the movie, Bewitched, called FabJob. He told Tag that Nicole Kidman, who was playing the witchy Samantha Stephens, would be looking for a new career in the movie, so she'd be looking at career-oriented books at a bookstore and he wanted some of theirs.

The set decorating coordinator had found the FabJob website and was impressed by their operation, but the film's director, Nora Ephron, looked at the website while Tag was on that first phone call and wasn't as impressed. Tag understood. The site featured plain e-book images, rather than their actual printed books. In two days, she quickly put together with sample print books and even had her art designer create a fake book, titled FabJob Guide to Becoming a Witch or Warlock.

Almost two months went by without a word before Tag got an e-mail from a new set decorator, saying they not only wanted to use the books--three copies of each--but that they also needed large cardboard book displays. And they needed it all in a week.

Fortunately, Tag was able to jump through the appropriate hoops and provide Bewitched with the necessary props they wanted for close to $1,000. And although the FabJob books aren't featured very prominently in the film--appearing so quickly that Tag admits, “It’s unlikely people would notice them if they weren’t looking for them.”--there’s no question that the time and effort put into the product placement was worth it.

“The benefit to us hasn't been the fact that people can see our books in a movie,” says Tag, who notes that they received quite a bit of local media coverage, including a feature story in the Calgary Herald. “The benefit is that we can say our books have been featured in a movie starring Will Ferrell and Nicole Kidman, which is great for credibility.”

Jumping Through More Hoops
Tom Berton agrees. “The fact that you’ve been on the show is actually more important than the actual media and show. The publicity you get from that gives your business credibility," Berton says, "and from that point on, you can be relentless with it.”

Berton owns Shearwater Sailing, a tour boat business. In December 2005, his business received several minutes of exposure on The Apprentice when, as a reward, Donald Trump sent two contestants on a boat ride around Manhattan on the Shearwater, a 1920s-era yacht owned by Berton.

He isn't quite sure how The Apprentice learned about his business. He'd sent out packets of information to The Apprentice series, but those who called him seemed to know nothing about that. Regardless, Berton wasn’t about to let the opportunity slip away from him once the series came to him.

“I signed the most Draconian contract I’ve ever signed in my life,” says Berton, explaining that he was sworn to secrecy to not tell anyone about his company's involvement with The Apprentice until the episode aired.

“They can own your business if you ruin their ratings by gossiping to tabloids,” says Berton, explaining that the series understandably considered the scene of the contestants on the boat as proprietary information. “If word leaked out from anyone related to Shearwater, it was understood they'd have immeasurable damage and that we would be fully liable for it,” says Berton. “Basically, I was pledging my assets of the company to them.”

But he’s not complaining. And he's using the experience to his advantage. He prominently mentions his boat’s appearance on The Apprentice on his website, www.shearwatersailing.com. And when he talks about the experience to people, the reply is often, “That was your boat? That was amazing.” Although Shearwater had a certain cache to it, anyway--it is a luxury yacht--having Donald Trump’s name associated with it arguably increased it tenfold.

Landing a Gig
Of course, you don’t have to wait for Hollywood to come to you to get your company name in lights. Producers like Carson encourage entrepreneurs to approach them. “We do a lot of deals with small companies,” says Carson, who thinks there’s something special about working with the underdog entrepreneurs. “I’m just a fan of business in general, and I have a lot of respect for entrepreneurs. You’re taking the risk, and the odds aren’t on your side as a business owner. I’m always happy if there’s any way I can give encouragement to a business by working out a trade-off or product placement deal.”

That said, Carson--or any other producer--isn’t just going to work something out because he likes the entrepreneur, and there is a definite way of going about the art of product placement. For instance, once you learn the name of the production company that produces a show (which you can get by watching the credits if you somehow can’t find it on the internet), don’t call them ask to speak to the producer or someone in business development. You’re just going to put them on the spot and encourage a “no, thanks.”

Instead, send your pitch in writing. And when you do, pitch your product, not a scenario of how you think the series or movie should use your product. “That’s a turn-off,” admits Carson. “The best way to approach it is to present an overview of your company in general, and whatever product line you have, and then just maybe say, ‘We welcome the opportunity of how our product might be a part of your show,’ and leave it at that. On our side, we’ll know if it’s a fit or not.”

While the bigger players—the ones who can afford to spend big bucks to get their products placed in TV shows or movies--generally use an agency that specializes in product placement, like Norm Marshall & Associates, an international company headquartered in Los Angeles, you don't need to do that to land a gig. You can spend just a few thousand dollars and approach someone like Betsy Green, CEO of Media Matchmaker [www.mediamatchmaker.com], a service that hooks up entrepreneurs with producers in the name of getting product placement deals worked out.

When it comes to placement, Green agrees with Carson. “Every producer has a filtering system, and they’ll only use your product if they deem it appropriate," says Green. "You really have to sell your product to the producer, and even then, there are no guarantees. Someone else in the production entity may say the packaging isn’t good enough or the product stinks. Or the star may say they don’t want it.”

In the end, it all comes down to putting on a good show. “It is a creative process,” says Carson. “It’s almost more of a gut-level decision that’s made, because these are creative people at work. But the one main guiding principle is that the product needs to be organic with the show. It can’t detract from the show in any way. One, we don’t want our shows to look like a television commercial, and that leads in to the second rule, which is to protect the show. I think if you do something over-the-top, where a character is holding up a product, practically modeling it as if he’s on The Price is Right, that’s not good for us--or your brand.”

Your Product Placement Primer
Inspired to try to get your product or service some free publicity? Here are a few quick steps you can follow that just may get your product or service a supporting role in a movie or television show:

1. Put on your brainstorming cap. What type of show or movie would you like to see your business in? When attempting to reach your target market, you really need to think about the types of programming they're most likely to watch. If you’re marketing lipstick to teenagers, for instance, approaching teen-oriented sitcoms would be smart. If your product is aimed at stay-at-home moms, you might want to consider everything from soap operas to daytime talk shows.

If you don’t care about reaching the audience as much as building credibility among the general public, then think about the characters on the programs who might conceivably use your business or service. The important thing is to stay away from thinking about your own personal favorite programs and instead think about what’s a good fit for your product. Put yourself in the shoes of the producer or business development person. If you can honestly envision your product being a help to their show, then that show is probably one you should approach.

2. Once you have your list, start looking for contacts. There are a few ways to get the information you need. If it's a TV show you're interested in, try searching the end credits of the show to find out who the show's producer is. A little internet searching should turn up the production company's contact information. Or you can go directly to the search engines to find the show's site where you'll find the name and possibly the contact information for the production company. If it's not there, try searching directly for the website of the productions and start trolling for the appropriate name of someone who might want to see your media kit. One piece of advice: Be sure to approach several production companies--like cold calling, product placement success is a numbers game.

If it's movies you've got your heart set on, read the current editions of such trade magazines as Variety (www.variety.com) or Hollywood Reporter (www.hollywoodreporter.com). Most issues include listings of the production companies currently working on projects, where you can at least get phone numbers and addresses, if not key names. You can also search the trade publications--or the internet--to see what movies are currently in production or will begin soon. Both Variety and Hollywood Reporter offer a lot of invaluable information online for free; in some cases though, particularly with Hollywood Reporter, you may have to subscribe to get the information. Or you could try an old-fashioned but reliable approach and check out the publications at your local library.

3. Send a media kit. Once you've located contact information for the companies you'd like to contact, mail them a media kit that includes a cover letter, photos and descriptions of your product or service and contact information so they can reach you if they're interested. Do not call anyone, unless it’s a receptionist to get the name of someone to send a letter to.

4. Don’t oversell. Producers will either like what they see--or not. You aren’t going to talk them into anything.

5. Be careful about suggesting a scene that the producers might use your product in. For instance, a good way to go about it might be “Since our doughnut shop is based in Chicago and ER is set in the same city, please keep us in mind…” Suggesting that Luka or Abby might want to share breakfast over doughnuts is also probably safe, but even that may be more details than the producers would care to hear. Deciding how to use your product is their business; bringing your product to their attention, in a low-key and professional way, is yours.

Geoff Williams is a freelance writer in Loveland, Ohio.

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When skateboard-maker Sector 9 in San Diego decided to add a couple of bamboo skateboards to its product lineup, company managers thought they might appeal to a few environmentally conscious customers. But in less than two years, customer demand led the company to expand the line to four models, Sector 9 vice president and co-founder Dennis Telfer, 37, reports.

At press time, sales for the bamboo boards were projected to top $1 million in 2006. The bamboo skateboards are popular not only because they save trees, but also because “the boards are really durable and they’ve got a different look,” says Telfer, who co-founded the business with Steve Lake, 38, and Dave Klimkiewicz, 36.

As Telfer discovered, bamboo has more going for it than just being a fast-growing, easily renewable relative of grass. Bamboo is strong and has a tropical, exotic appearance that appeals to customers who are interested in the tiki-Hawaiian look or just seeking out something new.

Bamboo products--from kitchen cabinets to T-shirts--are finding an enthusiastic audience, entrepreneurs report. Just a decade or so after bamboo products, such as flooring, first began finding acceptance in the U.S. market, business owners say interest in bamboo has shot up fast.

Doug Lewis, 37, remembers how every flooring distributor in the Northwest turned away his bamboo flooring in the mid-1990s. Now they all have bamboo floors. Lewis, who co-founded Bamboo Hardwoods with David Keegan, 37, projects about $5 million in 2007 sales, more than half of it in bamboo flooring.

The Seattle company added custom bamboo kitchen cabinets to its offerings early last year. Bamboo Hardwoods also added three new retail stores to the Seattle area in 2006 to help educate customers about its products.

One of the company’s new showrooms is located inside Costco Home in Kirkland, Washington, one of two test-format stores for the warehouse-club giant. Lewis is hopeful that if Costco expands the home-furnishings concept, Bamboo Hardwoods might be able to add more showrooms inside Costco stores. Eventually, he envisions a national chain of bamboo flooring and cabinetry stores.

As environmentalists continue to popularize the idea of choosing nonwood building materials, Lewis expects bamboo flooring’s share of the hardwood-flooring market to grow. That market is expanding overall, too--the National Wood Flooring Association estimates 2005 wood-floor sales were just under $2.6 billion, and that’s projected to grow to $3.7 billion by 2010. Says Lewis, “I think the existing market for bamboo [can’t compare to] the size it will be.”

Another entrepreneur who’s high on bamboo is Mark Elwell, 48, of Bamboo Flooring Hawaii LLC in Honolulu. A longtime importer from Asia, Elwell switched to bamboo floors in 1997 and never looked back. Sales in 2006 were $2 million, but he expects sales closer to $3 million this year, as newly formed relationships with distributors begin to pay off.

Bamboo flooring has become so popular that Elwell says he’s expanded into new styles to offer something unique. One of his products is Tigerboo, a bamboo floor made of tiny bamboo strips in contrasting dark and light shades.

Elwell is experimenting with new bamboo products, hoping to take advantage of growing public interest. He plans to introduce a line of bamboo picture frames this year and has made custom frames, tables and guitars for customers including singer Jimmy Buffett.

One bamboo product that’s already caught on big is clothing, says Rich Delano, 38, owner of Bamboo Textiles in Brea, California. Delano began selling bamboo yarn and fibers imported from China in 2004 and found the super-comfy bamboo fabric won customers over fast. “They [like it] because it’s so soft, it’s natural and it’s something new,” he says.

From a $125,000 initial investment, sales at Bamboo Textiles are expected to range between $2 million and $3 million this year. Delano says his revenue is split in thirds--one-third comes from sales of yarn and fabric, one-third from churning out apparel for other designers and silk-screeners, and one-third from sales of his own apparel brands, Spun Bamboo and Bamboo Apparel.

He sells his own lines on www.spunbamboo.com in partnership with fellow bamboo entrepreneur Daniel Keesey, 42, of Ecodesignz in Gardena, California. Environmentally focused stores are snapping up the lines, which include menswear, womens-wear and baby items.

As a sideline, Delano bought up some 50 website names that involve bamboo. As the product continues to grow in popularity, he hopes to sell some of the undeveloped sites off at a profit.

Carol Tice is Entrepreneur’s “Tax Talk” columnist.

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Taking Your Invention to a Trade Show

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Trade shows offer inventors and entrepreneurs the opportunity to reach a large number of potential buyers and retailers. They also provide a marketing-sales double whammy: You'll meet buyers seeking products like yours, and even if you don’t make a sale on the spot, your presence creates awareness about your product. You should also use trade shows to scout out similar products, make new contacts and gain general knowledge about your industry.
Here are some strategies for maximizing your trade show experience.

Find Shows That Fit

The most important thing you can do before attending a trade show is to make sure you choose the right one. You need to make the most of your time and money, and a poor choice can be a waste of both. Be sure to make your choice based on the potential returns. To choose appropriate trade shows, consider the following:

• Ask your best customers (or target customers) which trade shows they attend. For example, if your best customer is a locally owned housewares store, ask the owner which trade show she attends to choose her products. Chances are, there'll be other buyers like her there from around the region or country interested in your product, too.
  
  
  
  
• Consider cost. Smaller, regional shows are often less expensive than larger, national ones. Your booth rental can cost anywhere from hundreds to thousands of dollars, depending on the show. Historically, my company has paid about $1,000 per 100 square feet at trade shows (primarily juvenile and housewares shows), but major shows can charge up to $10,000 for a booth. That said, less may not be more. When you consider the time and preparation involved, a bigger, more costly show may be a better investment.
  
  
  
  
• Examine the nature of the attendees. Some shows, for instance, may be dominated by buyers who represent regional or independent stores, while others may be mainly attended by mass retailers. Still others will target niche buyers like grocery or drug stores. Be sure your product is a potential match for the buyers who’ll be attending.

To find potential trade shows in your industry, visit www.tsnn.com, where you can search by industry, show name, date or state. You should also visit the website of the industry association related to your product; most sponsor trade shows for members and buyers to come together.

Make the Most of Your Booth

So you’ve chosen the show you’d like to attend. Now you need to determine what you’ll do when you get there. It’s important to maximize your booth space by presenting a professional, eye-catching image. While your booth design doesn’t need to be elaborate, try to creatively make the most of your space.

In a basic package, the trade show will probably supply you with a table and skirt and some chairs. You can add stands and shelves you can buy at a discount store to further display your wares. Bring pretty tablecloths to cover boring tables. Create signs, banners and graphic elements to convey your brand and your products. You don’t need to spend thousands on high-end panels--there are many thrifty ways to make your booth stand out.

For instance, we bought $79 white wooden shuttered closet doors at The Home Depot to use at our first show and placed them directly behind us in our booth space. I was able to display my packaged products by hanging them from S-hooks on the doors, similar to how they’d be sold in stores. I then spent the majority of our budget on high-resolution graphics of our products, which I also hung around the booth. The result was a professional-looking booth in a homey setting at a relatively low cost.

The location of your booth can also be critical to your success. When registering to exhibit, get a map of the show layout to choose your preferred locations. Here are a few things to remember when scouting your site:

• Locations near the main entry are typically highly desired.
• People tend to veer right after entering rooms.
• A corner location can benefit from traffic coming from multiple directions.
• You can request placement near specific vendors at some shows. Avoid being placed near a huge booth that will dwarf yours, near direct competitors or at dead-end points in the traffic pattern.

Working the Show

A few weeks before a trade show, you can start creating some pre-show buzz. Send a letter or postcard to key prospective customers to let them know you’ll be at the show. Include your booth number and information on what you’ll be exhibiting. Also, consider including a promotional element to entice them to come visit your booth--a drawing for a prize or a small giveaway to all visitors.

Once you're at the trade show, make the most of your time. Engage with potential buyers as they pass by. Appear friendly and interested and offer a quick product demonstration. Develop some show specials, such as free shipping or discounts for orders placed at the show. Remember that at your first show, your goal is to establish new relationships and open new accounts--not make a killing on profit. Don’t sacrifice a potential long-term relationship for a few dollars.

Tools of the Trade

Remember to bring these key items to the show:

• Receipt book
• Order forms
• Stapler
• Organizer or folder for orders
• Product sell sheets
• Business cards
• Product samples
• A bowl of candy to entice people to stop
• A promotional giveaway, usually a small, inexpensive item with your logo
• Supplies including packing tape, scissors, pens, a dolly and a small broom

Can’t-Miss Tips

We’ve also learned a few additional lessons along the way about dos and don’ts for exhibiting at a trade show.

• Wear comfortable shoes. The high-heeled Jimmy Choos may look fantastic, but your look of anguish at the end of the day will surely undermine your sales efforts.
• Bring someone along so your booth is never unattended. Take occasional breaks to walk around the show and regain your energy.
• Don’t eat in your booth.
• Try not to chat too much with your booth neighbors, especially when they’re speaking to potential buyers.
• Consider doing a prize drawing giveaway. Think of what’s hot and what people would want to win and consider your audience. Giveaways to bring home to the kids are always popular.
• Look into travel deals negotiated by the trade show for hotels, car rentals and airlines. Then search on your own for potentially better deals through discount travel sites.

Keep it in Perspective

While trade shows can be a great way to make sales, be sure to set realistic expectations. A trade show should be one component of your overall sales plan. In other words, don’t expect to make your entire investment back at your first show. In addition to potential sales, remember to value what else you can gain by exhibiting at a trade show--new contacts, industry knowledge, feedback about your product, and product and brand awareness.

---

Tamara Monosoff is Entrepreneur.com's "Inventions" columnist and the founder and CEO of Mom Inventors Inc., a product development and manufacturing company. She's also the author of The Mom Inventors Handbook: How to Turn Your Great Idea Into the Next Big Thing (McGraw-Hill).

Copyright © 2007 Entrepreneur.com, Inc.

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Kristen Nevils wowed the Venture2 "Inventor Search" judges both with her husband's "Watersafe" invention idea and her presentation polish.

On Thursday in Delray Beach, Nevils, 37, proudly unveiled the emergency water storage product that she and husband Michael Nevils, 44, developed after South Florida was hit by hurricanes two years in a row. The Fort Lauderdale residents' product is a solution for the homeowner to keep up to 65 gallons of emergency water supply in the bathtub or sink, avoiding the prehurricane scramble for bottled water.

"When you see those palm trees starting to bend, you fill it up," Nevils said, demonstrating how the plastic storage bags are filled with tap water and secured.

On Friday, the couple were named the contest winners. "I'm blown away. I'm so excited," Nevils said. "I love my product and see so much in it. But to have other inventors say, `You really have something here,' that's amazing. That legitimizes it."

The contest was sponsored by Venture2, a consulting firm founded by Michael Docherty, a former consumer products guru for Sunbeam.

"It wasn't an easy call," Docherty said about the contests' three finalists. A gift-wrap cutting and storage product invented by David Richards, 52, of Palm Harbor, for example, "was less developed, but potentially bigger opportunity," he said.

"In the end what pushed us toward Watersafe is that they were the ones who took the total business approach," Docherty said. The Nevilses also are willing to devote their time to developing the product, he added. Several contestants were looking for someone else to market their invention.

The winners receive 60 days' consulting from Venture2 in refining their concept and licensing or launching their product in the marketplace.

Judges ranked inventors on whether their idea addressed "unmet customer needs, was unique, and an attractive financial opportunity."

Nine inventors were chosen to make presentations, set up American Idol-style with three judges giving on-the-spot feedback. But the judges, who included Docherty, inventor Bob Robbins and MIT Enterprise Forum of South Florida President Amer Akhtar, were gentler in their advice than judges of TV fame.

The judges liked the Nevilses' water storage product, but questioned how Kristen Nevils arrived at the price, $34.95 for the large and $12.99 for the "mini" version.

The judges praised Eva Thomas, a Boca Raton inventor, for her passion, but couldn't see the potential that she does in her locking mailbox designed to make homeowners safe from identity theft. "Drive along A1A. They have multimillion-dollar homes and they have $10 mailboxes. It drives me nuts," she said.

"You're underestimating what's involved in trying to build a business around this," Docherty told her.

Finalists John and Gwendolyn Corn drove from St. Petersburg to participate in the contest. The couple invented what they call the "Bath Fiddle," a back scrubber made of quick-dry, exfoliating material.

"It's a great idea," said "Judge" Robbins, who has invented many products including the Conair hair-braiding device for teenagers. He recommended the couple take their back scrubber to a bed-and-bath trade show in Las Vegas.

"I like it, too," added "Judge" Akhtar, who saw potential in using the product to put on suntan lotion at the beach. "I would buy one."

Robbins saw potential in Richard's gift-wrap idea, saying his device to cut paper was more valuable than the storage idea. Even though he didn't win the contest, Richards said he found the judges helpful. "I picked up a lot of information, and they're open to providing guidance on this.

"I didn't know how to proceed. I haven't done this before, and I don't have much time because I have a family and a job. It was a great experience."
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I am proud to be a mentor for the Colorado TechStars program, and this evening we had our first mixer, a typical geeky mixup with poor acoustics and a male:female ratio of about 30:1. The mix was young entrepreneurs who won the TechStars competition and are now seed funded through the summer (along with gaining access to an array of very sharp advisors and mentors), the mentors, and other folk in the community who are focused on startups and business development.

A nice group and it was a good opportunity to both visit with some of my Denver-based friends and meet the young turks who are hopefully going to be building the next YouTube or Flickr in our proverbial garage.

Except for one glaring problem...

I estimate that I talked with about seven different startups this evening, roughly fifteen different entrepreneurs who are eager to dive into their business ideas full-time, to really devote all their energy into building Something Cool and Meaningful. Hopefully there's the proverbial pot o' gold at the end of the rainbow, but there was very little sense of people tilting towards a payout (or what we finance types call an "exit event"), which was nice.

But time after time, I asked "interesting idea, but how are you going to monetize it?" and received back flowery explanations that boiled down to "advertising" or, worse, AdSense. One group was even more disconnected, explaining that their goal was to build a large community of users, then they'd "figure out" how to make money.

Here's a tip for all you budding startup junkies: A busy site can certainly make for a great hobby, a fun project to fiddle with, and maybe a few bucks at the end of the month, but (with precious few exceptions) that's not a business.

Advertising? Well, you can look at the slow dissolve of the traditional media -- newspapers, magazines, radio, broadcast TV -- to understand the great risks involved in believing that someone else will always underwrite your efforts, someone other than your users. Further, while there might be high-flying estimates of future advertising revenue in the online world, it isn't often highlighted that the competition is going to get tougher too. A company like IBM might spend millions on advertising, but their money is going to skew towards a small number of large sites, not a large number of small ones, meaning that unless you want to build a business on the nickel and dime PPC payouts of Google's AdSense, AuctionAds, and related, you've got a fundamental problem in your business model.

How much smarter to have a business that has figured out a compelling value proposition, a solution that's so slick, so useful, that users are happy to upgrade to a paid premium service. Not an awkward afterthought of useless tools for the less than one percent who upgrade, but something really revolutionary, something new and clearly cool. Unfortunately, there wasn't much of that thinking embodied in the groups I met this evening, and while I remain highly enthused about TechStars, I am a bit concerned about the likelihood that we'll see a bunch of home runs, or, heck, even a single or two out of the mix...

No question, it's going to be very interesting to see how these companies evolve over the summer as various of us mentors and advisors try to hammer home the idea that the difference between a good idea and a real business is a reliable revenue stream, and that the best way to create that is to offer a compelling, valuable business service.

Then again, there are plenty of startups that were acquired without much more of a business plan than "get lots of eyeballs", so maybe I'm completely off-base here. How important do you, dear reader, believe it is that a business have a clear and sustainable revenue stream identified in the earliest stages of its existence?

[Via Dave Taylor] 

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Fools I tell you, all fools! (but if I’m wrong, you’re still a fool)

People seem to be under the impression that a big ‘ol crash of Web 2.0 is going to rock the tech and Internet marketing industries, hardcore. We’re talking about predictions that are being compared to the dot com crash of the late 90’s and early 2001?ish. Are you guys serious?! People are also predicting left and right, on their blogs, on forums, in magazines, at networking or social events, pretty much anywhere you can think of, there are people saying “it’s coming, watch out for it”. Guess what? They are all wrong.

This is exactly what I’m talking about when I bitch about people being fake or not knowing what the hell they are talking about. It’s really true too. Because anyone with a brain can see that the dot com crash back in the pioneering days of the Internet explosion and the rash of Web 2.0 sites being launched (almost all of them in beta) are COMPLETELY DIFFERENT FROM ONE ANOTHER.

First off, I love the Web 2.0 start up and website launches going on. I like them because they are interesting, entertaining, and many of the ideas really are unique and interesting. But just like communism, many of them sound awesome on paper but are crap in reality and just won’t work out. But hey, that’s how business is. The important thing is that you tried it and failed, there’s no shame in that. I’d much rather try and fail, than wonder years later if it could have worked, and let it bug me like that. That’s the worst.

Secondly, here’s why there won’t be a Web 2.0 crash…. The industry is profitable. Yep. That’s why. I promise you, it’s really that simple. Sure there are hundreds of Web 2.0 sites and services and free stuff and this and that coming out every day it seems, but when you boil it down to the cold hard facts, they aren’t being injected with hundreds of millions of investment capital like the companies of the dot bomb era. The large majority of these 2.0?ers are starting up with very little of their own cash or none at all, so if they fail, the cash lost is only for those directly involved in the company, no outsiders really. Another thing that makes it very tough to cause a catastrophic crash is that many of these 2.0?ers are also just spin-off services or projects by small and medium profitable companies testing the waters with a subsidiary or independent product/service under the primary company’s umbrella. So even if the project fails, no one is depending on it to take the company to the next level, and there are no salaries or budgets that are relying on how much cash it makes. If it fails, it fails, and it won’t hurt anything except a few egos.

So let’s do a quick recap so you can steal my idea and regurgitate it on your blogs, forums, networking and social events, etc etc.

There will be no 2.0 crash because:

1. Hundreds of millions of dollars from investors are not being injected into these 2.0 companies and projects.
2. The average 2.0 start-up company or project takes $10,000 or less to build (and that’s the expensive route).
3. The industries they are creating sites/projects for are not depending on them for anything (they are more or less just a cute idea to help automate or connect you with something you probably don’t need anyway).
4. The people who are independently creating the 2.0 sites and projects are individuals investing their own cash into it, there aren’t many outside investors involved, nothing even remotely close to the dot-com rush and bust, plus if it bombs, the people inside the company are the only losers, doesn’t really effect anyone on the outside. (sorry, but you won’t be missed, and tragically for you, you’ll most likely be forgotten just as quickly).
5. The companies creating small 2.0 projects or subsidiary projects in a Web 2.0 package are not putting shit piles of cash into it, therefor their current business assets and cash are not fueled by the success or demise of the 2.0 deal, and if it does fail, it will benefit more as a tax write-off/loss than if it were a success.
6. They have lovely colors and design beauty attached to them, and NOTHING so beautiful looking can ever die!! (I’m not a designer, but that’s what I would imagine they would say/think — suckers!)
7. Ajax is not overrated, yet!
8. Google has not paid more than $2B for one of them yet.
9. They are fun to watch going from start-up, to beta, to waiting to get out of beta, to waiting some more, to dying without anyone giving a crap about them being around in the first place!
10. People outside of the tech and Internet marketing industry have no idea what Web 2.0 is! If the whole damn thing came tumbling down, they wouldn’t even notice it. Hell, they’d probably think you were talking about stuff from 1999.

This is why I know there won’t be a crash of 2.0 sites and projects…. because no one would care! Web 2.0 in my mind (and a warped mine it is folks) is a form of creativity mixed in with some business goals and potential achievements. I hope it stays around for a long time, and if the design of it changes, then we’ll call it Web 3.0, Web 4.0, etc. But when you strip away the sweet designs, all your left with is just a bunch of concepts, some cool, some retarded, some innovative, some not worth mentioning with a straight face, but all creative to some degree, and that’s what I like about it.

The end. Story time is over. Have a goodnight.

[Via - Aojon.Com]

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Don't Get Burned By Web Designers

Web Design Tips For Building A Successful Site
Two Possibilities: Happiness Or Suffering

If you bring up the subject of web design with small business people, it wouldn't take long to find someone who has been burned by a web designer. Perhaps they have even come to the conclusion that a web site is not worth the expense. Let's look at how and why that happens, and outline some success principles that will help you when you need web design services. Since so many web designers get it wrong, the web design principles that actually work may surprise you.

One of the problems with web design is that software programs have made it seem easy to create a web site. If you have the software, it would not take you long to build a web site. There are an abundance of inexpensive templates available to make it even easier to put together a web site. Getting a professional looking web site is not difficult at all. So you may wonder, why is that a problem?

The process of creating a web site does not end with making it look professional. In fact, that could very well be one of the least important aspects of a web site design. Let's face it, there are ugly web sites that make a lot of money. Since life is not fair, there are great looking web sites that make little or no money. I'm not saying the professionalism of your web site is not important; I am saying it's not enough.

There is a serious flaw in the web design industry, and small business owners are especially prone to fall victim to it. The problem is that usually, very little business planning goes into a web site design. Too many web designers are more concerned with selling web design than taking the time to build an effective web site.

This deficiency stems from the fact that very few web designers are marketing people. Small business people do not have big advertising budgets, so they are easily attracted to the low rates of average web designers. Good marketing means setting priorities and effectively using your resources to accomplish goals.

The one element I find seriously missing in web design is the very thing that is fundamentally important; that element is uniqueness. A Unique Selling Point (USP) is one of the basic tenets of marketing. You must answer the questions: why should I buy from you, and, what makes you different from my other choices? If you fail in this area, your web site visitor will not be kind to you. They will leave and not come back; they will probably not tell you why they left either.

Read your web site copy to see if it contains another common error. Does it say, "We this," and, "We that?" Do not "we" on your web site visitors! Your web site copy should speak to the visitor, address their needs, and solve their problem. It must compel them in some way. You need to draw them in and sell them on your solution.

When you take notice of how many web sites violate these basic marketing principles above, you will begin to see how you have the opportunity to rise above your competitors. Just think, if the majority of business web sites are violating even these most basic principles, how much more could you benefit from hiring a web designer who understands marketing?

There is a lot of emphasis placed on search engine optimization (SEO), and there should be, because this is very important if you want to have your web site found by people using the search engines. For most web sites, search engines account for 80% to 95% of all visitors. However, as important as SEO is, if you have a web site that is not creating sales with the visitors you are already getting, SEO is the wrong priority.

The next principle is the one you will probably find the most surprising. People actually read web sites! Yes, they do have a short attention span, and we will look at that point next, but they do read. There have been many studies done to document the way people use web pages. Even though so much attention is given to graphics, the studies show that well over 75% of the time, web page users read the text before they notice graphics.

This does not mean that graphics are unimportant. Visual elements are one of the many advantages a web site can provide. When you consider that people use the Internet to seek information, then it does makes sense that they will read your web site's content. Providing the right information can mean the difference between winning a customer, or surrendering them to your competition.

I also promised to cover the short attention span issue. It is often called the 3 second rule. According to web studies, if you cannot capture the attention of your visitor in approximately 3 seconds, that's how fast they usually leave your web site. I suspect the reason is because so many web sites are such a horrible waste of time, that people's patience has been worn down. The solution is to have a fast loading page that quickly clues them in that you can solve their problem. If they can "skim" in a few seconds, and you grab their attention, you have successfully drawn them in so they will stay a while.

Statistically, it takes 7 visits before you make a sale. If your web site is not done correctly, you will have dismal results because you can't get them to come back seven times. That is why so many web site owners are disappointed with their success. That is why some web designers provide what seems to be a bargain, while other web designers have to charge more to give you a better value. It takes more time to plan and create a good web site design.

The good news is that most of your competitors will go for the bargain and suffer the same fate as everyone else who does not realize the value of an effective web site design. Very few of them will invest the resources needed for success. If you do, you can win. This does not mean you need the big budget of a major corporation, or that it has to be expensive, it just means you need to be willing to do better than average. The rewards are much greater when you stretch beyond the norm.

About the Author: Steve Chittenden seeks to help business owners and organizations market themselves effectively and succeed. His company, Creative Business Services, provides carefully planned web design, graphic design, writing, and marketing services aimed at achieving this goal. Please visit www.cbscreative.com for more information.

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Desiring What Is

Do I need a web site? That is the question often asked by business owners.

The answer will usually depend upon the type of product or service offered and what the business is trying to achieve. Some products/services are more suited to the web than others. Plus, a well designed web site can be a superb tool for communicating with customers, prospective customers, suppliers and the wider community.

For most service businesses, I'd say "Yes, you do need a web site."

There are many ways to be 'on the net', with ISP's, web designers and web hosting companies offering businesses many options in how this can be achieved. However there are also advertising and sponsorship opportunities that may be cost effective for businesses, either through web sites or email communication.

Is the web for you?

As use of the Internet matures it appears that company/branded web sites are particularly important for products and services that are high-involvement purchases. Examples are cars, finance, computer equipment, and professional services where a buyer will actively seek details for comparison prior to making a purchase.

Conversely, for products that are typically low-involvement or commodity purchases a dedicated web site may not be the best answer. It may be more cost effective to concentrate on building brand awareness via advertising and sponsorships on web pages (or email newsletters) that have content relevant to the target audience for the product.

But the Internet does lure businesses with the potential of trading on a larger scale. It is up to individual business operators to decide how important this opportunity is for them. If you are thinking about creating or expanding your web site it is suggested you focus on being either a major force in your local/regional area, or gear up for servicing a national or global market.

If you decide to join the growing number of businesses using a web site, you must also give thought to the type of site you will use. Apart from the 'look' of the site, content and functionality must be considered.

Your options

Web site options range from a single page (long or short) with contact details, to information sites and brochure-ware layouts that incorporate basic product images and descriptions. At the top end are full scale ecommerce sites that process credit card payments online, track your previous purchases, allow interactivity with the site and other customers, and provide personal login facilities to access data.

In many cases the development costs for hand-coded web sites with custom built shopping carts, custom product database and online payment capability starts at around $8,000. For larger sites requiring complex coding and special functionality it's easy to go over this figure.

However, there are now less expensive options available, including the use of Content Management Systems (CMS). A CMS makes it easy to create a site and make changes. No special programming knowledge is required. The CMS interface is very much like using a word processor. And you usually pay by the month. It's like renting your web site. Depending upon your level of skill, you may still need help to create your own graphics or pictures for use on the site. An example of a CMS is www.sitezero.com.au.

Another option is to use a "virtual" web site designer. These are simply web designers that work on a remote basis (i.e. virtual). The virtual designer will create a site to your your individual needs dealing with you by phone, fax and email. They often offer low-cost monthly update services so you never need to worry about learning the technical side of your web site. An example of this type of service is www.bizmagic.com.au.

Some major web directories (e.g. Yahoo) also offer a do-it-yourself online store facility.

Online payment systems

There are numerous options for accepting online credit card transactions that can ecommerce-enable existing HTML web sites. One example of these internet based payment systems is the Australian service www.gopay.com.au. Major banks also offer payment facilities, as do international services such as www.worldpay.com.

Marketing your web site

Once you have your web site up and running, you also need to make sure it is found on search engines, such as Google. It's a fact that for many businesses traffic from search engines is extremely important, with up to 80% of internet users finding sites through search engines.

Online marketing includes: Optimising your site to achieve high search engine rankings Pay-per-click ad's on search engines (e.g. Google and Overture) Listing in directories - Yahoo, DMOZ, industry listings etc Banner ad's on other sites Newsletter (or e-zine) advertising Reciprocal links with other sites And much more, like: - Affiliate programs - Having articles published online - Educational webinars - etc etc...

About the Author: Stuart Ayling runs Marketing Nous, an Australian marketing consultancy that specialises in marketing for service businesses. He helps clients to improve their marketing tactics, attract more clients, and increase revenue. For additional marketing resources, including Stuart's popular monthly newsletter, visit his web site at www.marketingnous.com.au.

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For many consumers today, travel is more than just a change of scenery--it's a journey with a sense of purpose, whether it's eco-tourism, cultural immersion or adventure. Creating an experience for jet-setters can be your ticket to success in this $600 billion industry.

Baby boomers are the biggest market, with the highest volume of travel, says Cathy Keefe of the Travel Industry Association of America. They took a staggering 268.9 million trips in the U.S. in 2003, according to TIA's "2004 Domestic Travel Market Report." They not only have the time and disposable income to travel, but their sense of youth and yen for exploration is also spurring opportunity in the adventure-travel niche. While this segment can include extreme adventures like rappelling or white-water rafting, boomers typically seek out "soft" adventures like safaris, bird-watching and sailing. Keefe also notes a rise in luxury adventure tours, where days might be spent roughing it, but nights are spent in cozy quarters.

Other sizzling markets include women (think culinary tours and spa getaways) and adults who want to learn a new skill, sport or hobby--30.2 million adults, in fact, took an educational trip in the past three years, according to the same TIA report. Millennials (those born after 1982) hold tremendous opportunity for entrepreneurs as well. Millennials are an adventurous bunch and will go online to research and book trips. To learn more about offering travel services to any generation, Keefe suggests attending adventure and travel expos and industry conferences.

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What Offers Work Best In Direct Mail Campaigns

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The offer you make in a direct mail package needs to be carefully thought out and matched as closely as possible to the interest, needs, and motivations of the list. And as a general rule of thumb the more specifically matched the offer and list are the higher the response rate.

Here are two simple examples to help you understand this idea.

Example one, John's Sporting Goods Store mails a brochure about his upcoming sale on skiing and hiking equipment to every resident in his store's neighborhood. His offer may be great, 25% to 50% discounts, a free gift for everyone who comes in, but his response will still probably be very low because of a high waste factor in his mailing.

Let's say John mailed 10,000 brochures. As few as 15 to 25 people may come in. A response rate of only one half of one percent or slightly worse but that's deceptive because of the waste factor. Of the 10,000 residents mailed only 1,000 of them maybe interested in skiing or hiking. If that's true and fifteen people come in that may represent one and a half percent response rate, which is usually acceptable.

Example two, John's Sporting Goods Store mails the exact same offer as in example one but he only mails a thousand brochures to a list of people in his store's neighborhood who are subscribers to Skiing, or Hiking, or Field and Stream Magazine.

In example two John's list acquisition cost will be much higher than example one. In example one the resident list may cost only $35 to $40 per thousand names. $350 to $400 for the 10,000 names. In example two the list may cost a $150 or even $200 for just the thousand names and in example two the cost of printing the brochures will go up dramatically per unit.

In example one the 10,000 brochures may cost only a nickel each, $500 total. In example two, the thousand brochures may cost twenty cents each, $200 total. However, in example two John saves almost two thousand dollars in postage by calling the waste factor out of his mailing. Overall he spends about 2,500 dollars less with the sophisticated approach in example two and gets the same results as he would with the costlier, less sophisticated example one.

Most small businesses and many big businesses waste substantial sums of money by taking the less sophisticated, easier approach. If the typical small business like John's Sporting Good Stores conducts just four direct mail campaigns a year and there's a $2,500 differential available each time that's $10,000 a year that can be wasted or saved.

$10,000 is a lot of money to a small business. Part of the magic of the sophisticated approach is the list to offer match. But to be successful you must also develop a very good attractive offer.

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Alignment In The New Consciousness

NEW YORK (CNNMoney.com) -- Starting your own company is a big challenge, but staying positive could be an even bigger struggle.

No matter what kind of business you have, if you are not committed to a "failure is not an option" mindset, you are setting yourself up for failure, says Neil Anderson, president of The Courage Group, a consulting firm for entrepreneurs.

Indeed, only two-thirds of new small businesses survive at least two years, and just 44 percent survive at least four years, according to a study by the U.S. Small Business Association.

To avoid becoming another start-up casualty, the right mental state is crucial.

So when the bills begin to pile up, and clients or customers are few and far between, don't be tempted to throw in the towel. Instead, keep your mind and mission on track.

Anderson offers these tips to help stay out of the failure trap:

Go mental. One of the most important elements to starting a successful business is being mentally prepared. Of course, skills, actions and good old-fashioned luck are also important factors, but it all begins with the right frame of mind.

To that end, stay away from people who are negative and may try to bring you down. Anderson admits that he fired his own girlfriend in the early stages of building his business, because of her pessimistic attitude (the relationship didn't work out either).

She would say things like "you used to make so much more money working for someone else," Anderson explained.

People can be negative simply because they are jealous that you had the courage to follow your own dream, not just talk about it, Anderson asserts.

Virtual reality. Although there will be many ups and downs, a light does exist at the end of the tunnel, and it is bright. By visualizing success, your actions will become more confident. And increased confidence breeds success.

Anderson advises entrepreneurs to think about why they started a business in the first place. Perhaps going back to work for someone else is not an option. In that case, just reminding yourself of the alternatives: being at the mercy of others controlling your life, playing corporate politics or reporting to incompetent bosses should be sufficient motivation to keep your mind right.

It's all about sacrifice. A big component of the "failure is not an option" mindset is knowing that certain personal or financial sacrifices will need to be made along the way in order to achieve your dream. Entrepreneurs who have made sacrifices and prospered did so because they realized early on that starting and building a great company comes with a price.

Risk is not a four-letter word. Keep in mind that success comes to those who recognize risk, are unafraid of it, and will execute on their ideas. If you are risk-averse, your chances of business survival will probably be slim.

"I cashed in all my chips, my 401(k), whatever I could... I was willing to bet it all," Anderson said of his consultancy firm, which he got off the ground in 2001.

A hungry dog hunts better. "My father said that to me at the outset," Anderson said. When clients or customers are few and far between and money is tight or nonexistent, successful past and future entrepreneurs will always find a way to drum up another sale.

When times get tough financially, you really have only two choices: decrease your expenses or increase your revenues.

A roadmap will lead you to success. A business plan, which is a written description of what you are going to do and how you are going to do it, is the entrepreneur's roadmap. It forces you to think about the entire operation and come to terms with the businesses strengths and weaknesses. Entrepreneurs who do their homework increase their chances for business success.

"Don't look at it as a hassle or burden, look at it as an opportunity to survive," Anderson said.

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YoYoNation.Com - How To Become A Yo Yo Entrepreneur

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http://www.yoyonation.com/

You can become a toy retailer by purchasing products from wholesalers, then reselling them through your own website, through websites like eBay or through a brick-and-mortar store.

That's the route Pat Cuartero, 26, and Weber Hsu, 27, of YoYoNation.com, an online yo-yo seller, took to become toy tycoons, with projected 2007 sales of $1.1 million. Just two years ago, when the guys were assistant vice presidents on Wall Street, it occurred to Cuartero, who is a world yo-yo champion, that there wasn't a good source for the high-tech yo-yos he uses to impress judges and audiences. Starting their online business part time, the pair soon found themselves getting just one hour of sleep a night to keep up with orders. Within a year, they both quit their six-figure jobs to devote all their time to the New York City business.

Cuartero found product vendors by tapping into industry contacts he made while on the yo-yo competition circuit, but most new toy sellers have to find their products the old-fashioned way: through research and sales calls. Fortunately, toy fairs and the internet have made locating products easier.

What's more, you don't even necessarily have to stash your stock in a warehouse or your home or garage, as Cuartero and Hsu currently do. Depending on the type of toy you are selling, you may be able to enter into a drop-shipping agreement, where you take orders for the product and turn them over to the manufacturer, who in turn ships toys directly to the customers. As a drop-shipper, you will earn a percentage on each toy you sell--and all you need to do is write the order, process the payment and forward it to the manufacturer.

Internet sales portals such as YoYoNation.com are rapidly becoming the sales channels of choice for new toy sellers, especially since it can be very difficult to catch the eye of big-box retailers. With a minimal investment, it's possible to get a website up and running quickly, and such sales channels are no longer seen as the stepchildren of the retail industry.

[Via - Entrepreneur.Com]

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As we start a new year, it's always helpful to take some time to slow down, look back and evaluate the year gone by. Examining the past year's e-mail marketing efforts and results can help you uncover new ways you can improve going forward.

To get started, take a moment to review the results of your e-mail campaigns from the past 12 months (this is where the reporting features of an e-mail marketing service really come in handy). Then, ask yourself the following questions:

1. What was I trying to accomplish with e-mail marketing, and did I do it? What was your goal for your e-mail marketing efforts? Did you achieve what you set out to do? Did you measure the results? Is your e-mail marketing adding significant value to your organization? Did you uncover other useful purposes for e-mail marketing? Asking these questions can help you set your goals for the upcoming year.

2. Did I grow my list, and is it better segmented? There are many great opportunities to grow a list. Looking back, how did you do? Did you collect e-mail addresses whenever you got the chance--at events, during networking, at point of sale and on your website? Does everyone in your organization ask for e-mail addresses? What can you do differently to grow your list even more this year? What about segmenting? Did you divide your list into groups so you could send more targeted e-mail campaigns? How can you further segment your list forwarding the future?

3. Did I send consistent, high-value e-mail communications? With e-mail marketing, you have a great opportunity to stay connected with your list members. Did you communicate with them as often as you intended to? Or on the flip side, did you contact them too often? What about the quality of your campaigns? Did you spend the time you needed to create compelling content that included images and well-written copy? Did you put thought into offering your list members information they'd value and find useful? (Hint: Your open and click-through rates can help you figure out their interest level.) How can you improve your communications next year?

4. Which of my e-mail campaigns got the best or worst results and why? Look at your e-mail campaigns and identify the winners and the losers. What can you learn from them? What topics were your readers most interested in or not interested in at all? What did you do (promotions, subject matter, etc.) that, judging by the response, you should do again? What day and time worked best? You can take this information and modify future campaigns based on it. Create a new e-mail marketing plan that includes what you want to do more of and what you won't do again.

5. What did I do to become a better e-mail marketer? Did you ask friends and colleagues for their input on your e-mails? Did you ask your list members for feedback and incorporate their suggestions? Did you take advantage of some of the free e-mail marketing resources available online, like webinars and articles? Did you read a book about e-mail marketing? Did you review campaigns from other companies for ideas? It might be overwhelming to think of doing all these things, but why not set a goal for this year that you'll pick one or two of these activities? You'll be glad you did.

By taking a moment to ask yourself "How did I do?" you can make positive changes to your e-mail marketing efforts that'll help you get even better results. After you answer the questions above, you'll be well on your way to having your best e-mail marketing year yet.

---

Gail F. Goodman is the"E-Mail Marketing" coach at Entrepreneur.com and is CEO ofConstant Contact, a web-based e-mail marketing service for small businesses. She's also a recognized small-business expert and speaker.

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