Tag: Marketing

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Another Social Economy edu Social Software

Can You Spot My Reeses Peanut Butter Cup Moment? Part 2

#7. PRACTICE THE ART OF COLLISION

The Reese’s Peanut Butter Cup is a metaphor for life. What seems completely new is often just an unexpected combination of the familiar but previously disconnected. This is Innovation 101, but too often we forget, and think the one asset we have is the answer, rather than asking what we can bundle it with to transform its value.

— Mark Payne on Blogging Innovation: The Ten Tenets of Transformation – Innovation blog articles, videos, and insights

Background

In my previous post, I described how I was struggling with my lean start-up sales and marketing efforts on seemingly two separate fronts. In keeping with my perseverance theme, here’s how I combining these two  into one complimentary offering, yet still affording me the possibility of either one, or, better yet both launching a business.

Ingredients

  1. My peanut butter – AnotherSocialEconomy: A service that anonymously connects consumers – who already know exactly what they want with local retailers – who actually have it in stock. It’s like Google Local Shopping only way simpler and more accessible for small and medium-size businesses (SMB).
  2. My chocolate – edu.cyn.in: A social software platform enabling collaboration not just within the class, school but across geographies. It’s like Facebook, YouTube, Flickr, MSN, Twitter, Blogger, Wikipedia, iTunes, Digg, Google Calendar and more, all in one integrated and monitored web site.

Directions

  1. Offer limited edu.cyn.in membership to local schools and organizations providing extra-curricular activities for free.
  2. Offer limited edu.cyn.in education and mentoring services to students, teachers, staff and parents on how to get the most of the platform with regard to sharing, commenting and rating content – for free.
  3. Offer limited edu.cyn.in education and mentoring services to students, teachers, staff and parents on how to get the most of the platform with regard to self-organizing projects and events thereby reducing phone calls and oodles of emails with attachments.
  4. Add AnotherSocialEconomy Widget to edu.cyn.in.
  5. Offer those edu organizations free local Sponsor links in edu.cyn.in.
  6. Offer those edu organizations the opportunity to become AnotherSocialEconomy Retailers, Influencers, Resellers and/or Referrers.

(Should) Yield

Our Reeses Pieces should consist of a hyper-local (thanks Flack Maguire) online community of consumers and retailers/merchant/service providers. If we succeed in educating and mentoring are target edu.cyn.in audience, we could have one, or, two adult pair of eyes for every student pair of eyeballs. So one class of 25 students could yield anywhere between 2 and 50 additional eyeballs on edu.cyn.in. The better we educate and help folks adopt the social software, the greater chances we have of increasing those hyper-local eyeballs. The more eyeballs, the greater the chances we have of getting folks to use AnotherSocialEconomy’s Widget. More local consumers, more local merchants.

Additionally, since we’re also Cynapse Reseller, we’ve also introduced a whole new crop of highly qualified prospects into our sales funnel.

Stay Tuned

Please feel free to comment below and let me know your predictions. Will our ingredients yield another Reeses Pieces, or, is this plan going to curdle? Just remember, the alternative approach could be to pay Google AdWords $7500 a month for pay-per-click search engine marketing (SEM) and pray that’s cheaper than the time and hosting frees we’re currently investing.

Categories
Another Social Economy edu Social Software

Can You Spot My Reeses Peanut Butter Cup Moment? Part 1

#7. PRACTICE THE ART OF COLLISION

The Reese’s Peanut Butter Cup is a metaphor for life. What seems completely new is often just an unexpected combination of the familiar but previously disconnected. This is Innovation 101, but too often we forget, and think the one asset we have is the answer, rather than asking what we can bundle it with to transform its value.

— Mark Payne on Blogging Innovation: The Ten Tenets of Transformation – Innovation blog articles, videos, and insights

Worlds Apart?
Worlds Apart?

The Chronicles

Peruse my blog and you’ll see I pretty much chronicle my experiences as an ultra light, non-funded, start-up entrepreneur. You’ll also see that I divide my time, not necessarily equally, among two main efforts: 1) called :Twetailer, which has morphed into :AnotherSocialEconomy and 2) :edu.cyn.in. While both were born out of a burning desire to correct something I found profoundly wrong, yet so “simple” to fix, I’ve always considered them to be worlds apart. That was until I tried to fill a void in my execution plans – sales & marketing. Now I know these are not subjects to be treated lightly but, in my own defense, I was primarily concerned about the Guy Kawasaki lesson How to Change the World: Defensibility. With all that reasonably taken care, I started educating myself on Search Engine Marketing (SEM). As a matter of fact, my very last post was how I used that new knowledge to rethink AnotherSocialEconomy’s :Widget. Who knew? It was not only another entry point/channel/stream into the system (remember, I’m a techie) but it actually competes – quite nicely, with Pay-Per-Click (PPC), Cost Per Click-through (CPC) and Cost Per Action (CPA).

Selling sucks

In the early days, I tried getting schools to pay for the edu.cyn.in service but, being a techie and not a sales rep, failed. There was either not enough budget to go around, not enough qualified staff to support the service, or, simply the FUD Factor (Fear Uncertainty and Doubt). But I’m a persistent bugger and based on my prior experience with social software on the Internet, within enterprises and even within schools, I  just couldn’t give up.

I knew the service was greatly appreciated by the kids. I knew the service was greatly appreciated by educators – albeit a special select few. And as a parent, I also knew the frustration of organizing events, committee meetings, car pools, other extra-curricular activities and even purchasing related goods and services.

And on top of all this pressure to sell edu into schools, I was still struggling to sell AnotherSocialEconomy – which needed a way to reach retailers & consumers.

Started getting that sinking feeling

Things just seemed to be getting worse.  Was I going to be one of those start-ups with a great idea – in my case, two great ideas that no one other than myself, Dom & a few others knew about? It’s not like I don’t know my limitations.  I think I’m a pretty good technical business analyst, software product manager, maybe even a social media manager. I love pre-sales demos, presenting at shows and conferences, have a pretty cool online education story to tell, love story telling and I’m pretty pleased with my stickman videos and presentation creations. But I just can’t seem to get past this marketing & sales hump. I’ve tried to bring in others but it just hasn’t gelled yet. Maybe some seed money would be the way to go. Either way, if I don’t get any traction, I’ll probably have to drop edu. Yikes! That would really hurt because not only have the Cynapse folks been more than fair with me (I’m also a struggling Reseller), it would mean that my daughter Sara & friends would lose the service.

Perseverance

Back in my IBM days, Perseverance was not only a welcomed characteristic, but encouraged too (by some). In a company of over 390,000 (at the time), it was all too easy to say things like; “I’m waiting for so-and-so to get back to me”, or, “Today’s first agenda item is to decide when we’ll meet again to discuss this matter”. If you truly wanted to make a difference, you had to persevere – you had to press on people, press a few buttons, or, as my wife Anna says, I just had to continue being the real pain in the ass I can be.

Dropping edu, dropping, AnotherSocialEconomy, getting a real job are options I’m just not ready to accept yet. What I really have to do is find a better way to persevere.

Suggestions?

Do you have any suggestions on how I can make edu & AnotherSocialEconomy work for each other? Stay tuned for Part 2.

Categories
Another Social Economy Startup Life

The Yin Yang of Techie Start Ups

yin yangIn Chinese philosophy, the concept of yin yang is used to describe how polar or seemingly contrary forces are interconnected and interdependent in the natural world, and how they give rise to each other in turn… Yin yang are complementary opposites within a greater whole. Everything has both yin and yang aspects,.. constantly interacting, never existing in absolute stasis.
— Yin and yang – Wikipedia

Background

We’ve reached our techie milestone. We have quality code running in the Google AppEngine clouds. We’ve validated our concept with as many people that will listen to us. We’re at the point now where we have to validate with the market. We need users. More specifically, we need Consumers and we need Retailers. We need marketing & we need public relations (PR).

Challenge

So while the real techie – Dom Derrien, can breath a little easier, the other – me, with my techie background, has to go out and market the crap out of Twetailer. But, I’m not really a marketing kind of guy. While I absolutely love demoing and presenting and evangelizing, I’m not particularly strong at finding the right people to get in front of. So, I need to find myself a marketing guru. But being an ultra-light start up (read “living of my wife and kids”), I need to find a marketing guru – preferably one shooting for the social networking sphere, who’s willing to drink the Kool-Aid. Fortunately, Marc Bienstock likes Kool-Aid.

Lesson Learned

Twetailer was conceived and originally targeted for techies like ourselves – cube dwellers. Which is fine, since we never planned on using the line “If only 1% of China…”. So demoing to techies was never a real problem, despite some minor usability issues. But in order to get to the next level, we had to demo to prospective partners, prospective CEOs, prospective Consumers and prospective Retailers. And the further away we got from the cube dwellers, the greater the usability issue became for those higher up in the org chart – tower dwellers. Thankfully, everyone got the true value of Twetailer’s service:  “Brokering Consumer Demand with local Retailers’ available Supply – via simple messages, for f(r)ee, or, Reverse Retailing”. But even our own accountant and lawyer turned on us with comments like “Can’t I just have one button to press? I’m not very comfortable with all this texting stuff. Hey, I have a great idea! How about an app for my Blackberry?”. Not bad for tower-dwellers, eh? 🙂

So now I think I understand. While I originally intended to service techie consumers, I needed non-techies to help me get that service to them. In other words, my techie solution had a non-techie dependency.

Time to Pivot

It pays to get out of the basement. Last April, I attended the Montreal venue for the Startup Lessons Learned Conference where among other gems, I was introduced to what Steve Blank calls Customer Development process and Eric Ries calls the The Pivot:

“Pivoting” is when you change a fundamental part of the business model. It can be as simple as recognizing that your product was priced incorrectly. It can be more complex if you find your target customer or users need to change or the feature set is wrong or you need to “repackage” a monolithic product into a family of products or you chose the wrong sales channel or your customer acquisition programs were ineffective.

Modified Business Model

Originally, the fee plan was to charge both Consumer & Retailer a transaction fee similar to that of Amazon Flexible Payments Service fees (about 3%). But after speaking to several people, it became clear we couldn’t build a sustainable business like that. The common thought was the best idea is to solve a real business problem and charge money for it. So we’re going to charge a monthly subscription fee for registered Retailers. And because Marc felt Twetailer was too generalized and people needed a sense of urgency to use it, we’ve also introduced a Reseller distribution channel with our first one being targeted towards golfers & golf courses. (Congrats to Marc for being our first Reseller!) And to address usability issues, we’re offering a Managed Service for those non-techie Retailers out there.

Modified Development Roadmap

As much as I didn’t want to go down this route until there was actual income to pay for it, I seem to be in a Catch 22: If we don’t build it, they won’t come. If they don’t come, then I can’t afford to build it. So we re-prioritized some things & built it – an Android app targeted for the Golfer (Consumer) wanting to find a local Golf Course (Retailer). And since Twetailer is vertical agnostic, we’re making the app open source so other’s out there may be encouraged to built their own vertical, or, reseller market using our open application programming interface (API). Oh and by the way,  for those of you like my good buddy Rick Boretsky who think only techies have Android mobile devices, I encourage you to take a look a the First quarter 2010 information from The NPD Group’s Mobile Phone Track which reveals a shift in the smartphone market, as Android OS edged out Apple’s OS for the number-two position behind RIM.

Golf Pivot Videos

Please take a look at our pivot trilogy (less than 10 minutes) and let me know your thoughts. The first is intended to address our target audience with the second identifying their pain and the third illustrating our solution (for non-techies and techies alike).

Reflection

What do you think? Am I setting a bad precedence? Am I clouding my inability to market/sell my start up by throwing more code, time & energy at the problem, as opposed to, finding/solving the root-cause? Or, do you think this is a step in the right direction?

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