Granted, Mr. Zuckerberg is in an enviable position and stands to “actually” be worth a fortune one day. However, Facebook’s value to date has largely been determined by ambulance-chasing venture capitalists, not sound business fundamentals. The folks at 37 Signals have some interesting thoughts on this matter.
Personally, I think Mr. Zuckerberg should have waited a decade or two to make this announcement. In other words, go public, prove your quarterly earnings over several years and let the market dictate the company’s value. Chances are it’s nowhere near the $33 BB starstruck Forbes claims it is.
If Mark Zuckerberg were Bill Gates, Warren Buffet or any other seasoned billionaire, no one would question his generous donation. Unfortunately, committing $100 MM when the company you founded is taking on venture capital, hasn’t gone public or developed a proven business model, seems a lot like the dot com glory days of the late 1990′s.
I’m always dismayed with fees and surcharges associated with improving the efficiencies of an organization, in particular when transacting online. Often referred to as “convenience fees,” these small charges rarely amount to more than a dollar or two. However, they are counterintuitive to the efficiencies of online commerce.
Of course, some fees are understandable. For instance, fees associated with purchasing movie tickets online, calling American Airlines to reserve a flight (when a flight can easily be booked online) or sending money through PayPal all have merit.
Ticketmaster, on the other hand – with convenience charges, service charges and processing charges – is notorious for causing angst among consumers. It’s not uncommon for fees to amount to 50-60% of the cost of a concert ticket.
Switching gears a bit, I’ve owned an S-Corp in the State of Illinois since August of 2000. As such, I’m required to file an annual report and to pay a nominal fee to the state. With August a few days away, the deadline for filing this year’s report is quickly approaching. Furthermore, I own an assumed name for my company so, every 5 years, I must re-register and pay a $150.00 fee. In my opinion, these costs are understandable!
Like many states, Illinois offers business and consumer services through a website, so naturally I began there (Cyber Drive Illinois). That was, until I realized the fees!
As you can see from the screenshots below, Illinois adds a $5.00 processing fee and an un-opt-out-able $50.00 expedited fee for 24 hour processing.
In other words, had I continued with each transaction, I would have incurred $110.00 in extra fees just for filing this year’s reports. That’s equates to an additional 44% for the “convenience” of filing online. No thanks! Instead, I slapped a stamp on each envelope and saved $109.16 in unnecessary government processing fees.
While I’m sure many business couldn’t care less about state filing fees, for a small businesses like mine, these costs are unreasonably high. I did have the choice to mail my applications – which I did – but unchecked fees like this can only occur in a monopoly. If the State of Illinois actually had to complete for these services, or Ticketmaster didn’t not have exclusive contracts with so many concert venues, there’s no way that consumers would tolerate these fees, especially for contributing to a more efficient process.
The ad below appeared in the middle of Cars.com’s homepage tonight. There’s nothing out of the ordinary about the ad except for when you try to close it.
One would think that all I’d have to do is select the word “CLOSE” in the top corner, right? Ah, but that would be far too easy (and wouldn’t guarantee a healthy number of click-throughs).
Instead, to remove the advertisement from page, users must select what looks like a series of stacked X’s just to the right of the word “CLOSE.” Selecting “CLOSE”, or just missing the Xs, actually launches a web page promoting the 2011 Buick Regal.
To confirm my initial observation, I actually loaded the page multiple times in two different browsers – Chrome and Firefox – and got the same result each time.
While I’m sure most users don’t give this minor annoyance a second thought, to me ads like this represent the bottom-of-the-barrel in online marketing tactics. I hope the people at Buick recognize that they’re paying for bogus and deceptive clicks to their website.
Not an artist in the traditional sense where I paint, sculpt, sing, and dance, but an artist because I give, innovate, create, and ship, all without a map. In fact, I’ve been an artist my entire life.
I’ve given and created in my entrepreneurial endeavors and non-profit activities.
I’ve given emotional labor to employers by developing strategies, websites, content, and branding experiences, without set precedents. And though not always appreciated or recognized for my art, companies still hang my art on their walls, post my art online, send my art to clients, and use my art to sell their products and services.
And I have plenty more to give – in creativity, innovation, logic, structure, and art – to future employers, non-profit organizations, strangers, and entrepreneurial ventures.
Napoleon Hill said that “motivation is like a fire. Unless you continue to add fuel, it will go out.”
If last week’s CES conference in Las Vegas was any indication, 2010 is going to be the year of the tablet. Though these book-like computing devices have been around for years, they have yet to gain significant traction in the marketplace. Yet with rumors of such a device being introduced by Apple, the frenzy around tablets has reached an all time high.
Case in point, at CES alone, Lenovo, Sony, ViewSonic, ICD, HP, Entourage Systems, and Plastic Logic, all revealed tablet-like devices, with varying degrees of functionality. It’s clear that no one wants to be left standing without a chair when the music stops the same way they were when Apple launched its iPod, or iPhone for that matter.
The trouble is that even with all the hype, there’s still no clearly defined need for such a device. Sure, Sony, Barnes & Noble, and Amazon have had success with their respective digital reading devices, but is there any specific consumer need that is not already being met by laptops and mobile phones?
My guess is that Apple’s tablet, if it’s unveiled, will basically be a larger iPhone (I don’t own an iPhone) with the ability to watch movies, listen to music, surf the internet, download apps, purchase digital content (books, newspapers etc), and even control household devices. Given Apple’s knack for design and ingenuity, I’m sure the device will be a hit among Apple enthusiasts.
Unfortunately, I don’t believe the same will be true for the other companies competing in the tablet market because 1) Apple already has an enormous advantage with iTunes and its app store and 2) because the market for tablet devices to date has been lukewarm at best.
Do consumers really need seven, eight, or more tablet options? Time will tell.
This post was originally published on www.InspiredConceptsInc.com.
On two separate occasions this past month I’ve found a lightweight application called the Browser Highlighter installed on my computer without my permission.
A quick internet search reveals that tool is owned by EBay and according to its website, the Browser Highlighter “helps you take some of the legwork out of web-surfing by highlighting things like products, phone numbers, important people, and other cool stuff.”
That’s great for people who like product, phone numbers, important people, and other cool stuff highlighted in their browser but I’m not one of these people!
I first encountered the Browser Highlighter when I opened Firefox one day to find it installed as an “add-on.” Since my browser is extremely personal and customized, I quickly tried to uninstall the application. Unfortunately, none of the traditional ways of uninstalling “add-ons” seem to work and, as a result, I had to search through forums, contact the Browser Highlighter directly (I still haven’t heard back from them), and go to great lengths to figure out a work-around. I eventually succeeded in uninstalling the application but I’m sure less technical people would have given up all together.
To compound my frustration, after installing a Skype (35% owned by EBay) update earlier today, I once again found the Browser Highlighter installed on my PC, without my permission.
While I can appreciate EBay investing in a tool designed to drive traffic to their website, installing an application on a user’s browser without permission and making that tool intentionally difficult to remove only detracts from my opinion of Skype and EBay’s brand. How on earth is considered a good business practice?
Or increase the number of times clients return and buy again.
Though these objectives have been around for decades, Mr. Abraham’s simple list provides a comprehensive and overarching strategy that is universally applicable to every business in the world. Because all businesses share a common goal – to generate revenue – these bullet points prioritize where organizations should focus their time, energy, and resources.
The essence of business is applying strategies and tactics that pursue new customers, entice customers to spend more, or entice customers to spend more often. In the corporate world, little else matters!
Here are some examples of how companies approach each of these objectives.
Increase the Number of Clients Businesses can increase revenues by finding new customers or clients, which is accomplished using the following techniques:
Developing new products or services (e.g. Apple introducing the iPod)
Expanding into new markets: (e.g. Walmart entering China)
Establishing new distribution channels (e.g. New Belgium Brewing Company signing with an East Coast distributor)
Increase the Average Size of the Sale Per Client Heard in fast food chains across the United States in one version or another, the phrase “would you like fries with that” epitomizes point-of-purchase up-selling. The goal is simple: entice customers – at the time of purchase – to spend more than they may have planned. This tactic can be applied in the following ways:
Point of sale displays (e.g. candy racks in grocery store checkout aisles)
Employee interaction (e.g. a car dealership offering an extended warranty)
Cross or up-selling (e.g. an online clothing retailer suggesting a pair of shoes to match a shirt)
Recommendations (e.g. Amazon.com listing related books based on a customer’s purchase)
Increase the Number of Times Clients Return and Buy Again This method is designed to entice existing customers to spend repeatedly over time. The phrase “don’t forget to change your oil every 3,000 miles,” as adopted by automobile service centers, captures the need of businesses to leverage their existing customer bases.
For most companies, existing customers are by far the most profitable segment because they are familiar with a company’s brand and because ongoing communication techniques are relatively inexpensive. Conversely, acquiring new customers can be costly. For example, in 2008, internet phone company Vonage reportedly spent $309.00 per customer acquired.
Businesses can entice existing customers to spend more often by:
Expanding product catalog (e.g. Apple introducing iPod or McDonald’s selling salads)
Communicating frequently (e.g. Victoria Secret frequently mailing catalogs)
Offering upgrades (e.g. upgrade from Windows Vista to Windows 7)
Creating promotional offers (e.g. Bed, Bath & Beyond offing a 20% off coupon)
Maintaining loyalty programs (e.g. airline miles)
Please note: most businesses want to increase profits, not just revenues. Though this post focuses on revenues, companies can increase profits by using these methods and by reducing costs.
This post was originally published on www.InspiredConceptsInc.com.
Earlier this year, Andy Dunn, co-founder of Bonobos, tweeted that “Leadership is serving those below you, not them serving you. You work for your direct reports, not the other way around. If you serve the people that work for you, everything above you will take care of itself. Don’t look up, look down.” (In case anyone is counting characters, the quote took place over two tweets.)
I found Andy’s quote particularly relevant because, while at my former employer, I experienced two very different types of leadership. Where one leader was nurturing and receptive, the other was distant and aloof.
As one might expect, the nurturing and receptive leader was masterful not only in guiding the groups that reported to him but also in bringing new job functions up to speed (the company was a startup). He worked closely with new hires – until they were self-sufficient – to make sure they understood the business objectives and their role within the company. And when inevitable problems arose, he was quick to clarify strategies and to answer questions. His leadership style was typical of what most have come to expect from history’s highly-regarded coaches, professors, military personnel and politicians.
The other leader – who I reported to – rarely served anyone beneath him. He often canceled meetings, was not timely in answering questions and hardly ever communicated important details that were necessary for making informative decisions. For everyone involved, this led to frequent miscommunication, differences of opinion, increased challenges and inevitable frustrations.
If you happen to lead people, keep in mind that your subordinates, regardless of level, need guidance and perspective. It’s your job as a leader to serve them!
This post was originally published on www.InspiredConceptsInc.com.
According to ifoAppleStore, the much-rumored Apple Store in Lincoln Park – currently under construction – will be a more ambitious project than originally intended. As part of an agreement with the Chicago Transit Authority, Apple will spend $4 MM to refurbish the nearby Red Line stop.
This looks like a win-win situation for Apple. Not only will the company receive plenty of goodwill but also 10 years of free rent.
The Strategies & Tactics Weblog provides an outlet for me to share my thoughts and ideas on marketing, entrepreneurship, and business strategies. Occasionally, I may write about politics too.
