Last Tuesday saw a great Rockies Venture Club dinner meeting at the Marriott. Three great pieces to the meeting:
Since Hydra doesn’t have a web site I can’t really comment further, other than the guy wants to build 100 cars selling for $250,000 each based on GM parts.
Both presentations (by Dan and Dave) made me sick with just how successful you can be if you are clever and focused and have one good insight.
Dan Murray figured out in mid 2002 that if you can buy an AdWord for x and get an affiliate to pay you 1.5X or better to get someone to click on the AdWord, than if you can repeat that enough you stand to make some serious bling. In 6 years of doing this he claims they have grown to over 8 figures of revenue, and some serious cash flow headaches as they fund the growth with banks that can’t fathom the business model. The big takeaway: Good AdWords are valuable, and affiliate marketing is good for the affiliates.
As for Dave Taylor, his presentation was more thought provoking. It helped that he is also a great speaker - the audience was rapt. Dave talked about how he began to develop content for his site based on questions he received from fans of his books. His content gave rise to substantial discussion between readers, and many thriving communities sprung from these discussions. He mentioned posts with over 600 comments. This in turn gave rise to serious AdSense revenue as his content generated more and more visits.
But Taylor’s most important point was that in the Web 2.0 era, a company no longer controls its brand. Its brand is the sum of all the discussions and items about the company that exist on the web. As an example he gave the downward slide of Dell, who did not pay attention to a rising web-based chorus of discontent from consumer customers. Eventually Dell’s popularity fell, as did their stock, as did their CEO.
For the RVC crowd, his advice was straightforward - if no one is talking about you online then you don’t warrant an investment.
What shapes the online brand is not just ‘conventional’ web tactics like SEO, SEM, but also the social networking applications that serve to segment users and provide numerous opportunities for users to talk back to the companies in whatever form they desire. Some examples mentioned were facebook, linkedin, myspace, twitter, youtube, plaxo, and many others.
I was captivated by the presentation, not least because of the impact on conventional marketing firms. Someone out there today pitching a conventional integrated marketing approach with collateral, direct mail, print, and so on is doing their clients a disservice. The prospects are on the web, and you need to get them talking about you.
It made me think all my marketing efforts were stupid, and that I really didn’t get it.
Here’s hoping that I start to get it in 2008. Baby needs new shoes. I can feel a twitter already.
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