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Four Online Marketing Mistakes to Avoid

Feb 2nd, 2010 by admin

Online marketing is the process of driving Web traffic to a Web site. It includes paid-for and organic means, with one goal: creating and nurturing Web traffic which is likely to convert by taking a desired action such as buying/clicking on an ad. Getting your online marketing right takes time, knowledge and trial and error so when possible avoid common mistakes. Here are several typical online marketing mistakes to avoid:

Not measuring - Each online marketing channel from paid ads to social media marketing has to be measured in terms of return on investment. It’s crucial to get a level of transparency so you know when to invest more in a particular channel, tweak or quit another channel altogether. So to avoid the first mistake look to deploy the free Google Analytics software across your Web site and for those selling online, deploy the e-commerce module as well.
Little or no marketing experiments - There are many online marketing channels which could drive qualified Web traffic your way. To determine which will work for your brand and which will not, you’ll simply have to take a calculated risk. Reduce your financial risk by experimenting with new channels which are capped and, of course, measured.
Limited multi-channel approach - Through the Web you can drive traffic using various means from organic search results to classified ads and, of course, social media. Using a combination of channels is seen as a type of multi-channel approach. The key to successfully running a multi-channel approach is to use all the channels at your disposal and not to limit yourself to one or two channels. Here are examples: a) paid ads; b) organic search results; c) affiliate marketing; d) 3rd party platforms such as eBay, Amazon.com and Etsy; e) Google Local/Maps; f) Google Product such as Google Base; g) social media; etc.
Paying too much for success - Once you have the means to measure success/failure it’s very easy to determine how much you are paying for each successful goal, be it a sale, lead generation or subscription. Also known as Cost-Per-Action or CPA this pricing model can be used to evaluate the profitability of a channel. For example (very basic), if you are running paid ads and your conversion rate is 10% it means 1 out of 10 visitors will convert. Now calculate how much 10 clicks have cost you and you’ve got your CPA. If the CPA is higher than your profit margin, you’re losing money.

I hope you found my tips useful. Good luck with your online marketing.

- - -
Guest article by Michelle Strassburg Co-Founder at Wood and Beyond, sellers of wood flooring and oak worktops. Michelle has over 10 years experience managing online marketing and is an active blogger.

Tags: CPA, Google Base, Michelle Strassburg, multi-channel, online marketing, social media, Wood and Beyond

Posted in Business Extras | 3 Comments »

Take Notice: Q&A Sites have the Power to Build Your Business

Jan 15th, 2010 by admin

An often overlooked channel for marketing your business and building your online (and offline) reputation are question and answer (Q&A) Web sites such as Answers.com. If you are not familiar with these properties, Q&A Web sites tap the collective knowledge of participants from every corner of the glove to answer everything from “If your home owners insurance is part of your mortgage payment and you stop paying your mortgage what happens to your insurance coverage?” to “How do you make the delayed audio of a video match the visual of the video?” Inquiring minds are learning they can get instant information from answer engines rather than wading through oceans of search results. In fact, according to a great post by Gil Reich on YoumozBlog:

In a recent Business.com study, 49% of companies that use social media said they ask questions on Q&A sites. Only 29% said they use Twitter to find business-related information. The 49% doesn’t even include the many who get info from Q&A sites by Googling or Binging.

But what’s in it for me you ask? Not only can these sites help build your credibility and establish you as a topic expert, they can also help existing and potential customers obtain accurate information about your products and services, generate leads and provide back links in some instances.

Keep in mind that when participating on these sites, it is important to follow any posted Terms of Use and whatever site and etiquette guidelines they have established so that you are not penalized for spamming or inappropriate activity. Also, be sure to fill out your profile or bio page and provide quality answers.

As a final note, the two questions referenced above were answered by experts on Answers.com. Thanks to Insurance Plus and GreenlightAV for sharing their knowledge with others and already recognizing the potential opportunity in participating on Q&A Web sites. Well done!

Tags: Answers.com, back links, Business.com, Gil Reich, Q&A sites, SEO, SEOMoz, Twitter, YoumozBlog

Posted in What's Hot in Business | 5 Comments »

The Facebook IPO: Just go public already!

Jan 11th, 2010 by admin

No, I’m not talking about the latest privacy fiasco on Facebook. It looks like 2010 will finally be the year of Facebook’s big IPO. I’m really going out on a limb here, right? This has the makings of being the most hyped IPO since Google in 2004.

It’s hard to believe that one guy in his dorm room was able to create a social network that has now topped Google in traffic both on Christmas and New Years Day for the first time ever. It reminds me of my old friend Chris Whitten who essentially did the same thing with FAQ Farm which ultimately became WikiAnswers which is now part of Answers.com. It just goes to show you that entrepreneurs can never dream too big. If you have the right idea and the drive to make it a success anything is possible.

These days founder and CEO Mark Zuckerberg is essentially untouchable due to the company’s new dual-class share structure. It will be interesting to see how he steers his baby now that he will be under the microscope of Wall Street and his shareholders. In any event, it will be fun to watch and it looks like Facebook IPO Central will be a good place to track every new development about the forthcoming initial public offering of Facebook stock.

Tags: Answers.com, Chris Whitten, Facebook, Facebook IPO, FAQ Farm, Google, Mark Zuckerberg, WikiAnswers

Posted in Business Extras, What's Hot in Business | No Comments »

Doomsday Equals No Gmail?

Sep 2nd, 2009 by admin

I had to laugh yesterday when Google’s infamous Gmail went down for a few hours – literally it was just a blip in time, but you’d have thought the world was coming to an end. Immediately, I sent a Skype to the person who convinced me to sign up with Gmail. He said his was down, too. So I knew it wasn’t just me. I then received Skypes from several individuals asking me if my Gmail was down. I, too, filled them in that it wasn’t just them. They were not being singled out by the gremlins that infiltrate our computers through some secret portal in the Internet. So I logged onto Facebook to seek refuge. Nada. It was status update, after comment, after post of “Is Gmail down?” or “Gmail isn’t working???” No. Gmail is not in functioning mode. Please hang up and try your log on again later.

In the course of a half hour, conversations were erupting all over the netisphere. People were panicking, asking, “Is your Gmail working?” Mashable, Techcrunch and just about every other tech blogging outlet known to mankind were letting their loyal readerships know about the catastrophe that was the BIG G REALLY BEING DOWN. It was not a figment of our imagination. It was not our individual computers ceasing to live… Gmail was not functioning, we were receiving the most hideous 502 Error Page ever and people were in a frenzy. In the online world, this event was the equivalent to Michael Jackson passing away or the apocalypse coming to town. I have never seen such a scurry of activity, such an outpouring of frustration and concern for what was the periodic demise of all things Google.

So I ask you… Are we a world just a tad too dependent on the Big G?

That’s all for now. I need to go check my email.

Tags: Facebook, Gmail, Gmail down, Google, Google down, Mashable, Michael Jackson, Techcrunch

Posted in BoB Awards, Competitive Forces, Market Niche, What's Hot in Business | 1 Comment »

Risky Business

Sep 1st, 2009 by admin

This morning I discovered an article on the Yahoo! Small Business Answers Center that talked about the seven most overrated businesses – and I have to agree with their assessment. When times are tough or simply ‘not fun anymore’, entrepreneurs often leave the security of full-time employment to launch businesses that are either not appropriate for market conditions or just really, really risky. The Yahoo!‘ article cites the following as the most hyped:

Restaurants
Direct Sales
Online Retail
High-End Retail
Independent Consulting
Franchise Ownership
Traffic-Driven Web Sites

Of those noted, I want to specifically point out two: restaurants and traffic-driven Web sites. Restaurants are one of the riskiest business propositions. According to a study conducted by H.G. Parsa, an associate professor in Ohio State University’s Hospitality Management program, one in four restaurants close or change ownership within their first year of business. Dun & Bradstreet has reported that restaurants only have a 20% chance of surviving two years. Although the stats vary depending on who is conducting the research, one thing remains constant: restaurants are risky business propositions! Not only are they capital and labor intensive, there are a lot of them – which means that competing for the discretionary dollar is tough. Not understanding your market, thinking that you know how to cook when in reality it sucks, low profit margins and poor management skills are common reasons why restaurants fail.

The second risky business venture is the traffic-driven Web site. Facebook, Twitter and MySpace get some pretty impressive traffic. Even the non-profit Wikipedia is a heavily visited property. But being traffic-driven comes at both a price and a risk. To get traffic that amounts to any type of significant revenue generation you’re going to have to invest a lot of dollars into search engine optimization. Plus there is established brand loyalty – so the switching costs are high. Think the guy next door will simply leave Facebook to flock to your new social network? Think again. And finally there is reliance on a third-party – specifically Google and other major search engines. People have become dependent on using search engines – often one in particular – to process information in a certain way. Should these search engines up and decide one day to change the way they index pages or modify how they rank listings, you could lose substantial traffic and as a result, ad-supported revenue. Here is a great article from Sitepoint which talks about this topic and ways to prevent falling victim.

Tags: Google, MySpace, risky business, search engine, search engine optimization, Wikipedia

Posted in Business Basics, What's Hot in Business | 2 Comments »

Alternative Ways to Fund Your Small Business

Aug 30th, 2009 by admin

Join the forum discussion on this post - (1) Posts

With the pool of unsecured financing drying up and many banks simply closing their doors, looking for money to fund your small business can be intimidating. If you’ve tried all the conventional routes to no avail, it’s once again time to get creative. Here are a few of the newer, less mainstream ways to get the money you’re looking for:

Peer-to-peer lending (also known as P2P lending, person-to-person lending and social lending): According to Wikipedia, peer-to-peer lending is “the name given to a certain breed of financial transaction which occurs directly between individuals (”peers”) without the participation of a traditional financial institution.” Peer-to-peer lending has been met by some bumps in the road – namely the big one called the SEC. Registration is now required, but that only goes to lend credibility to those participating in the lending process. Because of the stricter regulations, some P2P lending sites have closed. One to definitely check out is Lending Club. According to Business Week, “Since it started as a Facebook application in May 2007, Lending Club has made more than $33 million in loans, and has turned down loan requests equaling nearly nine times that amount.” That’s a pretty good track record built on sound lending practices. Others include 40billion.com, Pertuity Direct and Prosper.com (not currently accepting new lender or borrowers registrations while it completes the SEC approval process).

Crowdfunding (also known as crowdfinancing): I love the power and wisdom of the crowds. And I love it even more when it means pooling resources to help fellow entrepreneurs. Derived from the term crowdsourcing (from Jeff Howe’s blog appropriately entitled Crowdsourcing: “Crowdsourcing is the act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined, generally large group of people in the form of an open call.”), I first heard about this concept last year when speaking with a fellow community guru. Wikipedia defines crowdfunding as “an approach to raising the capital required for a new project or enterprise by appealing to large numbers of ordinary people for small donations.” There is usually a minimum required to ‘donate’ (invest) in a product or service, and in turn you bear some of the risks and potential rewards – as do all other ‘donors’ (investors in a sense).

Crowdfunding sites worth checking out include KickStarter.com, Spot.us, A and Fundable. Here are a few other great resources on this alternative means of financing: Crowdfunding FYI and Crowd-Funding.

I don’t believe the SEC has stepped in on crowdfunding – yet. But there is a need for it to be regulated, to prevent scams and protect those involved in the programs. So my best advice is to be vigilant, cautious and do your homework.

Tags: crowdsourcing, Fundable, KickStarter, Lending Club, money for small business, money for starting a business, P2P lending, peer to peer lending, small business funding, Spot.us

Posted in Business Extras | No Comments »

Twitter Quid Pro Quo? Screw That. Just Say NO!

Jun 4th, 2009 by admin

There has been a lot of buzz recently about use and misuse of Twitter and its so-called demise in the making. Quite frankly, I’m sick of the offenders; you know, those who follow 978,456 people for the sole purpose of trying to sell them on making more money online or getting rich overnight. Or those who proudly proclaim that they have found a way to ‘game’ the system. So I’m going to go against all the Kings and Queens of Twitter and all those so-called marketing experts out there who say it is imperative to ‘FOLLOW EVERYONE WHO FOLLOWS YOU ON TWITTER’. My advice… Just say NO!

Here are some things to ask yourself before choosing to follow someone on Twitter:

Do you know this person, company or group?
How do you know them?
Are they reputable?
Do they abuse Twitter (or other social networking-type sites)?
What is their ratio of following to followers?
Are their tweets and/or profile/bio legit, offensive, etc.?
Will following them tarnish your reputation or cause someone to cringe when they see this person on the list of people you are following?
Are their tweets insightful, offer good ideas, etc.?

At the end of the day, it sure feels better to be a leader – not a follower. What that means is never, ever feel obligated to follow everyone who follows you. Always think about your reputation and credibility. There are some real losers on Twitter. You follow them and they might just bring you down, too. And there is a higher purpose – Twitter itself! Let’s not foster a reputation of it being a low-quality, spam ridden site that has little value. I LOVE Twitter, and very much want to see it succeed. So how do we do our part to help secure its future? One tiny step…

Twitter Quid Pro Quo? Screw That. Just Say NO!

Tags: following people on Twitter, should you follow everyone who follows you on Twitter, Twitter, Twitter abuse

Posted in Business Extras, What's Hot in Business | 9 Comments »

Measuring the ROI from Social Media/PR Efforts

Jun 2nd, 2009 by admin

I’m a BIG believer in social media and outreach via social networking sites – which is why I’m constantly taking about Twitter, LinkedIn, Digg and Facebook and the value they hold for entrepreneurs. But something I haven’t covered is how to know whether or not your efforts are truly beneficial – measuring the ROI. Without knowing your exact offering or what you have going on, it is difficult to ascertain what tools are most suitable for measuring the ROI surrounding any social media/PR efforts or targeted campaigns you might be engaged in or considering. Regardless, whatever investment is made should accomplish the following and, with social media, should be highly targeted:

Exposure/Engagement - Identifying and capturing qualified/targeted prospects
Influence - Moving prospects along the sales continuum from sales to purchase
Action - Once prospects convert to customers, are they staying with you? Are they buying more/different products/services? Are they willing to refer others to you?

Here is one of my favorite graphics from Don Bartholomew (Principal of Acumentics Research - a social media and public relations research and measurement consultancy) that summarizes the above methodology:

Keep in mind there is no single tool available to measure and track social media efforts. Using available applications such as Google Analytics, you can easily track traffic increases related to specific campaigns, customer engagement and interaction, demographics and other related trends and search patterns. Unfortunately, mainstream tools fall a little short at measuring the true impact of social media. So you would want to add-on other measurement tools. One that comes highly recommended for Google Analytics is located here. And there are others (with specific dashboards – not so much add-on): Radian6, Nielsen BuzzMetrics, etc. Most social media sites will also email stats to you – so get proactive and ask for what you need.

Now don’t get confused or try to categorize social media into a class all its own. Social media/PR campaigns are similar to other types of traditional marketing campaigns – when done right. You identify a target market or markets and create an offer to attract them. Via the Web, this can be done using an effective landing page that explains the offer without a lot of “fluff” and providing a simple, clean call-to-action. What is it you want the visitor/potential customer to do? Spell it out quickly or lose them! If you’d like to learn about the differences between social media and traditional marketing, I highly recommend this post from Microgeist.

Prior to launching any campaign, you should measure your Web site traffic using Google Analytics and conversions for the product/service you are selling (if any). This information will be used as a baseline. Throughout your social media/PR campaign, you’ll want to measure and keep a tally of the traffic coming to your Web site, particularly the landing page and the click-through (call-to-action) to check conversion rates and measure against the baseline. It’s also important to keep a running score of any and all direct or indirect sales (purchases via the Internet or inquiries (phone calls) referring to the campaign). When the campaign ends, you will be able to compute ROI by analyzing traffic stats, trends, click-throughs, comments left on blogs, sales increases and so on, and comparing the actual time spent on the campaign to the monetary results.

Again, none of this is new - you’re just using social media (i.e. blogs, microblogging, forums, online commentary, online networking sites, bookmarking, videos, photo sharing, etc.) as inbound (often viral; two-way marketing) marketing tools instead of the traditional outbound marketing (often called one-way marketing) - . The most important aspect is the strategy you put together before starting and understanding that efforts should be extremely targeted.

Tags: Acumentics Research, BuzzMetrics, Digg, Don Bartholomew, exposure engagement influence action, Facebook, how to measure social media, LinkedIn, Nielsen, Radian6, ROI from social media, Twitter

Posted in Business Extras, What's Hot in Business | 6 Comments »

Q&A with Grasshopper

May 22nd, 2009 by admin

Last week I wrote about an intriguing FedEx envelope that arrived on my doorstep. Inside was a colorful package of chocolate covered grasshoppers with a mysterious number attached. After my gag reflex subsided, I was pleased to discover that I was the lucky recipient of one of only 5,000 of these babies. I was named one of the 5,000 most influential people in the US! Now I don’t know how the numbers were determined, but this small town Web-girl feels good (thanks Jonathan, David and Siamak).

If you missed the post or the Internet buzz that followed, this was part of a genius viral marketing campaign brought to life by the guys over at Grasshopper (previously GotVMail). Personally I loved everything about it – particularly the fact that it targeted entrepreneurs and more importantly, delivered a valuable message.

Earlier this week I had the pleasure of speaking with Grasshopper’s Ambassador of Buzz, Jonathan Kay. When asked why the name Grasshopper was chosen and what was behind this campaign, Kay was quick to point out that, “Grasshoppers have an uncanny ability to take large leaps, do really well for their size and are always on the move – just like entrepreneurs. We believe that entrepreneurs can change the world; fueling growth and creating jobs. This campaign was not about promotion – it was about bringing attention to the economic situation.”

A noble purpose, an unforgettable campaign and taking a moment to acknowledge the “little guys”…well done in my book.

Here’s more from Co-Founder and Chief Technology Officer, David Hauser:

Why grasshoppers? What do they say about your brand and the image you are trying to create for your company?

Grasshoppers match our brand exactly, which is rare when you can tie in so directly with a campaign. As we thought about it the more it made sense that entrepreneurs do things differently and eating a grasshopper is different in the US.

What has been the response to this particular campaign? How’s the buzz factor?

Response has been excellent. It has been easier to measure online, like via Twitter and blogs, but we have also heard comments about grasshoppers at cocktail parties and events. Another major success factor of this campaign has been the video which has inspired many and continues to get passed around.

How will entrepreneurs united – Entrepreneurs Can Change the World movement - help turn this economy around?

The first step is reminding current entrepreneurs why they do what they do. The second step is getting others to create the jobs they always wanted and finally getting the attention of government and those who can make massive social change to provide the support entrepreneurs need. If this video can start the movement, get people thinking and talking, then we have made a step in the right direction.

What do you offer entrepreneurs?

An advanced phone number, right now, but that is not who we are. We are here to empower entrepreneurs to succeed in whatever form that takes.

And what one piece of advice do you have to offer first-time entrepreneurs?

Now is the time to go out and execute on your idea, create the dream job you have always wanted and turn this economy around. In times of turbulence there is tremendous opportunity. Seize it now.

Tags: chocolate covered grasshoppers, David Hauser, entrepreneur, Grasshopper, Grasshopper.com, Jonathan Kay, Siamak Taghaddos, Twitter, viral marketing

Posted in What's Hot in Business | 3 Comments »

Featured Start-Up: Bite2Eat.com

May 18th, 2009 by admin

Over the last ten years or so, the world has become obsessively digitized with once manual activities being replaced by Internet-efficient apps, platforms and processes. Even the hands-on intensive restaurant industry is starting to experience the first wave of a Web revolution. One such start-up to recognize the opportunity and take advantage of this new reality is Bite2Eat.com. Recently featured in Globes, the company’s technology efficiently connects restaurants with their customers, translating online orders into phone calls that establishments can respond to the traditional way. Already being dubbed “The Facebook of Restaurants”, Bite2Eat.com is one we should all be keeping a close eye on. Here’s more from the co-founder and CEO, Jay Bailey:

Please tell us about your start-up Bite2Eat.com. What makes it unique? And how does it fit into the marketplace?

Bite2Eat.com is a restaurant portal where restaurants can give us their menus to digitize, at no expense to them, and quickly be able to take delivery and take-out orders from new customers on the Web. There are certainly companies in this space, but we found that most of the focus is on the larger cities and larger restaurants. We’re going after “the long tail” of the medium-size cities and restaurants, many of whom have never considered this approach or were afraid of the expense/complexity. A big piece of our business strategy is to use minimally disruptive techniques — orders are sent by fax or phone — so there’s little to fear from the technology.

We also introduce a social aspect called Buddy Orders, where you can save the usual steps (in an office, dorm or family setting) of having to dig up a menu, pass it around, mark it up, call in the order, etc. With a Buddy Order, the initiator opens an order and uses his Buddy List to send an invitation to his friends. They click on the link to see the menu and join the order. Finally, we developed an automatic voice system that does all the phone ordering without a call center; it read the orders (yes, we’re always tweaking the pronunciations) to the restaurant, while providing a way to talk to the customer directly with the touch of a key.

How do you promote a business such as this? What markets are you targeting?

Bite2Eat.com is targeted at a broad, national population, specifically those hungry folks who are actively online. So naturally, we’re using Google AdWords to connect to people searching Google for, say “Mexican food in Little Rock”. In addition, though, we’ll certainly be looking to market to office managers (who typically compile manual “Buddy Orders”, students who order and eat together in dorms, etc. Eventually, we hope that even products like groceries would be a niche we could handle.

What’s the business model behind Bite2Eat.com - is this something that is advertising driven or is this a subscription service?

We take a commission of every order we send to a restaurant. Unlike some of our competitors, we actually bill the restaurant for this sum at the end of the month; we didn’t think it was right to keep the lion’s share of the order all month and only pay out at the end of the month. It’s a cash-flow problem for them. We’d prefer to have people focus on ordering. So while some restaurants in our lists don’t yet have menus and therefore feature some Google Ads, it’s not a significant part of the business. Eventually we do plan to help restaurants do promotions on the site and via newsletters.

Did you write a business plan? How did you fund the launch of your business? Are you currently seeking investment?

Yes, a one-pager with highlights and a longer one. I’m not a big fan of massive plans for start-ups because the facts on the ground tend to change so quickly and often that it’s almost dishonest to present “The Plan”; from the time of the initial meeting/reading until the funding hits the bank account, it’s sometimes radically different. Naturally, you need the fundamentals, but I’d always include plenty of “options” and “ideas”. We got initial funding from angel investors. Just enough to get the site finalized and bring in the first batch of 750 restaurants. We’re currently ready to do another round with individuals or VC’s so that we can launch the marketing and PR efforts.

What advice can you give others looking to start their own businesses?

Look to outsourcing. The original Bite2Eat.com plan called for an office and about 10 people on staff. By outsourcing big pieces of the business that I manage closely, we actually cut our projected costs down easily by half. It lengthens the runway and gives you the flexibility to add, change or adjust staffers without major upheaval in the ranks. If we had opened up a full-blown office, we’d have gone bankrupt long ago. The virtual office (my partner Marc Fischman, the CTO, works from cafes) eliminates SO much overhead.

Also, as I mentioned above, be ready to make radical changes to the plan. As long as the core is there and you believe in it, just buckle your seat belt and swerve. We changed major parts of the plan, and we’re better for it.

Finally, the adage that it take three times the time estimate and twice the money is, well, quite accurate. If you run out of start-up funds, you’ll find yourself shut down or giving away a large chunk of the company for an investor who knows you’re desperate.

If you had to start all over again, what are some things you would do differently?

Oh, it’s too early to tell. The outsourcing was the right move. I’d probably have tried to raise more, earlier, so that we don’t have to drop what we’re doing now to visit and make the pitch to investors. Also, I’d essentially create an exercise where I make the top five assumptions about the company, and do a devil’s advocate thing where I (and the team) try to punch holes in it, as if I’m another company trying to compete for the same funding and trying to talk the investor out of it. We were a little too optimistic in the beginning about some of the things that simply sounded right before thorough analysis and some experimentation/testing.

What are the long-term plans for Bite2Eat.com? For you personally? Will you start other businesses?

We certainly have a few years to grow this to the size and scope we plan. Once it’s all running fairly smoothly we can have capable staff running it day-to-day, I think I’d like to do another (or, if the revenues are good enough, help fund a few!). I’m really, really enjoying working from home, for all the usual reasons. I have trouble seeing myself returning to a standard office/management position with all the overhead required in time, money, focus, etc.

Tags: Bite2Eat, Bite2Eat.com, Buddy Order, Globes, Google, Google AdWords, Israel startup, Jay Bailey, Marc Fischman, order food online, restaurants

Posted in Start-Up of the Week | No Comments »

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