Last Saturday, on December 12th 2009, Internet Marketing Inc.’s New York City office launched its first holiday party ever.  With little under a year of existence, IMI NY has won a strong book of business and surpassed many milestones these last few months.  Partner and President, Todd Soiefer, invited the team to a holiday party to celebrate this success and ring in the new year “Internet Marketing” style.

The party was a huge success, with the attendance of several staff members- interns, developers and all.  A surprising guest appearance was made by the CEO of Internet Marketing Inc., Brent Gleeson, who is based in the San Diego office.  His arrival not only added an element of surprise, but also much entertainment as well.

The party involved a champagne toast and then a sushi dinner at New Ashiya in downtown Manhattan.  It was hard to even hear normal conversation over the continuous ruckus of laughter that practically usurped the night.  I am honestly surprised anyone had time to eat.

So you may ask: what’s my point?  It’s the small things that count.  Having a holiday party for your employees really inspires good cheer and let’s them know how much they truly are appreciated when it really counts.  If you don’t already do it, I suggest you make it your next New Years resolution- not only will good memories be shared but the team bonding is priceless.

I recently read and article with a somewhat missleading title, but the content was interesting, and a bit scary.  The article is from the LA Times and was called “Congress is Cracking Down on Internet Marketing Companies“.  Now, when I think of Internet Marketing companies I think of firms offering actual marketing services.  In this case the article is really referring to Internet advertising and sales technology companies.  Either way, the topic is about these technologies being used by major retailers which use people’s credit card info and share it with other services.  Next thing you know you are getting reoccurring bills from some site you have never heard of.

Here is an example.  You are ordering tickets online and during your check out process an ad pops up urging you to “click” in order to get $20 off your next purchase.  That click then automatically sends your credit card info to another company you have never heard of and signs you up for a “membership”.  You then get billed automatically for months before you realize it and cancel.  Most people are too busy to notice or forget whether they signed up for something and never really pursure it beyond cancelling. 

As I said before the article refers to these firms as online marketing companies.  The companies they are talking about are the ones who are creating and distributing these technologies and then partnering with major retailers.  Some of these companies include (according to the article)  Affinion, Vertrue, and Webloyalty.  The scary thing is that these shady companies have been able to partner with major retailers like Hotwire.com and Continental Airlines.

The article stated that stories like these have encouraged members of Congress to seek legislation designed to crack down on these types of aggressive sales tactics (and the technology that makes them a reality).  This type of thing is no doubt something no consumer should have to worry about!

Has this ever happened to you?  Please share!

Marketing is a very important and specialized element to growing a business and differentiating yourself from the competition.  I didn’t used to think so.  My background is originally in finance.  I used to think marketing was just some common sense piece of the puzzle that any intern could handle.  Boy was I wrong.  Much of the “wisdom” I now have comes from making mistakes and following the wrong instincts. 

Being in the Internet Marketing business, I have also spent time analyzing other companies and reviewing their internal strategies from the outside looking in.  This exercise has lead me to gain a more keen understanding of how some of the seemingly “best” mid to large size companies out there completely miss the mark when it comes to marketing.  Here are some basic things that business owners should avoid:

The Good Old Marketing Fallback:  Maybe you used a specific marketing strategy 5 to 10 years ago and it worked very well to drive leads and sales.  Maybe you haven’t even really used “marketing” in years because times have been great and all your business comes to you.  But now times are tough and you realize you need to reach out to your customers more.  Their behavior seems different.  They are price comparing and actually seeking opportunties outside of your brand.  Looks like its time to turn on the marketing again, right? 

In this situation, business owners often revert back to the same strategy they used years ago.  Just because direct mail and billboards did wonders 10 years ago does not mean that you should use the same marketing plan.  Design a plan that will define and address immediate business goals.  If you do not have the in-house expertise to put this together, seek advice from colleagues that have a more current marketing plan to see whats working.  Doing a competitive analysis will also give you great insight into what others are doing to drive new business.  Don’t however make the mistake of assuming your competition is getting it right either.

Branding and Creating “Awareness”:  I have seen some business owners who seem satisfied with their marketing plan because THEY see their ads and assume everyone else is seeing them too.  Not only do they assume that others take notice but they assume that others are responsive to the message.  This can be referred to as “ego” driven marketing.  A business owner should never assume their big billboard ads and fancy print ads are channeling new business.  This was easier to get away with in a good economy.  Owners did not scrutinize marketing dollars as much and therefore assumed their expensive print ads had something to do with their sales.  Maybe they did, but maybe not…how would they know.  How can you truly measure an ad campaign like that? 

As business owners wise up and move away from startegies that are not measurable, they seek more cost effective methods that can be supported by true analytics.  Enter Internet marketing and online media.  Marketing is much more that creative brand awareness.  Your loyal customers are most likely aware of your competition, but something called them to choose you and something is keeping them loyal to your brand.  Do you know what that is?  You are doing something right, just make sure you know what it is and how to translate that into a marketing plan.

Push Advertising:  Push advertising and messaging is alright as long as it is combined with true inbound marketing.  Inbound marketing, or better yet, inbound Internet marketing, is about getting your prospective customers to come to you.  Consumers are constantly expsoed to media of all kinds and therefore we must stay on top of the methods that are curently working to engage people and build trust. 

Consumer behavior has changed in large part to the economic conditions.  People want to trust the brands they surround themsleves with.  They want transparency and honesty.  They don’t want to just hear your pitch anymore.  They will seek out the truth by asking their peers, going to their online social networks, or looking at rating and review sites.  Great online inbound marketing starts with SEO, blogging and social media.  These elements build online visibility and better yet trust among your audience.

Hiring a Consultant too Soon:  It is common for large brands to have a full inhouce marketing team.  But is the team really on the same page and using the same strategy?  Big companies will sometimes have an Internet marketing team, a PR team, and content team, and a general marketing team.  It is quite common for the PR team to have no idea what the Internet marketing team is doing.  When things are disjointed like this, it is best to put an internal communication plan together before bringing in an outside consultant.  This will ensure that there is a team working towards the same goal when new marketing plans are put in place. 

Planning without Analyzing:  There is no point in putting a plan together that will most likely cost you a lot of money if you haven’t really analyzed the problems.  Business owners need to define the true goals behind what they are trying to accomplish because it will affect how a great Internet marketing strategy is built.  For example, search engine optimization isn’t just about going after keywords you think are relevant to your industry or terms you see your competition showing up for.  It takes many factors into account that include basic marketing, customer behavior, competition, business goals, financial goals, conversions, etc.  Spend the appropriate time analyzing the situation before design the marketing plan.  It will save you money in the long run.

Our President (Brandon) and I (Brent, CEO) spent three hours last night as guest lecturers for the University of San Diego’s undergraduate and graduate Entrepreneurship classes.  It was a great experience and we look forward to going back soon.  The general MBA curriculum often lacks knowledge transfer on some of the hard core truths of owning a business, having a start-up, learning from mistakes, and understanding what it really takes to succeed.  The word “sacrifice” comes to mind!

Whether you are in the Internet marketing business, biotech field, or launchig a new brand of energy drinks you must understand your goals and what it will actually take to achieve them.  It doesn’t matter if you are graduating from Wharton MBA or launching a business while you are an undergrad.  There are certain things you will have to give up in order to gain long term success. 

I learned these hard truths during Navy SEAL training here in San Diego.  I spent five years in the Navy SEAL teams and completed multiple combat tours in Iraq, Afgh, and Northeast Africa.  SEAL training is much like entering the world of entrepreneurship.  Many people want to give it a shot, and very few are left standing when its all said and done.  In my BUD/s class (Basic Underwater Demolition/SEALS – the initial 6 months of hell) we started with 200 people and 20 of us graduated and made it to a Team.  You have to be physically and mentally strong and really want to be there…otherwise the pain and stress will take over.

I truly believe that my experiences in combat have added value to my ability to build a company and lead a team to success.  When starting any kind of business you have to believe you are “phyiscally” and mentally stronger than the competition, be dynamic and willing to adapt, and embrace the stress and long hours.

Here is a short start-up check list:

• Step One – Self analysis:  Talk to other entrepreneurs and gain a sound understanding of the sacrifices they made to get their businesses off the ground.  Ask yourself “Do I really want this and am I passionate about this endevour?”  If the answer is not a definite YES, then you my have some soul searching to do.  If the answer is YES then move on to step 2.
• Step 2 – Discovery:  Before you even start business planning, learn as much as you can about the industry you are entering.  Read blogs, chat in forums, read white papers, review the competition and their websites.  Get your hands on as much information as possible so you can define how you are as good, better, and different than the competition. 
• Step 3 – Business Modeling:  You can spend months on a business plan but in my opinion the core factors are:  market research, competitive analysis, define product and service, revenue/profit goals, fundraising (how much money you need and what you need it for), etc.  At some point you are going to have to execute so don’t get too hung up on the minutia…the principal element that differentiates successful entrepreneurs from “wannabes” is execution.
• Step 4 – Define your team:  Who are you going to battle with and do they have what it takes to succeed?  Before you place any legal documents, incorporate, finalize an LLC, etc. you need to know who is going to be in this for the long haul (and who is just riding the wave to see if it works out).  The last thing you want to happen is to have people that are not fully committed owning  a large percentage of your company.  It can get messy later on.
• Step 5 – Long hours: Be prepared to give up free time and work 90 hours a week 7 days a week.  You will be glad you did.
• Step 6 – Bootstrapping and fundraising money: It is very tough to get money and the following comments are just my opinion based on experience.  If it is appropriate for your company and growth plans, stay away from VCs…at least initially.  That is a long road and can end in disappointment while sucking away time and resources you could be putting towards launching your business.  Additionally, if you like the idea of being the boss and owning your own business (i.e. calling the shots), VCs are not the way to go.  Bootstrapping is the most realistic method at first.  Once you have some headway and a solid business plan, engage friends and family. I recommend offering a debt scenario where they lend you X amount and in 12 months you give them X plus the determined interest.  If you are successful in the process, then you can launch and build revenue.  Once you have some revenue it will be easier to present your company to angel investors.  Again, you need to update your business plan so that it is current and reflects how much money you need, the use of funds, the burn rate, profitability, exit strategy, and the offer itself (i.e. how are you currently valuing your company and how much equity are you giving them for their hard earned money).
• Step 7 – Execution:  Once you raise angel capital it is time to really execute.  Now its not just your friends and family expecting to at least get their loan back, but you have investors seeking a return.  Every situation is different and sometimes the investors are passive, and other times they want to have a lot of involvement.  Either way, this does not change the fact that they expect a return at some point in time depending on your exit strategy.
• Step 8 – Leadership:  Entrepreneurs earning initial success quickly find their role changing from hard working “start-up” guy to leader/manager/inspiration driver.  As your company grows the head count will grow.  Your head count will be made up of real people with different goals, personalities, aspirations, and needs.  Having a great management team in place will help make this part of the grow process easier.  If it is just you at the beginning I suggest reading books about leadership and learn as much as you can from peers, mentors, and other professionals. 

This is obviously a very short list and there are MANY factors involved in starting a business.  Hope this is helpful. 

Recent times have made things tough on everyone.  The economy has forced many companies to downsize or even close their doors creating a flood of talent in the job market.  For companies that are growing and hiring, this has created great opportunities.  Some recently “unemployed” professionals however have taken this opportunity to go out on their own and start their new businesses.  The recession has actually created a massive influx of new start-ups in all kinds of industries!

Even when times are good and funding is readily available, it is wise to tighten your belt and stay as lean and mean as possible.  Here are some tips to ensure that you don’t burn through your available capital and achieve profitability sooner.

1. Business Plan:  Have one.  Even if you are not striking out on the fundraising path, this is a good excercise for understanding your goals, defining budgets, creating cash flow projects, and know what it will take to get to an eventual exit strategy.  This process will also force you to know your competition and the costs that will be involved in gaining market share.  Set goals and milestones.  I do not recommend spending months on this however.  There will be a time when more planning won’t get you to the next level, execution will. 
2. Your website:  Naturally, the kind of website you need depends of your business.  However, the availability of open source technology and advanced templates have made website development more cost effective.  You still must make the investment and be willing to spend at least a few thousand dollars.  You will be judged by the appearance of your website, that is certain.  So take ownership of the process and find a firm willing to understand your business goals.  Make sure you communicate the exact functionalities you require upfront to avoid additional costs down the road.  Also, make sure the firm knows SEO and will build a website that is search engine friendly and adheres to basic SEO site architecture guidelines.  Otherwise, you may incur more costs later when investing in SEO. 
3. Resources:  If you are used to working for a large corporation where you did not have to worry about expenses, then you need to put your start-up cap on.  Try to avoid too much credit card spending for unnecessary start-up expences.  You probably don’t need office space right out of the gate.  Keep overhead as low as possible – it may be uncomfortable for a while but that’s what it takes to earn your stripes in the start-up world.
4. Hiring:  Don’t over hire.  Only hire the people you really need and be willing to wear most of the hats at the beginning.  Most business owners start out as the CEO, accountant, marketing director, receptionist, and sales director!  You will be working long hours so don’t think you need to outsource everything right away.  This is also the time where you learn all of these functions which will make you a better leader later on.  If you land a big account early on, be careful about hiring people just to service one client.  This is tough because you must have the ability to provide a great service or product, but can’t over hire just to support them.  Consider hiring additonal help on an hourly or part time basis.  Freelance workers can be a good resource too.  Also, consider hiring free of hourly rate interns from local colleges.  Interns can be an amazing resource if you hire the right ones.  These people can become great potential hires after they graduate!
5. Marketing:  Internet marketing is probably the most realistc and cost effective way to go other than guerilla marketing and basic grass routes marketing.  You may not be able to afford search engine optimization right away, so consider social media marketing to drive traffic and awareness to your site.  This is also a great way to start building your brand and communicating with potential customers.  Set up Facebook, Twitter, and possibly You Tube accounts and get after it!

If you are in fact heading out on the fundraising path, be ready to meet with at least 30 VC’s or angels.  As we all know, funding is tough to come by and even angel investors are trying to stay more liquid.  Don’t just go for the investment partner willing to get involved.  You will need a partner with experience in your field and one that shares similar passions.  You will be spending a lot of time with them so make sure you actually like them!  The interview should go both ways.

It seems so easy to “stick out” in the media today. Online it is 100% different going online to use or buy a service or product. You cannot just walk into a store and feel what you are purchasing. There is no sales person online – your website is your sales person. So you need to convey your business to the website visitors. You need them to feel comfortable and trusting while surfing your website. The first part is getting people to your website through internet marketing. Next keep them on your website – make them use your service.

I visited 3 different Salon websites. Beside the 3 very different design types there are a couple of things I noticed right away. They all said the same thing:  they all tell you they are the best in town with the logo of an award they won, they tell you the services they offer, and what products they use.
Well this is all wonderful information but I got the same information from all three of their websites. So none of them really enticed me to choose their salon and give them a call. You need to make your business “Stand Out” and capture the users attention! What makes your company different than all of the other ones on the market? On all these 3 websites I looked at they said the same thing, what are the differentiators? Why would I pick A over B? Especially in today’s market you need to make sure you are setting your business apart for others. Consumers are doing more and more research before making any decisions. This means you need to tell them about your business and what sets you apart from the rest.

There are a few simple ways to do so:

Statistics:  all companies keep some type of statistics. This is very useful to spread throughout your website. Make sure to do this a little throughout your websites be careful of cramming to much information in.

Stories: If your company has a great story behind the foundation or name tell the consumer. If you do hair for the stars tell them.  If you are Jessica Biel’s hairdresser tell them.

Samples: This is a great piece to have on any website. Add testimonials – before and after pictures – client pictures etc. this is great to let the consumer k now what your style is. It amazes me that there are so many salons that don’t even have before and after pictures on their website. Or pictures of clients they have worked with that came in what a sob story and ended up looking better than ever when they walked out!

With the economy today you need to make your business stand out in a crowd. So use these simple tips and make sure you are adding new information to the website to attract people and have them coming back.

This is a pretty telling chart showing where the social media herd is going over the past year.

It will be interesting if Google pulls the trigger to buy Twitter in the coming months and if either company can find a way to truly monetize it.

Is your business on Twitter and how are you leveraging it to help you and your customers?

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Who knows where that quote is from?  That’s right…Andy Dufresne from “Shawshank Redemption” said those wise words before deciding once and for all to take his future into his own hands and refuse to lay down and die.  I know we have all heard plenty about the economy, but it is important for everyone to now focus on the future.  2009 will be the year that separates the real entrepreneurs from the fake ones.  Many of the most successful people in the world have been through more than one recession, failure, etc.  Failure is the precursor to success!

Bascially, what I am saying is that it is gut check time for many companies.  Most newer companies have never lived through a recession so there will be new and scary realities to face.  The businesses that are just “playing” the fast-growing start up game will not make it.  The ones that are ready to buckle down and make tough decisions have a great chance at earning some serious battle scars and coming out of this on the other end tougher, wiser, and with the foundation for future greatness. 

Some of these realities are:

Its time to get lean and mean:  Keep in mind this does not mean laying people off.  Your best investment right now is in your team…without them you can’t perform and you can’t service your clients.  Try getting creative with cutting your expenses.  You will be amazed at how many expenses you have that are not necessary.  Once you cut them and nothing bad happens, you will be better off!

Look at the numbers:  Understand your books and know how much money you are burning and how long you have to “live”.  Understanding this will help you discover how to lengthen your lifespan and in the meantime creatively improve revenue and profit.

Shift budgets so they focus on revenue generating assets:  Review every expense you have and cut things that are not measurable and that are not directly helping you sustain.  I am trying to be non-biased but this can mean shifting marketing dollars to cost effective channels like Internet marketing.  Not all aspects of Internet marketing are necessarily appropriate for each business but there are usually two or three channels that can be combined to drive revenue.

The bottom line is that it is time to make changes and thing strategically about what this year will mean for your business.  You might find that it is a great time to gain incredible market share.  Online marketing can be a great way to cost effectively build your brand and stay within your tight budgets.  The revenue you generate can be rolled into more growth.  If you act now and think about the next 10 to 12 months, you might be pleasantly surprised when 2010 roles around and you have actually grown…or at least sustained.  Flat is the new up!  So embrace it if you must.

During our internet marketing training session this morning, Mel Gordon showed us a video from ted.com of a speech given by Barry Schwartz. In the midst of this economy, Mel stressed that marketing agencies need to reach out to clients in a very real, tangible, and personal way: companies need to know that they can trust their marketers, and that the marketing agencies know exactly what the company needs in order to thrive in these economic circumstances. This is not the time for marketers to hide behind email.

Sometimes all it takes to add this personal, reassuring touch is a few minutes of extra research for your client: looking up articles relevant to their causes and goals, showing them that they’re on your mind and you are considering them thoughout the day.

Barry Schwartz’s speech emphasized the role of kindness, care, and empathy in building progress and enriching one’s occupation. A wise person knows:

- When and how to make “the exception to every rule”
- When and how to improvise
- How to use these moral skills in pursuit of the right aims
- That wise people are made, not born

Take some time to consider ways in which you can exercise these gems of wisdom in your company and in how you appeal to and communicate with your customers. Our world can certainly use a little more wisdom. =)