Seth's Blog

A hierarchy of business to business needs

If you're selling a product or service to a business--to a non-owner--consider this hierarchy, from primary needs on down:

• Avoiding risk
• Avoiding hassle
• Gaining praise
• Gaining power
• Having fun
• Making a profit

In most large organizations, nothing happens unless at least one of these needs are met, and in just about every organization big enough and profitable enough to buy from you, the order of needs starts with the first one and works its way down the list.

That means that a sales pitch that begins with how much money the organization will make is pretty unlikely to work. Instead, the amount of profit has to be tied in to one of the other more primary needs of the person sitting across the table from you (as well as the committee or boss she reports to).

B2B selling is just like regular sales, except the customer (who might not be the person you're meeting with) is spending someone else's money (and wants to please the boss).

Thriving in a wet environment

If you've ever fixed any kind of machinery, you know that a device that's exposed to the elements is incredibly difficult to maintain. A washing machine or the underside of a car gets grungy, fast.

On the other hand, the dryest, cleanest environment of all is the digital one. Code stays code. If it works today, it's probably going to work tomorrow.

The wettest, weirdest environment is human interaction. Whatever we build gets misunderstood, corroded and chronic, and it happens quickly and in unpredictable ways. That's one reason why the web is so fascinating--it's a collision between the analytic world of code and wet world of people.

No software design survives a collision with the user.

Emergency room doctors

It's a mindset, not just a job.

You can pitch them as hard as you like about having them work to persuade their patients to give up smoking (after all, it saves lives in the long run), but I think you'll find that they're a lot more interested in stopping the bleeding.

We need emergency room doctors, no doubt. I just wonder if we have too many of them in your organization. If all we do is reward fast first aid in what people do at work, is it any wonder we don't have enough attention to the strategy and choices that would eliminate the need for all that running around in the first place?

It helps to know how prevalent the "emergency room" culture is before you start training your people on a new long-term strategy.

This is (still) broken

Two things worth a design rant, as well as a book and a free video talk...

I apologize if you see the world with more frustration after this.

What are you leaving behind?

I love watching contrails, those streams of white frozen exhaust that jets leave behind. It's a temporary track in the sand, and then the sun melts them and they're gone.

Go to Montana and you might see the tracks dinosaurs left a bazillion years ago. Same sort of travel, very different half-life of their passage.

All day long you're emailing or tweeting or liking or meeting... and every once in a while, something tangible is produced. But is there a mark of your passage? Fifty years later, we might hear a demo tape or an outtake of something a musician scratched together while making an album. Often, though, there's no trace.

I'm fascinated by blogs like this one, which are basically public notes and coffee breaks by a brilliant designer in between her 'real' work. Unlike tweets, which vanish, Tina's posts are here for a long time and much easier to share and bookmark. Her trail becomes useful not just to her, but to everyone who is interested.

What would happen if you took ten minutes of coffeebreak downtime every day and produced an online artifact instead? What if your collected thoughts about your industry became an ebook or a series of useful instructions or pages or videos?

What if we all did that?

The tyranny of low price

If you build your business around being the lowest-cost provider, that's all you've got. Everything you do has to be a race in that direction, because if you veer toward anything else (service, workforce, impact, design, etc.) then a competitor with a more single-minded focus will sell your commodity cheaper than you.

Cheapest price is the refuge for the marketer with no ideas left or no guts to implement the ideas she has.

Everyone needs to sell at a fair price. But unless you've found a commodity that must remain a commodity, a fair price is not always the lowest price. Not when you understand that price is just one of the many tools available.

A short version of this riff: The low-price leader really doesn't need someone with your skills.

A book/gadget list for late spring

I hope you'll find a gem or two.

Here it is.

"If I were you..."

But of course, you're not.

And this is the most important component of strategic marketing: we're not our customer.

Empathy isn't dictated to us by a focus group or a statistical analysis. Empathy is the powerful (and rare) ability to imagine what motivates someone else to act.

When a politician or a pundit vilifies someone for her actions, he's missed the point, because all he can do is imagine what he would do in that situation, completely avoiding an opportunity to see the world through someone else's eyes, to try on a new worldview, to attempt to imagine the circumstances that would lead to any action other than the one he would take.

When a teacher can't see why a student is stuck, or when an interface designer dismisses the 12% of the users who can't find the 'off' switch... we're seeing a failure of empathy, not a flaw in the user base.

When we call a prospect stupid for not choosing us, when we resort to blunt promotional tactics to get attention we could have earned with a more graceful approach--these are the symptoms that we've forgotten how to be empathetic.

You don't have to wear panty hose to be a great brand manager at L'eggs, nor do you need to be unemployed to work on a task force on getting people back to work. What is required, though, is a persistent effort to understand how other people see the world, and to care about it.

Dancing on the edge of finished

Before, when your shift was done, you were finished. When the inbox was empty, when the forms were processed, you could stop.

Now, of course, there's always one more tweet to make, post to write, words with friends move to complete. There's one more bit of email, one more lens you can construct, one more comment you can respond to. If you want to, you can be never finished.

And that's the dance. Facing a sea of infinity, it's easy to despair, sure that you will never reach dry land, never have the sense of accomplishment of saying, "I'm done." At the same time, to be finished, done, complete--this is a bit like being dead. The silence and the feeling that maybe that's all.

For the marketer, the freelancer and the entrepreneur, the challenge is to level set, to be comfortable with the undone, with the cycle of never-ending. We were trained to finish our homework, our peas and our chores. Today, we're never finished, and that's okay.

It's a dance, not an endless grind.

Ranking for signal to noise ratio

A whisper in a quiet room is all you need. There's so little noise, so few distractions, that the energy of the whisper is enough to make a dent.

On the other hand, it's basically impossible to have a conversation (at any volume) in a nightclub.

Signal to noise ratio is a measurement of the relationship between the stuff you want to hear and the stuff you don't. And here's the thing: Twitter and email and Facebook all have a bad ratio, and it's getting worse.

The clickthrough rates on tweets is getting closer and closer to zero. Not because there aren't links worth clicking on, but because there's so much junk you don't have the attention or time to sort it all out.

Spam (and worse, spamlike messages from organizations and people that ought to treasure your attention and permission) are turning a medium (email) that used to be incredibly rich into one that's becoming very noisy as well.

And you really can't do much to fix these media and still use them the way you're used to using them.

The alternative, which is well worth it, is to find new channels you can trust. An RSS feed with only bloggers who respect your time. Relentless editing of who you follow and who you listen to and what gets on the top of the pile.

Until you remove the noise, you're going to miss a lot of signal.

The endless emergency of politics

Good governance is like great marketing--it takes the long view, and relentlessly focuses on delivering on agreed upon goals over time.

Politics, on the other hand, is more like a ping pong match, and, thanks to electronic media, it's getting faster when we'd be better off if it slowed down.

Those that work in politics are now addicted to today's emergency, whatever it is. It could be a world event, a faux scandal or merely something the other side said. They use it to fundraise, they use it to distribute talking points and they use it to get attention and score points on the opposition. And they use polls to keep score, daily.

It's practically impossible to get the attention or effort of people on a campaign unless you've got something urgent and imminent to discuss. This is no way to do serious marketing.

One side effect of the endless emergency is an insatiable need for cash. Clearly, money spent on campaigns is effective (particularly in depressing the vote for an opponent), but just as clearly, it doesn't scale. Twice as much money is not twice as effective. When the campaign falls in love with the combination of instant reaction plus unlimited fundraising, all strategy and leadership go out the window.

The problem with getting elected using emergency tactics is that it makes it harder than ever to govern for the long term.

[Here's my post about the endless emergency of poverty].

You will be judged (or you will be ignored)

Those are pretty much the only two choices.

Being judged is uncomfortable. Snap judgments, prejudices, misinformation... all of these, combined with not enough time (how could there be) to truly know you, means that you will inevitably be misjudged, underestimated (or overestimated) and unfairly rejected.

The alternative, of course, is much safer. To be ignored.

Up to you.

A true story

Of course, that's impossible.

There's no such thing as a true story. As soon as you start telling a story, making it relevant and interesting to me, hooking it into my worldviews and generating emotions and memories, it ceases to be true, at least if we define true as the whole truth, every possible fact, non-localized and regardless of culture.

Since you're going to tell a story, you might as well get good at it, focus on it and tell it in a way that you're proud of.

Where's the heat?

Is that your goal? To find the next hot thing? Do you want to buy it, sell it, use it, eat it?

In every industry where there's fashion (which is every industry), people spend an enormous amount of time looking for heat. It defines the cutting edge, determines what's in or out, what's hot or not.

Two things worth considering:

a. the hot thing isn't always the thing that's aligned with your goals. Sure, sometimes the most profitable item is also the hot item of the moment, but for many companies, market share or profitability or utility has not a lot to do with being on the cutting edge of fashion. And as a user, the hot item of the moment isn't necessarily the thing that will create value or even identify you as truly hip.

b. The cycle of hot keeps getting shorter.

You can chase this, but it's not free, and it might not get you where you want to go.

Not everyone

If you're marketing a bass guitar or an orchid or an electric SUV, why are you concerned with what everyone thinks about it?

It seems to me that you should only care about the opinion of those that are actually open to buying one.

Shun the non-believers.

The quickest way to get things done and make change

Not the easiest, but the quickest:

Don't demand authority.

Eagerly take responsibility.

Relentlessly give credit.

Digital analogs are no longer sufficient

The parking meter was rebooting. I guess we're supposed to walk to the other end of the garage and find one that's working.

We're seeing digital awareness coming to just about everything. In this case, it was the parking meter near the library. Of course, it's not really a parking meter, it's a centralized fee collection system that saves the town a lot of money. It's easier to collect from, certainly, it doesn't waste the time of meter readers (who get alerted as to what spaces aren't paid for, as opposed to checking them all) plus it doesn't let a new parker enjoy a few minutes of the last person's payment.

I understand how the incremental sale of this device was easier to maket to the town and to the community. It's just like what we have now, but better.

The problem, of course, is that it's not as better as it could be. Just about every traditional non-digital solution is bounded by the limits of mechanics. Once we start connecting (and the connection revolution won't rest until it's all connected) then the problem can be reset--we can find the best solution, not a better way to solve it the old way.

Why do I have to guess how long I'm going to be parking? Why pay a penalty if I underguess, or waste community resources on patrolling for compliance?

Of course, I don't care much about parking meters. I care a lot about using digital shadows of real world devices because we don't have the imagination to reinvent them.

In this particular case: why bother have a meter at all? After all, the state knows my license plate, the state has a billing relationship with me, the state can (and does) collect money for my driving behaviors (like EZ Pass). So why not drive into the space and have the space just take care of all the paperwork and billing? No tickets, no meter readers. If you don't want local merchants to park in the good spaces, no need to spend a lot of time searching them out...

Instinctually, we want to maintain the hunter/prey relationship of the independent citizen who isn't being snooped on. But you know what? You're already being snooped on, ceaselessly. A parking meter isn't your problem.

Obviously, parking meters aren't the important device here. The connection revolution is going to upend the way we understand the where, who, how much and when of everything around us.

Hard work on the right things

I don't think winners beat the competition because they work harder. And it's not even clear that they win because they have more creativity. The secret, I think, is in understanding what matters.

It's not obvious, and it changes. It changes by culture, by buyer, by product and even by the day of the week. But those that manage to capture the imagination, make sales and grow are doing it by perfecting the things that matter and ignoring the rest.

Both parts are difficult, particularly when you are surrounded by people who insist on fretting about and working on the stuff that makes no difference at all.

Worldliness

Intelligence is the combination of knowing a lot about a little while you also know a little about a lot.

Deep domain understanding helps you create analyses. Your ability to understand how a particular system (no matter how small) works allows you apply a confident analysis to new systems you encounter. Once you know everything there is to know about nuclear physics, soccer or the praying mantis, it makes it easier to understand new systems.

At the same time, it's impossible to be smart without also being aware of the wider world. That's because it's the random interactions and the surprising coincidences that help us navigate our daily lives.

The challenge of the net is that it made the large world a whole lot larger. There are the personal lives of your 1000 closest friends, on display, every day. Here is the news of the world, the whole world, not just what used to fit in the newspaper. And over there is every book ever published, every scientific discovery, every fringe political candidate.

Suddenly, it's a lot more difficult to know a little about a lot. It's tempting to spend ever more time pursuing that goal. That doesn't mean, I think, that you should give up knowing a lot about a little in order to devote ever more time to the noisy mosaic that's on your doorstep, nor does it mean you ought to give up and dive back into your hole. We've redefined worldly, but being an expert remains just as tough and important as it used to be.

The reason the customer is always right...

If you insist that they are wrong, they stop being your customer* (if given half a chance).

People spend their time and attention and money in places that make them feel valued.

*There's nothing wrong with asking customers who are wrong to leave. Just be sure you do it on purpose.

Dedicating the merit

For an author, one of the nicest parts of the traditional book is the dedication page. The dedication is far more than an acknowledgement to someone who helped you write the book, it's a permanent signpost, a capstone to the work of a year or more.

Even if the person you've dedicated the book to can't read it, the writer benefits from the knowledge that a connection was made and that a memory was preserved.

Here's the thing: you can dedicate just about anything. A project, a meeting, a tweet. You don't have to tell anyone but yourself. This blog post, like all the posts before it, has a dedication page, at least in my head.

When you start creating for and in honor of those that have made a difference to you, your work changes.

Naming things

"Over there, by the fire, is that a stick or a snake?"

It turns out that humans have been naming things for a long time. If we know that this is a cheetah, or a grapefruit, we can make intelligent decisions on how to deal with it.

Lately, though, we've been naming more than things. Now we classify ideas and opportunities as well.

Getting smart about naming is at the heart of marketing. Calling every single person a 'customer', for example, is hardly a nuanced way of engaging with the public. Salespeople are especially nuanced at this, but often make mistakes as well. Car salesman are notorious for misnaming women who walk in (spouse instead of primary decision maker).

As an investor, are you misnaming the businesses you look at, mistaking a cliff business for a bootstrappable idea? Dozens of book editors misnamed Harry Potter at first glance, labeling it a 'loser from the slush pile' instead of the most profitable book they were ever offered.

Job interviews are nothing but sessions where we try to put a name on a stranger looking for employment. Is she a superstar in the making or someone we ought to avoid?

Most of all, are you misnaming opportunities and calling them risks instead?

When you are isolated or if the world is stable, your need to name new things goes down, and the world might feel safer as a result. Most of us don't live in that world, so our ability to name things becomes critical.

Just because we're not good at it doesn't mean it's not important.

Free samples

It bothers me to watch the hordes at the farmer's market, swooping in to each booth, grabbing a sample and walking away. The thin slices of handmade rye bread, or the perfect strawberries or the little glasses of juice--all of them disappear into the hands of people who have no intention of buying.

Sure, someone stops and buys now and then, which is why the farmers keep offering the samples. To them, it's merely a cost of doing business, a relatively inexpensive way to keep prospective customers coming. I'm not sure I could do it--the people afraid to look me in the eye, all that slinking around, and most of all, the profits walking out the door, over and over again. Enough thin slices makes a loaf.

This is vexing, even to someone who merely makes ideas. Watching people sneak endless tastes with no intention of making a purchase--sometimes I gasp at the audacity.

The distinction in the digital world is profound. In the digital world, the more free samples you give away, the better you do. The miserly mindset that afflicts the merchant watching inventory walk out the door at the market is counterproductive in the digital world. That's because more free samples cost you nothing.

The scarce resources in the connection revolution are connection, attention and trust, not molecules, atoms or strawberries.

Why ask why?

"Why?" is the most important question, not asked nearly enough.

Hint: "Because I said so," is not a valid answer.

• Why does it work this way?
• Why is that our goal?
• Why did you say no?
• Why are we treating people differently?
• Why is this our policy?
• Why don't we enter this market?
• Why did you change your mind?
• Why are we having this meeting?
• Why not?

How to make money online

1. The first step is to stop Googling things like, "how to make money online." Not because you shouldn't want to make money online, but because the stuff you're going to find by doing that is going to help you lose money online. Sort of like asking a casino owner how to make money in Vegas...
2. Don't pay anyone for simple and proven instructions on how to achieve this goal. In particular, don't pay anyone to teach you how to write or sell manuals or ebooks about how to make money online.
3. Get rich slow.
4. Focus on the scarce resource online: attention. If you try to invent a way to take cheap attention and turn it into cash, you will fail. The attention you want isn't cheap, it's difficult to get via SEO and it rarely scales. Instead, figure out how to earn expensive attention.
5. In addition to attention, focus on trust. Trust is even more scarce than attention.
6. Don't worry so much about the 'online' part. Instead, figure out how to create value. The online part will take care of itself.
7. Don't quit your day job. Start evenings and weekends and figure it out with small failures.
8. Build a public reputation. A good one, and be sure that you deserve it, and that it will hold up to scrutiny.
9. Obsessively specialize. No niche is too small if it's yours.
10. Connect the disconnected.
11. Lead.
12. Build an online legacy that increases in value daily.
13. Make money offline. If you can figure out how to create value face to face, it's a lot easier to figure out how to do the same digitally. The web isn't magic, it's merely efficient.
14. Become the best in the world at something that people value. Easier said than done, worth more than you might think.
15. Hang out with people who aren't looking for shortcuts. Learn from them.
16. Fail. Fail often and fail cheaply. This is the very best gift the web has given to people who want to bootstrap their way into a new business.
17. Make money in the small and then relentlessly scale.
18. Don't chase yesterday's online fad.
19. Think big, act with intention and don't get bogged down in personalities. If it's not on your agenda, why are you wasting time on it?
20. Learn. Ceaselessly. Learn to code, to write persuasively, to understand new technologies, to bring out the best in your team, to find underused resources and to spot patterns.
21. This is not a zero sum game. The more you add to your community, the bigger your piece gets.

A few years ago I put my book The Bootstrapper's Bible online for free. You can find it here.