Category Archives: business

Lesson #1: The First Pillar — Relationships | Copyblogger

Lesson #1: The First Pillar — Relationships | Copyblogger.

You know that old cliché, right? Content is king?

Well, it’s wrong.

Content matters, and content is a pillar of the “Internet Marketing for Smart People” method. But content isn’t king.

Relationships are king.

Where the Money Is

The IM tribe (those are the traditional Internet Marketers — you know, the yellow highlighter brigade) figured out early on that “the money’s in the list.” In other words, if you can get a big list together of folks who had some interest in your topic, you could give those people a chance to buy stuff, and make a pretty nice living doing it.

The truth is, the direct mail (known to most of us as junk mail) folks had this figured out decades before there was such a thing as the Internet.

And because it costs money to send direct mail, they also figured out another very important piece:

Not every list is created equal.

When you’re spending even a few cents to send a piece of mail (and sending them by the millions), you need to get very clear on what works. And what doesn’t.

Taking Good Care of Your Village

There are a lot of names for a group of prospects and customers you communicate with regularly.

Dan Kennedy calls them a herd. (Just a bit condescending, I think.) The IM crowd calls it a list. Seth Godin calls it a tribe.

Here on Copyblogger, we call them a village. In some ways, we’ve gone back to the Middle Ages, when nearly everyone’s “work” was inextricably tied with their community.

The village baker was your neighbor. If he baked terrible bread, you walked over and gave him a piece of your mind. It was a messy, complicated system that became downright trying at times. But it also brought a comforting reliability and predictability that business today usually can’t match.

In other words, it was a relationship.

Your village asks more from you, but they’re also more loyal to you. This isn’t a new way of doing business, but it’s new to most of us.

(Take a look at this post with more thoughts on the village of customers.)

Your Village is Your Greatest Asset

In IMfSP (that’s Internet Marketing for Smart People) marketing, you treat your village as your greatest asset.

That means the combined total of all the people who read (or watch, or listen to) your content regularly. Your blog community, your email list, your customer list, your Twitter followers — all of it.

Every time you have a business decision to make, you make it with this in mind: How does this decision affect my relationship with my village?

It’s how you decide what products to offer. It’s how you decide how often to post. It’s how you decide whether or not to run an article by a guest writer. It’s how you choose your affiliates.

Now there’s an important flip side to this, too.

Relationships Go Both Ways

Sometimes we justify our fear of selling with the excuse that we don’t want to damage our relationship with the village.

Keep in mind that a one-way relationship isn’t really a relationship at all. It’s exploitation.

In exchange for everything you do for your village, you must also conduct yourself in a businesslike way.

That means setting appropriate boundaries, making it clear from the beginning that you’ll be offering products for sale, and taking from the village as well as giving to it.

This is where many bloggers and other social media types stumble, and we’re going to give you much more specific advice on how you’ll do that with your own village. To get you started, take a look at this post, aimed at what I call “Kumbaya” bloggers.

Just remember: If you give and give to your village, and never get anything in return, what would that make you?

The village idiot, of course.

See you next time . . . next week we’ll be talking about the second IMSP pillar, which is copywriting. Specifically, we’ll go in-depth on the one element that can make or break your content. Catch you then.

How to create advertising that sells

“How to create advertising that sells”

By David Ogilvy

Ogilvy & Mather has created over $1,480,000,000 worth of advertising. Here, with all the dogmatism of brevity are 38 of the things we have learned.

1.  The most important decision. We have learned that the effect of your advertising on your sales depends more on this decision than on any other: how should you position your product? Should you position Schweppes as a soft drink – or as a mixer?  Should you position Dove as a product for dry skin or as a product which gets hands really clean?  The results of your campaign depend less on how we write your advertising than how your product is positioned.  It follows that positioning should be decided before the advertising is created.  Research can help.  Look before you leap.

2.  Large promise. The second most important decision is this:  what should you promise the customer?  A promise is not a claim, or a theme, or a slogan.  It is a benefit for the consumer.  It pays to promise a benefit which is unique and competitive, and the product must deliver the benefit your promise.  Most advertising promises nothing.  It is doomed to fail in the marketplace.  ”Promise, large promise, is the soul of an advertisement”  – said Samuel Johnson.

3.  Brand image. Every advertisement should contribute to the complex symbol which is the brand image.  95% of all advertising is created ad hoc.  Most products lack any consistent image from one year to another.  The manufacturer who dedicates his advertising to building the most sharply defined personality for his brand gets the largest share of the market.

4. Big ideas. Unless your advertising is built on a big idea, it will pass like a ship in the night. It takes a big idea to jolt the consumer out of his indifference – to make him notice your advertising, remember it and take action. Big ideas are usually simple ideas. Said Charles Kettering, the great General Motors inventor: “this problem, when solved, will be simple.” Big, simple ideas are not easy to come by. They require genius – and midnight oil. A truly big one can be continued for 20 years – like our eye patch for Hathaway shirts.

 

5. A first-class ticket. It pays to give most products an image of quality – a first-class ticket. Ogilvy & Mather  has been conspicuously successful in doing this – for Pepperidge, Hathaway, Mercedes Benz, Schweppes, Dove and others. If your advertising looks ugly, consumers will conclude that  your product is shoddy and they will be less likely to buy it.

6. Don’t be a bore. Nobody was ever bored into buying a product. Yet most advertising is impersonal, detached, cold – and dull. It pays to involve the customer. Talk to her like a human being. Charm her. Make her hungry. Get her to participate.

7. Innovate. Start trends – instead of following them. Advertising which follows a fashionable fad or is imitative, is seldom successful. It pays to innovate, to blaze new trails. But innovation is risky unless you pre-test your innovation with consumers. Look before you leap.

8.  Be suspicious of awards. The pursuit of creative awards seduces creative people from the pursuit of sales.  We have been unable to establish any correlation whatever between awards and sales.  At Ogilvy and Mather, we now give an annual award for the campaign which contributes the most to sales. Successful advertising sells the product without drawing attention to itself, it rivets the consumer’s attention on the product.  Make the product the hero of your advertising.

9.  Psychological Segmentation. Any good agency knows how to position products for demographic segments of the market – for men, for young children, for farmers in the south, etc.  But Ogilvy and Mather has learned that it often pays to position for psychological segments of the market.  Our Mercedes-Benz advertising is positioned to fit non-conformists who scoff at “status symbols” and reject flim-flam appeals to snobbery.

10.  Don’t bury news. It is easier to interest the consumer in a product when it is new than at any other point in its life.  Many copywriters have a fatal instinct for burying news.  That is why most advertising for new products fails to exploit the opportunity that genuine news provides.  It pays to launch your new product with a loud boom-boom.

11.  Go the whole hog. Most advertising campaigns are too complicated.  They reflect a long list of marketing objectives.  They embrace the divergent views of too many executives.  By attempting too many things, they achieve nothing.  It pays to boil down your strategy to one simple promise – and go the whole hog in delivering that promise.

What Works Best In Television

12.  Testimonials. Avoid irrelevant celebrities.  Testimonial commercials are almost always successful – if you make them credible.  Either celebrities or real people can be effective.  But avoid irrelevant celebrities whose fame has no natural connection with your product or your customers.  Irrelevant celebrities steal attention from your product.

13. Problem-solution (don’t cheat!) You set up a problem that the consumer recognizes. And you show how your product can solve that problem. And you prove the solution. This technique has always been above average in sales results, and it still is. But don’t use it unless you can do so without cheating: the consumer isn’t a moron. She is your wife.

14. Visual demonstrations. If they are honest, visual demonstrations are generally effective in the marketplace. It pays to visualize your promise. It saves time. It drives the promise home. It is memorable.

15. Slice of life.
These playlets are corny, and most copywriters detect them. But they have sold a lot of merchandise, and are still selling.

16. Avoid logorrhea. Make your pictures tell the story. What you show is more important than what you say. Many commercials drown the viewer in a torrent of words. We call that logorrhea, (rhymes with diarrhea.) We have created some great commercials without words.

17. On-camera voice. Commercials using on-camera voice do significantly better than commercials using voice over.

18.  Musical Backgrounds. Most commercials use musical backgrounds.  However, on the average, musical backgrounds reduce recall of your commercial.  Very few creative people accept this.   But we never heard of an agency using musical background under a new business presentation.

19.  Stand-ups. The stand-up pitch can be effective, if it is delivered with straightforward honesty.

20.  Burr of singularity.
The average consumer now sees 20,000 commercials a year; poor dear.  Most of them slide off her memory like water off a duck’s back.  Give your commercials a flourish of singularity, a burr that will stick in the consumer’s mind.  One such burr is the mnemonic device or relevant symbol – like the crowns in our commercials for Imperial Magazine.

21.  Animation and cartoons.
Less than 5% of television commercials use cartoons or animation.  They are less persuasive than live commercials.  The consumer can not identify herself with the character in the cartoon and cartoon’s do not invite belief.  However, Carson-Roberts, our partners in Los Angeles, tell us that animation can be helpful when you are talking to children.  They should know, they have addressed more than 600 commercials to children.

22.  Salvage commercials.
Many commercials which test poorly can be salvaged.  The faults revealed by the test can be corrected.  We have doubled the effectiveness of a commercial simply be re-editing it.

23.  Factual versus emotional.
Factual commercials tend to be more effective than than emotional commercials.  However, Ogilvy & Mather has made some emotional commercials, which have been successful in the marketplace.  Among these are our campaigns for Maxwell House Coffee and Hershey’s Milk Chocolate.

24.  Grabbers.
We have found that commercials with an exciting opening hold their audience at a higher level than commercials which begin quietly.

What Works Best In Print?

25. Headline. On the average, five times as many people read the headline as read the body copy.  It follows that, if you don’t sell the product in your headline, you have wasted 80% of your money.  That is why most Ogilvy and Mather headlines include the brand name and the promise.

26.  Benefited headline. Headlines that promise to benefit sell more than those that don’t.

27.  News and headlines. Time after time we have found that it pays to inject genuine news into headlines.  The consumer is always on the lookout for new products or new improvements in an old product, or new ways to use an old product.  Economists – even Russian economists – approve of this.  They call it “informative” advertising.  So do consumers.

28.  Simple headlines.
Your headline should telegraph what you want to say – in simple language.  Readers do not stop to decipher the meanings of obscure headlines.

29.  How many words in a headline? In headline tests conducted with cooperation from a big department store, it was found that headlines of 10 words or longer sold more goods than short headlines.  In terms of recall, headlines between 8-and-10 words are most effective.  In mail order advertising, headlines between 6-and-12 words get the must coupon returns.  On the average, long headlines sell more merchandise than short ones – headlines like our “At 60 miles an hour, the loudest noise in this new Rolls-Royce comes from the electric clock.”

30.  Localize headlines. In local advertising, it pays to include the name of the city in your headline.

31.  Select your prospects.
When you advertise your product which is consumed by a special group, it pays to flag that group in your headline – mothers, bedwetters, going to Europe?

32. Yes, people read long copy. Readership falls off rapidly up to 50 words, but drops very little between 50 and 500 words (this page contains 1,909 words, and you are reading it). Ogilvy & Mather has used long copy – with notable success – from Mercedes Benz, Cessna Citation, Merrill Lynch, and Shell Gasoline. “The more you tell, the more sell.”

33. Story appeal and picture. Ogilvy & Mather has gotten noticeable results with photographs, which suggest the story. The reader glances at the photograph and asks himself, “what goes on here?” Then he reads the copy to find out. Harold Rudolph called this magic element “story appeal.” The more of it you inject into your photograph, the more people look at your advertisements. It is easier said than done.

34. Before and after. Before and after advertisements are somewhat above average in attention value. Any form of visualized contrast seems to work well.

35. Photographs versus art work.
Ogilvy & Mather has found that photographs work better than drawing – almost invariably. They attract more readers, generate more appetite appeal, are more believable, are better remembered, pull more coupons, and sell more merchandise.

36. Use captions to sell.
On the average, twice as many people read the captions under photographs as read the body copies. It follows that you should never use a photograph without putting a caption under it; and each caption should be a miniature advertisement for the product – complete with the brand name and promise.

37: Editorial layout. Ogilvy & Mather has had more success with editorial layouts, than with addy Layouts. Editorial layouts get higher readership than conventional advertisements.

38: Repeat your winners. Scores of great advertisements have been discarded before they have begun to pay off.  Readership can actually increase with repetition – up to five repetitions.

Below, please see the incredible, original, 1,900 word ad: “How to create advertising that sells” written by David Ogilvy that actually ran in newspapers back in the 60’s and 70’s as an ad for Ogilvy & Mather.

Delegate or die: the self-employed trap

Delegate or die: the self-employed trap. | Derek Sivers.

Most self-employed people get caught in the delegation trap.

You’re so busy, doing everything yourself.
You know you need help, but to find and train someone would take more time than you have!
So you keep working harder, until you break.

Here’s my little tale of how I broke into the delegation mindset:

In 2001, CD Baby was three years old.
I had eight employees but I was still doing “everything else” myself.
Working 7am to 10pm, seven days a week, everything still went through me.

Every five minutes, my employees had a question for me:

*

“Derek, some guy wants to change the album art after it’s already live on the site. What do I tell him?”

*

“Derek, can we accept wire transfer as a form of payment?”

*

“Derek, someone placed two orders today, and wants to know if we can ship them together as one, but refund him the shipping cost savings?”

It was hard to get anything done while answering questions all day.
I felt like I might as well just show up to work and sit on a chair in the hallway, just answering employees’ questions, full-time.

I hit my breaking point.
I stopped going to the office and shut off my phone.
Then I realized I was running from my problems instead of solving them.
I had to fix this, or I’d be ruined.

After a long introspective night of thinking and writing, I got myself into the delegation mindset.

I had to make myself un-necessary to the running of my company.

The next day, as soon as I walked in the door, someone asked, “Derek, someone whose CDs we received yesterday has now changed his mind and wants his CDs shipped back.  We’ve already done the work, but he’s asking if we can refund his set-up fee since he was never live on the site.”

This time, instead of just answering the question, I called everyone together for a minute.

I repeated the situation and the question for everyone.

I answered the question, but more importantly, I explained the thought process and philosophy behind my answer.

“Yes refund his money in full. We’ll take a little loss. It’s important to always do whatever would make the customer happiest, as long as it’s not outrageous. A little gesture like this goes a long way to him telling his friends we’re a great company. Everyone always remember that helping musicians is our first goal, and profit is second. You have my full permission to use that guideline to make these decisions yourself in the future. Do what makes them happiest. Make sure everyone who deals with us leaves with a smile.”

I asked around to make sure everyone understood the answer.

I asked one person to start a manual, and write down the answer to this one situation, and write down the philosophy behind it.

Then everyone went back to work.

Ten minutes later, new question.
Same process:

1.

Gather everybody around.

2.

Answer the question, and explain the philosophy.

3.

Make sure everyone understands the thought process.

4.

Ask one person to write it in the manual.

5.

Let them know they can decide this without me next time.

After two months of this, there were no more questions.

Then I showed someone how to do the last of the stuff that was still my job.
As part of learning it, they had to document it in the manual, and show it to someone else, too.
(Learn by teaching.)

Now I was totally un-necessary.

I started working at home – not going into the office at all.

I had even taught them my thought-process and philosophy about hiring new people.
So our two newest employees were entirely found, interviewed, hired, and trained by them.
They used that manual to make sure every new employee understood the philosophy and history, and knew how to make decisions for themselves.

I’d call in once a week to make sure everything was OK.
It was.
They didn’t even have any questions for me.

Because my team was running the business, I was free to actually improve the business!

I moved to California, just to make it clear that the running of things was up to them.

I was still working 12-hour days, but now I was spending all my time on improvements, optimizations and innovations.
To me, this was the fun stuff.
This was play, not work.

While I was away, my company grew from $1M to $20M in four years.

There’s a big difference between being self-employed and being a business owner.

Being self-employed feels like freedom until you realize that if you take time off, your business crumbles.

To be a true business owner, make sure you could leave for a year, and when you came back, your business would be doing better than when you left.

(If you’re interested in this stuff, read a book called “E-Myth Revisited” by Michael Gerber.)

10 David Ogilvy Quotes

10 David Ogilvy Quotes that Could Revolutionize Your Blogging. from ProBlogger

1. “The consumer isn’t a moron; she is your wife.”

How appropriate—both for internet marketers (who are often known for tactics that treat those they target as morons) and bloggers (who can at times talk down to readers).

The idea of treating your reader as someone who you value, as someone incredibly special to you, will take bloggers a long way.

Another Ogilvy quote that relates: “Never write an advertisement which you wouldn’t want your family to read. You wouldn’t tell lies to your own wife. Don’t tell them to mine.

2. “The best ideas come as jokes. Make your thinking as funny as possible.”

I’ve been pondering this one a lot over the last 24 hours and it’s true—some of my best blog posts and projects have emerged out of light-hearted tweets or comments in conversations to friends.

31 Days to Build a Better Blog came about as I laughed with a friend about how bloggers needed a daily devotion (similar to what I grew up with as a good Christian boy reading Every day with Jesus) to keep their blogs on track.

7 Digital Camera Predators and How to Keep them at Bay started as a friend and I joked about things that conspired to kill our cameras.

It’s often the crazy little ideas that we have that first make us laugh that do best. If they get some kind of reaction in us (even one that makes us giggle at how silly they are), they’re likely to also get a reaction from others.

3. “Don’t bunt. Aim out of the ball park. Aim for the company of immortals.”

Think big! While there’s also something to be said for having realistic expectations about what you can achieve with a blog, there’s nothing wrong with having big dreams and aiming to make them a reality.

It can be a bit of a balancing act, but if you aim a little higher you might just find yourself achieving things with your blog that you might not have thought possible.

4. “I have a theory that the best ads come from personal experience. Some of the good ones I have done have really come out of the real experience of my life, and somehow this has come over as true and valid and persuasive.”

If there’s one quote in this selection that most rings true for me it is this one. The posts that I’ve written that have emerged out of real experience, pain, excitement, heartache, and life are the ones that time and time again hit the mark with readers.

Tell stories, share your successes and failures, be yourself, and let your own personal voice come out. You’ll find readers respond in a personal way, too.

5. “I don’t know the rules of grammar… If you’re trying to persuade people to do something, or buy something, it seems to me you should use their language, the language they use every day, the language in which they think. We try to write in the vernacular.”

This might get up the noses of those of you who are a little more particular about grammar (and I do thank you for your continued daily emails pointing out my mistakes), but I think there’s something powerful about this.

Write your blog posts in the way that you’d actually speak to them if they were in the chair opposite you. Use language that communicates most clearly with them—even when it might not be the Queen’s English.

Of course there comes a point where grammar and spelling errors can and do get in the way of communicating clearly with readers. Don’t be lazy—the point is to know your readers and communicate in a way that’s relevant to them.

6. “Good copy can’t be written with tongue in cheek, written just for a living. You’ve got to believe in the product.”

I’m not sure I agree 100% with this as I do know bloggers who make good livings from writing about things that they have no real interest in or passion for. However, most successful blogs (and by that I mean more than profit, and am looking at blogs that connect with readers and help build a blogger’s reputation) are written by people who have something genuine to say about a topic they believe in.

While it’s possible to create a profitable blog on something you have no interest or belief in (by gaming the search engines for example), those kinds of blogs are never going to create a connection with readers or do much to raise your profile in an industry.

Conversely, bloggers who create blogs that come from genuine interest and passion for topics create connections with readers that have flow-on effects that lead to all kinds of wonderful opportunities.

7. “If you ever have the good fortune to create a great advertising campaign, you will soon see another agency steal it. This is irritating, but don’t let it worry you; nobody has ever built a brand by imitating somebody else’s advertising.”

There’s nothing more heartbreaking for a new blogger when you see your content being scraped onto another blog or your intellectual property being used by others without credit.

I still get upset by this from time to time, however there’s one thing that I’ve noticed despite hundreds of sites each day republishing my work without permission and/or credit. Nobody actually seems to read those blogs.

The key to successful blogging is unique and useful information. People who simply regurgitate what you write, or even repost it word for word, either eventually give up (because nobody reads it) or get caught out (and stop in disgrace).

While there are times when I’ve chased down others who blatantly steal my stuff without credit (there is a line) I find it much more beneficial to spend my time creating more great content than policing how people use what I’ve already produced.

Focus the bulk of your time upon producing and being the best you can be. This will have more positive impact upon your business than the negative tasks of stopping spammers and thieves stealing your old ideas.

8. “First, make yourself a reputation for being a creative genius. Second, surround yourself with partners who are better than you are. Third, leave them to go get on with it.”

This one might be a little more appropriate for advanced bloggers who’ve established themselves and are looking to take things to the next level.

There does come a time in most businesses where a solo entrepreneur needs to think about how to expand and grow beyond their own capacity to give their business personal attention.

There are only so many hours in the day. Expanding your team and/or partnering with others is one option to consider. If you do it, look for people whose skills complement and exceed yours, then get out of their way.

9. “Never stop testing, and your advertising will never stop improving.”

David was big on testing, and his effectiveness as a communicator improved dramatically as a result.

It’s amazing what you learn when you test different elements on a blog: simple tweaks of headlines, changes in calls to action, different placements of ads, tracking how design changes improve conversion of your objectives … the list could go on.

Great bloggers don’t just write content—they watch to see how people interact with it (and their blog) and use what they learn to improve their future efforts.

10. “On the average, five times as many people read the headline as read the body copy. When you have written your headline, you have spent eighty cents out of your dollar. “

The headline or title of your blog post is the most effective way to get people to read the rest of your post. If you don’t understand—and more importantly, implement—this principle, you’re going to miss out on a lot of readers.

Headlines draw people in, whether they see them in search results, on Twitter, in RSS feeds, or on your blog itself.

Ogilvy is famous for his advice on this: the purpose of your headline is to get people to read your first line. The purpose of your opening line is to get people to read the next one. So invest time and energy into your titles (and opening lines).

Here’s a related quote: “The headline is the ‘ticket on the meat.’ Use it to flag down readers who are prospects for the kind of product you are advertising.”

Is a job a set of tasks or a platform for more ?

Where’s your platform?

That needs to be the goal when you seek out a job.

Bob Dylan earned the right to make records, and instead of using it to create ever more commercial versions of his old stuff, he used it as a platform to do art.

A brilliant programmer finds a job in a small company and instead of seeing it as a grind, churning out what’s asked, he uses it as a platform to hone his skills and to ship code that changes everything.

A waiter uses his job serving patrons as a platform for engagement, for building a reputation and for learning how to delight.

A blogger starts measuring pageviews and ends up racing the bottom with nothing but scintillating gossip and pandering. Or, perhaps, she decides to use the blog as a platform to take herself and her readers somewhere they will be glad to go…

There’s no rigid line between a job and art. Instead, there’s an opportunity. Both you and your boss get to decide if your job is a platform or just a set of tasks.

Seth Godin