Video – Sound Amazing Online

Last night I did an 5 minute talk at Ignite about sound amazing online and it was awesome! The video and slides are embedded below.

Here is what people are saying about it:

“Rishi is killing it, the crowd is cracking up #ignitesf
– Jon Bishop (Ignite Organizer) via twitter

“marketing wisdom and laughter in 5 min”
– Raymond Lau (Founder of PlayHaven) via LinkedIn

“R rated joke at 2:22 – I hope mom doesn’t see this.”
– Anand Desai (my brother) via Facebook

 

This was my favorite and probably most sarcastic comment:
“your speech was the best five minutes of my life.”
– Jamie Shah (Google Maps Finance High Roller) via Facebook

So, what did you think of the speech? Let me know in the comments.


Launch a Business, Not a Bunch of Social Media Accounts

Launching a new product on the web can be an extremely daunting task. You have to create a new Twitter account, collect email addresses, write on a blog, start a Facebook page, go to conferences, and so on.

My question to you is will any of these things actually get you new customers? Chances are they won’t.

Don’t launch your company Twitter account until you are ready. It is a huge mental drain to get yourself to update it everyday.

Don’t start a blog until you are ready to post to it every few weeks with updates. No one is going to read your blog until you have a few customers or some publicity. It is major time-waster to have to update a blog after it has been launched. Instead focus on reaching out to existing industry specific blogs and writing on those.

Don’t start a Facebook page. In most cases all your Facebook likes will be the friends you spam. Wait to launch a Facebook page until you have customers and can leverage it to get more customers.

Don’t go to irrelevant conferences. Conferences are great and can be awesome to attend if your customers are actually there. Things like TechCrunch Disrupt and random tech events are fun (and possibly worth it if you can leverage it to get press). But in most cases it is a total waste of time and money if your customers are businesses owners outside of the tech scene. Instead go to conferences where your customers go to.

Stay focused on where your customers live and selling your product to them. That is what is going to make your business sustainable. Not being “social” right away.

Apple’s OS X Lion Pricing and Distribution Domination

Apple just announced their new operating system, Lion. I believe this will be Apple’s most profitable OS ever, not just because it is loaded with hundreds of amazing features but for their pricing and distribution strategy. They made is so easy and affordable that it will be impossible not to get it. What is interesting is the price drop also shows some insight to Apple’s overall strategy.

Apple is no longer sending out CDs. They are having you download it through the Mac Apple store. The new operating system only costs $29 (compared to $129 for Cheetah – Mac OS 10)

Main Benefits:

  1. Apple makes most of its money on hardware. More people that say “Lion is amazing” will sell more laptops. If you look at Apple’s financials hardware dwarfs everything else.
  2. I got my copy of Leopard from a friend. It was easy, he just gave me the CD. But how do you share a 4GB file? It isn’t easy… and at $29 I don’t mind just buying it myself rather than having to look like a cheapo and beg my friend for it.
  3. They removed almost all obstacles to buy it. All you need to do is click on the mac app store icon and bam! you got it.
  4. Lion has a few network effect features. For example the “Air Drop” – allows you to easily share files with people near you. People will do the upgrade as soon as one of their co-workers asks them to… no need to wait for a CD in the mail.
  5. Quicker market adoption. (the result of benefit #1, #2, and #3)

What I learned from Apple today:

  1. Make it as easy as possible to give customers your products: 1 click and as little as waiting time as possible.
  2. Make it extremely affordable so people don’t even want to cheat your system. It’s just easier to buy it and not worth the hassle.
  3. Understand where you make most of your money.

Special thanks to Ish for helping me write up this post.

Who is doing FREE right?

Photo by Brad Stabler

Giving something away for free is easy. Making money on free is hard. Here are a few companies that are doing it right.

On The Web

Mail Chimp's Pricing Page

Mail Chimp

MailChimp has a gazzilion competitors in the hosted email marketing space. They make their free plans (2,000 contacts) crazy huge. The switching costs of a hosted email provider are pretty high – attract people to your free plan, get them hooked, and make them pay when they are more successful.

Keep in mind that MailChimp is funded and I bet their spam monitoring team is quite big.

WordPress

WordPress.com/.org and other popular open source products – WordPress has done a great job creating the best blogging platform and the best part is that you can self host a copy of WordPress for free. A few years back they launched wordpress.com a hosted version of WordPress for $15/mo – perfect for non techies or people that don’t want to deal with the server headaches. Also a great way to leverage their extremely strong brand name, “WordPress”.

Free Credit Report

FreeCreditReport.com – They ask for your credit card info so they can check your credit score. They then auto-enroll you into a $14.95/mo plan so you can monitor your credit score. Is this super scammy? Yes. If you choose to do something like this – get ready for a ton of angry customers and chargeback fees. I decided to add them to this list because they just added a big banner at the top notifying people of this AND they are a good free service for checking your credit score.

DropBox

DropBox is one of my favorite companies that is doing Free right. They use their “Free” plan as a way to get new customers. First they offer a very generous 2GB storage “Free” plan and they let you earn more free space for every friend you successfully refer.

In Physical Retail Stores

Free Cone Day - Emphasis on the Store Locator

Ben & Jerry’s

Ben & Jerrys – Where is your local Ben & Jerry’s? I had no idea until Free Cone Day happened. I google map’ed it and went. Now I know exactly what route to take to remedy my sweet tooth.

Apple

Apple’s Free Engraving – When you engrave someones name on the back of an Ipod you can no longer sell it on eBay. The value decreases. I mean who is going to buy my IPod with the engraving “Stud Muffin”. “By offering free engraving, Apple makes these used devices less valuable to other consumers. Who wants a weird engraving chosen by the previous owner on his iP*d?” – Eli Douardo

On Television

Snuggie

Snuggies and All Infomercials – “But wait, there is more”. Technically they aren’t giving you anything for free but they act like it. If you buy the product today you get a bunch of extra free stuff which gets the customer thinking that they are getting something for free.

Conclusion: If you are going to give something away for free, make sure you know how to earn money from it.

Do you offer a free product or plan? Let me know if it is working for you and how.

How to Start and Grow an Informational Product Business

Photo by 10chPhoto by 10Ch

The easiest business to start is one where you don’t need any money and you already have all the knowledge required to build the product. Well… duh… but what kind of business is this? It is an informational product business! This is where you sell content in the form of e-books, blog posts, and webinars.

Darin Eich

My buddy Darin Eich is the one guy I turn to when I need some fresh ideas. Really any kind of ideas… anything from new product ideas to managing new people. He helps me innovate and ideate. So when he asked me to write him a step by step guide to launching an informational product business that will help others think outside the box I sprung to the challenge.

Luckily he was totally cool with me sharing the plan I wrote for him in a guest blog post on Up and Running. Check out this step by step guide to starting and running a profitable informational product business (this is a 3 year guide).

This blog post includes the following:

  1. List of places I like to publish my blog post to get more traction
  2. An easy way to find good blogs to guest post on
  3. Step by step guide to get to $5k in revenue

Check out the full blog post here.

Yearly Customers – A Look at Squarespace’s Pricing Page

Shows you why Yearly Pricing RocksOne way to get more money from your customers is to charge them on a yearly basis instead of monthly. There are 3 major benefits to charging yearly:

1. No need to ask the customer for new credit card info when their credit card expires or is declined. (This is a major issue for all SAAS businesses)
2. If the average time a customer stays with your service is under a year , then by charging up front for a full year guarantees longer customer lifespan.
3. Cash in hand is worth way more than cash later. You can actually do things if you have the cash (like acquire more customers now instead of 11 months later).

Squarespace does a great job pushing the yearly plan onto the customer.

Screen Shot of Squarspace Pricing Page

My top 3 favorite things about this page:

1. By default the yearly option is chosen
2. It is clear that they get a discount when they pay yearly
3. Even though they are paying yearly they show the monthly prices

Bonus Tip: Sell the yearly plan right when they sign up. In most cases you will have lower conversions if you try to sell the yearly plan after they sign up for a monthly plan.

How Meetup.com Brings in the Cash with Personalized Email Marketing

meetup.com logoMeetup.com rocks at email marketing! In this blog post I’m going to show you how they make money with their emails. You should walk away from this post understanding the power of personalized location based email marketing and how it can increase user engagement.

Meetup User Life Cycle Comic Teaser

Meetup.com User Life Cycle Comic below

First the Basics:
What is Meetup?
So lets say you wanted to get a bunch of like-minded people to talk about books, web development, parenting, etc. You can go to Meetup.com and launch a “meetup”. You can also go directly to their site and search based on your interest and zip code for a meetup in your area.

How does Meetup.com make money?
Meetup.com charges the organizers a flat monthly fee ($19/mo) to run a “meetup”?
Note: that they don’t have a free plan or trial. Instead they explain why they need to charge and a picture of their entire team. They also try to incentivize you to sign up for 6 months rather than doing a month to month plan (this probably helps them increase retention since it takes 3-6 months to get your meetup really going).

Meetup.com's pricing pageWhy would anyone want to run a “meetup”?
Lots of reasons. But here are a few:
Meet like minded people, recruiting, seminars, business development, build a small community. Oh… also you can charge people to attend your meetup so this can turn into your own business.

Now the Good Stuff. How they do email marketing:
It is meetup.com’s financial incentive to make sure people attend meetups. Organizers are likely to keep their meetup going if people show up.

Step 1: Incentivize the “Organizer” to market the meetup using their existing community and location.
Meetup tells the organizer to email their contacts, post flyers up, and publish an ad on craigslist in their city. This helps meetup.com reach new users.

Step 2: Automatically assign email alerts to the user based on the meetup they joined. For example I joined a board-game meetup and it assigned a bunch of tags for me based on that meetup:

Meetup.com auto tagsThe beauty here is not only do they know I’m into board games but they know that I’m also located in San Francisco. Now, whenever a new board-game meetup is created in San Francisco I will get an email alert.

Step 3: Ask the new user to update their interests.
This is done in the app and each email alert they send out.

The more things meetup learns about you the better they will be able to fill up their new meetups by alerting users.

Step 4: When a new meetup is created alert the people that are interested in it. This will help organizers fill up their meetups and keep them as a happy paid customers.

meetup's email announcement for things you are interested inSo, What’s The Point?:
Community driven sites can increase retention by simply alerting customers via email when something of interest happens on your site. So ask your users what they are interested in and let them know when it happens.

Meetup's User Life Cycle - How they Keep Paying Customers Happycomic art work by jenniart. feel free to reblog or embed this comic

If you have a community driven site and need help with figuring out how to make this happen just let me know in the comments or here. I would be happy to help you out. I’m also constantly tweeting about web marketing so feel free to follow me.

Update 3/23/11: Awesome quote in the comments by Ish

Bottom line you are playing with fire with email alerts — make sure its clear to the user whats causing the alerts to happen and give them fine-grained tools to control them.”

Creating Cultural Change and How Orabrush is Doing it

Creating cultural change to sell products isn’t easy. But it has been done been done before. Deodorant, cigarette’s for women, and razors have all successfully created cultural change.

Not wearing deodorant is now considered gross. Hairy arm pits or legs are now considered gross. Cigarette companies targeted women by calling cigarette’s “freedom torches”. All three of those changes were backed by companies in order to sell more products.

There are four main things that go into Cultural Change:

  1. Doctors (or a bunch of smart people) must approve it vocally
  2. Successful people and people you know must be seen using it
  3. Must be a mass consumer product (sold in the hundreds of millions)
  4. Mainstream users would say the wrong thing to do is to not buy it

I believe Orabrush, an easy to use tongue scraper, is going to make cultural change happen. I predict in the next 5 years not scraping your tongue is going to be considered gross.

I learned about Orabrush yesterday because my twitter and facebook stream was filled with likes. Here is how they are making it happen:

#1 The person that invented the Orabrush is a doctor and they use “Dr. Bob” in all email communications and on their website whenever they need to establish credibility.

#2 They are getting everyone you know to tweet about it. If your friends are doing it then it is totally okay for you to get one as well. The power of social influence is a big one here. They strongly incentivize you to “follow” and “like” it. Here is a break down of how they are getting a ton of people to follow:

A. On their website they have a call to action asking if you want the Orabrush for free? Yes of course I want one for free.

B. They then show you a three step process on how to get the Orabrush for free
C. You click on the first step and they make it super easy for you to like and follow them.
D. They then make you subscribe to their YouTube page. I like how they add “(it’s free too)” since the word “Subscribe” might make people think otherwise.
E. The next step is to put in your shipping information and pay for shipping. At this point I was like “Man! I have to pay for shipping???”
F. I then clicked on “Why do I pay shipping?” and I saw this picture of the inventor. The $3.99 shipping fee didn’t seem so bad after I saw the hard working inventor behind it.

 

#3 In order to get mass adoption they are giving their product away for free. This works really well for Orabrush. Their product is pretty cheap but marketing it isn’t. In order to get a ton of people to buy the Orabrush they need to get a giant handful of influencers to start using their product.

 

#4 Checkout their very compelling video. They do a great job convincing you that in order to avoid bad breath you have to use the Orabrush. They show gross pictures and images or what your tongue looks like if you don’t scrape it.

 

Well done Orabrush! As a long time tongue cleaning fan I hope you win.

 

If you liked this post. You will also like one of my most popular blog posts: How to Win with an Online Store (hint: Don’t sell things available on Amazon)

2011 The Year of The Marketplace and How to Win

I got some quick advice from Gary Swart of ODesk and he said the best way to build a marketplace is to make sure the “buyer” and “seller” are the same person. If they aren’t the same person building a marketplace will be very costly and time consuming.

Lets take a look at eBay. Buyer and Seller are practically the same person. You only really need to market to one type of person and both sides of your marketplace grows.

Now for example lets look at Twitter. I joined twitter to just follow a few people. After a few weeks I started tweeting as well. Same thing happened with me on Quora. The “follower” became the “contributor”. You will see similar patterns with StackOverflow, Airbnb, StumbleUpon, and Fon.

If you take a look at ODesk or Etsy (both very successful companies) they both spend a lot of time and money on advertising (Search Engine Marketing in ODesk’s case and Grass Roots Community Building in Etsy’s case).

Conclusion: If you want to build a marketplace make sure you only have to market to one person.

This blog post was inspired by a tweet my buddy Noah posted a few days ago.

Grub With Us uses Meetup.com style marketing

Grubwith.us is an easy way to meet new people over dinner. My buddy David Kadavy keeps telling me about how awesome it is.

I also love the way they are marketing the concept. They now let you create your own meals and invite your friends. Pretty similar to meetup.com but instead focused around just meeting people over dinner. Currently the way they make sales is simply word of mouth and press. A customer has to learn about the site (either through press or friends), go to the site, and then sign up.

Now, in the new model they are trying out, they will be getting direct sales from people wanting to throw their own dinner parties. The value proposition for you to do this is pretty high, grubwith.us takes care of splitting the check and figuring out the best menu possible.

In the future I can see going to GrubWith.Us anytime I want to eat. Eating dinner with like minded people will be way more fun than eating alone. I’m really pumped about their new marketing initiative this will definitely grow their brand.