Skip to content

In 2020 We Should Elect A President Who Advocates For Entrepreneurs. Here’s Why

It’s no surprise that most of the venture capital activity in the US is happening in California.

According to a 2017 Brookings report, California is home to 51% of the nation’s venture capital. Basically, if you’re not in California, there’s a severe lack of opportunities for funding.

My guess is that this figure probably hasn’t changed much in the last two years. And while it’s wonderful that we have a robust venture capital ecosystem in Silicon Valley, we need this type of new business growth to happen across America.

The way I see it, we have one problem: we aren’t putting the right policies in place to drive entrepreneurial-based economic growth.

Right now, Americans should be advocating for the development of small and large-scale enterprises. As we find ourselves in the midst of an election season, it’s important we look to government officials that are focused on attracting more equity capital to the US.

Here’s why it’s essential we think about getting behind a president that will do the same:

Venture capital-backed startups generate legendary economic and employment growth.

Venture capitalists—and, most importantly, the startups that they back—are an essential driver of both innovation and economic opportunity for the United States.

According to Brookings, venture investment makes up only 0.2% of GDP, yet delivers an astonishing 21% of U.S. GDP in the form of VC-backed business revenues.

We’re also about to have a huge year for newly minted millionaires in Silicon Valley. Yahoo Finance recently reported we could have as many as 5,000 new millionaires after this year’s newest tech companies go public. That will far surpass the 1,000 who emerged in 2004 after companies like Google and Facebook went public.

And the money from these IPOs won’t just be sitting in savings accounts. Those new millionaires will be eagerly looking for new opportunities to invest their earnings.

IPOs are creating the next generation of startup entrepreneurs.

Like any other form of early-stage financing, VC investments are often unsuccessful. However, when venture-backed deals do pan out, they create an explosive growth dynamic, seeding the creation of additional local startups.

Tech IPOs don’t just create wealth. They also establish an incubator for launching more startups. That, in turn, generates a robust innovation ecosystem that works to fuel continued growth.

Right now, IPOs are on the rise. According to the Wall Street Journal, as of April 2019, there were 88 private US startups valued at over a billion dollars.

That means there is $88 billion in privately held companies that are primed and ready to go public in the next few years, with a median sale price of around $173 million. These new IPO companies are stronger and more mature than ever, and that’s an indicator that they will create more enduring value over time.

We need politicians to enact policies that will support entrepreneurship. 

When I tell people we’re experiencing a crisis in American entrepreneurship, they think I’m kidding. There’s so much talk about entrepreneurship today it can feel like everybody is starting their own business and achieving success.

But the reality is much different. Right now, the number of startups in the U.S. is at a record low. According to a recent article from Axios, as of May 2018, U.S. startups are in a surprising 13-year slump.

And this is a problem, because—as I’ve said—startups are huge drivers of economic growth.

On a macro level, we need entrepreneurs, startups, and growth-oriented businesses because they generate jobs and innovation. That type of economic boost doesn’t come from established corporations like GE, IBM, and Boeing.

On a micro level, entrepreneurship is our nation’s way up in the world. For so many, becoming a business owner is the only option because no one would bet on us.

Immigration policies are keeping entrepreneurs from achieving the American Dream.

To drive entrepreneurship, and to get more startups outside of Silicon Valley, we need to invite new businesspeople onto the playing field. And if Americans aren’t going to start companies, we need to attract immigrants who will.

Unfortunately, our current immigration laws are making it difficult for new talent to come to the U.S. Take, for example, Eric Yuan, founder of Zoom. It took him nine attempts to immigrate from China to the U.S.

Lucky for us, Yuan kept at it. Today, he’s a great example of the hundreds of immigrant entrepreneurs that have made it to billionaire status with a company—which has created over $20 billion in market capital—known for redefining communication technology as we know it.

Yuan isn’t the only example. Forbes recently reported that four out of the five biggest tech companies to IPO in 2019 have at least one immigrant in the founding team. Slack, Cloudstrike, Uber, and Zoom all relied on immigrant founders to get them to where they are today.

Bottom line: if immigrants are the ones creating new startups, we have to make it easy for them to do so.

Everyone needs to pay attention, not just politicians.

For so many people, entrepreneurship is a way out of a life of struggle.

If you’re a Stanford grad, and you came from a privileged background and you want to start a company and do some cool shit, that’s great. If you’re an immigrant and you come to this country to make a better life for you and your family and have some great ideas on how to make this country better, that’s also great. I say, “God bless you. God bless entrepreneurship. God bless America.”

But being an entrepreneur is about more than achieving the American Dream. It’s about driving our economy, and our country, into the future.

This election season, those of us who care about innovation and entrepreneurship should look to presidential candidates who will focus on attracting more venture-backed startups. It’s also important we stand behind politicians backing policies that make it easier to be an immigrant entrepreneur. When we do, there is no limit to the economic growth we can achieve together.
To listen to the full podcast click here to Follow Your Different.

Is Your 2020 Marketing Plan Radical Enough?

Is Your 2020 Marketing Plan Radical Enough?

Have you noticed?

Most marketers play safe.

As a result, most marketing plans are predictable, uncreative and uninspired.

The longer I work in the entrepreneurial marketing world, the more I think that, if it’s legendary, it’s radical.

So I’d like to propose some ways of thinking, about creating, reviewing and updating marketing plans.

So here are three questions:

1. Will this plan enable us to design and dominate a giant category that matters?

I think that’s the job of the CEO & CMO.

And frankly, that’s the job of the marketing organization, the job of the board, and the entire executive team.

What we learned in writing my first book Play Bigger is that, at least in the tech space, one company, earns 2/3rds of the economics in the entire category. 76% to be exact.

And so, as you are working on plans, I think a powerful lens to use is the question, “will this plan and the sub-components of it, enable us to design and dominate a giant market category?”

2) Do we have a radical way to evangelize our category POV?

Legendary leaders market the category NOT the brand.

We live in the world of marketing where all we hear is: brand, brand, brand and the thing that many people don’t get is: categories make brands not the other way around.

Categories are about customers and brands are about companies.

So legendary marketers, market the category with a provocative point of view.

Things to think about along these lines:

Are you getting your CEO out there? I believe The E in CEO stands for the evangelist, and your CEO needs to be a missionary.

She needs to be out there, evangelizing.

Is she speaking? On podcasts? Does she have a high profile in the industry?

Is she out in the world delivering the point of view? Can you put her on TV?

Ask, “are we developing a big footprint for our CEO?” There’s no more powerful evangelist in your company, whether it’s a small business, the owner herself, or a major publicly-traded company, the CEO must be your #1 evangelist.

If you’re the CEO, at least 1/3 of your job is to be publicly facing.

Other questions to consider:

– What’s your owned media strategy? (I’m amazed more companies don’t understand that they have to become media companies and create their own content)

– What high-impact PR are you doing?

– When you get PR results, are you multiplying it?

– Does your website communicate a provocative POV?

– Are you constantly testing how to execute your POV?

– Do you experiment on new headlines, new offers, new copy? On new and different platforms?

The bottom line is: you want to get people in the category talking about you.

You want to drive word of mouth. You know you are winning when prospects and customers start parroting back your point of view.

And most importantly, as you evangelize your category POV, you want to create a sense of inevitability with your target customers.

This perception will help make your new or different way of doing things become the defacto standard.

3) What’s a radical way to generate leads and drive revenue?

Legendary CEOs and CMOs design the category for the mid-long term and drive revenue in the “ASAP, right now” term.

Questions to consider:

– Are you dominating digitally?

– Are you making a radical offer to gain attention?

– Are you doing what my friend John Bielenberg, the legendary designer calls, “thinking wrong”?

As you look at any of your marketing executions, particularly in the area of driving revenue, ask yourself: what does everybody do here?

What’s the opposite of that? That’s thinking wrong and a great technique to start thinking in non-traditional ways.

Most legendary marketing is radical in some way. And most marketing plans are not.

So I encourage you, be different.

Get radical with your 2020 marketing,

 

P.S.
For more, you might love this episode.

Real Success Vs. Fake Success

Real Success Vs. Fake Success

Many people think “making it” is about money.

Now, money is awesome. And financial freedom is a great goal and a life-changing achievement.

But for me, “making it” is not about money.

I knew I had truly “made it” when I realized that the journey is the destination.

That is to say, I “made it” when I realized that life is a thing you can proactively design and then build out your design. And if you’re super lucky, you get to co-design and co-build the life of your choosing with people you love.

Life feels very different when you wake up every day:

  1. In the place you want to be
  2. doing things you truly want to do
  3. with people you really love
  4. making the difference you want to make
  5. and having a ton of fun.

And the big “aha!” is that we can all do this.

“Making it” is not about a particular financial outcome. It’s a way of being in life. We all have the power to design our lives, careers, and businesses.

When I started co-creating my life with people I love, that’s when I knew I had “made it.”

The Difference Between a First Mover and a Category Creator

MANCHUL KIM/GETTY IMAGES

by: Eddie Yoon, Christopher Lochhead, and Nicolas Cole

First published by the Harvard Business Review on 11/21/19.

Last year, when SAP spent $8 billion to acquire the online research firm Qualtrics, a price that was roughly 14 times the company’s projected 2019 sales, SAP’s CEO defended the deal by citing a statistic. Companies that create a new category typically capture 76% of the total category market capitalization, he said. Since Qualtrics created the category in which it played, the CEO said, this deal would payoff despite the steep premium.

The statistic the CEO cited came from a book that one of us (Christopher) co-authored. Since we have been consulting and writing about the concept of category creation for nearly a decade, we’re pleased to see CEOs of multinationals showing they are paying attention to the topic.

Sadly, we’ve also noticed a commensurate rise in the misconceptions surrounding category creation. The most common error is conflating category creation with first-mover advantage. The incorrect belief is that category creation is about being first to market with a new product or service. Sometimes this is the case — but often it is not.

Creating a new category is about educating the market about not only new solutions but often new problems that are not top of mind. This kind of education can’t be done merely with a great product or service or traditional marketing. This often needs to be experienced, which requires a breakthrough in the business model as well.

The emphasis should be on creating the first high functioning flywheel, which is the combination of 1) a radical product/service innovation, combined with 2) a breakthrough business model innovation, and finally greased by 3) a breakthrough big data about future category demand.

Today data is as powerful as cash. For example, Netflix knows more about their customers’ video consumption than Disney does. Netflix has a flywheel that spins both revenue and data that is almost impossible to match. Companies that achieve this result find their flywheels moving faster and more productively until they can’t be caught even by copycats.

This is supported by our analysis of the Fortune 100 fastest-growing companies over the last decade. Of the roughly 600 unique companies across the 10 years that we analyzed, companies with the flywheel described above accounted for only 22% of the companies but drove 52% of the revenue growth and 72% of the market capitalization growth.

We discovered that Wall Street has rewarded Category Queens and Kings (which we define as companies that achieve this three-part flywheel) with $4.82 of market capitalization for every $1 of revenue, making category designers with a flywheel advantage five times more valuable than the typical company.

Consider three companies—Tesla, Hydrafacial, and Axon—none of whom were first to market in their category. However, each was the first to build a high functioning flywheel of breakthrough products, business models, and data.

Tesla is known as a leading electric car company today, but the very first electric cars were created by Robert Anderson in 1832. It was actually Ford’s Model T that disrupted electric cars.

Tesla’s breakthrough cars get most of the attention, but Tesla has created a flywheel of hardware, software, and services. Tesla might very well be the Tiffany of consumer software, given that it charges now $7,000 for its full self-driving software, which now totals $500 million in deferred revenue. Tesla’s vertical integration into retail and services gives it direct access to consumers, who might also be interested in its newly updated version of solar panels. It has successfully launched insurance in California, by leveraging its proprietary data, which is likely just one of several future steps into financial services. USAA is a highly touted and specialized (military) financial services company that has $155 billion in assets and $30 billion of revenue and $2.5 billion of profit on a consumer installed base of only 12.4 million members. USAA members rave about USAA in a similar fashion to Tesla’s consumers. This flywheel of hardware, software, retail, and services makes it challenging to benchmark and value but it is clearly inaccurate to value it like merely a car company.

Hydrafacial is a similarly challenging company to benchmark. It provides next-generation facials delivered by expert aestheticians and the latest medical technology. In 30 minutes, it exfoliates, extracts, and hydrates your face in a way that provides it an immediate glow that others notice and that lasts for days and even weeks. It stands out in the $150 billion-dollar, high-end, skin care market and the $115 billion spa market. And while its core delivery system technology and serums generate well over $100 million in revenue growing at 60% CAGR, Hydrafacial’s business model sets it apart. It runs training centers to educate aestheticians. It has partnered with Sephora, to deliver a custom version of its core called Perk. Hydrafacial has proprietary data that enables it to know where demand is growing the fastest at the zip code level and where its super consumers—who also heavily spend across gyms, apparel and personal care—are densely clustered as it sets up key partnerships. (Disclosure: One of us, Eddie, has consulted with Hydrafacial.)

Axon may not be well known, but it’s breakthrough product—the TASER—is well known. This is the device used by law enforcement that shoots electrified wires to stun and disable a suspect. Axon’s mission is to make bullets obsolete.

The original category was created way back in 1974 by Jack Cover, a former NASA researcher, and was sold into law enforcement markets, but never realized its full potential. In 1998 Axon created a breakthrough product, the TASER M26. They hired a former Marine named Hans Marrero to demonstrate the product and personally sell it. By 2004, Axon had $60 million in revenue, but it wasn’t until they added body camera business and software as a service (SaaS) business to store and synthesize the footage did the flywheel really get going. This is a controversial category: Stun guns have been found to cause civilian deaths, and law enforcement body cameras provide visual evidence in cases that can become a societal flashpoint. From a strategy standpoint, however, Axon was no longer a one-trick pony as a TASER manufacturer but created the category of law enforcement technologies.

Today Axon cameras own more than 80% of the market share among police departments. This has enabled them to grow revenues from $268 million to $420 million from 2016 to 2018, at a 15% EBIDTA margin. Axon has a $3.5 billion-dollar valuation—7x revenue and over 150x EBITDA.

Could someone come up with a better electric car, facial technology, or stun gun? Sure, but it won’t matter unless they can replicate or create a superior flywheel. Of course, but the question is can they do all three—breakthrough product innovation and breakthrough business model innovation and breakthrough data about the future of the category—all at the same time? It’s highly unlikely. These three Category Queens will continue to dominate their categories—and expand into new ones—in a way that makes their lead insurmountable, regardless of whether or not they were the very first mover.

Bio:

Eddie Yoon is the founder of Eddie Would Grow, a think tank and advisory firm on growth strategy and an advisor to VC and PE backed, high growth companies. His book, Superconsumers, was published by HBR Press. Follow him on Twitter @eddiewouldgrow.


Christopher Lochhead is co-author of  Niche Down and Play Bigger, and host of the Follow Your Different and Lochhead on Marketing podcasts. He has been an adviser to over 50 venture-backed tech companies and a former chief marketing officer at three companies public tech firms. Follow him on Twitter @lochhead.


Nicolas Cole is the founder of Digital Press, a writing agency that turns founders, executives, and entrepreneurs into  thought leaders. His writing has appeared in TIME, Forbes, Fortune, Business Insider, CNBC, The Chicago Tribune.

Gold Medalist Kerri Walsh Jennings On How Winning Led To Obtaining A Wealth Of Life Advice

Gold Medalist Kerri Walsh Jennings On How Winning Led To Obtaining A Wealth Of Life Advice

What makes Kerri Walsh Jennings remarkable?

For starters, she’s the Muhammad Ali of beach volleyball — the undisputed greatest in the game. She owns three Olympic gold medals. 133 career victories. And she’s a two-time Sportswoman of the Year Award recipient.

I was pretty pumped to chat with Kerri about her career — and more specifically, her philosophy on drive and inspiration. On the podcast, she shared why being an inspired person and living an inspired life mean so much to her.

In this article, I list the most insightful takeaways from that incredible conversation. So get out your notepads, because this inspirational woman and athlete has a wealth of valuable life advice to share with you.

Discipline liberates and the consistency feels great.

To Kerri, discipline is “a beautiful word.”

As former Navy SEAL and famed author Jocko Willink says, “Discipline equals freedom.” It’s also the title of his best-selling book — and is a life philosophy Kerri fully subscribes to. Personally, she defines discipline as “showing up and doing what it takes on the daily.” She says having discipline in her life “allows me to breathe, it allows me to accomplish, and it allows me the space to maneuver in.”

To Kerri, discipline is mindfulness, awareness, and fortitude. Over the years, she has learned to deeply think about everything she consumes — from social media to books to food. She’s become more sensitive with age (a good thing) and recognizes that everything she interacts with affects her in some big or small way, both mentally and emotionally. She remembers a time in her life when she didn’t pay enough attention to her influences and is happy to have grown up in that sense: to have become more disciplined.

As a gold medalist, Kerri believes love for winning always wins.

And for Kerri, that love is undying.

Most recently, she and Brooke Sweat took home third place at an FIVB World Tour 3-star tournament in Sydney, Australia. 10 years ago, she would have considered that a failure. But today, she puts the result in perspective by acknowledging and appreciating the wins it took to place at all.

Above all, Kerri attributes her success to her love and desire to win. She views winning as an “amazing, beautiful fuel” that keeps her going. “Winning is a habit that gets into your psyche and drives you crazy,” she said. “I love winning more than I hate losing.”

And, above all, she attributes her ability to win to her mental strength — “to compete at the highest level, you have to have your brain trained,” she said. What separates elite athletes from great athletes is less about skill and more about mental fortitude during crunch time, according to Kerri.

Kerri liked to call crunch time “tight moments” — until recently. During a session with Michael Gervais, the host of “Finding Mastery,” a podcast that “explores how the best in the world master their craft,” Kerri discovered a way to better frame those high-pressure situations.

When Gervais noticed Kerri reference a “tight moment,” he interrupted her and said, “Kerri, there are no tight moments. It’s just another moment. You’re making it tight. Let’s reframe it; let’s call it a competitive moment.” She liked the idea of “competitive moments” a lot better. Especially once she realized that “all I’m there to do is be competitive and show up.”

When Kerri shows up, she makes sure she’s done what it takes to feels right mentally, because she knows that’s the best way to execute during competitive moments — and because, more than anything else, she loves winning.

How she came to feel right at home as an Olympic gold medalist.

On the biggest stage in the world, of all places, is where Kerri feels most at home.

“I’m just an athlete playing a game I’ve played since I was 10 years old. At the Olympics, it’s so fun.” Of course, the noise, media and sheer weight of the Olympics can certainly distract an athlete from truly enjoy themselves — but only if they allow it. Kerri makes sure she always has fun at the Olympics by “creating a bubble” around herself. This mental bubble blocks out noise and helps her feel safe, focused, and poised to compete well — and helps her have fun while competing.

Why her company is “her baby.”

Kerri knows how good it feels to hang a gold model around her neck after a hard-fought win on the court. Now, she craves a similarly fulfilling feeling from entrepreneurial success.

“The business world is really exciting. I feel like I’m getting a master’s degree every single day, learning so much. It’s a hell of a world,” she said. Last year, she launched p1440, a technology and event platform aiming to “redefine and modernize beach volleyball.” The company’s four-pillar offerings include competition, health and wellness, personal development, and entertainment.

Kerri frequents major events to market the company, where she enjoys speaking passionately about the bright future she envisions for the sport she loves. “I don’t want to be just a canvas, I want to be a mouthpiece,” she said.

A few things Kerri has learned as an entrepreneur:

  • Get your hands in the mud, in the sand whenever possible.
  • Don’t assume anything. Don’t presume to know what others are thinking.
  • When working on projects, play it step-by-step.
  • Like in sports, your team and attitude are everything.
  • When facing issues, be nimble and ready to adjust.
  • At any company, having open, honest communication and a culture that holds people accountable is imperative.
  • Like with sports, there’s a lot out of your control in a business. That’s tough for Type A personalities like Kerri. All you can do is focus 100% on the things you can control.
  • Different people have different visions. Not every potential partner will want to work with you.

On an endnote, Kerri shared that she believes strongly in the tie between inspiration and motivation, but also in the distinct differences between the two. “I’m motivated by the money, I’m motivated by the glory, I’m motivated by these things that will come to me as a result of this on the outside. But to be inspired to me is a touch of God. It’s something that fuels your heart and your purpose in life and that’s hard to F with.”

Screw Personal Branding: Why Authenticity Is The Best Thing You Can Aspire To In Business

People don’t want to be sold on an idea — they want to learn from a real person through a natural conversation.

We’re constantly bombarded with images, taglines, and “sponsored posts” that show us a perfect version of reality. Of course, when you’re trying to sell a product or service you want to show only the best side — any business owner worth their salt understands that. But after decades online, audience expectations are shifting.

Having a natural conversation with someone instead of slamming down a glossy advertisement works on several levels — it makes space to explain the product better, makes the customer feel more comfortable, keeps things natural, etc. But most importantly, conversational marketing (as it’s sometimes called) is authentic.

And that’s what audiences want — authenticity.

I was stoked to have David Cancel on my podcast to talk about conversational marketing, which is both the subject and title of his latest book. Cancel is a serial entrepreneur, angel investor/advisor and now founder & CEO of Drift, and he’s also a fellow podcaster for a series I’m obsessed with, Seeking Wisdom. In his wildly popular book Conversational Marketing, Cancel digs into why messaging systems are the best way to reach new clients and why using intelligent chatbots actually creates a more human sales experience.

Cancel brought his expertise while simultaneously giving a master class on entrepreneurship to our episode together, where we talked about why people want a more authentic touch in marketing and how crazy it is to see so many people “Following Their Different.”

Ignore Influencers: Customers Want A Pro’s Opinion

First and foremost, I have to know — what is going on that people want to be an influencer?

It seems like every 23-year-old on Instagram takes a few Tony Robbins courses and all of a sudden thinks they’re an expert on personal branding. They’ll sell you teas, vitamins, workout plans, purses, clothes — the list is endless. And you’re supposed to listen to them, why?

“I would think first you’d have to do something to be an influencer,” says Cancel. He points out the people who are actually doing the hard work aren’t the ones posting about it every day on social media. And even the people who claim series milestones — Ty Lopez, Gary V, etc. — don’t offer anything useful in their podcasts or social media presences. They just repeat the same “hustle, hustle, hustle, follow your passion” nonsense.

I call them “pornstar” entrepreneurs.

But their hold on the internet is going to wear out. Cancel says he can see a progression in which people are moving toward a different mindset. One in which they want to know the person giving them advice is the same person who’s already put in decades of hard work.

Hopefully, this will spell death to the Instagram influencer craze and we can go back to listening to people who actually know what they’re talking about.

The “Old Advice” Is Bad Advice

The world tells us we have to play the game, we have to fit in, we have to do what’s expected. That usually means: go to school, get a degree, get a job, work up the ladder, and then retire.

But that’s not the path that builds groundbreaking work.

When I was writing Niche Down: How To Become Legendary By Being Different, the biggest response I got was people saying to me, “Wow, I can be myself and find a way to connect my difference to the world in a way that matters.” Readers loved seeing that they could build a business around what made them stand out.

Cancel didn’t follow a conventional path either, and he’s built incredible companies with a great amount of success — not everyone can say their company was acquired by a unicorn. He believes people breaking away from the norm and following their own dreams is the way the world is headed. “People are realizing all that stuff [we were told] doesn’t make sense anymore,” he says. “That’s for a world that no longer exists, right? That’s not the advice I give to my kids.”

Cancel says he tells his own kids to embrace their differences, to apply them to make the world a better place. We should all be so lucky to hear that from our folks.

People Want Authenticity

It’s okay to be inspired by someone else’s work, but copying it exactly isn’t going to help you build your empire.

Think about tribute bands — bands that cover songs from a popular group, but cover them exactly, including the sound and style as they were originally performed. Those bands may sound like Led Zeppelin, but they never ascend to the same rock-god level. Because when Zeppelin did it, they were being themselves. When the tribute band does it, they’re copying someone else.

And no one responds to a copy like they do the original.

When Cancel was growing up, being different meant getting beat up and teased at school. And now, he says, it seems that people are racing toward embracing their real selves, no matter how much that makes them stand apart from the pack. Because authenticity is what works — it’s what brings people in and keeps them. They want something real and to know they’re investing in a person or a service that isn’t going to fake them out.

When you get down to it, authenticity builds trust — and there’s no stronger way to keep people coming back to your business, podcast, or website than if they know you’re the real deal.

How To Strike Gold By Implementing Legendary Marketing

There’s no reason to be like everyone else when you have the chance to be legendary.

I see this all the time in the marketing world. Everyone does the same things — they all have social media and they’re all sending you an email at 2:07 pm on a Tuesday. So why would you do the same thing as everyone else if you want your brand to stand out?

I always love to talk with my favorite, stand-out marketing masters when I host my podcast. Seeing people really be brave and dare to go against what everyone else around them is doing deeply inspires me — and my listeners too. It’s a relief to see how many people are “Following Their Different” these days — like Dave Gerhardt.

Gerhardt is the head of marketing for Drift, a conversational marketing platform. He joined me on the podcast after his fellow Drift rockstar, David Cancel. He and Cancel do one of my absolute favorite podcasts, called Seeking Wisdom, and they’re co-authors of the number one, brand new bestselling book called Conversational Marketing: How The World’s Fastest Growing Companies Use Chat Bots to Generate Leads.

Gerhardt talked with me about how he applied huge marketing strategies to the launch of their book. Tactics like the multiplier effect, making your brand undeniable, and, my personal favorite, legendary marketing — you know, the kind that makes your competitors have emergency board meetings.

If you’re looking for some serious gold, read on.

1. Sell high, sell low, sell everywhere to everyone — including at airport newsstands.

Everything Cancel and Gerhardt do at Drift is about educating people on conversational marketing — what it is, what it does, why it matters.

“Hopefully,” says Gerhardt. “If we’re the ones teaching you about it, then when you’re ready to buy, you’re going to come to us.”

Part of their strategy in getting their “educational materials” out in the world is making them as accessible as possible. One of their biggest wins on that front has been their book Conversational Marketing — which really does seem to be everywhere in the business world. Of course, they’ve promoted the hell out of it, offering it at a discount directly from their website, talking about it on podcasts, etc.

But they also took a surprising new angle in getting their ideas in front of people that matter.

“The book is gonna be at every airport newsstand in the world for three months, starting soon,” says Gerhardt. “I want the CEO getting off the plane to be like, ‘I’ve heard about conversational marketing. Oh shit, there’s a book on it at the airport? Okay, I better go check it out.’”

The idea then is the hypothetical CEO will read it, send it to the marketing team, and they’ll assign the topic to someone to become the expert.

And this strategy is working. The book is at #26 on Amazon’s business sales list, beating out thousands of other titles.

2. Nothing draws a crowd like a crowd.

Of course, Gerhardt doesn’t just want to stop with marketing to CEOs.

“A huge part of our strategy for marketing this book is to get it in the hands of as many people as possible,” says Gerhardt. Which might sound like a “duh” moment, but hear him out. “We’ve done a lot of things to basically encourage people to tweet out and post pictures of the book because I want people to be like, ‘Goddamn it, all I do is see this freaking book. Okay, I gotta go buy it. Everybody’s reading it.’”

Gerhardt refers to this as tapping into the “Keeping up with the Joneses mindset.” People often see their competitors doing one thing and immediately think, “Okay, I have to do that now.” That’s exactly the action Gerhardt wants to inspire in people when it comes to Conversational Marketing.

And again, Gerhardt aimed at every possible set of ears and eyes he could find when promoting the book. He went on every single podcast he could wrangle during those busy few months.

“I don’t care whether somebody has an audience of 100 people or 100,000 people,” says Gerhardt. “Because if you have a podcast about marketing and 100 people listen to it, damn, those 100 people…love marketing. That’s a niche inside of a niche.”

3. When everyone is going left, go right.

Remember: to stand out, you have to be willing to go against the crowd.

Just because all your fellow marketers are doing things one way, does not mean that’s the only way of working. One of the things Gerhardt makes sure to focus on is how to swim against the current or find the back doors of entry that no one else has thought to use. Remember the emails at 2:07 pm on a Tuesday?

“99% of marketers are going to send an email at that time,” says Gerhardt. “Whereas I want to be the guy that’s sending you an email Saturday night because nobody’s marketing team is working on a Saturday night.”

And that’s why I love talking with guys like Gerhardt and Cancel — they’re always thinking of ways to split the crowd.

Because marketing today is like war.

It’s a war for attention.

Which means you can’t be afraid to take chances and do things outside your comfort zone. You have to always be asking yourself, “What chance will I take next?” And yeah, you might fail. But that’s the risk you take.

In order to become a legend, you have to risk being a loser.

Calling All Copycats: Why Your Business Needs Competition To Thrive

If you asked the audience to make a list of things that are sexy, I’d bet you big money that you wouldn’t find garbage on it.

Garbage is not sexy. We flush it down the toilet, put it in the trash can, ship if off to somewhere we don’t have to think about it.

But Tom Szaky, the CEO and founder of TerraCycle, sees waste differently. His first legendary product was a worm-poop fertilizer for plant food, packaged in used beverage bottles. But that was just the beginning for Szaky. He realized that to become truly legendary, he needed to consider a bigger problem: how humans think about waste.

Keep track of your competition with Crunchbase Pro – try it free.

By seeking to eliminate the very idea of waste, he brought innovation to the historically low-innovation garbage industry. In short, he created a category that didn’t previously exist. Now TerraCycle is a $30 million company and the world is taking notice—huge companies like Waste Management are copying his ideas.

Category designers like TerraCycle always attract competitors, and every successful niche-down attracts imitators. But the competition isn’t a bad thing. It’s actually good (no, a necessary) development—for yourself, your company, and your industry.

Let’s unpack why your business actually thrives on competition.

Competition validates that the problem you solve is important. 

Once you’ve niched down and identified the problem you want to solve, it’s up to the market to tell you whether that problem actually needs solving.

TerraCycle, thriving in competition

Photo source: TerraCycle: Eliminating the idea of waste by recycling everything (GreenBiz)

So when competitors emerge, it’s a sign that you’re on the right track. The problem you’re solving is so valuable that other companies want to try to solve it, too.

They want to get in on the action and try to make a killing.

But because you designed the category, every decision your competitors make is based on your original idea and what you’ve already done in the space.

They’re already several steps behind.

When customers begin to say “yes” to your solution, the industry surrounding your niche also affirms the value of your solution by offering their own solutions.

And as a category designer, that’s a sweet place to be in.

Competition allows the market to take off.

All legendary entrepreneurs are also evangelists.

They broadcast their big idea to the world, educating customers on why they need their solution. If the problem they’re confronting is really novel (read: legendary), consumers may not even have considered it a problem.

This is where competition comes in.

When you set out to convert the world to your way of thinking about a new product or service, people will especially take notice when an ecosystem forms around the problem you’re solving.

The more they hear about a problem, the more urgently they need to fix it.

And as competitors enter the market, corporate sponsors may express interest, new avenues for market research will open up, more capital enters your category.

And your customers become evangelists themselves, posting positive reviews of your product and spreading the word about why you’re better than your competitors.

While these loyal customers create trust for your company, the presence of competition allows the market itself to flourish.

Competition teaches you how to direct your business. 

By studying how your competitors are doing things, you can position yourself as not just better than them, but different.

Being different means you don’t have to fight for market share with anyone, always trying to outdo them. You’re not keeping up with the Joneses, you’re in a league of your own.

Competition also opens your eyes to ways you can improve your own offerings.

In Tom’s case, he didn’t want his company to be a one-product wonder. Instead, he wanted the organization to address a much larger category, hence the pivot from worm-poop fertilizer to recycling.

And it was tough: TerraCycle had to close a factory and lay off workers in order to invest in that change. But it takes courage to be legendary.

Now, TerraCycle’s business includes a “sponsored waste” service that helps consumer brand giants like Unilever and Procter & Gamble collect hard-to-recycle packaging and an R&D group dedicated to figuring out how to repurpose stuff that is considered “non-recyclable.” Labels change, and Tom inspired big companies to rethink things that were once considered “nonrecyclable.”

Competition spurs growth in your industry and forces you to be better. After all, you simply can’t be legendary without attracting – and competing with – rivals.

How Jobs Will Look

How Jobs Will Look

The U.S. is in the middle of a digital transformation. Artificial intelligence and technology breakthroughs are changing our world—for better or worse.

In this fast-paced landscape, some businesses will thrive, and some will fail.

One of the most eye-opening conversations I’ve had on this subject was with billionaire entrepreneur Tom Siebel. In 2006, Tom sold his company, Siebel Systems, to Oracle for just under $6 billion. Today, he’s the founder and CEO of C3.ai, a new software platform focused on digital transformation.

He recently joined me on my Follow Your Different podcast to talk about his book, Digital Transformation, and why it’s more critical than ever before for CEOs and senior leaders to have a detailed understanding of new technology.

Here’s what I learned from Tom about surviving a digital transformation:

Corporate culture should empower employees to grow alongside a digital transformation.

Part of what makes C3.ai – Enterprise AI so successful is its ability to attract and retain high-performing employees.

Tom attributes much of this success to his company’s focus on continuing education. At C3.ai – Enterprise AI, the corporate culture reinforces the belief that learning is essential to staying relevant in the fast-paced world of AI.

Employees are encouraged to complete a specialty continuing education curriculum in Coursera that focuses on industrial AI technology. When they do, each is given a bonus that varies between $1,500 and $2,500. To date, Tom estimates he’s doled out $1 million in employee payouts.

The real bonus: employees that are better equipped to perform their job, serve customers, and apply their skills to advance their careers.

For Tom, survival comes down to one important principle: “In order to stay on top, you need to be continuously evolving.”

Every company needs to adapt to new tech or face extinction.

Tom sees our digital transformation as the business-world equivalent of evolutionary biology. Fundamentally, it’s the idea that enterprising businesses must find ways to adapt to the storm of new technology in order to survive.

Research shows that since 2000, 52 percent of companies in the Fortune 500 have either gone bankrupt, been acquired, or ceased to exist as a result of disruptive technologies. Today, the collision of the physical and digital worlds has affected every aspect of our society.

Take Amazon. It’s AI-based platform—an elastic cloud business model—has made it a retailing superpower. Last year, more than 8,000 outlets closed in the U.S. as consumers moved to the digital marketplace.

Tom told me that most retail outlets will eventually be replaced by Amazon.

“This is the business equivalent of a meteor hitting the Yucatan and knocking out 86% of the world’s dinosaur population.”

Moving forward, it’s important that both companies and individuals learn to adapt. Some will use technological evolution to thrive in the new economy and survive. Those who stay the same will find themselves becoming increasingly irrelevant—and soon, extinct.

Governments and the private sector need to work together to keep citizens safe.

Some will argue the Industrial Revolution was a positive moment in our nation’s history. It increased the production of food and goods. It provided safer, warmer living conditions. It expanded transportation.

At the same time, there were also significant deleterious events that came out of the Industrial Revolution. We can draw a line between the invention of the steam engine to Marxism, child labor, World War I, and World War II.

Now, consider the post-digital transformation era. Tom sees the same outcome with IoT devices, the computer systems we use to control everything from the flow of capital and transportation to our energy and power grids.

“Together, they dramatically increase the surface area available for cyberattacks,” he told me.

Countries like Russia, Iran, and China are currently investing billions of dollars in AI. Armed with that power, they’re capable of weaponizing those systems in an act of technological warfare. Consider what would happen if one of them shut down a U.S. cities power grid. Millions would lose access to things like food, water, and public safety. It would be like Mad Max meets Peoria.

It’s fucking bullshit that companies like Google won’t sell technology to the government, and instead do business with China. Tom points out that allowing AI to be used for ethically questionable activities is an important consideration business leaders need to be aware of, especially as it relates to our nation’s safety and privacy.

That’s why, at C3.ai – Enterprise AI, Tom is working to bring AI to our commercial and industrial defense and intelligence systems. His hope is that by helping the U.S. government harness this technology, we’ll be better prepared to meet the technological issues of the future.

“To arm ourselves, we need to look at the digital transformation not just as an entrepreneurial opportunity,” he adds, “but also a way to keep us safe while protecting our civil liberties.”

That’s one step in the right direction. The most critical step, however, is the one we all need to take: arming ourselves with the knowledge to survive the digital transformation.

 

Today, every top-level CEO needs to be technologically savvy. Moving forward, businesses will differentiate themselves by using technology to create new strategies with the disruptive power to wipe out entire markets—or even opposing nations.

As new and emerging technological advancements become a fundamental part of business language, leaders and managers need to be able to leverage these new platforms to gain a competitive advantage, both at home and in the IT war abroad. “Those that don’t develop a working knowledge of new technology will not only become ineffective,” says Tom, “they also won’t be able to function in tomorrow’s business landscape.”

We all have a choice: we can learn the technical language of today and use it to succeed at our jobs while better serving our companies, employees, shareholders, and customers. If we don’t, we’ll become more than obsolete. We’ll become extinct.

To listen to the full podcast click here to Follow Your Different