Book Review-Email Marketing Demystified: Build a Massive Mailing List, Write Copy that Converts and Generate More Sales

It’s been several years ago now. I had a technology client that was a marketing firm. In a conversation with the president, we were talking about getting responses to an advertising campaign. He said to me, “I can guarantee you a number of responses, I just can’t guarantee you it will be cost effective.” That stuck with me as a fundamental truth of marketing. I had always thought that you might not get enough responses, but, in truth, if you’re willing to spend enough money, you can always generate the responses – it’s a matter of whether that will be cost effective or not.

That’s why people turn to email marketing. In general, it’s cost effective. The Direct Marketing Association says that, on average, for every $1 spent in email marketing, the business gets $43 in sales. That’s a huge return. However, how do you get those kinds of returns? That’s what Email Marketing Demystified: Build a Massive Mailing List, Write Copy that Converts, and Generate More Sales seeks to help you do.

The Point of It All

Before getting into the details of the how, it’s important to focus on the why. (See Start with Why.) You do email marketing to market something – but what is that something? In some cases, it can be consulting services. In others, it’s product sales. However, product sales to whom, and what is the product being sold?

For me, we sell The SharePoint Shepherd’s Guide for End Users to corporate customers, who buy it for everyone in their organization. We sell courses to individual corporate buyers who are looking to learn more about SharePoint themselves. We want these products in the hands of more people.

One of the insights from Email Marketing Demystified is that if you continue to pitch the same products to the same audiences, you’ll see diminishing returns. The business question becomes how much time do you spend marketing, and how much time do you spend creating new products? There is – of course – no answer to this question. You can build lists and write great copy, but if you’re not selling products, eventually the whole system will fly apart.

Copy Writing

The heart of getting conversions on your emails – moving someone from reading to responding – is copywriting. On the surface, this is an easy task. Everyone learned to write in grade school. However, the subtle arts of copywriting aren’t as easy as they seem. The difference between a 1% and a 2% conversion rate aren’t impressive until you realize that this doubled your effectiveness – or can move you from one hundred purchases to two hundred.

Simple tips like keeping your headlines and subjects to five to ten words that will fit on a single line of text flow throughout the book. The copy on a button can dramatically change how many people click and respond. (“Sign Up Now (Free)” is the recommended copy for a button.)

List Building

In the category of list building, Email Marketing Demystified isn’t silent – but it’s definitely not verbose. Effectively you’re directed to Traction and to DigitalMarketer.com for finding ways to build your list. There is the tongue in cheek response that you just build great content for years and years until it starts to work. Of course, no one wants to hear this – but to some extent, it’s true. The Halo Effect focuses us on the truth that the world is filled with probabilities, not certainties. You can increase your chances – the probability – that your list will grow, but there’s no certainty in its growth.

A good friend of mine who teaches marketing once told me that all marketing is “throwing stuff against the wall to see if it sticks.” I can tell you that in my experience this is true. There are some things that I thought were going to be great for list building that did nothing. Other things that I didn’t expect much from have been very useful to me.

In short, if you’re looking for solid techniques for actually building your list, you may need to look elsewhere.

SPAM Shift

Before completely leaving the topic of list building, I should say that there has been a shift from purchased lists and mass mailings to smaller numbers of people who are more actively engaged in your content. While it’s still a valid list building technique to get someone else to pitch your offer to their list, rarely does acquiring a list work these days. Lists todays have to be built.

The tools that exist to help users protect themselves from SPAM have becoming increasingly more effective, and this may have something to do with the shift. Major mail systems are prioritizing the emails that you interact with, and, as a result, the massive number of emails that are being sent – and delivered – aren’t being seen by the users.

List building isn’t like the old days, where you could build your list by acquiring it.

Frequency and Timing

One of the considerations when you have a list is how frequently you should be emailing your list. The guidelines are interesting… No more than once a day, and not less than once a week. Of course, if you look at books like Launch, they’ll tell you to send reminders on your launch day so you may end up above the once a day rule – but at least it’s not every day.

My own results have been mixed. I believe that, between product launches, there is a place on your refresh list for emails to be sent out once a month. Basically, these are people who are interested in you and what you’re doing, but there’s nothing that they need to buy right now. You don’t want to inundate them – but at the same time you don’t want them to forget you. I still send a monthly newsletter to people who are interested.

In addition to that, I send people email campaigns when they want them. We offer 30 Office Tips (delivered every other weekday) and a set of SharePoint Secrets that are delivered every three days. It’s possible that we’ll be emailing folks more than once a day – but only if they’ve asked us for that frequency of contact.

The other dimension is how long do you hold onto a lead? The recommendation from Email Marketing Demystified is to have autoresponder sequences that last three to five months. This feels long to me, but who knows? They also recommend that if someone hasn’t interacted with you in six months you should remove them from your list.

Demystified?

I don’t know that I’d say that Email Marketing Demystified lives up to its title. It feels more like a set of clues to find your own path than a secret decoder ring. However, if you’ve been doing email marketing for a while, you probably realize there is no such thing as Email Marketing Demystified – the best you can hope for is some useful clues that make you a bit more productive.

What-Why-How to Convey Meaning and Get Buy-In

A friend of mine asked for my input on a one-page marketing slick that he was planning on using to get organizations to sign up. As I looked at it, I was confused with what the organization was doing, why they were doing it (their mission), and ultimately what I’d need to do to engage. I realized that many marketing materials either don’t contain these critical components – or they aren’t crisp enough to be effective. That’s why I felt it was important to write this post – to make it easy for anyone to write good marketing copy for a web page, a one-pager, or a campaign.

What’s the Problem?

When you’re fishing, you’ve got to know what you’re fishing for. You need to know what fish you want to get on the hook. When you start with a marketing piece, you’ve got to know what the problem is that you’re trying to solve for your customer. What is their heartfelt pain that you can fix?

This isn’t the service that you provide – but it should be related. You don’t provide, for instance, water filters, you provide clean drinking water. People don’t want filters, they want what the filter can provide: clean drinking water. Providing clean drinking water to the world is a noble endeavor and one that people can get behind emotionally. However, bolstering this in explaining the what is telling a little mini-story with statistics and people.

Statistics

Statistics are easy enough to dismiss, but they can help us frame our perspective. If four out of five dentists recommend fluoride in your water, you know that most professionals seem to think it’s a good idea. Statistics that indicate why the problem is real validate the intuition of the person you’re speaking with. Statistics that expose the impact the problem is having on their world help them to understand the real pain that it’s creating in their world. It may be a dull, unidentifiable pain – until they can quantify what is going on and how much it is costing them.

People

People love a good story. They crave stories – we’re Wired for Story. However, too few marketing pieces are written like a good book, with a story to pull you in and get you to want to learn more. Sarah was just two when her mom and sister got sick and died. No one really knew why. Her dad came home and found them lying on the floor of their makeshift hut. A few hours later, he was digging a hole with a few members of the community to bury them. The grief was overpowering. She couldn’t tell whether her dad was sweating in the August sun or crying, and she dared not ask. There were no answers to why they died. Only the despair that follows such a loss. Years later, she was taken in by some well-meaning people and given a chance to attend school and learn. It was then that she realized that her daily trip to the lake to fetch water had probably brought home a parasite or bacteria that had taken her mother and sister from her.

No one wants to see Sarah suffer. A paragraph of mediocre writing was all it took for you to get wrapped into Sarah’s plight. Except Sarah isn’t real. It’s just a story. It’s a story that sets up the what – providing a world of suffering people a chance to have clean water – and for moms and sisters to survive.

It’s quicker, and easier, to find some testimonials for people who have been saved than to write stories – but it’s an essential part of your marketing message.

Why Are We Doing This?

Years ago, marketing was magic. You simply told the world you had a better mouse trap on the Mickey Mouse Club and the product rushed off the shelf. Back then, most consumers didn’t care whether your organization did good in the world or not. However, as our generations have changed, so has our need to explain our “why”. (See America’s Generations for more on generations.) Simon Sinek’s book Start with Why instructs us to look for our own “whys.” Though few people are willing to do this journey themselves, they want to feel good about themselves through buying products and services from organizations that they believe have a mission.

Most organizations have a mission. It may be poorly articulated and sitting in the bottom of a dusty drawer, but it exists. For most, it’s more than to make money – though, arguably, for some this is the only driver. Expressing the mission in a way that resonates with the target audience is important. Whether it’s fair trade, fair wages, or shoes for children, the mission matters.

The mission for you need not be a save-the-world, provide-clean-drinking-water, and save-lives sort of thing. In our technology business, we simply want to enable organizations’ success through technology. We want them to be successful with the help of technology. We don’t want them to be hampered in their success by something that should be easy.

How Are You Doing This?

We’ve got to believe. Not just to fly, like Peter Pan, but to do anything. If we don’t believe, then we don’t do. If we don’t believe there’s a chance that we’ll win – no matter how remote – we won’t play the lottery. It’s our belief that drives us. There are many ways that organizations try to build the belief in the mind of the prospect that they’re the right answer. For some, it’s branding exclusivity or indulgence. For others, it is rock solid stability. The organization seeks to convey the markers that create the belief in the mind of the prospect that the organization can give them what they want. However, there’s more to it than that. They need to believe that you know how you’re going to give them what they want. (See The Deep Water of Affinity Groups for more on how brands work.)

Sharing enough of how you’re going to solve the prospect’s problem helps them believe that you can solve it. How much you need to share to help them believe varies by what you’re doing and how different you are from your competition. Explaining that you’re going to end world hunger comes with a modicum of disbelief. Most people don’t believe that you can solve world hunger. To overcome this disbelief, you must have a believable how. If you want to provide clean drinking water to the world, you’ve got to share that you’ve got a water filter that works. You’ve got to share that it’s reliable, cheap, and works without electricity.

You don’t have to explain carbon filtering, chemical processes, or the resistance of the medium to water – you only must explain it in a way that makes it sufficiently plausible. Getting to 100% belief isn’t the goal of marketing – that’s sales. The goal of marketing is to develop a need in the prospects mind to reach out and take the next step.

Setting the Hook, the Easy Way

The final step is in creating a single and easy call to action. If you need someone to pick up the phone, then that’s your call to action. If your call to action is to visit your website, realize that you’ll have to get your website to have the clear call to action for the next step. While you generally can’t move a prospect immediately into a sale, your goal is to create a small number of very small steps to make it easy for the prospect to move through your sales funnel.

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Made to Stick: Why Some Ideas Survive and Others Die

Book Review-Made to Stick

Honey. Duct Tape. Elmer’s Glue. They’re all made to stick, but they’re not the kind of Made to Stick that Dan and Chip Heath are talking about. They’re talking about those mental viruses that replicate inside your head over and over again until you want relief – and things much less pervasive but sticky nonetheless. What about those songs that get stuck in your head? What about the belief that autism is caused by vaccines? (See Science and Pseudoscience in Clinical Psychology for why this isn’t truth.) Some ideas and myths and ideas persist, and others gently fade away into the night.

How is this useful to most of us? How does knowing what makes an idea sticky or not help us in our challenges of living life? The answer may be connected to our desire to change our behaviors. How do we stick with our exercise regimen or stay on our diet? (See Change or Die and Willpower for more.) It’s also connected to our desire to market our goods and services in a way that people can remember.

We’re in an attention economy, and under those conditions, you can either hope that you grab the attention of a buyer at exactly the right time – or you can design your messages to be sticky and hope that your message has remained in your buyer’s mind at the right time. The second option makes hitting the target seem more likely.

Six Principles

The Heath brothers have distilled what they believe are the six principles that lead to stickiness. They are:

  • Simplicity
  • Unexpectedness
  • Concreteness
  • Credibility
  • Emotions
  • Stories

As they tear each of them apart, I saw connections. Simplicity is the opposite of complexity, which Rogers says is an opposing factor to the Diffusion of Innovations. Unexpectedness draws our initial attention, as is explained in Fascinate, Inside Jokes, Incognito, The Signal and the Noise, and others. Concreteness makes an appearance in learning in works like The Adult Learner, Efficiency in Learning, and How We Learn. Credibility and our ability to appear credible to our audience shows up in marketing books. (See the New Rules of Marketing and PR, Guerilla Marketing, and Duct Tape Marketing.) Emotions are how we make decisions, as the Heath brothers describe in Switch, which they got from Haidt’s The Happiness Hypothesis. Stories are powerful, as we learn in Wired for Story.

These six principles are clearly connected to a set of works across disciplines and bring together a diverse set of forces that can help your ideas stick for as long as they need to.

Vowels of Success A-E-I-O-U (or O-I-U-A-E)

While I love the success (SUCCES) acronym, I believe that the Heath brothers missed something. I believe that they missed the “Wow!” factor that leads people to pay attention in the first place. We’re in an attention-based economy, where we need first get people’s attention with some sizzle. We need the wow. I think that we need to represent all the vowels in our acronym – but not in the order they appear in the alphabet. First, I believe, we need them to say “Ohh!” (Our first vowel.)

Next, we need to give them something unexpected. We need to give them something that hooks them more than the initial spark that got their attention. We need to create a sense of Intrigue (our second vowel).

From there, our idea must be Understandable (our third vowel). That means it needs to be both simple and concrete – because that’s the way that we learn things and the way that we can connect them to our other memories. (See How We Learn.)

The fourth vowel is Accepted. That is, the receiver must accept the learning. They’ve got to believe the credibility of the sender – typically through credibility markers. The credibility marker can be a referral from someone the receiver trusts or another form of marker, like a certification or approval.

The final vowel is E for Engaging, which encompasses the Heath brothers’ emotions and stories. This is setting the hook. It’s taking the idea that was noticed, pondered, understood, and accepted and then ensuring that it can be remembered. As humans, we evolved to feel others’ feelings. Mirror neurons literally fire in conjunction with others’ neurons. (See Primal Leadership for more.) As Wired for Story points out, we evolved to be able to learn from others through stories – so stories have a significant sticking power.

Simple, not Simplistic

One of my favorite Einstein quotes is “make everything as simple as possible, not simpler.” Einstein wasn’t trying to “dumb down” relativity. He was trying to get to the core principles of it. He was trying to take the complicated and make it as simple as possible. In the language of the Heath brothers, simplicity is finding the core of the idea. It’s finding the essential and central point to be made. Instead of covering everything, it’s covering only those topics which are core.

Much time is spent making the point that, when you say three things, you’re really saying nothing. If you want a message to stick, you must pick the point to make – and stay with it. This is reminiscent of the Stockdale Paradox from Good to Great, where you must have unwavering faith – and the ability to listen and adapt. On the one hand, you need to listen to what you can do to make the message more compelling and resonate better with the audience, and on the other hand have the fortitude (or perhaps grit – see Grit) to stay the course. (My post Should You be a Fox or a Hedgehog? may shed additional light on the topic of creating simplicity.)

Attracting Attention

In my reviews of Selling to VITO and Traction, I mentioned that we live in an attention economy. If we want to succeed, we must attract attention – the right kind of attention to what we’re offering. We can’t demand attention. We can’t insist that someone read our email or watch our video. We’ve got to engage them in a way that makes them want to engage. This is where unexpectedness helps us. Jokes pack a one-two-switch punch, and when we detect that there was something unexpected, that our pattern matching brains were wrong, we laugh. In short, we get a bit of the pleasure drug dopamine for detecting the error in our thinking – the unexpectedness. (See Inside Jokes for more)

Many of the techniques that you’ll find in marketing books are about doing something unexpected to get – and hopefully keep – attention. The key contrast is in defining the brand message as internally consistent but externally (worldly) inconsistent. (See Brand is a Four Letter Word for more.)

Creating the Demand

Sometimes the dance to engage your audience is to tell them what they know – and then expose the gap that they don’t know about. Sometimes you must expose the thing that the audience already knows – but doesn’t know consciously – to get to the gap in their knowledge. You can’t realize that you don’t know what’s between you and your goal until you know what your goal is. You can’t find the path to success when you can’t define what success is. (The ONE Thing leads towards the idea of getting very clear about what your goals are.)

You can’t sell a product or service to someone who doesn’t know they need it. To help them understand their need, you must first help them be concrete about what they want, and then expose to them that they don’t know how to get there.

Building the Market

In my post Building the Market, I speak about the kind of effort that it takes to build a market and how it’s not the best plan for most organizations these days. Unfortunately, the need to create the demand and the realities of modern business are in conflict. Small businesses lack the capital and large organizations, driven by the need for quarterly returns, rarely have the fortitude.

Velcro Kind of Sticky

In How We Learn, we are told that there are two components to memory: storage and retrieval. Storage seems to be the easier of the two components. It’s the retrieval that’s interesting, because the brain carefully prunes away connections that can be used for retrieval to allow us to function. Instead of everything being available at our fingertips, things are only available through a chain of thinking, like navigating down a folder hierarchy.

This pruning of the retrieval system doesn’t mean that we forget about the ideas we’re trying to convey. Instead, it means that the patterns for retrieval of that information become narrower and harder to hit. That’s why, when we craft our message, we craft it in a way that it can be retrieved. We try to ensure that the audience’s brain doesn’t trim those retrieval paths we need.

Velcro is interesting stuff. Designed by nature and copied by humans, there isn’t just one spot that the two pieces will catch together. Instead, any contact between the two pieces will create a level of cohesion. When creating our ideas, we try to craft the message in a way that, even if our intended connection isn’t made, alternative connections may help us hold onto the idea.

Nonsense and Understanding

Much of the challenge of getting ideas to stick is to get them to be understood. Testing our memory is hard, because researchers realized that the different retrieval connections that people have for different ideas keep muddying up the water – until they settled on nonsense words as an approach to testing for retention. The intent was to create things that people couldn’t connect to existing memories.

Even random strings of numbers would connect with people. They would find an old area code inside the middle of a string and suddenly do better on the memory test because of the connection. In fact, the high-performance memory folks use this technique of making the numbers meaningful to them so that they can remember them. (See Peak for more on the memory experts.)

In short, we remember the things we can understand – and we don’t remember the things that we don’t.

We remember those things which are concrete. In fact, we grasp the abstract through means of the concrete. (See Pervasive Information Architecture for more about this.) The Heath brothers call to concreteness as a tool to allow us to remember the idea.

Understanding Statistics

Most people don’t understand statistics. Ask for an explanation of standard deviation, and you’re just as likely to get blank stares as you are to get answers that are materially correct. However, more importantly, people don’t connect with statistics. Statistics live in the analytical portion of our brains, and, as Switch and The Happiness Hypothesis point out, the analytical portion (the rider) isn’t in control. How to Measure Anything and Thinking, Fast and Slow both point out our inability to conceive of large numbers well. We’re subject to all sorts of biases and inaccuracies as our analytical mind attempts to wrap around the numbers we’re talking about.

To understand statistics, we need to create simplicity. To understand statistics, we must strip the complicated math and make the true value of the statistic – the ratio – stand out. It’s the ratio that makes the pie chart so valuable. Though it’s lousy at comparing year to year, it’s beautiful at showing what percentage of a pie was made up of one part of the total. People get it because they know what it’s like to give up a part of the pie.

It’s said that a million deaths is a statistic. A single death is a tragedy. The emotional aspects of understanding the story behind the one loss is within our capacity as humans. Comprehending the pain of the deaths of a million people exceeds our capacity.

Framing

In Pitch Anything, Klaff’s general premise is he who sets the frame controls the sale. If you can control the way that people see the situation, you can control the outcome. While this might be overstated a bit, framing is a powerful force for managing how people perceive anything. Framing sportsmanship as a way to honor the game that you love so much can take an abstract idea like sportsmanship and hang on it the trappings of honor of respect and have a profound effect on how people see their need to participate in games.

A subtle change with school children can be that they be framed as representatives or, even better, ambassadors of their school. As a result, they frame their behavior in terms of whether it will reflect positively on the school.

The frames that people use change with the circumstances they find themselves in. They can identify as child one moment and boy the next. (For more, see No Two Alike) By influencing which frame they use, you can influence how powerful an idea sticks.

What Do People Like Me Do?

In the end, the most powerful frames are the defining ones. They’re the ones that people ask “What do people like me do in circumstances like this?” They look for defining boundaries – the things that people like them do – and don’t do. (See Beyond Boundaries for more on defining boundaries.) So, as it comes to Made to Stick, what do people like you do? Do you read it?

Launch: An Internet Millionaire's Secret Formula to Sell Almost Anything Online, Build a Business You Love, and Live the Life of Your Dreams

Book Review-Launch: An Internet Millionaire’s Secret Formula to Sell Almost Anything Online, Build a Business You Love, and Live the Life Of Your Dreams

Everyone dreams of it. Sell some product on the internet. Make a million (or a few million) dollars, and retire to some Caribbean island – or, in the case of Jeff Walker, Durango, CO. However, how can you do that? Launch: An Internet Millionaire’s Secret Formula to Sell Almost Anything Online, Build a Business You Love, and Live the Life Of Your Dreams claims to hold the keys to this elusive goal of many people. While Launch may have some pointers, from my point of view, there are some key areas of the map that are obscured or missing. We’ll get to that, but for now: what is the product launch formula?

Product Launch Formula

Jeff Walker started by sharing information about investing and became an internet marketing mogul. He’s well-respected as someone who has found a model for internet marketing that works. His approach is very different than the approach used by typical marketing. It’s not Guerilla Marketing or Duct Tape Marketing. It’s not even The New Rules of Marketing and PR. The strategy is different, in part, because it assumes you’re not starting with a product. It assumes that you’re launching a new product or business. The idea is that you develop an audience (what Seth Godin would call a “tribe” – see Tribes). You get that audience frenzied about the availability to get the product. The process is designed “to get your target market so engaged with your product (or business) that they almost beg you to sell it to them.”

Target Market

The target market is the first of the blurry (or missing) parts of the map. Jeff assumes that you can build your target market. The idea is that you can create content and that content will help to engage prospective customers in a conversation. They’ll help you to create and refine the content, and then you sell it to them. However, what if you can’t engage the market? What if you can’t find your tribe?

Walker quickly skims over this topic and assures you that you’ll find your target market and that they’ll help you refine your offering. I, however, have lived the life of building a tribe and defining a product. For the past ten years in selling The SharePoint Shepherd’s Guide, I’ve found great places to connect with the market and equally found times when there seems to be no connection at all. It’s quite easy – and probably correct – to say that I’m doing it wrong, and I’ve missed the market, or that I’ve failed to zig and instead zagged. It is, however, my experience that the tricky part is in finding and connecting with a market to understand what they’ll get engaged about.

Sequences, Stories, and Triggers

The Product Launch Formula is made up of four sequences: Pre-Prelaunch, Prelaunch, Launch, and Post-Launch. Each of these sequences has a series of steps. The steps are designed to tell a story across time instead of overloading someone with one big message. The story is spread across days. (See Wired for Story and Story Genius for more about writing stories.)

The sequences and stories are designed to activate a set of mental triggers in the mind of the recipient that drives them to action. The triggers are:

  • Scarcity – This is a limited-time offer; you’re missing out if you don’t take advantage right now.
  • Authority – You’re the person who has all the answers; they’re a fool if they’re not listening to you.
  • Community – They’ll be left out of the club if they don’t join you.
  • Reciprocity – If I give you something, you’ll want to give me something back.
  • Trust – You should trust me.
  • Anticipation – You can’t have it – yet.
  • Likeability – Making yourself likable to encourage others to want to do business with us.
  • Events and Rituals – People love events and the opportunity to experience something together.
  • Social Proof – Others have had success using this system; the implication of which is that you can, too.

Obviously, these triggers are the right things to drive activity. The Happiness Hypothesis and Switch remind us that we are substantially more driven by our emotions (and our fears) than we would like to admit. Reiss claims there are 16 basic motivators of people in Who Am I? and The Normal Personality. His motivators include power, savings, social contact, status, and others, which link up to the triggers Walker shares here. The triggers are right – if you can find someone who’s interested in your offer.

So Now What?

The Product Launch Formula may be the right answer once you’ve figured out your market and your offer – or at least if you’ve got it reasonably close. However, in my experience, the magic happens in figuring out what to sell and finding a market that’s willing to buy it.

Over the years, I’ve seen plenty of “tire kickers,” who will take all your free content and lap up whatever sage advice you have to offer – but for whom there is no budget to be had. There’s nothing they either can or will buy. Of course, the argument is quickly that they either didn’t believe that I had something to offer them of enough value to part with their money, they didn’t believe in me, or they didn’t believe the solution would work for them.

I accept that, for at least some of the people that I have run across, these are true. I missed the mark somewhere in helping them understand the value that I generate. However, at the same time, I have to say that there are some who are just not going to buy.

The most frustrating thing about Launch for me was the fact that it didn’t offer any way to solve the intractable problems. If you know you have a market and you know roughly what you want to offer, it’s a good time to launch into reading Launch.

Brick Laying

Building the Market

One of the often-overlooked challenges with a business is building a market. It’s not about constructing the corner grocery. It’s creating an awareness in the mind of the target buyer that they can’t live with the savings, convenience, or opportunity that your product offers. You can spend a lot of money to build a market only to have your leader position overtaken by some upstart that takes advantage of the market that you’ve built. (See Launch! for more on the “first-to-market” problem of education.)

Personal Digital Assistants

Today the personal digital assistant market has given way to the mobile smartphone market. However, in the beginning, they competed with paper. They competed with binder systems by the likes of Franklin-Covey (or, rather, Franklin planners before the merger). Most folks have long forgotten the ill-fated Apple Newton. Few remember the battles between the Palm Pilot and the Pocket PC. However, these were the battles that forged a market. They poured tons of capital into the market and legitimized the idea that you would keep your schedule and your contacts in a small handheld electronic device.

Blackberrys ruled the fruit electronics world as they brought mobile email to the masses. Way before Wi-Fi was popular at your local coffee shop, oversized pagers allowed quick, thumb-based emails to be sent by busy executives and sales professionals on the go. That would all change in 2006, when Apple released the iPhone and swallowed up both the PDA market and the mobile email market. It turned out that Apple was the worm that was eating the other fruit electronics for breakfast.

Apple’s success with the iPhone is legendary, and the praise lauded upon them is appropriate – but it’s important to not miss the market-priming conditions that allowed Apple to be so successful. They failed. They waited for the market to be developed by competitors, then they swooped in and took the entire market.

Search, Just Like Google

For most consumers today, there wasn’t a search before Google. Google is all they’ve known. However, Google wasn’t the first internet search engine. First there was Yahoo, with its taxonomy of links to all the places on the internet that were worth visiting. Though laughable today because of scale, back in the day, it was the way that people navigated this new, vast, semi-charted space of the internet. It was called the World Wide Web (www) back then to distinguish it from the actual computer network, but that distinction has long sense been lost.

As Yahoo’s approach showed its limitations, other players like Altavista came on the market with a search-based approach. However, the problem was that Altavista had very little way of distinguishing the good sites from the useless sites. The singular innovation that drove Google’s early success is the awareness that people are most interested in the research papers that have been cited most. Larry Page and Sergey Brin applied this idea to websites, and the rest, as they say, is history. Google didn’t create the market for an internet search engine – or the internet for that matter. They created a solution for a market that already existed.

For years, I’ve worked with search providers, from Mondosoft, SurfRay, and Microsoft. I’ve watched as they’ve struggled to create a market for enterprise search. The obvious need – to simplify search inside the organization – still struggles to become a market because the problem is too hard – or no one has been able to create the right market for the enterprise search. (Open source solutions like SOLR and the many commercial companies that build on this core haven’t been successful either.)

Building Takes Time

The problem with building the market is that it takes time. It takes resources. It takes a level of investment that most small companies can’t make – and most large companies no longer have the stomach to make. Motorola bet big with Iridium – and lost. There wasn’t a large enough market for satellite phones – yet. (There were other factors like not being friendly, but they are ancillary to the market not existing.)

If you’ve got an innovation that you’re working, on one of the most important questions you can ask yourself is whether you’ll have to build the market or not. In other words, are you creating a solution for a problem that your customers know they have – one that’s crystal clear in their minds? If not, you’ve got some level of market development to do. How much will that cost? How much time will it take? Do you have the stomach to hold on?

If you’re interested in learning more, you may want to look at Good to Great for the Stockdale Paradox (holding on and being flexible), Grit for how to develop that perseverance, and Willpower for the frailties of our willpower.