Blogs are a stadium

I was asked today about how blogs should be built and leveraged from a commercial perspective. It seems to be a regular question I’m asked. The giving element that is required in the blogosphere seems counter intuitive to the way our minds have been trained via the industrial complex. They often struggle with the fact that we just have to give, and the law of natural economics just kicks in. So I came up with this analogy which I think makes sense and explains how it should be approached philosophically.

Blogs are like a football stadium.

The game is played in the middle of the ground.

In blogs the middle of the ground happens to be where our posts are geographically placed.

This is why people come to our blog. To see the action. To learn from and be entertained by the actual game (posts)

But like all good stadiums we have related infrastructure around the edges. Our details, company, tweetstream, contacts.

If they like the game we play (our posts) they return. The crowd gets bigger, and they tell their friends to come.

Like the stadium the revenue comes from all the related elements like the concession stands, the parking and the sponsorship. The stuff that generally lives around the edges… both in stadiums and our blogs.

But we must never forget why they are here. To enjoy the game. They only ever return because the enjoy the game (the blog posts). So what we need to do is build our industry around the game, rather than charging for tickets at the gate. Charging entry just doesn’t work beause there is far too many games they can attend. (more than 200 million in fact)

So when someone asks you about how to make a blog work. Remind them of ‘stadium economics’ and that it’s the quality of the information and entertainment which earns us the right to sell them the occasional hot dog.

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Be part of something

When I started rentoid.com a 5 years ago I had no idea it would grow into something much bigger. In fact, the entire industry has been written about by Rachel Botsman in her upcoming book “What’s mine is yours“. She coined the phrase Collaborative Consumption to describe what is happening in our hyper connected world. Rentoid is featured in the book and this little video below, which makes me a bit proud.

[vimeo=http://vimeo.com/14408878]

It’s cool to launch a startup to make money. It’s cooler to be part of something bigger than your startup.

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Why junk mail matters

Junk mail is not named correctly. It should be called Research Mail, Zeitgeist Mail or something much more complementary.

Here’s a list of great things it does:

  • It tells us what people think they can sell
  • It tells us the price of things, probably our competitors
  • It tells us who can afford to advertise
  • It tells us the economic conditions of the day via the discounts made
  • It display the advances in technology
  • It tells us what’s hot
  • It keeps us in touch with the business environment more than the Wall Street Journal does

It’s an entrepreneurs best friend. Startup blog says read your junk mail.

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Losing touch

The rock band U2 stood out in the 1980’s for many reasons. One of them was the willingness to shun to excess of the 80’s. Things like Stadium rock, over produced music, expensive film clips and overdressing. U2 had something to say, rather than something to see.

It all changed at the birth of Zoo TV with the Achtung Baby album which was a brilliant parody of the impact television had had on music politics and consumerism…. Sadly U2 have become the parody they first exposed.

Here’s some quote from Bono himself:

‘Sometime the best way to expose the lies is to live them yourself’

‘All I’ve got is a red guitar, 2 chords and the truth’

It seems his memory has failed him as their latest 360 tour includes 390 tonnes of stage production equipment, 200 tonnes of amplifiers, 248 shipping containers filled with the staging systems and requires 6 Boeing 747 freighters to transport it. They claim the band is buying carbon offsets, but the real kicker is that Bono then has the audacity to ask people to car pool to “cut down on carbon emissions”.

The whole thing just feels very wrong. It’s not the U2 I knew and loved. In many ways the stage is making up for the lack of good songs (They haven’t had a top 10 in America since 2004). Certainly, they’re DNA has changed and its reflected in their record sales which have been reduced. I preferred it when they’re stage shows were simpler, and their music better.

The lesson for startups is this:

The things that made us successful, are probably the same things that will keep us there.

How to decide

A colleague sent me this quote that I just had to share right here on startup blog. Henri Federic Albert said:

“The man who insists on seeing with perfect clearness before he decides, never decides.”

And that is what we must learn to deal with in growth businesses – uncertainty. Our ability to decide based on a intuition and our personal world view is becoming a rare asset. It’s what we must move towards in a world full of data, but very little meaning. The other benefit decisions give us is real world feedback. If we get it wrong we can cross it off the list and move onto the next idea.

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The art of iteration – coffee

Iterating in business is an art form. It’s how we grow and find a path to establish the features that matter. It’s not about more, it’s about finding what works, which means that as we morph and change, certain features must be sacrificed, left or or purposely cut off. Nature exemplifies this. Nature takes time to roll out new features, and is well prepared to sacrifice old ones which no longer pay their way. Nature takes years to develop the perfect mix, but is in a constant state of evolution.

The coffee market has been one of the most interesting category evolutions we’ve seen in the past decade or so. Especially given the drink has been around thousands of years. What’s most interesting is that it was a commodity market at brand and retail level for the largest part of the past 60 years. Granules in a tin which one mixes with boiling hot water. Large brands then competed on price with occasional soapie style advertising.

Enter coffee culture and in 15 short years everything has changed. Coffee isn’t coffee anymore. Coffee is latte, coffee is short machiato, coffee is espresso, coffee is arabica versus robusta. But it evolved slowly, and the latest trend in coffee drenched Melbourne is cold dripped coffee. The point for startups is simple: we can’t go from Nescafe blend 43 straight to cold drip coffee. We have to take people on a journey with us, chapter by chapter. Shown below is another photo essay of  a coffee haunt on little Collins Street Melbourne called Sensory Lab.

The question for entrepreneurs is what industry can we invent a journey to take people on?

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Worldometers are great

I’m really loving the worldometers website. It’s a list of global statistics which are updated in real time

Not only is it a very interesting, but it is a terrific resource for entrepreneurs and marketers alike. No matter what your business you could grab some statistics from it to open the mind of your audience in a presentation. For example:

If in the distribution, health, food business we could present this statistic:

Undernourished people in the world = 1,026,904,563

Overweight people in the world = 1,153,103,026

Which shows that there ‘is’ enough food int he world, it’s just in the wrong places. It’s a distribution issue.

If in the eco energy, or environment industry we could share the following:

Energy used worldwide today = 422,173,999 (MWh)

Solor energy striking the earth today = 39,886,999,999 (MWh)

Showing that we have the 40x the natural resources needed, we just need to harness it.

In fact, the way we could use these statistics is limited only to our imagination. And when we are presenting to audiences, it’s their imagination that we should really be trying to inspire.

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