...Marketing, of course! (Okay, next time I'll try to give you a harder one.)
It seems that SolarCity Inc. has recently provided us with a prime example of the fact that innovative marketing can produce results far greater than innovations of the technologies to be marketed. Taken to its next logical conclusion, the lesson here is once again that a combination of innovative technologies and innovative marketing can produce results that are quite spectacular.
SolarCity installs solar panels on residential housing units... nothing so technologically advanced about that these days, although advances in materials, etc. are indeed important in the solar panel business.
SolarCity recently announced that is will begin selling asset-backed securities that are based on its leases to its residential customers. SolarCity's stock price surged more than 12% on the news, bringing its stock price to nearly six times what it was one year ago.
This phenomenal success is largely due to SolarCity's business model, which entails leasing its solar equipment to homeowners rather than trying to sell the expensive installations at a time when homeowners are hard-pressed to get loans. Now, the newly created asset-backed securities present another means for SolarCity to make money... SolarCity has essentially created a lucrative new product for sale, which is bundled leases of SolarCity installations, sold as securities!
It of course remains to be seen how these securities perform for purchasers in the long term, but SolarCity is making out quite nicely in the meantime.
I am not suggesting that you enter the risky world of high-finance, but I am suggesting that you consider implementing innovative marketing if you really want to bust out!
Monday, November 25, 2013
Wednesday, November 20, 2013
Freebie for Global Entrepreneurship Week!
In recognition of Global Entrepreneurship Week, I am making available a free electronic version of my book Mastering Technology Commercialization. Use coupon code PG58N to get a free copy at Smashwords.com. Enjoy!
Monday, November 18, 2013
A Little Political Rant
Well, since the political environment is crucial in determining whether entrepreneurs thrive, from time to time I will throw in some political commentary here.
Yesterday I saw a show on PBS (of all places!) that enlightened me to the difference between economic democracy and economic freedom. We know that many times a majority of the people will vote to take from the rich and give to the poor... this is economic democracy, not economic freedom. Greece, Spain, Italy, Venezuela, and other economic "powerlouses" come to mind here. Economic freedom, in contrast, is a system whereby the producers are allowed to keep the bulk of their earnings and thus keep producing.
The PBS show quoted a study showing that the poorest citizens in countries with highest economic freedom have 10 times the income of the poorest citizens in countries with the lowest economic freedom!
BTW, this is a good time to point out that JFK was a conservative, not a liberal as the liberals would like us to believe. See a great book by Ira Stoll entitled JFK, Conservative.
Yesterday I saw a show on PBS (of all places!) that enlightened me to the difference between economic democracy and economic freedom. We know that many times a majority of the people will vote to take from the rich and give to the poor... this is economic democracy, not economic freedom. Greece, Spain, Italy, Venezuela, and other economic "powerlouses" come to mind here. Economic freedom, in contrast, is a system whereby the producers are allowed to keep the bulk of their earnings and thus keep producing.
The PBS show quoted a study showing that the poorest citizens in countries with highest economic freedom have 10 times the income of the poorest citizens in countries with the lowest economic freedom!
BTW, this is a good time to point out that JFK was a conservative, not a liberal as the liberals would like us to believe. See a great book by Ira Stoll entitled JFK, Conservative.
Thursday, November 14, 2013
Public Solicitation of Investments
As some of you are aware, in September it technically became legal for entrepreneurs to publicly solicit investments through advertising, social media, etc. However, the SEC has yet to set final rules for doing so. For instance: what disclosures must be made and when, etc. For this reason, wise entrepreneurs will approach the process cautiously and retain competent legal advice prior to any such solicitation.
Due to the change allowing public solicitation, (aka general solicitation), AngelList created a means for public fundraising through its site. AngelList says that 3,000 entrepreneurs have signed up and have raised over $8MM, although not all of the money was through the new public-fundraising option.
This is worth checking out if you are in the fundraising mode.
Due to the change allowing public solicitation, (aka general solicitation), AngelList created a means for public fundraising through its site. AngelList says that 3,000 entrepreneurs have signed up and have raised over $8MM, although not all of the money was through the new public-fundraising option.
This is worth checking out if you are in the fundraising mode.
Thursday, November 07, 2013
The Myth of America's Decline--and the Reason is: You
We all hear the scare stories about China on the rise and America in decline.
I'm not old enough to recall the 1950s predictions about the Soviet's communist economy overtaking ours, but I recall very clearly the huge wave of hysteria in the 1980s and 1990s about the Japanese burying us.
Well, of course the Soviets bit the dustheap and the Japanese have mired in stagnation for over two decades. Can anyone think of one innovative new product category that the Japanese created?
Well, now comes along a great read that examines America's competitive position in the world: The Myth of America's Decline:Politics, Economics, and a Half Century of False Prophecies, by German newspaper editor Joseph Joffe.
The greatest reason for America's strength is that here innovators like you have been able to thrive... and drive our economy forward. The Soviet, Japanese, and Chinese economies tellingly have this in common: Massive state interference in the economy and near-total domination by large manufacturers. Ditto South Korea, by the way.
America's large manufacturers have declined in significance, but due to relatively lower interference by our government, new businesses step in, fill the gap, and build in its place a mountain. America's competitive strength can be lost through erosion over time, however; it's not a "given." We need to remember this when choosing our leaders!
Joffe's book will give you plenty of "ammunition" when you find yourself in your next discussion on the government's role in your business.
I'm not old enough to recall the 1950s predictions about the Soviet's communist economy overtaking ours, but I recall very clearly the huge wave of hysteria in the 1980s and 1990s about the Japanese burying us.
Well, of course the Soviets bit the dustheap and the Japanese have mired in stagnation for over two decades. Can anyone think of one innovative new product category that the Japanese created?
Well, now comes along a great read that examines America's competitive position in the world: The Myth of America's Decline:Politics, Economics, and a Half Century of False Prophecies, by German newspaper editor Joseph Joffe.
The greatest reason for America's strength is that here innovators like you have been able to thrive... and drive our economy forward. The Soviet, Japanese, and Chinese economies tellingly have this in common: Massive state interference in the economy and near-total domination by large manufacturers. Ditto South Korea, by the way.
America's large manufacturers have declined in significance, but due to relatively lower interference by our government, new businesses step in, fill the gap, and build in its place a mountain. America's competitive strength can be lost through erosion over time, however; it's not a "given." We need to remember this when choosing our leaders!
Joffe's book will give you plenty of "ammunition" when you find yourself in your next discussion on the government's role in your business.
Tuesday, November 05, 2013
AdWords Metrics in a Multichannel World
Those of you who drive website traffic using Google AdWords should consider that social media have affected online behaviors, bringing much more complexity in determining the effectiveness of your use of various online marketing tools. It is no longer a given that all traffic coming in through your AdWords campaign originated due to that campaign.
A great example of this was recently elaborated by Larry Freed, CEO of analytics firm ForSee. Consider Mr. Freed's company-published remarks below:
"Ours is a multichannel, multi-device world. As consumers move across channels, many metrics fall apart. Consider conversion rate ...the percentage of people who come to your website and take the desired action, such as purchasing something.
"Let's say a friend tweets about a great Samsung smart TV they bought at Target. You read the tweet, but since your friend didn't include a URL, you go to Google and enter: "Samsung smart TV Target." Up pops a pay-per-click ad and you click on it. Target may look at this and say: "Great, my AdWords campaign is really converting." But even though the ad was the last click, what really made the transaction happen was that a satisfied customer posted a recommendation via social media."
"This is just one of the factors that makes effective analytics challenging. ...Trying to simplify your efforts to measure [customer] behavior and attitudes is dangerous."
This is just one more example for readers of my blog regarding the complexity of marketing and the fact that in your marketing analytics you must find out how your ecosystem works and then you must go deep!
A great example of this was recently elaborated by Larry Freed, CEO of analytics firm ForSee. Consider Mr. Freed's company-published remarks below:
"Ours is a multichannel, multi-device world. As consumers move across channels, many metrics fall apart. Consider conversion rate ...the percentage of people who come to your website and take the desired action, such as purchasing something.
"Let's say a friend tweets about a great Samsung smart TV they bought at Target. You read the tweet, but since your friend didn't include a URL, you go to Google and enter: "Samsung smart TV Target." Up pops a pay-per-click ad and you click on it. Target may look at this and say: "Great, my AdWords campaign is really converting." But even though the ad was the last click, what really made the transaction happen was that a satisfied customer posted a recommendation via social media."
"This is just one of the factors that makes effective analytics challenging. ...Trying to simplify your efforts to measure [customer] behavior and attitudes is dangerous."
This is just one more example for readers of my blog regarding the complexity of marketing and the fact that in your marketing analytics you must find out how your ecosystem works and then you must go deep!
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