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Being able to capture content means always being ready with your virtual notepad and accessories when the mood strikes. The video above shows the Panavise windshield mount I place in the top-left corner of my windshield. I then hang my Kodak Zi6 camera upside down to record the video. I use QuicktimePro to flip the video rightside up, and then I upload it to Vimeo.com. (Note, the first few seconds of this video will be upside down, but just hang tight and it'll switch!)
Being able to capture content means always being ready with your virtual notepad and accessories when the mood strikes. The video above shows the Panavise windshield mount I place in the top-left corner of my windshield. I then hang my Kodak Zi6 camera upside down to record the video. I use QuicktimePro to flip the video rightside up, and then I upload it to Vimeo.com. (Note, the first few seconds of this video will be upside down, but just hang tight and it'll switch!)
Today in Fast Company is a really great analysis showing how the tourism board of the Great Barrier Reef used social media to win the direct, cyber and PR awards at the International Cannes Advertising Festival. (the first time one agency has won all 3 awards in its 50 year history).
Their approach, which heavily leveraged social media assets like Twitter, Facebook and YouTube, will result in not only a killer PR campaign to drive visitors to the islands, but voluminous amounts of content being created over the next 6+ months by the winner of the job contest, Ben Southall.
And that's where the true long-term value of this campaign comes from - not just a short-lived advertising campaign, but deep content creation that will give people a feel for what the island is like before they visit, which will, of course, cause them to want to visit. Just take a look at Ben's blog to date and you'll see how enticing the pictures and content are.
This approach, leveraging social media not just to create awareness, but to create a channel through which the tourism board can continuously communicate to potential clients in ways they want to be communicated with, is the future of marketing.
Today in Fast Company is a really great analysis showing how the tourism board of the Great Barrier Reef used social media to win the direct, cyber and PR awards at the International Cannes Advertising Festival. (the first time one agency has won all 3 awards in its 50 year history). Their approach, which heavily leveraged social media assets like Twitter, Facebook and YouTube, will result in not only a killer PR campaign to drive visitors to the islands, but voluminous amounts of content being created over the next 6+ months by the winner of the job contest, Ben Southall. And that's where the true long-term value of this campaign comes from - not just a short-lived advertising campaign, but deep content creation that will give people a feel for what the island is like before they visit, which will, of course, cause them to want to visit. Just take a look at Ben's blog to date and you'll see how enticing the pictures and content are. This approach, leveraging social media not just to create awareness, but to create a channel through which the tourism board can continuously communicate to potential clients in ways they want to be communicated with, is the future of marketing.
Daniel Odio gives tips and tricks for entrepreneurs!
Click to listen to "Episode 65: Interview Part 1" and click to listen to "Episode 66: Interview Part 2"
Jim Hopkinson, Wired.com's Marketing Guy and creator ofThe Hopkinson Report, recently interviewed me for his Hopkinson Report podcast. Here's a Tweet of Jim's about the Podcast, and another one about my social media hardware bag and another on my blog posting about how to hire people effectively.
Here is a transcript of the Podcasts
Focusing on creating massive amounts of original content really works, as evidenced by the amazing PageRank of 5 of www.PointAbout.com, a domain which is only slightly more than a year old. One example of the way we're getting lots of original content is by capturing and transcribing the Digital Media Conference in which I was a panelist.
Focusing on creating massive amounts of original content really works, as evidenced by the amazing PageRank of 5 of www.PointAbout.com, a domain which is only slightly more than a year old. One example of the way we're getting lots of original content is by capturing and transcribing the Digital Media Conference in which I was a panelist.
I spoke on the American Marketing Association's Social Media panel on July 15th. The video is above. Below is the original marketing information for the panel:
Innovation & Technology , How it affects the Marketing Mix
Date: Wednesday, July 15, 2009
I spoke on the American Marketing Association's Social Media panel on July 15th. The video is above. Below is the original marketing information for the panel: Innovation & Technology , How it affects the Marketing Mix Date: Wednesday, July 15, 2009 Time: 6:00 PM - 8:00 PM Location: John Hopkins University Krieger School of Arts and Sciences Washington, DC Center 1717 Massachusetts Ave., NW Room BOB Washington, DC 20036 Cost: $40 Members & Students $60 Non-members Hors d'oeuvres included. All onsite registrants are subject to an additional $10 surcharge. Register Pre-registration closes at 5:00 PM on Monday, July 13th. Speakers: Aaron Brazell, CEO, Emmense Technologies, Founder, Technosailor.com Gray Brooks, New Media Ombudsman, Obama for America Shana Glickfield, Communications Consultant, Founder, DC Concierge Daniel Ruben Odio-Paez, COO, PointAbout, Co-Founder, DC Moblile Mondays Patricia Mejia, VP Marketing, Siteworx Moderator: Maurisa Turner Potts, Expert Marketing Consultant Every day a new social marketing outreach tool is introduced to the marketplace. Rapid innovation in technology has added new weapons to a marketer's toolbox. Both clients and companies are looking for the next new hot thing to differentiate their product or service. Facebook, Smartphones, Iphone Apps, Twitter, and U Stream are every day household names. New companies and industries have been formed to spread messages about products and services. Yet, a key question remains: How does innovation and technology affect the marketing mix? Come join five expert panelists on July 15, 2009 to discuss key innovations in technology that directly impact marketers. Aaron Brazell is a social media strategist and implementer. As a long time entrepreneur and technologist, he is most known for his blog, Technosailor.com - the most widely read business and technology blog in the Baltimore/Washington region. Gray Brooks helped pioneer the political New Media space. In early 2003 Brooks drove to Vermont, helping the Internet team power Gov. Howard Dean's presidential bid. In January 2007, Brooks joined Barack Obama's campaign. As New Media Ombudsman, he was the special projects manager for the New Media Director and helped integrate the department into the campaign at large. Over the two years of the campaign and presidential transition, Brooks managed efforts integrating web design, online video, email, text messaging, online advertising, social networks, and fundraising. Patricia Mejia is the Vice President of Marketing for Siteworx, Inc. Patricia offers a diverse background in public, private and non-profit organizations, having served most recently as VP of Marketing & Communications at IXI T Corporation. Prior to IXI, Patricia held leadership positions at Freddie Mac, the Mortgage Bankers Association and the Southeastern Universities Research Association. Daniel Odio is a co-founder of PointAbout, a company that is focused on unlocking innovation in the mobile space. Previously, Daniel was the founder of Cardea Commercial Real Estate Advsors and DROdio Real Estate, Inc, a resdental real estate brockerage. Daniel has been featured on CNN, CNBC, TLC, The Wall Street Journal and many other publications for his innovative use of technology in the real estate market. Shana Glickfield, an independent communications consultant, was previously the Director of Strategic Communications at Amplify Public Affairs. Shana is currently leading a workshop series to improve how Hill staffers use social media tools in the course of their jobs. She is the founder and author of renowned local blog, The DC Concierge and is one of the top 100 Twitters in DC. Maurisa is an accomplished marketing professional with more than 14 years of professional marketing experience. Her background includes developing innovative and customized marketing strategies, communication roll-outs, event planning, public relations, and partnership development. She has experience in a variety of areas such as economic development, hospitality, technology, telecommunications, accounting, retail and legal services. After spending a majority of her career working in corporate America, she launched her own marketing/public relations consulting business offering freshly tailored marketing solutions exclusively to small businesses, boutiques, entrepreneurs and other private entities. She serves on the Board for the Greater Washington Fashion Chamber of Commerce. She is also a member of Success in the City Professional Women Organization, Washington Women in Public Relations, and a Social Committee Member for the Virginia Tech Alumni Association (National Capital Region). Here's a transcription of the event: Subject: American Marketing Association's Social Media Panel Date: July 15, 2009 Location; Johns Hopkins University Speakers: Aaron Brazell, CEO, Emmense Technologies, Founder, Techosailor.com Gray Brooks, New Media Ombudsman, Obama for America Shana Glickfield, Communications Consultant, Founder, DC Concierge Patricia Mejia, VP Marketing, Siteworx Daniel Ruben Odio-Paez, COO, PointAbout, Co-Founder, DC Mobile Mondays Moderator: Maurisa Turner Potts, Expert Marketing Consultant Legend - Panel Members and Moderator AB - Aaron Brazell GB - Gray Brooks SG - Shana Glickfield PM - Patricia Mejia DO - Daniel Ruben Odio-Paez MT - Maurisa Turner Karen: So, I wanted to just make a couple of announcements, and then I'm going to turn the mike over to our Chapter President, Brendan Hurley. We've a few upcoming events, and I hope you like this space, because we're going to be meeting here a lot for the speaker series. So coming up on July 28th, we have a networking series that's gonna be with JosÃ© AndrÃ©s, who is from THINKfoodGROUP. How many people have been to the Zaytinya, the Jaleo? Great restaurants. So that's going to be on Tuesday, July 28th, that's a lunchtime event. Am I correct? [Yeah.] Good. So on August the 12th, we'll be back here at Johns Hopkins, and the table speaker series on the 12th is on Sports Marketing. So if you are interested in sports and marketing, I hope to see you and see your smiling face on August the 12th. I put the time as 6[:00] to 8[:00] because I know D.C.; I know traffic. We're going to start at 6:30 every month, the speaker series, but I wanted us to have enough time to network, exchange business cards, and get to know each other. But anyway, I'm going to turn it over to our new Chapter President, Mr. Brendan Hurley, who's going to talk a little bit about the chapter, and we'll be starting in 5 minutes. Thanks. [...] You're welcome. Brendan Hurley: Thank you, Karen, and welcome everyone. Again, my name is Brendan Hurley. I'm the new Chapter President for the American Marketing Association here in DC, so I'm very honored to hold that title and to be here tonight, and to welcome you. I'd like to thank and welcome all of our speakers. Thank you very much for your time, and your insights, and your expert knowledge. I'm sure that our guests are going to learn quite a bit from you, so we appreciate that. For those of you who are not aware--we just began our new fiscal year. The Chapter begins the fiscal year on July 1st, so I just want to take this opportunity to tell you a little bit about what our goals and expectations are for the new year. All we wanted to, really as a chapter, we want to focus on our core competency this week--move forward to try to provide maximum member value, so we are really focusing on increased and better programming, and increased in better networking opportunities for you, as we know that is very important to our members. We're also going to be doing some internal and external research. We want to find out what, as members, you think of the organization. For those people who are not members--we want to know what you think of the organization, as well, so that we can continue to improve and grow as a Chapter. We believe in building organizational infrastructure and improving efficiency so we're very dedicated. Our volunteer force is very dedicated on focusing on those areas, so you have any input or suggestions for us, we welcome it. If you're interested in volunteering for the chapter, we really welcome that. As part of our desire to improve the infrastructure, we really need volunteers to fill our committees. Melissa Okimoto, our Director of Volunteers, raise your hand, Melissa, is here. If you're interested in talking to her, she'd more than happy to chat with you about some of the many opportunities available as volunteers at AMADC. So thank you again for allowing me to speak to you. Now it's my pleasure to introduce to you the moderator for this evening's discussion, Maurisa Turner. Maurisa also happens to be the Chapter's Vice President of Marketing and Communications. Maurisa is an accomplished marketing professional with more than 14 years of professional marketing experience. Her background includes developing innovative and customized marketing strategies, communication roll-outs, event planning, public relations and partnership development. She has experience in a variety of areas, such as economic development, hospitality, technology, telecommunications, accounting, retail, and legal services. Maurisa, is there anything that you really haven't touched on in your career? [Laughter] She launched her own marketing/public relations consulting business recently offering professionally tailored marketing exclusions, exclusively to small businesses, boutiques, entrepreneurs and other private entities. She serves on the Board of the Greater Washington Fashion Chamber of Commerce, which she was just featured recently, I might add. She's also a member of Success in the City Professional Women's Organization, Washington Women in Public Relations, and a Social Committee member for the Virginia Tech Alumni Association. So, welcome. Thank you. [Applause] Maurisa Turner: [I have to move this lower [microphone] for a 4' 11" person.] Good evening, everyone. Thank you for coming and thank you, panelists, for being here. Before we start off, I'd like to get a little poll in the audience about how much everyone knows about social media. And I'm going to start with the basic question. Raise your hand if you know what the definition of social media is. Who is currently using social media? [Laughs] We have applications here. How many people are using Facebook? YouTube? Twitter? How many people blog daily? [Laughter] OK, weekly? Alright. And how many people do it for business? Personal? For both? OK, alright. How many people work for organizations that make it a requirement in their business to have a social media plan? Do any have a work or an entity where they're adverse to using social media applications? [OK.] May I ask? [OK.] Is anyone Twittering right now? [Laughter] Alright. I just wanted to get a good pulse on just how the background of how many people are in the social media phase; how they're using it--business versus personal. And, of course, we are here trying to ask the burning question, how does this innovation and technology really affect the marketing mix? And, showing case studies, and proof-positives, and results from our amazing panelists that have used it very effectively and dynamically, and learn some of their points and tips, and how they carry it on into your background, into your career, as well. So, let me kick off one question I'm going to talk this to Gray [Brooks] [Laughs], as a very interesting and exciting track recently. This question is for you, and of course, everyone else still on the panel, please pitch in. Last year, we saw a political candidate and Marketer of the Year, beating out companies, such as Apple and Nike. Many would argue that the technology behind the Obama campaign helped drive the brand, and spark the excitement of President Obama. Please give us your thoughts on power of the 'Obama' brand and how technology affected the marketing of his candidacy. Gray Brooks: Sure, first of all, can you all hear me OK? [Yeah] Thanks for having us here tonight. You touched on a couple of the words in there that I think that are very crucial, but that sometimes they're too easily considered. And one is "technology", and the other is "brands". The people at the top of the campaign did varied work, and I think hired a lot of very good people. But this is my third campaign, and I [...] other campaign. [Laughter] It would be a mistake not to realize that even when we're screwing up, we got by ok because the package we were selling, the candidate himself, was really good. So, technology enabled some revolutionary things, but also it was still a matter of selling something that was already a good product. The other part of it is that, it would be a mistake not to realize how much effort went into the branding. I think the advertising industry was very conscious of, and very, I guess, more knowledgeable about the work that went into the branding of the campaign. Before the general election, we were hiring several graphic designers to focus that exclusively on adding artistic depth to the campaign at every level. On the Web site, we managed to subsume all the print design, all the [...] ads, everything that people saw down to the literature being handed out in mailboxes. We eventually were able to go through these two or three people, so there was consistence. It was based around a design that people thought conveyed a message even without words. And then the rest was kind of adding technology on top of that. But those two fundamentals of having really good product, and then actually truly focusing on brand, in trying to say something that you thought out. I was a huge part of that. Aaron Brazell: I would say also that there was a huge emotional need in the constituency in the American people to have the technology come along to accent the product. I agree everything that Gray said. There was a great product there. The technology really enhanced it, but what really drove the point home was that there was a need for something, and that product and that technology enhanced that, and brought it out. I think any, no matter what it is, you're not going to get anywhere without the technology, and you're not necessarily gonna get anywhere with just the communications side of it in the product. But if you have three of those things all combined, I think you have a dynamic trifecta. Shana Glickfield: In my experience with social media consulting professionally where I advise corporations and nonprofits, and even individuals, I think a lot of people now want the Obama-like results. And I think it's important for marketers to understand that it was a big campaign, as the trifecta was taking place, and that you can have a very successful social media campaign without having the Obama-like results. GB: We definitely want to be over our two lessons we learned here is that it was merely a case study. It was a huge case study in one that has a lot of material to learn from, it takes years. It's just made up of best used strategies. The fact is, it's a mistake to see that something as ultimate, when really, it was just one example. Patricia Mejia: I would add that I think you had conversed a lot of things and also you're first?, you're innovative, so I think from a marketing standpoint, it's important to think about what the next thing is. Timing is everything when it comes to marketing, so I think it's a combination of things sort of lining up. It's like a perfect world in the negative, but things came together because of the timing, as well. AB: You have to drive that point home. If you look at it, it's just not a political panel here, but as an example, since we're in that space already with the Obama campaign, you look back at 2004 with the Dean campaign, they also did many of the things that the Obama campaign did do. They had arguably a great product. I didn't like the idea, but that's a different story altogether. [Laughter] They supposedly had a great product. There was a lot of great messaging there, but the emotional aspect of where the American people were with his outburst, and all these other things that happened just didn't coalesce the whole product, the trifecta - I love that word [Laughter], actually come together and do something where we saw completely the opposite side of the Obama side. MT: Great. Thank you. Of course, we know that each of you blog either on personal or business-related. There's been some questions out there that some think that blogging has jumped the shark', so to speak. What are your thoughts on that? GB: I don't mean to monopolize the time, but people say it's great. DO: So, first I'll say that it's a pleasure to be here. I see a lot of you out there that could be up here, so I wish this could be a roundtable where we all could be talking together because I'm sure that you're doing things that we don't know about, so I'd like to just open that piece of it up if you have thoughts, let's just share them. If I can step back for a second, I would say that it's really important to understand what social media is and isn't. I think a lot of people consider social media to be a medium, but I consider it to be a tool, like a telephone. You don't place an ad in a telephone; you place an ad in the yellow pages, and for me what social media is, is it's a vehicle. It's a tool that allows me to take the expertise that's inside the head of, let's say, whoever we're looking to profile, and share that with the people that need it in the moment that they're making a purchasing decision. So for example, if it's real estate - I started a real estate company six years ago, and we had really competent realtors, but nobody necessarily knows that unless you can use tools like social media to allow that expertise that's in their heads to get to the people that need to know it when they need to know it. So, what I would say about blogging, which to me is the component of social media, is that blogging allows you to do some things that you can't do otherwise. I like to say that Henry Ford would love blogs, because when you get questioned, you've answered twenty times already by e-mail instead of spending 15 minutes composing that answer again by email. Spend three hours writing a blog about it, a really researched in-depth answer; and then when somebody emails you that question, just send them back and answer the blog. You're making an assembly line of expertise, right? So, very importantly at the beginning [...], I would say social media is a tool, not a medium, and blogging is a very powerful tool. You also get great Google lists out of it when you blog with original content, which means that when people search for keywords, you're the one that comes up as a subject matter expert, so to me, blogging is so very pertinent. PM: I would add to that is that blogging is important, but authentic blogging is so much more important. So I think the authenticity people see through the salesy part of trying to sell you something to position yourself. The authenticity is what people are really looking for. They're really yearning for it, because they're kind of like over the marketing. I just had to add that. AB: To go the extra mile there, I agree with Daniel here. Blogging is one of those places where you create content that's going to be there forever, arguably, unless the internet blows up, which is always possible. They're also going to be there, and the search engine's Google, most importantly, is going to find it, it's going to be there all the time. You can certainly refer people to them over email, or whatever. I think one of the big questions about is blogging. Is blogging jumping to the shark? At least this is the side of the conversation I'm hearing from the technology side, it's the question that's posed, it's blogging versus social networks. So your Facebooks, your Twitters, your YouTubes and what have you, Tumblr. Why spend more time writing on a blog when all your costs are going into Twitter? That's the side of the conversation I'm hearing quite a lot. In fact, I don't know how many of you, do any of you know Dave Troy? [No.] Ok. So David Troy is an entrepreneur. Actually, more towards Baltimore, but he's involved with marketing, as well, so I thought some of you might have heard of him. Dave Troy asked a question on Twitter, maybe three weeks ago, "How many of you are blogging? Since Twitter came around, are you blogging more or less?" He was making the assumption that everybody blogged less. I find I blog more, because of Twitter and still sell all that much, but the reason why is you can have all these thoughts out there in social media, and social networks, etc., but, unless you have a place to put that to like really park it, and grow it, and create an audience around. And you just can't do that on social networks. You can certainly share your thoughts. You can share your links, and share your list, this and that and other thing, but it's hard to build community around that. And, if you're working with a product or company, you're trying to drive the product. You're trying to drive some software, you're trying to drive something that creates more sales, and you want to build community around it, because that community is going to turn into your biggest fan [trusts?] So, is it valuable to be out there on Twitter, absolutely. You're out there, you put your thoughts out there, you pick every opportunity, you can't conversate with the people who may be buying your product, may be buying your company, may be engaging with you in business somehow. But, if you really are going to build a community, you're going to need the blog. So no, blogging has not jumped the shark. That was a long-winded answer. SG: Blogging, in my experience, also, a lot of the great [...] that mention SEO[?], I like community building, a couple of other things, but I think the solid leadership comes from putting content out there, and I think a lot of people get stuck with blogging because they think they have to sit down and write this 3-hour think piece every time. And that's not the case. People don't even like to tune into a blog and see all the same text over and over. You think about how to take the pressure off and make yourself a better blogger. It actually takes less time to judge. If you're going to send something to a couple of your colleagues, from a newspaper or video on YouTube, instead of circulating it via email, I would just post it to a blog. It'll take just as much time, but you're really building your blog out. MT: You have a question? Unidentified Female Speaker A: Yes, I have a question. You're all talking about building communities, and so like sending it email around to people you know, or doing it on Facebook or Twitter, will it follow you? I find it hard to understand how is building communities around blogs easier, than building? GB: Just jump in. Part of my answer to you definitely revolves around my students' overall question, and there is a really, really useful plagiarism of Benjamin Franklin, don't live to geek." And it's cute and easy to remember, but it really does get back to the whole point of all this, and that is that no technology is good, or bad, or going to work, or not going to work. It's just another tool, and we're at a point today where we have more tools and more capabilities than we ever had before. But that gets us back to the original philosophical question of, "What are you trying to get done?", and then, "How are you going to do it?" And the technology, like blogging or anything else can help you, right, and if it's not helpful, then don't use it. The only thing that I think matters here is just asking yourself, "What was I doing already?" and, "Can I be even more efficient?" Or, as efficient, maybe, as with some side benefits by using this other thing. And, so, there are many times where you get other side benefits by blogging, as opposed other means without other extra costs and effort. Like you said, instead of emailing everyone in the company, if you post it on the blog, its adding content to your blog without any extra effort. U/i Female Speaker B: But how do you drive readers to the blog? GB: There are two ways to that. One is, if you compared to what you were doing before like sending an email with the content in there, and it [...] around the link, that's just as good. And, so you're not losing anything on the process. The other thing is, the more you write, the more content you create, and the more you do actually adds authenticity, and try to add something that's worth reading. People find that, and that's a great thing about Google, and a great thing about the internet is that quality material rises to the surface literally on its own. PM: One thing I would add is, I think as marketers we really need to stop thinking about us, and start thinking about the people that we are trying to reach. So, if I were you, I would think about what's my target audience care about. What influences them, what do they care about? And so, are blogs relevant? It really depends on who you're trying you trying to reach. If you that the people that you're trying to reach like to find out what you think, and like to, sort of, get into you head before they'll start to trust you, then I think the blog is a very useful tool. The other thing I would say about building an audience around the blog, it can be damn expensive. So, I understand what you're saying about how do you build that community on the blog if you're creating all this content on, why wouldn't you just jump on Facebook and put your original content out there, or put it on Twitter, because it goes to various people? AB: Can I ask a question? Why would it be expensive to build an audience on a blog? PM: It depends on your topic, right? If you're blogging about something like Obama, then surely, everyone is always searching for Obama. AB: You're talking about buying keywords, is that what you're talking about? PM: If you're buying keywords, buying impressions through advertising - that's my opinion. I've seen it, it's expensive to build a community around [Cut off.] AB: [Cut in] I've never done that in my life. I've got the largest business and technology blog in DC, and I've been going at it for five years, and I haven't spent a dollar. GB: I think her point is very valid, and definitely reflects on everyone's company and that is, new media has infinite possibilities for being a black hole that you just pour money down. And it gets back to the question of, if you just think, I don't understand this, but, hell with it, we'll just spend $15000 and get some results, that's a foolish way to go about it, and you're pouring your money down the toilet. Whereas, it's important to realize that the baseline is free, and, starting off with just using these tools in a forthright and pragmatic way doesn't cost you anything. And you can add money to get more results from there, but it's a mistake to just add money and to get more results from there, but it's a mistake to just add money and expect results. DO: And to add to that, it's a very personalized, individualized thing for everybody, it's very easy to blow your budget on Google adware. I mean Google will just charge that credit card, and before you even know it, you've spent 20000 bucks. But, on the other hand, it can also be expensive in time, and not expensive in money. It takes time to put that original content out there. I'm a very pragmatic guy. I have a voice recorder on the table here, and a camera up there, I'm capturing this content. Why am I capturing this content? Because, this was really valuable content. If you think about this, what's all of our time worth? I don't know, $100 an hour, $200 an hour, more? And, how many of us are in this room? This is a very expensive session that we're having together, and the irony is that everyone's going to walk out of here, and all this content would have been lost. It's amazing, I have to think that in 20 years people are going to look back and say, for the first x-thousand years of human civilization, you're telling me that content was just lost out there, with [...]. [Laughter] It doesn't make sense to me. So, I capture the content whenever I can, I have a woman who lives in Washington state who transcribes it for 15 cents a minute, and I put it on my blog. And, I've been able to get a page rank 5 on Google for a domain name, PointAbout, that's been around for less than a year, which is amazing. Google is thirsty for original content. So, you're asking me about driving traffic, that was your original question. And, my answer would be, only one of your goals is driving traffic. Another one of your goals is saving time. If you can write something on a blog, instead of writing it a thousand times by e-mail, poorly, write it once on a blog, well, and send that blog out - a] you've gotten a time savings out of that for all the future people that ask that question, but, b] by putting that original content out there, or even better by capturing content - capture your CEO, or CMO. When I was doing real estate, I would wear a lapel mic, and I would tell my clients, "Do you mind if I just record me showing you homes?" Because there are people out there that have never bought a home that would love to know what the experience is like. [Laughter] And, then I would have a woman transcribe it for 15 cents a minute and put it on my blog, right? Right, and that's a lot of rich original content, and Google will reward you for that. SG: I think we have time, two things that I want to talk about, that I'm not an expert on Google search engine optimization, but I do think we should just say for the audience here, in case people don't know, like Google Juice, the way Google ranks you is based on how frequently your website is updated, in addition to how many times you use those keywords. So, I encourage all of you to get with your web team, if you're not already, or whoever has your analytics, and find out what words people are using to find your site, and really optimize around those. And, a lot of people start their web experience with search. [Aside to panel] I don't know the statistics, do you guys, it's like 90%? [AB confirms it's about 90%.] So, when we're talking about like a pragmatic strategy, I would definitely say start with your search terms and [to DO], do you want to talk about Google? DO: I just going to say that Google is very smart about it. They even know of the domain name address, where the domain name was registered is the same, it matches up to the address on your website, they will give you credit for that, because that shows that you are actually the owner of that domain name; it gets down to that level of detail. So, Google SEO - search engine optimization should be for any business, I think, a key part of your initiative, because that's like buying real estate in New York in 1900. You can rent that space through ad words, but if you put the time and effort now into buying that space, you get Google to like what you're doing now; it's going to pay off for the next 100 years. GA: The one thing I was going to just put on top to what the gentleman said a couple of times before was, he is incredibly right, because one third of new media as a whole is content, content, content. And, you're crazy if you have a company blog that is updated once a week. And you're crazy if you have a Twitter feed, but, don't actually don't create anything new, you just link to what you're already, [changes thought], fresh content is crucial. And the fact is, he's ahead of the curve on all this, but every person in here should blog and say, "Today I went to this forum, and here's a link to the video." It's connecting to what someone else has done, it's good content is right behind having you done[?] the content yourself. MT: Let's bring us into organizations, and it's interesting that there are still companies that still convincing of having a social media plan. Us, as marketers, we have some executives you can to talk to until you're blue in the face and try to convince them to change or consider a new idea. But those companies are for those individuals that work for companies that are adverse to this social media craze, how can you convince them that this is good for their business? AB: I think all you got to do, and I'm going to avoid doing the normal, somebody's going to bring up Zappos, someone is going to bring up Dell, somebody's going to bring up Southwest Airlines, but, I think [Some bantering and laughter]. I think if you look at the [changes thought], once you get away the head of the tail of the big companies that everybody knows that using social media, I think there a whole lot of really great examples of companies that are doing it really well. And I wrote a blogpost on my blog the other day, just like the greatest experience I ever had with customer service, via Twitter; and that was with my bank, 1st Mariner Bank, in Baltimore. I was having a really bad day as a result of them, and went ballistic! [Laughter]. Their customer service guys on Twitter reached out to me and through a couple days of exchanging direct messages, and him going above and beyond wearing more than the minimum pieces of flair [Laughter]. I'm telling you, it was great example. You take a look at that, and now this guy is getting all kind of attention outside of my blog, outside of 1st Mariner Bank, there's a number of other posts that have been written about my experience, and all of a sudden you start seeing a pattern that there's a direct line that goes from the engagement in social media to the ROI that the company wants to have, every company wants to have. And I think that, when you're talking to the executives, when you're talking to the people that make the decisions at the top, they want to know where is the value for the company. It's nice that there is this experience; it's nice that you can talk to customers, but how does it actually help us run a business and make money, because everybody wants to make money, and that's the end of the day. PM: And more and more marketing is going online, I just looked at some Forrester[?] today that was looking at the growth in interactive, where it's coming from, it's coming from traditional channels. The emphasis is there, the audience is there, so I think it becomes a lot easier when you start to see your competitors being there. As a business-to-business marketer who has always been inside companies having to sell ideas before they actually get approved, a lot of times people will respond best to what they're seeing their competitors do, or where see an opportunity where their competitors are not. A lot of the time that I spend in my job is looking at what our competitors are doing, or not or doing, so that we can do it first. SG: I'd say Pew Internet and American Life, they do all the demographic research of who's using social media, and I think that's really important information for executives who haven't been convinced yet, to really dissolve the myth that the blogger is a teenager in the basement. And, I think the fastest growing demographic right now on Facebook is women 50 and older, and it's growing by hundreds of percentages a month, and we just had the officication of Twitter [Laughter]. We're also absorbed at who's using it - it's our world. But, I think people, who it's not their world don't really realize that is where the majority of people are, and you have to go to where your consumers are, and that is Facebook and Twitter. DO: I'll just use a couple of real examples. I'm a very pragmatic guy, right? So, as an entrepreneur you have to be really pragmatic. PointAbout is a company that makes Ifonets, we actually made an Ifonet for 1st Mariner, but, I'll use real estate, because it's such a backwards industry, nobody even knows how to check e-mail in real estate. So, it's really easy to get progressive in real estate. And, I'm a big fan of YouTube, I use Vimeo now, but, it's just like YouTube. I am a big fan of, for example, I made a lowball offer video, which is just 'drodio.com/lowball.' It's our real estate company name .com/lowball. And, I walked potential clients through what the steps were to make a good lowball offer. And, there are some things that we do that are different from norm, or whatever. I can't tell you how many clients came to us and said, "I watched your video and I want to work with you." It was a warm referral lead, the thing that realtors will kill for. This is very significant, we had cold marketing leads coming to us as if they were warm referrals, because they felt like they knew what we were capable of. Again, it's getting the expertise out of your head, and into the hands of the people that you don't want making that decision, so I think the really way to start is with something like YouTube, and to take a video of the product manager, don't take a video of the PR person, take your video of the product manager at your company who has lived and breathed that product and knows it in and out. A very real video, into what you're saying, does not marketing speak, don't edit it, don't make it look all glossy, make it gritty and real, and put that up on YouTube, and then send people to it, or use Google search engines and officications[?] who can find it, and you will find that's a very easy way to have a small test, and all about making the food before you build the restaurant, don't spend all this money on building the restaurant and nobody wants to eat the food. So, small tests, and you can then show your boss, "Hey, I did this video and we got 20 sales out of it." And it's a very trackable thing. MT: For those that work for organizations, if you don't mind me asking, that are still on the fence, or adverse to it, what's the reason? [Some disjointed comments from the audience.] U/i Female Speaker C: [Extremely poor audio.]The reason is the RY[?], there has been a lot of research with Twitter and other social media[?] that talk about the RY to try to shield my company's [...] officers. [...] field marketing has a 45 [...] RY [...] the numbers go up [...]. Social media is not there, and, so, even though we have a lot with Twitter, and [...] everybody will comment, but the weak [...], and everything, I personally maintain it's great, but my CEO [...] and he [...] numbers wise . So, I would say that probably is a lot of [...], we want to get the highest return on what little resources we have, [...] social media [...]. DO: See, I take a big exception to that, and it's not with you, it's with your CEO. I will call your CEO personally and talk to him or her [Laughter.] Because, the cost is zero, it's an intern's time. And, you know what, the intern can do it the best that of everybody at the company. So, take the unpaid intern and have him do a small test - a very small pragmatic test. PM: I disagree with that. I tell you. I think it depends on the business, right? And so, in some businesses and certain niches, it's fine. Your intern's going to do a great job of representing your brand. I think with other businesses where you have a complex product that you're trying to sell, or complex solution that you're trying to sell, it's something that needs to be bought in at the top level, because it requires the involvement of high-priced people. And that's just been my experience. So, looking at it from different perspectives, small business - large business, business - consumer versus business-to-business, it really does matter. AB: I can see where you're coming from, and I've already fought with you about it today [Laughter.] What I would say is that I find it really interesting that your CEO would put more stock in ad words that he would in social media engagement. Cause, at the end of the day, I hear the argument that he is making. At the end of the day, you're putting your money into ad words and, you might get the results, what are the results? So many impressions that actually turn into an actual sale. And, these are rhetorical questions, right, so I'm asking not asking you directly. What I 'm saying is you can put $5000 into a campaign and never get a sale out of it - that's trackable, Google delivered those impressions, but is that actually a valuable investment when there's no sale, on the other hand, like an intern, or somebody, anybody in the company getting out there and talking to people like they want to be talked to in the effort and hope that you might get a sale out of that, probably has a much higher chance of actually converting than, instead of following ad words up there and spending thousands of dollars. GB: So, I think that part the confluence of where I believe both Aaron and Patricia are right, has to do with, I've been advocating for a very realistic and down-to-earth investment of money in the media. I do believe that it's worth investing in, and I believe it can be done well. He's right, that when it comes to the financial investments, well, part of it's very minimal manpower, and very minimal financial investments, it started. The important question though is whether or not the upper echelon and the leadership, as a whole, are willing to invest in the media, personally. And if you have an organization where you tell the unpaid intern, 'Hey, go do this, ok, how many [...] just go do it", and no one talks to that intern, and they attempt it on their own, you're going to have terrible results. And the question is, if that intern is allowed to, once a month, take a video camera and have 30 minutes of the CEO's time to do a direct-to-camera video for the YouTube Channel - that's going to work, and that didn't cost any money other that the CEO's time. But that's the problem is while these organizations where the CEO says, "Yeah, but I don't have time for it, my managers don't have time for it. We want someone to go do something." MT: Let's take a couple questions. U/i Female Speaker D: I work for a large government contractor and we are just now, we just hired a social media manager, and started a YouTube channel, but it's taken a long time and it's a fairly sizeable company. And I think the resistance is security, as she mentioned. But also, our clients are government decision makers, and they tend to be[?] older, and the belief is that social media is for a younger generation. So, what have you found in your research and your findings that I can take back to my CEO and say, "No, there is research that shows this attracts older government decision makers." PM: So, Forrester just put out a report, a social technographics report. So they look at different demographics, and they map their social behavior. So, they start at the most engaged all the way down to people who are just spectators or uninvolved. And that's the kind of data that you could put in front of a C-level person, or director-level person. They want to know what's the survey data telling you about the kinds of people that you're trying to reach. I would definitely recommend looking at something like that. [Clarifies for questioner that the organization is Forrester Research.] DO: Also, Pew Internet just recently did a talk at the Web Editors Roundtable which is a great event. I captured the content, so you're welcome to come see it. It's on the site, pointabout.com - just search for Pew, and you'll find that. It's called, "The Nine Tribes of the Internet", and it talks about very specific slicing of all the different types of users, and what the growth trends are, or, they're not all growing, but, many of them are. A lot of them do skew, just actually like [...] was saying. And Patricia, just for the record, I'm not going disagree with you at all. I completely agree with you. In the best of both worlds, this is a top-level down strategic thing that's being done, but I feel like we're all kind of sneaking out of the house in the middle of the night. It's like you have to go show some small successes in order to be able to get that big budget, and I guess that was my point. MT: Let's take two more questions on the topic. SG: I think one thing that we haven't gotten to that could reach your audience is that journalists are watching social media, because that's where the buzz is coming, and even if it's not reaching your consumers, it's reaching the people who write to your consumers, who are still reading the paper on paper, probably. So I think you can relationship build with journalists directly, you can keep story ideas, and position yourself as a thought leader, via Blogink, so that when it comes time for they need an expert for their story, and they either Google, or they've seen you Tweet about it, then they're going to reach out to you. So, that's our long term. U/I Female Speaker E: And that's what exactly we've done. We've used it on a PRN, but not so much in the market. MT: Carrie, in the back, do you have a question? Carrie: [Very poor audio] I've noticed with some companies that the push for ROI comes [...] in that it vies with traditional things like advertising and public relations. It's actually not, [changes thought], you can't always make that tie from placing that ad to placing that sale, and [...] metric. So, they still do it, because they've always done it. And, the social media is damned[?]. And, I'm wondering, take the part that says that's part of it, and also, maybe some tools to overcoming that problem[?]. GB: One thing which I think is to your question, and to the question right before it, it's worth trying to double[?] show them surveys and results that have been done by their people, but it's incredibly important to be tracking the work you're doing in the meantime, it's sourcing everything you can. And between Google Analytic and YouTube accounts, they now have analytics built into it that you can actually see the sex breakup, the age breakup of people watching your videos. On all these things you can be tracking what's going on in the meantime. And, you can be saying, "I know that someone came to this part of our website and bought this from one of our ads, because we can track that." And, it's of incredible importance to be trying to convince these people by saying, "I've doing this for the last few months and here, I can show you quantitative results." And try to get that from your TV advertisement, department, or you old media, because you just can't. Not like this. U/i Male Speaker A: I have a comment on that, too. You can do targeted access campaigns. So, I'm a big believer of doing a lot of testing, as well. That's what I was going to tell you. Google allows you to target by domain, target by geography, and target by time of day. So, if you're trying to reach government influencers, 8[:00]-to-5[:00] from D.C., from Punjab, Thai domain names, and whatnot. [...] if you do a lot of really small parts to see what kind of traffic is running to your site, outgoing [...]. GB: Just the one thing that already enforces that, and I forget about this, but, ad from Facebook? You can target it to say, I really want these people to see this if they work at the department of whatever, and such, or, I want people to see this if they are literally on a computer in the Capitol Building. You can target like nobody's business. DO: You can also get on the content side. Google offers a great set of tools. How many people in this room are doing AB Multivariate testing, for example? I not surprised the answer's zero, so AB Multivariate testing is for every piece of content you have, every web page you have, you have the a] control, and, the b] contender. And Google offers this for free, where you can say, "Google, I want you serve up about a 50-50 ratio of what I think is the best page, and then what the intern thinks is the best page, or whatever. And let those two pages 'duke it out'." And Google will tell you which one is performing better, and you just keep repeating that cycle. You can increase your conversion rates from 1% to 7% on a page by doing that. Which is very significant, you just increased by 700% the number of people that are contacting you off of a page. So, there are tools you can use like that. Also, just very quickly to your point, there are some very non-threatening things that you can do with social media. You're saying that you're already, for example, interviewing the CEO, or your doing a blog list. Start, transcribe it, and turn it into text. All that great video and audio, Google can't see that, it's opaque to Google. So, you've just spent all this time creating all this great audio and video, but you're not getting any Google credit for it. Spend $.15, $.25, $.50 a minute for that on Craigslist; you'll get tons of responses from people willing to transcribe your content into text. Put that below the page, but, the video and the audio, the transcription is not for the humans - it's for Google. MT: Let's talk about 'Buzz', and what is Buzz tracking, and can we honestly measure that. How can you honestly measure that? AB: I think everybody's going to say Twitter. Hash Hacks[?], but, I think that's also kind of a game system, and I don't think it's a very good system. But, certainly, although I don't know if there's an answer to that, I don't know if anyone here has an answer to that, you can probably patent it. But, there are all kinds of different [changes thought]. NY Times has BlogRunner, which is sort of their top news in a variety of different verticals. It's not just NY Times content, they track blogs, and they track other things, as well. In political space, there's the media randoms, and the technemes, and the Technoratis, and all these different sites that will sort of give you a picture of what people are talking about at the moment, with Twitter you have the hashtag and the trending topics. I don't know if there's really an answer to that. SG: How many people in here are familiar with the concept of the long tail? The idea is that the top 10% of, like, say, blogs are getting 90% of the readership, and then there's long tail of like 90% of the blogs are only getting 10% of the readership. And, they are these very niche communities. But there is a lot of value, and there are books written about this, and it's a big popular theory in social media. There is a lot of value in the long tail, and that's where people even see the internet going with trends with hyper logo[?], and things like this, the way we are able to do all this targeting. So, you can generate Buzz with a very small community, but it can be a very important community to your brand, or your mission. So, it goes back to the Obama-like results, that are graded on a national level, but it really depends on who your audience is, and who you're trying to reach. And it could be very easy to get the attention now, it's like, you can't really get the mommy fear, but maybe just the mommy fear who knit, too, or has a child who's dealing with an illness, and they're doing a lot of doctor's visits, but that may be a very key audience for you. So, the idea is maybe don't worry about getting the biggest Buzz, but really getting a buzz with your niche audience. DO: So, two quick thoughts - one about long tail, and the other about Twitter. First, Twitter. How many people have an RSS feed of Twitter searches set up right now? So, three people. Alright, you can do this when you get home tonight, and this is awesome. I'll tell you, this is going to change your life, maybe. [Laughter.] So go to search.twitter.com, and just search for anything, search for your name, your company's name, maybe a product that you're interested in, you know, 'F22 Raptor', whatever it is for you defense folks [Laughter.] And then, on the top right there's a little RSS icon which most of you, do you understand RSS? Right, so you can click on that and you can come into your e-mail, or into an RS reader - you will be amazed at what you find. The interactive manager for Coca-Cola was doing this, Coke has this Coke Rewards thing, and I asked her, her name is Carol. I said "Carol, are you tracking what people are saying about My Coke Rewards?" She said, "No, we're not." I said, "You should be, let's do it!" [Laughter.] And, people were like sharing codes on Twitter, and bashing it, it was very enlightening. So, that's super simple, it's free, it takes a second to do, it'll make you look like the smartest person in your office. You also get the news first when it's something that is pertinent to you, so that's very user [cut off.]. AB: You can also embed it. You embed those searches in Twitter. You use Twitter.com, you do your search on the sidebar, and then you can actually save that search and keep going back to it, as well. DO: So, it doesn't really answer the Buzz question, but it, at least, let's you personally see about things that you care about quickly. PM: Well, there are also tools, like Metrics, and I think, Nielsen, either they bought Metrics, or they have their own competing products that actually look at brand perceptions, and so, will look at beyond just what's happening on the web, overall perceptions with the brand, with the social media being a component of it. So, that is a tool that's out there, or a capability that's out there, that if you're in an organization that's very brand sensitive, very focused on what people are saying about you, you may want to invest in something like that. GB: Just one quick thing. I agree with using all of these tools. My umbrage connect comes back to the original question, and I'm not a big fan of Buzz, intrinsically, because in my mind, Buzz is ephemeral, and it's too ghostlike to just chase it for its own good. And, I think it's a mistake to not be focusing consistently on the question of whatever we're doing right now, already; can we use these tools to get an extra 5%? Can we use it to become more efficient with what we're already doing, and see it as a more down-to-earth disimprovement[?] of your results, as it is? MT: What were you going to say about long tail? DO: Do you want to hear about long tail? [Laughter] Are there any realtors in this room? Can you raise your right hand and say, "I will not share this with any realtor?" Seriously, just raise your right hand, "I won't share this with any realtor!" That was your let hand, by the way. [Laughter] So, when you Google search for any home that's for sale in the D.C. area, D.C. Virginia, and Maryland, my own real estate company typically comes up number one in they Google search results. How do we do that? We use the long tail. There are probably only one-to-ten people searching for any specific property, but because we were able to expose a database of content and get Google to spider that content, there are apparently 1000 people a month that submit leads off of those terms. This realty company gets 1000 leads a month from exposing a database. And, so the point is, to the long tail point, if you have a database of data that you can expose to the internet, and you can make it so that there might only be very few searches for each of those terms, but there are so many of them. And also, part of the theory of long tail is when people are searching, for example, for a specific property address, they've done their research, they've probable driven past the house or they know the street. People tend, on the long tail, to be much more serious searchers. If I'm just searching for Alexandria homes, I might not be nearly as far along in my home searches if I'm searching for 1234 Main Street. So, if you have a database of content, you can use the long tail to really drive a lot of searches to your site. MT: Let's talk, this is kind of a two-part question, a personal question, but, social media as this tool is fairly new. How has it helped you in your business? If you could highlight maybe one major success, and you draw it back to the applications that you have, that you utilize today; and the second question is, out of all these social media applications, what is you favorite, and why? Gray? [Laughter] This may be easy for you. GB: With the campaign, everything was, media was an equal player at the table to every other department. And, its success story was enhancing the finance field, political operations, every element that was pretty [..] in the campaign. I got more done because of media, and that's it. And, it was not worth it, intrinsically, it was worth just a management part that was already there. SG: I would have never expected that this would be my career. I was a lobbyist, and I went to law school, and I am a non-participating lawyer, social media consultant, who blogs about D.C. [Laughs] So, it was really unexpected, but I think that I just really loved tinkering with the tools world, experimenting and really engaging in community, [Changes thought], I knew all these people from the social media community, the tech community, even if we only Twittered at each other, it's just grown my network exponentially. And, my favorite tool would probably be Twitter. PM: Siteworx is different from others here, we do website development. I'm a B2B marketer. I think for us, what has helped us be is relevant. So, we have a lot of very technical people in our organization that talk tech all the time. From a marketing standpoint, I don't want to talk tech, I want to talk business problems. So, I want to understand what people who are in our space care about, it's helped us, in my mind to be more relevant. And I will say Twitter, but Twitter Search. Oh man, it's just awesome being exposed to what people are thinking, and from a marketing standpoint, I spent my whole career of trying to get into peoples heads, right? This is like right in their head, like all day long, so I think that to me is the best tool. DO: So, a great story about Twitter, because I think a lot of people are trying to figure Twitter out. I know that I'm still trying to figure out. But, I think the greatest thing about Twitter is an elementary teacher would Tweet what was going on in the classrooms to all the parents, so that when their child came home, they could, instead of saying, "How was your day?", and not getting a response, they could say, "Hey, how was that project in Christopher Columbus?" So that's a great example of the power of Twitter. Twitter Search, I completely agree, to me is the most powerful part of Twitter, it's not sending Tweets out, but it's seeing what other people are saying. I think I've given a lot of examples. I got to say that this idea, like Gray is saying, that social media is a tool, it's magnifying the others things that you're already doing. It's taking that content and distributing it out to the people that need to see it. I feel very strongly that's how you have to think about social media - as a magnifying glass, maybe that's a great way to say it. AB: Well, if it wasn't for social media, I'd still be working for one of the companies you work for. [Laughter] So, I'm self-employed, I have my own company, I built my company around social media, around WordPress, specifically, and added to my [...] as well, in there. And, if it wasn't for my engagement, and, honestly, social media has leveled the playing field for many people. It just allowed us all to compete on levels that we weren't able to compete on before. If it wasn't for that, then, I wouldn't' be where I am today. So, certainly it's been very important in my career and my life. I will also say Twitter, it's the best tool out there. Is that the trend? [Laughter] MT: Well, speaking about Twitter, maybe, do all you think that it can survive without having to sell any ads? Is it going to stay? AB: Oh, this is really a good question. Actually, we run a Twitter business model, that's cool. That would be a great conversation, actually. I think what they're probably going to end up doing is not selling ads, because the ad market is, kind of 'eh.' And, too many people were getting their Tweets not through, 'Tweetered up', huh? Through TweetDeck and Seizement[?] Desktop, and, whatever your household variety Twitter climate[?], Twitterberry, whatever, they're not going to be able to thread ads in there. So, don't think that that is really the way it is going to probably go, but, partnership of carriers. How many of us use Twitter on a mobile device? Ok, yeah. So, if AT&T, or Verizon, wants to start taking a little bit of a Twitter tax out, I see that as a way for them to make money, and possibly, Twitter'd make money that way, as well, in priority. But, that's net neutrality, and that's not really what I want to hear. [Laughter] DO: A great example of what one of the founders of Twitter mentioned, they've been very tightlipped about they're going to make money. But, after a lot of prodding, and I think, and all things, D Conference, the guy said, "All right, give us an example." "Imagine the flower shop has flowers that are going to be dead the next day, they can send a Tweet out saying, half-priced flowers if you come by before we close today." So, the stuff like that I think would very, very powerful. GB: I'd like to pursue a bit of the Craigslist model. I like the fact that I don't have to pay the post from Craigslist. And the way they do it, funny, if someone wants to have a business model based around posting on Craigslist, then they charge a very nominal fee. And, so you can make it so it's free for everyone who's at home, everyone is just an individual. I think we want to actually organize this small, and there are a lot of possibilities therein. If you charge something that's incredibly nominal, and then the other part that's really overlooked here is the amount of data they accumulate is enormous. And, for the first time in history, we're able to take enormous amounts of data, and really start crunching it in very interesting ways. If you can start actually drawing graphs and very rich details about how Coca-Cola sought you out, the potency there is enormous. DO: Speaking of kind of keeping t
Using the iPhone's Podcast app, I'm able to listen to thousands of podcasts in the car. It's priceless (and free), and a way to soak up knowledge I otherwise wouldn't have time for.
Some of my favorite podcasts are (links open iTunes):
- This American Life
- WNYC's Radio Lab
- American Public Media's "Marketplace"
Using the iPhone's Podcast app, I'm able to listen to thousands of podcasts in the car. It's priceless (and free), and a way to soak up knowledge I otherwise wouldn't have time for. Some of my favorite podcasts are (links open iTunes): - This American Life - WNYC's Radio Lab - American Public Media's "Marketplace" - CBS' 60 Minutes And the best part is that because the iPhone can play podcasts at 2x speed, and since "60 Minutes" is really just 42 minutes without the ads, that means at 2x I can listen to a full 60 Minutes show in just 30 minutes (interestingly, "2x" is actually 1.5x... I guess 2x sounded better to Apple). Amazing.
I was recently on a social media panel for the Northern Virginia Association of REALTORS, on behalf of DROdio Real Estate. The panelists were:
1Daniel R. Odio
I was recently on a social media panel for the Northern Virginia Association of REALTORS, on behalf of DROdio Real Estate. The panelists were: 1Daniel R. Odio 2Danilo Bogdanovic 3Heather Elias 4Frank LLosa A video of the event is above. Transcription of Event: Welcome everybody to the social media panel. My name is Ainsley McDougal. I am the online communications manager for NVAR. Let me tell you a little bit about the speakers today. We'll start with Danilo Bogdanovic. Danilo is a member of the Information Management Committee at Virginia Association of Reatlors. He is a Founding Member/Advisor at Center for Real Estate and Social Technologies (CREST) and a Real Estate Consultant and REALTOR at Market Advantage Real Estate. 00:00 Heather Elias is a full time Realtor with Century 21, Redwood Realty in Ashburn. She writes about Loundon County Real Estate on her blog: www.localmusings.com and she writes about local market stats at www.localmarketstats.com Heather has spoken about social media in RE Tech South in Atlanta, Georgia and various real estate bar camps across the country. She writes for the Virginia Association of Realtors blog which is www.varbuzz.com as well as forwww.agentgenius.com. She has a heavy emphasis on online marketing and social media usage. Roughly 75% - 80% of her business is generated from these efforts. Heather graduated from the University of Maryland with a degree in Journalism. 00:58 Next I will introduce Frank Llosa. He is the principal broker and owner of www.franklyrealty.com He is a graduate from the university of Virginia at School of Commerce. Before entering Real Estate, Frank was a professional photographer with photos featured in National Geographic Traveler, Time Life, Esquire, GQ, and Petersons Photographic. Frank then went on to create two successful dot com sites for real estate. He began his career as the MBA Rookie of the year for 2003 in sales. Just last week In Man announced that he was the finalist for two awards, one for his blog entitled "Trust Me, I'm a Realtor," and for his www.franklymls.com site which was the first wiki mls site and his blog has been quoted in Business Week, CNBC, and dozens of other publications. 01:59 Last but certainly not least, Daniel Odio who is the founder of DROdio Real Estate, Inc. which is a real estate brokerage. He is the founder of CardÃ©a Commercial Real Estate Advisors which is a commercial real estate brokerage specializing in replacement properties for investors. Daniel is a registered securities representative series 22 and 63 licenses. He has been featured on CNN, CNBC, TLC,The Wall Street Journal and many other publications for his innovative use of technology and social media in the real estate business. Daniel is the creator of www.IdealRoute.com which has been branded by VAR and it's a tool that allows you to use the most efficient route when showing properties. 02:49 Let me start out by taking a poll of the audience. Here is the first thing we want to know: how did you all find out about this? Could you raise your hand if you found out about this from twitter? A couple of people. Did you all get the e-mail we sent earlier this week that prompted you? OK. What about Face Book? Did any of you get the Face Book invitation? A few of you. And what about www.nvar.com? Wow. We're going to work on our website. 03:22 Before we begin with the different topics that we want to talk about, the panel would like to know how many of you use, primarily to communicate with your clients, e-mail that is your primary form of communication? What about texting? What about phone calls? Still tried and true method. Instant Messenger? And who of you are currently blogging? How many of you use Twitter? Those of you on twitter today can see that we have a has tag. What you see on the screen back here is the stream for everything that's being posted to the hash tag. You'll see several of the panelists put things up on there and if you have a question you can put it up on there. I'll keep monitoring it and see what happens. Who of you uses You Tube? Now let's differentiate. Who of you uses videos on your websites? One hand. Who uses Active Rein? Is there anything else that I didn't cover that you all are using? 05:23 All right. I think we're going start off pretty big and heavy. Everybody is here to hear about social media, so do you all actually find that there is a return on investment for use of social media? 05:40 Daniel Odio: Let me start by saying I'm really excited to be here with you guys because there is so much opportunity for you to use these tools that we live by to really increase your business. It's a very exciting thing to be here. Specifically for the ROI question, absolutely. We wouldn't be dedicating a lot of our time to it if it wasn't really, really effective. I'm sure we will talk more about that. For example, our firm hardly ever does any traditional marketing, i.e. flyers, and that sort of thing, postcards, we do it almost all electronically now. That gives you an example of how effective it is for us.06:37Heather Elias: Obviously in the opening remarks she said that I generate about 75% - 80% of my business from my social media efforts so obviously I'm seeing a return on investment. I view it as a tool to reach out to my clients, but also to prospect for new clients. Definitely like Daniel said we wouldn't be spending an inordinate amount of time if we weren't seeing real active business from it. 07:05 Heather? Is that 75% - 80% return clients or new or combination? 07:11 Heather Elias: That is newly generated business via social media efforts. I've been in business for five years so I'm at the point in my career where I don't have a lot of repeat business yet, so I'm using it as a way to generate new business. That's all new business. 07:34 Frank Llosa: I'm in the same boat as Heather. 75% of my new business comes from social media or online efforts. I don't do pretty much any direct mailing, post cards, print ads, none of that, all the traditional marketing. I know it works for some people. I came from a company that has used it for 20 some odd years and it's still working for them. For me that's just what I prefer. Not to say that you can't mix the two. I believe the return on investment is greater because the cost of newspaper and paper is just going up versus everything online. Social media is actually cheaper if not free already. That's why I think the return on investment is much greater. 08:26 Danilo Bogdanovic: I also question absolutely but with my blogging it's so integrated into my business I can no longer segment it down to see what part of my business is that. It's all part of it. You don't say what percentage of your business is your phone. Once a week I'll get an e-mail that says I just finished reading two or three hours of your blog and I want to use you and I want to use you next week. They're asking me to sign an exclusive agreement because because I have a blog saying why they should sign an exlusive buying agreement. I reply to their e-mail right away and so it changes the way you do your business. 09:18 Daniel Odio: If it's OK I'd like to just add onto what Frank is saying and define what social media means to us. If I were sitting in your shoes and if I hadn't been using it, I would be curious as to what exactly it is. So maybe I'll just start with that and then we'll all add in. Social media is a tool like the telephone is a tool. You have to think about it as a tool. It's not some crazy, not understandable thing. Just think of it as another type of telephone. The way that I approach social media is by really focusing on the content. What I mean by that is we are all experts with our profession. We have so much content inside of our heads and it's so hard to get that content out of our heads and into the hands of the people that need to know about it when they're making a purchasing or selling decision. Social media is that vehicle that allows us to communicate the expertise that's in our heads and put it into the hands of the people that need it while they're making that choice. That's the beauty of social media. For example, at www.DROdio.com/lowball there is a video that I spent an hour and a half putting together; longer than I would ever spend talking to a client about a topic if I were meeting with them. I really put a lot of thought about what I wanted to say into that video. A lot of new clients that are very price-sensitive I just sent them that video. That's my expertise from my head transferred to You Tube so that clients can now get it 1000 times over and I only had to spend an hour and a half once. So that's an example of using social media like Frank was saying writing two or three hours on a blog about things he talked over with a client and then 1000 or 10,000 people can read that blog over and over again. It's really working in your favor. 11:07 Frank Llosa: It's not only the 10,000 people that can read it, but also the three people that would want one hour of your time for you to explain it to them one on one. So it's two different audiences. One is like the random surfer that finds it and two is someone who asks a question that requires a long answer. You have to then spend ten minutes on the quick version or one hour version talking about the pro's and con's or what we do it spend about eight seconds sending a link to something that I wrote that talks about it that took four or five hours to write and is in depth and updated. Initially they might be put off, "You sent me a link. How impersonal." But when they actually go to the site and read it they understand that I wouldn't have been able to write that e-mail from scratch just for them. 12:07 Danilo Bogdanovic: I'm going to take onto what Frank said. A lot of people may wonder how long do we spend doing this. I'm not a writer. I don't know how many hours. This of it this way: in a conversation about short sales, you could probably talk for four hours to somebody asking a question about it versus taking two to four hours or even longer if you're just starting out and worrying about how to write, but when you have enough stuff posted, you just send them a link. That's true for any and all things. How's the market? Funny you mentioned that. I just published a blog about that yesterday. Here's the link. You're spending time up front, but in the long run you're actually saving a lot of time so that you can show property and do things that truly translates directly to money and then this brings the clients in and you get a following from that. People start reading it. I'm sure Frank and everybody here can attest that a usual e-mail or phone call will be: "Hey, I've been reading your blog ..." You have no idea that they're out there. They're just kind of watching you. Not like Big Brother. All of a sudden they call and they say: "Hey when can we go and see properties. I have a pre-approval letter from XYZ bank, I'm good to go, I know what I want, what are you doing this weekend. 13:30 Daniel Odio: The craziest part about it is that it's like a warm referral. They act like warm referrals. These are cold leads that are acting like warm referrals because they've been reading about all this stuff that's been inside your head. 13:55 Heather Elias: When you walk in the door and someone has had the time to look at what you've put online whether it's video content or a twitter stream or a blog, they've already sort of been introduced to you so you don't have to put your expertise forward in the first 15 minutes you're in the door. They already have a pretty good idea about who you are. A strict definition of social media from my standpoint is it's another way to meet clients that I otherwise wouldn't have had an introduction to whether it's someone who e-mails me because they've been reading my blog or if it's someone who is looking for help in buying or looking to relocated to the area. Those are people that I would have never met if they hadn't read my blog or found me via twitter or something along those lines. From my standpoint it's a means of communication. It's no different than having a conversation with someone you just met at the grocery store. You just have to have a computer. 14:58 Daniel Odio: If there is one thing that you take away from this conversation today from my perspective it's just that this is supremely accessible stuff. There is no cost or very low cost. Everybody in this room can walk out today and go do a You Tube video today and get that information out of your head and into the hands of the people that need it. It's very, very doable stuff. So that's my hope that you leave today feeling empowered that you know how to do this. 15:25 Danilo Bogdanovic: Just to touch on what social media is, think of it this way, media is a way of basic communication. Rather than the Chamber of Commerce meetings, rather than the telephone, rather than going out to happy hours and luncheons and dinners and meeting a friend of friend at a cocktail party or a kids birthday, those are all ways to communicate and we've all been doing that for years. Now we're just taking the same type of communication and we're just putting it online. So it's the conversation you've always been having, you're just doing it online. The social aspect of it is - first you start doing this stuff and then, all of a sudden, people start commentating and reading. Then you engage in conversation online. That's really the social aspect of it. So that's basically what social media is, at least in my opinion. It's just a different means of communication doing the exact same types of communication as you have been for years. 16:28 Frank Llosa: I see it as everyone having their own HGTV channel and you're the host. Everyone is watching you like they watch once a week and you are driving the ship. You become the CNN. They go directly to the source that CNN is asking which is you. One might ask: well why are we telling you guys how to get on social media because then you might be competing with us and taking away our readers. It doesn't work like that. The more content that you put out there, the more knowledgeable consumers are and the more likely it makes them to buy because the biggest hindrance to buying is information, I think. So the more information you have the more likely they are to get off the fence. Also the more you write, the more people there are reading, the more content there is out there which makes them more likely to read out stuff. So it all works together for the betterment of everyone. 17:21 Heather Elias: Here is the great thing too: when you put yourself out there if it's in a blog or whatever vehicle you're using for doing that, that puts your own voice out there and that's why it's not us teaching what we are doing. It isn't a competitive thing because no one else can be me just like no one else is going to represent you out there. You will attract clients that want to work with you. They're going to respond to what you're writing and that's what's going to cause them to email you. 17:52 Ainsley McDougal: So if I could put a caption around what you all just said basically social media regardless of the tool that you use whether it be Face Book or Twitter or blogging it just means that you're putting yourself out there for whoever to read it and whoever wants to follow along can and that's a way of communicating not only who you are as a person, but the institution and experience knowledge that you all have gained through your real estate career. 18:24 Daniel Odio: Just to put a finer point on that, it's very importantly not just existing clients, but it's those people making that purchasing or selling decision. So I always say it's getting that content out of your head and into their hands. 18:38 Heather Elias: You could view it as having a store that's open 24 hours a day and that blog is my store front. Somebody might see something they're interested in so they're going to shop a little bit. It's not a product, but it's the product of my expertise. I don't have to be monitoring it constantly for someone to come on and find me. 18:55 Daniel Odio: Just to give you one example, who here works the Herndin market where we are now? 10 of you. How many buyers and sellers are there in Herndin right now looking for property at this very moment? 50? 500? Why don't they know that you work Herndin. They should know that. That's what social media allows you to do. 19:33 How do you start a blog? Everybody has a website. How do you cause it to have a blog? 19:39 Daniel Odio: We're going to get into a lot of the details on how to handle the specifics. I don't know if we want to structure that answer. 19:50 Heather Elias: We'll get into the specifics later. Ainsley McDougal: I think the next thing that I want to get is how did you all start? Before you ever got into blogging or Twitter, how did you all start? What did you choose to begin with? Did you already know? Did you have an idea of where you wanted to start or did you just start? 20:16 Heather Elias: I sort of fell into it and it grew. I saw a few people raise their hands and say they were blogging with Active Rain. That's where I got started. I started writing there and I think my Twitter account came after, but I would say starting the original blog on on Active Rain was how I got started. Danilo Bogdanovic: The question is: Do you have to be a good writer and the answer is absolutely not look at Frank! That actually ties in with what Heather said. I started out blogging. That was my first thing before Twitter and all this other really cool stuff now. I was the absolute king of run on sentences when I started blogging. My one sentence was a paragraph long. So it took a long time, I asked a lot of questions about what other people wrote. I was horrible. I had to learn how to write. Here I am today so it can be done. There are people who specialize in Journalism and English hit the ground running that's fine they fail in other aspects such as statistics and mathematics. I focused more on statistics to get comfortable with it rather than the long writing. 22:26 Heather Elias: We're going to talk about etiquette. Daniel Odio: One thing that I would say is that I completely understand how intimidating this can be to make a You Tube video. All it is is an extension of yourself. It's an extension of the stuff you already have in your head. I would say that you should start with the stuff that you are the most comfortable with. Are you most comfortable with writing or are you most comfortable being in front of a camera or just doing an audio when you're driving to see a client and you think about a short sale piece of content just record that and get somebody to transcribe it into text for you. Even if you just take a video of your cat walking across your desk. Just make yourself take the video and upload it to You Tube and then you can check that off your list and say you've done it. It's not worth anything. It's a cat, but I've done it. 23:28 Frank Llosa: It's what I call the hello world blog post or video. There are two hurdles: one is creating your YouTube account and creating your blog and the second one is writing something monumental. Well remove that and just people the camera in front of yourself and say: "Hi, test, hello world," end. Get it up on YouTube and you have officially started your You Tube Channel. The second is writing something monumental which we'll talk about later what to blog and websites you can post. Your first post should be "Hello World." and then submit it to Ainsley and she'll have some kind of contest. 24:23 Daniel Odio: The last thing on this for me is: you do not need to be intimidated you do not need to be perfect. I personally think the more real the video looks the better. I, as a consumer, if I see a polished video it looks like a marketing slick to me. But if I see someone who just has a camera and is saying something to me that is really valid I tend to gravitate towards that more. So don't be intimidated by the professionalism piece of this because that's what you're selling; you're selling yourself. 24:52 Frank Llosa: No editing. Just take the video camera, shove it in your face, stutter, skip, mess up and just post it straight raw. If you try to get into video editing it's just never going to happen. 25:06 Ainsley McDougal: So would you say that video is a good way to start for those who may be intimidating by writing? Heather Elias: I was going to make another suggestion that these guys didn't mention and that's doing a photo blog as opposed to a writing blog. Just go and snap pictures of the neighborhood that you work in and put those up, one picture a day. You're showing that you know your area and that you're in your area. Not everybody likes to use video. I do some, but that's not a main focus for me. If you're intimidated by the writing and you're intimidated by the video, that's another option as well. 25:45 Daniel Odio: It's whatever you're most comfortable with. If it's Twitter, if it's a blog, if it's video, whatever is easiest is the best thing to start with because honestly the biggest enemy of doing this is: "I'll get to it later." That's the biggest enemy especially when you're busy with clients and your traditional business. When transitioning into social media, you have to do something that is easiest enough that you just do it now. Like Frank is saying: do not edit. It's an hour of editing for every minute of finished video. It's not worth it. Just redo the video if you have to, but don't even do that. Just put it up there. People will appreciate you. 26:19 Danilo Bogdanovic: There is never a right or wrong thing to do. Photo blogs, videos, writing, whatever you feel most comfortable with is what you should start with. The more comfortable you are with something, the more your voice is going to shine through. The more your voice shines through, the more people are going to realize how genuine you are. That will eventually translate into your clients following you. Whatever you're comfortable with, just go with that. 26:50 Daniel Odio: Here is one of the big things from me which is - and I know we have some differing opinions so let's definitely share them - I think that it's very likely that you may start this and get frustrated because you're not seeing a return on it. If you're going to be blogging, you may have to write several hundred blogs before you really see a measurable result from it. A lot of it depends on: are you blogging about a neighborhood, are you blogging about foreclosures because there is a lot more competition for one versus the other. So a lot of it depends on how you angle this, but this is an investment that you're making. If you can convince the world, and specifically Google, that you are a subject matter expert, then when people start searching for those terms you will be returned as the expert. That's when this virtuous cycle starts and people start coming to you and saying: "I want to use you." You don't even know who they are. "I want to use you because I know that you know what you're doing because I saw you do it in this example on your blog." 28:00 Frank Llosa: I'm actually in the process right now of creating a mini TV show. HGTV is doing a show called: My First Place so if I find a road to them I can hopefully get on the show. It's suppose to be like a behind the scenes look at buying a house. Well I'm doing a behind the scenes of behind the scenes. So I'm actually taking a video camera to every initial meeting and video taping what they thought of it and I'm going to make a separate You Tube channel of every single one of my interactions with this couple. That's just something else different that's constantly changing and evolving. 28:46 Frank Llosa: If you like a video that I've done you can post it in your blog. If you want to write about short sales you can link to somebody else's blog. If the customer knows you they're still going to come back to you, but they've gotten my four hours of information. That's allowed. That's fine. You always have to have permission to link to something. 29:39 Daniel Odio: In terms of just linking to someone else's content we do that all the time without asking because it's taking the visitor off your page and onto someone else's so you're running the risk that someone else might get that client. You can run that risk if you want. Frank would probably love you to run that risk. Now if you were to repost his content that's plagiarism and obviously we all know about that. 30:00 Frank Llosa: People do it. 30:02 Daniel Odio: OK, maybe we should talk about that. Another reason that you may not want to link to his content is because from Google's perspective, you get very richly rewarded for original content and you get no points for using somebody else's content. But they do. So if it's important to you to try to become that subject matter expert you can't just link to Frank's content. But if you just want to give the user knowledge about what Frank wrote about then you absolutely can. 31:11 Daniel Odio: Irene said a buyer doesn't wake up looking for Daniel, they wake up looking for a house. So that gets to this subject matter expert question or theme that we're talking about. That buyer is going to find you because of that knowledge that you're making available to them that has nothing to do with you. It doesn't have to do with Irene, but it has to do with the fact that you know local-specific information and here's what it means. It's something that leads people to you. It's like bread crumbs that you're spreading across the Internet with your knowledge. 32:00 Danilo Bogdanovic: Actually no buyer in the world wakes up and says I'm going to go online to fine a house. That's not how they start the whole thing. They start their process by finding out how to buy a house. They all know where to find a house. Everything is ingrained in their heads. They know they can type in the search engine: "Homes in such and such a place." But first time home buyers are going to go online and search about anything in that particular community that they're interested in. They're looking for so much information that has really nothing to do with looking for listings on line. That's where your blog comes in. You provide them with information that is hyper local to your area and you can go a little bit outside of that as well. But you're providing them with information that they would need for the entire process, the entire transaction. That positions you as a credible Realtor who has knowledge and experience and that's what brings them to you through Google, Yahoo, Bing, AOL, all the different search engines. So that's the first part. Then they go looking for a home. 33:26 Ainsley McDougal.: So social media is not just online marketing? 33:29 Heather Elias: Absolutely not. It's personal marketing more so than it's online marketing. It's not a vehicle where you say here's my listing I'm trying to get this sold. You don't do that on social media. Social media is about presenting yourself and creating relationships.. It's developing a relationship that ends up in a transaction later on down the line. A lot of the time with social media too there is hot leads where it's I'm looking for a house today let me find a Realtor online. It's more of an ongoing OK, they've read my stuff for six months and now they're at the decision point. So it's more of a slow simmer rather than a fast boil. 34:11 Frank Llosa: Also I have a site called www.franklymls.comwhich integrates the MLS searching into social media. What that does is allows anyone from any company to have reviews about a neighborhood for example. If you're an expert in a neighborhood for example, you write about it, you post it on the site, and your neighborhood review will be attached to every single home within that neighborhood forever. Your name is going to be at the bottom. So if someone hits a house in a certain neighborhood and they scroll to the bottom and you've written a review, what better person to contact than the person who have written that review. The site also allows you to review homes to individual listings so that's where the MLS search and social media comes together. 35:10 Frank Llosa: If someone just goes towww.homesdatabase.com it will have the name of the listing agent. If you have an account onwww.homesdatabase.com you pay them $400 per year, it gets rid of the listing agents name and puts your name on every single listing. But this is a little bit different. This puts your name on every single listing where you are the neighborhood expert regardless of who comes in. 35:40 Daneil Odio: I'm realizing based on what you're saying that we may have a bit of a different view of the traditional Real Estate which is listing focuses. We do a lot of buyer representation and I personally look at listings as content. It's nothing more than content and content is currency. So whether it's a listing or whether it's a You Tube video that I'm making of all offers or a hyper local post or whatever it is, that's just another piece of currency and we tend to get a lot of our buyers from that. A traditional agent will focus a lot on getting listings. We tend to have a lot of buyers coming to us because of all the content that we've put out there on the web. So maybe there is a little disparity there on how your business is. If you want to talk to the listing piece. 36:38 Heather Elias: Whatever the focus of your writing is is what you're going to attract. I think the neighborhood specific information works from a standpoint of people who are thinking about listing their houses as well. I look at it from the standpoint of where you focus your business. If you want to get more specific that's fine. I can cover all of Northern Virginia but I write about the area that I know about the best. From a listing standpoint I most likely to get people that are within the county that I write about. If it's buyers they can be coming from all over the place. 37:42 She's asking where the inquiries come from whether it's from people who are local or outside the area. Danilo Bogdanovic: To touch on that real quick, for a number of reasons I know there are plenty of Realtors that focus on Maryland, D.C., and Virgina but in all seriousness, how can you know all that like the back of your hand? You can't. If you write big posts you're going to come across as vague and it will not reward you because they are looking for specifics. The more specific you are the better they will treat you and the more you will come up in search results. So when you're talking about a specific area that you're most - you want to become an expert, that's the whole point of it. To become an expert you are going to show people that you really know this one area whether it's Arlington specifically condo's, etc. That's where expertise is going to come through and people are going to notice. So I think you should really focus on the area that you know best and run with that. 39:00 Daniel Odio: The reality is you guys probably already know the answer in your head. It's just getting it out to world. You already know what you're good at. You probably have certain buyers that you could work really well with. You know certain areas. It's not anything crazy. It's just you everywhere so that people can find you. 39:50 Frank Llosa: The point that he makes about everywhere is actually very important so I want to highlight that. Often times the people that find me have found me in four different avenues so it's advertising 101. If I hit the customer three times. So if I advertise through a blog and then they find you on Face Book. Has anyone seen the Arlington Wrap? The You Tube Video? That is not me, but he's my client. He lives in my condo. He lives across the hall from me and he found me on Face Book. That's real. It's call the Arlington Wrap. You just look that up on You Tube. 40:03 Which of your social networks is your favorite? 40:20 Heather Elias: I have actually seen the way in which I use Face Book change a lot in the course of the last two months in terms of driving traffic to my blog. Face Book has a personal and a business page. Actually I just did a panel discussion on that earlier this week. Face Book pages versus your main profile. I do have a business page set up and I put very different content on that than I do my regular Face Book page. Just to give you a short run down on that, I don't want to inundate friends and family that I'm connected with on my main Face Book profile with a lot of business information. So I set up a Heather Elias fan page. That's where I put the business content because if people have opted into that to be a fan I figure they have asked for that business content. So that's where I stream the links to the blog and update the links. So that's a great way to separate business and pleasure on Face Book. 41:40 Ainsley McDougal: Do you find that a lot of people who are your fans on your business site ask to be your friend on your personal site? 41:46 Heather Elias: I guess because the fan page is so much newer they have already befriended me before they became a fan although I will say that there are plenty of political area folks that have signed up to be a fan that I have never met before that are a friend of a friend and I think that's probably where the greatest benefit comes from. There is an introduction that takes place there that I don't even have to be part of but now that they know who I am are getting my expertise that way. 42:11 Daniel Odio: I would actually answer the question very differently. The question I would answer is what's one of the most useful technology tools? Who here does not listen to their voice mail? Who here reads their voice mail? I have not listened to a voice mail message in two or three years if you can believe that. There are several services, the newest is called Google Voice. But there are some others like www.phonetag.com and www.callwave.com. When some calls you your voice mail message it is transcribed into text and an e-mail is sent to you with the audio file attached so I can listen to it if I want to. I can't tell you what a time saver that is, especially in this business. If you've ever had ten messages waiting for you, that's just completely gone and you can forward the voice mail. For example, if a listing agent leaves an offer on a property I'll forward that to the client so they can actually listen to the message because it's about the offer they made. So things like that where you can actually re-purpose that content and just be able to forward it along is just amazingly valuable. So phone tag is probably your best option. It's like $20 a month and it replaces your existing voice mail. People don't even know the difference when they're leaving the voice mail. It works very well. Frank Llosa: I use a service called Answer Connect so that if you call my phone and don't reach me it rolls over to an actual operator somewhere that will answer with your company name, take a message and sent it to me via e-mail. So that's what I do. I don't have voice mail either. Ainsley McDougal: I want to get back to the marketing thing because I think it's important to highlight the fact. How do you all use social media to supplement the little traditional marketing things you do? 44:58 Danilo Bogdanovic: To start off we talked earlier about saving time much like you could do a lot of this traditional stuff where you send post cards, etc. Imagine putting a picture of a house you just sold in a particular community on a post card along with a link to your blog or your website and sending it to all the neighbors. Then having details that are important to the neighbors on the blog or website. So you're now advertising as selling the house as you have been doing for years, but you're pointing them to your blog. So them come to your blog and they start reading and they see that you are really knowledgeable and know the community and State. So basically you can add it onto what you're doing currently and eventually what will happen is that you realize that the return on the social media is greater than on the traditional you may want to shift the focus and shift the money. There is a lot of ways you can supplement it. Also while you're out talking at traditional places like the Chamber of Commerce or whatever it is you can just hand people a card - that actually do not have a phone number on them so that people don't bug him with phone calls for feedback. 46:28 Frank Llosa: On the business card it says special card just for showing for feedback please send an e-mail with a link to the property and there's not phone number on it except for people who check it online and then they end up talking to someone in Ohio who tells them to e-mail me. So it all integrates and works together. 46:45 Danilo Bogdanovic: You can take stuff on your business card and really make it prominent for them to go to your blog or to Twitter or wherever you want to point them and that's how you can supplement it. Primarily for me it's saving time. 47:00 Heather Elias: I don't strictly use social media as my entire basket of eggs in terms of marketing myself. I do still occasionally do print media or postcard mailings. You can put your blog address on any traditional print advertising that you do, at the bottom of any letter that you do, mailings to your clients. That's getting it in front of your clients without having to send them an e-mail without having to tell them to visit your site. Traditional marketing can back up your social media efforts. 47:37 Frank Llosa: My business cards have my Instant Messaging address on it and clients that are technologically savvy appreciate that. I have a new card coming out with the cell phone numbers in such small 3 point font so the whole point is don't call me. I have one card that says: "Frank Llosa Google me" and the other side says: "I'm kind of a big deal!" A great way to make fun, cheap business cards www.overnightprints.com they put out coupons every once in a while. I just made for a client a just moved card for a pack of 50 for $12.00. The front and the back said the greatest Realtor in the world helped me buy this house with a link back to my blog. They're going to mail it out to all of their friends. 49:08 Daniel Odio: Are you referring specifically to using camera's and blogging and things like that? The reason that we invited you to bring laptops because I think some of us are more than happy to stay after and help you set some of this up. It's so easy to say it sounded really great, kind of confusing, I don't have any idea where to start and we don't want that to happen. So if you want to stay afterwards and you have a laptop we can help you get set up. Right now I'm capturing this content using this voice recorder and I actually just wrote a blog about all of the equipment I use so if you go towww.blog.danielodio.com there is a post there that talks about the type of camera that I use which is the one on the tripod over there and the type of voice recorder I use and why. So that is a great way to actually get some specifics. It's a total of $230 of equipment that I use so that you can take that content out of your head and share with the world. The reason I'm capturing this is because our firm is looking for tech savvy agents and that's a very hard combination to find, but I know that if I can capture this content and put it up on the web, I've got a much better chance of agents finding our firm because they're seeing this content. So this is just an example of what we're preaching today. That's why we're capturing this today so that people can learn from it even if they couldn't be here today. 51:28 Danilo Bogdanovic: To touch upon the question: you guys have no idea how easy you have it today in 2009. In October 2006, everybody here has been blogging for a while, there was nothing. I mean no support, there were maybe 20 Real Estate bloggers in the country and it was hit or miss. I don't how many times I screwed up with my blogging but I made mistakes and it looked horrible when I published it. I had to go back and delete what I just did and I spent hours and hours and hours. Now you guys can go and literally just Google and it says how to start a blog. You will get hundreds of results, videos, tutorials, other blog posts, countless resources that you can read. It just takes some time. One thing before you really get going with a blog, the first thing you should do is read before you write. You've got to read before you write. Go get ideas of topics and you will see how people write, how their blog is laid out, and you will see 30, 40, or 50 blogs and you can take little pieces from each one and say: "I would love to integrate this into mine." Get a better idea of what you want yours to look like and also a better idea of what you want to talk about and what it's going to sound like. You might see a blog that's heavy on video and thing that's really cool. So you've got to read before you write and don't ever be afraid to ask. The blogging community is very open with what they're doing and how they're doing it. Technically we are all competitors, but we're not. Her clientÃ¨le is going to be different than mine even though we're in the same county. We each have our own voice, but we share ideas, we link back and forth, and talk about what worked and what didn't so always ask. 53:51 Frank Llosa: Would you like a You Tube account? We're going to set it up for you right now. We're going to show you exactly how to set up a You Tube account. I have a video camera and we're just going to have you say for three seconds what your name is. You're the most eager we're going to go with you. I guess there are three excuses: not finding the time to do it, not being willing to do it, and not having your makeup set! 55:00 Heather Elias: There is nothing wrong with preparing before you do it. 55:06 Frank Llosa: So our goal here is just to make a five second video saying: "Hello world, my name is ..." and then just say your name. That's it. We're just going to do something like that. I'll tell you when to start: 1, 2, 3, Hi I'm _ hello world. So that's it. We've created the video. The next step is the memory card in here. We're going to take the memory card out and give it to Ainsley and she's going to show you the steps for creating an account. The card goes right into the laptop or you can just plug the camera right into the computer as I'm assuming you all are comfortable with that. As far as the You Tube account name you can do it with the name of the town that you're like Arlington homes or something like that or just your user first name last name which is probably the easiest. We'll just do that right now. So Ainsley is going to set up an account for you in the background. 56:15 Daniel Odio: While Ainsley is doing this one thing that I would say in terms of how to get started is I think you've got two main goals here with leveraging social media. The first larger goal is to become viewed as a subject matter expert so be viewed as a subject matter expert so that when people search for something real estate related, your name comes up. That's a long term goal. That requires a lot of content to be posted by blogging and You Tube. But the more immediate benefit I would say goal as well that you should have is: how can you save time by doing this. So I would say that the next time that you have a client ask you that same question that you answered 100 times, whether it's "What's a short sale?" "What's an REO?" "What's in the neighborhood?" Whatever that question is that you're always answering, I would say that Henry Ford would love blogs because it's like an assembly line; you do it once and you can use it 1000 times. So next time you've got that, why don't you say to the client: "I'm going to really compost a thoughtful answer for you." And put it to a blog or do a You Tube video and just make that the content that you put up and send them the link. Just try that. I think you'll find that when you do that a couple of times, you're going to feel so refreshed that you don't have to launch into that whole thing." In fact, when you do talk to a client about it, you can talk to them about the more advanced pieces because they've already read the two hours that you put into that basic information and you can talk to them about the details of a short sale instead of having to go over the basics. 58:02 Danilo Bogdanovic: A quick tip a wise blogger once told me a while ago: keep a pen and notepad handy and when you get that question that you are tired of answering like Daniel said you've told 1000 times jot it down. If you're ever out in a neighborhood and you see new constructions or great incentives, jot it down. So keep something handy where you can write it down. Whether it's that day, the next day, or a week later, you have that pen and paper so you know what to talk about. I think we all go through writers block. Some weeks there is nothing to write about. At least in my head I don't think there is anything to write about and all of a sudden one day it's like I don't have enough hours in the day to write everything that I'd like to. You can spread that out. 58:50 Frank Llosa: People have different styles. Some people will write frequently once a day or once every other day shorter posts. I tend to write longer posts and it takes me two or three weeks to get them out. I have a blog just for typical questions. I don't want to bug my regular readers with that. I have a Realtor-focused blog on the latest gadgets, tips, and tricks that I don't want to bug my regular readers with. There are different ways to do things. 59:32 Heather Elias: Can we bring the twitter feed back up for a second. You can find people that have already come before you that will help you with it. I just send out a quick message and can people say hi. These are all people that are on Twitter that helped me figure out how to do what I do now, that got me from starting active writing to have my own blog. There are so many people out there that will be perfectly happy to answer whatever questions you have along the way. All you have to do is reach out to them. 01:00:10 A really nice thing about this Twitter feed is that it's there forever. Every post that you see people are putting a hash tag and a key word in their post so you can find all this content, tomorrow, a year from now and the way you do it is you just go to search.twitter.com. In the search box you just type in the hash tag which is NVARwiki and since everyone is putting that key word in on all their posts today, which is why they're coming up here, they will also show up when you do that search as well so you'll have that whenever you need it. 01:00:55 Heather Elias: I also want to insert that www.VAR.buzz.com the Virginia Association of Realtors puts a lot of content in there and it's worth reading. Having said that, last year they did what they called the "Crest Survey." It was a two-part survey of bloggers in Real Estate. What they discovered is the most successful blogs post between five and ten times per month. Maybe once or twice a week. Any more than that and people tend to unsubscribe because it's too much information and they don't have time to read it all. Any less and you're like the second most successful group. I think it's important to say that even though it's important not to get writers block, it's not like you have to be posting every single day. Once a week is a great expectation to start with. 01:01:45 Daniel Odio: I think everyone has their own style so sure it seems perfectly fine although what I would say is a great way to figure out what you're going to write about if you don't have a client question to answers is read other Realtors blogs. You'll come up with all sorts of things to write with something that a Realtor wrote. Just go read any of the blogs up here and you'll have plenty of thoughts to write about. 01:02:18 Danilo Bogdanovic: The other thing you can do is to turn your e-mail into a blog post. So if someone asks you a question about what they should do, take their question, post it on your blog, change the name and answer the question there. Instead of sending an e-mail back to the person send a link to what you just wrote and tell them to post any follow questions they may have on your blog. 01:02:49 Frank Llosa: So we're on You Tube right now and we've transferred the memory card to the computer. That might be a step that some people might not understand how to do that part yet, but you have to know how to do certain things like getting the memory card into your computer. Now to set up the user account you enter the user name and press check availability. The account is available. So you enter your zip code and your birthday. You Tube will send a confirmation e-mail once you have signed up. Accept the user agreement. Type in word verification. Go to your e-mail and check for the confirmation e-mail. After your e-mail is verified, click here to manage your account. Go to www.YouTube.com after verifying it and then your account is right there. So you can go straight to upload. He already has an account confirmed and we are now going to upload the video file by pressing the upload video button. We put the video on the desktop to find it easily. You're going to have to name the video. This is how people find you on You Tube so you want to use a keyword, a specific word so people who search for that topic can find it. The more specific you are the more likely that you will come up higher up in the search. Scroll down and there is something called tags where you can put words that describe the video. Pick a category. Share with the world. Press OK. Save changes. And it has successfully uploaded. To watch the video go to the user name at the top. It says my videos. Press play. It might take a couple of minutes to process. Now you have a You Tube channel. The website address is www.YouTube.com/ your user name. That's the process. You can choose your resolution. Different cameras have different resolutions. You Tube compresses it by 90% so it's going to bring it down big time. Usually just use the middle setting and you'll be fine.So what you can do is take your video camera and walk through the house, taking a video of the home and you can post it on You Tube or all the Realtor sites and it will be a video instead of just still pictures. That's www.videosbyaddress.com Right now it's free. 01:07:09 Daniel Odio: By the way it looks very much like since we're up here and we're the experts there is a community of Real Estate Agents that live this way and we very much feed off of each others tips and tricks. So thank you for contributing. What Doug was saying is you can go to Hulia and there are questions there posed by buyers and sellers and that can be your content to write blog postings. That's an excellent idea. 01:07:57 Frank Llosa: Another way to start blogging is to go to each one of our blogs and write a three or four sentence reply to your three favorite posts. So that's you starting a blog by commenting on someone else's blog post. You don't have to have an account or anything. Just add your comments. Add your feedback. That's a great way to start blogging. Different Cameras have different resolutions. You can choose your resolutions within the camera it will have higher and lower. You Tube will compress it 90%, so it's going to bring it down big time. Usually you just find the middle setting. We can help you on the camera. The middle setting in fine and and if you don't know, just use what's on there. 01:13:49 Danilo Bogdanovic: The cameras are all good with video. I have a Flip Mino HD. It's $200. It's real easy because it has basically one resolution that it's set on and it's not that high even though it's HD. Hit one button to power it on. Hit the red button to start recording. Hit it again to stop. Then what you do is this USB comes out and you plug it right into your computer. It brings it right up what's called "Flip Share" it's their software and it's cake to upload a video. Once it's uploaded you can actually make a movie with it, and put a title and credits at the end. It will ask you where you want to upload it; You Tube, Face Book, where ever you want to do it. Just one click of a button and it's done. 01:14:38 Frank Llosa: The five steps that we did he just moved down to two steps. There is no card. Danilo Bogdanovic: It's a Flip Mino HD. I recommend getting this new one with the HD. The new one is black and the old one is white. It's $200. 01:14:58 Daniel Odio: Also on thatwww.blog.danielodio.com on my social hardware page I talk about an alternative to Flip that you can use if you'd like. I do have it here. It's a Kodak camera. The software is a little better on the Flip. There are some thing that I personally like about the Kodak. If you get a little more advanced with your video and you want to be able to swap cards in and out the Kodak can do that where the Flip can't, but by all means, the Flip is a great way to start. It's so super simple. This Kodak camera is a little bit better for being able to do some more advanced things. But either way you can't lose. 01:15:32 Frank Llosa: I'm posting right now the video camera that I like which is the Samsung NV24 on Amazon for $140 and the benefit there is that it's a super wide angle camera. It gets 80% more of a photo in than other cameras. So it's a huge difference. Also with a video there is a lot of shaking problems and the wider the camera, for some reason there is less shake. So even video taping yourself on a wide angle you'll see more of you and it will shake less. 01:17:24 Daniel Odio: You have to walk before you can run. All the things that we've been telling you are super basic things that we've been doing for a long time, but it's a great place to start. Once you're comfortable with blogging and You Tube there is a whole other world of Google search engine and optimization for very advanced things that we'd be happy to talk to you about. You've got two goals. One is to be that subject matter expert that comes up when somebody Googles short sales, but that second goal is much more attainable which is to save you time. Really that's where I think that's where you should start so you're not answering that same question over and over again. 01:18:41 Frank Llosa: Google mathematically will look at the keywords on your blog posts as one of the variables. It will also look at how many things you've written, how many years you've been writing, how many people link to you. So Google will mathematically calculate in all of these variables who gets up first. You can buy your and blow a $1000 really quickly so do not buy ads unless you really know what you're talking about. Don't hire someone for pay per click ads. You think $1.00 to pay per click is not a lot, but then you come back and your bank account is wiped out. You don't realize you didn't set a maximum. Don't be buying ads. I guarantee if you buy local people are looking for that stuff. 01:19:43 Heather Elias: What you're really asking about is search engine optimization. It's also called SEO and my shameless plug is that NVAR in its June addition just did an article on it. 01:19:53 Daniel Odio: The short answer is you do nothing, but write really good content. The long answer is much more complicated. 01:20:00 Frank Llosa: And tag it appropriately. It's a great answer. 01:20:06 Heather Elias: Keyword tagging at the bottom of it is what's going to show Google what you're writing about as much as the content itself. 01:20:14 Frank Llosa: Does everybody know what we're talking about? If you look at Google search result page you see the stuff at the top and then at the side and then there's stuff in the middle. Everything on the top and the side, those people have paid to be there. Everything in the center is what we call organic and we're talking about how to get up in the organic search results. Like Daniel said, it's good content, correct keywords, and correct tagging. 01:20:38 Danilo Bogdanovic: Organic means like ground up. 01:20:40 Frank Llosa: Yeah organic means that basically you haven't paid for it. Google has their secret algorithm which they claim changes every quarter and they basically index your site, which is they look through your site and your blog posts, look at the key words and then based on that they reward you how long you've been writing. The longer you've been writing, the more they reward you. It's one of these, it's kind of like a J curve. You start out real slow and then all of a sudden you get picked up and then boom! You start heading up. 01:21:12 Daniel Odio: It's actually a lot like Real Estate. Are you renting that space on google or are you buying it? If you're renting it it means that you're paying Ad Words which means a dollar per click or whatever when you stop it goes away. You don't get any lasting effect from it. Buying it is you're actually getting Google to think that you are the best possible results or return for that query and that's what we're talking about here. We're big, big SEO's (Search Engine Optimization) fans. 01:21:48 Heather Elias: Everybody up here comes from a slightly different background. SEO is important. I'm not saying that it's not, but don't feel like you have to become and expert on SEO as you get started. That's something that you can grow into as you go along. 01:22:04 How long are you on the computer everyday? 01:22:07 Heather Elias: I use blogging as my way of prospecting. What's your primary method of prospecting? 01:22:14 I do a lot of mailings.01:22:16Heather Elias: OK. How much time do you spend a day on mailing? From my standpoint I using social media and linking to it through other social media adverts is the way that I prospect for business. That varies by day, but that's the time that I set aside to grow my business. Some days it's three hours a day, other days it's not as much, some days it's more than that. My husband would give you a completely different answer. But that's where my business comes from so that's where I spend my time. I think that's probably average. 01:23:13 Frank Llosa: You Tube is owned by Google so they'll love you even more. 01:23:25 Frank Llosa: One thing I do is for instance if you do a video on You Tube you can then embed it into your blog post, but when Google goes through your blog you're not going to get rewarded for that video being on there so you're going to want to maybe do an outline of the main topics in that video with the keywords because then the keywords will be picked up and you'll get ranked higher. But then if you link back obviously your You Tube will be embedded, but you also have the URL back to the video on You Tube because sometimes people who work in corporate America in a cubical aren't' even allowed to look at You Tube videos. Some companies have that policy so they can't actually see the video so they can click on there and save the URL for later. You're rewarded doubled if you do it correctly versus being penalized. 01:24:17 Heather Elias: SEO is very complicated. Don't get overwhelmed by it. 01:24:20 Daniel Odio: Just for those of you that are already using You Tube whether it's for business or pleasure, once semi-advanced tip is I actually have a wonderful woman in Kentucky who transcribes all of my audio and video into text. The reason I do that is because Google cannot yet search through video to pull up those key words. This audio right now that I'm capturing will be up on our blog and will be transcribed as paragraphs and paragraphs of text within about one week. That's how we do part of our SEO for example. So that's kind of interesting. 01:25:06 Heather Elias: So who wants to set up a Twitter account. Did you notice we had somebody in the room setup a Twitter account as we were going along? There was no picture posted so I can't tell you who it was. 01:25:50 What blogs do you guys read? 01:25:53 Frank Llosa: We are going to have a website up after the class. Where we went through what blogs we were reading and what blogs were the most influential or good examples and also blogs that give you resources on how to blog and how to use social media. Those would be the answers to your question. They are from all across the country and some international. It doesn't matter. 01:26:32 Heather Elias: Check out: www.NVARwiki.com 01:26:34 Daniel Odio: If I can just take a second to give props to NVAR here. To walk into a training classroom and have reserved seating for laptops is just amazing and to have a wiki created I just think it's unbelievably phenomenal. Five years ago it couldn't have been done. Congratulations. A wiki is a website that anybody can edit and add to. Like Wikipedia. If you wanted to you could change an entry on Wikipedia right now. If they agree with what you said. That's the beauty of wiki. It allows for collaboration. 01:27:23 Heather Elias: So we're putting deep minds together to collaborate. What you can do is go on and comment on the post if
I often carry around this bag from Shaun Jackson Designs that contains everything I need on a daily basis, including everything I need for my social media content capturing. Check the video out!
Listen to Jim Hopkinson, WIRED's marketing guy, and his interview about my social media hardware bag.
I often carry around this bag from Shaun Jackson Designs that contains everything I need on a daily basis, including everything I need for my social media content capturing. Check the video out! Listen to Jim Hopkinson, WIRED's marketing guy, and his interview about my social media hardware bag.
I attended, and captured the content of, a Deloitte panel featuring:
Scott Frederick of Valhalla Partners
Steve Frederick of Grotech Ventures
I attended, and captured the content of, a Deloitte panel featuring: Scott Frederick of Valhalla Partners Steve Frederick of Grotech Ventures John Backus of New Atlantic Ventures Sever Totia of the Edison Venture Fund It was a very candid discussion of the state of the VC market, attended by about 30 c-level executives. Here is a PDF of the brochure. Transcription of Event: Good morning everybody. Let's get started. It's always a good sign when we have good networking and conversation to get everybody in the room. For those of you who don't know me, I'm Chuck Carr. I'm a partner here at Deloitte and on behalf of Deloitte and all of our tech venture center sponsors, welcome here this morning. I think we have another, hopefully, good event again for you this morning, hopefully very interactive. As you know we have four very well known local venture capitalists here today, John Backus from New Atlantic Ventures, Scott Frederick from Valhalla, Steve Frederick from Grotech and Server Totia from Edison Venture Fund. We purposely picked each of these for funds that basically are active right now in the market still out there looking, investing. What were going to ask each of them today is just to introduce themselves, tell a little bit about their funds and give you a little about of an idea of what they're seeing out there in the market at this point in time. As usual we expect a lot of interaction. It's fairly small group; as you know we welcome questions and there will be plenty of opportunity for that. Without any further delay, I'd like to start with John. Sure. Well we were just talking before everyone sat down and I think we concluded that this will be a really strange panel because half the people in the room here could be on the panel instead of us. Since I think between us we probably know about everyone here were not going to be able to BS people were going to give you real answers and stuff. That's not going to stop us from trying. You'll probably catch us on it. I'll just going to spend two minutes and probably answer the question that is on most people's minds which is are we active in the market. I actually wrote a blog post on this. You can go to our website which is navfund.com. We have a blog which we update pretty frequently. One of the ones which I did last week was called "Are You Meeting Me for Dough or Are You Meeting for Show?" sort of trying to find out if your venture fund actually has money or not. I used some tips to figure that out so I'll let you go there to figure out what those are. I'll tell you that in the last 18 months we have made 9 investments; we made 6 investments last year so 3 investments so far this year. We are on pace to make one every other month so about 6 every year. Our fund is new; we call about 16% of capital. We made about 9 of what will probably be about 22 investments. So just to give a broad overview, I put categories down. We did two companies in the digital media space, Stitcher and TV Networks, one in the broad advertising space called Ponteflex, 3 in the social community space Fashionplace, [...] and empower player, 2 in what I'll call broad technology space, Cure Command and gaterocket, and 1 that's missed every one of the things that we looked for and everything were not supposed to do in the healthcare services space called Cuelines. So were active and we think it's a great time to be starting a company if you can get funded a lot of other people aren't so you have a bit of a competitive edge if you can get out and get funded. Okay, I'm Scott Frederick at Valhalla and it says here john speaks and actually we're very similar in terms of where we are in terms our funds and in terms of our pace of investments. Valhalla for those of you who don't know us, we have about 450 million under management, were currently investing in our 2nd fund which is a 275 million dollar fund. Were about a third of the way invested in that so maybe a little bit more than New Atlantic so it puts us in kind of a perfect position given the environment because we have a lot of dry powder left. I think we have done 9 investments out of fund 2 and you know we'll generally try to get 20 to 25 in a fund so as I said we have a lot of dry powder. Our investment pace, we've historically done 6 to 8 deals a year and were right on that pace. We've done 2 so far this year. We have one right now coming up for partnership meeting in the next 24 hours. I'll let you know how that goes. I agree with John. It's actually a great time to be investing. For the entrepreneurs it's a little bit difficult for the reason John said. It's tough to separate the check writers from the tire kickers and it's absolutely imperative that you do that because otherwise you can waste a lot of time. I'm helping one of my portfolio companies raise money right now. It is easy to get meetings. We probably have 22 meetings on the west coast. When I reviewed the list I think there are probably 5 of those that are actively writing checks. So it's tough. Use your advisors. Get the advice and ask tough questions. We'll have to go to your blog. But the obvious questions is when's the last investment you made because a lot of people are sitting on their checkbooks. Hi I'm Steve Frederick-Scott's cousin (laughter). I'm with Grotech ventures. We too have been active here in this market. We've done 3 investments thus far this year, 7 last year. On a similar pace of about one every other month. Our typical investment tends to be half a million to 5 million initially with more set aside for follow on. Just to echo some of what's been shared, I think it's a really really good time to put new money to work. I have not seen evaluations for later stage companies as attractive as they are now in my decade in this business. I think earlier stage companies have a bounded range that you can't get much below but for companies that are a little later in life it's a pretty good time to put your money to work out there. I will say that getting in around close is taking longer and longer and longer so even for the 3 deals we've done this year it's taken 6 months from initial meeting to final close to get across the finish line. We've done deals in the IT security space and the compliance space and the digital meeting space and social networking space here most recently. Hi, Sever Totia with Edison ventures. We're investing our 6th fund it's a 260 million dollar fund. We also remain very active with tenure investments in 2008. 3 in the first quarter this year and we're probably looking to make another 5 or 6 investments between now and the end of the year. Across our 3 core geographies, which are here, New York/New Jersey and Boston. I think everybody at this table invests over 5 to 7 or maybe 8 year outlook so most entrepreneurs ask how's the current environment affecting it and the answer is that the current environment is really affecting investments we made 5 or 7 years ago and that has very little to do with what is going to do with our current investments 5 or 7 years out. So that's the strategy. We do see activity in a lot of interesting sectors: digital media, enterprise software, healthcare IT. We invest about 15% of our fund in education and education technology. That's been a market that's been very strong and we're -knock on wood-thankful that were in it. We've got exposure to it. Our special will last about 12 to 18 months. I guess I'll stop there. Namely just broadly, from your perspective, what's hot and what's not at this point in time? Traction, revenue, (laughter). You mean beyond that? What's not hot are capital intensive projects. I'm involved in a storage deal that was white hot for the first 4 or 5 years that we were investing in it. We've got a great syndicate. For a while we had a million dollar a month burn. For the early stage startups in this room that price sounds outrageous. When you're trying to build a big revolutionary database storage appliance its actually on the small side and those projects are very hard to finance cause you go out to a new syndicate and they're trying to do that math and they're saying how much can we accomplish on ten, 15, 20 million dollars. But if you're burning a million dollars a month and you don't have the kind of visibility on the top line in this environment, it gets really tough. Capital efficiency is key. Obviously, traction. Digital media is hot. Healthcare IT is real hot and I think as Sever said, education is hot. We probably see less deal flow there but it's certainly a hot sector. Mobility on the front has become, specifically enterprise mobility-consumer mobility has been around for a while and has been driving a lot of growth-but more importantly enterprise mobility is coming to its own. I've seen at least 3 or 4 false starts in enterprise mobility over the last 10 years. Now I think the stars are aligned for enterprise mobility to actually happen in a nice way to make investments there. I would just add that there are only 2 types of companies being funded. There are a lot of companies that are almost cash flow positive that are a little later in life that need a little more money for an insurance policy if nothing else. Those companies can raise money right? Maybe not at super high evaluations but they can raise money in this climate. Then there are companies that are early; they're still working out the technology. They don't yet have a sales marketing spin that's tremendous so they get very modest burns and those can be really good bets because coming out of this downturn those can be places that are poised to really take off in a big way. My fear, my observation is that back when all the fireworks went off back in the fall we all proactively funded our companies for the next 12 months to make sure we had enough firepower to get us through the fog. Well the fog hasn't yet cleared and most of us, a lot of folks, are on the sidelines. There aren't a lot of people writing checks. I have this belief that in Q4 of this year and Q1 of next year there are going to be a lot companies out trying to raise money. Unless their existing investors are compelled to finance those going forward, I think there are a lot of companies deciding to shut their doors going forward into Q4, Q1 and Q2 as we go into 2010. I would add that if you have raised a lot of money in the past and don't have a lot to show for it you are really hurting. If you go out there and you try to raise money and raise a bunch and haven't done much with it you're going to have a hell of a time. If you think a continuum where one end of the spectrum is what I'll call the fairy dust where great ideas and you can get everyone excited about it, you can probably find some early stage investors many of us who might buy into the idea then what happens is a harsh slide of reality comes. You start executing the numbers don't come through and you hit this sort of valley. Until you climb out of the valley and actually have numbers, revenue, customers showing, these two ends are getting funded but if you're in hear where you've raised money you've seen around and been around and you've struggled and you're struggling all of a sudden were not going to buy the fairy dust and were going to look at the numbers and say the idea sounds good but it's not working; the numbers aren't very good. Let's give it more time. You really have to be at either end of the dumbbell. Very well said. For those of you who know, the Gardner height curve, that's the trough of disillusionment. For an entrepreneur that's a lousy place to be. The humbling reality is that we're all in those deals too. Back to John's point, were generally investing for the last 15 to 20 years. All our investments are, 9 out of 10 investments, are doing 4 or 5 million dollars in revenue or more. And even that end up in between milestones where they're trying to go for 5 to 10 or from 10 to 15 but they hit potholes on the way there. That's when you've got to double down and get through. How do you compare the environment here in this area or even east coast versus the west coast at this point in time, climate wise? Are we in better shape? You know it's sunnier over there. I would say we invest mostly up and down the east coast but of the last 9 deals we've done 3 here, 1 in New York, 2 in Boston and 3 on the west coast. We've looked at all the different markets and we've put money to work in all of them. One say the funds here have done a lot better than Boston and silicon valley is that we haven't been raising a funds every 12 or 18 months so a lot of the valley funds got caught with pants down because they raised a fund, they invested it like a bat out of hell and all of a sudden last fall hit and they're sitting there with 18 companies in the portfolio and they want 20 or 22 and they have to reallocate all the money they have left in the reserves. Scott made a point that they have 20 some meetings with companies out west but maybe 5 of those have capital. That's pretty real. If I look at the venture investors in greater Washington area, I think a higher percentage of us have capital to invest relative to Silicon Valley. Boston is somewhere in between. I agree with that position on the spectrum. I think the west coast was particularly hit, as john said. On average, they hold a lot more board seat. A lot of that is part of their model. They tend to do investments a lot quicker. Everyone's focused on the lack of the exit window and people said well its obvious what the ramifications are for venture firms IIR. If you're holding a company that much longer. The second order effect is think about what it does to board seat load. If you have a GP that's doing 3 to 5 deals individually a year and they're use to rotating off of those on a 2 to 3 year clip and suddenly they're on those board seats for 8 or 9 years, that math creates a world of hurt. I have a lot of firms for the west coast that are sitting on boards of companies that they invested in '98 or '99. That math doesn't work for our business. I think Silicon Valley got hurt a little more on that. I also think as john said, reserve management. I think east coast firms tend to be a little bit more processed oriented. Valhalla probably on the far end of that. Were very processed oriented. I think that really helps. We take reserve management very very seriously. For those of you who don't know what that means, it's basically the art and science of managing the very last dollar in a fund. A lot of people are just too rough math saying we want to target 20 investments but if you're not looking at each and every one of those companies and having a very good idea of what the future cash flow needs of those businesses are, you are a world of hurting in this environment. In a tough situation where you have to pick between your children and that's what a lot of the valley firms are in right now. Edicts are coming down from the Monday partner meetings saying everybody gets to support 2/3 of their companies. Tell us next week who's getting a bullet. It's bizarre stuff like that. I don't think you're seeing that nearly as much on the east coast. I also think the west coast is more exposed in terms of where they get their money. A lot of their money was more heavily oriented toward endowments and universities and those LPs are a little more upside down than fund of funds and pension funds which are where were headed so they're a little bit more exposed also to LP falls. All that said which I agree with I think Silicon Valley is the most optimistic place in the valley. Hope springs eternal in a significant way and the aggregate there's still more money out there. There are companies I know of locally that are being funded by firms on the west coast still. That's countered with we don't invest on the west coast so when I get calls from my buddies in California saying we've got a great deal on California we really want someone anchored around the beltway who can help with, then you know they're on their last leg. So that's happened more frequently. They want access to Obama. It's a good spin. We also invest primarily on the east coast: Maine to Florida. Primarily in the DC, Philadelphia, NY and Boston metro areas. We've seen as everyone recognizes a big down draft not only the number of venture firms that are active. It's a long term cycle because most venture firms are on a 10 year fund cycle and so we've seen a drop off after the first. I think the second shoe is going to 2009, 2010, 2011 on those funds. Funds that are managing existing portfolio companies, not making new investments, are going to stop. That's what's going to be the 2nd reality of what the venture world is headed. It remains to be seen whether is 600 funds left or 400 funds of 700 funds or however many there will be over the next 10 years. When you're contracting in a positive number I am seeing more venture activities in New York. Some Boston firms are putting people full time in New York and even some west coast firms. So I'm seeing a lot of activity there. On the positive front, we have 62 companies in our portfolio and exposure in all different sectors. So for example we saw companies that had exposure to the retail logistics sector had a lot of hurt last summer now the growth rates are coming back. We have about 25% of our fund invested in companies that deal with financial services and financial technologies. We saw that curl last summer in Q3. Now that there is stabilization there for sure and growth rates are starting to come up. There's a business cycle that some of our companies entered that are seeing uptake back up. Of course, healthcare IT and education powered through all that. Those are great signs to see as the business cycle comes out of the fog as, Steve said. I think there are some signs of hope out there. It's a real economic headwind. Our firm like many, our CFO likes to look at these companies separate from the color that we as general partners add as part of their progress. Every quarter we look at companies ranked on performance, that plan, quarter over quarter financial growth, year over year growth. Not every company is continuing to grow in this environment. There are a lot of companies and sectors that are continuing to beat their plans and continuing to grow. As a new investor looking at new opportunity I think this market really does a lot of your work for you. You look at the wealth of opportunities out there in which to put money in. The market is sending very decisive signals saying these guys have traction and these folks don't. I think there's never been an easier time to determine which companies are attractive then there is right now. If you do the math on this panel, we all sort of talked about what we've invested in and what we're looking for to invest in, this small of a group of 4 peoples is probably going to do another dozen deals this year, in the second half of the year. None of us do a heck of a lot of a lot in July and August so that means that were looking at a pretty active labor day on. So you take off two months? Each! What are your views on the active environment? Maybe not just right now but maybe in the future? When do you see it coming back and is it going to be an M&A? Do you think there's an ideal market that will begin to open up at some point in the future? What types of companies and talk just a little bit about that. I think we're going to net, return to the mean of history. If you look at 20 years or 30 years or 40 years venture capital, 85% of that is M&A exits and 15% are IPL and I think we're going to return to that kind of model over time not in 6 to 12 months but over time. At Edison we have a 20 year history so we've seen 87 unmade transactions and we've been lucky enough to see 14 IPLs. That's kind of the model that we hope to get back to in the next 3 or 4 years. If we don't get back to that model there are a lot bigger problems in the world to worry about but I think were headed back there now. In the M&A front, we've certainly seen some of the strategics come back more in the last 6 months than the prior 6 months. They can certainly get their house in order. Unlike the last bobble, this time around the business sector is actually in better shape. Last time the business sector was overinvested and went through a massive retraction. This time around it was the consumer. Companies that are buyers of our portfolio companies are in better shape overall but there are fewer of them. That plays a role. On the IPL front, you've seen the market open up a little bit here with the number of successful IPOs in the last 30 or 60 days. I think that there's no shortage of real demand from small cap growth public company investors. They're looking for growth and that's the issue. Where are they going to find growth companies other than the ones that come out of our venture cycle? In the public market were talking about single digits, low single digits to high single digits growth rates, for anybody that's over a billion dollar market cap. As the markets pick up we'll see more IPOs. I do think the next 3 or 4 years are going to be challenging. The IPO market, for all the reasons everyone's read about, is highly stressed for venture backed companies and while M&A activity may, the hard numbers continue or at least they did until September of last year, those folks are looking to be opportunistic too. If you were on corporate development for Amazon, the world is your oyster. You can buy companies for fractions for what you could buy them a year ago. The only way we all make a lot of money is when people overpay or pay a premium for growth. In order to pay a premium for growth you have to have a currency in your market, your security has to be valued at a premium in order to part with a premium until the markets returns to a robust top of the cycle which we can all take our guesses at how long that takes but it's not happening tomorrow. I think over the next couple of years M&A is going to dominate. I don't think anyone here will disagree with that. I think we're actually going to see a real spike in M&A in the next 6, 9, 12 months. The big question is going to be whether it will be financial buys or strategic buys. Like Steve said, there will be a whole lot of companies running out of cash. Some of those will be force sales. What does that mean for us as investors? Obviously we look for companies that can be stand alone successes but it also puts it's a real premium on, I look for differentiative technology that can look attractive to multiple strategic buyers. To Steve's point, what hurts in our business, if you're looking to sell to a financial buyer and, literally just wrote this in one of our newsletters, you're basically selling at the exact same multiple that were likely to interact. If that's the case, the only return from the VC fund is the inherent growth of the company, the organic growth. That's tough to make a lot of money. It doesn't protect you from losses. The venture business has historically been about big wins that more than make up the losses at least in the early states. What we're looking for are the big strategic exits. In the IPL markets its tough to figure. We're looking at open table success, log me in this week looks like it's going to be very successful. It's not big volumes but the numbers are very good. Those stocks are popping. For companies with meaningful revenue on a significant scale which is the way it should be perhaps but not necessarily the way it was. Not necessarily a lot of proven profitability of an open table on the margin there. I'm having trouble figuring out the public market. The ones that are getting out seem to be well received. If I had a fear systemically, I really miss the olden days with all the boutique investment banks, I worry as you get concentration of investment banking but also concentration in the mutual fund business. It's the exact same dynamic that's hurting angel investing for entrepreneurs. Where the venture firms get too big they can't write the small checks for the angel investments. Same thing happens on the IPO side. I argue that a software company shouldn't go public and raise more than 50 or 60 million dollars. What are you going to do with more than that? The problem is to go public with that sort of flow. The mutual funds just can't weigh in. Bill Miller can't touch it until you end up with this weird gap in the ecosystem so if I had a systemic fear, it's that something needs to happen there to return to the IPL heyday. I think Scott's idea to identified what I think is the biggest problem in the IPL market which is a structural problem. If you go back to the 80s, we had Montgomery Securities, Roberts and Stevens, these guys were out there taking companies public, raising 10 or 15 million dollars. You go back to Apple, Microsoft, sun, big names; they raised 10 or 15 million. They didn't raise 50 or 100 million dollars. That market is dead right now. Goldman Sacks, Morgan Stanley, and all those people aren't going to go out and under ride IPOs there going to raise 15 or 20 million dollars and that next tier just isn't there. There are a lot of efforts that are trying to be hatched right now whether companies are going public overseas and then come back over a year whether there's talk right now of some private equity exchange or a qualified purchase for alternative market where you don't have to go through SEC registration and basically trade and sell securities to people who are qualified purchasers who meet a higher standards. So there are a lot of talk about all the ways of achieving. My opinion is that unless we fix the structural problems and go back and have more boutique investment banks and more boutique mutual funds that aren't going to demand to have 15 million dollar in a company that's just not going to change. On the M&A side, M&A is not broken. It's cyclical. In a good economy, companies buy technologies. Big companies are inherently bad at innovating. There are a couple of outliers out there that are good examples of innovators like 3m but most are generally bad. Some companies like SYSCO get it. Their R&D strategy is an M&A strategy. And they say were going to consciously spend a certain amount every year to buy companies. What happens in an economic downturn, the first thing a CFO looks at is what are my discretionary expenses? Marketing, R&D. and they cut them back. In an upturn, companies make up for what they've caught and they buy companies so I agree with everyone else up here which is when the economy turns you're going to see is a buying spree of interesting technology companies that are IT based. People are going to make up for what they didn't do in the last couple of years. Any questions from the audience? [Some question] It depends. Scott said if it's a financial buyer, its someone's just trying to earn to their customer base, you're going to get kind of a crappy multiple. You're not in the fairy dust quadrant you're in the revenue and earnings quadrant and big companies are generally going to want to do an accretive transaction if they can. And they're not going to look great. They're going to be something less than the company's E less than 25. That means you have ten E to get there and if you don't have the E for the financial buyer you're not going to get hell of a lot. For the IT buyer, it really depends on how many people want the technology at that point. There is a real interesting analysis that is very dated that I saw about 20 years ago. The Solomon brothers did it. It basically looked at the best time to sell a company in a buying frenzy or when there is industry consolidation. It basically said you don't want to be the first to sell your company but you don't want to be the last. Because there's a finite universe of buyers you want to be sort of the 2nd 3rd or 4th cause that's when the premiums go up. When someone buys the first company no one's set the market price. The second and third companies are saying the damn I got to get me one of these! So the 2nd 3rd and 4th ones get up and at some point most everyone has a seat at the table and if you're still out there holding out there for the last, best and highest dollar odds are you're going to end up competing with those big player instead of getting the highest price. One interesting dynamic, and John's exactly right on with the E part, most acquires want something to be accretive. The nice thing about a strategic acquisition, one of the fascinating dynamics, is how big the big buyers have gotten. Look at the concentrated cash positions of a Microsoft, a SYSCO, a Dell. Dell just announced a billion dollar bond offering in this credit market to get more cash to do more acquisitions. That's pretty exciting. They want to aggressively grow. But those companies are all so big that they can actually with some smaller companies paying very big multiples can basically pay for with it with stock gains on the announcement. It all comes down to how sexy or strategic it is. But if you look at what happened with data domain, both EMC and NetAperna, kind of a big word for that property, I believe when NetAp raised their bid, their stock went up to more than make up for the dealt because the streets say, hey this is great. It's aggressive. They're going to grow big. They're just small little stock moves make financing even a 500 million billion dollar purchase relatively easy. So that's going to be our bread and butter. In a weird way, and were making a real effort at Valhalla to get to know those corporate customers much better, were reaching out to the corporate big heads, Sysco, Intel, Microsoft, Google. That's where we're going to be selling most of our companies. That's where the dollars are. I actually think the Darwinian shakeout is in the midst of occurring across all the thousands of companies that we've funded for a long long time. It's going to bode well for companies that get past that on the M&A front. If you're a corporate buyer, first you say, hey is this something I need? Are my customers asking for it? Are my strategic engineering teams telling me I need it? And then you debate do I need to build it or do I need to buy it? If you conclude that you have to buy it, how many places are there that I can buy it from? If I'm SYSCO or IBM I don't have to buy the number one vendor from any sector if there's a price premium. I can buy the number two potentially and make that number two the number one, depending on what the gap is. Right now, to folks in our business, there are a dozen if not 5 dozen companies in any given sector that are compelling and so the buyers are sort of a big platter of a of smorgasbord options. If we know that cradle it bodes better for the few that are left. I agree with all the comments here I just want to add that one of the important factors in an M&A cycle is the buyers business case cause they have to go up to the CFO, the CO, they have to make a business case for what they're about to buy. That has to do with taking what they're about to buy and putting it in their sales channel and how much revenue is that going to generate over X number of years. In addition to multiples and strategic values and scarcity, a business case is something that you as a small company and us as investors have to understand way before we get down the pike in the sale cycle. I've found that to be a very big driver. Speaking the same language on that front about the business case. On IBMs sales channel its showing them how they can generate 150 million dollars or 300 million dollars or 500 million dollars of revenue from their side of the table which can potentially move the needle on their multibillion dollar needs. That's a very worthwhile conversation that I've seen change the pace of an M&A transaction. To give a concrete example story that I'm surprised didn't get more attention locally is the Clear Standards acquisition that was issued. I don't want to say numbers but it treated the entrepreneurs and the investors very very well and the lessons there were they were very capital efficient. These were some product development guys that knew how to build software. They got out in front of a very sexy market and a carbon energy trading management. It got a product out there. I think they closed that deal in something like 45 days since the first meeting with SAP. It was just stunning. They sold an enormous multiple. SAP can basically, I don't want to belittle the technology, in some ways it's an inexpensive PR move by SAP. They are so big to get out in front of a green initiative and just buy it and claim that they own the space relative to Oracle learning or any of the competitors. That's the math they're doing. This is relatively cheap PR that they're doing but it made a very nice venture return and it made some entrepreneurs a lot of money. It's a great story. My question is about your relationship with the testing markets. I was talking to a major of a hedge fund and they were talking and admitted to me that for the first time in the [...] I'll take a crack at that one. It's something we all thought about for a moment in time and always somewhat since then too. At some point in the 6 to 9 months we all kind of tested the waters did a capital call and asked do we have a problem in our portfolio, asked some of the secondary funds. The problem with most institutional LPs they have liquidity issuses, not asset issues. Meaning their portfolio values gone down, they're not getting distributions, they don't have any cash. The issue is a hell of a lot bigger with private equity funds, with buy-out funds, than with venture funds. Were all a couple hundred million dollar funds or lower up here. Were not a fifteen million dollar buyout fund where they have a 10% buyout they've got at least a billion and half dollar commitment to one of our funds they have 10, 15, 20 million dollar commitment. There are institutions out there that have issues. What's different from our perspective as what should be encouraging from your perspective as entrepreneurs, there is now a somewhat efficient secondary market out there. If an endowment has a 10 million dollar investment or fund, and says I can't make the capital call, the penalty from not making it from our funds is basically you're screwed. You're going to give up everything you've put into the fund and walk away from it maybe a little bit better but that's about it. They look at that and say well I can either have zero or sell it on the secondary market and pricing out there sucks on the secondary market but at least I can get something. But at least there is some currency value out there. The few people that actually have liquidity issues can find a buyer last resort. Most of those issues that we've seen indirectly have been companies like Washington Mutual, companies got bought by someone then the acquirer killed the programs. Definitely a bigger problem for the buyout fronts. The scale is that much bigger. [audience question] In the old days the argument would be that the investors in the entrepreneur. The entrepreneur only needs a million [...] From my perspective the advice I've always given entrepreneurs is that at any moment in time you're raising money for the next 18 to 24 months. It may be a million dollars or 4 million dollars. Sit down and figure out your plan: the milestones you need to achieve, and then the finance way there but never raise less than 18 months or so cause if you have less time then you have a higher probability of being in death between milestones. It varies company by company. I would add that I think you're seeing a whole lot less of people throwing money at opportunities because money is scarcer now. I think you're seeing when folks form syndicates to invest they try to get enough money around the tables in the form of a few deep pockets so that if necessary they can fund that thing all the way to cash flow positive because in today's world the model of you make progress then you go out and someone pays you a step up is in question so you've got to have the world to fund it all the way. There's entrepreneur on that front because if ever your investors are reasonable on that value you can always go out and test the market when you have a plan b in case that's not realistic. I think you're staging is more likely in much younger companies. If a company has revenue and earnings then were not going to put in 6 months of cash but if a product is pre-product release were not going to put in 3 years of cash and say good luck, were going to pull the reigns back a little. I think there's a lot more syndication going on right now. There are two companies that were interested in that we've got term sheets on that were looking for syndicate partners on. We said in our partnership that we don't want to go this long. We want to do this with a partner and we want to have 10 million dollars on the table between the two of us. We don't want to take external financial risks. If as Scott said the company is capital efficient we think that that initial investing syndicate would have a good chance in getting the company across the finish line. I think there's a higher bar right now investments to get a syndicate partner. [audience question ...] I'm wondering if you could comment on that if you believe that [...] Maybe it's cause they spend less time with the companies. (Laughter) I have no idea. I have seen that data cut both ways so I don't know. We look to do price 60% of our deals in the mid Atlantic. We only go out of region if it's in our wheelhouse so that might help explain why you could have out performance out of region. We have a very high bar to go out of region. Example we did the Left Hand Networks deal in Boulder. It treated us very well. It was a big sale. That's a storage play; we knew that market very well. That might be behind it. People have a higher bar out of region. I'm also skeptical of a lot of those studies that can have a loss small numbers problem, the data can be skewed by one or two deals. I'm much more comfortable closer to home. I do believe in the concept of value add. I believe in being in close touch with the entrepreneurs. Board meetings are consumed by corporate hygiene. If that's your only touch point with a company, it's hard to help. It's much more fun if I wanted to be a stock picker id go to a hedge fund the velocity of money is faster id be much richer. What's fun is to help build companies and I think that gets fun when you can have coffee together, you can go get drinks, you can think about what keeps you up at night. What gets you excited. The flaw in the assertion in that study is that every deal that gets done has local investors. The local investors are often the first investors in a company. I think the better conclusion is that, and by definition is that they're making a bigger return than the out of town investors who invest in the 2nd or 3rd round, companies that raise money over time from geographically dispersed investors perhaps do better and have more liquidity cause they have more touch points, they have better connective tissue, or more relationships to leverage. That's the conclusion I would take. Be careful confusing correlation with causation. They're not the same. As Scott said, well set the bar higher. If we're going to do a company in Austin Texas were going to say it better be a damn good investment. Steve, Scott, John, are you willing to spend three days a month in Austin? Time for one more question. [question] Scott- Thanks. Shouldn't we ask the entrepreneurs that question? It's tough. The second quarter just ended so anybody on a normal calendar year is at that midpoint and a lot of companies set the bar too high on what they were shooting for in '09, there are a lot of difficult board level decisions. What do you do with a work force that is unlikely to earn their performance bonuses. The flip side of that is there are a lot of people that recognize that they're really thankful that they still have their jobs. There are a lot of companies that cut back significantly in Q4 of last year and Q1 of this year. Our hope is that our entrepreneurs are focused on the long term equity play and not the short term cash compensation. Those are all things that factor into the discussion. We only win if our entrepreneurs win. We need them locked in and happy. We try to find innovative ways to do that. From my experience the companies I've made the most money with are indemoniable entrepreneurs. They're going to win no matter what they make in the short term. There's just no stopping them from getting their baby to the big time. Those are the people we like to back. You see it in their eyes, it's contagious because you want to go to war with them. I think where you see this called into question is when you have companies in that "plan A didn't work, I'm now at bat hard on plan b and maybe that's working but maybe not working I know this is a tough environment so what does the future hold" what happens there is that those teams naturally look to their investors to say hey! Give me an early read. Are you with me or am I floating on my own? If I'm floating on my own, I need to know that early so that I can address that with my team early. It's uncertainty that we as humans don't deal well with that. That can have a very negative slippery slope dynamic to it. I agree with Scott's point on this. The great entrepreneurs are actually being aggressive in this timeframe. Their competitors are on their heels, the big guys are not investing in R&D properly, they're cutting back. They're being much more aggressive in the market. Accelerating whatever was working before to capture more market share, get more customers, etc. One interesting twist here is that if you take it down a level from the executives, one of the things I'm dealing with one of my companies and it's fascinating. I don't know what the right answer is. It's a company that prided itself on an open management. Every number was disclosed through the rank and file monthly. They literally had discussions so that everyone understood the key operating metrics and really knew what was driving business. This is a company with a lot of industrial exposure, sold #D CAD software, so they were very well positioned but they were selling the general motors and ford so the last two quarters weren't particularly good. If you show that data every month to your rank and file, you've created some management issues where suddenly people are wandering in saying, "my cousin just got laid off at his company and I saw that we just missed by 40% what does that mean for me?" I don't know what the right answer is. If you were to ask me 6 to 9 months ago I was praising this team for such great open management. There's also, what I've seen which I don't like, is an increasing bias during down times toward cash compensation. Cash is king. People devalue equity. I've looked at some people we've tried to hire recently from some companies and people willingly, enthusiastically, traded off equity for cash. There are also more people on the street which means you're not necessarily poaching but you've got a lot of people coming to you. It creates a management issue. If you post a job somewhere and you get hundreds or thousands of resumes and it's not necessarily the ones you want. From our perspective, when it comes to year end, and it comes to bonus time we look at, how did the company do versus its milestones and when you have a reset there's always the difficult conversation at the end of the year about does the reset count for bonus? If the companies not profitable, the bonus is not a bonus. It's a distribution of investor capital to the employees. Bonuses should really come out of profit. You have hard conversation that come throughout the year especially when you want to do a reset. People feel even after that reset that they're entitled to the cash bonuses. It presents some naughty issues. Once again thank you to each of our panelists. It has been a great event with great information. Very interesting. On behalf of everyone here at the Tech Venture Center, I'd like to offer a token of our appreciation. Thank you all. Thanks.
I was recently a panelist at the Digital Media Wire's Digital Media Conference East at the Ritz Carlton in McLean, VA.
Mobile Track: 4:15pm - What's Next in Social Media? This panel of leading experts discuss the latest developments in social media and give their forecasts for the sector in the coming years. Twitter as a business tool? The future for Facebook and MySpace? New market entrants? Niche networks? What's next in this exciting industry sector?
Panelists Ben Ilfeld, Co-Founder & Operations, The Sacramento Press Chris McGill, Founder, Mixx Haroon Mokhtarzada, CEO & Founder, Webs.com Bev Yehuda, VP, MultiVu, a PRNewswire Company Moderator: David Berkowitz, Director of Emerging Media & Client Strategy, 360i
I was recently a panelist at the Digital Media Wire's Digital Media Conference East at the Ritz Carlton in McLean, VA. Mobile Track: 4:15pm - What's Next in Social Media? This panel of leading experts discuss the latest developments in social media and give their forecasts for the sector in the coming years. Twitter as a business tool? The future for Facebook and MySpace? New market entrants? Niche networks? What's next in this exciting industry sector? Panelists Ben Ilfeld, Co-Founder & Operations, The Sacramento Press Chris McGill, Founder, Mixx Haroon Mokhtarzada, CEO & Founder, Webs.com Bev Yehuda, VP, MultiVu, a PRNewswire Company Moderator: David Berkowitz, Director of Emerging Media & Client Strategy, 360i