Archive for the ‘Marketing’ Category

Extremely Trustworthy Companies

Don Peppers and Martha Rogers argue that there’s no better way for a company to make you trust them than for them to be totally honest when you least expect it.

They have a great new book on the subject, which you can pre-order now. It’s called Extreme Trust: Honesty as a Competitive Advantage. Here’s a quick excerpt:

Technology has now changed the landscape of competition so much that a new, more extreme form of trustworthiness will be required in order to be successful. Simply doing what you say you’re going to do and charging customers what you say you’re going to charge them will no longer be sufficient. Instead, businesses will be expected to protect the interests of their customers proactively–to go out of their way, commit resources, and use their insights and expertise in such a way as to help customers avoid making mistakes or acting against their own interests simply through their own oversight.

When you open a Coke, are you opening happiness or a bottle of sugar water? Coke marketers work incredibly hard to convince you of the former, but reality says you’re drinking sugar.

Few, if any, mutual funds can consistently beat the market, but financial services marketers work incredibly hard to convey the impression that their portfolio managers are the best. Reality says most are about the same.

Traditionally, marketers have been paid to spin the facts so that prospective customers choose the products they represent. I’ve been in marketing for a long time, but even I can understand that “spin” can variously mean distort, exaggerate, or even deceive.

Heresy? Nope, just the facts.

But what happens now, when humanity itself is being turned into one big fact-checking operation? Social media and 24/7 access to information means a customer in a car dealership is no longer at the mercy of a sales manager who says he has the only Sky Blue convertible hybrid in the state, and that he’s selling it for $1,000 under his cost. (Reality: there are twelve, and his quoted price included $1,727 in profit.)

I’d like to suggest that marketing needs to own the truth. That is, it needs to be marketing’s responsibility to get the facts straight and to make these facts easy for any current or prospective customer to access. But get the book. Don and Martha have been thinking about this a long time, and their ideas are crystal clear.

Mission Impossible: Reaching Customer Service


Your mission, Jim, should you choose to accept it.

Jim, you know the drill. Press the button above, and listen to your message, then read the top secret information below.

Our operatives have been unable to get the information they require from eight major companies: DirecTV, Dish Network, Verizon, Comcast, AT&T Wireless, Bank of America, Sprint Network, Sprint Nextel, T-Mobile, and United Airlines.

We have tried all the normal processes: emailing from their web sites, calling customer services, even writing letters. Time and again, we have received incorrect or unhelpful information.

Your mission, Jim, should you choose to accept it, is to create an insider network of experts at each firm. These experts must be willing to receive inquiries from our operatives and to supply the information they request in a matter of minutes.

While we cannot offer these insiders jewels, gold coins or an island nation of their own, each operative will be authorized to pay a reward for good information.

If you succeed, we’d like you to call this network Insidr, because we think that’s a really cool name.

Good luck, Jim.

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Are Companies on Other Planets Stupid, Too?

Shortly after NASA’s Kepler mission confirmed today the first planet ever identified in the “habitable zone” – the region where liquid water could exist on a planet’s surface – business executives convened in secret sessions to ask: will we soon face competitors from other planets?

The newly confirmed planet – imaginatively named Kepler 22b – could potentially support not only life, but also companies. Just imagine twice as many oil companies, or twice as many banks.

Do Keppler 22b residents also have to press 3 for tech support?

AP reports that scientists believe the temperature on the surface of the planet hovers around 72 degrees, roughly the temperature of a Starbucks if you sit near a heater.

Scientists don’t yet know much about the surface of Kepler-22b, or whether ATMs on the distant planet can remember what language you prefer to speak.

Douglas Hudgins, Kepler program scientist at NASA Headquarters in Washington, said “This is a major milestone on the road to finding Earth’s twin. Kepler’s results continue to demonstrate the importance of NASA’s science missions, which aim to answer some of the biggest questions about our place in the universe.”

Namely:

1.) Will NASA continue to be funded?
2.) How satisfied are you with your car dealer?

As for the corporate strategy executives, they determined that Kepler-22b is located 600 light-years away, which means companies have plenty of time to prepare for new competitors. Unless, of course, Kepler 22b companies started heading for Earth 599 years ago.

The total number of candidate planets spotted by the telescope is now 2,326. Only 22 of them have cell phone service, which makes AT&T and Verizon very happy.

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by Ken Liu

Michael Lane was pushing the “door close” button when a hand reached around the door of the elevator. The doors, obstructed, obediently opened back up.

Startled, Michael moved to the back of the elevator to make room.

“Sorry,” the young man said, as he rushed in. He was in jeans and cheap sneakers, no socks, and a white t-shirt with a giant chess pawn silk-screened on the front. He made Michael, in his shirt and slacks — no tie — feel overdressed.

“You’re Michael Lane, the venture capitalist, right?”

Michael tensed. He didn’t like being recognized by strangers like this. It often meant a competitor or, even worse, the press.

“Jack Hill, senior at CLU. I found your name in the alum directory. I have a business idea you might be interested in.”

Michael relaxed, slightly. He didn’t like these moments any better: elevator pitches.

“Every day, we get bombarded by intrusive and unwanted advertising, and we crave for something that will filter out the mess and give us our lives back. That’s why products like ad blockers for web browsers, spam filters, commercial-skipping DVRs are so popular. But there’s still so much advertising that comes through other channels. I’ve invented something that will solve the problem. Think of it as a spam filter for the rest of your life.”

*****

Michael was a Buddhist. Or at least he thought so. A girlfriend in college had introduced the books of the Dalai Lama to him, and he liked them.

The trust set up by his grandfather disbursed its corpus to him upon his graduation, and young Michael, over the objection of his parents, decided to use the freedom the money gave him to study at a temple in Nova Scotia. No, that’s not where you’d expect to find a Buddhist temple, but expectations, as Buddhists know, are deceiving.

The pristine water, bracing winds, and austere, craggy shoreline of Bras d’Or Lake were conducive to meditation and deep thinking. The old stone walls built by early Scottish Highlander immigrants, glimpsed through the mist and fog, inspired haikus about the passing of the seasons and the brevity of life.

Michael observed the flight of the eagle and the waning of the Moon. He sat for hours and watched, as the water in the lake became ice, the moment of transformation evading notice. He studied Buddhist texts and asked probing questions of the monks.

Michael remembered moments of enlightenment, when he thought he could see the falling rainwater slow down, when he could feel the connection between him and the trees and the wind and all Creation, and stretched the thin membrane that was the illusion we call reality.

But, after a while, temple life bored him. He missed driving, films, playing games on the computer. He found that he enjoyed enlightenment in small doses, but not as a way of life.

He returned home to look for something interesting to do, just as his parents had predicted.

He went into finance, and made a lot of money, but often he would remember his time at the temple fondly, and as he romanticized his memories of his time there, he thought that someday he would write a book about how to apply the mentality and ethics of Buddhism to business effectively, a sort of Idiot’s Guide to Being the Ideal Monk-Businessman.

*****

Michael sent his prescription to Jack, and a few days later, he got the glasses in the mail. The spectacles were thick-rimmed and very retro looking. In a note, Jack explained that this was only a prototype, and future improvements will slim the mechanism down, maybe even leading to versions that could be worn as contact lenses.

“The spectacles produce augmented reality, like those phone apps that let you see the names of famous landmarks. But rather than adding to what you see, our spectacles take things away. They filter out marketing and free you from their incessant eyeball punches,” Jack wrote.

Michael put the glasses on. He looked around, and nothing seemed out of the ordinary. I guess my office is clean.

It was time to go home anyway. Caroline had asked him to pick up some groceries on the way home. Michael stopped at the supermarket.

He stopped at the cereal aisle. All the boxes looked the same.

The cartoon characters, famous athletes, colorful letters forming bright, cheerful slogans, all gone. No more touched-up photos of appetizing “complete breakfasts.” No more claims about added nutrients. All the cardboard boxes looked identical: white, functional, with their names in sensible sans serif. The government-required nutritional information boxes were blown up and hovered above each box in big, readable font.

Michael took off the glasses, and the screaming colors and photographs and visual clamor rushed back. He hurriedly put the glasses back on.

He smiled. For the first time, he could pick a box of cereal without hearing in his head the jingles and catchphrases, earworms that had burrowed into his brain because Bobby and Sarah lived for those commercials masquerading as cartoons. He whistled, and, since no one was watching, tossed the box into the cart like a basketball.

Michael hadn’t enjoyed shopping this much in years.

*****

Highway billboards were blank, empty of the signs that he found so distracting: the strip clubs off exit 14, the factory outlet mall off exit 16, the luxury condominiums being built a few miles down.

As Michael drove down the tree-lined residential street to their house, he thought things looked different. He couldn’t quite put his finger on it, but something was off.

He slowed his car, and looked at everything carefully.

Tom Lance, who lived across the street, was out mowing the lawn. As he got out of the car, Michael waved at him, and glanced at the Lance house. Something was missing from their yard, something that had bothered him before.

The campaign posters. Tom had atrocious politics, and he had put up these obnoxious campaign posters that annoyed Michael every morning as he got ready for work. But now, the lawn was empty.

As Michael stood next to his car, he looked up and down the streets. Everything seemed right, but it was like a famous photograph altered subtly.

He took off his glasses, and put them back on, and took them off again. He sucked in his breath.

The glasses airbrushed out the For Sale signs in front of houses, the bumper stickers pleading for the whales, the yellow ribbons declaring support for the troops. Most of all, the waving flags in front of most of the houses on the street, the bright colors of Old Glory, were missing.

Michael had a Russian friend in college who had told Michael that he found the ubiquitous public displays of patriotism in America frightening.

“Back home, the government and thugs make you praise Mother Russia. But here, you make each other do it. Even at a baseball game everyone stands up in unison to ask God to bless America.”

Michael had gotten angry at the time, and launched into a passionate speech about the value of spontaneous patriotism and robust democratic debate. “Casual propaganda, you mean,” his friend had said. “Thinking substituted by mutual marketing. You think a bumper sticker is debate?”

The glasses seemed to agree with his friend.

*****

“Like any spam filter, the glasses may produce false positives or false negatives,” Jack said. “It can be adjusted.”

Michael hung up the phone. He had to admit that he did prefer the view of the neighborhood with the glasses on, but the pleasure felt guilty, like he was admitting to some failure.

“Dad, do you want a Coke?” Six-year old Bobby asked.

This was a standard trick of his. Caroline forbid the children from drinking soda, but usually Michael would allow Bobby a sip when he brought his father one from the fridge.

“Sure,” Michael said. “Thanks.”

Michael snapped open the can and took a sip. It was cold and sweet, but Michael, a lifelong Coke drinker, thought the taste was off. Was this a store-brand soda?

The can was red, but the Coca Cola logo and mark had been blurred out.

When Michael was in high school, he had been a long-distance runner. The workouts were long and tiring, and Michael was not in shape as a freshman. One fall afternoon, the coach ordered the team to go on a ten-mile conditioning run, and Michael gradually fell behind. He thought about stopping many times and quitting the team that afternoon, as cars sped by him occasionally, the passengers jeering at him. As he pushed himself on, step by step, his mind delirious with thirst and exhaustion, the only thing that kept him going was the thought of finally getting back to school and buying an ice-cold Coke from the vending machine in the school lobby and drinking it down in one gulp. He pictured the red can, the white cursive letters, the beading drops of condensation on the aluminum surface, just the way they were shown in the commercials.

He took off the glasses, and the familiar and reassuring logo jumped back into focus. He took another sip. Much better.

*****

Michael saw that Caroline had left the ironing board out. Today was Thursday, laundry day.
He imagined her ironing his shirts for him, pressing down to make the seams sharp, the collars flat. The identical white shirts hung in a row in the closet. It was almost like a uniform. It was easy to get dressed in the morning, but it also sent a message, a message that changed depending on who he was trying to impress.

Would he wear a tie that morning or not? He had to calibrate the right image, a separate one for investors and for entrepreneurs.

It was a kind of seduction, when he met people. It began with the address in the right part of town and continued with the bright lobby, the smiling receptionist, the modernist furniture, and the firm handshake. It was about money and doing exciting things with that money, but that didn’t mean that it was cold and emotionless. In fact, it was very much the opposite.

Michael wondered what an investor would see if he saw Michael through Jack’s augmented reality glasses.

“Honey, are you home?” Caroline called from upstairs.

He imagined her. It was Thursday night, and she might want to order take out. They would have some wine. And after the kids were in bed, she might want to take a walk. There was supposed to be a meteor shower tonight. She would wear some lipstick, and she would smile at him a certain way. What would he see, if he kept these glasses on?

Michael took off his glasses. He wanted to see things the way they were meant to be seen.

*****

“I like the concept,” Michael began.

Jack was sitting in the chair on the other side of the table, expectant.

“But I found that I didn’t like an advertising-free view of the world as much as I thought I would,” Michael continued.

Jack nodded. “I expected that. But didn’t you find that when you decided to let the ads back in, you found them not as bothersome? Even enjoyable?”

Enlightenment is fine in small doses, but not as a way of life. “You think it makes the ads more effective if people realize how much they miss them when they are gone.”

“We like being pitched to, being seduced. But we forget that when there’s no way to ever turn it off. The filter isn’t just good for the people who think they don’t want the ads. It’s also good for the people doing the pitching. Advertisers who understand that would want to sponsor us. That’s an alternative business model.”

Michael smiled. “That’s going to be one hell of a marketing message.”

Enlightenment is potentially very profitable.

This story was written by Ken Liu, and originally published by Kasma Science Fiction Magazine.

How to get customer referrals

Here are dozens of proven ways to get your customers to recommend your company to their friends.

How to ask for a referral: According to Jill Griffin, loyalty expert, you should say, “Who do you know that might appreciate knowing about my services?” After you get the first name, say, “Who else do you know?” Repeat the process until your client runs out of names.

Special discount: Customer gets a 5% discount on their next order for a referral.

Discount times two: Customer and friend get a 5% discount on their next order.

Discount times two, making the customer look good: Invisible Fence, which protects dogs by outfitting them with collars that keep them in their yards, offers free collar batteries for a year to any customer who refers a new fence customer. The company then sends a $100 gift certificate in the customer’s name to the prospect.

Birthday/special event celebrations: Host an event for a customer on special occasion. This causes them to invite others.

Women’s (or men’s) nights: Bring two others and get special privileges or prices.

Send a catalog to a friend: Whenever you take orders from customers (i.e. order forms, catalogs, etc.) provide a space in which they can instruct you to send information to a friend or colleague.

Affinity programs: Get special interest groups to align themselves with your offerings (think: Sierra Club MasterCard). The group gets a new income stream; you get the ability to attract people with strong special interests.

Support fundraising efforts: Offer services to non-profit groups and schools at a discount, so that they can resell them at a profit to support their programs.

Thank you letters: Send a thank you letter to a customer just after their order has been delivered. Feel free to ask whether they know of others who would give you the privilege to serve them.

Compensate employees: Offer a special incentive to employees who refer their friends to their company.

Referral list: Maintain a list of customers who are happy to be called by prospective customers.

Donut patrol: Drop off doughnuts, candy, fruit baskets or the like to valuable customers. The more dramatic and notable the present, the better. They’re likely to tell others what a unique firm you have.

Digital gifts: Send customers – and prospects – highly useful information in digital form. Make it valuable enough that they are likely to share it with others. (The document you are now reading uses this strategy.)

Free booklets: Provide concise handbooks to customers. Send them one extra for a friend.

Referral cards: Personalize cards for highly valuable customers (perhaps with a photo of the customer and the pool/house/painting/new deck/etc. you sold her.) She can use the cards as an easy way to refer you to a friend and ensure she gets the benefits you offer customers for referrals.

Customer ratings: Encourage customers to rate your products/services publicly (i.e. at your web site) and share these ratings with others. This has some risk, but it shows you have nothing to hide and puts pressure on your team to be ultra-responsive to customers.

Reference letters: Collect letters from delighted customers and post them on your walls, post them on your web site, and include them in prospect mailings.

Insiders Club: Offer special events and/or privileges to customers who generate a certain threshold of referrals. For example, you might hold a special party or invite customers to a sporting event.

VIP service: Offer faster, better service to customers in exchange for referrals.

Free newsletters: Send email newsletters to customers, and make them easy to forward. Include a link at the bottom that makes it easy for someone to sign up for the newsletter after receiving it from a friend.

Share the love: When the press writes about you, send copies to good customers and include an envelope and/or sticky note that makes it easy for them to send the article on to a friend.

Birthday/Anniversary cards: Send one to your customers, along with an incentive to refer a friend.

Free giveaways: Give away highly visible and useful items to loyal customers – with your name on them – such as t-shirts, jackets, bags, portable chairs, etc.

Share the fame: With permission, give credit to customers for better ways to use your products or solve problems your customers share.

Share the photos: Publish pictures of your customers. The world’s largest dairy store operator, Stew Leonards, encourages customers to photograph themselves holding a Stew’s shopping bag at notable places around the word. You can find these photos in the stores, and now you can find bags from this Connecticut retailer all around the world.

Charlie Sheen and Ashton Kutcher clash

Truth be told, this article does not have much to do with the television show Two and a Half Men, except that by mentioning Charlie Sheen along with his replacement – investor and social media pioneer, Ashton Kutcher – I’m increasing the chances that a few thousand people might stumble onto this story while wondering how Kutcher is doing as a replacement for Sheen… and then they’d realize the power of keywords.

Keywords drive everything today. At any given moment, there are about 50 trending topics – a handful of which are hot – and pretty much every blogger and journalist on the planet tries to jump on the wagon and hijack readers by providing a unique spin to the top 50. That’s why you see Dancing with the Stars headlines like:
- Did Chaz Bono Survive?
- Dancing With The Stars: Body Transformations
- J.R. Martinez the Favorite to Win
- New Girl Makes Glee, Dancing With the Stars Look Old

So far, I’m off to a disappointing start with this article, and it’s not just because I’ve failed to provide intimate secrets of Hollywood stars’ sex lives or proven diets that cut pounds while you eat luscious desserts. My intended audience includes marketing professionals, business strategists, and other thoughtful people – but so far all my keywords target couch potatoes who think Kim Kardashian is the smartest entrepreneur ever born.

Here’s the rub. Even business executives don’t get that excited about business, so business keywords tend to all blend together. If I read one more article about CRM, customer experience, customer focus, customer loyalty or customer satisfaction (all these included simply to restore balance to this article), my head may bounce off my keyboard.

Truth is, business leaders need new strategies, not the outdated ones that now fail to provide ROI, revenue growth or increased profits (stop me, I’m doing it again.)

This means truly original ideas don’t show up in search results.

So unless you are one of the 89 writers who still: a.) Work for The New York Times, Wall Street Journal or Forbes Magazine, and b.) Still get paid to write, you are stuck in the same box as the rest of us, trying to figure out how to share new ideas in between references to Warren Buffett, Michaele Salahi and Journey guitarist, Neal Schon.

Is marketing dead?

I’m wondering whether marketing will still exist in five years. Nearly all customers will carry smart devices, and it’s possible that smart customers will only interact with smart companies.

No technology in human history has been adopted faster than wireless devices like smartphones and iPads. Tens of millions of these devices are spurring countless developers to innovate.

Customers are able to act smarter, because they have far better access to information and empowering capabilities. Traditional marketing tools like advertising and outbound solicitations look dumb by comparison, and will soon be ineffective and irrelevant.

Many marketing professionals don’t recognize the degree to which this sea change is the result of a perfect storm of four disruptive forces that are just now bearing down on us: Digital Sensors, Social Influence, Pervasive Memory and the Physical Web.

A very quick primer on the four forces that may kill advertising.

Digital Sensors are being embedded everywhere, transforming everything from your car to your toaster into a smart device.

Social Influence means that increasingly other people are influencing transactions or even preventing transactions between companies and customers. Imagine a crowd of your customer’s friends shouting, “Stop!” just as your salesperson is about to close a big deal, and you get the idea.

Pervasive Memory highlights the fact that every interaction via a digital device leaves a record in databases. When you make an error, everyone will know it. When your prices, quality levels or satisfaction ratings lag competitors, it will be obvious.

The rise of the Physical Web means that we will soon be surfing and bookmarking the real world like we do the Web. The sort of consumer tracking practices that have emerged online – following individuals and recording their actions – won’t be tolerated in the real world. Expect a flood of new privacy laws, and much stricter restrictions on the practice of advertising.

Om Malik, writing at GigaOm, today noted that Apple sold four million iPhone 4S devices in its first weekend, and observed that such devices are “in competition with the old way. Thanks to new chip technologies, cheap sensors and fast growing networks, the idea of what is a phone has changed. This is leading to behavior changes and new interactions. They are behaviors of a new connected life. These new behaviors will change many different parts of society and business.”

Disruption always comes from the edges of your industry.

Source: Clayton Christensen

Marketers at established firms often misjudge the pace of change, because they focus on their biggest competitors. But your biggest competitor is less likely to change your industry than a new start-up. Disruption comes from the edges, not the center, of an industry.

The only way to compete successfully in the years ahead is to be smarter than both your customers and your competitors.

By smart, I don’t mean that you hire smart executives, although that might help. I mean that the systems in your company act smart, and that all customer touchpoints act smart.

Unless you work at a disruptive start-up, Google, Facebook, Amazon or Apple… your company is almost certainly not prepared for the storm ahead. This does not mean that established companies are doomed, but it does mean that they’ll need to look at their business and their customers in ways that run counter to established channels and structures.

That’s why many of the incumbents who succeed at innovating do so with a bit of outside help to help them recognize and respond appropriately. So if you work for an established firm, learn what it means to “Act Smart” in this rapidly changing environment. Then look to intrapreneurship, skunkworks, your customers, independent developers and other sources of inspiration, and be prepared to go outside your comfort zone (and give up some control.)

Where will marketing dollars – and talent – go?

Most of the creativity and money poured until now into advertising, positioning and promotion will end up in the products themselves.

Instead of making a product look cool in an ad, companies will make the product actually be cool to find, learn, use, enjoy and share.

Customer experience will be the new marketing. Today, “customer experience” is a vague term. Soon, it will be the driver. Customer experience will be the main way to not only set your product apart, but to also gain attention. It will be about substance and style, functionality and form.

This is not just a business crossroads. It is a career crossroads.

Maybe the sky is not falling. Perhaps I am overstating the scope of change. But if I am even partially correct, these changes will impact the course of your career as well as the success of your business.

It is far better to lead a change than fall victim to it.

We win: jobs, profits, politics and climate

(Part 1 of 2) The price of restoring our economy, saving our banks, and ensuring long-term prosperity is higher than most are willing to pay: the end of football, baseball and every other win/lose game.

From the time we are old enough to grasp a ball, we are taught that there are winners and losers. You want to beat the other guy. Ties aren’t good enough. Only winners matter.

This is why the world is so miserable right now. Everywhere you look, you see people who care more about winning than anything else. These are not bad people. As the saying goes, “We have met the enemy, and he is us.”

I want to win, too. So do you. But this mindset is like a cancer, mostly because the world has become too interconnected to tolerate a win/lose mindset. Most people lose. That’s why things seem so bad.

We need to stop teaching kids to beat the other kids. We need to stop spending our weekends rooting for the other guys to lose. We need to find a way to bring out our best, to challenge ourselves physically and mentally, without doing so at the expense of the other team.

The human race has never before had more robust solutions to the challenges we face. We are better than ever at raising food, finding shelter, staying safe, educating our young, curing disease and understanding the universe. To 99.9% of the people who ever lived, we are like magicians.

And yet, we somehow have convinced ourselves that our future is bleak. We can’t agree on solutions to our “problems,” and these problems terrify us.

This is such nonsense. We have so much promise, so many opportunities, so many blessings.

We have one curse, and that is a dominant mindset that says one side has to lose.

The alternative is a win/win mindset. It won’t come easy. If you doubt me, imagine a World Series that ends in a tie, and everyone is happy. That seems like heresy, but I’m increasingly convinced it is the only path to prosperity. More on this in my next post.

How to kill your business: sell harder

No one gets paid to serve existing customers. If you doubt me, compare the salary of your top customer service rep to that of your top salesperson.

Before you start telling me that it takes more talent to sell than to serve, slap yourself in the face a few times. That’s nonsense. Especially if you are in a complex business, service is the hard part.

But most companies have the mistaken impression that all growth comes from new customers. Especially in “tough” times, they shift resources from serving to selling. This is suicide.

Try this: ask your top ten customers if they mind if you reduce their service levels so that your firm can spend more time looking for other customers.

Advice for top clients

If you are a top client of other firms, watch them like a hawk. All around the world, companies are shifting their focus from serving to selling.

Look for companies that have their heads down to serve their existing clients. These are the ones that others recommend, whose managers and employees are banding together rather than tearing at each others’ throats.

By the way, I put “tough” in quotes because these are not tough times unless you adopt that attitude. You are surrounded by opportunities. Most industries are changing rapidly. Change opens doors for the best companies.

The reason why times feel tough is that most companies are on a endless treadmill of competition. They hunt new customers, but once these new accounts are settled they ignore those customers, too, and hunt more new ones.

When this doesn’t work, they blame their employees.

Nuts.

Leap Year: the joys and risks of start-up life

I once raised over $1 million in venture capital with little more than 10 Powerpoint slides. That was the high point. The low point – a year later – was admitting to myself, and my employees, that our start-up was dead.

We all talk a lot about entrepreneurs and the American Dream, but the truth is more complicated than people imagine. Lots of people are entrepreneurs because they have no other option, especially over the past couple of years.

Go ahead – take a ten minute break.

This week, a new web comedy launched, called Leap Year. In a touching and funny way, it tells the story of five friends and their five start-ups.

You might recognize Julie Warner from Crash, or Craig Bierko from Damages. It’s a cut above the typical Web programming, and thankfully lacks the advertising breaks of commercial TV.

The whole series is funded by Hiscox Direct, which sells insurance to – you guessed it – small businesses. But Hiscox is wisely keeping a very low profile, and they are just visible enough on the site so you know who to thank.

A huge gaping hole in the insurance marketplace?

Being the curious and bold type, I phoned up Kevin Kerridge, who runs the Direct business. He used to run the Direct insurance business in the UK, and perfected a process for allowing small firms to obtain quotes and buy a policy online, without ever having to talk with a human being. (But you can if you want to.)

Nothing too exciting about that, right? Wrong. It turns out that until Kerridge arrived in the States, not a single U.S. insurance company sold insurance online to small businesses. None.

It took six months – the regulations are piled high and deep – but last November Hiscox became the first. The next challenge was to figure out a way to get Americans to become aware of the Hiscox name.

No selling. Just a slice of life.

Long story short, Kerridge green-lit Leap Year as a way to just get Hiscox noticed. Google searches already drive business to his online quotes site, and he wasn’t so much interested in getting more short-term sales out of the comedy as he was in starting to build a real brand.

Leap Year offers a slice of the entrepreneur’s life. It wraps the ambition, greed, excitement, camaraderie, exhilaration and terror into one touching and funny package. You care about the characters, and have a week in between episodes to think about how you got yourself into the life of a small business owner.

As a serial entrepreneur, much rings true for me:

- Wife pregnant? (check)
- Start business anyway? (check)
- Wake up sweating at 3 a.m.? (check)
- Thank the heavens above I quit my job? (check)

Life is short. Go for it.