Something I Have Been Thinking About

If you don’t know Seth Godin, he has an impressive resume, and 11 best selling books.  Since his stint as the VP of marketing for Yahoo, he has really rested on his laurels though.  Moving into lesser and lesser niches while at the same time using his connections in the VC business to fund projects that in IMHO have no visible source of income.  Going from Yahoo to ning, and when another nonsense word wasn’t enough, he started adding vowels with Squidoo.com and then on to triiibes.com

That aside, his blog post today hit it right on the head for the pizza industry.  I will quote the first half here and add my commentary below.

If the local bank were offering a sale on dollar bills, ninety cents each, how many would you buy?

Most rational people would say, “I’ll take them all please.” Especially if you had thirty days to pay for them.

So, why, precisely, do you have an ad budget?

If your ads work, if you can measure them and they return more profit than they cost, why not keep buying them until they stop working?

And if they don’t work, why are you running them?

The time-tested response is that you’re not sure, that ads are risky, that you can’t tell. And for some sorts of products and some sorts of ads, you’ll get no argument from me.

I was in the PMQ online discussion the other day and this exact type of situation came up.  It was in regards to door hanging.  The bottom line here is that if you door hang and you get a profitable response then DO MORE OF IT!

If you come up with some excuse that “reality just doesn’t work that way” then you are copping out.  Either you have not measured your respose rates correctly, or you are living in la-la land throwing away money.

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3 Responses to “Something I Have Been Thinking About”

  1. Alex Says:

    Alex – Thanks for stopping by. I have no problem with contradictory opinions, so feel free to say your piece here. Triiibes is a strong community based on a web site. Had you purchased the book before it’s release you would know that. The site is not longer open to new entrants. Sorry that you are excluded. Oh yes, and it is based on a web site at ning, which is what I meant.

    Squidoo might have a “painfully obvious” revenue ‘plan’, but in it’s 3rd year it is still not profitable. Any person other than Seth Godin would have been shut down by this point. Please don’t even mention Yoyodyne. That company’s revenue was based on pop ups, the inane “You are the 99,999,999th person winner!” ones. They were so intrusive and short lived that every browser implemented a pop up blocker within months of them coming out. Again, poorly though out (no one likes them), short sighted (they were soon eliminated), and he sold the unprofitable company to…none other than Yahoo, who (google is your friend here) were stuck with a useless company that they paid a premium for because it was founded by…resting on his laurels again, Seth Godin.

  2. Alex Says:

    Typed in triiibes.com wrong, actually. Nevermind that.

  3. pizzamancer Says:

    Alex – Thanks for stopping by. I have no problem with contradictory opinions, so feel free to say your piece here. Triiibes is a strong community based on a web site. Had you purchased the book before it’s release you would know that. The site is not longer open to new entrants. Sorry that you are excluded. Oh yes, and it is based on a web site at ning, which is what I meant.

    Squidoo might have a “painfully obvious” revenue ‘plan’, but in it’s 3rd year it is still not profitable. Any person other than Seth Godin would have been shut down by this point. Please don’t even mention Yoyodyne. That company’s revenue was based on pop ups, the inane “You are the 99,999,999th person winner!” ones. They were so intrusive and short lived that every browser implemented a pop up blocker within months of them coming out. Again, poorly though out (no one likes them), short sighted (they were soon eliminated), and he sold the unprofitable company to…none other than Yahoo, who (google is your friend here) were stuck with a useless company that they paid a premium for because it was founded by…resting on his laurels again, Seth Godin.

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