“Mama never told me there’d be weeks like this…”
It has been a while since my last entry and I am relieved to say it is mostly for good reasons. Over the last few months, this little venture has begun to take hold – to wit:
- I have been on the speaking tour about The Interaction Engine capping it off with a spiel at ad:tech this month.
- We have closed two new clients – one in the consumer electronics space and one in the mobile app space.
- I am getting better at presenting our system in meetings – now I can kinda explain it in about 30 minutes. It still falls far short of the 2 minute elevator pitch – but hey – we are getting better.
- A number of marketing and technology companies have contacted us to “partner” – not sure what that means though
- We have done a few presentations to media buying agencies as they are challenged to “buy” social media. They are interested in working with us (again – no idea what that means)
- Most important – revenue is beginning to accrue
Yet, despite the clear progress and momentum – I recognize the utter fragility of this venture. Of the dozen or so folks that are part of this company – most (but not all) are getting paid some compensation. No one is getting what they deserve – yet.
But my biggest challenge is that as we get more noticed, there are far more opportunities that need to be assessed and prioritized. Fundamentally, these opportunities run along three basic lines:
- Technology Partnerships – there are 4 companies that we are talking to now in the marketing technology space. These companies are anxious to partner with someone like us because often these tech companies have no easy distribution channel. A cool recommendation engine is nice – but it’s hard selling a “stand-alone” technology to a big brand or agency. As a quasi “system integrator” of social media technologies – they see our Interaction Engine as solving this major channel issue for them. thsi is not a pr
- Funding Options – my initial plan was to sell the Engine we have now (does not require any development) to generate about $500K in revenue. While that plan is still in play – I realize that getting to that sales threshold might take longer than I can wait to begin the second phase of this company – to develop/ sell “self-serve” integrated social media programs to SMB via web hosts. I am encouraged by experienced colleagues who tell me I can go get funding now with what we have. TBH, I am still unclear whether any VC would consider this investable. My colleagues are so confident that this can get funded that they are willing to spend their own time over the next few months to work on this. On the one hand, that’s a funding gift that I would be crazy to reject. But on the other hand, it will still require my time for an exercise that I’m not convinced will have a successful outcome. Getting VC funding is a huge time hog – not matter who helps you. I keep wanting to put it off or get a traditional loan to ease the short term cash crunch. this is since this is not any way understand how to make this spaceing this work. it is frustating to say the least but this need
- Media Alliances – Unlike most other marketing technology companies, I focused on the technology platform but I built it within a holistic system that includes an organized set of content assets from a diversity of publishers. To me, content is not king – but rather the juicy bait to start the engagement process which is why I had to collect relevant content assets. So while I spend a considerable amount of time building these alliances – there are many more people looking to partner with us because so many content producers and writers have been caught in the tumult of “freep” (free and/ or cheap) digital content distribution. In our system, these folks have a voice and a stake, so we solve a problem for them too. The problem is deciding who we can take on.
Most interestingly (and yes – it is a surprise), it seems that our Interaction Engine System (a coordinated, tech mashup of a monetizable “community of interest”) is an approach that can integrate disparate marketing activities into an operational program. In essence, instead of pitching an individual program to a client where I have to plug into their operations – we are being seen as our own ecosystem and other marketing programs and/ or technologies have to plug into us. I won’t say I planned it that way – but I am loving how this is playing out.
Now on to my biggest “what’s keeping me up list?” for this entry:
- Knowing which contacts are worth pursuing on the tech front, on the funding front and on the editorial front. The response to my presentations has been great – but overwhelming actually.
- Keeping the pressure up on the sales front – our issue now is too many great leads and not enough time to follow them all up.
- Keeping the team motivated and monetized – always a struggle whether you are a new company or an old one
The next four weeks tend to be intense because marketing budgets are being finalized so we need to keep the pressure up – yet people’s mind are on the holidays. This requires an elegant and thoughtful approach to sales (I hope we are up to it).
Day after day, it seems the ride I am on gets more thrilling, more scary and more substantial. As the stakes keep going up, Mama never told me there would be weeks like this where too much is happening too fast. But I guess that beats the other option: too little happening too slow; by a mile.
“So dear Mama – I am grateful you taught me to appreciate a good ride when I see one which is exactly what I am doing – even though it feels like I caught a tiger by the tail.”
I don’t intend to let go now.
Filed under: Consulting, Corporate business models, Digital Agencies, digital marketing, direct marketing, Marketing Management, profitable business model, social media, startup, VC funding | Tagged: advertising agencies, digital marketing, judy shapiro, system integrator |