Archive for March, 2009

Let’s Talk Price Again

by Dan Furman on March 27, 2009

I have this conversation at least once a month:

Potential Client: Ok, I’d like to hire you. But I found someone willing to do the job for “x”. Just match their price, and the job is yours.

Me: Why didn’t you just hire the other person?

Potential Client: Well, I like your writing better.

Me: And that’s exactly why I’m more expensive. I’m sorry, but if you want the other person’s price, you’ll have to hire the other person.

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The conversation then goes one of three ways - sometimes I get the client (and get my price… although I have to be honest - I’m not that expensive.)

Other times, I don’t. And sometimes (not often, but often enough to mention), the person is a bit of a jerk about it. Like they can’t fathom that I charge more than Chuckles McNoodle, who they found on Craigslist.

Here’s another monthly conversation:

Potential Client: What do you mean you can’t do this until next week? It’s only three pages!

Me: I apologize. But understand that you aren’t my only client. In fact, I’m technically booked through next week - I’m squeezing you in as it is.

Potential Client: Well, so and so said they can do it tomorrow.

Me: Well, so and so is free tomorrow because so and so has no business lined up. Care to guess why?

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Now, if it sounds like I’m venting… well, I am (a little). This is my blog, and I can vent if I want to. But there’s also a lesson here for all businesspeople (especially small businesses, where owners converse with each other) - if you want person X’s work, then don’t compare them to person Y. There’s a good reason my price is what it is, and my schedule is such. It’s the very reason you want me to do your project.

If all you care about is price or getting it done tomorrow (and let’s be honest - almost all of those “quick” deadlines are arbitrary), then don’t debate me over my terms - just hire the other guy and be done with it. I won’t lose sleep, trust me.

When I hire people, I hire them because I want THEM. I don’t compare their price (or timeframe) to anyone else’s. In general terms, if I want their expertise, I am usually willing to wait a reasonable amount of time, and pay their rate.

About SEO and PPC

by Dan Furman on March 24, 2009

I’ve wanted to write a post on SEO (Search Engine Optimization) and PPC (Pay Per Click), and why I like PPC better. However, I found myself in a message forum discussion about this last night, and the following pretty well sums up my thoughts. You can pick up the discussion pretty easily:

Joe wrote: In other words, if you’re strapped for cash, spend time to research SEO rather than spend money on a professional who can be very expensive. If you’ve got the money, then hire a pro.

Dan Replied: The thing is, I never recommend anyone even going into business when they are “strapped for cash”. If a (primarily) online business is strapped for cash, and they have no SEO, and no PPC, well, what is the plan to get cash, then? Wait? Because SEO takes time - it’s not an overnight thing. That’s a terrible business strategy that is doomed to fail more often than not.

To address something Steve asked me - yes, I am dependent on PPC. However, I still feel like I am a little more in control. In the past, Google has changed things overnight, and it killed a lot of people’s SEO efforts. Yes, they can change PPC overnight, but it’s a lot less likely.

You are correct that used in concert with other things, SEO is fine. I do agree with that. But I am also of the opinion that if you have primarily an online business, your business model / website should be good enough to convert a PPC campaign into profitability. Because if it isn’t, it may not be the best business model (in general terms). This is a little harsh, I understand, but it’s how I feel.

Joe, to answer another one of your questions - PPC costs me nothing. Zero. Zilch. Nada. I spend $x per month (more like $xxx, really), and my site converts “Y” number of clicks into contacts (and then clients.) The dollar amount I get from Y is always a lot higher than X. PPC is an investment that I happily make because it delivers me people who want what I do.

All that said, I do get a decent amount of clicks from organic, and I have made small efforts to improve that. I’d be lying if I said it wasn’t on my mind from time to time. I just concentrate more on PPC and converting those clicks.

FRESH KILLED!!!!

by Dan Furman on March 21, 2009

I always preach that we’re not all alike in terms of marketing. Just because you think something is good or bad does not mean your customers will think the same thing. Also, just because you want (or don’t want) a product isn’t necessarily an indication of whether other people will.

That rang true again last weekend.

Maryellen and I took a nice Saturday drive. On our way home, we drove past a farm that had a big hand painted sign.

In big red letters, the sign said “FRESH KILLED CHICKENS”!!!

Now, I’m far from queasy, and I have no problem eating meat. I understand things must die so I can eat them, and I’m fully aware that my burger once said “moo”. It doesn’t bother me.

But I’m also one that likes to be as far removed from the actual killing process as possible. I like my chicken long dead, cleaned, shrink wrapped, and sold in a supermarket. “Fresh Killed” is really not what I’m after.

In fact, if you wanted to keep me OUT of your store, a good way would be to advertise “FRESH KILLED” anything. I’ll probably drive on by. Which is what we did.

But that’s not really my point. My point is not only does the place provide fresh killed chickens, just having the sign indicates there are people out there for whom this is an attractive thing. Somewhere, somebody will pass by and say “oh look, they have FRESH KILLED CHICKENS. Let’s stop and get some!!” (or, more likely, “git sum”.)

We’re not all the same. I drove by. Someone else’s day was made. And may we never meet.

Have a great day!

The AIG thing in a nutshell

by Dan Furman on March 18, 2009

Imagine this conversation:

Conservative businessman type: Hi son, how are you today?

20 year old son: Not so good… my car insurance is due, and I don’t have the money.

Conservative Businessman type: Well… ok, let me help you. I don’t want you to have to give up your car. But, I need you to promise that you’ll make smarter choices in the future regarding your finances. Ok?

20 year old son: Sure Dad. Thanks!!

 

The next day, Dad sees son getting ready to go out.

 

Conservative Businessman type: Where are you going, son?

20 year old son: Oh, we’re going to scalp tickets to the big game. Don’t wait up!

Conservative Businessman type: Ummm… wait… didn’t I just loan you money for your car insurance? Where is this money for the game coming from?

20 year old son: Errrr… ummm… well, you see, I already promised the guys, and…

 

That’s the AIG bonus thing in a nutshell. Betting a lot of those guys who got/ok’d bonuses would be on Dad’s side in the above, too.

I can’t say I’m surprised. Are you? I mean, nobody is saying “Oh, a huge insurance company filled with big business pricks acted in a slimeball way??? NO, not them.” 

Bad PR boys. You really blew it. You can fix this by hiring someone really good at getting a clear, plain message across. I’ll explain it for you and make it all better. I don’t charge much - couple mil ought to do it. :)

Obama looks to help small businesses

by Dan Furman on March 17, 2009

Yesterday, President Obama talked about small businesses, and proposed a few things to help. Amongst them, he wants to free up lending capital so underfunded enterprises can visit the SBA and….

zzzzzzzzzzzz

Huh? Oh, sorry…  I just lose total interest with stuff like that. Because to myself and many others, it’s pretty close to useless. I have worked with hundreds of entrepreneurs, and prettymuch none of them got/get/are getting SBA loans.   

Now, I understand that legislation like this is necessary. It helps “big” small businesses. But you know, it does nothing for the true “backbone of America” - the guy or girl sitting around their kitchen table saying “you know, I’d like to give this plumbing/photography/pet sitting/IT consulting/graphic design/handyman/etc thing a shot.”

These people - the true entrepreneurs, never get anything. We’re not going to the SBA - we’re too small. We’re not looking to “invest in another building” - we’re simply hoping to get a new client this week. We’re not “opening a new location”… if anything, we’d like to move our location from the kitchen to a more permanent space in the den.

Yet, despite our size, a lot of us do ok - I make a decent enough living, and I personally know of hundreds of others that do - indeed, there are millions of us. In fact, I’ll bet anything we outnumber the “SBA” type businesses. So why don’t we get some help?

Here’s what I would propose:

  • Give us a real home office deduction that we aren’t afraid to take because it’s an “audit red flag.”  If you’re worried about some schmuck starting an Amway business just so he can write off his heat, tie the deduction to revenue only. This will weed out the fake businesses, and help us real ones.

 

  • Provided we make a minimum of $20,000 gross, then on the first $100,000 of revenue, give us a preferred tax rate. Give us a real incentive to try and make some money. The $20,000 threshold, again, ensures that people just starting businesses to fart around and take deductions won’t be able to take advantage of this.

 

  • Health Care… one of the biggest stumbling blocks to people starting a small business is health care. You want to have universal health care, Obama? Start with us. Start with the hardest working, ballsiest people out there - those who go it alone. Again, let’s put a $20,000 floor on income - but if you hit that 20k threshold, you get health care (either make it a deduction, etc).

I like my $20,000 number in the above because, to me, that’s the tipping point. The type of things I am proposing (which, let’s face it, will be promptly ignored) are too easy to abuse by someone just starting a business to take deductions. No, to get the stuff I’d like to see, you gotta go earn 20k minimum. If you can’t make $20k, being in business full time might not be your thing anyway.

Ok, there’s my political post for the week/month. Have a great week.

 

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