Start Up Blog

Jerry goes web first

Posted in entrepreneurship by Steve Sammartino on September 26, 2012

Most Seinfeld fans are in raptures about the new series by Jerry SeinfeldComedians in cars getting coffee.

It’s so good on so many levels. But it’s not the just humour that is worth commenting on, it’s the way the series has been presented to the market place. It has been launched on it’s own website comediansincarsgettingcoffee.com and hosted by video sharing website Crackle.com (which is owned by Sony). It’s a classic example of the strength of personal branding (admittedly there is possibly non bigger than Jerry) and the hacker approach the web brings to those with a brand strong enough to self publish. Going direct to fans not only enables one maintain creative integrity and control, but invents all sorts of monetization possibilities.

At this stage I can’t see where the financial win is for Jerry or Crackle (Crackle is free with little evidence of advertising?), while the deal between the 2 parties is also unclear. One thing for sure, is that this model is one we are going to see far more often – big stars and micro entrepreneurs going direct to market – to create the art and projects they want to create. Another comedian who did a great job of this approach was Louis CK who also decided to sell tickets to his fans direct from his website. This all reminds me of one of the great visionary talks from Garry V who predicted this a few years ago.

Smart brands and people are now going straight the web. It’s not about asking how we can ‘also use the web’ but it is a simple web first or maybe even web only mentality. Controlling our own distribution channels matters more than ever. The fact is it works better for most people to do business directly and it allows fans and content creators (or sellers) to have the direct relationship they’ve always wanted.

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Niche Marketing & Startups

Posted in entrepreneurship by Steve Sammartino on September 11, 2009

Once upon a time I used to think that entrepreneurs had to be smart enough to develop a niche strategy. A nice smart strategy which will keep them hidden from the big ugly and powerful incumbents and other startups. A strategy to extract sneaky revenue.

I learned how wrong I was the hard way. I was way to clever with my first startup 1-bil (an anti stress drink). We developed an incredibly clever niche distribution strategy aiming for 5 star hotels, business class travelers on airlines and airports. What we called a ‘sneezer strategy’ of niche distribution to grow from. The category influencers.

Anti stress drink

Turns out niche strategies limit the number of doors we can knock on. It limits the number of people we can sell to. It limits the angles of success we can have. It limits the number of rejections we can have (and we’ll get plenty) When we get a rejected from our core strategic market, we lose confidence, we count how many points of distribution we have left and start to struggle and lose faith. We invent our own failure.

The niche market is great for well resourced companeis doing innovative stuff. Not so for startups. It’s very counter intuitive. Entrepreneurs need to learn the truth about niche marketing. And the truth is this:

Gaining traction with any new product or company is inherently difficult. We ought sell to anyone who’ll buy our stuff. Get the message out to as many people as possible. Take all the revenue we can get and what will transpire is a niche strategy anyway due to natural startup dynamics. We’ll get rejected 9 out of 10 times on average. We’ll end up in a market niche, from which we’ll have to grow and expand from anyway. Starting with a niche in mind, really just limits our probability of success.

The startup lesson is this: Find your niche through market dynamics, don’t target it.

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New distribution points

Posted in entrepreneurship by Steve Sammartino on July 14, 2009

One of my favourite marketing strategies is this:

A new distribution point.

The thing that is cool about this is that we don’t need to worry about whether there is demand for the product or service (the idea is to pick a category which is hot) Rather just to ensure expanded availability creates value.

Been Squeeze are on the coffee wagon.

Drive Coffee - Been Squeeze

When I first read about Coffee Drive in’s via Springwise I was a bit skeptical. But I’ve found it to be just the ticket while I’m driving down the coast for a surf. And every time I go there it’s quite busy.

Here’s what’s exactly the same with Been Squeeze and any other espresso coffee retailers:

- the coffee taste

- the price points

- the packaging

- The promotion (based on high traffic location )

Here’s whats different – the way & where you buy the coffee. So what this does for a startup is reduce strategic complexity because the ‘coffee model’ is proven. Demand for coffee exists – they are just leveraging it further. Ther are no prizes for originality in business – just making for making cool stuff and making profits.

The real kicker for me is their service which is very friendly – more like a cafe than a McDonalds. In fact on my last visit on Saturday than even asked for my other coffee cup from the previous day to put in the trash for me. And now I am talking about it.

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Best Packaging Ever

Posted in entrepreneurship by Steve Sammartino on April 6, 2009

What does great packaging look like?

Chances are you will have to package your widget for your start up. Or at least something in your new business.  I often ask people the best packaging they have ever seen. Coming from a consumer goods background I get a lot of varied answers, but never do I get the answer I propose the be the ultimate.

The banana:

banana1

Easy opening, but only when it’s ripe

Consume straight from packaging

Changes color from green to yellow as it nears its zenith

Quality of each unit verified by packaging

Built in ‘used by date’ indicator – packaging changes color – so awesome.

Category defining

Gives off product fragrance

Uber Ergonomic design & handling

Ship in packaging with mutlipack nesting design

Childproof

Protects interior

Biodegradable

Oh, I nearly forgot, good for slipping enemies in a car chase.

What can you learn from Nature?

How would nature package your product?

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Simple Innovation

When we think about innovation, our minds get lost in big ideas and large investment. The Space shuttle, Electric cars, desalination plants, the Airbus A380. We’ve been influenced by mainstream business media, and the military industrial complex. As entrepreneurs we’d be much better placed to think as micro as possible when considering how to innovate. Because unless we are ‘inventers’ or ‘engineers’, the only innovations we need to care about are those which get to market.

Take this simple innovation from the publishing industry.

magazine-subscription

Magazine subscriptions which have been repacked to be sold in a new / yet existing distribution channel.

Before this shift in mindset, magazine subscriptions were only sold as in magazine leaflets, through call centers and via door knocking. Enter new packaging format, and all of sudden a magazine subscription is being retailed in newsagents and bookstores (This photo was taken in Borders). It becomes a simple ‘gift’ which provides us something we can hand ‘hand over’ to the recipient to touch and hold – we can even gift wrap it. It opens new revenue possibilities.

It’s clear that there is little capital expenditure with this innovation,  which is simply a widening of distribution. In fact – new forms of distribution are often the most profitable innovations.

Start ups – When innovating, think micro.

Steve – founder rentoid.com

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