We live in a time of interconnectivity and community. Our children understand these concepts better than their adult counterparts. Traditional companies with millions in hard assets and tested infrastructures see their value overshadowed by seemingly harmless entities like YouTube. Sure, it might be fun to watch the occasional weird or educational video, but what real value does YouTube bring to the table? It is entertainment, right? Mind candy, chewing gum for the soul--It isn't something you can hold in your hand. You can't eat it or put it on and wear it to work. It owns no factories, so why is a seemingly nebulous company worth so much and what are we to make of the overall trend it represents?
Everyone agrees that the world changed with the invention of the Internet and high-speed connectivity, but we were already connected by telephone, fax and mail. So, is the perceived "value" these Internet driven companies indicative of just another trend, a fad that will fade over time? Questions, questions and more questions; we are all somewhat confused yet fascinated. What will all this mean to your small business today and in the future? Should you care at all?
The reality is that it will mean a lot to your small business, and you have to care and stay awake in these times of turbulent change. What we are witnessing is a radical shift in how we reach the people that do business with us. The world has taken the first steps away from the traditional marketing approach of the past and has moved onto a new and powerful concept called "Building your Platform!" In effect, we are no longer looking for customers. Instead, we are welcoming people into our individual communities and asking them to recommend us to their platforms (communities). Our primary goal in business has shifted away from making the sale and moved to developing and nurturing our ever-expanding company platforms. Think of the concept as "Referrals on Steroids." On the surface it sounds almost the same, but understanding the differences can make or break your business.
Let's start off by defining some terms. A customer is someone who buys your product or service. A client is a customer that comes back and makes additional purchases. A platform is a group of people with whom you have some controlled contact on a regular planned basis. Controlled contact, in the Internet age, means groups that have given you their e-mail address and that you are talking to regularly. Talking is different than just trying to sell. In the Internet age, if all you want is to sell a product, everyone can feel it. This is a critical difference. Most businesses already have customer lists, but they are not sharing information and talking with their clients. They have customers but have failed to turn that asset into a platform.
Is the concept of platforms new? No not really. They have existed in many forms in the past. The pony express, mail, radio and television represent examples of platform building. Oprah Winfrey makes millions every year, not because she is the inventor for some new cure or product. Rather, she has a very large platform of people that she communicates with on a daily basis. Howard Stern's radio based platform was worth 500 million to him. Oprah and Howard are great examples but turn that example to the Internet and you have the mother of all platforms, Google. Worldwide, "search" has been replaced with "google it."
Name any traditional company; let's take General Motors as our example. How big is their platform? Your first response might be "Pretty big." After all, they have commercials on television, mail campaigns and radio, print ads and a website etc. They have sold a ton of products over the years and everyone knows them. But the question was "How big is their platform?" It's hard to say, but by our definition, their platform seems small to nonexistent. They simply do not talk to their client base regularly. When was the last time the CEO of GM asked your opinion on a new prototype car?
There is a huge difference between talking and selling! Most corporations are tight lipped about their plans and innovations. They are traditional and fear based. In this new world we live in, the business winners will realize that what makes us human is our voice and love of community and communication. |
