Net Neutrality aka Network Neutrality or Internet Neutrality is meant to be a neutral internet, unbiased, and equal to all. On Dec 21 2010 the FCC made three rulings regarding this very idea. The tight voting, which will also need congressional approval are:

1) Internet-service providers will not be able to block legal applications or services
2) Providers will have to disclose their network management techniques in a push for transparency
3) Providers will not be able to “unfairly discriminate” against content

The rulings were cut along party lines and with a Democratic President in office and a Republican Congress, the spin and swagger from the politicos is in full swing. Considering the billions involved in internet control (or lack thereof) it’s a red hot issue and ambitious politicians and lobbyists are eager to be heard. But let’s stay away from their tussle for this post and look at what it actually means to folks who rely on the web for their income and information.

This ruling has no bearing on mobile phones as the FCC declared cell phone networks to be a separate issue. With the tremendous growth rate of mobile internet users, separating the two seems short sighted and counterproductive.  Along with leaving out the mobile market the rulings are ambiguous.

The order prohibits network providers from charging application and content providers for access to the network’s Internet service customers. However, it does provide the possibility of “paid prioritization” with a very high hurdle.

So, the FCC has laid out the hoops for the poodle show, only the next act involves lions. Broad band providers like Verizon and Time Warner have indicated a tier pricing system that could become a pay to play structure. They say if they pay for and maintain the lines, which costs billions, they should be able to charge what they like. That sounds fair in a free economy right? Google says Internet regulations will hinder if not halt innovation. They say whatever they touch on the internet they make better anyway, and they specifically point to YouTube. Who wants to stop innovation? Not me that’s for sure!

Then there’s the proverbial writing on the wall. Can we rely on the network providers to do the right thing? Would they see a problem with disallowing competition to even come through? Can we depend on them not to extort the mom and pop shops to financially compete with the fortune 500 for page rank?

That’s the conundrum, when you listen to the network providers you hear the word “free” and when you hear the government they heed the word “regulation”.  I don’t know about you, but I pay for my internet as is and don’t really want to pay more especially for a censored version. And when the government uses the word “regulation” I hear taxation.

I don’t know, I can’t make up my mind. Should the government oversee the internet or should we let the providers call the shots?

We’ve heard them all. Excuses that is. We’ve been at this Internet Marketing game for almost 10 years now. In that time we’ve seen a lot of things change with respect to the Internet, our industry, the economy, politics, etc. But, one thing hasn’t seemed to change much. That’s the excuses and objections that we hear from small businesses about why they aren’t using the Internet to market their businesses.

I thought I would catalog 4 of the most common objections that we’ve heard from people over the years. I’ll also share a few comments from those same people after allowing us to help market their small businesses on the internet.

1.) We really don’t get a lot of business from our Website
This is probably the most common objection that we hear from people about doing business on the Web. Generally, this objection comes from a person whose Website has little or no hope of generating any business to begin with because it’s completely static and has been neglected for years.

I’m never surprised, albeit disappointed, when I hear an objection like this. What’s really at the heart of this comment is the disbelief that the Web can actually provide any real monetary value for their business. Like I said, we hear this one a lot. Fortunately, after they become Cazbah customers, we hear this quite a bit too:

“The Internet sales have been tremendous…much better than I had hoped for! During our first busy season, it was the max that I could possibly handle. We are also seeing an increase in our order size of about 40% over our walk-in trade. Our return on investment has been better than we ever anticipated.”
Diane Cappel, Owner – Cappels, Inc.
WATCH VIDEO

2.) Our Website is really like an electronic brochure
Meaning? It’s doing nothing for us. The people who respond with this objection are typically rooted in some pretty basic and traditional marketing practices and haven’t yet embraced the Internet as the most effective marketing tool for their businesses.Once they step over their own objection, this is what we hear:

“Before Cazbah our Website was just an electronic brochure. With Cazbah, it’s an active part of our business that brings (sales) inquiries in that we can filter through.” “I would say on average, we’re talking about five to ten inquiries a day.”
Andy Severson, VP/GM – Armstrong Brands.
WATCH VIDEO

3.) My customer’s aren’t on the Internet, or don’t use the Internet
Generally, we hear this excuse from traditional businesses, manufacturers or distributors, that have been doing business a certain way for a very long time. In most cases, these folks have restricted themselves to a particular territory or region and haven’t considered how the Web could change their business by opening up new markets or opportunities for them. Once we show them how much more efficient and effective (i.e., profitable) it is to do business on the Web we hear:

“We get more than 5 phone calls from the website each day. When somebody calls us from the Website they’re usually very interested in buying something. If we have it (in stock) we’ve got the sale. At least 60% of our sales are attributable to the Website and plenty of the rest of the sales are helped by the Website because we can refer people to it…”
Don Welch, Owner – Cylinder Services.
WATCH VIDEO

4.) We don’t sell our products online
This objection comes from people who don’t yet understand the power of the Internet to reach new customers, regardless of the type of products they are selling. In most cases, they don’t believe that anyone would spend the kind of money that it takes to buy their products on the Internet. There are still quite a few people that we run into who have the incorrect assumption that the Web is only good for consumer products that will easily fit into a shipping box. Fortunately, we know otherwise and so do all of our customers:

“Before Cazbah we had no ability to sell online. Since our relationship with Cazbah (our business) has probably doubled. We ship nationwide every week, almost every day, whether it’s small sales UPS or common carrier tractor trailer. The volume and the ticket sales are just tremendous. We are now getting three to five to 10 thousand dollar sales.”
Joe Jackson, Owner – Bristol Valley Hardwoods.
WATCH VIDEO

What are some of the objections you have to expanding your business online? What are some of the successes you’ve had through your website? Write back we would love know and help if we can.

Fiber vs. T1 – is there really a choice?

When Cazbah moved into new offices a few years ago, we explored options for phone and internet service.  The only feasible option was to choose a conventional T1 line to be installed that would be split between a VoIP phone system and internet service.  We contracted with a major provider who coordinated the work between a number of companies and after a few months, our service was operational.  This approach also required the purchase of a standalone hybrid VoIP telephone system to “translate” between the T1 and our phones.  The system works fine.

Unfortunately, as it turns out, the build-out of a fiber optic network throughout Ontario County was not yet positioned for service into our facility.  A little background:  The $7.5 million ring of optical fiber being built in Ontario County is designed to bring high-speed Internet service and improved wireless and cellular service to all corners of the county. The ring is a project of the nonprofit corporation Axcess Ontario, also known as Finger Lakes Regional Telecommunications Development Corporation.  Additional information can be found at http://www.co.ontario.ny.us/tdc/index.html .  One national bit of recognition from the Harvard University’s Ash Center for Democratic Governance and Innovation at the John F. Kennedy School of Government entitled Ontario County Fiber-optic ring garners praise can be found at http://www.rbj.net/article.asp?aID=185241.  All-in-all, the project has received significant recognition on a national level that should be saluted by all of us that have access to the ring.

Now, back to Cazbah:
We recently determined that our bandwidth was insufficient due to our growth and we went about the process of bringing in additional bandwidth.  We contacted a local company, Finger Lakes Technologies Group and were pleasantly surprised to discover that the ring was now totally accessible to our location and after a few simple conversations, we committed to the installation of a local link to the new fiber optic network that was now approaching maturity.

Here’s what it came down to:

Choice 1 consisted of the installation of an additional T1 that, although it would increase our bandwidth, involved a lengthy installation process involving more than 1 service provider.

Choice 2 would be to go with Finger Lakes Technologies Group and have them install a link from a local demarcation point into our facility.

The T1 would be a static increase in bandwidth that was based on conventional technology that has been around a long time.  The fiber optic link, based upon new but proven technology, has a very interesting feature in that now, when our continued growth demands additional bandwidth, we simply place a call and through a software modification, can instantaneously dial up the bandwidth without requiring the installation of any new hardware!

Oh, and by the way……  the economics of the fiber ring option certainly added to making the choice an easy one.  It is not exactly an apples to apples comparison, but the performance difference of 10 to 1 in download speed and 2 to 1 in upload speed along with a significant cost advantage certainly suggests that the choice between fiber and T1 is an easy one for those whose proximity allows access.

There’s nothing better than a fired-up client … a client eager to spend resources and energy on doing smart things in a smart way … a client ready for results and willing to do what it takes to get them.

And there’s nothing worse than having to tell that client to holster it back up because they aren’t ready to pull the trigger.

That is sometimes the situation we find ourselves in when our small business clients are interested in implementing social media strategies before they have made sure that the location they are driving traffic to – usually their Web site – is prepared to handle the traffic.

When it comes to marketing their own brand, many small- and mid-sized businesses are working with limited resources.  So a decision to increase focus in one area often inadvertently becomes a decision to decrease attention in another.

Embarking on a social media strategy is a major undertaking for any company, an effort that often manages to soak up a lot of internal resources.  This can mean that the more mundane efforts it takes to update the company Web site can often go ignored, leaving the place you are trying to drive more traffic to looking something less than its best. Why is this a problem?  Because social media efforts are just a means to an end, with your final goal being to convert traffic into sales.

It’s important that the first step of your social media strategy be taking a look at your Web site and making sure it is an effective end-destination for every tweet, blog post and shared video.

• Are there clear “calls to action” throughout your Web site?
• Are your products and service pages current, accurate and complete?
• If you are targeting a specific audience with specific services/products needs in your social media efforts, are those services/products easily found?
• Are your contact pages updated and complete?  Is it easy for customers to continue the dialog that you started with a social media vehicle?
• Is your Web site content of interest to your social media audiences?

Pages that need simple corrections should be taken care of right away.  Any section that needs more extensive effort should be avoided as landing pages for social media traffic.  Once you are comfortable that your Web site is ready and able to do handle the new traffic, your company can feel comfortable in taking its first shot at social media success.

For years now my customers have asked me about video on their websites and how that medium might be used to compliment their products and services sales. Until recently, I have always been a bit cautious because of the time and cost of producing videos versus the benefit received from such a marketing activity.

In the last year we’ve seen a number of tools introduced into the marketplace to increase value while decreasing the amount of time spent producing videos. Social media sites like YouTube and Facebook have made it very easy to upload videos and share them. Additionally, video camera and even cell phone technology have made it much easier to create videos and get them onto the internet for viewing.

Why
So why would you ever want to create a video for your ecommerce web site? You want sales. After all isn’t that why you have a commerce site? Video can give you a real competitive advantage by sharing your knowledge and advice on how to get the most out of the product or service you are selling. This will attract viewers who,if done correctly, can become customers.

How
I like to use a video camera called Flip Video. This inexpensive video recorder is small and easy to use. It creates quality video without a lot of complexity. Most importantly Flip Video has very easy to use software for editing and uploading your videos. Once you have shot your video you need to decide where to upload it. I use YouTube as the hub for my customer’s videos. YouTube allows you to store your videos for free and has a number of tools to allow you to promote them. Once I have uploaded the video to YouTube I can embed that video on my customer’s web site, blog, Facebook, etc.

Results
In the end the reason we do this is because we are creating value. We are showing the world what we know about our products and services so we can build trust and ultimately make more sales. This is precisely what a number of our clients have done. For instance take a look at my customer’s video listed on the Google search page for the term “saniguard spray”. My customer doesn’t just sell Saniguard spray, he creates value by showing how to use it properly. This video has done a lot to increase their sales of the Saniguard spray product line. Lastly I will leave you with a video that took me about an hour and a half to shoot, produce, and upload. I used a Flip Video, uploaded to YouTube and then embedded the video to my customer’s appropriate product web page. The “video value” my customer creates in this video will be sure to increase his sales. How can you increase your “video value”?

We’ve been at this specialty small business online marketing game for the better part of 10 years now, and we have hundreds of successful specialty small business customers, for whom we generate literally tens of millions of dollars in new revenue from the web…

So here’s what really chaps my set-upon; I would have to say that every customer (to a one) that we’ve gotten (and still have by the way) over the years, has had at least one (if not several) bad experience with another web development company or so-called guru or expert, before we’ve had the pleasure of their business.

In most cases this has cost them tens of thousands of dollars in fees for a mediocre website and whatnot, plus the loss of revenues, i.e., the money they should have made but didn’t. This can easily get into the hundreds of thousands of dollars.

Being completely objective, which is difficult for me to do in this particular case, this is a blessing and a curse:

The Blessing — There are an ever increasing number of hucksters out there putting out an incessant commentary on the virtues (not that they would know virtue if it bit them) of Internet Marketing, in all of its varied forms and functions.

That’s good, because whether they realize it or not, they are advancing the cause, so-to-speak, by raising the awareness of the relatively uninitiated small business owner or entrepreneur for all things Internet. If there is anything we can use more of it’s awareness.

The Curse — These maleficent marketers who shill, bait and switch, sell a pig in a poke, have no concern for the bad faith and jaundice they create in the industry as a whole. I can’t tell you the number of times we hear things like, “You guys are all the same.” Or, “I just talked to a group that does exactly what you do.” Or, “I spent 2o grand with the company who did my website and now they want even more money to fix it. Why should I trust you?”

Needless to say most small businesses are gun shy when it comes to Internet Marketing or the companies who profess expertise in this area. Can you blame them?

For this reason, I’ve come up with the following questions to help small businesses in their vetting process when determining an Internet Marketing company to work with.

How many customers do you have?

How many customers like me do you have?

What is your Federal Tax ID?

How long have you been in business?

Can y0u give me a list of a dozen customers, with their website addresses, that I can call and talk to personally?

Do you have employees (i.e., the kind you can touch), and if so how many?

Can you give me a demonstration of your work?

Who will I be working with if I choose to become a customer of yours?

Can you show me first hand examples of the results, SEO, Conversion, Sales that you have achieved?

Do you have your own technology? If not, who’s do you use?

Do you have any certifications, Google Analytics, Addwords, etc?

What are you going to do for me EXACTLY?

What is this going to cost, EXACTLY?

And of course; Does your mom still do your laundry?

For our part, I welcome all of these questions and any others that you can think up. We’ll continue to keep killin’ it for our specialty small business customers, under-promising and over-delivering every single time.

The E Myth — Revisited, by Michael E. Gerber — Why Most Small Businesses Fail and What to Do About It (The dog-eared book to the right is my own personal copy from 1995).

The subhead says it all! As you know if you’ve read my other posts, I’m all about overcoming the small business epidemic (a term that I coined several years ago), which gets right to the point that “most” small businesses don’t work, or fail.

Needless to say this book speaks to me. Actually, it’s been speaking to me for years and was instrumental in the development, structure and continuing success of my own business, Cazbah.

The term E Myth relates directly to the Myth that; I am an Entrepreneur, therefore I know how to start, run, manage and succeed at a small business. The data regarding small business failures in this country say otherwise. In fact, most small businesses are started by what Gerber refers to as “technicians,” people that make things or do things and start a business because they think they have a better way of making or doing things. I’ve always related the difference between leaders and managers to this point, namely – managers do things right, leaders do the right things. So simple, so relevant…

One of the characteristic pinch points for entrepreneurs is that they can never seem to get ahead. Gerber refers to this as working in the business, rather than working on the business. They are so busy making stuff that they never raise their eyes to the horizon to see what’s coming or where they are going. Like walking across a field looking at your feet. You may never get to the other side…

There are many, many small businesses (most actually) that I’ve interacted with over the years that are in a perpetual vicious cycle. They go out to their markets sell something, bring it back to the shop and build it, go out sell something, bring it back build it..(repeat). Their financial results porpoise as a result. Picture the fish (o.k., mammal), above the water – below the water – above the water – below the water, etc… It never ends and they never really grow or get ahead. They just exist like this, in some cases from one generation to the next.

Gerber offers some simple and actionable advice on how to correct the E Myth through the development of the Franchise Prototype. This is a business model that adopts the attributes of a franchise business. He goes to great lengths to give credit where it’s due (Ray Crock – McDonalds). Here’s a little tidbit to give this point some credence. “Regular” small businesses fail at a rate of 70% – 80%. Franchises succeed at a rate of 75%. Get the point? As an aside, for the entrepreneur considering a business venture, being a franchisee may represent your best choice!

Most small businesses lack structure and any repeatable process documentation, the attribute that truly defines the franchise business model. Gerber contends that the strategic systemization of your small business will reap huge returns and resolve the E Myth… and he’s right!

If you are 1) an Entrepreneur, 2) business owner or manager, 3) considering becoming an Entrepreneur, 4) may someday be in a position of business management, 5) are currently employed or, 6) are considering employment… (you get the point): You owe it to yourself to read this book!

Michael Gerber’s E Myth is what I consider to be one of the foundational texts that every small business should have on its book shelves and have in practice! Buy it and read it.

The best way to begin the discussion of Success on the Internet is with a brief historical review about what exactly the Internet is and why it came into being in the first place. This may seem like an exercise in futility to some but, I assure you knowing the origins of “the Web” will help in understanding the dynamics of all of the Social Media dialogue that’s flying at us these days.Often times the basic premises upon which the Internet was established are overlooked by companies and individuals seeking their fortunes online. This is unfortunate and often leads to disappointment with their less than stellar results. A brief review of e-History will serve you well as you approach the Internet as a means to your success.

Going Back to Where it All Began
In 1962 (That’s over 40 years ago. I know this because I was born in ’62.) Dr. J.C.R. Licklider, who at the time was working at MIT as a research scientist on a project funded and sponsored by the Defense Advanced Research Projects Agency (DARPA), came up with the concept, what he referred to as the Inter Galactic Network. You see, the defense research work of DARPA at that time involved several desperately and remotely located research facilities, located at several different major universities, MIT and Stanford being among them, as well as several military installations across the country.

Communication And Collaboration
Dr. Licklider (his friends called him “Lick” for short) realized that to effectively work together on co-development projects the research teams located in these various centers needed a way to effectively communicate with each other. Ultimately, they needed to develop a means by which they could collaborate on various aspects of their research activities. Is this starting to sound familiar based on where you see the web going these days?

Where the Internet Came From
Dr. Licklider is most often credited as the man with the original vision of the Internet. In two of his most influential papers, Man-Computer Symbiosis (PDF document), which he wrote in 1960, and The Computer as a Communications Device (PDF document), which was co-authored with Robert Taylor in 1968, he describes his vision of computing, which at the time of his writing was a mere concept, a good idea at best. He also goes into some detail about the purpose of the Internet, and why it was built.

Remarkably, “Lick” also predicted the future by stating that by the year 2000 millions of people would be online, connected by a global network. Isn’t it interesting that Dr. Licklider was absolutely correct?! He also set the table for the types of Social Media interaction that we as users of the “Inter Galactic Network” are having these days.

The Future – Now
As a futurist, he foretold of modern computing conveniences like the graphical point and click interface, digital libraries, ecommerce, online banking, and technology independent software that exists on a network (the web) and migrates to wherever it’s needed. He was also known as the “Johnny Appleseed” of computing. This is a well-deserved nickname for a man who planted the seeds of computing, and in many respects got the digital age started.

My point in this post is this, the Internet was, is and shall ever more be a communications medium designed to bring “people” together, regardless of whether we call it Social Media or Corn Flakes. No doubt about it, we have more ways to communicate with desperately located people than ever before. As I said earlier, that’s not anything new. Speaking personally, I’m having a direct (albeit cryptic = 140 characters at a time) conversation with any number of people from around the globe on Twitter as I write this. Now that is COOL!

I wish I could have met Dr. Licklider but, unfortunately he has since passed away. I consider myself a futurist too and would love to compare notes with him. There are many other contributors to the development of the web that deserve mention but, that’s for another day and another post.

Get comfortable with saying “No.” It is the most important word in your small business vocabulary. One of the predominant issues that small businesses face, due largely to the absence of a CCI – Customer Composite Index (see previous post), is their inability to say “No” to a prospect or customer when they should.

Here’s how it works; they (small business) have a sales opportunity but it’s really not what they do. But, the customers or prospect trusts them, perhaps due to a pre-existing relationship. And that prospect or customer really needs whatever “it” is. Rather than saying, “I’m sorry, we don’t do that. But, I’d be happy to help you find someone who does.” Or, “I know exactly who to point you to, let me make a phone call…” The small business decides that there’s an opportunity to make a quick buck, and “it” really isn’t that far-afield…

Well, I think you probably know the rest of the story (thank you Paul Harvey). The small business takes the job and ends up scrambling (i.e., jumping through hoops) to get it done. They don’t really understand what they are doing so the quality isn’t there. They won’t deliver on time and they spent too much money building or delivering “it.”

Net, net…
Net result? A big looser! Not only did they alienate everyone within their own small business, they lost money on the job, (they would know this if they kept track of such things). And most egregious of all, they broke the trust of a customer who may very well tell all her friends and neighbors about what a pathetic job the small business did for her. Don’t even get me started about the social media implecations of such a message getting out about you. That’s called Word Of Mouth and in this case, it’s not good!

I wish I could say this doesn’t happen very often but I can pretty much guarantee that if you are reading this you have either been involved in such a debacle, been on the receiveing end or, you know of one first hand. Solution? Do what you do best and forget the rest! Your customers, your employees and your banker will love you for it!

If you are going to succeed on the web, be it as a manufacturer, retailer, dealer / distributor, consultant, coach or whatever, it is essential that you identify, as specifically as you possibly can, who your prospective customers are. This is the foundation upon which Target Marketing is based.

An easy way to tackle this problem is through the development of a Customer Composite Index (CCI). Your CCI is a detailed list of characteristics that very specifically and succinctly defines your customers. Ask yourself the following questions: who, what, where, when, how and why.

An example of some of these types of questions are; who are our customers, what do they do, where do they live, (in the case of consumer products)? Or, where are they located (in the case of businesses)? Does their location have any significance to the product or service I’m offering? Does how they live have any bearing? What business are they in – product, service, specialty, commodity? What’s their annual income or revenue? How many employees do they have?

Additionally, are there customer personality or lifestyle traits that are important to your business? And, who are their customers? This is especially important, because if you understand their customer’s needs, you truly know what makes them tick! What are their interests and hobbies? I am sure you can come up with many more relevant questions that will help you to define your CCI. The point is, if you know who your customers are, by virtue of your CCI, then you know what you are looking for in a new customer.

If you have trouble with this exercise, visit an existing customer (or five) and ask them these questions. This gives you the opportunity to kill two birds with one stone. 1) You will meet with them and get some face time, for a very legitimate reason. Which means you can continue to build your relationship. 2) In your questioning, you will inevitably communicate your concern through your interest in understanding your customer better. You never know, you may just uncover an unmet need or two that you can convert into a sale!