bwagy, the blog of Ben Young

Stacey Childs of discounderworld (a free monthly digital magazine profiling people from all over the world) interviewed me a while back on the changing consumer trends in relation to the media.

Visit discounderworld.com for a copy (it’s free!) or go to the discounderworld blog for a full transcript of the interview.  

I thought I’d pull out a couple of points:

The marketplace for media in general is evolving. What is different from ten years ago, what will be different in ten years?

Media has revolved around distribution. Whoever had the distribution had the market and whoever played the game right could get their content into the distribution. PR agencies are all about leveraging their networks to get your company into this locked distribution channel. The internet has unlocked these tight distribution channels. I have talked about it here:
/the-difference-between-traditional-and-new-media/ and here: /its-happened-to-music-now-for-books/ 

What will it be like in 10 years?

We are talking infinite channels for media. Blogs like PerezHilton are a prime example, not limited to text, photos or even video, they draw all media together. Something newspapers cannot do.

Ten years from now media will be distributed over infinite channels, the world is now a global village, we still consume ‘mainstream media’ but we invest more time in niche interests who deliver video, audio, text, experiences. Conversations are going to be the driving force of how media is distributed, if it’s worth talking about people will spread it. Traditionally all you had to do is overcome the hurdles (book publishers, pr agencies) to get the word out. Word of mouth will be the driving force of this.

We have seen this happen with music, slowly with books (but not yet) and increasingly with the news media. Twitter is a fantastic example of news spreading via conversations. It’s village gossip on a global scale. As Shakespeare would say ‘all the worlds a stage’.

What do you see as the reasons why some print magazines have failed and others have florished? In relation to differences in content, readership, marketing, adaptation to new technologies? (and anything else you think is important)

The number one reason print magazines have failed is the inability to derive significant revenues from their readership. In my opinion once distributions were locked the focus became how can we maximise profit? By changing the focus, journalists report on quantity not quality, advertising revenues are all about maximum dollars (not necessarily maximum value for advertisers). Once journalists start to change their mantra to compelling journalism to rewording press releases they lose their audience. which flows onto advertising and in turn the bottom line. See my blog posts above for more thoughts on this.

Do you think in the future, print magazines will exist? If no, why? If yes, what magazines do you think will be around? What will magazines have to do to still be in demand in say, 10 years?

Newspapers will exist in the future, but not in form we see now. People enjoy the tactile experience of sitting down, having a coffee, reading the paper. However the model needs to change in how newspapers deliver content. I forsee digital papers, where consumers purchase the right to use a newspaper reader, it looks just like a newspaper, feels like a newspaper, yet the content changes daily to reflect the latest news, it notices my interests and modifies the front page according to that. The Sky TV model is the current example I would compare it against. Newspapers will deliver photos, video, audio and combine these into enjoyable experiences for their users.

Those are just some snippets for the full interview click here.  

I have also uploaded my crib notes, which include above, the full interview and anything that may have been cut, rough but straight from the source.

Wind back to Sep 29th, 08, I wrote this post on Silence:

—

Silence

is scary huh?

People pause.  They don’t know what to do.

There is a void.

You instantly think you need to fill it.

What if you didn’t? What if you bought 30seconds of ad time during peak times and had nothing.  Absolutely nothing.

People would be in the kitchen during the ad break going “who turned the tv off?”, others would look up to see what was going on, they might even tune in.

Silence is polarising, we are so used to noise, we have no idea how to react.

—

In a world of continual noise, silence is deafening, oh no what to do? Hell we even equip ourselves with a cell phone at all times to avoid complete silence, time to ourselves.  The rare times are probably in the shower or exercise (although the ipod is typically providing some noise).

Take some time out, for some real silence, to relax, ponder the world.

You’ll find it much more compelling than you initially thought.

Shopping at a local supermarket on Sunday I received great service from a new checkout person.  It was at that moment I thought, why don’t they have a simple touch machine where after the transaction you can rate the service, 1 to 5 stars.  I would have loved to give her five stars.

Imagine that, a small touch screen device, where you can rate the service in a second.  The system then records the rating and at the end of the day the staff member gets their average rating.

Staff realise:

• They are instantly accountable
• Provides a benchmark to lift the bar
• Real time rankings by the hour (look at peaks and troughs during the day)

For the service provider:

• Instant feedback on staff
• Reward the best staff
• Compare satisfaction by time of day
• Get the real picture of what your customers think of your service
• Stimulate a cultural change in customer satisfaction, sending the right signals to staff and to customers

And for customers:

• Feel the respect for opinion
• Can reward outstanding service by giving five stars
• Feel valued
• Makes them consciously think about the level of customer service provided

Not sure on the cost but it would be worth a try! This one little thing could change the whole customer service experience.

(Extra for experts: You already realise people are doing this on twitter (see here) and will continue to do so.  Bit of a no brainer.  Embrace the change)

Honestly stop it.

Not me specifically but others in general.

Carve your own path, your unique path, your passion.

Watch this quick clip of Will Smith receiving his award at the Childrens Choice 2005.

Makes sense now that he is one of the most successful male actors of our time… in summary:

1) Any problem you have had someone has already experienced it & solved it before (potentially in a different context but same framework).
2) Running (or any exercise) forces you to push yourself and squash the quitting voice inside you.

Well they’re not laws in the classical sense.

Metcalfe Law
The number of users increases growth expotentially in a truly social system.

Moores Law
Technology doubles every 18 months.

Long tail
Half of your profits are hidden in the long tail.  How do you unleash them?

80/20 rule aka Pareto Principle
Take these rules.  Apply them to your unique problems, business model, whatever! Now see what opportunities these yield.

Parkinsons Law
Work expands so as to fill the time available for its completion.

Give them all a read (links are to wikipedia entries), compelling thoughts & implications.

Ok stay with me for a minute.

Marketing traditionally has meant to you, putting some advertising out, get your message in front of enough people, you convert a few to sales.  The return used to be enough to justify it.

However in a market where people are counting their pennies, you just aren’t getting the same return you used to.

Now organisations are going hey time to try something new.

Word of Mouth is on the tip of everyones tongue.

How do you stimulate word of mouth? Through action.  Actions that are worth talking about.  

Right so we have gone from advertising to action in all of 30 seconds.

Now how can you stimulate action? Through entrepreneurship.

Stimulate entrepreneurial traits in your employees, to try something new, perhaps it will make you a few more dollars but also send a message to the market.

Innovation, sales & marketing? Entrepreneurship is marketing. (And always has been).

Viral activities are a dime a dozen.  Everyone giving it a go.  And that is great because they longer they keep at it the better they will get.

Often you will see a somewhat lame initiative go viral, or at least succeed in your perspective, you think hey i had a better idea.

But guess what?

They have much more momentum.  When Nike or Skittles does something cool, it is more likely to spread due to their momentum.

If I announce a project it has a higher chance of spreading than a blogger just starting out even if it is the same initiative.

Viral success = Momentum + Remarkability

If you don’t have momentum you need to really push the remarkability side.  You need to be doubly, triply, quadruply remarkable.

So don’t be disheartened if you haven’t had success the first time, keep giving it a go and remember the formula.

Filters can come in the form of networks, relationships, applications, physical filters.

• TechCrunch is a filter of tech news, in amongst all the news, they filter the good stuff out.
• Our Twitter networks are our own filter, filter of timely and relevant conversations to us.
• Traditionally Newspapers & the evening news have been filters.
• Seth Godins Triiibes is a filter in itself, a private group of people with a common interest.
• Google Alerts setup for your niche, emails you when stories appear of interest.

How can you develop a filter for your passion? or your industry?

By providing a filter you create a barrier between the signal and the noise.  You will be rewarded for that.

Maybe even you are the filter? 

Have a think about it, create one if necessary, the best thing about it? You are helping others, of which you can build a business out of, or just build your own brand.

Why do people keep coming back for more on Twitter? Blogs? Podcasts?

It is like a drug, getting great content is like the mouse in the cocaine experiment, he can press a lever for a pellet of cocaine or sugar.  Inevitably he keeps pressing cocaine, as he likes the feeling.

I have absolutely no scientific proof but I suspect that is why once your in, your in.

You keep coming back to twitter for the great content & people you meet, the same with your favourite blogs they write in a fashion you understand, is relevant and what you demand.  Podcasts the same.

You keep chasing that experience….

Risk is fun

Rick is rewarding

Risk is challenging

Risk is different

Risk is worth it

Risk is visionary

Risk is risky

Risk is the best dam thing I learned to do growing up.

As a young boy McGregors Pies were famous (locally) for their mutton pies.

They were disgustingly unhealthy, you had to bite the side of it to drain out the fat, yuck.

But boy were they yummy.

Health aside, they still sold well, people would still stop in for a McGregors pie – even if it wasn’t the mutton pie.

You see that talking point was enough for them to stand out.

The world is full of interruptions, facebook, email, twitter, mobile, mail, tv.

They all rely on one thing that we give them.  Attention.

We can also take that away.

Attention is at the consumers disposal.  It always has been.  In the 21st century our attention is becoming increasingly scarce.

So you need to get permission.  Permission to send us a txt, permission to be in my twitter network, permission to send me an email.  

Guess what? I will only give you long term permission if you send me personalised and relevant experiences.

I have great news to share the NzHerald approached me a while back to republish the blog a few times a week.

Today the first post went live! The 12 Hour Startup.

I just want to tip my hat to you all for your readership, your ideas, your support.  It wouldn’t have gotten this far without it.

-Ben

I wanted to share with you an update I got on my loan I made via Kiva to a group of Bolivians, they were creating a small group to reloan the funds to other entrepreneurs.

I got this update November 20th last year:

“This is an update on your loan to MARANATHA 2 Group in Bolivia. I visited Lucy and her next-door neighbor Felipa, both members of the Maranatha group, one Friday afternoon in Montero, a small city of 100,000 in eastern Bolivia. Lucy was at the market when we arrived, so we sat under the shade of her mango tree to enjoy some homegrown
tamarinds with her husband while we waited. Lucy soon returned with bags full of produce to cook the night’s dinner.

Lucy sells meals from her home in the evenings, and she used her Kiva loan of 4,000 bolivianos (US $557) to buy a refrigerator and some ingredients to make her specialties: tripe and pig’s stomach. She also sells chicha and somó, a
popular drink made with boiled corn, sugar, cinnamon and clove. Her cooking must have quite a reputation, because her customers come from near and far just to get their hands on a plate. Sales are good, she tells me, and she’s planning to stick with the group for its next loan cycle (its fifth).

The smell of freshly baked bread wafts into Lucy’s yard. I follow my nose next door, where Felipa and her granddaughters are hard at work baking today’s batch of bread. Felipa, like Lucy, is a founding member of the Maranatha group and has participated in all four if its loan cycles. She started her business selling donuts and pan de arroz (bread made with rice flour and mashed yucca). Then she started making regular bread, and today she sells
several varieties of rolls, some sweet and some savory. I can’t resist trying one of her piping hot rolls, which is rich, white and fluffy with a sugary topping—very delicious.

Felipa used her Kiva loan of 1,800 bolivianos (US$257) to buy flour, lard, cheese and other ingredients to make bread. She works seven days a week and sells about 230 bolivianos’ (US$33) worth of bread each day, earning 60 bolivianos (US$8) in profits. She says she enjoys working with the group, since the women all know one another very well and everyone is responsible and punctual. She has taken out individual loans before, she tells me, but prefers the
group loan because it doesn’t involve so much paperwork. Like Lucy, Felipa plans to continue working with Maranatha in future loan cycles. Out of curiosity, I ask Felipa what Maranatha means, and she shrugs and laughs—neither she nor her loan officer, Julio Cesar, can remember who thought up the name or why. “

This made my week! 

I printed it off, emailed to my friends and reread over and over.

Not only had I been to Bolivia to La Paz (near Montero) but the average income is $1,100 usd/year (Source: World Bank, 2006) and…

Felipa is now making about 350 days * $8 = $2800 a year! In a country where 40% of the population ~ 3.7 million people live in extreme poverty providing entrepreneurs with micro loans enables them to excel.  

What really really gets me excited is the flow on affects, Felipa can employee, invest, increase consumption thus reinvesting in the local economy.  

In developing countries income can flow through the economy many times in a year (adding up to potentially $10,000/year to the GDP).  

Most importantly micro loans provide capability to those willing to give it a go who in turn inspire others around them.   

Given not all Kiva loans have updates, the ones that do are worth it, and best yet I got all my money back! (reinvested in other loans).  If your still here and haven’t loaned, why not? Hop over to Kiva.