Question

Topic: Strategy

Help Finding Partner For Marketing Services Comp.

Posted by Anonymous on 1/19/2010 at 9:49 AM ET 250 Points
I created a self-help marketing services website. It provides subscribers with tools to create surveys and launch email campaigns. Competitors include Constant Contact and SurveyMonkey among a few hundred others. I started by copying the best features of all known competitors, then added some distinct features that nobody else has. I also have a unique business model that will allow company to grow and be competitive with staff under 10 (Constant Contact employs about 500 people). Our competitors earn revenues from single to double digits in millions (Constant Contact made over $100MM last year). The website is 100% complete and needs promotion. I also have a number of fresh ideas for additional features.

I am a techie and I look for someone to take care of marketing/communications/product development, so I can concentrate on things that I do the best. The business is self-financed - I spent several years building it without being paid and putting down my money. I am willing to share equity or promise deferred salary, but I am tight on cash.
I can easily find interns who will work for free, but I can't afford an office where they can work. I have successfully used temporary help several times paying very good rates at elance.com. The problem is that I need someone to learn website functionality before that person becomes productive and it takes time. Also, everybody wants to get paid immediately and not interested in a future profits, even in millions. I can't get SBA loan because I would need to submit business plan, and I don't have any.

I would appreciate advice. Where do I get people? What else can I do to promote my business?
If anybody is interested in details you can contact me directly (email provided in my profile).
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RESPONSES

  • Posted by mgoodman on 1/19/2010 at 6:13 PM Moderator
    Michael, I'm really sorry to have to be the one to tell you this, but you did it backward. You invested your time and money in developing a product BEFORE you had a business plan or a marketing strategy. The result is that you don't have a good way to commercialize what you've done unless you can find someone with the right skills who is willing to invest at least as much as you've already invested without any assurance of a return. That's not going to be easy ... maybe not even possible.

    Marketing and business plans are not just for investors. They serve the entrepreneur as well. Had you developed a business plan first, you'd probably have anticipated the need for Marketing and folded it into the equation before you fully developed the product.

    So enough for the lecture. What to do now? My advice is to develop the business plan NOW. It will force you to determine how much more needs to be invested before this business can ever hope to make money for you (and for your partners/investors).

    The last thing you want to do is launch the product without good marketing support and lose whatever additional investment you have to make (as well as what you've already put into the project). And finding someone who will "love your kid as much as you do" isn't going to happen. And even if it did, they'd want (and deserve) the lion's share of the return, and you'd be left with the droppings.

    Sorry I can't be more encouraging, but it wouldn't have been honest feedback if I'd somehow painted this picture with a happy ending. I wish you well and hope you can retrofit a decent business plan and save all your hard work.
  • Posted on 1/19/2010 at 7:00 PM Author
    mgoodman,

    Thank you for your response.

    First of all, I didn't create a new service that needs to be tested to find if it is marketable - I copied an existing service, enhanced it, and charging for it less than 90% of my competitors because of virtually non-existing overhead.

    Second, I don't want someone to invest "at least as much as" I already invested. I put 4 years full time in this. The site is complete, functional, and publicly accessible. It has context-sensitive help, knowledge base, helpdesk, and all promotional marketing materials (banners, flash, landing pages, and email templates). I am just postponing the start of advertising campaign because I won't be able to handle the load alone. That person will invest a fraction of a time I spent - probably no more than several months to help my site to break even, and the amount of work that is necessary to be done will be obvious after a day of getting involved. After that, that person will be compensated appropriately.

    I didn't want to work on a business plan because I thought that my time could be spent more wisely. Also, business plan is not the end by itself, it is just the beginning and there is no guarantee that it will bring me money.

    Surely, I overestimated my resources, that's why I am here asking for help :)
  • Posted by mgoodman on 1/19/2010 at 7:27 PM Moderator
    Michael, I don't particularly want to get into a debate about what you've done or could have done. That said, your message has many examples of assumptions you've made that reflect the fact that Marketing has become a step-child in your business, and that's now a very real stumbling block for you.

    To be clear, I was not suggesting that you test anything before marketing. I don't question that you've developed a product that can be marketed. (I'm not necessarily agreeing that there's a latent demand for what you've developed. That's not the issue.)

    I think the real issue is the marketing strategy and plan, and how they fit into the [non-existent] business plan. I would submit that the value of that planning process is greater than the investment you've made to get to this point ... And if I'm wrong, it's certainly close.

    And I disagree that anything you did up to this point is more important than having a solid business plan. (Example: You're treating pricing as a way to recover costs and make a profit, not as an important and integral part of your Marketing Mix.)

    Please understand that I would like to see you (and even help you) succeed. I just don't think it's likely to happen if you don't have the resources to create good marketing and business plans. You're not likely to stumble into success on this one. You'll have to plan for it and then execute the plan.
  • Posted by Frank Hurtte on 1/20/2010 at 10:11 AM Accepted
    Michael,
    Have you thought of an affiliate plan. Why not offer your service for free to a few companies who will learn how to make it work, then get a commission for those they influence to become paying members.

    Early on, your competitors offered such deals with strong results.
    I have a few ideas along these lines if you would like to talk off line.
  • Posted on 1/20/2010 at 10:34 AM Author
    Frank,
    That's a great idea, but I do have a 2 tier affiliate program and I am willing to barter my services in exchange for anything (meaningful comments, pat on the back?).

    If you want to try my services, feel free to reach me. I may also use your generous offer and contact you offline later.

    My problem is that I need a source where I can find interested party with whom I can split responsibilities and share my business.
  • Posted by Corpcommer on 1/22/2010 at 12:59 PM Member
    The US Small Business Administration helps US citizens with business planning at no charge -- startups or businesses that have been around awhile.

    Check their website for your local office to schedule an appointment. www.sba.gov

    All the best,

    Corpcommer - MC
  • Posted on 1/23/2010 at 10:13 PM Author
    I am a bit disappointed with responses because I didn't get any direct answer to my question - where to get people.
    I will try to post messages on craigslist, LinkedIn, and a few websites dedicated to startups.
    I will award points to Frank Hurtte, who was the closest to answering my needs.

    Thank you everybody for trying to help me!

    Michael
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