Chapter 2
The Content Inc. Opportunity
Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it!
I had the pleasure of meeting Jon Loomer in San Diego at Social Media Marketing World 2013. As fate had it, we just happened to sit next to each other during the opening keynote. During one of those uncomfortable icebreakers, Jon and I began to talk about our kids and hobbies, but I was really interested in his backstory.
Jon has had his share of struggles. After dealing with his son’s battle with cancer (neuroblastoma) and being laid off from work two times in a two-and-a-half-year period, Jon was at a crossroads.
Then, in February 2012, Facebook rolled out its Timeline for Pages product. Jon was hooked immediately. He became interested in Facebook when he worked for NBA.com in 2007, and this recent Facebook move fanned that interest. So Jon went to his website, JonLoomer.com, and started to consistently create content about the Facebook product. Everything was educational, helpful, and remarkably detailed.
Almost immediately, Jon felt like something just clicked. That first year, Jon blogged on the subject of Facebook religiously (creating approximately 350 blog posts in that first year alone).
By 2015, Jon was getting over 400,000 page views per month and had 50,000 e-mail subscribers who asked to receive his information every week. If you ask anyone about who is the leading expert in advanced Facebook marketing, Jon’s name almost always comes up first.
And the best part … Jon has developed a remarkably substantial, growing business—all while still coaching his son every year in baseball.
What Jon has accomplished would have been impossible 20 years ago. Today, this model (called Content Inc.) is absolutely possible. But more than that, I believe Jon, and the others you’ll hear about in this book, has uncovered the least risky business-launch model on the market today.
Michael Stelzner, founder of Social Media Examiner, says it best:
It’s hard work. I’m not going to lie. Anyone who tells you that it’s really easy to build a content business is not telling you the truth. You have to accept the fact that this is going to be grueling, difficult, time consuming, and laborious work. But if you’re willing to roll up your sleeves and get dirty, and are willing to constantly analyze what you’re doing and scrap what doesn’t work and continue what does work, and keep at it, you can be very, very successful.
WHAT CHANGED?
Before 1990, there were only eight channels available where a company could communicate with a consumer: at an event, by fax, through direct mail, by telephone, on television, through the radio, on a billboard, or in a print magazine or newsletter (see Figure 2.1). In 2015, there are literally hundreds of channels where consumers access content.
Figure 2.1 Back in 1990, there were only eight channels to communicate with customers. Today there are hundreds.
Image source: Jeff Rohrs, Salesforce.com
Before 1990, large media companies had the most power because they controlled the information channels … they controlled the audience. Now 25 years later that power has almost completely shifted to the consumer. This means that today anyone, anywhere, can be a publisher and build an audience. This is a major development in the communications market that impacts every business, large and small.
In my previous book, Epic Content Marketing, I detail five reasons for this power shift:
1. No technology barriers. In the past, the publishing process was complex and expensive. Traditionally, media companies spent hundreds of thousands of dollars on complex content management and production systems. Today, anyone can publish for free online in five minutes (seconds?) or less. At the same time, almost 2 billion consumers have smartphones (eMarketer) and 75 percent of U.S. households have Internet access (U.S. Census). Simply put, anyone can publish, and anyone can receive content.
2. Talent availability. When I started in the publishing business 15 years ago, it was often a challenge to find writers and other content creators of particular expertise. Two things have changed since then. First, credible journalists, writers, and producers are very willing to work with nonmedia companies. In the past, many content creators would balk at the idea of working with nonmedia companies, because it was often considered “lower” work. That stigma has since gone. Second, between Google, dozens of content marketplaces, and direct access through social media, content creators are significantly easier to find. This means, any company of any size can get access to the best content creators on the planet (if the company wishes to do so).
3. Content acceptance. Take a look at the current state of consumer behavior:
61 percent of consumers say they feel better about a company that delivers custom content, and are more likely to buy from that company (Content Council).
People spend more than 50 percent of their time online looking at content (Nielsen).
70 percent of consumers prefer getting to know a company via articles rather than ads (Content+).
90 percent of consumers find custom content useful, and 78 percent believe that organizations providing custom content are interested in building good relationships with them (CMO Council).
The key here is that you don’t have to be the New York Times or the leading trade magazine in your industry to get people to engage with your content. Readers are open to receiving and engaging in any content that will help them live better lives, get better jobs, or solve a particular task. The point: You have as much opportunity to deliver amazingly helpful content as anyone else.
4. Social media. Social media won’t work without valuable, consistent, and compelling information creation and distribution. If any individual or company wants to be successful in social media, it needs to tell compelling stories first. Interesting and helpful stories spread, which means that much of the marketing of our content is assisted by other people. Social media is useless without having the content to fuel it.
5. Google. Every time Google updates its search algorithms, the most helpful and usable information rises to the top. While the system is not perfect, it’s extremely democratic. This means that even the smallest company that understands digital content creation and distribution can beat out a big media company with the right processes.
Today anyone, anywhere, can publish books, develop media sites, and create feature-length movies, with each one having the ability to reach an audience directly. For example, writer-director Sean Baker released his latest movie, Tangerine, at the 2015 Sundance Festival to glowing critical review. The big deal? He filmed the entire movie using an iPhone 5S.
Disruption is happening everywhere, but nowhere is this more apparent than around content creation and distribution.
Entrepreneurs and small businesses need to be rejoicing. Today’s availability of technology means that any business in any industry can develop an audience through consistent storytelling. No longer does the company with the biggest marketing budget win the most attention. Businesses are now rewarded on the substance of their message and on the audience they can attract through the consistent flow of information.
ENTER CONTENT INC.
In 2007, Lauren Luke began selling makeup products on eBay in an effort to subsidize her modest day job as a taxi dispatcher in Newcastle, England. In an effort to improve her eBay sales, Lauren began creating practical makeup application videos and distributed them on YouTube. Five years, and 135 million views, later, Lauren had built a bigger audience than Estée Lauder on YouTube.
How did Lauren do it? How did Jon Loomer make success happen? Did the stars align in each of these cases, or is there something about how they launched and positioned their businesses that we can learn from and replicate? Did they just happen to find a model that is not capital intensive in any way and in which the core asset is derived from selling knowledge?
Over two years and countless interviews, we’ve been able to deconstruct and then reengineer the Content Inc. model. As we noted in the Introduction, we’ve identified a series of steps each entrepreneur took, which together helped us create a new and viable business model for start-ups (see Figure 2.2):
Figure 2.2 The Content Inc. model.
The sweet spot. Mixing a knowledge area or skill with a passion area.
The content tilt. Looking at the traditional content niche defined as slightly off-center, to create a true differentiation area.
Building the base. Consistent publishing in one core channel.
Harvesting audience. Converting the publishing activity to the asset of subscribers.
Diversification. At the proper time, expanding the publishing process to additional channels.
Monetization. Monetizing the audience through the selection of products or services that will be the source of revenue and profit for the business.
Outside of a slight variation here and there with our model companies, these six steps define the Content Inc. model. In the next few chapters, we’ll open up the kimono on each one of these areas so that you too can launch and execute a Content Inc. model.
A THOUGHT ON WHY
Don Schultz, the father of integrated marketing and author of Integrated Marketing Communications, discusses the idea that any company, anywhere in the world, can copy everything about what you as a company do … except for one thing—how you communicate. The way we communicate with our prospects and customers is the one remaining way we can actually be different.
In their book, Experiences: The 7th Era of Marketing, Robert Rose and Carla Johnson build on Schultz’s commentary by adding that it is content, and the experiences that customers have with our content, that is the ultimate differentiator.
This is why entrepreneurs that follow a Content Inc. strategy have a strategic advantage over other companies. The entire business model is dedicated to developing content experiences and building an audience, and not to pitching products in any way.
NO PRODUCT? THAT’S GOOD!
Sometimes having product offerings hurts a Content Inc. model. Take the print magazine industry, for example. For years, print magazine publishers were so protective over keeping print advertising dollars that they were ignoring the audience’s need for digital. Print magazine providers that didn’t listen to this change are no longer with us.
When all your focus is on an audience you know deeply, instead of a product, good things usually happen. When we listen intently to our audience, we are automatically led to new product opportunities. The challenge is that sometimes we don’t know when the model will take shape—and why patience with the Content Inc. model is key. As Chris Brogan, founder of Owner magazine, states, audiences are eager for their lives to be changed in some way. Focusing on that gives Content Inc. the advantage.
Before you dive into the rest of the book, I want to give you a serious warning … there is quite a bit of risk involved with unleashing the Content Inc. model. Some things to consider:
Patience. The model takes time to work. Many of the case studies discussed in this book didn’t blossom for a year or two or more. The payoff is big, but it may take a while to get there.
Lack of funds. Content Inc. is not an immediate “get-rich-quick” scheme. You are building a valuable asset. While you are doing that, revenue may be hard to come by. Lower your expenses and get lean so you can make it to the finish line.
Against the grain. Content Inc. is a philosophy that most experts would vehemently disagree with. You are doing something that almost no one would ever think of doing.
Going small to go big. Many fail because they don’t pick a content niche that’s small enough. They are afraid the niche will be too small to monetize. I’ve never found that to be the case. Most failures occur because the entrepreneur goes too broad and not narrow enough.
Now that you’ve been warned, get ready for the business model that will change your life. If you stick with it and can battle against the negativity, success is yours to have.
CONTENT INC. INSIGHTS
Developing a successful Content Inc. model will take time, but it is not nearly as risky as developing a traditional business model.
Once you develop a relationship with a loyal audience, you can create products and services and ultimately sell whatever you want.
If done right, you’ll have an advantage by employing a Content Inc. model because you’ll understand your future customers’ needs (and informational pain points) better than almost anyone else.
Resources
Jon Loomer, interview by Clare McDermott, January 2015.
“2 Billion Consumers Worldwide to Get Smart(phones) by 2016,” eMarketer.com, accessed April 18, 2015, http://www.emarketer.com/Article/2-Billion-Consumers-Worldwide-Smartphones-by-2016/1011694.
“Census Bureau’s American Community Survey Provides New State and Local Income, Poverty, Health Insurance Statistics,” census.gov, accessed April 18, 2015, http://www.census.gov/newsroom/press-releases/2014/cb14-170.html.
“Sundance: Sean Baker on Filming ‘Tangerine’ and ‘Making the Most’ of an iPhone,” Variety.com, accessed April 18, 2015, http://variety.com/video/sundance-sean-baker-on-filming-tangerine-and-making-the-most-of-an-iphone/.
“AOL and Nielsen Content Sharing Study,” SlideShare.net, accessed April 18, 2015, http://www.slideshare.net/duckofdoom/aol-nielsen-content-sharing-study.
Don Schultz and Heidi Schultz, IMC—The Next Generation, McGraw-Hill Professional, 2003.
Robert Rose and Carla Johnson, Experiences: The 7th Era of Marketing, Content Marketing Institute, 2015.