M & A Rainmaker

Well actually this lie about Web Marketing was not heard in Lichfield but received in an email from U.S. Marketing guru, Charlie Cook, whose blogsite and article with a title similar to mine is here . Hopefully Charlie will be o.k. with me borrowing from his email ( initially ) and blog post.

You really want to take the time to follow this link ( here it is again )

http://www.marketingforsuccess.com/blog/web-marketing/the-biggest-lie/

and read it before coming back to my blog post.

The gist of it is this: Business people realise that they have to invest considerable amounts of money, time, skill, knowledge and effort into” bricks and mortar sites ” like for example a new restaurant in a chain of restaurants or a new office location in an expanding company but they think that they can open up the Internet or online part of a company for nothing and in a short space of  time, with no skills or knowledge and little effort.

They then wonder why it has not worked.

Charlie says ” Isabela, a successful restaurant chain owner,  knows that when she opens a new restaurant, it’s a big investment. On average it takes, $494,888 to open a restaurant. Yes almost a half million dollars. Of course, within 18 months the typical restaurant is grossing $1,171,629 a year and making a profit of $91,103 – which isn’t bad at all.

How about Isabela’s online business? How much did she spend to get it up and running? Practically nothing – and no surprise it makes practically nothing. ”

I often say to people ” Treat your website like an online sales team ” . Now guess what – a successful physical sales team takes  all the things to build that I have mentioned earlier money ( and some ! ), time, skill, knowledge, experience and effort. Not to mention the fact that you need tools, processes and systems in place to monitor the performance and effectiveness of your salesforce. Those of you that have built a salesforce
( accountancy, law practice etc etc ) know that getting the right team is an extremely difficult and time consuming process.

Charlie reckoned that Isabela’s Internet business could be making $200,000.00 for her but was actually making virtually nothing. This is like a salesperson carrying a ( profit target ) of 2 restaurants worth. To generate $200K the investment would be huge.

I whizzed Charlie’s email off to one of the Director’s of a company that I work with and he came straight back with:

” I always say to the retailers I speak to that want to be e-tailers that the web store needs to be treated like any other store, and will require time and investment if it’s going to be a success on the same scale. “

So, maybe this will help ?? When you are thinking about starting an online business think about it like opening up a new restaurant, a new store a new branch or building a new salesforce and maybe you will get things into perspective !!