Manage episode 38919076 series 30645
In today’s episode we talk about the tech fad of building apps, depending on ad revenue, and using celebrity endorsements to tweet about your company. Jack tells a classroom of Penn State Telecommunications Majors, who are working on a business idea, that not all problems can be solved with apps. Your success in business should not be dependent on software, or the next cool platform for users. Recognizing a trend versus a fad can determine a long-term success, or short-term failure. Find customers or other businesses in a similar market, and find out what their needs are. Try not to assume that a bundle of software will fix everyone's issues.
Many developers and new companies will turn to technology to begin profiting. In the age of advertising, many of these entrepreneurs will depend on ad revenue for all, or a majority of their income. This results in the advertisers becoming the customer, and the users feeling neglected. You are required to maintain a relationship with ad buyers, as well as continue to funnel views and clicks. Why not instead, create a product or service that helps the user, which you can also sell directly to them?
Pitfalls in business ideas:
• Relying on Ad Revenue to sustain profits.
• Depending on celebrity impact and flash popularity as a long-term marketing model.
• Believing that software can fix any problem for a person.
• Thinking that apps and digital services are a one-and-done business plan. Like many businesses, software takes constant maintenance.
Listen to the show at: http://marketingforfounders.com/celebrities/