Connecting With & Nurturing Your Best Customers with Lori Allen

Lori Allen, Director of Great Escape Publishing on Profit. Power. Pursuit. with Tara Gentile

photo by Armosa Studios

[smart_track_player url=”http://media.blubrry.com/creativelive/content.blubrry.com/creativelive/PPP-040-LORI_ALLEN_QPS-PROMO-ADDED.mp3″ title=”Lori Allen on Connecting With & Nurturing Customers” social=”true” social_twitter=”true” social_facebook=”true” social_pinterest=”true” ]

Tara:  Hey everyone, welcome to Profit. Power. Pursuit.  I’m Tara Gentile, your host, and together with CreativeLive, we explore the unique strategies that creative entrepreneurs use to take control of their lives, profit from their passions, and pursue what’s truly important to them.

Today, I’m talking with Lori Allen, the director of Great Escape Publishing, which publishes nearly 30 home study programs, including the Ultimate Travel Writers program for retirees who want to pursue making money from their travels.  She’s worked with over 3000 budding travel writers and photographers to help them meet that goal.  Lori and I talked about her intrapreneurial journey, including helping the direct response marketing company she works for take their snail mail efforts online.  We also discussed the different types of offers Great Escape creates and why they create them, her process for creating compelling ads and copy, and the surprising thing she’s learned helping retirees acquire a new set of skills.  Lori Allen, welcome to Profit. Power. Pursuit.  Thank you so much for joining me.

Lori:  Thank you for having me.

Tara:  Absolutely.  So I love your story, because it’s an intrapreneurial story, not a traditional entrepreneurial story.  Can you tell us how Great Escape Publishing came to be?

Lori:  Sure.  Yeah, it is a unique, it’s a unique business.  So I took a job out of college from an ad that I answered on Monster.com, and it was for a small publishing company down in south Florida, and they were looking for a marketer, and I had done some marketing in college.  Nothing real world, but you know, just the average college experience, and I knew that that’s what I wanted to be.  I knew that someone, one of my mentors when I was growing up, told me that if I wanted to make the most money, and at the time, money was very important to me.  It’s not as important now when I look back and reflect, but at the time, I thought I’m gonna be a millionaire, right, and that … their advice was if you want to make a lot of money, you need to put yourself in a position where you’re in charge of someone else’s money, you know, where you’re bringing in sales, because if you bring in money, they have to pay you more.  You know, expenses are meant to be kept down, most jobs are expenses, and if you’re in marketing, however, you’re not an expense, you’re a profit-maker, and if you make profit for others, they’ll pay you well. 

And so I knew I wanted to go into marketing, but I didn’t really know how or what, and I saw this ad on Monster.com, and it was for a company in south Florida, and south Florida has great weather all year round and a beautiful beach, and so I was like yeah, count me in, that will be the job for me.  But when I got there, they were a direct marketing, a direct mail company.  So at the time, they were mailing what we lovingly call junk mail, and I was like, ooh, you know, maybe that’s not really what I want to do for in my life is write and create junk mail.  However, I did meet one of the consultants for that company who is an amazing man and still my mentor today, and he’s very charismatic, he’s very well-known in our industry, and in the interview, I just knew that I wanted to work for that guy.  I wanted to ride his coattails for the rest of my life.  Like I just wanted to just, you know, follow him around with a notebook and a pen and a paper and just write down everything he knows, and I … I think we see the world similarly, so I was really just attracted to that. 

So anyway, I did take the job, and one of the first things that I got to do was to bring them online.  So back then, everything was in the mail.  We didn’t have eBooks.  We didn’t even have a website at that time.  You know, we were all using AOL and CompuServe email addresses, and so you know, it was my job to create a website and to figure out how … how we could get our, what was working in the mail to work online, and I think that put me in a really good position, because no one had ever done it before.  There were no classes, there were no books, there were no, you know, workshops or events that you could go to.  There weren’t even that many people to talk to even in our industry about it.  Everybody was starting.  Everybody was testing a million different things, and that just made it, well, it made it fun.  It also made it very hard, because no one knew the right way.  We were just throwing stuff at the wall to see what stuck.  And so after about a couple years, it was kind of like that commercial that you’ve seen on TV, you know, years and years ago where the company puts up an ad on the internet and they’re waiting around their computer for their first order and then they get it and they all high-five, and then the second order comes in and they’re like woohoo, and then the third and then the tenth and then the fiftieth and then the hundredth and then the two-hundredth, and they’re like oh my gosh, and you just see them, like, sink, and just like how are we going to handle 200 orders?  You know, like, this … it just kind of took off, and that’s kind of what happened to us.  You know, we … when we went forward with our first real ad, our first real web ad, I think we got more orders overnight than we had in the whole year to that date.

Tara:  Oh my word.

Lori:  Yeah.  So while exciting, it was also very stressful.  You know, I was in my early 20s, and didn’t know a thing about web marketing, didn’t know a thing about marketing, didn’t know a thing about, you know, running a business or how things were fulfilled or printed or, you know, because back then, all of our products were printed, and so we basically had to restructure the entire company for where this was headed, and we grew very, very fast, and because of that, I gained a lot of knowledge very, very fast.  So after about a year or two, you know, again, I didn’t think that I … I was in my 20s, I wanted to be a 20-year-old.  I didn’t want to be a business owner and a person who restructures organizations and deals with shipping and printing and, you know, all of those things.  I was just kind of forced into that role with the speed at which we grew, and so I wanted out, and they just … they couldn’t really let me go, because you know, I just knew too much, and they didn’t, we just weren’t capable of continuing the speed that we were going if I left.  Like I didn’t have things written down.  I didn’t … it was all in my head.  You know, we had relationships that we built things on, and all of those relationships belonged to me in a way.  So you know, they kept saying, “What do you want?” and I kept saying, “I want to be 20 and not running a business,” and that just, that answer didn’t fly with them, and finally, you know, like, “What do you want?”  And I was like, you know what, I want to do this, but I want to do it for my own thing and in my own way, and they were just so great.  They were … you know, I mean, and honestly, I had three years of proving myself, so it wasn’t like they just gave me the world.  No, I had, you know, I had all this experience, and they knew that I had done it for them, so they were happy to let me start my own division of their company, and so that’s how it kind of started.  I started for them, I got all this great experience, they mentored me, they coached me, they helped me, they gave me all the resources that I need, and then they let me start my own division.  So it’s kind of an entrepreneurship, but with the backing of … with the backing of all my best mentors and bosses and coaches, so it’s really lucky and I owe them a lot and I’m very grateful.

Tara:  Awesome.  So tell us a little bit more specifically about what Great Escape Publishing is.  What do you guys create?  Who do you market to?  What is the business that you now run within this bigger company?

Lori:  Sure.  So now, you know, the original idea was basically any kind of resource you would need to get paid to travel.  So that would be, you know, back then, these things were unheard of.  This idea of becoming a travel writer was unheard of.  No one … everybody had a staff writer.  There were no freelance travel writers, but there was a small niche market of publications who needed articles from freelancers.  They didn’t … they were too small to have a staff person, or they were too widespread.  International Living is a great example.  Back then, 15, 16 years ago, they were publishing articles about retiring and living overseas in Nicaragua, Honduras, Belize, Panama, Costa Rica, but Americans weren’t really going to those places 15 to 16 years ago, but there was a small pocket of retirees who were, and realized that on a very small retirement income, $600-$700 a month, they could live like a king in these places, and so they didn’t want their staff writers to go and live in these places.  You know, they’d have to have a ton of staff writers to do that.  So instead, they wanted to train regular retirees, just everyday people who were not writers how to write for them, and they weren’t the only one.  And there was this whole niche of small publications who needed travel writers, and they didn’t want to hire a staff writer.  They wanted their writers to be all over the world and to come in with stories and that were unique and that weren’t in the pages of National Geographic or Conde Nast or Travel and Leisure. 

So that’s kind of where we started, and with the travel writing program, How to Be a Travel Writer, and the people that found us, you know, in my mind, when I was in my 20s, I thought this is me.  I want to be a travel writer, and there are other 20-year-olds like me who want to be travel writers, and I’m going to find them.  It took me a few years to realize that the audience found me, I didn’t, you know, it isn’t the 20-somethings that … I mean, they do.  They want to be travel writers, but it’s this retiree group, these people who have lived long careers and now they’re looking to do something else in retirement.  Several of them are very well established in their careers.  You know, they were nurses or doctors or realtors or carpenters or architects, and you know, they did that for 30 to 40 years, and then they got into retirement, and they’re like, “This is it?  I’m just supposed to sit on a rocking chair and drink ice tea?”  You know, like that’s just not … not how they saw their life going, and they’re healthy, and they’re ready to see the world, but not on a bus tour.  You know, they don’t really want to be herded like cattle through the Eiffel Tower. They want to experience a place.  So our market, we have all these get paid to travel programs, and retirees are our biggest audience.  Again, that’s not how I saw it when I first started this division.  I thought I was going after people more like myself, but yeah, they found me, and then now, today, I’d say that’s 80-90% of our audience is 50 and older.  They’re either already retired or soon-to-be retired.  They’re healthy, they want to see the world, they want to see the world in a unique way, and that’s what we give them.  So on the surface, we’re a publishing company of all of these products, but underneath, we’re giving people a second life, and that comes with confidence and prestige and power and all the things that they had in their first life now in retirement.

Tara:  Yeah, absolutely.  That’s perfect.  And I want to talk all about … I want to talk more about how you niched down into seniors and how all sorts of different things from what you just said, and I’m having a hard time deciding which question I want to ask next, but I think it would probably be helpful for everyone who’s listening to actually get a rundown on the types of products and in-person experiences that you guys offer, because it’s not all information marketing.  You guys do some really unique things in terms of both online and offline live workshops, actual travel excursions.  Can you tell us a little bit more about that?

Lori:  Yeah, definitely.  So you know, we have the home study course.  There’s two … there’s two kinds of travelers, right?  There’s the armchair traveler.  There are people who like to read about going to all of these places, but maybe they know or maybe they don’t know that they’re actually never going to do it.  Some of them do know.  Some of them know they love to read, but that they’re never going to leave home.  And then others think they will one day, but they don’t.  And I think the same is true in publishing.  There’s, you know, the people who will buy a home study program and want to read things in a book and they want everything printed out, and they have this, you know, what they’re buying is the dream.  Right?  They’re not buying a travel writing course.  No.  They’re buying a dream to become a traveler and to go all over the world and have people roll out the red carpet for them and to see the world in a unique way and to have their stories published in glossy magazines that they can frame on their wall and share at cocktail parties, and you know, when their friend says, “Oh, what are you doing this weekend?”  “Well, I’m off to Paris, you know, and then it’s to Belize.”  So there’s those who want the printed course and who are buying the dream.

And then there’s this whole other side of the business where people want, you know, they just learn more hands on.  So they’re the ones who are going to come to a live event or join us online for a webinar.  Sometimes, we’ll hire experts to take them through their personal process, because you know, it’s just like anything else.  Like when you have a cook, one chef is going to prepare meals this way and another chef will prepare them this way.  And one artist is going to paint this way and another artist is going to paint this way.  Travel writing and photography are exactly the same thing.  No two people do it alike.  So we might hire an expert to walk them through their particular process.  You know, what it looks like to go from never having owned a camera to this is my full-time living, and some people are outdoorsy and some people like to shoot, you know, items that don’t move on a white background, so everybody’s different.  So we’ll have …  so we have things for the people who like to stay at home, and we have things for the people who like to get out.  We also have this small group of our audience who just use us as a travel club.  I don’t think they have any interest in taking better pictures or writing about anything, but they had that interest at one time, and then just liked to travel this way.  And so they’re just like, you know, I don’t feel like planning my vacations this year, I’m just going to go wherever you guys go, and that’s fine, too, you know.  I enjoy traveling with those people.  We don’t really, you know, we teach those things on the ground, but we don’t make, you know, make everybody do it.

Tara:  Right.

Lori:  That’s not, you know, it’s just supposed to be fun and it’s nice, because you go away on a vacation, but you also come home with a skill, and I think that … for the same price that you would pay for a normal vacation.  It kind of runs the gamut in terms of products.  It could go from anything from a live event to a recording of a live event to a home study program for the people who want to stay at home.

Tara:  Cool.  Can you give us sort of just the general breakdown between, you know, like the percentage of revenue that comes from more information products, either the recordings or like the programs that you do at home versus the in-person experiences and travel excursions?

Lori:  Sure.  I mean, I haven’t looked at those numbers like that specifically, but I think that it would be … Well, of course, the events are going to have a high gross, right?

Tara:  Mmhmm.

Lori:  Because we sometimes charge anywhere from, you know, $699 for a one-day event all the way up to, you know, this one coming up in Africa, some people are paying, you know, close to $7000 to come to Africa and, you know, for 12 days or 8 days, but the expenses on Africa and the expenses on the one-day event are so high, you know, you would typically not net, you know, we would love to net 20% from those events.  I don’t know that we always do, and sometimes, we don’t expect the event to break even at all.

Tara:  Wow.

Lori:  Because what will happen is we’ll bring a whole bunch of people there.  The lower we make the price, the more people we fill in the room, right?

Tara:  Mmhmm.

Lori:  So you know, we could run a $699 event and get 200 or 300 people if we wanted to, but then we wouldn’t make any money on that at all.  There would be no way that we could do it that cheaply, fill that many people, and feed them, and pay for rooms, and you know, speaking rooms and hire experts to come and talk.  Like we wouldn’t make any money on that, but we would hope that while they were there, they would sign up for Africa, or they would sign up, you know, to join one of our clubs or organizations or buy some products.  So it’s always a tricky thing with events.  Like they can have a high gross, but not a very high net, but maybe you don’t need them to.  Maybe you have backend stuff that you can get, you know, your money’s worth that way.  So it’s hard to say exactly which of our products are the most profitable.  You know, always, always, if you can sell an eproduct that’s like a course or audios or videos or something that you create one time and then you can reproduce it and sell it with different promotions and different ads and different experts, the more you can reproduce what you’ve already created, that’s where the money is, right?  The money is not in events.

Tara:  Yes.

Lori:  That is not a good business model.  But events are what make people like you.  You know, you have face-to-face interaction.  This is how you build an audience.  This is how you keep in touch with them.  This is how you prove that you’re real.  You know, some people … there’s a lot of scammy stuff online, and even, you know, with our marketing, we have to hit people pretty hard.  Like nobody wakes up in the morning, especially a retiree.  No retiree wakes up in the morning and says, “I want to be a travel writer today.  I’m just going to go online and Google how to be a travel writer.”  That doesn’t happen. 

So like what we have to do is we have to assume that they’re on Facebook or they’re looking for something else, and then we have to be like, “Hey you, you right there. Yeah, you, you know, 50 years and older, come to me.  Look at this.  I’ve got this course on travel writing.”  They’re like, “Yeah, right.”  And I’m like, “Oh, yeah, you know, you can just travel around the world and people will pay you to write about the things you see and do,” and they’re like, “Whatever, you must be kidding me.”  And then, you know, you have to like … and then, then they go and they look you up, and they’re like, oh, well, you know, this company, they’ve been to Africa, they’ve been to, you know, right now, they’re in Peru, and they’re in Vietnam, and look at all these other people that look just like me, and they’re out there having fun, and maybe I could do this after all. 

You know, so events give you that, they give you an extra level of credibility and I think that’s super important today, because you know, us marketers have the struggle of, like, you know, how do you be not scammy?  How do you be not in their face, you know, with bold promises, but at the same time, get them to react and act when they don’t, you know, they’re so bored, and they’ve seen so much, and you know, you really … you just have to … like when you’re writing, it’s a fine line between being in their face and actually reaching through the computer and grabbing them by the shirt and being like, “I’m telling you, this works.  You know, you’re going to love your life after this.”  And then you make them do something, and they’re so glad for it, but I do … but you have to be strong, and I know I’m kind of hitting on a bunch of different topics here, but I feel like the events for us give me that power.  They give me the power to say, “Look, you know, I’m serious about this, and this can literally change your life.  Look at all these thousands of people’s lives who we’ve changed.  Look at this.”  And they give me that power, but also, give me this, you know, to back up and say, “And I’m not kidding.  These are real people.  Look, you can find them on Facebook.”  Like look, here are pictures of all of us, like I’m not making this up, and I think events give me that.  It’s also where the majority of our success stories come from, because again, you know, coming back to the how people learn, there are some people who want things to be printed out, and they want, you know, to learn from a book, but so many people learn better on the ground.

You know, I have this little joke, I don’t think I’ve ever told you this, but maybe you’ve heard it before, but do you know the different between education and training?

Tara:  No.

Lori:  Okay, well, then which one would you rather your kids have?  Sex education or sex training?  And you know, like that is kind of the difference between a book and coming to an event, right?  Because a book is education.  When you come to an event, you actually get to try it, and you get feedback, and that’s what training is, and when you get that … that ability to try and then you get feedback, it just propels you to a whole ‘nother level.  But you can read a million books about how to play the guitar, but if you never pick up a guitar, you’re never going to learn how to play.  And you know, everything else is just like that, too.  I think people … some people do go through our home study programs and they go on to be travel writers, and that’s great, but most of them come from our live events.

Tara:  Oh, I love that point so much, because I say I run a training company, not an education company.

Lori:  Exactly.

Tara:  And for that very same reason, is because our … everything that we offer is built around getting hands on with what you’re doing and getting feedback on it, whether it’s feedback in the form of, you know, you go off and do an experiment, and you see what the real feedback is, or whether you get feedback from me or one of our other trainers, you know, that’s super important to me.  So I love that point.  I also really love the point that, you know, that the experiences that you offer, the live events that you offer are as much about credibility as they are about either marketing or even just making revenue to begin with.  Because I’m a huge fan of building products for marketing purposes, and getting people to pay for marketing, but I’ve never really thought about it as credibility building before, and I think absolutely, that’s huge.

Lori:  Yeah.

Tara:  That’s huge.

Lori:  No, it’s so big.  And then, you know, once people meet you face-to-face, then, you know, especially if you’re likeable, it might not work so much if you’re not so likeable, but you know, I think then you can talk to them differently.

Tara:  Yeah.

Lori:  It helps me, too, to write back.  You know, the courses and the home study programs are the bread and butter, right?  That’s where the biggest net comes from, that’s where, I mean, if we could just sell those all day, our job would be easy, but the events are fun, the events are where we actually get to meet people.  They change the way that we market future things.  You know, like, while we’re meeting people, we see that several of them all have the same problem.  They all are struggling with this one thing.   Well, then that gives us the next idea to build the next product or run the next event.  Or several of them are all interested in this, you know, one thing that I didn’t even know they were interested.  So you know, events give you that ability to just get to know your audience better.  You just have to be careful, because the audience that is at the event is not necessarily the same audience that you’re writing to at home.  You know, they’ve paid a lot more money, and they’ve taken a lot more action to get there.  So they are a tiny bit different than the people who haven’t taken action, and who haven’t paid money, and haven’t paid that kind of money at home.  So you do have to be a tiny bit careful.

Tara:  Yeah.

Lori:  But typically, they do give you a good eye into your audience.

Tara:  Yeah.  I want to ask you more about that in just a second, but I also want to make … I want to emphasize one other point that you made earlier, which is that in your market, as in so many markets for the people that are listening, people aren’t getting up one day and Googling how to be a travel writer, and you have to find kind of sideways paths into their attention to help them even see that this is a possibility and an opportunity.

Lori:  Exactly.

Tara:  And so for all of the, you know, all of the artists, the coaches, the wellness providers that are out there that are doing something innovative and different, you can’t rely on people coming to you for that thing.  You need to, you know, find the other things that they’re interested.

Lori:  Yes.

Tara:  That give you an in to talk about what you do.

Lori:  Definitely.  Definitely.  And I do see this, you know, again to piggyback on that, I do see in marketing copy a lot, some people will play the other side.  They’ll play the negative side.  You know, “I can see why you wouldn’t want a coach.”  You know, they’ll write that in their copy, but you might not want them because of this, this, this, and you know, when you do that, when you have to reach through someone’s computer and grab them and say, “Listen to me.”  You know, like, “I’m the best thing for you,” you don’t have to play that negative side.  They’re playing that for you already.

Tara:  Yeah.

Lori:  You don’t have to worry about that.  Like, but I do see that a lot in coaching and, you know, other things, too.  I do think that you have to keep in mind, you have to keep positive, and you have to keep in mind how much they’re really pulling back, and how much more you have to push if you want … because the truth is, like, nobody listening to this podcast is creating things that people don’t want, really?

Tara:  Right.

Lori:  You know, like, and if they did, like, eventually, they would find their way to what people do want.  Like, we all want to help people.  We all, if … if I showed up at one of my workshops and everybody told me that one of my programs was bad, I wouldn’t keep publishing it.  Like, you know, we all want to do the best thing, and we all want to help people, so you really have to believe in that.  Like you have to… and if it’s not, and you don’t believe in it, well, then you gotta stop.  You just shouldn’t be pushing that thing.  So anyway, I guess point is just, you know, keeping on the positive and really pulling hard.  You gotta hit ’em harder than you think you would.  These people are bored on the other side of your ads, and you gotta not only get them to wake up, you gotta get them to wake up, you gotta get them to listen to, and then you gotta get them to reach in their pocket and get out their wallet, and that takes … that’s a hard sell, you know?

Tara:  Absolutely.  So all right.  I’m gonna … I’m throwing out where I thought I was going with this.

Lori:  Okay.

Tara:  Because I want you to talk more about that, because I think this is going to be extremely helpful to people.  We know people, like you said, are bored on the other side of our ads or our social media updates, or whether, you know, no matter what it is.  I’d love that you said that to me the last time we talked, that you have to keep in mind that the reason people are scrolling through Facebook is not because they’re super engaged, it’s because they’re bored out of their minds.

Lori:  It’s they’re bored, mmhmm.

Tara:  So can you walk us through your thought process for creating an ad or a campaign to, you know, to get the attention of someone who is bored and disengaged, but potentially interested in what you have to offer?

Lori:  Right.  Okay.  So first things first, people are not bored on Facebook because they have nothing to do.  They are bored because they have too much to do, in most cases, so they are … they have so much to do, and they have so much going on in their personal life that they have to tune out all of that stuff.  They don’t want to be bothered by any of it.  They don’t know where to start.  So they go on Facebook.  So this is the person that you’re talking to, right?  Like he’s too much to do, a list a mile long, doesn’t know where to start, has, you know, they want to diet, they want to exercise, they want goal setting, they want someone to show them how to minimize their list, and they’re not doing any of those things, and instead, they’re on Facebook.  You know, first and foremost, whenever you are writing ads, you have to test.  Like I can tell you what works for us, and then you’ll go and try it and make it work for you, and it’s not gonna. 

You know, like we have … I have this wonderful marketer working for me now.  Her name is Lisa, and she comes to me with these questions:  Which one of these things do you like better?  And you know, we have this thing in my office, like, I have opinions, I have lots of them, if you ask me, I’m going to tell you my opinion, but if you don’t want it, don’t ask, because every time I … every time you ask, I’m going to give you something, and it might not be what you want to hear.  So she comes to me with all these ads: Which ones of these do you like best?  And I told her which one I liked, and there was one in particular that I strongly disliked, and I was like not that one, you know, these are the ones.  So what did she do? She went back and tested the ones I liked and the one I strongly disliked.  I love her.  You know, in her mind, she said later, like, I … I put this one in here because you had such a strong reaction to it.  I just thought, “What would happen?”  She’s like, “I knew you would be mad, but that ad won.”  And that was the one I didn’t want up there.  So you know, that just goes to show, like, you know, and I’ve been doing this for a long time.  This is my 16th year testing ads.  Like not on Facebook, of course, but you know, around and about for different products and different ways and different affiliates and stuff, and so I have a pretty good sense, usually, for what will work and what won’t, and you know, I’m wrong.  I’m wrong sometimes.  I’m wrong all the time, in fact.  So you just have to, you know, first and foremost, what works is what you test, and your audience says works.  That’s what works. 

But the big thing for me, and this is something that I’ve known all my career, but just was rebrought up.  In fact, I think it’s been brought up three or four times, and it didn’t resonate with me the way it’s resonated with me in these last two years is this idea of direct and indirect.  That if the audience does not know you, if they don’t know you and they don’t know your product, you have to be pretty indirect with your ads, and by that, I mean, you can tell a story.  You can quote facts and figures.  You can send them to an article first, instead of your promotion, but whatever it is, like you can’t, you know, you can’t run an ad that says 50% off of a travel-writing program.  They don’t know what travel writing is.  They don’t know who Great Escape Publishing is.  They don’t know me, they don’t know, you know, they’re not going to pay 50% off.  They’re not going to pay $10.  They don’t know … they don’t know any of those things.  So I think that’s the biggest mistake that I see a lot of people making.  I see people who have businesses like potentially life coaches or you know … you know, if you’re going to have a party planning business or a, you know, catering business, or anything like that, if people don’t know you and they don’t know your product, you know, 50% off deals or price deals, anything like that isn’t going to work, you need to be much more indirect.  And on the other side, if your audience does know you, then you need to be very direct.  If I ran an ad for 50% off a travel writing program to everybody on our newsletter file who’s been following me weekly or daily for years, they’re going to jump on that like white on rice, right?

Tara:  Mmhmm.

Lori:  Because I can be super direct, super short, super to the point.  I don’t need to tell them how great travel writing is, I don’t need to tell them how many places they can go in a single year, I don’t need to tell them stories about all of our members who have had success with this.  They already know that stuff.  They just want a cheap, good deal, and you can be very up front about that.  So indirect, you can use stories, you can use articles, you can use, what was the other thing I said?  Oh, facts and figures.  And if you were going to make a direct offer, you can put a big bold promise up at the top, you could put money, an offer, you know 50% off or whatever, or you could put a problem/solution is kind of like where you put the problem and then a solution.  You just have to be careful with that, because again, that kind of borderlines indirect, where they might know the problem, but they might not … they might not trust you to be the solution to that problem.  So anyway, yeah, first, if I was going to talk about, or I was going to guide someone into a Facebook ad, you know, the very first thing, first and foremost, you gotta test.  You gotta test a bunch of things.  Bright, bold colors.  Videos work, you know, little snippets of video works.  Just taking text and turning it into a video works.  You know, beautiful pictures work.  You know, we test a few things.  I can’t tell you that they did gangbusters, but calling people out based on what the emotions that we think that they have on Facebook.  You know, “Are you bored at work?  Wouldn’t you rather be in Paris or on this beach?”  You know, because we know that’s what they’re already thinking.  We tried that, and it did pretty well.  You know, those kinds of things work, but will they work for you?  You don’t know.  You don’t know until you test.  So you gotta test, you gotta test a ton of things.  Throw a bunch of stuff at the wall, see what sticks, but do keep in mind this direct and indirect thing.  You know, you can’t go out with a big, bold promise if nobody knows you and nobody knows your product, but you’re also leaving money on the table if you’re going after an audience who does know you, and then you’re hitting them very indirectly, you know, with a story lead or facts and figures and stuff that they already know, or stuff that, you know, they’re just too bored to read.  You could just hit them over the head with a money offer, and you know, they’d be in your hands.

Tara:  Yeah, that’s where I’ve realized that I’ve been going very, very wrong in recent years.

Lori:  Everybody, right?

Tara:  Yeah.

Lori:  I do it, too.  I look back, you know, like even just from six months ago, and I’ve been talking about direct and indirect for awhile now, and this is not a … this is not my secret.  You know, this is something that direct mail people have known for years and years, and it’s been in our industry for a really, really long time.  And like I said, it’s been brought up several times, but you hear different things every year, right?

Tara:  Mmhmm.

Lori:  And even, like I said, six months ago, I’m looking back at something that we ran, I’m like, oh, well, no wonder that didn’t work.  Look at this.  You know, like this could have been … this was for our VIP program that we have, we sent it only to our best buyers, and we didn’t come right out and tell them what we wanted them to do.  Like instead, we led them down this long story about how nice it would be to be traveling with them in all these great places.  We should have just come out and said, “Look, this week, you get $1000 off.  Done.”  And it would have worked.  You know, that’s what worked in the past.  So, you know, this direct/indirect thing is something that you have to practice.  It’s something you have to keep in mind all the time with everything that you do.  It’s not something that … that you’re just going to get, and then it’ll be with you forever.  No, it takes practice.

Tara:  Absolutely.  Yes.  I practice it every single day.  How many concepts do you guys come up with when you’re preparing a new ad or a new sales page?  Is there sort of like an average number that you shoot for?

Lori:  Hmm.  No.  I mean, different things, I think Facebook probably only lets you test three at a time, right?  I think.  It’s been awhile, because we have one that’s up there now that’s doing so well, we can’t really test anything else, because they won’t let you test two things to the same audience.  So we would either have to take down the one that’s working really well in order to test something else, and we’re not doing that.

Tara:  Yeah.

Lori:  So we’re just letting it ride.  So you know, it’s been awhile since I’ve had my hands in the Facebook stuff, and you know, Google’s just changing the way that they are doing their AdWords now, so we’re … our Google stuff is not doing … wasn’t doing well, and now, we just have to rethink all that given their … the changes that they’re making.  So yeah, it just depends.  When we have … when we run ads to affiliates, like if we were to buy space in budget travel or something like that, you know, you would buy one and it would run in a month, and then, you know, you need to wait for those results before you bought another one.  We’re testing now, and you can test two things, like one against something else, but the audience isn’t big enough.  So that’s the other thing I think that marketers don’t realize is that testing requires lots of orders, right?  Like if one ad brings in 16 orders and one ad brings in 14 orders, the 16 order ad did not win.  Two people do not make that a statistically valid sample.  That just means that, you know, test B went into the trash can more than test A.  You know?

Tara:  Mmhmm.

Lori:  Like it doesn’t mean anything.  Two people’s not a big enough sample size.  So a lot of times, and especially in these smaller niche markets where you’re looking at small magazines and online websites, you just don’t have an audience big enough to test more than two things, one thing against another.  So that makes it hard.  That makes it hard.  So we don’t usually have, like we have different, when I say we have a lot of irons in the fire, I’m talking about we have some things over on Facebook, some things working to our affiliate ads, some things working up over on Google, maybe we have some things in the mail, maybe we’ve, you know, split our list and we are offering a VIP membership to our multi-buyers, those are people who buy more than one program, while we’re advertising our main course, our travel-writing course or our photography course, to the people who have been on our file for awhile but have never actually bought anything from us.  So you know, we may have like all of those things going on at once, all while one or two members of my staff are on location, you know, in Vietnam with a photography group, or in Palm Springs with 100 photographers, and then they’re trying to sell, you know, whatever backend things we have going on there.  So we have lots of things going on, but probably, individually, at each one, we’re only trying one thing.  Does that make sense?

Tara:  Yeah, yeah.   No, that makes complete sense.  Yeah, thank you.

So you’ve mentioned your team a couple of times, and that’s one of the things that I always like to ask about.  So can you give us sort of just a rundown on who makes up Great Escape Publishing at this point?

Lori:  Sure.  So we have nine.  I think there’s nine of us.  We have Cayson, who lives in South Florida.  She is actually in the office of my parent company, and we do that so they that they can keep a finger on our pulse and we can keep a finger on their pulse and we share information.  So she’s in south Florida and she answers our phones and our tickets or all of the emails that come in.  She monitors our Facebook pages, she helps our attendees get registered for events, and you know, if they have questions about what to pack or can they extend their stay, and she’ll work directly with our experts to get them that information.  And then I am here in Virginia right outside of DC and in Alexandria, and I work from home, and there are three other girls, CC, Alyssa, and Christina, who live in DC, and they commute here to my house twice a week.  So we work together twice a week, which is where we get all of our creative stuff done, and our brainstorming, and we work through problems, and you know, do all of that.  We also, because we work from home the rest of the time, we also chitchat a lot.  We get the majority of our work done when we’re working from home.  We get the majority of our chitchatting and talking done when we’re all working together.  Jackie used to work here.  She moved to Richmond, so she’s not too far away, and she takes the train in every once in awhile to join us, but she works from home in Richmond.  Marade is in Ireland, so everything that we do with her is telecommuting, and she does our marketing.  So all the promotions that we mail, she’s working with our writers to get them up and make any changes that need to be made, and she also schedules some ads with some of our bigger affiliates, and then Lisa is in Hagerstown, Maryland, and she does all of our Facebook and Google marketing, and Bonnie’s in Portland, Oregon, and she does a lot of our photography stuff.  So Bonnie is also a professional photographer, she edits some of our programs, she creates some of our programs, she runs this one of our business, the Breakfast.Club, and so yeah, she just, any kind of time that we want to advertise a photography program or create a new one, Bonnie is the one that we go to for all of that.

Tara:  Awesome.  Thank you for that.  So as we start to wrap up here, there’s one thing that we haven’t talked about that I really wanted to make sure that we got to, which is, you know, you mentioned that you are primarily marketing to seniors, retirees who are either interested in making a second career or at least pursuing this interest in travel writing and travel photography at a substantial level, and you and I have talked before about just how interesting it is to see these people grow and change from whatever their career was before, whatever their role in life was before, into this new role and this new identity.  Can you talk a little bit about what you’ve learned watching that transformation happen?

Lori:  Hmm.  Well, I’ve learned that incredibly confident people become incredibly not confident when they switch, when they come out of what … You know, I think … and this is true for everybody, right?  Like nobody likes to be a beginner.  It’ll be interesting to see what happens to our generation when we become retirees, because we have our hands in so many different things, and we’re trying so many different things, but their generation, you know, picked a career and then stuck with it for a really long time, and so I think they just have a hard time putting themselves out there.  They have a hard time letting them be beginners, letting themselves be beginners.  They don’t want to be bad at anything, which I guess is true across all generations, but I see that as something that they’re struggle with.  You know, I tell them often that I read somewhere that it takes 7 hours to make a Toyota and 7 days to make a Rolls Royce.  And you know, I think they want to jump ahead to the Rolls Royce.  They see our experts.  They see these amazing photographs. They see these travel writers who are going all over the place, and they just want to jump ahead to that, but they need to let themselves be a Toyota first.  You know, like, they need to … it’s not … if you get … you know, it’s the journey, right?  I mean, this is what everybody is all about. 

I saw this interview with a tightrope walker once, you know, these are … or it’s called like tightlining, I think, and you start by tying a rope by two trees and you walk across it like a tightrope, but then once you get really good at this, people are tying ropes across huge rock formations, like pieces of the Grand Canyon, and they’re walking across a tight rope, across, you know, the Grand Canyon.  And she said one of the biggest mistakes that you can make as a tightliner is focusing on the end, because the whole point of tightlining is the journey from the start to the end.  Once you’ve gotten to the end, it’s over.  And I love that, because it’s the same thing with everything.  It’s the same thing with marketing, it’s the same thing with travel writing, it’s the same things with photography.  Once you get to the end, it’s over.  You know, enjoy this time where you’re just figuring things out and you’re learning, because you can never go back to this.  Like this is your beginning.  And what better, I mean, we’re very lucky.  In travel writing and photography, that journey is pretty fun.  We’re not like learning how to clean teeth.

Tara:  Right.

Lori:  Or, you know, brush toilets.  Like we’re traveling and we’re taking pictures and yeah, so I’d say that’s part of their big struggle is just letting themselves be a beginner and letting themselves go down a different journey and also, pushing aside those people in their life who don’t want them to make any changes or don’t want them to try anything new.  So you have a little bit of that.

Tara:  Yeah, I love that, and I see that with my clients as well, is that they’re just, they want to skip ahead to the end, and of course, even with entrepreneurship, there is … there is no end.  You can’t …

Lori:  There is no end.

Tara:  You can’t skip ahead.  The whole … the journey is the thing.

Lori:  Yup.

Tara:  And if you expect to be perfect at it from the beginning, if you expect to just get it, you’re going to be very, very, very disappointed.

Lori:  Exactly.

Tara:  Yeah, okay, last question, and this is one that I ask the vast majority of our guests.  You are both an executive and a marketer and an intrapreneur, really, an entrepreneur, and you have this amazing creative side to you as well where you love writing and you love taking photographs and you love exploration.  How do you balance the roles of creative and executive in your business?

Lori:  Yeah, that’s hard, right?  Well, it’s lucky for me, because my products are creative.

Tara:  Mmhmm.

Lori Allen, Director of Great Escape Publishing, on Profit. Power. Pursuit. with Tara GentileLori:  So anytime that I’m at a workshop, or you know, whatever, I … it doesn’t look unusual for me to whip out a camera.  That’s what everyone else is doing, so you know, I get that there.  I also have very young kids, so you know, I get to play in the mud and paint and you know, do all that kind of stuff with them.  It is hard, but I do think if you love what you do, like you kind of put your own spin on it anyway.  I’d say I probably have it easier than most, just because my products are creative, but yeah, I think it’s always … it’s always hard.  Like, right?  You know, that’s another big lesson, too, is just that what people think is your job and what is really your job are often two different things. 

You know, I think people look at me and they see me riding elephants and photographing lantern festivals and riding in Jeeps in Africa and they think that’s my job.  Well, that’s not really my job.  My job is first and foremost a marketer.  Like, I am writing ads all day long.  Like I … my hands are going to fall off, I write so much.  And I read so much and I edit so much and I’m constantly trying to improve and see what other people are doing, and you know, I read a ton of books, and … but also, my job is raises and reviews for employees, and it’s, you know, figuring out insurance and tax questions and, you know, can we take Australian dollars on this ad from this affiliate.  You know, like it’s a lot of technical things that I don’t like, and it is a balance to do more of what I like and not what I don’t like, but I think I’ve just gotten better at hiring people to deal with the things that I don’t like.

Tara:  Yeah.

Lori:  And that’s a lesson you learn … you learn, too.  But you do have to understand in this business, like, whether you’re an artist, whether you’re a photographer, whether you’re a coach, you know, you think that’s your job.  You think your job is to coach people.  You think your job is to take pictures.  You think your job is to paint.  But it’s really not.  It’s to sell your painting.  It’s to sell your photographs.  It’s to sell your coaching.  So you need to just buck up and put on your marketing hat and learn how to do that, because that … that’s the difference between those who make it and those who don’t is the marketing.

Tara:  Amen.  I totally agree.  Lori Allen, thank you so much for joining me today.

Lori:  You’re welcome.  Thank you so much for having me.

Tara:  You can learn more about Lori and everything Great Escape Publishing has to offer budding travel writers and photographers by going to GreatEscapePublishing.com.

Next week, I’ll sit down with Jennifer Lee, founder and author of The Right Brain Business Plan, to talk about her current plan and how it’s helping her to evolve her business, why she decided to retire her successful Right Brainers in Business Video Summit, and how she manages her time as a creative business owner.

Are you surrounded by the right people to help your business succeed?  Your support network has a huge impact on your success, your satisfaction, and your ability to achieve your goals.  At the Quiet Power Strategy Lab, we get you and your business, we respect your individuality, and we challenge you.  The Lab is our entrepreneurial resource library and support community.  It’s full of smart, experienced, and savvy business owners who want to help you succeed.  Start your free 10-day, all access trial by going to Lab.QuietPowerStrategy.com/People.

That’s it for this week’s episode of Profit. Power. Pursuit.  You can download other episodes of this podcast and subscribe in the iTunes store.  If you enjoy what you heard, we appreciate your reviews and recommendations, because they help us reach as many emerging entrepreneurs as possible.  Our theme song was written by Daniel Peterson, who also edited this episode.  Our audio engineer was Jaime Blake.  This episode was produced by Elizabeth Madariaga.  You can catch up on older episodes in the iTunes store, where new episodes are added every week, and you can learn more by going to CreativeLive.com.

Membership Sites and Team-Building with Michelle Fifis of Pattern Observer

Michelle Fifis of Pattern Observer on Profit. Power. Pursuit. with Tara Gentile

[smart_track_player url=”http://media.blubrry.com/creativelive/content.blubrry.com/creativelive/PPP-024-MICHELLEFIFIS-2016.mp3″ title=”Michelle Fifis on Membership Sites & Team-Building” social=”true” social_twitter=”true” social_facebook=”true” social_pinterest=”true” ]

Tara:  Hey everyone.  Welcome to Profit. Power. Pursuit.  I’m Tara Gentile, your host, and together with CreativeLive, we explore the unique strategies that creative entrepreneurs use to take control of their lives, profit from their passions, and pursue what’s truly important to them.

My guest today is Michelle Fifis, the creator of Pattern Observer, and the founder of the Textile Design Lab.  Michelle has worked with Columbia Sportswear, Lucy Activewear, Janson Swimwear, and others to develop custom textile design collections.  She’s worked with hundreds of designers to launch and grow their businesses through her courses and membership community.  Her work has been featured on StyleSite.com, Elle Decor, Nordstrom’s blog, and Print and Pattern.

Michelle and I talked about how she’s grown her team over the last two years to allow her to grow her family, how she turned her blog into a full-fledged company, and how she’s been most successful growing her audience and email list.

Michelle Fifis, welcome to Profit. Power. Pursuit.  Thanks so much for joining me.

Michelle:  Thank you for having me.  I’m excited to be here.

Tara:  I am excited to have you here as well.  I’m really, really excited to let people see kind of inside your business and just how you’ve made it grow over the last few years.  So let’s start before, really, you even had this business that you have now.  How did you get started with pattern design?

Michelle:  So I actually came to pattern and textile design through fashion design.  I was a fashion design major at Stevens College, and I did my summer internship with a fashion designer named Zondra Rhodes, and she hand-paints all of her fabrics that get sewn into garments, and so I walked in on my first day as a fashion designer with that perspective of a fashion designer, and before me, I saw a large studio filled with artists hand-painting her textile designs onto fabric that would be sewed into garments, and my mind was blown.  I’ll never forget that vision of seeing people actually painting these designs onto fabric.  It wasn’t something that I really knew existed.  I didn’t know that was an avenue that I could take my career in, but I just fell in love at that moment with the world of pattern and textile design.

Tara:  Wow.  That’s a phenomenal story, and I think we all have a better perspective now of why couture garments cost so much as well.

Michelle:  Right.  It was just funny.

Tara:  Yeah, so how do … why and how did you start the Pattern Observer blog then?

Michelle:  So I started Pattern Observer in 2010, after I left my full-time, in-house, textile design job with Columbia Sportswear, and as with any freelancer, I had downtime in between my client projects, and my husband actually said, “Hey, you should start a blog.”

And I was like, “Eh, I don’t really like to write,” so, well, it didn’t appeal to me at the time, but once I started blogging, I realized how much of an impact I could have with visuals, and so Pattern Observer really became more of visual eye candy type of blog, rather than a lot of content.  And so it started out in that way, and it was also a great way for myself and to prove to my clients that I was staying on top of the latest trends.  So when you work as an in-house designer, you have access to all these very expensive trend resources that as a freelance designer just starting out, I couldn’t afford.  And so I had to prove to my clients that even though I didn’t have access to those resources, I was basically creating those resources on my own.

Tara:  Oh, so the blog really was a tool to support your freelance business, and not something that you were starting as a business in and of itself, per se, right at the beginning.

Michelle:  Definitely not.  I had no idea that you could make money from a blog or turn a blog into a business.  It was really just something fun to do, and I had a client actually ask me how can you, he said, you know, “How can I trust that you know what you’re talking about when it comes to trends?”  He said, “I know you can design, because I’ve seen your designs, but how do I know that you’re staying on top of the latest trends?”  And I was so taken aback by that question, and so challenged by that question, I guess, in a good way, that I thought, huh, well, I’m just going to prove to you and to the rest of my clients who maybe have thought that but didn’t ask that, that you know, I know what I’m talking about when I direct you in terms of what trends you should be including in your product designs.

Tara:  Mm.  That is such a fantastic sales lesson, because you know, we talk about overcoming objections when we’re talking about selling, and so often, we just think of that in terms of like frequently asked questions, or you know, how can I tell you that this objection doesn’t really mean anything, or that you know, that it doesn’t apply here, but I love the way you approached actually showing people that their objection was unfounded or that you could easily overcome it.  That’s so helpful, I think, for people.

So what did you do to grow your blog at the beginning?  Or did you do anything to grow your blog at the beginning?

Michelle:  I think, so once I realized, hey, I really like this, and I want people besides my mom and my best friends reading the blog, I purchased advertising on other blogs.  That was my big first step into hey, I want to be noticed.  I want someone to come read my blog.  And it was gaining traction, it just wasn’t happening as quickly as I wanted it to grow.  So that was my first step into actively trying to grow my blog.

Tara:  Mm.  So advertising on other blogs, that’s how we know it was back in the day, right?  So what year are we talking about here?

Michelle:  That was 2010.

Tara:  Ah, yes.  I believe I purchased some ads on blogs in 2010 as well, for a different thing.  Yeah, no, that’s definitely not something that we talk about doing much anymore, but you know, it was certainly effective at the time.  So what kind of metrics were you paying attention to then?  Were you look …  Were you building an email list?  Were you look at like Feedburner stats?  What were you paying attention to?

Michelle:  I think I had Google Analytics installed.  I’m really not sure about that.  At that time, I was really focused on comments.

Tara:  Mm.

Michelle:  And Facebook followers.

Tara:  Okay.

Michelle:  Those were my two big concerns.

Tara:  Awesome.  And how has that kind of evolved over the years?  What are you really paying attention to metrics wise now?

Michelle:  Definitely newsletter subscribers is my number one concern and goal, I guess, for how we are connecting with our community, and I think that’s kind of how my perspective has changed as well.  It’s less of how many eyeballs am I getting on everything that I’m producing and all the pieces of content that we’re putting out, and now I focus more on how much are we connecting with people.

Tara:  Mm, okay.  I want to come back to that, but I don’t want to, I also don’t want to jump the gun.

Michelle:  Okay.

Tara:  So let’s back up a little bit and talk about how your business has really evolved since you first started the blog.  So you said that at the beginning, the blog was more of a tool for supporting your freelance business, but now, your blog and the business that’s grown out of it sort of its own thing, right?  So how, kind of walk me through that process of evolution.

Michelle:  Right.  So after … I had been blogging for maybe six months to a year.  I can’t remember exactly around what time this started happening.  I started getting lots of emails from other designers asking for advice.  And it got to the point where I was having to answer, or I was answering so many emails that I didn’t have time to do my freelance work, and I didn’t want to be rude and not respond, but it was just getting to be this struggle, and so I kind of naturally progressed into hey, why don’t we, or why don’t I take these issues that people are having or the questions that they have about this industry and turn them into a course.  And so that was the first thought of teaching.  I had never thought of myself as a teacher before, and so that’s how we kind of grew into the teaching platform that we really are today.

Tara:  Mm.  Do you remember where you first heard about online courses?  Because I think, you know, it’s been around for a long time in sort of the marketing and online business world, but I know definitely in the creative business world, it took a little bit longer to catch on.

Michelle:  So when I first started teaching, I started teaching through another website called Pikaland, and it’s an amazing blog focused on illustration, and so she put a call out for, “Hey, would you like to teach a course, or do you know a teacher who would be perfect for one of our courses?”  And I volunteered myself, and she was thrilled to have a pattern and textile designer be represented in her selection of teachers, and so that’s how I, why I developed my first course, was for her site, basically.

Tara:  Got ya.  Fantastic.  I did not realize that that’s where you started teaching.  That’s great.  So all right.  Let’s come back to newsletter subscribers right now.  What are you doing right now to grow your email database?

Michelle:  So right now, I’m actually very excited about advertising.  So focusing more on Facebook advertising to grow our list is something that I have been, I know I’m late to the game on that, and this is not groundbreaking, but for me, it was a little scary to invest money in Facebook.  I’m not sure why I had a block against it, but it’s something I worked through, and now I’m really excited with the results that we’re getting.  But up until this point, I think we’ve had a lot of success with resources that we can supply to people who are interested in patterns and textile design, and really just design in general.  So offering free courses is probably the number one way that we’ve grown our newsletter subscriber list.

Tara:  Okay, great.  and how are people finding out about those things?  Is it social media?  Is it through joint ventures?  Is it just kind of organically?  How’s that happening?

Michelle:  In the past, I think it’s just been through Social Media.  We used Pinterest and Instagram and Facebook and Twitter, all the big platforms, and so I just really rely on people taking our courses, and then sharing the courses with their community.  People get really excited to, you know, share the free courses with their friends and the other designers who they know, and so I think that’s how we’ve grown as quickly as we have.

Tara:  Mm.  It seems like people are really excited about pattern design, and I know when I first kind of got into the creative industries field, I also had no idea that pattern design was a thing.  I don’t know how I thought those designs got on the journals and the fabric and you know, the this and the that, but I had no idea it was a thing.  Why do you think that pattern design is kind of so sticky right now?

Michelle:  Because patterns are so much fun to design.

Tara:  Okay.

Michelle:  I mean, they are so much fun, and I think people coming from maybe a more structured design field such as graphic design, when they are given the freedom to design in patterns, I mean, you just develop so much movement and you have so much fun with the motifs that you’re designing.  It’s just very freeing for people, and I see that in our membership test site, too.  We have a lot of graphic designers come to our site, and I can tell after just a couple exercises, they start to open up and they start to play, and they start to have so much fun, and I think that’s what appeals to so many designers.  I also think that patterns are used in so many different markets that people are able to create patterns in their unique style and find a home for them.  So for example, if you have a really feminine design style, there are lots of opportunities to design feminine patterns.  On the other hand, let’s say you have a more graphic, rigid design style, there’s also plenty of opportunities in that way, so I think people are able to really take how they create designs innately, and then find a home for them.

Tara:  Mm.  Okay, so yeah, that is fascinating.  So you mentioned your membership site.  Can you tell us kind of what all the different pieces of your business are right now?  How are you generating revenue in different ways?

Michelle:  Yes, we have our blog, Pattern Observer, which on its own doesn’t generate any revenue.  We don’t sell ads or do sponsored posts or anything like that, but we do hold workshops on the Pattern Observer site, and then we also have our membership site, the Textile Design Lab, and then we … I’ve kept up with my design business throughout the growth of Pattern Observer and the teaching business, and just this year, we’re relaunching our design business and turning it into more of a teaching studio.

Tara:  Mm, ooh, tell me more about that.

Michelle:  So there are various ways to make money in our industry.  You can freelance with clients.  So clients will come to you and say, “Hey, I would love a pattern that has a feminine flare to it with daisies in it,” or something like that.  And so then you work with the client to develop that custom pattern.  The other side of the industry is developing prints and patterns on your own that you come up with, you develop, and then you sell or license the rights to that work, and this is something that I started doing when I first started freelancing, and when the teaching business picked up, I just didn’t have time to balance everything, and I stepped away from that just creating and selling work aspect of the business, and so this year, we really decided to relaunch the studio in a way where we have, we’re offering patterns to buyers in a membership-style aspect.  So pattern buyers can join our site and get resources that they need to make better pattern-buying decisions for their products, and also purchase patterns as well.  And the teaching aspect of the studio is we are helping so many amazing designers in our textile design lab that I would love to start bringing those designers into our studio, and giving them a real hands-on feel for what it means to work with the studio, work with a client, and hopefully, they’ll stick around after they get comfortable and work within our studio, but they’re also welcome to go off and start their own businesses as well.

Tara:  Mm.  So I know you’re just relaunching the studio now, so you don’t have firm numbers on this, but what do you see the breakdown being revenue-wise, you know, by percentages between the membership site, the one off workshops that you do, and the teaching studio?

Michelle:  So I feel like this year, we’ll probably do about 50% from the Textile Design Lab, our membership site, 25% from the studio, and I’m really interested to see how the studio performs.  I don’t know of another design studio membership site concept, so it might be a bust, but I’m excited to try it and see how it works out, and then the remaining percentage from our workshops and our eBooks that we sell.

Tara:  Got you.  So 50% from your membership site is, I mean, that’s a chunk of change when you’re talking about total revenue.  So, and I know a lot of people have, I mean, I know a lot of people are interested in starting membership sites, a lot of people have a lot of bad luck with membership sites.  Can you talk about what some of the ups and downs have been as you grow that aspect of your business?

Michelle:  Yes.  It has been, it was difficult to get off the ground, and we did it very slowly, which is something that I’m very happy that we did.  It was not the robust membership site that we have now when we first started.  So at first, it was really just a way for people who were taking our workshops and then graduating from the workshops.  It was a way for them to stay in touch and stay connected to me.  Basically, they could ask questions at any time, and we had a monthly webinar and a monthly tutorial that was released, and that was it.  And then as the years went by, we decided, I was actually working with you, and I was getting really drained by the amount of products and courses that I was having to market.  We had so many products at that point, and I was really overwhelmed, and so as a way to simplify that business, we took all of our basic, entry-level courses and put them into the membership site.  So now when someone joins, they’re able to take those entry-level courses, and then get all the extra bonuses and more advanced content that we add in every month, and I think some of the lows have definitely been dealing with the technology.  Figuring out the right platform for myself and for our users, and also figuring out what our members expect from a membership site.  There was a disconnect there for a while where I thought getting back to a question or responding to a question within a day or two was a perfect amount of time.  It turns out that is not what our members want.  They really want that feeling of having myself or a member from our team sitting by them.  And so now we implemented an internal, four-hour response time to questions.  And so we have each of our team members take shifts, and we respond to the forum in that way, just because that is so important to our members, and if that’s what they need, I’m happy to deliver that for them.

Tara:  Wow.  Do you do anything to kind of manage expectations within the membership community?

Michelle:  We have.  We have worked on, this is something that I’m not very good at, is I think explaining the details of how things work.  It’s something that I’m working on behind the scenes and in the front of my business, and so we’ve developed more welcome to the membership site documentation, this is how it works, this is where you need to go to access this type of information, and there’s still so much more we can do that I’m excited to add to the site to help that process, but that’s been a big way, I think, that being just really open, and almost giving them a behind the scenes look.  Like hey, this is why we work in this way, because these issues will pop up.  I think versus just laying out rules hasn’t worked as well for us, but when you explain why certain limitations are present or why we have certain policies, people seem really open to working within those policies as well.

Tara:  Yeah, I think that’s such a great point.  So it sounds like you’ve really been very intentional about creating an onboarding sequence that allows you to do your best work and allows people to get their best experience out of the game, too.   Awesome. 

So you’ve mentioned your team a couple of times.  Let’s kind of transition into talking about that.  Tell me about what your team looks like right now.

Michelle:  So we have what I feel is a large team, but it’s probably not that large for a lot of businesses, but everyone who works at Pattern Observer also works as a designer in other ways.  So they have their freelance job going on.  So we work primarily contract, with contract workers, and so we have Chelsea, who I’ve worked with for five years, which is amazing that we’ve worked together that long.  And so she works on client projects, she works in the studio, she also is the community manager for the Textile Design Lab, and she’s really my right-hand woman.  We’ve worked together for so long and we think alike, so it’s really easy to communicate with her in that way.  I also work with a couple other designers within the studio, and they also help with our social media.  That’s something I’ve struggled with is balancing all the different social media platforms, and so I have people who help me with that.  So basically, this is something new that we’ve implemented that seems to be working, where each week, I create a marketing guide for our business, because we’re a design blog, so we have lots of design blog posts.  It’s not like we’re just publishing one post a week.  We normally have four to five posts each week.  So that’s a lot of content to share.  So each week, I create a marketing guide, which kind of explains each posts and gives a visual that then our team can share across all the different social media platforms is one way that we’ve kept our message cohesive while still allowing me to have some help with all that.

And then with our team, my husband, Ken, works on all the websites and also is really just support.  You know, I talk through all my issues with him, and he really helps me and guides me when making large business decisions.

And then I work with a copywriter, Michelle Hunter, who is amazing, and she’s really helped me to grow my business while being so busy with family and other things as well.

Tara:  Oh, that’s fantastic.  I didn’t realize you were working with Michelle.  That’s great.  So you mentioned family.  You had a baby last year was it?

Michelle:  I did.  Well, we had our second daughter, Cora, in April, so last year, and then we have a three-year-old daughter, Ruth, as well.

Tara:  Okay, all right, awesome.  I didn’t think the timeline was making sense in my head.  That makes a lot more sense.  So those, having babies, obviously, are two huge life events.  How has growing your family affected kind of the operations behind your business on a day-to-day basis?

Michelle:  It has affected the business tremendously.  I mean, having babies is a lot of work.

Tara:  It is.

Michelle:  And, but I think for me it’s been really, really good in a number of ways, one of which is I had to really streamline our business, and I’m pretty cutthroat now about if I should not be working on something, I find someone else to work on it.  Which is why we have so many different people working in our teams.  I have to really be strategic with hey, is there someone else who could do this better than I could do this, or if I’m not doing something well, then I know that’s a sign that I need to either pass this off to one of our team members, or look for someone new to add on to our team.

I also think, so right now, I only work three days a week, because our daughter Cora’s only nine months old, and so having that downtime from work, or those days that I am spending most of my time with her, give me time to think a lot about the business, which is great for me, because I’m very impulsive. And so if I have time to make lots of decisions and add on lots of projects, I’ll do that, but if I don’t have time, like I don’t know, then I can really think through my decisions and make sure that they’re in line with our larger goals, and then think about the best way to implement those decisions.

Tara:  Oh, that is so good, because I am super-impulsive, as I think you know, and I, you know, I’ll come back for …  We’ll come back from a weekend, and you know, Rosie and Breanne are like, “What do you mean you’ve done these six things?  That was not part of the plan?”  So I’m so glad you brought that up, and I think, you know, people worry so much about not having enough time to work on their businesses, but so often, you know, we have, you know, the things that we are working on expand to fill the time that we have, right?  And so it sounds like what you’ve done is intentionally limited the amount of time that you have on your business, both I’m sure from a productivity standpoint and obviously from a personal values standpoint, but done so in a way that actually really supports the growth of your business.  Would you say that’s true?

Michelle:  Definitely.  I think, you know, so working with Michelle Hunter as an example.  I had to reach out to her because I just did not have time to do all the writing that I needed to do to grow the business, but you know, having that team member now has enabled us to grow the business in so many other ways.  So now she really knows our business, and she even points out holes in our content, or where maybe we should focus on next, and you know, advises in that role as well, and I think if I hadn’t just been so busy, I never would have thought to, or I never would have asked for help, and I think asking for help has really helped me to grow the business this year.

Tara:  Mm.  So you’ve talked about kind of delegating a lot of things that you either didn’t have time for or that, you know, you just didn’t like doing or weren’t, you know, weren’t especially skilled at, but I think that you know, as your business grows and you step into much more of an executive role instead of one that you’re just doing everything, a do everything role, there comes a time when you have to start delegating stuff that’s much harder to delegate.  Either delegating stuff that you like doing or delegating stuff that, you know, you can do, or delegating stuff that just seems impossible, like no one else could do this.  Can you tell me about one or more things that you’ve delegated that have been kind of really difficult to hand off either mentally or operationally?

Michelle:  I think handing off the copywriting was really difficult at first, because I felt I was worried that it wasn’t going to be authentic.  You know, if I’m not writing every word, and then I sign my name at the bottom, is that bad?  It was really scary for me to do something like that.  I think that was a big leap for me in terms of working with someone who’s at, you know, a higher price point, and really brings more into your business in that way, but this is something that I still struggle with.  I mean, now I’m looking to people who can consult on an even higher level, and it’s very scary for me to make that investment and to know that it’s going to pay off, and so this is something that I’ve actually been obsessing about on my days off.  When I have all this time to think is how do we take it to that next level, and who’s that, who are these new team members who I need to bring on to get, take the business there.

Tara:  Yeah, can you talk about that a little bit more?  What are some of the … what are some of the, you know, plans that you’re working through or the, you know, checks or balances that you’re putting into place as you start thinking about investing even further into the growth of your team?

Michelle:  Yes, I have been working, you recommended this, and so I hope that’s okay to say.

Tara:  Of course.

Michelle:  This is all coming from you, but … so I’ve really been focused on the last week even, part of what I’ve been focusing on is developing an organization chart for 2016.  So obviously not right now, at the beginning of 2016, but at the end, what do I want my business to look like, and I think that’s been incredibly helpful to think, to almost give myself that space instead of oh, I need to hire these people tomorrow, because that’s how I’ve felt in the past.  There was a little bit of panic there.  Giving myself some space to think about what I want my business to look like at the end of the year and then what revenue do I need to create to be able to afford those people, basically.  So I’ve been looking at the revenue expectations for this year.  You know, where can we make some tweaks, maybe add in a new workshop so that we can afford one of these higher level team members.

Tara:  Got you.  Brilliant.  Thank you for sharing that.  So how, kind of piggy backing off of that, how do you plan to grow your community, or you know, just your whole audience base over the next twelve months?

Michelle:  Again, I think advertising I’m hoping is going to be really big for us, since that’s something that we haven’t gotten into in the past.  Things have been working pretty well for us that I really just want to continue what we’re doing, continue our message, continue being really active on social media platforms like Instagram and Pinterest, and reach out to new designers in that way.  We’re also trying to; we have a new product geared towards graphic designers welcoming them into the industry.  Because I think as fun as this industry is, it can be a little intimidating to designers who come to us from other design industries, and so just explaining to them how they can so easily apply what they know from their industry into our industry is kind of a way that we’re trying to welcome new people as well.

Tara:  Oh, I love that.  So you’re really kind of putting intention behind kind of nurturing and grooming a whole new audience for your business.

Michelle:  Yeah.  I love thinking about, you know, when someone comes to our site from, you know, a graphic design background, or maybe a fashion background, what are they looking for and what do they need, and where can we help them in that way.  I think that’s a really interesting part of running a business is to really get inside the mind of your customer and your community, and how to reach out to other customers in the same way.

Tara:  Mm.  Well, you know, I love that, too, and that is just such an amazing takeaway, I don’t think, it doesn’t matter what industry you’re in, if you’re looking to grow your community, grow your audience, reach new people that you haven’t reached before, you really need to be thinking about what do they need to know to be able to make the best use of what I’m offering, and so I love that that’s, you know, something that’s on your agenda for this year.  Awesome.

So can you tell me about a time when you felt like the Pattern Observer business was sort of out of control or off the tracks and how did you get it back on track?

Michelle:  Definitely.  So one of my, one of our most difficult times was, I believe it was January of 2014, which wasn’t that long ago that we made this huge mistake, but we decided to launch a redesigned website, a membership site, and a new workshop all on the same day.

Tara:  Oh my Lord.

Michelle:  I don’t know what I was thinking.  I think I was just so excited about the workshop, and so excited about the membership site that I said, ‘Well, I need a fancy new website, blog,” you know, “as well.”  It should all be new and pretty and exactly how I want it to be in my head.  I mean, it was just a disaster, because as you probably know, as prepared as we are, and as much as we test new websites and software, there are always issues.  There’s just, I mean, I’ve never worked on a project where there hasn’t been some sort of issue, and so we had three new systems that were in place, and it was so difficult to pinpoint where, you know, the code was wrong within those systems and why things weren’t working, because it was all so new.  So there was so many areas where the mistake could be, and so I really get, I get very upset with customer issues.  When someone isn’t happy with someone or something, or when someone can’t login to the site, those things really upset me, and so we were getting lots of emails, not complaints. I mean people weren’t angry, but they just weren’t able to access the materials that they were excited to dive into, and so that was just a really hard time, and it actually took months to get all the issues ironed out, and I almost gave up the entire business and just went back to painting.  That’s what I just kept saying.  “I just want to go paint.  I don’t want to deal with these issues.”  But I’ve learned so much about running an online business since then.  I mean, really need to take things slowly and release things.  Don’t try to do everything all at once, and just releasing products more slowly and just taking time with the process and making sure that you’re testing for weeks and weeks before you launch something versus one weekend before.

Tara:  So coming out of this kind of massive failure, for lack of a better word, where you’re launching all of these things at the same time and trying to make this giant change all at once.  How has that affected the way you both kind of plane for the future and the way you handle yourself when something goes wrong?  What did you learn out of that situation in terms of what you need to have in place when things go badly?

Michelle Fifis, founder of Pattern Observer and The Textile Design Lab, on Profit. Power. Pursuit. with Tara GentileMichelle:  I think taking things very slowly is first and foremost.  Just understanding that okay, if we’re going to add something new to the website or if we’re going to launch something new, let’s do it in steps, test it, and see how it goes before adding something else to the website.  But you know, larger picture than that, I think it’s, I’ve calmed down a lot in my business since that time, and I’ve just learned that mistakes are going to happen, and again, communicating with your community is just so important, and that we are bigger than the mistakes.  Or our businesses are bigger than the mistakes.  Bigger than, you know, one product that doesn’t succeed, and we can work through those, and if you’re just honest, and again, give lots of gifts, then you can really, your community will accept that, and you can just move forward.

Tara:  Yeah, so communicate and give gifts and do things incrementally.

Michelle:  Yes.  Yes.

Tara:  Yeah, I love that, and I love what you said, too, about making sure that everyone has some perspective that your business is bigger than any one mistake.  I know that’s something that I coach my team on a lot is that, you know, yes, someone can be unhappy, or yes, we can have a technical problem, or yes, they cannot get the right download link for an eBook or you know, whatever it might be.  As long as we address the situation promptly, it doesn’t have to be something that you get stressed out about it, and I think that the more you can kind of train yourself out of that stress response, the more you’re able to do exactly what you just said, communicate, give gifts, and do things incrementally.

Michelle:  Yes.

Tara:  Awesome.

Michelle:  And I think it takes time.  You know, that’s something that it’s really easy to just listen to and get, but it takes being so stressed out and just being so exhausted from that stress to realize that that stress isn’t that helpful, and it’s not really helping anyone, so taking that action, and listening to your community and figuring out how they would like to be compensated, you know, for those mistakes.  Or maybe there doesn’t need to be compensation, but you know, how can you look to the future instead of just worrying about what’s happening is so important as well.

Tara:  Yes.  So tell me a little bit more about how you actually tackled the problem.  How did you organize the issues?  How did you approach the infrastructure?  Kind of take me through that a little bit, because I think this is something that people often get really tripped up on.  Either once it’s happened or the fear of it happening as well.

Michelle:  So a big part was our community is awesome, and so they were, so when someone had an issue, we, my husband developed, you know, specific questions to ask them.  Can they give us a screenshot of why, what was going on when an issue occurred?  You know, what type of computer were they using.  We really tried to get all those details, because details can make a big difference when you’re trying to analyze software issues, and I’m definitely not that knowledgeable about code or things like that, but this is kind of from my perspective what we did to solve those problems was we had a set of emails and email responses to some of the popular issues that we were having, so that he could then figure out exactly why those issues were having.

And then on my side, I think I just did, you know, again, communicating with our members, letting them know what was going on, and then giving them lots of free stuff made me feel better, so that’s what we did as well.

Tara:  Nice.  Communication solves a world of problems, right?

Michelle:  It does.  Instead of just, you know, sticking our head in the sand and just ignoring that those problems were happening, we really confronted them head on and were just very honest with what was going on and gave everyone, you know, months of free memberships and just did whatever we could to make our designers feel like we were hearing the issues that we were having and that, you know, they were almost willing to work through the issues with us, which is an amazing feeling as well.

Tara:  Mm.  So here’s a question that I ask almost all of our guests as we start to wrap up here.  How do you balance the roles of artist and executive in your business?

Michelle:  I think that’s been one of the most difficult parts of the business.  They both come fairly naturally to me.  I’ve always been very interested in business and entrepreneurship, and obviously the artistic side of things as well, but combining them into such a busy day has been very difficult.  And I think now I’ve kind of been working on my mindset with this, and designing from more of an executive perspective.  So now I guess I gave myself a promotion to creative director, and so I’m working more on developing high level trend concepts and high level collection concepts and then passing it off to my team.  You know, I still have to play and experiment, or I still get to play and experiment I should say, in order to stay fresh and be able to teach these techniques to other people, but within the past year, that’s been something I’ve been working on and struggling with is how do I juggle this growing teaching business with a design business as well, and so I’m hoping that the studio answers part of that struggle as well.  And so figuring out that maybe they aren’t as separate as I once thought in the past.  I used to have a set design time and then a set business time, and I’ve really been trying to merge those two, actually, and come to my design time, my design work with that executive hat on as well.

Tara:  That is fascinating.  I think we’ve had a different answer to that question every single time I’ve asked it, and no one else has talked about combining things in that way, and I think, you know, even more than just seeing the artist and the executive as two sides of the same coin, I love how you talk about really elevating your own position so that you can have both of those hats on at the same time, even if that might look funny.

So what’s next for Pattern Observer?

Michelle:  The studio is what I’m really excited to play with and see how that goes.  So you know, again, I really want it to become a teaching studio, where we employ designers from the lab and give them that hands on experience, and I don’t know how it’s going to work out, but that’s part of the fun of it is just playing with that as well, and then I hope the site and the membership site are just going to continue to grow.  I’m looking for more collaborative opportunities with other experts in our industry is something that I would really like to do more of within the next year or two.  So I’m hoping to see more of that as well.

Tara:  Fantastic.  Well, Michelle Fifis, thank you so much for joining me.

Michelle:  Thank you so much for having me.  I loved chatting with you.

Tara:  Me, too.

You can find Michelle and her free training on turning your art into patterns that sell at PatternObserver.com.  You can also find her on Instagram @PatternObserver. 

Next time on Profit. Power. Pursuit., I’ll sit down with author and business consultant, Pam Slim, to talk about the role martial arts has played in the development of her business, her indispensable community tour, and the shifting focus of her brand.

That’s a wrap for this week’s episode of Profit. Power. Pursuit., a CreativeLive podcast.  Download more episodes of this podcast and subscribe on iTunes.  If you appreciate this kind of in depth content, please leave us a review or share this podcast with a friend.  It means the world to us.

Our theme song was written by Daniel Peterson, who also edited this episode.  Our audio engineer was Kellen Shemezu.  This episode was produced by Elizabeth Madariaga.  You can catch up on older episodes in the iTunes store, where new episodes are added every week, and learn more by going to CreativeLive.com.

3 Ways You Should Be Following Up to Maximize Your Profit

3 Ways You Should Be Following Up to Maximize Profit

I see too many business owners leave money on the table–and leave lives unchanged–because they’re not following up.

So the mantra I’ve been making all my clients repeat this year is:

Follow up, follow up, follow up.

When was the last time you sold something to your audience? Last week? Last month? Last quarter? (If it was more than that, we need to have a different talk.)

How many times did you follow up with your audience after you made the pitch? What did you say in those follow-ups? How direct were you?

In our last big campaign, I sent 3 “last chance” emails on the final day of promotions. 49% of our sales happened on that last day. About 30% of those happened between the 2nd and 3rd email. Yes, a few even occurred after the 3rd email.

Before that, I sent out testimonials, video case studies, FAQs, and additional content to educate readers.

All of that was  after  we made the initial pitch.

Look, I know you don’t want to annoy your readers, fans, and subscribers. But think about how busy you are, how many emails you miss, how many opportunities you’ve beat yourself up for missing in the last few months. 

They’re facing the same thing. 

If you don’t follow up with them, they can’t buy. If they can’t buy, they can’t experience the transformation–big or small–your offer will create for them. Here are 3 ways you can follow up, help customers get what they really want, and maximize the profit you’re generating in your business.

1) The Pitch Follow-Up

Every time you make a pitch, plan to send 4-6 follow-ups. Not all of these emails need to go for the “hard sell.” 

You can provide additional content, tell stories, and share results from former clients. Though, you should include at least 2 or 3 follow-ups that directly overcome objections to buying, describe the perfect customer for your offer, and heighten the natural urgency they feel for buying.

Make sure that all of your follow-ups include a call to action to buy.

Here’s an email I sent recently as part of my own pitch follow-up campaign. The email told a story about one of our clients which allowed me to describe our Perfect Participant, highlight the problem we solve, and point to specific outcomes new clients could expect. While the “sell” was soft, it was still clear and–ultimately–effective.

Screenshot 2016-09-02 14.25.35Screenshot 2016-09-02 14.25.49Screenshot 2016-09-02 14.25.57

2) The Up-Sell Follow-Up

Customers who buy from you once are 2x more likely to buy from you the next time you make an offer. That’s true even immediately after they’re first purchase. 

Your new customer has just expressed a specific need. Do you have something else you could sell that further helps to fulfill that need? Maybe it’s 1:1 consulting, a video course, a consultation with a team member, etc…

Follow-up with another offer.

We recently put this Up-Sell Follow-up in place to suggest our entrepreneurial community, The Lab, to new customers. Just 3 quick emails to point out a few of the benefits of the community and tie them to problems we know those customers have–nothing fancy.

3 Ways to Follow Up with Your Audience to Maximize Profit

The application is simple: people who buy certain products are tagged in our ConvertKit system with a label that triggers this automated email sequence. It happens automagically. Even if it only increases sales incrementally, those are sales I don’t have to work harder for and those increments really start to add up!

3) The Referral Follow-Up

I’m often asked how to get more referral business–or how to turn referrals into a dependable system.

The easiest way is to ask. The easiest way to do that is by automating it.

You can set up a short sequence like the one above or use a tool like Boomerang  or Zapier to send referral emails a short time after a client completes with you.

Now your ask is just another part of the process your clients or customers go through in the course of doing business with you. 

And, of course, this doesn’t just apply to service-based businesses. If you have a product-based business, you can ask for referrals, too. Just ask your customers to share your product with friends who might like or need it.

Are you sold? Choose one of these follow-up techniques to implement in your business now.

 

Direct Sales and Starting Something New with Nathan Barry

Nathan Barry, founder of ConvertKit, on Profit. Power. Pursuit. with Tara Gentile

Connect More With Your Audience By Doing Less: 6 Marketing Automations You Need Today

Want to supercharge your email marketing so that you can create more human interactions with less work? I’m hosting a live workshop with Darrell Vesterfelt from ConvertKit on how you can do exactly that. Click here to register FREE of charge.

[smart_track_player url=”http://media.blubrry.com/creativelive/content.blubrry.com/creativelive/PPP-039-NATHAN_BARRY_POWER-STRATEGY-PROMO.mp3″ title=”Nathan Barry of ConvertKit on Starting Fresh and Direct Sales” social=”true” social_twitter=”true” social_facebook=”true” social_pinterest=”true” ]

For my full review of ConvertKit, click here.

Tara:  Hey everyone, welcome to Profit. Power. Pursuit.  I’m Tara Gentile, your host, and together with CreativeLive, we explore the unique strategies that creative entrepreneurs use to take control of their lives, profit from their passions, and pursue what’s truly important to them.

Today, I talk with my friend, Nathan Barry, a software designer and founder of ConvertKit, an email marketing service provider that helps you build your audience and convert them into customers.  Nathan made his first foray into digital entrepreneurship with The App Design Handbook, a guide to design beautiful iOS applications.  He started ConvertKit in 2013 when he found all other email marketing tools lacking the set of features he wanted as a content marketer.  It’s now on track for its first $1 million year.  Nathan and I talked about making the decision to pursue growing ConvertKit full-time, and put his lucrative digital products business on the back burner, the direct sales strategy he used to woo influencers to his product, and what he’s learned about building a Software as a Service venture.

Nathan Barry, welcome to Profit. Power. Pursuit.  Thank you so much for joining me.

Nathan:  Hey, thanks for having me.

Tara:  Absolutely.  So I want to talk lots and lots about ConvertKit, both how that business works and how it can make our listeners businesses work, but first, tell us how you got started with digital entrepreneurship in general.

Nathan:  Yeah, so I started out as a web designer in high school.  I learned how to write HTML, mainly because it had a really quick feedback loop that I thought was cool.  You could just change a tiny bit of code, and then refresh and see what change that made, and so it just got me excited, and then I started working on all of that, and then from there, I did freelance web design, and then got into software design, and got a job at a software company, and then eventually led their design team, and then I was always fascinated by the world of, like, you know, side projects and building little products rather than just doing services.  And so I followed people like Jason Fried and David Heinemeier Hansson from Basecamp, you know, and loved anybody who was basically making products, and so on the side, I started building iPhone applications.  Had got a couple in the app store.  Ended up quitting my job to work on that and also do consulting, and then I started getting asked a lot about how to design applications.  All of my developer friends were asking me for help with their iPhone apps, and there weren’t really any good resources to point them to.  So I wrote a book called The App Design Handbook.  I didn’t really have a blog at the time, or I had a blog, but nobody read it, and I just started working on promoting this book and writing iPhone application design tutorials, and then I built an audience of like 800 people, did a book launch that did very well, and so it was like whoa, okay, there’s something to this training business idea, and then ended up writing more books on software design and on marketing, and then just kind of built a big blog audience, and made really a great living from selling books on technical design and marketing.

Tara:  Nice.  So what misconceptions did you have when you started your business?

Nathan:  Oh, that’s a good question.  I didn’t know the power of an audience.  I really had no clue how to build an audience, quite frankly.  I thought that only like the internet famous people could build an audience, and so when I would hear about someone doing a product launch, and you know, they might sell a book and, you know, it would sell, you know, $50,000 worth or $100,00 worth or something, I was like, yeah, well, of course you can do that, because you’re famous, you know, and I didn’t realize … like I made no connection between how people got to that point.  And so it wasn’t … I had to learn this lesson from like three different places before it sank it, but the idea that in order to become one of those internet famous people, you know, who has an audience of 10,000 subscribers or whatever, all you have to do is teach, you know, and so the story that made this really sink in from me was from a guy named Chris Coyer, and he had this site called CSSTricks.com.  So as a web designer, I was really into, you know, all those web design blogs and articles, and I remember when he came out with the CSSTricks site, I looked at that, and I was like, eh, he’s actually not … like, his content’s not that advanced, and so I’d looked at that, it was good, but I already knew everything that he was teaching, and I kind of remember thinking, like, okay, if I already know everything he’s teaching, like he’s not that much of an expert, and so he would come out with more stuff, and I’m like, oh, yeah, already knew that.  And then eventually, his stuff got better, and then like later on, I’d be like referencing it or sending other friends to it.  They’d ask me a design question and I’d say, oh, why don’t you check out, you know, Chris’s site.  And so all along, we had the same skill level, we basically learned web design at the same pace, and then one summer, he came out with a Kickstarter campaign, and basically, what he said is hey, I want to redesign my site, and I want to be able to take a month off of client work to do it, so I want to raise $3000 on Kickstarter so I can do that, and as a thank you, if you back this project, you know, as I go along, I’m going to create all these design tutorials, and if you back the project, you get access to them.  So he ended up raising something like $85,000 on Kickstarter.  And I’m looking at this going wait a second, Chris and I are the same.  Like we have the same web design ability, we started it basically the same time, and we’ve been learning at the same pace.  So how does he have the ability to effectively flip a switch and make $85,000 on Kickstarter, and I have nothing like that at all?  And so that’s when I realized that the difference, and it was a massive difference between us, is that when Chris learned something new, he taught it, and when I learned something new, I kept it to myself and just, you know, applied it into my next freelance project.  And so that’s what I realized.  The only difference between the people who are internet famous and the people like Chris and me was that one set of people were teaching and the other wasn’t.  And so from then on, I just became determined to teach everything that I know.  I even have t-shirts now that say that.  So it’s kind of become my life mantra of how, like how to build an audience, and all you have to do is as soon as you learn something, teach it to everybody else.

Tara:  Yes, and I totally missed an opportunity, because I forgot to wear my ConvertKit t-shirt today, and so now I feel like a big old dufus, even though this is an audio-only podcast.  So I love this takeaway, because … and I wrote a post something very similar, you know, because one thing that I hear from people often is that they don’t feel qualified to do this or they don’t feel qualified to do that, and it comes down to the same thing where they see … they see, somehow, a substantive difference between them and the people that they admire, the people that they see doing the things, and what you’re saying is that it’s not a substantive difference.  It’s not something that I’m born with or you’re born with that they are not born with.  It is in fact just action that you and I have chosen to take.  And even in my own story, there’s that sort of realization of wait a second, if every … if there are other people doing this, then I can do this, too.  There’s nothing different about those people and me, I just need to do it, and that’s huge, because you know, not doing the thing, not taking action is the only thing that holds us back from getting where we want to go, right?

Nathan:  Yup, absolutely.  The way that I’ve thought of it is that those people you look at that are experts, they’re not teaching because they’re experts.  They’re experts because they teach.  So you start teaching, and you become that expert, and then you get asked to speak at the conferences.  You get asked to be the guest on podcasts and etc., but it all starts with teaching, and it can start at a very, very basic level.

Tara:  That’s fantastic.  So this leads me directly to ConvertKit, because I feel like I have this problem with ideas like ConvertKit.  In other words, I see me as, you know, a founder in the information marketing space, but I feel like there’s a substantive difference between me and a founder in the SaaS space or the startup space, and you know, when I look at it objectively, of course, that’s not true, and maybe you dealt with that, maybe you didn’t deal with that, but you decided to move from information marketing into a, what looks much more like a startup model and build a SaaS product, which is ConvertKit.  So what gave you the idea for ConvertKit, and what kind of gave you or what was the sort of permission that you gave yourself to make that move?

Nathan:  Yeah, so what inspired ConvertKit was really me learning how effective email marketing was at actually just driving sales.  I … when I started selling the books, I kind of expected that like Twitter and Facebook would be the best converting channels, because like Social was the new thing, and it turns out I was totally wrong.  Like email drove more sales than all the other platforms combined.  And so then I was like hey, guys, this email thing is amazing, you know, to other marketing friends.  It’s like, yeah, we’ve known that for a decade.  I’m like okay, all right.  So I was getting the best conversion rates over email, and then I was learning all these more advanced techniques, like you know, drip email sequences to time your pitch message exactly to the right timing for each subscriber, doing content upgrades, you know, tagging your customers, all these sort of things, and I was using MailChimp, and I was just fighting it at every turn, where I was just like why are these best practices so hard to implement.  And I would find myself not doing things that I knew would increase revenue, just because it was kind of a pain in the tool that I was using, and so I very conveniently had a background in software design, and you know, user experience design, and so I thought, okay, I can do this better.  And so then I started down that road, and I was thinking of starting it as a side project and that’s what I did.  So I balanced the, you know, the information products and the training business along with the software business in order to get that off the ground, and it actually took a long time to get it going, but then, you know, over the last year or so, I’ve fully made the switch the other direction, so now I, you know, put really 100% of my time into ConvertKit and the software business, and effectively no time, which is unfortunate for my blog, but you know, almost no time into the training side of the business.

Tara:  Yeah.  Can you say a little bit more about how you actually made the transition?  Not just the decision, but you know, you’ve got a family, you’re a provider, how did you wrap your head around … what was the process of, you know, putting the numbers down on paper to figure out that putting your time and investing your money into ConvertKit full-time was the best way to go for you?

Nathan:  Yeah, so first, I should give a little bit of context.  When I started ConvertKit, which was in January 2013, so just over three years ago, it took about six months, and we got up to … six months after that to get to about $2000 a month in recurring revenue, and I honestly thought it was going to be easier than that, but okay.  Put in a bunch of work, got to the point, that was good progress, we’re on an upward trend, but then I also had, you know, the other, selling the design products and the rest of the business that was making really good money, and so I found it really hard to focus on like the long-term business and growing ConvertKit when the books and courses and product launches there could make really great money in the short-term, and so I effectively spent the next year and a half supposedly balancing these two businesses, but really, almost all my effort went into the training where, you know, you could do a $30,000 or $50,000 product launch, and almost no effort into the software side, into ConvertKit.  And so then in, like, middle of 2014, I was having a conversation with a friend of mine, his name’s Heaton Shaw, and he’s really well-known in the software and startup space.  If you’ve ever used tools like CrazyEgg or Kissmetrics, those are his companies.  And he just, we were walking back from dinner at a conference, and he just said, “Look, Nathan, it’s time that you admit that ConvertKit’s a failure and shut it down.”  And I was like, well, hold on, it’s not a failure.  It’s making like $2000 a month, you know, and he’s like, he was pretty firm, and he said, like, “Look, if you’ve been putting time into it this entire time, it should be way bigger than that.  If it was going to be successful, by now it would be, and you need to admit that it’s a failure and shut it down.  Move on to something else.”

And then he continued, because that sucked to hear, but so I was glad that he continued, and he said, “Or you need to take it seriously and give it the time, money, and attention it deserves, and build it into a real business.”  Because I was kind of working on it a little bit on the side hoping, yeah, once this takes off, then I’m going to switch to it.  And I think a lot of us do that with side projects, because you know, that’s what the hope is, but things don’t take off on their own, you know, 99% of the time.  They take off because we make them, and so what I did is I ended up waiting about six months to, or four or five months, before I actually acted on his advice.  And so the revenue of ConvertKit dropped down even further, so we were making $1300 a month at the time, and from there, you know, I finally had a decision to make.  Should I shut down ConvertKit, admit that it’s a failure and move on, or should I double down on it?  You know, invest real money and build it into something.  So I kind of came up with my own little framework for deciding how to make this the decision, and came down to ask myself two questions, and the first was do you still want this as much today as you did the day that you started?  And so for me, you know, do I still want to be the CEO of a software company as much now as, you know, two years ago?  And the answer was a resounding yes.  Like, I still really wanted it, and so you know, that was good, because if I didn’t still want it, then just shut it down.  Like it’s easy to move on.

Nathan Barry, founder of ConvertKit, on Profit. Power. Pursuit.But then the next question was, you know, have I given this company every possible chance to succeed?  Because if the answer there is no, then okay, there’s an opportunity there.  If the answer is yes, then it’s like, okay, well, if you’ve really, truly given it your best effort and it’s not working, then like shut it down and move on.  But in this case, I looked at the time I’d been putting in, and I hadn’t given it every, you know, possible chance to succeed, and that didn’t, like, if I wanted it more than ever, why … why was there a disconnect there?  And so that told me, okay, there’s still an opportunity here, and I decided to … to double down on it.  I invested $50,000 into the company.  I hired the best developer that I’ve ever worked with to lead the development team, and then I just started selling.  Like I, instead of waiting for customers to come to me, I made lists of all the bloggers and, you know, people doing email marketing and just tried to get on calls and email with every single one of them, and it took time, but we gradually turned the revenue around.  You know, we started growing about 20% each month.  You know, three months later, we were doing like $4000 a month in revenue.  By June of … So I made the decision October 2014, by June 2015, we were at $10,000 a month in revenue.  $25,000 a month by October 1st.  $83,000 a month by Christmas.  That’s a magic number, because that’s a $1 million a year run rate.  And then now, we’re just about to pass double Christmas, so today, we’re at $160,000 a month in revenue, and growing 20% month-over-month, and it’s turned into this amazing thing, but it wouldn’t have happened without deciding to really double down and focus.

Tara:  That is awesome.  So I want to talk more about that.  I have some very specific questions about that a little later on, because you know, this decision to sell, sell, sell, and to stop waiting for people to come to you is absolutely huge, and we need to pick that apart, but I want to go back to the beginning just a little bit, just so that people can understand.  Did you do the initial development on the product or did you outsource that?

Nathan:  Yeah, so I did the design and the front-end code, so that would be the HTML and the CSS.

Tara:  Okay.

Nathan:  And then I outsourced the Ruby On Rails development.

Tara:  Okay, fantastic.  And where did you find that initial set of customers that, you know, were supporting that $2000 a month revenue at the beginning?

Nathan:  Yeah, so I found them effectively just from my blog audience.  From the books and courses that I had written, you know, I had … I don’t know how many.  I think when I started I maybe had 6000 or 7000, when I started ConvertKit, I had 6000 or 7000 subscribers, and so I told them about it, and enough people signed up and tried it out.

Tara:  Nice.  And do you think … what do you think was their main reason for signing up then?  Was it because wow, Nathan developed an email marketing provider, that’s awesome, or was it a particular benefit?  What do you think got them to sign up?

Nathan:  I think the pitch was fairly compelling because it was I ran to this specific set of problems that you probably have, too, and you know, and I solved them for myself, and so, you know, a lot of people who are feeling the same problems with MailChimp, you know, being charged for duplicate subscribers, all these other things, they were like yeah, this sounds great.  Now, the downside is that the product, the ConvertKit product wasn’t super robust at the time, and so, you know, it was limited in who stuck around and so it was definitely an uphill battle, but that … the initial sales pitch is what got people over.

Tara:  Okay, awesome.  Can you talk more about the particular problems that you saw in the email marketing space that you decided to solve with ConvertKit?  Because I think this is a really compelling part of how you decided to build the product to begin with.

Nathan:  Yeah.  So my idea was that there’s all these best practices in email marketing, and you shouldn’t have to work for them.  They should be built into the product by default.  And so when we focused in on professional bloggers and you know, content creators, then that meant, okay, I can solve just their problems.  And so the main ones were that you should be able to tag your customers.  So you know, you should never send a message to someone telling them to buy a product that they’ve already purchased.

Tara:  Amen.

Nathan:  The next one is you should do content upgrades on all of your content that’s, you know, the highest value.  We had a ConvertKit customer recently, they have an amazingly popular blog, and they had 400, they were averaging 400 new subscribers a day, and they went back to their top 15, they went into Google Analytics, ran a report, the top 15 articles, and then they made specific content upgrades for those.  So instead of saying, like, the call-to-action being subscribe to my newsletter, it changed to being, you know, get this free guide on topic exactly related to the blog post, and they ended up doubling their subscribers per day based on that one change.

Tara:  Oh, so good.

Nathan:  So they went from 400 subscribers a day to 800 subscribers a day on average.  And so I was like, okay, that should be really easy to implement, and so I wanted it to be very easy to make it so that a form, when someone signs up, you know, they could get like the free guide or the free link to the video course or whatever right there in the email, and that should all be customizable.  And then there were other little thinks like if someone goes to our site and they subscribe to your email list and then they come back, most likely, you’re pitching, like the call-to-action all over your site is subscribe to the email list, and so I was looking at that going, okay, why is everyone, again, like the earlier thing, why is everyone pitching an action that has already been taken?  We know that that person subscribed to the email list, and so … and it’s not that hard to track.  You know, you can do some custom code and track when someone subscribes, and then show different content.  But out of, you know, all the professional bloggers I know, like three of them have done the work to custom code that sort of tracking.  And so what we built straight into ConvertKit was if someone signs up to your email list and comes back, that same form can now show different content just for them.  It could either hide itself so they’re not getting pitched on something they’ve already done, or it can show a call-to-action for the book or the course, you know, the next thing that you want them to buy.  And so we just built that into the platform once, and now every ConvertKit customer can use it, and it’s a very, very profitable feature.  So basically, those kind of things.  Every best practice I have learned about email marketing built directly into a product.

Tara:  Yes.  Which is why I love it.  So all right, awesome.  Let’s talk about more about the selling and the influencers piece here, because I think this is so, so, so important.  There is this misconception in content marketing, in digital marketing in general, that people … that the way this all works is that you build this thing, and then people come to you, and if there is anything that I have learned over the last 7 years, it is that that is completely false, and that even when we’re doing our very best job and we are getting people coming to us sort of organically, it’s because we’ve done the hard work of actually reaching out to begin with.  And so you’ve really focused in the last, like you said, six months, last year, on growing the customer base at ConvertKit by reaching out to influencers in different markets.  How did you decide on that particular strategy?

Nathan:  Really, I learned that there is a lot of people who were trying to … who I was pitching on ConvertKit through blog posts and that sort of thing, and they weren’t buying, and I didn’t know why.  And so that’s something, if you write a blog post pitching your course or whatever it is, and say that … say that’s read by 1000 people, and 10 people buy.  Well, why did the other, you know, 990 not purchase?  You don’t know.  They just kind of moved on with their day.  But if we’re having a conversation, and I, you know, verbally tell you all the benefits and say, “Would you like to buy it?”  And you … like you can’t just hang up the conversation and move on.  I mean, I guess you could, but if we’re friends, you’re not going to do that.  You have to actually tell me why it is that you’re not going to buy the product.  And so getting that feedback is incredibly valuable.  And with content marketing, you just almost never get that feedback.  People just silently move on.  And so I realized that I needed that feedback, and I realized that content marketing wasn’t working for me to sell, you know, this particular product.  It worked amazingly well for me selling the books and courses, and so I just … I started with the direct outreach.  I actually made a Trello board so I could track every conversation, which now, you know, there’s obviously way better CRMs and sales tracking tools for it, but I started really simple with Trello, and so the big things were I just made lists of people to reach out to, and then I made sure to follow up with all of those people, and it was just a lot of conversations.  And I started small, where the first people I was reaching out to were, you know, had 1000, 5000 email subscribers, and we just kind of worked our way from there, and you know, later on, we’re reaching out to people who had 100,000 subscribers, and you know, way beyond that.

Tara:  Yeah, and one of your big victories was getting Pat Flynn to switch to ConvertKit, right?

Nathan:  Yup.

Tara:  Can you tell us how that happened?

Nathan:  Yeah, so this is a case where your own content marketing will help your sales efforts a lot.  So if you’re purely sending a cold email, like that’s not going to get great response, but if you’ve been blogging and putting a lot of things out there so that these people might have heard of you already, then all of a sudden, it’s way easier to get a response to your blog posts.  The other thing is if you’re going to do direct sales, go to conferences.

Tara:  Yes.

Nathan:  Because there’s just a huge difference between some random cold email that, you know, you and I get tons of every day, and you know, a real person standing in front of you at a conference, you know, and just getting to know people.  So through some mutual friends, through my blog, stuff like that, Pat and I had had some conversations, and then we met once at a conference, and things kind of went from there.  But then I emailed him and said, “Hey, you know, would you consider ConvertKit?”  He said, “No.”  He had just made the switch to InfusionSoft and was really excited about it.  So I was like, oh, that’s a bummer, I wish I’d caught him before he made the move.  Too bad.  But then I decided to actually go down and visit him in person.  So we had enough of a relationship that I knew that if I showed up in San Diego, he would like take a coffee meeting, you know.  And my goal at this point, I decided, was to not pitch him on becoming a customer, but instead, to get him to promote ConvertKit as an affiliate, because even if he loved InfusionSoft, it was probably too complicated for, you know, his readers.  So I got coffee with him, talked through all of that, got him on board with, you know, him becoming an affiliate, or at least the idea of it.  We kind of worked on it slowly, and then, like a few weeks later, he came back to me and said, “You know, I’ve been thinking about this.  If it’s this … if everything you’re saying is true and it’s this good for my readers, like InfusionSoft is really, really frustrating me right now.  It wasn’t the dream that I was sold, and so let’s try out ConvertKit.”  And so in July of last year, he signed up, switched over from InfusionSoft to ConvertKit, and we weren’t allowed to talk about it publicly, because he was just trying it out.  But then he ended up, you know, really enjoying it.  And we get email from people who, they’d be like … they would see from his email list, you know, because the link tracking and stuff was coming through ConvertKit, they’re like, oh, did Pat just switch?  And then he would like quietly mention it in some live Periscope broadcasts, too.  Like, we actually got a bunch of customers, because one night at Midnight, because this is how Pat works, he was doing a Periscope broadcast, and he mentioned that he switched to ConvertKit and started showing people that over ConvertKit, and we ended up getting like 15 or 20 new customers the next day, like that night and the next day, which was huge for us at the time.

Tara:  Yeah.

Nathan:  You know, just because he was talking about it at Midnight on the internet.  So another thing on the sales side that we did was we started doing what we called concierge migrations.  So basically, we would have a conversation, and someone would be like, “Okay, this all sounds really good, but man, I do not want to move my email list.  That … like I love everything that you’re doing, but this is too much work.  I’m sorry, it’s probably just never going to happen.  Or it’s going to happen when I have time, which is also never.”  And so then we’d say like, great, totally understand that.  We will move your email list.  You know, migrate you from MailChimp to ConvertKit or from InfusionSoft to ConvertKit, and we’ll do it totally for free.  And so in the early days, I was doing this for anybody, and then later on, we set, you know, some limits.  So only the $100 a month and above accounts, and that kind of thing, but it just made the sales process so much easier, because it just removed that last objection right at the end where people were like, “I’d love to, but oh, man, no.”  And so when we removed that last objection, they were like, “Done.  I’m in.”

Tara:  That did it for me.  I mean, I had … I knew I had outgrown MailChimp years ago, even though I loved … like I love them, and I still love them, and I still recommend them, and they weren’t … it wasn’t what I needed anymore, but the cost of switching was so high.  Not in terms of financial decision, necessarily, although that could have been part of it, but just the time and the frustration, and so when you told me, “Well, yeah, we’ll do it for free.”  I’m like, uh, okay.  I mean, I would have paid you to do it, but doing it for free, absolutely, it removed that last objection, and it was so easy to say yes, because I was in exactly the same place.  Like this sounds great, this sounds amazing, it’s exactly what I’m looking for, and the cost of switching is huge.  So that’s great.  And I just want to emphasize for everyone again that, you know, we talk so much about marketing.  Marketing, marketing, marketing.  Content marketing, Facebook marketing, social media marketing, but sales is where transactions actually happen, and sometimes, that means getting on the phone with people, and I’m just so thankful for your example of how that can be so beneficial.  Are there any other strategies, tactics that you’ve used to woo customers outside of this influencer marketing?  You’ve mentioned affiliate marketing some.

Nathan:  Yeah.  So the other great thing about getting influencers is that a lot of people tend to follow them, that’s why they’re influencers, and so we, you know, worked on getting a good affiliate program in place, so we pay a 30% recurring commission, and you know, so that … that made it easy to get, you know, Pat promoting as an affiliate, and then just these other influencers in like the health and wellness space and in fitness and in all these other areas.  Some just promoting it to their friends, and others, you know, promoting it very, very vocally, and so right now, we pay about $10,000 a month out in affiliate commissions, and that’s, you know, increasing, you know, at a very quick rate.  So the three big channels, really, are direct sales, affiliates, and then just referrals, where you know, someone who loves ConvertKit just tells their friends, and it just kind of spreads from there.

Tara:  Awesome.  What has surprised you about developing a SaaS product versus what you’ve done before?

Nathan:  How hard it is to develop and maintain, and then also, how hard it is to sell.  You know, there’s something about with books and courses, just because you bought one, that doesn’t preclude you from buying another, you know.  We all kind of have a bunch of them that we buy and learn from and all of that.  Whereas an email marketing product or, you know, a scheduling tool or any of these, you pretty much buy one, you know, and you might switch from one to the other, which we’ve already established is a big deal, but it’s not … it’s not an impulse buy.  It’s a big decision, and you know, if you’re already using and loving one tool, you’re not going to buy another.  You know, you’re like you can’t do it.  So that’s been the hardest thing.  I thought it was going to be way easier to sell than it actually was.

Tara:  That’s excellent.  And again, to kind of point out this exactly what you were just saying, the home page for ConvertKit is just completely benefits-driven, and completely, you know, here’s why this is the best choice, here’s how we’re going to help you get over all of those problems that you have with your current provider, and I think that that really, I think it’s super effective, and I think it really speaks to, you know, what you just said.  Can you tell us what your team looks like right now?

Nathan:  Yeah.  So we have a team of 13 full-time people.  We’re distributed all around the world.  One of our … I’m headquartered in Boise, Idaho, and we have three, two other people in Boise, but then other, you know, like Nashville’s popular for us, Portland, and then around the world, we’ve got Thailand, Brazil, and Spain.  So the team is five developers, four support people, and then there’s three in the account management and sales side, and then there’s, you know, we’ve got one person in operations, I don’t know how many people I’ve listed.  Beyond this, it’s like everyone is overlapping between different roles, like Val, who’s amazing, who runs all of our marketing, you know, also helps out in support.  And so you know, beyond that, a lot of people are juggling multiple roles, but that’s the basic team.

Tara:  Awesome.  Do you have a strategy or system for managing your time?

Nathan:  Poorly.  I schedule the recurring meetings, you know, with each of the directors on my team, because I guess now, I still … I directly lead the support team, but everything else, you know, I have fairly limited involvement with, because I’ve just tried to set up those systems so the … like with development, I have a meeting once a week with my director of development.  We set the direction and that kind of thing, and that’s pretty much the extent of my involvement, because he just runs that entire team and does an amazing job.  And my team is really good about listing out all the things they need from me, and then getting them taken care of in one block instead of just pinging me all day long in Slack or something.  So that’s helpful, but at this point, my job as the CEO changes so often.  Like the company is growing so quickly, you know, that we’re doubling the size of the company every couple months, and so my job changes all the time, and quite honestly, I’m still trying to figure out how I fit into this whole picture, you know.  What it is that’s most valuable that I should be working on.  There’s a lot of strategy and that kind of thing, but then at the same time, early this morning, I was in Photoshop and you know, designing some new posters and getting some new t-shirts ordered and stuff like that, that I just wanted to do.  So it’s kind of a balance of all … all kinds of different things.

Tara:  Yeah, I do those things, too.  That’s … and that was exactly going to be my next follow-up question.  What are some of the things that you’re still really hands on, or that you find yourself being hands on with now?

Nathan:  Yeah, so I’m very hands on with customer support right now.

Tara:  Oh, okay.

Nathan:  Because dealing with the huge number of customers coming in, you know, and trying not to, I don’t want to just keep throwing people at the problem.  You know, I don’t want to be the sort of company where, you know, you blink and overnight, it seems to have gone from, you know, 15 people to 100 people type of thing.  I want to solve the core problems, so you know, we’ve been working very hard to get our customer support response times down, and so that … that’s a lot of my time.  I’m still fairly involved in design, because my background is software and user experience design.  So we haven’t hired a designer on the team, yet.  So I’m the bottleneck there, and that’s got to change soon.

Tara:  Oh, wow.

Nathan:  Yeah, and then I spend some time on sales, and I still teach some of the webinars as well.  So that’s kind of … I really work on a lot of different things, and that needs to change.  But then I also, you know, I cut out early yesterday to go skiing because we got an inch of snow and so, you know, just gotta do that.

Tara:  Oh, yeah, that’s the life, right?  I was going to ask you when you were talking about the team and you mentioned you have a couple of people that are on sort of the sales side of things now.  Are they getting on the phone with people the way you used to do most of?  Or is it more like internal sales?  What does that part of it look like?

Nathan:  Yeah, so their process, we do sales in two different ways.  One where we’re reaching out to people to do, like for partners to do webinars, just some sort of promotion, and so that’s, you know, a very organic process, and we’re going to spend a lot of time to figure out, okay, here’s this person we’re trying to get to, who do we know that could introduce us, you know, in what ways are we connected?  And then the other side would be, you know, kind of the outreach.  So we’ll … we’ll just put lists together of, okay, all of the top paleo recipe bloggers.  So we’ll get really, really narrow in who we target, and then we’ll put together a list of 30 or 40 of them, send an individual email to each person, and then everybody who responds, you know, we’ll try to get on a call with them and tell them about ConvertKit and go from there.  So that’s … that’s what I used to do, and now, they handle all of that.

Tara:  Fantastic.  Awesome.  So what’s next for you and ConvertKit?

Nathan:  We’re going to build this company up to the size of like a MailChimp or a Campaign Monitor, or you know, any of these companies.  We’re going to try to do it with, you know, a small, very effective team, and my whole mission is just … I learned a few years ago that if you … going back to the beginning of the conversation, if you teach, you can build this audience online and you can make a full-time living just from writing a blog and, you know, sharing this valuable, whether training, your stories, or whatever else with your audience, and so my mission is to get thousands and thousands of more people doing that, and I want to do that through ConvertKit, and so yeah, what’s next is to just keep teaching and training and building tools to make it easier for people to make their living on the internet.

Tara:  Oh, that’s so good.  Nathan Barry, thank you so much for joining me.

Nathan:  Thanks for having me.

Tara:  You can learn more about ConvertKit at ConvertKit.com or by reading my full review at TaraGentile.com/ConvertKit.  Next week, I’ll sit down with Lori Allen, the director of Great Escape Publishing, about her entrepreneurial journey, including helping the direct response marketing company she works for take their snail mail efforts online.  We also discussed the different types of offers Great Escape creates and why they create them, her process for creating compelling ads and copy, and the surprising thing she’s learned helping retirees acquire a new set of skills.

Are you surrounded by the right people to help your business succeed?  Your support network has a huge impact on your success, your satisfaction, and your ability to achieve your goals.  At the Quiet Power Strategy Lab, we get you and your business.  We respect your individuality, and we challenge you.  The Lab is our entrepreneurial resource library and support community.  It’s full of smart, experienced, and savvy business owners who want to help you succeed.  Start your free, 10-day, all access trial by going to Lab.QuietPowerStrategy.com/People.

That’s it for this week’s episode of Profit. Power. Pursuit.  You can download other episodes of this podcast and subscribe in the iTunes store.  If you enjoy what you heard, we appreciate your reviews and recommendations because they help us reach as many emerging entrepreneurs as possible.  Our theme song was written by Daniel Peterson who also edited this episode.  Our audio engineer was Jaime Blake.  This episode was produced by Elizabeth Madariaga.  You can catch up on older episodes in the iTunes store, where new episodes are added every week, and you can learn more by going to CreativeLive.com.

Photo of Nathan by Armosa Studios

Should You Switch from Aweber or MailChimp to ConvertKit?

Ever since I publicly switched email providers from MailChimp (my first love–you never forget your first love) to ConvertKit last fall, people have been asking me if they should switch too.

The answer is complicated, so I wanted to lay down my thoughts in a thorough review of ConvertKit and provide a sort of self-assessment for deciding if it’s a good move for you too.

Should you switch from MailChimp or Aweber to ConvertKit?

Why I Switched from MailChimp to ConvertKit

I was a MailChimp customer for almost 7 years. I knew after the first year or so that I had outgrown them. It wasn’t that the service was bad–it’s phenomenal–it’s that what I wanted to do with email marketing couldn’t be done on MailChimp. The main feature I was lacking was advanced segmentation (the ability to send people the best content or offers for them based on their interests). 

The other feature I was missing out on was easily being able to send out multiple opt-in incentives while maintaining a nice, neat list. 

As the years went by, MailChimp added more and more features and more and more integrations (mostly Zapier and LeadPages) that allowed me to cobble together most of the functions I was looking for.

However, this just left my account even more bloated and unwieldy.

But the biggest problem of all was that I was avoiding emailing people because I was afraid that I could segment them properly so that they would only receive the email that was meant for them.

That meant money left on the table. 

Nathan Barry, the founder of ConvertKit, phoned me up in September 2015. We chatted about the product, what they were working on next, and why it might be a good fit for a lot of my clients. He wasn’t trying to sell me. He just wanted me to mention ConvertKit when I talked about email marketing in classes and workshops.

But I was sold.

It was time to move on from MailChimp and I just didn’t want the hassle of a solution like InfusionSoft or Ontraport.

As I mentioned, the biggest reason I switched was the ability to send the right people the right email. It’s that simple.

What I Love About ConvertKit

Tagging in ConvertKitConvertKit makes highly targeted email easy. 

The inside of my account is set up with no less than 43 different tags. Each tag tells me something about the people associated with it. I can mix and match those tags and create email that is specially formatted just for the people I’m writing to.

Another reason I love ConvertKit is just how easy it is to create Sequences. Sequences (or courses, autoresponders, or automated email) can be trigger by just about anything that happens in the system. It can set a new subscriber down a Welcome sequence, a new purchaser down an On-boarding sequence, or an old subscriber down a Free Course sequence.

Based on a subscribers activity in one sequence, I can move them on to another.

The possibilities are endless.

I also love the simplicity of the emails I’m sending. My goal is to be your business mentor-from-afar in your inbox a few times a week.

Would your mentor send you a color HTML email? I doubt it. They’d pen something simple, easy-to-read, and personal. ConvertKit makes that really easy.

Email screen shot via ConvertKit

Why You Shouldn’t Switch to ConvertKit

Now, just because I’m into ConvertKit and recommending it to many doesn’t mean that you should switch. Here’s a few reasons why you shouldn’t.

1. You want an all-in-one solution. 

If you want an all-in-one solution that hosts content, takes payments, manages affiliates, etc… you should switch to something like InfusionSoft. Yes, it’s going to be a lot of work. Yes, you’re going to pay a lot for it. But it’s worth it if your business is such that having this type of solution is going to make your life easier and add to your bottom line.

Our main ecommerce tool is WooCommerce and I have an affiliate management plugin that works well with it. While seamlessness is awesome, it’s not always practical and I’m happy with the balance we’ve achieved in terms of integration and customization.

2. You want to send pretty emails. 

There are lots ($$$) of reasons to send plain-text or simple rich-text emails. There are also lots of reasons to send HTML emails. 

If you want to send something with lots of images, a banner/logo, and columns, you’ll need to stick with a provider like MailChimp. It can be done with ConvertKit but I wouldn’t recommend it.

Just keep in mind that lots of email is read on a phone or other mobile device. My emails may not be as “pretty” as they used to be but I know more people who start reading them will read to the bottom. That’s important.

3. You’re not willing to commitment to a tagging strategy. 

When I switched to ConvertKit, I tried to take my email taxonomy (such as it was) from MailChimp and transfer it over. That was a disaster. Luckily, one of my team members is a whiz with logic puzzles like this. She took what I wanted to be able to do with email and what we knew about individual subscribers and created the tagging taxonomy you see above.

Yours doesn’t need to be as complicated but, if you’re not willing to devote energy to figuring out a tagging system and then commit to using it successfully, don’t switch to a provider like ConvertKit.

This might be the biggest hurdle of all. However, you have to ask yourself whether you’re really committed to email marketing if you’re not willing to commit to figuring this piece out.

What’s Next for Your Email Marketing

In the end, whether you switch to Convertkit from MailChimp or Aweber or whether you choose something else entirely, the decision shouldn’t be based on where your business is at now.

You have to look ahead to what you’d like to be able to do with your email marketing, how you’d like to be able to communicate with customers, and how you’d like to prospect for new leads in the future. 

The longer it takes you to switch to the solution that meets more of your needs, the harder that switch will be (trust me, I know!). 

ConvertKit is probably the right choice for you if:

  • You want to be able to send the right messages and offers to the right people.
  • You want to start or accelerate automating your best messages so that sales start happening on their own.
  • You want to on-board new customers easily and with minimal effort.
  • You want to prioritize simplicity and clarity in your communications.
  • You want to use multiple email opt-in incentives to grow your audience and track your progress.

If that sounds like you, click here to give ConvertKit a try.

(That’s my affiliate link–if you’d prefer I didn’t get compensated for providing this information to you, click here for the non-affiliate link.)

 

The Incredibly Valuable Opportunity Gap Between Relationship Marketing & Conversion Marketing

The sweet spot is in the gap between conversion marketing and relationship marketing

In digital commerce businesses, there are essentially two schools of thought. For the purpose of this piece, I will call them Conversion Marketing and Relationship Marketing.

Whether a business is in one or the other school is largely determined by the promise the business owner was sold at the beginning of their digital commerce journey.

In Relationship Marketing, the promise is this: you can create content that people love, causing them to love you in turn, and causing them to buy what you sell as a result. You create relationships with people through your digital persona and that relationship builds enough trust to prompt an eventual sale.

This promise is predominantly being sold to life coaches, health coaches, bloggers, brand strategists, career gurus, lifestyle mentors, and anyone tempted to create a clever entrepreneurial portmanteau for their title. It’s being peddled (at surface level) predominantly by beautiful women and the men who adore them.

In Conversion Marketing, the promise is this: you can create content that people are in need of, causing them to click on an ad or message with that content in it, allowing those people to become aware of a product you are selling, and then converting them to a customer over time. You fill information gaps with knowledge (via experience or research), put it in front of the right people, and so precisely fill the need those people have that a certain percentage of prospects will always buy.

This promise is predominantly being sold to niche information marketers, agencies, business service providers, and SaaS entrepreneurs. It’s being peddled by guys who made their first millions selling ebooks to Scrabble-tile jewelry makers and gun-hoarding survivalists.

The building blocks between the two methods are virtually identical. However, the philosophies behind them and the procedure for exploiting them couldn’t be more different.

I predominantly work with business owners in the Relationship Marketing school. I primarily network with and learn from business owners in the Conversion Marketing school. My own business has been built squarely in the incredibly valuable opportunity gap between the two schools.

When I talk to people steeped in either school of thought and introduce them to the “prevailing wisdom” of either, they’re floored. They often don’t even realize the other school of thought exists. This might seem crazy–but it’s true. 

If you want to generate more revenue, grow your business in line with your personal values, and still put a lot of heart and soul into everything you do, building your business in that opportunity gap is the only way to do it.

WHY RELATIONSHIP MARKETING DOESN’T MEASURE UP

The core problem with Relationship Marketing is not that it lacks strategic rigor (it does), it’s that liking you isn’t a good reason to buy from you. It relies on manipulating the potential customer into thinking that hanging out with you is in their best interest.

If you wouldn’t charge someone to hang out after school with you to try the newest neighborhood ice cream stand, don’t charge someone to hang out with you online to talk about the latest personal development trend. Liking or hanging out with someone is not a value proposition.

Good, well-meaning people fall into this trap. Every time I see a sales page that’s focused on helping you speak your truth or live your best life, I know that trap has been sprung. If I can’t tell how your product aligns with a customers’ true need or goal, the effect (whether intentional or not) is asking people to hang out with you for a price.

Another big problem with trying to be likable so others buy from you is that you end up changing yourself and your choices to appear more aligned with what your perceived audience likes. This does not necessarily mean just making your hair blonder, your waist thinner, or your yoga mat cleaner. It also includes becoming more vulgar (if that’s your schtick—and there are more than a few of those folks out there), becoming geekier, or telling everyone how much you don’t GAF precisely because you really GA a lot of Fs.

You were attracted to this form of marketing so that you could just be yourself and, instead, you find yourself becoming someone else. Of course, “being yourself” isn’t marketing. Being yourself is being yourself—something we should all be able to do regardless of the ROI on who you are.

Finally, likability doesn’t scale. You will get people who will buy from you just because they like you. Often, you’ll get people to buy from you just because you bought from them. But in the end, if you’re not delivering something people actually need, your offers will peter out and you’ll be forced to find new ways to get the same people to pay to hang out with you.

With incredibly few, unreplicable exceptions, if you see someone who has predominantly marketed themselves or their business on their likability factor that has scaled to mass volume, you can bet they’ve put some serious money, strategy, and analysis into that success.

Have you fallen into any of the traps of Relationship Marketing? Here are some things you might have thought over the years that indicate you have:

  • I can’t email my list any more than this because they might not like me and unsubscribe.
  • I don’t want to write good headlines for my blog posts because people will think I’m just like those other guys.
  • Everything I’ve done so far has been really organic, if I try to get strategic now people will probably leave.
  • I shouldn’t need to advertise—people should just be naturally attracted to what I’m creating.
  • I’m not going to use a popup because if people like my content, they’ll find a way to subscribe.

The truth is that there have been times when I have said or thought these things too. However, because I study Conversion Marketing, I know that each of these things is proven—over and over again—to increase ROI, customer satisfaction, long-term growth, brand awareness, and more.

But let’s look at Conversion Marketing more closely.

THE WILD WORLD OF CONVERSION MARKETING

For our purposes, I’m going to define Conversion Marketing—also known as Direct Response Marketing—as the practice of using analysis and metrics to understand a market, create to their specifications, and scale. 

There are a number of problems with pure Conversion Marketing as well. The first is that most people selling to aspiring success stories in this space are selling a formula or proven procedure for results. It can seem like making $10k every night while you’re asleep is just a 5-step process away.

The thing that’s so seductive about these processes is that there is a lot of good information and strategy behind them. You can learn a lot by immersing yourself in one of these formulas. However, the wholesale execution of that same formula will likely not bring about the promised results.

This is because the creators of these formulas discount their own knowledge and understanding of the markets they’re selling to and, also, other people’s formulas. As an example, Ryan Levesque—creator of the Ask system—has made millions of dollars in unusual niches following the survey funnel system he teaches. However, when it came to a mass launch of a digital program based on the marketing system itself, he chose to incorporate Jeff Walker’s video-based Launch system into his campaign.

Now, I’m not saying there’s anything wrong with this. That was a brilliant approach to the campaign. However, I would bet that more people were paying attention to the quiz and funnel parts of the system than to the way he adapted his own process to better fit his needs.

Another problem with Conversion Marketing is that it tends to teach that data can tell the whole story. Your page views, CPC, CPL, conversion rate, survey responses, etc… show you exactly what to do next, if only you know how to correctly interpret and manipulate the information at hand.

Data does tell you a great deal about your next moves, especially (and this is a huge caveat) when it is the right data interpreted the right way.

However, there is a reason that big businesses with giant marketing budgets and access to incredible amounts of data are hiring anthropologists at an increasing rate:

People are data, too.

For every click, for every lead, for every conversion, there’s a person there. They have fears, desires, goals, and a distinct worldview. The best marketers care about those things beyond the numbers. They know that each customer’s unique experience must influence the way data is interpreted. 

Have you fallen into the traps of Conversion Marketing? Here are some indicators:

  • You (or your team) spend more time parsing spreadsheets than talking to customers.
  • Your offers are full of low-hanging fruit.
  • You make decisions about campaigns or products based solely on data.
  • A/B testing is the only way you decide what works.

Measured against customer interviews and research, any of these tactics is a win. But used on their own, the growth of the business is severely limited.

THE (NOT SO) DIRTY LITTLE SECRET OF DIGITAL COMMERCE

As I mentioned earlier, I’ve built my business straddling the divide between these two schools of thought. The dirty little secret of digital commerce is that so has anyone else who’s made good money online doing something they love.

The beautiful women (and the men who adore them) who espouse the benefits of Relationship Marketing are paying close attention to their conversation rates, cost per clicks, paid traffic campaigns, and survey result spreadsheets. The guys selling to the Scrabble-tile jewelry makers and the gun-hoarding survivalists send personal emails to customers and get on the phone for in-depth research.

Don’t believe me?

Note: None of these references are an endorsement or a disavowal. They’re just references.

Derek Halpern talks about how he conducts phone interviews in this episode of Smart Passive Income.

Danielle LaPorte talks about how GTFL (Grow the F*%&ing List) is the top priority of her business (just after self-expression) in this episode of Profit. Power. Pursuit.

Kimra Luna spends massive amounts on ads and talks about it on Rick Mulready’s podcast.

Brian Clark and team give a weekly masterclass on the intersection between the two schools of thought every week on the Digital Entrepreneur podcast.

When you combine the best of Relationship Marketing with the best of Conversion Marketing, you discover an incredible opportunity. You can be human and run your business with smart practices. You can be data-driven and relationship-focused. You can optimize for profit and maximize for loyalty.

Now, there’s not some vast conspiracy here (that I know of—and I think I would have uncovered that by now). What happens is that you get yourself into an information silo as a business owner or aspiring entrepreneur. You only listen to the Marie Forleos and you don’t realize there’s a whole other school of thought; or, you only listen to the Frank Kerns and you don’t realize there’s a group of people doing things entirely differently.

The popular kids in each of these schools of thought, however, are not siloed. They’re networking with each other. They’re finding out what’s really working for who and why. They’re trading best practices and opening up about their standard operating procedures.

This is the real lesson here.

You have to talk to people who do things differently to get better at what you yourself do. Any information silo in your business will hurt your long-term growth and eventually damage what you’ve worked so hard to build.

After reading this post, your first step is to step out of your information silo. You’ll need to introduce yourself to some new ideas and some different ways of thinking. There are resources for this linked below.

Some of these ideas will absolutely challenge you. Your assumptions about what’s important about the way you create content, offers, and relationships may be upended (no matter what school of thought you find yourself in now).

Remember to keep your personal business values front and center. That doesn’t mean that you ignore information that doesn’t make you feel comfortable or validated. It means that you objectively weigh whether what you perceive as a guiding principle of your business is based on what you truly believe or based on what you’re hoping to avoid to stay comfortable and safe.

BUSINESS RESOURCES THAT BRIDGE THE OPPORTUNITY GAP

 

Copyhackers blog with Joanna Wiebe and family
Being Boss podcast with Kathleen Shannon & Emily Thompson
Perpetual Traffic podcast with leaders from Digital Marketer
Startup Chat podcast with Steli and Hiten
Creative Giants podcast with Charlie Gilkey
Social Media Marketing podcast with Michael Stelzner
Of course, I’d like to suggest my podcast, Profit. Power. Pursuit., too.

Beyond breaking out of your information silo, I want to give you a set of challenges to complete so that you can start to position your business in the opportunity gap, too.

1) Choose 3 metrics to start tracking on a daily or weekly basis. Make them metrics that actually indicate the potential for sales (i.e. Facebook Likes are not a good metric but things like email subscribers, sales page views, or ad click through rate might be).

2) Get on the phone with 3 business owners this month who do things differently than you do. Don’t just compare notes with your friends–make friends with someone new. 

3) For at least 1 month, regularly use content from 3 new sources (I find podcasts to be the most helpful for this–but blogs work, too) outside your comfort zone.

4) Talk with at least 3 of your best customers this month to find out how they’re doing right now. Get curious about them–not how your business relates to them–and ask open-ended questions about their situation.

Just like with any opportunity gap, positioning yourself in it takes intentional behavior and new habits. These 4 challenges will help you do just that.

In the end, remember there’s always more to the story. Whether your mentors or favorite bloggers are in the Relationship Marketing school or the Conversion Marketing school, dig a little deeper on everything they say or write. Ask yourself why and how what they’re talking about works. That’s the ultimate marketing hack.