Inside DesignSponge: Interview with Grace Bonney
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For the latest episode of Profit. Power. Pursuit., I sat down with Grace Bonney, founder of the iconic design blog brand DesignSponge.
DesignSponge started in 2004, which means it’s seen the ups, downs, twists, and turns of the lifestyle and design blog industry. Grace has weathered all of these, plus big personal changes, too.
Last year, Grace moved to from Brooklyn to Upstate New York. Brooklyn had been a main character in Grace’s story and a huge influence on her point of view. So I was eager to find out how she had changed her relationship to her company, the site, and the world of blogging.
She said that in the city it was so easy to get caught up in the push to be #1, to land the big deals, and to be on top with page views. Moving upstate has put that all in perspective. The change was noticeable.
While she might not use these exact words, I loved how Grace talked at length about the craft of blogging and the craftsmanship of running a site like DesignSponge—from the way she approaches her team to the way she developed the concept for her forthcoming book.
Grace also shared her thoughts on creatives being paid for their work—something she’s been vocal about for years. Her views are nuanced and evolving and it was a real treat to talk with her about this important topic.
As always, I probed into how DesignSponge generates revenue, how the team is structured, and the role of collaboration in her company. Grace also shared about how her attitude toward “being the boss” has evolved over the last 11 years.
Pay close attention to how Grace balances ambition and the pursuit of what’s important in her personal life. She does it beautifully, and she should be a role model for creative and idea-driven entrepreneurs who don’t want to give up their lives to pursue their dreams.
Click here to listen to my interview with Grace on iTunes.
If you’re loving Profit. Power. Pursuit. be sure to subscribe in your favorite podcast player and leave us a review on iTunes.
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Learn more about Grace’s forthcoming book on women in business here.
Photo of Grace by Christoper Sturman
Inside the Science of People: Interview with Vanessa Van Edwards
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During the 2014 Pioneer Nation conference, I had coffee with my friend and Profit. Power. Pursuit. guest Kari Chapin. Kari started raving about this woman who could read body language, harness the power of color, and up confidence with power posing.
When we got back to the conference, Kari introduced me to Vanessa Van Edwards. Vanessa is an author, behavioral investigator, and self-proclaimed recovering awkward person.
She decided to study human behavior and the art of interpersonal communication because, as a kid, she was stumped by it. As Chase Jarvis would say, she started her business to scratch her own itch.
Vanessa’s natural curiosity and analytical approach make her one heck of an entrepreneur. Instead of avoiding what she doesn’t know, she embraces it. She told me:
“When you get to something you don’t know, it means you’re doing something right.”
In fact, she says that if you’re not finding something that makes you say, “Hmmm… I better Google that!” on a weekly basis, you need to push yourself further.
I know how frustrated you get when you don’t understand something about your business, there’s a problem you don’t have a solution for, or you simply missed an important piece of information. I get frustrated with those things, too!
But Vanessa provides a great counterpoint to this. She said business is like a sport. First, you train. Then you start playing in recreational leagues. Then you play JV, Varsity, and continue to move up the ranks.
Entrepreneurship is the same. You can’t expect to go from training to MVP status. You need to work at improving your skills, problem-solving, and imagination every single day to reach the performance level you want to be at.
On the latest episode of Profit. Power. Pursuit., I spoke with Vanessa Van Edwards about why independent research is so important to her, the unique ways her business generates revenue, and how she uses the science of people to manage and motivate her team.
Click here to listen on iTunes.
If you’re enjoying Profit. Power. Pursuit., please leave us a review on iTunes. That one simple action can help us reach more people on our mission creative business truth-telling.
Check out Vanessa’s CreativeLive classes, Master Your People Skills and The Power of Body Language.
TRANSCRIPT:
Tara: How do you balance the pursuit of art and ideas with the pursuit of profit? That’s the fundamental question we tackle on 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 passion, and pursue greatness.
Today’s guest is my friend and mastermind buddy, Vanessa Van Edwards, an author, a behavioral investigator, and self-proclaimed recovering awkward person. She’s a professional people-watcher, speaking, researching, and cracking the code of interesting human behavior for audiences around the world. Vanessa’s groundbreaking workshops and courses teach individuals how to succeed in business and life by understanding the hidden dynamics of people. Vanessa and I talked about how she approaches figuring out people the way she figures out math problems, the profile she uses to better understand her team and he customers, and the weirdest experiment she’s ever conducted.
Vanessa Van Edwards, welcome to Profit. Power. Pursuit. Thank you so much for joining me.
Vanessa: Thank you. You know, I love alliteration, so this podcast is already off to a good start.
Tara: Yes, we had a very alliterative episode the other day. But I’d love to start off by talking about why you got into studying the science of people to begin with. You shared this at a talk at Pioneer Nation a couple of months ago that I was at, and I would just love for you to share that with our listeners as well, and just tell us why this topic interests you so much.
Vanessa: Sure. So I like to joke that I’m a recovering awkward person, and people skills just did not come very naturally to me. I was the kind of kid who would sit in at recess and beg the teacher to let me like clean the whiteboard so I didn’t have to go out to recess, and that’s … I just didn’t … I didn’t understand conversation nor how people worked. I was constantly confused by friendships, and so, finally, in college, I was arguing with a professor over a group project, and we were having this debate back and forth, and I was like, “I’ll write 20 more pages if I don’t have to work with a group.”
Tara: (Laughing) Oh, my word. Been there, done that.
Vanessa: And he looked … Oh, yeah. Yeah. And he, and I was like, you know, he looked at me, he said, “Vanessa, this paper is not about the writing skills, it’s about the people skills.” And I looked at him, just totally perplexed, and he said, “You know what? Let me give you a couple books.” He knew that I was like very kind of book oriented, that I liked formulas and chemistry and I liked to understand why in black and white, and he’s like, “I want you to study people like it’s a math problem.” And so he gave me, you know, a couple sociology books, an anthropology textbook, a bunch of psychology books, and he’s like, “I want you to study people like they’re a subject, like I’m going to test you on it,” and so I took all the books, and I’m not joking,Tara, this is horrible, but I would make like flashcards for conversation starters, and I would carry them around with me in my purse. I mean, I was like … I studied it. That’s just how I learned, and finally, I realized that actually, focusing on my people skills, my relationships, my communication was far more important than anything else I could have learned in school, and that’s what led me to start the blog.
Tara: Wow. That is … that’s incredible, and I think if anything, you know, it’s … of course, it’s an amazing story, and it’s an amazing genesis to your business, but it’s also like a really good lesson in how you can apply your natural curiosity to whatever it is that you need to learn next, and I think for so many of our listeners, it’s business that they need to learn next, and they don’t necessarily know how to apply what their strengths are, what their natural curiosity is to making strides ahead in their business. Have you approached your business kind of in a similar way?
Vanessa: Yeah, you know, it’s interesting that you say that, because I think that the, you know, for me, it was a total lightbulb when my professor said to me, “Study it like you would study for a math problem or a math test,” and you say, you just said that with business, it’s the same way. I think that a lot of us, we get into business, and you know, for me, I started my blog, started to, I don’t know, even keep the books or you know, hire my first employee, and instead of saying, “Oh, okay, I’m going to go study this like a math problem, like I would have in school,” I’m like, “I should know this.”
Tara: Hmm.
Vanessa: I should just know this, but of course, we don’t know it, and so we almost feel embarrassed having to study something from the starts without school, and that’s exactly what business is. It’s studying something without the structure of school, even though you need to study it like school.
Tara: Yeah, that is such a good point, because I find people get really caught up in that learning curve. Like if there’s a learning curve, then that must not mean that this is the right thing for them. Like come on.
Vanessa: Yeah.
Tara: We’ve been in the middle of learning curves our whole life, and it just so happens that you’re at the beginning of this one, and you just need to push through a little bit harder, and I think, you know, for you, it’s approaching it like a math problem. For me, I think it’s very much like approaching it like the study of religion, right? Like I want to figure out why people believe the things they do and act the way they do, and maybe for some other people, it’s approaching business like a piece of art, and how are you going to build that, build your art to, and also build your business at the same time in the same kind of way, so I love that you’re really talking about this in terms of what your natural strengths and your natural way of following your curiosity is.
Vanessa: And also, it’s you’re okay to now know. Right?
Tara: Mm-hmm.
Vanessa: Like, it’s … there’s going to be different points, and I had these all the time, constantly, still have them. Had, there’s nothing past tense. I have these all the time where I’m like I literally don’t know what I’m doing, and that is okay. For a long time, I beat myself up over that. Like the idea of being a newbie or not knowing actually made me feel ashamed. Like I was a bad business owner, or that I was behind everyone else, when if you … when you get something that you don’t know, it means you’re doing something right.
Tara: Mm, that is a great takeaway. Yes.
Vanessa: Like that means you’re challenging yourself. That means you’re trying something different. That means you’re growing. So if you don’t have something on a weekly, I’ll say weekly basis, where you’re like, “Hmm, I better Google that, I better call someone, or I better listen to a podcast on this,” that means you are doing something right.
Tara: Yes. Abso-fricking-lutely. You know, and I think that we forget that, you know, the entrepreneurs in Silicon Valley who are, you know, who have business that are valued in the billions of dollars are doing exactly the same thing. They’re running up against things that they don’t know, either, and they’re figuring those things out, and that kind of, to me, that brings me to what’s become a common thing on this podcast, which is the imposter complex, and sort of that inner critic voice, and I think that what often separates a business owner that stays kind of stuck or stays in that cycle of fear around what they don’t know versus someone who finds success kind of figuring things out as they go is their ability to reprogram their imposter complex or face their inner critic in some way. How do you do that on a daily basis?
Vanessa: Whoo, that’s so hard. I think that there was a mentality that I was introduced to a few years ago, and ever since then, it’s been a lot easier to deal with my inner imposter syndrome, and it was that your business is like a sport. Right? Like you’re playing a sport, and I am not a sports person, so like my sports analogies go really shallow, but I think you can probably follow me on this. So basically, but like you’re playing a sport, right? And at the very beginning, just like in a sport, you’re in training, and then when you start to get good, you start to hit your stride, you get on the JV team, and you’re playing JV, and slowly, like, you get to be a starter, you get to be a good player. Maybe eventually, you’re MVP, you’re the top of your JV game, and then you make the next leap to varsity, and I think that when I started to realize that like that is exactly how it goes, like you cannot jump from like pre-training all the way to varsity MVP, so when I get to a place where I’m like, “Wow, I’m really sucky at this, like this is not going well.” I open up a newsletter to see my analytics on my open rates and my click rates, and I’m like whoo, those are a lot of archives, right? Like, I did not like my open rate on that email. I’m like all right, like I am still playing JV on this. I do not understand email marketing as well as I could, and I know that that’s part of JV. I know I’m not varsity on it, yet, and so it’s almost like accepting the level that you’re at that helps me not get so angry at myself that I’m not playing varsity MVP.
Tara: Hmm, I like that. So your training and the articles that you share on your site are a great mix of research that’s done by others and research that you’ve done yourself, which I think could, might be kind of scary for people. The idea that, you know, we’re curating so much content and we’re sharing so many other people’s findings, but we don’t see a ton of people generating research or analysis for themselves. Why is it important to you to do your own research to contribute something new to the conversation?
Vanessa: Yeah. Can I tell you something really geeky?
Tara: Yeah.
Vanessa: Okay, so I think it’s really important to, at the very beginning, not do your own research, unless you are brave enough to do that. I was not. So in the very beginning, this is so geeky, I did not know my own voice. I did not know how to write sounding like myself, I did not know how to speak sounding like myself, so what I would do is I would memorize TED talks. Like TED talks are about 18 minutes, so I would memorize them, like down to the word, down to the hand gesture, down to how they move their body on stage, and then I would film myself regiving their TED talk in exactly the same way, manner, and style, and I wouldn’t post it anywhere, but I would do it to see if it felt like me or not.
Tara: Wow.
Vanessa: Which is like a crazy, crazy thing. That’s just how I learn, and I would watch myself giving a talk. Like Simon Sinek, you know, and his exact mannerisms, the exact way he holds his hands, the exact way he wrote on the board, and that’s how I figured out what felt good to me, so there was talks that I would do and be like, “Oh, man, this is great, but it doesn’t feel like me.” Or there was like a small section of a talk, maybe the first, you know, the middle seven minutes of Brene Brown’s talk, where I was like, “We’re getting close,” and I would look at what those were, and I would very, very slowly, I started to figure out what felt really good so I could have my own voice, and so I think that I want to honor the people who’ve done research before me, but doing my own original research, now I have a lab, is finally about finding my voice, and that’s why I think it’s so important for people to, yeah, definitely, curate the best content, quote other people, use other people’s photos, but eventually, know that you’re going to take your own photos and you’re going to make your own quotes and you’re going to write your own articles, and for me, that’s like a graduation. Like that feels like a huge success after many, many years of watching the greats and feeling like maybe, maybe I could try to make something myself, and that’s why I like to do our own lab experiments.
Tara: Nice. So can you tell me how you go about setting up experiments? How do you decide what you’re going to test next?
Vanessa: Yeah, so I love puzzles. I love looking at things that I can’t quite figure out or things that don’t make sense. Like I feel like when I’m eating at a restaurant or my poor friends, when they sit out to dinner with me, I’m always kind of trying to think of puzzles, and I usually will set up experiments based on those puzzles. So for example, I watch TED talks every day at lunch, speaking of TED talks, and I was sitting there one day searching on the TED website, and I was searching for leadership. So I typed in leadership in the little search bar on TED.com, and up popped two talks. Both from the same month of the same year, September 2009, with almost the same title. And I looked at these two talks, and I’m like, “What’s the difference?” One of them had over 20 million views, and one of them had less than 40,000. And these were talks that came out in the same time, same topic, I watched both of them, they were both awesome, and they were both by people who were not famous before their TED talks. So one was Simon Sinek’s, and the other one was another really well-known author, but still same kind of level as Simon was when he first put out his TED talk, and I was like why? Why is it that one of these talks went viral when they’re both great, and one didn’t? That was the very kernel of one of the first big experiments we ran where we coded thousands of hours of TED talks looking for patterns, and we found that there were five different patterns between the top TED talks and the bottom TED talks, and that’s exactly how we were able to do our first research experiment.
Tara: Wow. Can you share?
Vanessa: Yeah. Sure. Yeah.
Tara: What those results were?
Vanessa: Yeah, yeah, yeah. They’re shockingly easy. They’re so predictable that we can watch the first seven seconds of a TED talk and tell you if that talk is most likely to go viral or not. That’s how specific they are.
Tara: That’s incredible.
Vanessa: Yeah, so you know … you know … Something in your body … Like if you watched a lot of TED talks, you … in the first seven seconds, you get this feeling like, “Ooof, this is going to be a good one,” and one of those things is the top TED talkers use an average of 465 hand gestures in 18 minutes. That’s a lot of hand gestures. That’s a lot of hand gestures. And we painstakingly, my poor researchers, I love them, I love you guys if you’re listening, they painstakingly counted every single hand gesture in all these talks. The bottom TED talks, the least popular TED talks have an average of 272 hand gestures in 18 minutes, so that’s almost half. That is because our hands are our intention and our explanation, so when we have hand gestures moving along with our words, our retention goes up, entertainment goes up, our excitement goes up, our trust goes up. So that’s a super easy simple thing, but just having hand gestures or explanatory hand gestures helps with, you know, the virality of your videos.
So that’s one. Smiling was one. Certain kinds of smiling. Vocal charisma. Your first impression, so your first 4 to 7 seconds, and your non-verbal. Those were the biggest markers of the most popular TED talks.
Tara: Fascinating. I love what you do.
Vanessa: It’s easy.
Tara: Yeah. Can you tell me about the weirdest experiment you’ve ever conducted in your business?
Vanessa: Yeah, I can. So I had this idea, it’s so dumb. Okay, I had this idea that people’s smell, like the way people smell, really, more than we think, affects how people are attracted to you or not, and I figured this out. This is very weird, but when I’m on a trail, I hike six days a week in Portland, I live right on the forest in Portland, and I noticed that I would be like hiking and someone would run by me or I’d run by them, and like, you’d like smell like a giant whiff of their like kind of testosterone pheremony cloud, and sometimes, I was like, “Ugh, horrible, get deodorant,” and other times, I was like, “Mmm,” ridiculous. And I was like, “I wonder what it means.” And I thought to myself, you know, I did some research online, I always do research on Google Scholar just to start off our experiments to see what existing research is out there, and I found some existing studies that said that men always prefer the smell of food, always. And so I’m like, well, if I rub myself with like different kinds of food, will that make people like me more? And so I decided to do exactly that. This is just me, I did not make any of my researchers do this, although I’m sure that they would be down. They’re adventurous.
So I did. I took three different kinds of things. I did popcorn, popped popcorn. So I took the inside of a bag of popcorn, and I rubbed it on my, nothing weird, on my wrists, the inner parts of my wrists and my neck. Like your pulse points where you put perfume. And then I did just regular perfume, then I did cookie do, because what guy doesn’t like cookie dough? And then I did something like I think mint, like mint leaves. Yeah. And you know what? I know this is crazy, but man did those guys like the popcorn one.
Tara: Well, since my man loves popcorn, that does not surprise me in the least.
Vanessa: I cannot even tell you, and I did this a couple different times. It was very anecdotal. Like I took notes of how many people approached me, how many people mentioned it. When I was wearing that popcorn scent, guys were like, “Wow, wow…” This … They didn’t know it was me. So they did not know it was me, right. They didn’t assume that that smell came from me, but they were like, “Wow, it smells so good.” And I’d be like, “Oh, I think it’s my perfume.” Like I would say, “I think it’s my perfume,” and I’d give them my wrist, and they’d be like, “Man, what is that,” and I’m like, “Oh, it’s a new scent I’m working on.” So it got so many comments.
Now, I don’t still wear popcorn when I go out usually, unless I really have nothing else to wear, but that’s one of the weirdest experiments I’ve ever done.
Tara: Thank you so much for sharing that with us. Elizabeth and I are practically in tears.
Vanessa: Do you want me to share a more helpful one? Because that’s not very helpful, but that’s …
Tara: Sure.
Vanessa: That’s … Like the TED talk one is probably the most … The most useful one, but you know what, if you ever want to try out different scents, I highly recommend it, because scent is an under looked aspect of the brand experience, and I will also tell you that I have tried out different scents in waiting rooms and in my car, and that also affects buying behavior, so think very carefully. If you have a waiting room or if you have a gallery or if you are … think very carefully about the scents that you have.
Tara: Fascinating. Actually, I was going to ask next if you could tell me about some research or an experiment that you’ve done that then you’ve applied to your online presence in some way. Your social media, your website, your branding, anything like that.
Vanessa: Yeah, there’s a lot of them, so one of them we did was on pictures. So you know, because I have such a strong digital presence, I know that, you know, my pictures … My pictures are often my digital first impression, and I know that first impressions are incredibly important, so everything from my LinkedIn picture to the headshot on my website to my Facebook picture to things that are on my brochures or on my emails, like my little Gmail avatar, I know that those are really important. So we ran an experiment where we looked at the difference between popular faces and least popular faces, and we found that, you can actually, we still have this one up if you want to play in our lab. If you go on, and we … I won’t tell you which ones they are, but if you … We had people go into our lab, and we had three different women and three different men. One of the women had 100 followers on Twitter, one of the women had 1000 followers on Twitter, and one of the women had 10,000 followers on Twitter, and same with the men, and we mixed them up, and we asked people, “Who’s the most popular?” Now remember, they have no … Nothing but their picture. No handle, no nothing. And the majority of the time, over 70% of the time, people are accurately able to pick the most popular person.
Tara: Wow.
Vanessa: And we specifically picked people who were the same level of attractiveness. So they ranked on the same, they were all … I don’t want to say what they were, because I don’t want to offend anyone if they’re listening, but they were all the same number. They got the same attractiveness rating. So it’s not about attractiveness, and we realized there was very specific patterns of profile pictures where people think of that person as likable, as trustworthy, and so we used all of those rules in all of our pictures.
Tara: Fascinating. I’m going to totally go check that out when we’re done with this.
Vanessa: Yes.
Tara: All right. Let’s shift gears to money now, because Profit is an important part of our equation here. Can you tell me just what are all the different ways that your business is currently generating revenue?
Vanessa: Sure. So we have business side of our business and a consumer side of our business, so on the business side, we do corporate consulting, so I go out and do corporate trainings and workshops. Then we also do, I do spokesperson work. So I’ll go on like a … I’m the spokesperson for Dove right now. I was … I’ve been working … I’ve worked for American Express, Clean&Clear, where we do like media tours for them, and then we also … I have group of about 52 trainers who do consulting for us. So I’ve licensed them to teach my materials. We book them in Germany. We have them in about twelve different countries. I book them, we get a request in Germany, I send them out in Germany, and we get a rev share on their payment, so that’s the business, the corporate side of the business. And then the consumer side is we have online courses and books. That’s the only way that we generate income from our consumer side business. We don’t do online advertising. We found that was a very ineffective way of generating income, so yeah, just books and courses. And we also don’t do consulting and coaching for consumers.
Tara: Awesome. So a lot of the things that you’ve talked about so far in terms of doing your own research sound really expensive to me, so how do you balance creating profit with reinvesting in your business?
Vanessa: Yeah, you know, we’ve actually found pretty easy ways, surprisingly inexpensive ways to do the research. First of all, we have a huge database of people, right, so we’re able to use, leverage the power of numbers. We’re able to set up very basic experiments. Like I think that we, yeah, we use a service called [Pro Profs] which is like a survey, kind of like a Survey Monkey kind of a thing. They do bigger quizzes and things, so that’s $30 a month.
Tara: Oh, wow.
Vanessa: So we set up one, yeah, real cheap, we set up one quiz on there and we send it out to $60,000 people. That’s a pretty cheap way to do an experiment.
Tara: Yeah.
Vanessa: Really easy. And then of course, you know, our InfusionSoft monthly, but actually, you can absolutely do your research in very inexpensive MVP kind of ways. Minimum Viable Product kind of ways.
Tara: So then what kind of things are you kind of investing in for your business right now?
Vanessa: Yeah, so for so long, let’s see, I started my business eight years ago. It was like so bootstrapped that there was no idea of reinvesting. The only thing I could put in my business was time. Sweat equity. And then about three or four years ago, we started to realize, okay, like we have some money to play with. So that’s when I first started bringing on new team members. Bringing on, like hiring, like getting softwares that worked for us, so we just switched from a smaller email provider. We were using Aweber, and now we’re using Infusionsoft. Trying to do a little bit more advertising. We don’t do a ton, but experimenting on Facebook advertising. And the biggest thing is, the biggest investment is building the team.
Tara: Mmhmm.
Vanessa: Is trying to get the right people to help me in the right areas, because the biggest thing that I’ve learned is that just because I can doesn’t mean I should.
Tara: Yes, absolutely.
Vanessa: So, yeah, like if I’m not good at it, I should not be doing it. I should be hiring someone who’s really, really good at it, and trying to find teammates who are … Specialize in things that I’m not good at. So for example, one of my teammates, Danielle, she is extremely good at visual things. She’s really good at like making images with headlines. She’s great at making pdfs, and so instead of me even trying, now I just send her Word documents, and I’m like, “Can you just make this a beautiful PDF?” We call it do magic on or do post magic on it, and so she’ll go crazy, and she loves it, right? So for her, not only is she better at it, but it’s actually fun for her. So the biggest reinvesting is paying for people’s hours and talents in areas that I don’t have those talents.
Tara: Nice. So can you detail for us what your team looks like right now?
Vanessa: Yeah, sure. So we … So Danielle and Hailey are my longest teammates, and Danielle does, she runs our blog, she helps me with the corporate side of our business, with our trainer program, so as I mentioned, we have 52 trainers. She helps teach them, manage them, get them work. And then Hailey does all of our social media and community management, so she is … mans my Twitter, mans my Facebook, helps with Buffer posts. We have a big, robust set of forums on our website beyond just the comments, so she goes and she responds in forums, makes sure everyone’s good, posts helpful links, answers all of our support, she does a lot of our support messages that come in. We get a couple hundred emails a day, so she helps with all that. And then the rest of our team help with the research. So Jose, Robbie, and one of our interns, Adam, they all help with my research, so right now, we’re working on a couple really fun experiments. One is … Well, I won’t even give it away, yet. We’re working on some really cool experiments right now, and so they help me code and pull all that data together.
Tara: Nice. And what kind of Science of People mojo knowledge do you use in motivating and managing your team members?
Vanessa: I wish … I wish I had a really good answer to this, because I should. You know, because I should. I think the hardest part about managing a team … Well, first, it’s giving away control, right? Like knowing that … And that was the scariest part about bringing on a team member is worrying that, you know, you’re … you’re not … it’s not going to be authentic if it doesn’t sound like you or if it’s not you doing it, or truly trusting someone with your baby, and your business in a weird way it is your baby. Even every blog post is kind of like a baby, right?
Tara: Oh, yeah.
Vanessa: And I especially found in the beginning when I was first starting my writing, I was very boring. I sounded like everyone else. Especially sciency, and it was extremely dry and black and white, and I realized that I was bored reading my own posts, and so I realized that I had to start adding my own voice to it, and I had to start knowing that I wasn’t going to please everyone. I think it’s the same thing with managing a team is not everyone is going to like the same things you are. Not everyone is going to respond or communicate the same way you are, and so I try to apply what I call the Platinum Rule. So you know the Golden Rule?
Tara: Mm-hmm.
Vanessa: Everyone, you know, treat others the way you would like to be treated. I like the Golden Rule, I don’t love the Golden Rule. I much prefer the Platinum Rule when it comes to team members, and the Platinum Rule says treat others as they would treat themselves. So I think that it’s really exciting to look at each of my team member’s personalities, strengths, talents. I think I’ve had them test themselves on it. I know all their top five personality traits, and we can talk about that if you want. Their intelligences, their talents, and I try to only give them things that I know that will come naturally to them and they will really like.
Tara: Yeah.
Vanessa: And that way, I’m treating them as they would like to be treated, not as I would like to treat them or as I would like to be treated.
Tara: Yeah, and it sounds like that’s a really, really good way for you to then weave the team together, even if they’re virtual, or even if, you know, they’re working on really disparate projects, they really feel like you’ve got their best interest in mind.
Vanessa: Yeah, so the … What’s cool about sort of communication and being virtual, as you just mentioned, is so the five personality traits, very basically, are openness, conscientiousness, extroversion, agreeableness, and neuroticism. And so those all dictate how someone wants to be spoken to, how much they want to be tapped into. For example, conscientiousness, that’s people who are high in conscientiousness love to do lists, routines, they love color coding, they love alphabetizing. If I say those words and that kind of turns you on a little bit, that means you’re high conscientious. Low conscientious, you like flexibility, you like creativity, you like big ideas, broad strokes. You like thinking really big. And so what happens is if you have someone who is high conscientious on your team, and they email a team member a big schedule and to do list, they love, they spent hours putting it together, and they send it over and they’re like, “Hey, here’s the content calendar for the next four weeks, I’ve color coded it based on topic and I’ve outlined each social media channel in columns G, H, and I.” A high conscientious person would love that. Would love getting it and would love sending it. Whereas a low conscientious person gets that and feels like they’re being boxed in. They feel like they’re being told what to do. They have no flexibility, no creativity, and their work happiness drops tremendously.
So that in itself, knowing that some of my teammates really like big ideas, they don’t like long, bulleted lists, versus my teammates who love to chat on the phone versus you know, it’s really important to know what your team, what your spouse, what your colleagues, what your customers personality traits are so you can match them, and I do the same exact thing, by the way, with my customers.
Tara: Mmm. Okay, so I want to talk about that in just a second, but I just have to tell you Elizabeth was so excited about the color coded content calendar, and I, as a very low conscientiousness person, apparently, was like, “No, you can keep that to yourself, thank you.” Which my team members know to do. They make the charts, and then they post them so that technically, I could look at them if I wanted to, but they know that I don’t.
Vanessa: So that is perfect, right? Like the two of you in this room, like you can get along so well with someone who’s the opposite personality style, and that’s okay, it just means you have to approach each other differently, and I want us to accept those differences, as opposed to begrudge our colleagues for those differences.
Tara: Yes, absolutely, and I think you know I’m a huge fan of the Fascination Advantage system, and that’s what we use in my business to kind of … at least to better understand where people are coming from and how they can contribute value to the team, and it’s the same thing. I look for people who do not have the same profile as me, although, interestingly, my now sort of second-in-command person has a twin archetype to mine, but what that does is allow her to really kind of step in for me, which is great, because then I don’t have to make all the decisions.
But enough about me. I want to hear one what is this, what’s the test that you’re using, because I love these things, and two, how are you doing this with your customers?
Vanessa: Yeah, sure. So we actually have it for free on our website. It’s called The Big Five. It’s a 44 question, really fast kind of inventory, and we say it will take you no time at all if you’re not lying to yourself, because you know, because sometimes, what we wish we were is not what we actually are. Like I will say, without any judgement of myself, this has taken me a long time to be able to say it, I am a high neurotic, and that’s okay. And so what … Sometimes what you wish you are, you aren’t always, and that’s okay, so it’s, if you go to ScienceofPeople.com/Personality, it’s a free quiz on there, and what I do, and I really highly recommend you do this, and I can walk through what it’s like for my business is I sat down with this personality test, I did it for myself, and then I actually had my husband and my best friend take it as me.
Tara: Mmm.
Vanessa: To check myself, and that was, by the way, like a total mind … I can’t use that word, mind blowup …
Tara: You wouldn’t be the first person.
Vanessa: Okay, well, I didn’t … I didn’t say it. I was a total mind blowup, because it checks you, right? Like you do what you are, and then my husband and my best friend did it as me, and it’s how they see me, so it was fascinating just that in itself, and I went, “Wow, there’s something really to this.” And so I sat down with my ideal avatar, like my ideal customer, and I have a very specific ideal client, and they’re typically most of our readers. Very high, above-average intelligence, professional go-getters, very successful, very professional. Always demand more of themselves. Typically, are overworked and overwhelmed because they take on too much, and so I knew this person. I was like, “I wonder what this person’s personality traits are,” and so I actually asked a couple of my like best readers to take this test, and sure enough, they were very similar. So high, high open. So openness is how much you like new experiences. So they love, like trying new things, going on big vacations, they have long bucket lists. They have tons of new restaurants, they love going to different places. So I know that they’re high open. So I will write blog posts always challenging and tickling that high open part of their personality. Almost always, I end with a challenge. Whereas if you had a low open ideal avatar, so they love habit, routine, ritual, tradition, you’d be much more likely to try to honor their own habits and traditions, to help them set up their little rituals and their morning habits. That would be much more effective for them, whereas I almost never talk about habit, ritual, and routine on my blog.
Second is I know that most of them are very high conscientious. They love lists, they love having steps, and so you’ll notice that almost all my posts have a one through five, one through ten, checklists, steps, bullets, pdf download checklist, because that’s a … I know that that’s what gets them going in a similar way to me. If you have a low open kind of readership, so much more creative, much more imaginative, you would not want to give them steps and to-do lists. You’d want to give them visualizations. So broad sort of visual graphics of your ideas. Inspirational quotes, photos that demonstrate your concepts. That would much more resonate with a low open reader.
Then I go through the other, I can go through the other three if you want. Do you want me to go through those?
Tara: Sure, yeah, please.
Vanessa: Okay. So and then extraversion. This is how you orient to people. So I know that my readers typically are ambiverts, so they can turn on or off their extraversion. A lot of them need their alone time to recharge and refuel, but if they’re in the right situation, the right, around the right people, they are, they fly. They’re themselves, and so I will typically write posts that speak to that exact thing, where I encourage my readers to always take recharge and refuel time, and say no to the events that aren’t perfect for them, and only say yes to the things that work for them. I’m constantly talking about getting … banning toxic and difficult people from their lives, because ambiverts always say yes to people, just because they think they should, and say yes to things because they feel guilty, and I’m constantly challenging them to, giving them permission to not to that. So if you have an introvert, you’re going to be talking about much more solo activities, journaling, reading, meditating, mindfulness, painting, creating. If you have a lot of extrovert readers, you’re going to be talking about conferences, networking, concerts, meeting with new people. They’re going to orient more towards those kinds of activities.
The last two, neuroticism. So neuroticism is how someone goes to worry. So I am a high neurotic, which means I worry a lot. We tend to think about the worst possible thing that could happen, and then prevent or try to prevent that from happening. We actually have a greater response to negative events. So high neurotics like to know every eventuality. If you’re ever selling a product, you must have 30-day guarantees, you must have lots of social proof, you have to be able to have a really, really good support mechanism, so they can hear from you right away, and a lot of transparency. Whereas low neurotics have much more faith in the system, they have much more trust, they kind of go with the flow, they’re like, “No problem, I’ll see what happens.” They kind of like the mystery, right, so that’s like, “Do you trust me? Click the buy button.” A high neurotic would never click that button. We would archive it and spam that message being like, “Pssh, no way, that person is crazy.” So that’s a very different kind of buying process.
And the last one is agreeableness, and this is how cooperative you are, how much you like working in a team, how easy going you are, and so that one, luckily, whether you are high or low in terms of products and getting along, that’s going to be about if you’re going to have support forums or not. So typically, high agreeable people, they love to comment, they love support forums, they love Facebook groups, they message you a lot. Whereas low agreeable people, you never hear from them. They read avidly. They open all your emails. They click, but they do not like to talk to you. So it’s a very … You know, building your products around your ideal person makes them feel like they are at home with you.
Tara: Mmm, well, I love that, because I just totally like profiled my customer in my head.
Vanessa: Awesome.
Tara: Yeah, which … with … which this is also something that we do as well, because I have all of my clients take the Fascination Advantage test, so that I can do the exact same thing, but with that system instead of this system, but I like having lots of systems, and so I’m looking forward to figuring that all out for myself, but yeah, I just did a quick rundown in my head as you were going along, and I’m really excited about it.
Vanessa: And I,Tara, I can send you, or whoever wants it, I can send you the raw code for the test if you want to embed it in your site, too.
Tara: Oh, cool. Yeah, sweet. Yeah, that would be awesome. So your business, the way you talk about it, the team that you have, the way you pump out content, is extremely mature by a lot of … I think by a lot of entrepreneur’s standards, and I’m wondering if you had this vision for your business when you started off 8 or 9 years ago, I forget what you said, or if this is something, a vision for your business that’s kind of evolved over time.
Vanessa: I actually did have this vision. I know what … what my 30 year vision is, and the reason for that is because my mom took … my mom is a lawyer, and so is my dad, actually. They’re both … they’re both lawyers in Los Angeles, and my mom said to me, at a very young age, she said, “I do not want you to have to work for your hours.” She’s like, “When I was younger, being a lawyer was the absolute thing.” Right? You were a doctor, you were a lawyer. Those were like her two options in my family. Same with my dad. They actually dated in high school. And so they were like, “Lawyer is it.” And she said, “I am chained to my desk. I have to …” Even though she runs her own firm, she has to, you know, count her hours. She’s like, “I only have so many hours in the day.” She’s like, “I don’t want that for you.”
And so when I was 18, she took me to a seminar, it was a Millionaire Mind seminar by T Harv Becker, and it was the first time I had ever been giving any kind of financial education, and in that seminar, I learned something that totally changed my life, which was the idea of passive income. And I had never heard this term before at that time, and this was … This was in, how old am I, I’m 32, this was 12 years ago. So this was a long, this was, you know, way before blogging was even really a thing, and he explained the idea of setting up a business where you were not chained to your hours, where you have passive income generating, and you’re helping people. And so when I was 18, I was a freshman in college, I was like, “That’s what I’m going to do.” And I was like that means, he had it all up on a little white board up there. I have pictures of it still in my computer of the 6 different things you need to be able to have a passive income business, and I went, I set off, all through college, I started my business my senior year of college, checking off each and every one of those things, and I think I’m at five, I have one more to go, and so I did have a very specific idea of what I wanted and where I want it to go, which is kind of crazy.
Tara: Hmm, I love that though. Yeah, I love that. Thank you for sharing that. I wish I would have gone to that seminar, too.
Vanessa: I know. ButTara, butTara, now, we get to talk all the time, and we’re in the seminar together.
Tara: Well, yes, yes. I mean, I’m not bemoaning where I am in life, but I just … yes. It took me awhile to get introduced to these concepts. So I think kind of as we start to wrap up, one of the questions that I’ve been asking just about everyone we’ve had on the podcast is how do you balance the role of artist and executive in your business, and I think for you, it’s probably a little bit different. The question is probably more how do you balance the role of scientist and executive in your business. So what does that look like for you?
Vanessa: Mmhmm. I, it’s true you have to balance them. They are different, and I do think scientist, artist, creative is actually they all do fall into sort of the same bucket.
Tara: Mmhmm.
Vanessa: Whereas like business executive, CEO falls into the same bucket, marketer, same bucket, and they have to be separate. I found that you actually cannot really combine them. They are two different sides of your brain, they’re two different sides of your soul and your heart. What I do is I have a not to do list system. So I have, of course, a to do list, but I found that my to do list actually didn’t work for me the way I needed it to. I needed a not to do list. So I split up my days so that on certain days, I am only doing scientist, creative, imaginatary artist, bucket things. And on that day, I have my to do list for all those things, and I have a not to do list. Which means I’m not allowed to check email. I’m not allowed to do any marketing. I’m not allowed to check social media. I’m not allowed to do any podcasts. I’m not allowed to do any study reading on those days.
Whereas on my business days, I put on my business hat, and I have a to do list for that. On that day, I am not allowed to do any … Any sort of creative endeavors, because they tend to get tainted, and so on my not to do list are things like dreamstorming, outlining experiments, looking over data, creating blog post outlines, visualization charts, none of that. So that, I actually literally have to separate it out like that, and I highly encourage people to split their tasks up into themes of where is your brain when you’re doing each task. So if you sit down and think about, “Where is my brain? What is my feeling when I sit down to do Facebook?” Is that the same as when you sit down to do email? Is it the same as when you cold pitch clients? Or is it different? Because sometimes, your customer service hat is even different that your marketing hat, and so I think that thinking about your to do list in terms of framework or mindset actually helps you do it in your best possible way.
Tara: Hmm. What are you pursuing next?
Vanessa: So I am working on my next book, which is very exciting. It’s going to be a very, very research heavy book, so we have 14 different experiments in the pipeline we’re going to be starting in the next … We’ve started six this month, we’re going to be doing another five next month, and probably another four or five in January, which means a lot more work for my researchers, and all of those experiments will go, it’ll be original research going into the book.
Tara: That’s incredible.
Vanessa: Yeah, I’m excited. All the puzzles. We finally got funding for it. All the puzzles I’ve been waiting to solve, we are actually doing it. We’re doing it right now.
Tara: That’s fantastic, and that’s a great place to leave off for today. Vanessa Van Edwards, thank you so much for joining me.
Vanessa: Thanks so much for having me.
Tara: Vanessa can teach you to master the science of interpersonal intelligence in her CreativeLive class, Master Your People Skills, which you can find at CreativeLive.com/Business. On the next episode, we’ll talk with Grace Bonnie, founder of Design Sponge, to talk about how she makes money from her blog and her belief that paying creative people fairly is vital.
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.
What Comes After Hitting 1 Million Subscribers? Interview with Amanda Steinberg
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With an audience of over 1 million subscribers and the ear of major financial institutions, my next guest for Profit. Power. Pursuit., Amanda Steinberg, might seem to have it all. But her financial education company, DailyWorth, has continued to evolve and explore new opportunities, like the newly launched WorthFM.
WorthFM is a digital investing platform targeted to women. The face of financial management is changing. While women have long been the checkbook balancers and monthly budget keepers, men have continued to manage big picture financial decisions like investing, retirement planning, and asset management.
With WorthFM, Amanda aims to help women achieve greater autonomy when it comes to their nest eggs.
Why? It’s a road Amanda has been down herself.
When she originally started DailyWorth, it was because she had a realization about just how much she didn’t know about money, its role in our lives, and how to protect herself for the future. Amanda changed her own money story (she always thought of herself as a spender, not a saver) and then set about learning everything she could about how to put her money to work for her.
Of course, there’s a lot to learn about money and financial management. Amanda suggests you start with a goal of clarity.
You can’t make good decisions or even apply what you learn until you have financial clarity about how much money is coming in and just how that money is going out.
This is an important episode of Profit. Power. Pursuit. because, as business owners, we can put so much emphasis on earning more while ignoring the imperative to be good stewards of our wealth. Good financial habits should be a trait of all entrepreneurs, not just the frugal or the super wealthy.
Of course, I didn’t just talk to Amanda about managing money. I also talked to her about how she grew her business and how she manages it today.
Amanda spoke about her personal money story, the opportunities in the financial management market, why she’s chosen to partner on this new venture, the role of mentorship and teamwork in her success, and the unconventional financial advice book she’s writing.
Click here to listen to the interview on iTunes.
Click here to take the MoneyType quiz Amanda mentions in the episode.
TRANSCRIPT:
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 Amanda Steinberg, founder and CEO of DailyWorth and WorthFM. DailyWorth is the leading financial media company for women, and Amanda is a pioneer on the topic of women and money, working to advance women’s financial confidence and wealth. Her new venture, WorthFM, is an investment platform that will launch in 2016. I spoke with Amanda about how traditional investment media is primarily geared to men, and how DailyWorth is helping empower women to take control of their big picture finances. We also discuss how to set your priorities for money, unconventional financial choices, and how mastering savings is the most important thing you can do.
Amanda Steinberg, welcome to Profit. Power. Pursuit. Thanks so much for joining me.
Amanda: Thanks so much for being here, having me here.
Tara: Yeah, absolutely. So you are passionately pursuing financial education and empowerment for women. It’s kind of your bag. Why do you think women need different education about money than what already exists?
Amanda: You know, I started the company seven years ago because, you know, even though I was raised by a single mom and I was really taught from such a young age to be financially independent, I realized that when I turned 30, I’d gotten really good at earning money, but I had no idea what to do with money after it came in, and therefore was having a very difficult time saving and investing it. So it wasn’t necessarily that I thought women needed specific advice, it was that when I went out to all of the big resources on the internet, like Yahoo Finance and Market Watch and Money Magazine and stuff like that, they were all… I knew enough working in the digital space that how to look up the details of who reads them, and I noticed that it as like 90% men, and I just thought that that was really weird, you know? It was like why would financial advice be only appealing to or attracting men. And so it was less that I thought women needed special advice, as that I knew that women weren’t reading what was out there right now, so it just gave me a sense that women weren’t even getting this information, and it needed to be packaged differently.
Tara: Why do you think women weren’t reading what was available?
Amanda: Well, I think that when it comes to financial advice on the internet, you know, anything on the internet, in order to sustain itself, definitely when it’s a company, has to sell advertising, and so if you look at the financial advice you should follow, it’s actually really boring, and therefore, financial media, rather than publishing financial advice that is about, you know, prudence and increasing your earnings, and buying and holding investments for the long-term, you know, they kind of do the opposite. They talk a lot about tradings and markets and where kind of all the lines go up and down, and I know in particular, women, at least this day and age, aren’t really interested in being traders or being active investors. You know, we’re more interested in kind of the comprehensive life picture and how money fits into that and how to think about money. So I think that women … I think just the way financial advice had been delivered online before we came along just didn’t resonate with how women thought about money, which is much more in the context of their life, not about kind of what stocks do you buy and sell.
Tara: Mmm, I like this idea of the comprehensive life picture and using … and women kind of using that as their focal point for financial planning. Can you tell me about your comprehensive life picture? What is that you are wanting to create in your life that’s directing your financial decisions right now?
Amanda: Well, it’s funny you should ask, because at DailyWorth, we just launched something called, “What’s Your Money Type?” and you can go to either DailyWorth.com and click on the banner, or you can go to MoneyType.me is the URL, and when you answer this assessment, it tells you what motivates you about money, what your unique personality contributes to as far as your strengths with money, your fears about money. It’s just like a Myers-Briggs test, but we made our own with a psychologist, and you know, what that reveals is kind of how you frame money in your life, and for me, I actually got 100% score, which is ridiculous, on the Visionary Type, which is that everything about my financial life is about my passion for my work and my contribution in the world, and everything kind of stems from how do I use money to, you know, in my own mind, in simplistic terms, help people, but I guess in terms of money is … Money to me is an expression of how much impact I’m having in the world, and how I’m not only supporting myself and my family, but those far beyond us.
Tara: That was also the score that I got. Or I shouldn’t say the score, that was the type that I got. I don’t know what the score was, but I’m also a Visionary.
Amanda: Surprise.
Tara: Yeah, and we’ve been friends for years, so yes, I think that there’s a reason for that, and it might be that we’re both Visionaries. So what questions were you asking that kind of led to your initial conception of daily worth? What is it that you wanted to find the answers to?
Amanda: You know, what I really wanted to find the answers to with DailyWorth was, you know, traditionally, at least in the United States, this is different outside of the United States. Women focus on kind of the day-to-day household budgeting and spending, and men tend to have been the ones to manage the investments, and the bigger picture, and that to me just didn’t seem fair. Because I thought, you know, it’s the long-term that really provides security, and if women aren’t engaged around building their own security, then they’re dependent on men, and so … But when I went out into the world, publishing DailyWorth to now more than a million women, I saw how many women with advanced degrees, doctors, lawyers, etc., still delegated, almost blindly, their long-term finances to either a spouse or a financial adviser, and I’ve just been fascinated with why and how do we change that.
Tara: So what kind of money lessons did you have to personally unlearn as you got older, as you got more savvy, as you better understood that vision that you are creating for your life, what did you have to change about what you learned about money originally?
Amanda: I think what I had to change what I learned about money was really two-fold. The first was the story I told myself about money until I started DailyWorth, and the story I told myself about money was that I’m a really good earner, but I’m not a saver. I would say to myself, “I’m not a saver, I’m just not good at it. I’m a spender.” I identified with the word, “being a spender,” but I worked under this false assumption that one day, my earning would magically outpace my spending, and poof, there, I would have savings, and you know, obviously, this is illogical once you realize how easy it is for your life cost to increase, but you know, we don’t always think through the thing … We’re not always aware of the stories that we tell ourselves that drive our lives, and so the really big thing I had to unlearn was calling myself a spender, and I really worked, even though it felt ridiculous at first, I decided to just call myself a saver, and you know, you can prove to yourself that you’re a saver simply by creating a pretty jar and putting the coins in it, and go, “See, I’m saving,” and then setting up a different emergency fund and transferring, you know, I transfer once a week, you know, 1/8th of my checking account or something like that, you know, a safe amount that I’m not going to feel into that emergency fund, and so it’s almost like I decided who I wanted to be instead, and then I trained myself in order to be able to prove that it was true.
Then the second thing that I really had to learn about money is that, you know, we call this at DailyWorth your four things, and I learned this from DailyWorth investor and board member, Michelle Smith, who’s a financial advisor. When she works with all of her clients, she asks, “What are the four things that are absolutely non-negotiable in your life?” And for some women, you know, that might be the house that you live in. It might be how much you spend on clothes. It might be travel. It might be the car that you drive. It’s four things that are, like, are … You just … You can’t give those up. And then for the rest of them, it’s how do we make lifestyle adjustments so that we reduce the amount that you’re spending on those, in a way that doesn’t really infringe upon your lifestyle, but also doesn’t mean you’re mindlessly spending in those categories. So I’m oftentimes thinking about what are my four things, and then what are my … And what are all the … How can I make adjustments everywhere else since I really don’t care about those items as much?
Tara: Ooh, that is such a great exercise. Can you tell us what your four things are?
Amanda: You know, they’re actually in a state of flux right now. I’m teaching money clarity, which is the online class we teach every quarter, so you know, I can give you a sense of what they are.
Tara: Mm-hmm.
Amanda: So one for me is travel. I need to be able to travel at least four times a year, which means, you know, my partner travels all over the world for his work, and I love to be able to go with him, so that is a non-negotiable. Another one is going out to dinner at least once a week. That is really important. The other one is paying extra for really, really, really good child care, because I travel a lot, and making sure that I am leaving my kids with someone who I know they love is worth so much to me. And then finally is the private school that I send my kids to. It’s … They both … You know, we’re all a little ADD in our family, and myself included, and traditional environments don’t always serve us, so I send my kids to an expensive school, but I know that if they were in a traditional school, that they would be as miserable as I was growing up not being able to pay attention.
Tara: Mm, I think one of the problems that we have with money is that our priorities for it can be so overwhelming, and I think, you know, reducing your priorities down to the four non-negotiables might be a little stressful, a little anxiety-inducing for people. Do you have any suggestions for how we can go about, or exercises to figure out what those four things should be?
Amanda: Yup. So I think it’s really important to remember that the goal here is clarity. It doesn’t mean your life is going to change overnight. Those are very … Just because you decide something doesn’t mean it needs to manifest in your life right away. The idea is that you give yourself the space to dream and to play with ideas without them suddenly thinking your life has to change overnight. So for example, when I got divorced four years ago, I was living in a really large house that we had bought that was so expensive, and I knew that I couldn’t afford that, and so because of our separation, I was able to move into a tiny apartment, because the size of the house that I live in actually doesn’t really matter to me at all, and I can be kind of … There’s always so much stuff around that it’s easier for me to clean smaller spaces anyway. So but like not everyone can like move out of their house. You know, if you suddenly decide your house is not important to you, it doesn’t mean you can just put it on the market, so have more fun playing with the ideas, and then understand that it may take a few years for you to unravel those things that aren’t as important to you.
Tara: Hmm. So that kind of brings up the topic of things that we think we’re supposed to do or things that we should do, things we should care about, things we should be spending money on, versus things that are actually important to us, and you and I have had conversations about that quite a bit over the years, because we’ve both made unconventional financial decisions. Can you talk a little bit about separating the shoulds and the supposed tos from the things that we actually want to be using our money for?
Amanda: Absolutely. And it’s interesting, that’s the whole idea why we build the Money Type platform. Again, that’s MoneyType.me, is because we have a sense, based on your results, those shoulds that are baked into your story already, and we’re going to be able to help you through that, give you actual financial advice that’s targeted to help you combat your fears directly. So for example, if you’re a producer, if you end up getting the producer type out of the money type, that means you’re someone who’s really organized and really planning oriented. That’s also someone who probably thinks they absolutely must keep a budget, and that that’s the only way to be successful with money. Now, the truth is, is that budgeting is really hard, and doesn’t work for all people. So what’s important there is that you don’t get so attached to the system that you forget that you’re not supposed to conform to the system, the system’s supposed to be there for you. So if budgeting doesn’t work for you, which everyone thinks that they’re supposed to be good at budgeting, that maybe you need more of a bucketing system. Which means maybe you simply need to know how much it is you can afford to spend on everything outside of your bills every month, and move that onto a debit card that’s a separate checking account, and that way, you’re just checking the balance of that debit card when you’re spending money, and then when you run out, you know that you’ve spent too much, and then you don’t have to worry so much about a budget, because you’re aware more of what your overall spending is and can adjust accordingly.
So you know, I think it’s … a lot of the … those shoulds are all very, very, very different for a lot of people. Some of it has to do with personality. Some has to do with what you’re taught. Some of it has to do with, you know, traumatic childhood experiences where you’re like, no matter what, for me, it was, you know, I needed to make sure I was financially independent no matter what. It’s more just remembering that the ultimate, at the end of the day, what’s most important is that you save money. That is the greatest protection against more, more debt. You know, it’s the greatest things you’ll have against paying down existing debt. It’s your greatest security in the world is not just making great pay check, but learning how to be … learning how to save small amounts when you can, so that you have a cushion there when you need it, and everything else, other than that, I believe is gravy. It’s really about mastering savings, first.
Tara: Nice. So I mentioned unconventional financial choices, just a second ago. Can you tell me what some of your unconventional financial choices have been?
Amanda: Oh my God, I don’t think I’ve ever made a conventional financial choice in my life, so I’m not sure I’m a great model in that on those specifics, but I think the greatest unconventional choice I’ve made is that, you know, I became a computer programmer at age 21, and by age 28, I was making $200,000 a year, and I had a very successful web agency that was growing, and I could have continued to turn that $200,000 a year into much more, but instead, I realized that there was so much I had to learn about money besides earning, and that I saw the potential of DailyWorth to be so enormous, that I shut down my web engineering company and I launched DailyWorth and raised capital for it and went down to $90,000 a year, which I know sounds like a lot of money to a lot of people, and it is a lot of money, but it was far less than I’d been making, and I stayed there for many years, and still probably earn far less than what my quote-unquote market value, but that’s because I believe in the value of DailyWorth, and I know that it’s going to pay off for me enormously in the long run, but it’s a huge risk to essentially take ten years of your highest earnings and invest yourself in a business which could fail. I mean, any business can go out of business, so that is a very unconventional thing that my mother really did not understand for a long time.
Tara: Oh, our mothers.
Amanda: I know.
Tara: Yeah, I think your unconventional money choices make you a fantastic role model, because it’s your unconventional choices paired with that aggressive attitude towards spending that I think most people think you can’t accomplish. You can’t both be a saver and make unusual choices, and I love that you’re proving everyone wrong on that.
Amanda: Thank you, and the other … The other unconventional one I actually want to mention is that my partner, Jordan, and I have been together for four years, and we have very consciously decided not to live together, not to get married, not to combine finances, and to really remain independent as people, but together in relationship, and everyone, including my mother again, is going, “When are you going to get married?” And it’s amazing how much it seems to make other people comfortable, more comfortable if we would just get married and move in together, but it’s not likely to happen for many, many years. So … if ever. So it’s very unconventional, but one that is no doubt in my mind, at this stage of my life, right for both of us, and he agrees.
Tara: Yeah. So you mentioned that you’ve grown DailyWorth to over a million subscribers, which I think is probably mind-boggling to many of our listeners out there. Can you talk about some of the …
Amanda: It’s mind-boggling to me. Yeah.
Tara: Yeah. Can you talk about some of the strategies that you used to grow DailyWorth to that type of platform?
Amanda: Sure. You know, it’s a few things. It’s, first, it’s finding a big hole, you know, I’ve been an entrepreneur my whole life. It’s really hard to find things that people haven’t done before. I spent 10 years searching for an idea that I knew was enormous that no one had done that was actually valid, and it took me 10 years to figure it out, and they don’t happen every day. So first is it helps to, if you want to grow really, really big, it helps to be the only one doing what you’re doing while also solving a real need. That’s a big part of it.
The second was I was extremely focused on email, and I ignored almost everything else, including social, for many years. I know social media is all the buzz, but I find email to be a much more impactful way of communicating with a targeted audience, so I made everything about our website to be about signing up for our email, and that to really get the goods, you had to get the email, and that, the website itself even was secondary. It was really about concentrating on your inbox, because that’s where we spend most of our time.
So the third thing that I did is I found someone who had done it before. I made a lot of calls to people I didn’t know to find the best person in the business at growing an email subscriber list, and I came to Hillary Feder, who has been working for me now for seven years, and I didn’t know anything about how to grow an email subscriber list, or not much anyway, but she had already grown IdealBite.com to 500,000 subscribers when I contacted her, and then it was really just a matter of figuring out how to pay her until the business had revenue, and there’s a variety of ways that you can barter or equity or etc. So yeah, so that’s how I grew it to over a million subscribers.
Tara: Yeah, let’s talk more about that people piece of the equation, because I think this is another thing that you have done so magnificently in growing DailyWorth. You have brought in amazing heavy hitters in the world of finance, personal development for women, you know, I’m thinking about people like Barbara Stanny who are just huge in this field, how do you go about finding those people and building those relationships so that they’re as on board with your vision as you are?
Amanda: Yeah, you know, I think it comes from the fact that I have a really, really clear and big, big vision about how I want to shift things for women in general, and money is really just an element. It’s not even really about the money at the end of the day. It’s about women feeling ownership of their lives and being able to create their own security, and I guess I’ve been able to create these relationships in that I’ve … not perfected, but I think that they feel and see not only the strength and potency and uniqueness of my vision, but also as a computer programmer, my ability to execute, and I think it’s the combination of those two that people, that powerful people like Sheryl Sandberg and others who I’ve collaborated with on various things over the years are attracted to is that unique combination of a really potent vision along with a proven track record of being able to know how to scale something and really build it.
Tara: Yeah. You mentioned collaboration there. What are some of the different ways that you figure out how to use those relationships, or to partner with people, because I think a lot of people out there, you know, they’re capable of building relationships, they’re capable of sharing their vision, but then the question is always like what now? What do I do? What do I ask for? How do you figure out how you want to collaborate with someone? What the product of that is going to be?
Amanda: Well, I think it’s really … Here’s how I did it, and I did it … I don’t think I did it intentionally, but then when it happened, it was very clear what I had done. So the first thing is, and this is critical, find people in your peer group who are at your level, not people who are way ahead of you or even way behind you. So find people who, if you’re building a media platform and if you’re building an audience, who have an audience size that is similar to you but isn’t directly competitive to you. And the reason why I said media for … in this case, is because that’s what I was building, so I found a lot of other people with media properties, and so for example, you know, it’s seven years ago now that I became friends with you, and Gabriel Bernstein and Marie Forleo and Allie Brown, and a lot of … Well, Allie was already huge, but you know, Gabby Bernstein was just getting started, and Marie was … she was definitely ahead of me, but they felt kind of like, and then there were guys. Like Lewis Howes and Ramit Sethi who also had online communities that felt like my peer network, and then we kept it informal. I made sure that, I mean, I wasn’t doing this intentionally just because I wanted access to their lists, obviously. I wanted a peer group of we were all trying to do the same things and I knew we could help each other, so that then, when you know, the more … hopefully it becomes like an I scratch your back, you scratch mine, but you’re never going to do this contractually with these types of informal networks, but they have done enormous things to promote me, and I’ve done enormous things to promote them, and therefore, we’re all cross-pollinating to a certain extent across each other’s audiences, and that really helps us all go.
Tara: Yeah. Now you mention Ramit and Marie and Gabby and they have all chosen to build lifestyle businesses. When you started DailyWorth, you chose to grow it through outside investment and take on venture capital. What do you … what kind of doors did that open to you that might not have otherwise opened?
Amanda: You know, I don’t know if I was to do it over again if I would raise venture capital. I didn’t really understand what Marie and Ramit were doing at the time, and I thought, I had come out of the computer programming world, so all I saw was venture capital, and I knew that our audience was so big that we were a venture-worthy business, but I think that … I just think it changes what you’re doing, really, at the end of the day. Because when you raise venture capital, ultimately, those investors are looking for a major payout, so the amount of scale you have to produce and the amount of revenue you have to produce in the tens and twenty of millions is far more than any of they need to produce in order to live a great life relative to their business. So it has opened doors, you know, the fact that I’ve raised capital from Google chairman Eric Schmidt and some other big names means that when it comes to forming partnerships with TIME, Inc., you know, and Yahoo Finance and all of the big guys that I started out trying to be the opposite of that we now collaborate with is a lot easier when you’ve raised venture capital. It also, for me as now a single mom, it allowed me to pay myself a more, a healthier salary earlier and stress less, so that I didn’t … even though I was going to take longer and it was ultimately going to be much harder because of the expectations that come with it, it allowed me to do it right because I had money and I didn’t have to scramble and stress out all the time. I could really do things strategically and hire people. That … I could afford to hire people instead of having to do it all myself, which is huge.
Tara: Yeah, absolutely. All right. Let’s shift gears a little bit and talk about your brand new project, which is WorthFM. Can you tell us what WorthFM is and why you’re getting started with it?
Amanda: Absolutely. So WorthFM is a new business that we just launched. WorthFM stands for Worth Financial Management, and it is an actual registered investment advisory, regulated by the SEC, where you will be able to open up an account with, you know, $100, and either open up a retirement account or a general investing account or a savings account, but the difference in what we’re trying to do is we’re stripping out all the jargon, we’re taking out all of the options that you might find if you go to a more complicated place, like Etrade or TD Ameritrade, and we’re making it as simple as we possibly can, but then what’s special about it is that when you log in, rather than just showing you your account balance, we’re actually going to show you things that can help you understand your investments, or help you understand your savings, or help you understand should you saving more into savings or should you be saving more into your investments, and those are all complex calculations that we all know how to do and financial advisers know how to do, but most individuals don’t know how to do. So we are launching an actual saving and investing platform to really fulfill on the mission of DailyWorth to empower women to build net worth and future security by building a tool, an actual investment service that is like nothing that is out there, because we know what’s out there is really not helping people. It’s really just confusing them further.
Tara: Yeah, well, let’s talk about that. What are some of the problems that people run into with traditional financial management or just trying to DIY it themselves? What are some of the problems that they run into and how is WorthFM going to address those thing?
Amanda: So the first problem that people run into is they don’t really know who to turn to? Do they call a financial adviser? Do they call Fidelity? Do they just stick with their 401k? And those … the answers to those questions are so individualized through unique circumstances that while someone may need a financial adviser at some point, it’s more important that they have a basic grasp of investing first, that they know what they’re hiring for, and they’re not just blindly delegating.
The second thing that is really important for everyone to know, which so many women don’t know is the difference between active and passive investing. When most people think about investing, they think about active investing, which is picking stocks or even having a financial adviser pick the mutual funds and securities and bonds that your money goes into in order to grow for the long-term. Active investing is what all of Yahoo Finance and Market Watch is about, and when you think about Wall Street and brokers, etc., they’re mostly talking about active investing. What everyone is doing in active investing is they’re trying to make the maximum amount of money they can on their money that they are investing. As a result of that, it requires a lot of human time, and therefore the expense that gets charged related to that human time, and to make things more complicated, there’s study after study that shows that if you look at an active investor versus an investor who’s just putting their money in an index, and I’ll explain what that means in a second, then there’s a 50% chance that they’re actually going to do more poorly than the market growth itself versus if they had just put their money in an index fund. So I am not a strong advocate of active investing, even though it’s what most people think of investing when they do it.
We, at WorthFM, are only offering at this time passive investing, which means that we create portfolios for you where you don’t have to choose what goes into them. You don’t even have to know what goes into them, but of course we’re going to take steps to teach you about it. Where it’s … where they’re widely, widely diversified ETFs. Don’t worry, you don’t need to know what that means. The only thing you need to know is that when the combination of the S&P and the Dow Jones goes up, so does your portfolio, and when the market goes down, so does your portfolio, and you kind of … if you’re looking at a 10 year or 20 year or 30-year horizon, there’s going to be some years that it goes down and there’s going to be some years that go up, but you can pretty get … the, the market’s never not gone up before, and it’s grown for the last 100 years at 10% per year. People think we’re in a slow growth time so it’s probably only going to grow 5% per year. On average, if you’re looking at least ten years out in terms of your long-term savings, but we’re going to charge you is somewhere between 1/2 a percent and a full percent difference in those fees, so … and you don’t even have to really worry about what it’s in, because you’re just tracking the market. So that’s the really big difference is we’re not focused on what you are buying. We’re handling all of that for you in a really, really simple safe way. What we’re focused on is motivating you to save and invest more money in a way that’s comfortable for you.
Tara: Yeah, from the moment you told me about this new venture, I was incredibly excited about it, because to me, WorthFM is about empowerment even more than it is about financial returns, although I want those, too. But mostly, I want to feel empowered with my money, and even, you know, for someone like you, who’s really good at making money, you know, I often feel disempowered when it comes to what to actually do with it. I feel like I was missing some big piece of financial education, and it’s probably not a matter of feeling like that. I’m sure that I probably was. So how is WorthFM going to, or what is your mission with WorthFM to get people feeling that empower? What are you going to be providing people that’s going to leave them feeling more confident about their money?
Amanda: You know, I’ll start by just telling you a few stories. The first is about my friend, Steph, who was married for 17 years and opted out of her investment banking job for nine years after her kids were born and then learned that her husband was living a double life, and not only when he left did he … Was there that horrible shock, but he said he also couldn’t afford to pay child support. So not only had she not worked, but she was alone to raise boys. So that’s one example.
Another is, I won’t use names, but I think of some of my female friends who’ve gotten married and are really unhappy in their situation, but they powerless to change it, so they are … They fell just incredibly stuck in their lives. For me, it was I bought too big of a house ten years ago, and ended up spending tens of thousands of dollars on windows that drove me into debt and other things that, you know, I really didn’t see coming because I had no consciousness or awareness of savings and connection to money. So I think when it comes to our mission, you know, I’m using a lot of extreme examples, and this is very much for happily married people as much as not. It’s really around the sense that life is full of huge curve balls, and more often than not, it’s women who del- … it’s more women than men who have delegated those and end up in really hot water later in life, because they thought they weren’t interested in money, but then found out it’s really interesting. So I think the mission is really from a gender and socialization standpoint to finally bridge the gap between women and their confidence and their knowledge around money, and so we are … We’re actually measuring in our system what we understand to be both your knowledge and your confidence, because they’re different. And then taking steps within the way our platform works to increase your confidence by highlighting the things you’re doing really well, and the actions that you take, and your knowledge by literally feeding you in very tiny, tiny bite-sized polls and stuff, and videos, information about your very specific life situation and portfolio.
So we believe that if we can increase women’s confidence and knowledge about saving and investing that we can have an extraordinary impact on her life.
Tara: Yeah, that reminds me of what you said toward the beginning of the conversation about even just changing your identity personally from being a spender to being a saver, and it sounds like your mission really is to help change women’s identities around how they handle money as well, and to give them concrete tools to be able to do that.
Amanda: It’s true. I’m working to reprogram women into power money people, I think. It sounds a little freaky.
Tara: I love it though. I love it.
Amanda: Yeah, it’s … but at least I’m being clear about what my intentions are, right?
Tara: Absolutely. Absolutely. Well, I mean, the name of the podcast is Profit. Power. Pursuit. So we’re not afraid of these things.
Amanda: Awesome.
Tara: Yeah, so, uh, you’ve got a partner on this venture. Can you tell me about the partnership?
Amanda: Oh, my God. Can I tell you about my partner. So Michelle Smith is a financial advisor who has had 30 years on Wall Street managing money. She has a firm called Source Financial Advisers, where she has $600 million of other people’s money that she is responsible for safeguarding and managing with them, but what I love about her and the reason why we are introduced is it just so happens that 95% of her clients are affluent women. And I’ll explain why I differentiate them as affluent in a minute. So you know, when we talked, we realized that we had both been in this really specialized area of helping women with money, and we knew all the exact same things, but we were doing it from very, very different places, and the reason why I was looking for her was I as … as an entrepreneur, I don’t … I may seem powerful to a lot of people, but I don’t yet have the power to move the mountains I want to move, and so I knew I needed someone really powerful and established from the Wall Street culture to be an investor and partner from me in order to really take things to the next level and be taken seriously.
And then for her, she was only, because of the way financial advice and advisory and money management has worked for the last who knows, 50, 100 years, is that financial advisers in Wall Street, it’s true, they can only cater to the 1%, because that’s how all the pricing is structured, and if you try to work with folks who only have, say, $100,000 in their retirement account, then you find that because of the way prices work in Wall Street that you don’t actually make any money, and you can’t even afford to pick up the phone and call them, because it’s not … It just doesn’t work in the business. So she had been looking for me, because she was really … Felt frustrated that she was so bottlenecked into only being able to serve women with over a million dollars, and when I came to her, she was like, “Wow, you’re going to really help me help a lot more women out there.” And so it was like a perfect partnership.
Tara: Mm, I love that. Yay. So we know WorthFM is kind of what’s on the immediate horizon line for you, but I also know that you’re working on a book. Can you tell us a little bit about what you’re trying to accomplish with the book?
Amanda: Oh, for sure. So the book will actually be published in January 2017. It’s called Roots and Wings, and I called it Roots and Wings because it’s … My mom always said to me … My mom was always really bizarre in that she never put any rules or restrictions on me. It was like, “Mom, aren’t you supposed to? Isn’t that like what moms do to kids?” And she said now, “I really just believe I need to give you roots and wings and that you’ll figure out the rest,” and in retrospect, I actually think she was right. It’s … Her idea was that I need to help you build roots, which is you know, security, knowing that you come from a stable place, and then wings, which is the confidence to do whatever you want, and when you give younger children that level of freedom, you know, we end up getting really bruised and knocked around in a lot of life circumstances, I’m sure. You know, I grew up in downtown Philly, and I’m sure there were, I got into situations, being a child of urban life that were not entirely appropriate for the age, but you know, it really turned me into a tough, strong, independent person, and I’m so grateful to that, so I’m taking that wisdom from her, and I’m turning it into a financial advice book specifically, but really digging deep into the core of where do we get our self-worth from? Why do women have this self-confidence gap? Where did that come from? Is it genetic? Is it social? I believe it’s mostly, if not all, social, and cultural, not genetic. And then you know, roots, in the case of this book, are how to build assets, which is should you have an investment account? Should you buy a house? Should you start a business? There’s so many ways you can build equity in your life, so what’s the cost-benefit analysis of doing one, two, three, or zero of any of them, and then wings is about income and cash flow and having enough money right now to live the life you want. And it’s everything from what are your four things to what’s a curveball account to should you separate your spending from your sustain to how do you much make as much money as humanly possible in a way that, you know, feels good to you.
So that’s the book. It’s going to be, you know, a real call to arms for women. I hope that … My favorite book right now is Ta-Nehisi Coates’s Between the World and Me. It’s actually a book on racism, but I think there’s a lot of interesting parallels between racism and what women have had to encounter over the last 100 years, as we used to be property and now we can finally own it, hallelujah. So I’m really … I keep reading his book over and over again. It’s a bestseller right now, and then also, just a really intelligent and entertaining financial advice book that doesn’t just tell you to budget, because that’s boring.
Tara: Amen to that. Everything I’ve heard about the book so far, I’m incredibly excited about, and I think that, you know, if people are enjoying some of the unconventional wisdom that you’ve shared so far in this interview, that they’re going to enjoy the book as well, and I’m sad that we have to wait a year for it.
Amanda: I know. Me, too. Trust me. It’s a … It’s a lot of work. We’re working as hard as we can.
Tara: I totally understand. Well, Amanda Steinberg, thank you so much for joining me today.
Amanda: It is my pleasure, and I hope everyone goes to WorthFM.com and signs up for our wait list so that you can hear about it when it’s ready.
Tara: Find Amanda Steinberg at DailyWorth.com and WorthFM.com. Take the free money type quiz to find out how you use money at MoneyType.me. On the next episode, we’ll sit down with Vanessa VanEdwards, an author, a behavioral investigator, and self-proclaimed recovering awkward person to talk about the profile she uses to better understand her team and her customers and the weirdest experiment she’s ever conducted.
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.
Ambition as Self-Expression: A Conversation With Danielle LaPorte
“Our priorities don’t fluctuate; they’re always the same. I as a human being, woman, person need to be self-expressing or else I’ll die.”
— Danielle LaPorte
Danielle LaPorte is a writer, thinker, and soul strategist. She mixes personal development with spirituality and business. Her life and ambition revolve around self-expression, which she hones as a skill.
I’ve had the privilege of speaking with Danielle many times. Each time, I come away with a sort of burning in my chest.
Danielle fuels my ambition. Not blind ambition, but grounded, purposeful, meaningful ambition.
When I sat down for my interview with Danielle for the latest episode of Profit. Power. Pursuit., I was prepared again to burn. I was not disappointed.
First, we discussed how Danielle prioritizes her rapidly expanding business. She’s added tattoo, jewelry, and candle collections to her personal development product line over the last 2 years.
Her priorities are simple. Everything revolves around self-expression first and foremost. Then, she prioritizes impeccability. Finally, she prioritizes visibility—or grow the freaking list!
Danielle and I also talked about the many different ways she’s published her work: self-publishing, digital publishing, hybrid publishing, and traditional publishing. Each revealed a different form of self-expression she called herself to.
We also discussed how her team has grown—and the “blue sky” team she’s building to work on secret side projects. Wouldn’t you love to have one of those?!
If you’re ready for that on-purpose, grounded burn of ambition too, click here to listen to my interview with Danielle on iTunes.
If you’re loving the podcast, we’d love your rating and review on iTunes, too!
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A Natural Evolution: How Social Media Marketing Expert Laura Roeder Became a Startup Founder
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I first met Laura Roeder—the latest guest on the Profit. Power. Pursuit. podcast—at the inaugural World Domination Summit. Of course, she’d been someone I knew “from the internet” since the start of my business. Meeting people in the flesh is different.
She stopped me on the street and asked to chat. We joined some friends of mine at an outdoor cafe table and enjoyed sangria and cheese. We also enjoyed great conversation about running and growing businesses in the online world.
Laura was truly one of the first people I ever spoke to whose interest in regards to business was much more about profit, power, and pursuit than it was about passion.
Over the next 5 years, I watched her business evolve from social media management to social media training to social media software. Her latest venture, Edgar, is a software application that allows marketers to more effectively and efficiently schedule their social media updates.
I use this tool myself and have seen amazing results simply by using its most basic features.
Of course, you can go anywhere to learn more about social media marketing. I hope you come here to learn the behind-the-scenes story of what makes a business like Laura’s really work.
Laura and I talked about how to know when it’s time to change your business model, the role money plays in decision-making and planning, why she chose to turn down millions in venture capital for her startup, and how she manages to grow her team.
Pay close attention to what Laura has to say about personal investment and risk when it comes to growing your business.
Click here to listen to my interview with Laura Roeder, founder & CEO of Edgar, on iTunes.
If you enjoy the Profit. Power. Pursuit. podcast, please subscribe to future episodes and leave us a review!
TRANSCRIPT:
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’s guest is Edgar founder, Lara Roeder. At 22 years old, she quit her first and last job as a designer at an ad agency to start her own business. She quickly grew a tiny, but thriving, one-woman design firm. On a quest for scale, Laura ventured into training and information marketing and then into software as a service. Laura and I talked about the evolution of her business, the value of a great team, and how she intentionally avoided millions in venture capital to build her software business.
Laura Roeder, welcome to Profit. Power. Pursuit. Thanks so much for joining me.
Laura: Thank you. I’m really excited to be here.
Tara: Awesome. So your business has changed a lot over the years, and it’s been a lot of fun watching the changes that you make. You’ve gone from web design to high touch social media management, to social media training, and now you’re into social media software as a service. How do you know when it’s time to make a change in your business?
Laura: So this is … This is a really good question, you know. I was telling Tara, I looked over at the questions you sent, and I really had to think about them, and this is one of those that I really thought about, because it seems very natural at the time. You know, so I could of thought, okay, let me … Let me reverse engineer how I have made these changes, because they feel like they just sort of evolve, and I think really for me it’s been a matter of having a vision for what’s next. It’s not so much a larger strategic plan or a this isn’t working anymore, I need to switch. Although this isn’t working anymore can definitely be an element of it, but it’s usually more that I get inspired for something that I want to create next, and then I see how I can make my business into that, and that’s what I’ve done.
Tara: Nice. Where do you find that inspiration? Because I think it is helpful to say that it’s more about kind of creating that vision, but I think a lot of people actually get stuck on creating that vision, because they don’t know where to find that inspiration.
Laura: So for me, it’s really been a combination of my own needs in business and customers. So I’m an entrepreneur. I love entrepreneurs. All the businesses that I’ve had, that’s who I’ve served, and for example, Edgar just came out of really my own need. I had some frustrations with social media software out there that I wanted to solve and something that I loved about social media is just how tightly connected you stay with your audience. You know, it’s just so easy to go on Facebook and instantly be having a one on one conversation with someone who is your customer or who is your fan or whatever, so it’s really been a combination of solving problems that I want to solve for my own business, and also just kind of looking around and seeing what are other people’s frustrations, what are they talking about, what are they trying to do that they’re not able to do, that sort of thing.
Tara: Yeah, I think a lot of people try and keep their eyes on their own homework, and I think keeping your eyes on your own homework can actually kind of stifle that … stifle innovation or stifle your ability to figure out what’s next.
Laura: Yeah, you want to look at yourself, but not just yourself.
Tara: Right. So you and I have talked a lot about team over the last few years, and I’m curious, what does your team look like right now?
Laura: So now my business is totally focused on Edgar. We’ve been phasing out the training business. So we have a team of 13 now, and that’s made up of engineers who are building the product, customer service people, a little bit of operations, and a marketing team. We actually have two full-time writers, which is pretty unusual for a team our size, and I think just shows you how focused on unmarketing and content marketing we are.
Tara: Yeah, how do you go about finding new team members?
Laura: It’s difficult. We’re really, really, really picky, and it’s really important that someone is as strong in skill as they are in culture, so actually, our biggest mistake that we made, when we were sort of evaluating like what went well in the first half of 2015, the hugest mistake that we made is not giving ourselves enough time to hire, because we found that it often takes, depending on the roll, from two to like six months.
Tara: Wow.
Laura: Which is kind of crazy, to find the right person. So now we try to put out job listings a lot early. I’ve read a lot of things that say, you know, you have to be recruiting, the best people already have jobs, and they’re not going to find job listings. I haven’t done that. I don’t know where people find the time to do all this recruiting. It sounds really good, but we just don’t have time for it. So we have used traditional job boards. We’re a remote company, so boards like We Work Remotely have been great for us or Authentic Jobs has a lot of remote jobs on it, so we just put our listings into typical job boards like that, but we try to use a lot of personality in our listing to show you what it might be like to work here just from reading the job listing, and I think that helps a lot in attracting the right people.
Tara: Yeah, and another thing that I’ve really admired about the way you’ve built your team or the way you manage your team is how objective you are about looking at people’s performance, about looking at what your goals are, about looking at how people work within the team. What is it do you think that has allowed you to kind of maintain that objectivity and use that as a management technique?
Laura: So something that we say a lot at Edgar is, “Value for value.” The phrase is something that our head of customer service, Christina, kind of coined. She’s always like, “Value for value. Value for value.” And that means that everything has to be an even exchange of value. So when we are looking to add a tool to our arsenal, we’re saying, “Okay, they’re going to charge us $100 a month. Here’s what we’re going to get. Do we feel good about that value?” And we use that phrase a lot when we talk about anything in our business. I was just talking to someone about a freelancer that we’ve hired, and we’re like, “Do we feel there’s value for value? Do we feel like we’re getting the value for what we’re paying them?” And I view team members as the same way, you know? They’re people that are working here to contribute value to Edgar. That’s why they’re here working or us, and that doesn’t mean, you know, I think a lot of people get sort of confused in a team world because they start thinking about their value as a human.
Tara: Mmhmm.
Laura: You know, their value is a human is totally different than the value they add to the Edgar team. You know, those two really have nothing to do with each other. I mean, one, all humans are valuable, but you can be a really amazing person, but you know, one, just maybe not have the skills that we need for our team. So I think that’s where a lot of people get really tripped up is thinking, oh, I don’t want to, you know, I don’t want to let them go because I really like them, or maybe there’s a way to make them work, or whatever, because you like them as people. I’ve remained on good terms with everyone that I’ve ever let go, and there’s a few on that list, because I am objective, and we do let people go when they’re not working out. But there’s no one that I’ve ever burned a bridge with. I’ve helped people find other jobs, and when you’re just looking at it from that value for value perspective, you see where they could add more value to another company, where you’re not serving them by sticking them in a job that’s not really working out for them. So I think that helps me look at the whole situation.
Tara: Yeah, and I think it actually probably helps you maintain that friendship and treat people as humans when you are able to be objective about their role on your team.
Laura: Right. You’re not saying you have failed in life, you know. You’re saying we have this need and it doesn’t seem like you’re the right person to meet it, so go find another job that you can really thrive in.
Tara: Yeah. I love that. What systems do you use for managing your team? Is it software? Is it a particular management technique? What do you use?
Laura: Yeah, so this is … This is something we’ve been exploring a lot because we’re getting to that point where we’re getting bigger, but we’re still small enough that we can all stay in touch, and we’ve really struggled with like do we need to put in more systems to have that good framework for when we grow, or are we sometimes overcomplicating things and making things more bureaucratic then they need to be now, so this is definitely something that’s been on my mind a lot lately.
As far as just logistical tools, we use, you know, the same things that a lot of virtual companies use. We use Slack. We use Gmail for our email. For task management, some of use Trello and some of us use Flow, but I think the tools are less important than the style of communication. So the way that we manage people, we’re really huge on everyone having ownership over what they do, so our team leads we call advocates. So we call them that because they’re not necessarily the boss of that team, but they’re the person who advocates for that team within the company. So our customer service advocate is fighting both for her team to make sure they’re happy and just for the role of customer service in the company. She’s advocating to make sure our customers are served. You know, marketing is advocating to make that we’re spending enough time and resources on marketing. So we see those team leads as the advocate for their area, and then each person within the team has total ownership over whatever their tasks are. So Tom, who writes our blog, the blog is his. He decides the topics, he writes it, you know, he does the schedule, he makes decisions on how the blog’s going to look and what features it’s going to have, whatever. The blog is his. So that’s how we run things.
Tara: I love the idea of your team leads being called advocates, and I am totally going to be stealing that, so if my team is listening, that is going to be coming down the pike. I really, really love that. So let’s shift gears a little bit and talk about money, because that’s one of the things that I’m really trying to demystify with this podcast. Can you tell me, what’s the role that money plays in the way you plan for your business, especially when it comes to changes in your product or changes in your business model as a whole?
Laura: So we are a bootstrapped/self-funded, I think self-funded at Edgar is a little more accurate, because we’ve used the profits of the training business to help start up Edgar, but either way, we don’t have capital, and so money is really, really important in planning because everything we do needs to be, not only does it need to be profitable, it needs to be profitable in the short term. You know, we don’t have this like year or five years of runway to play with, so we are very, very money focused in that is everything that we’re doing adding value that will turn into real dollars of revenue for the company, right? The company can’t survive without revenue. So I think that helps us be really focused in so many areas, you know, when we’re thinking about how we want to take the product. It’s very important to us not to add any features that aren’t going to get us more customers. You know, unless it’s something that’s really, really important to our customers, it’s a waste of developer time. So I … I actually … And it makes financial planning really simple, because the bottom line is are we in the black every month. If we’re in the black every month, we can … there’s no way we can wake up one day and be out of money. We can maybe not have so much, so much profit, but we’ll never have to worry about this longer term, more complex financial planning. And that might not be the most sophisticated way to do it, but it’s the simplest way to do it, and we’re very happy with that right now.
Tara: Yeah, absolutely. Simple is awesome. So you mentioned that you are self-funded at this point, that Edgar is self-funded, and you recently wrote about not accepting venture capital to build Edgar. Can you tell me more about your thought process behind, and basically intentionally avoiding potentially millions of dollars in venture capital?
Laura: Yeah, it’s a really multi-faceted issue. One of the biggest things that I was really trying to avoid in not raising money is this kind of raise or die cycle, where instead of being focused on building your product or being focused on your customers, you’re focused on raising money, because that’s kind of the business model that you’ve built for yourself is you raise and you run out and you raise and you run out, and you have to spend so much of your time chasing that fundraising, and that just didn’t sound fun to me. It sounds fun to me to talk to customers and find out what they want and find out what they love and hate about Edgar. That’s how I’d rather spend my time. So that’s part of it. Having the freedom and flexibility is a huge part of it. So I had a baby earlier this year. I took three months off maternity leave, totally off work, I’m working part time now, and my husband is the CTO of Edgar, so he runs, he’s our, you know, Dev Advocate, and he works part time also, and I just don’t know how many funded companies are cool with like the CTO and the CEO both working part time. It’s not always their first choice. So I really wanted to have that freedom, that flexibility, and then as I explore more, I’m also … As we grow and we get, I guess, more on the same page as a lot of funded companies, because now we’re almost at $2 million annual revenue, so we’re kind of, you know, a lot of the companies we’re sort of comparing ourselves to do have funding, there’s all these little interesting little things that emerge. Like when you need to keep raising money, your growth rates have to always look really, really good. So people do things like have free plans and just grow the free plan as big as possible, because it’s much easier to get users for free, and that keeps their growth numbers up. Where we’ve done a lot of experimentation with our marketing funnel.
We recently did an experiment that did not work out well, so we had a down month, and if we had just been focusing on keeping that growth number looking good, we would actually be much more risk averse, because we wouldn’t be able to take a big gamble like this totally changing our marketing funnel. We took the gamble, we had a bad month, but now we can fix it, it doesn’t really matter to us what our numbers look like month to month, as long as, you know, we’re doing well overall. So that’s been really interesting. I think there are lots of little implications to having your board or having that next round be one of the big stakeholders in your business.
Tara: Yeah, I really appreciate that you pointed out the difference in priority between your company and one that is venture funded, because I don’t think a lot of people realize that the priority of a venture funded company is growth above all else and growth for the purpose of then raising more money later on, and that it’s not about making money at all. It’s about making potential money much later on. And I … And you know, then with your priorities being serving your customers, making the product better for those customers, and generating revenue, and so I think when most people, then, kind of weigh what they want out of their businesses, most people end up on that self-funded track, or they should be on that self-funded track, even if it’s not as glamorous as potentially building a unicorn.
Laura: Right. Because, I think for most people, it’s much more motivating to please a customer than it is to please a VC guy. You know? I love that our product helps entrepreneurs. It helps them make their life easier. It helps them save time. That motivates me to grow this company. For me, it would be a little difficult to get the motivation from I can’t wait to pitch this next guy who’s going to really love the idea and is already a billionaire. Like who cares?
Tara: Totally. All right. So you mentioned that a couple of months ago, you experimented with a change in your marketing funnel that failed. Are you willing to tell us what that experiment was about?
Laura: Yeah, it’s really interesting, actually. So most SAAS companies start their marketing funnel with a free trial. So you go to the software website, that’s the call-to-action on the home page, start your free trial. So we had done our funnel differently, but we wanted to try the free trial thing, because we thought, well, if that’s what everyone does, and there’s so much that’s been written about it, there’s probably some merit to this idea. So we changed our homepage to start off with a free trial, and we’re still experimenting with this as something to play with in our funnel, but there was one extremely clear result, which is the top of the funnel, meaning just the number of people who started with us, gave us their email address, absolutely tanked compared to our old call to action, which was request an invitation.
Tara: Mmm.
Laura: We used to have request an invitation, and then you’d get like put in our queue basically, and you’d get access to the software, and so many people would complain about that. People would be like, “Why do I have to get an invitation? I just want to buy. Just let me do a trial. You know, why are you making it difficult for me?” But just coming to the site, so many more people were percentage wise were willing to request an invitation over start a trial. And that makes sense when you think about it, because you have to commit time to start a trial. You know, you’re not… You’re not always at the point when you’re exploring your options, and I’m ready to sit down and start a trial with a software, but requesting an invitation? Sure. You know? I can do that. No skin off my back. I don’t have to do anything. You’re going to remind me at some point to try you out. So it kind of makes sense to me that it was lower, but I did not expect it to be so much lower, and it’s just all the more fascinating to me that so many companies I think never experiment with this. They just assume start with a trial, that’s what everyone else does. But it’s not the best option for every piece of software.
Tara: I just had a huge aha moment. So that was very exciting. So thank you for sharing that. All right, let’s shift gears on money a little bit and talk about a different, sort of a different side of money. You’ve written in the past about the big, scary check that you wrote to sign up for a program of Marie Forleo’s very early on in your business, and I think that many people, women and creatives especially, have a lot of fear when it comes to investing in their businesses. How do you know, how do you, Laura Roeder, know when it’s time to dip into a nest egg, a credit card, a personal loan to accomplish something new in your business?
Laura: It’s a really, really hard question, because I have to be honest, but a lot of it is definitely intuitive of feeling like this is the time. So that is part of it. I know that’s not super, super helpful, though. So I would say the more helpful part is just you need to have some sort of idea how this is going to work and how this is going to pay off, and I think early on, you’re often not sure exactly what that’s going to look like, but where people go awry is if you want to invest in something and you don’t really understand how it’s going to apply to you, but you’re just like I just want it and it’s just going to make things better, that’s kind of a red flag that maybe you’re getting hyped up, maybe you’re getting too excited about this being some sort of magical fix, because you need to see how it’s going to directly apply to you. So basically what I’m saying is you need to have a problem you’re honing in on. So if you are struggling with your business, you’re not getting enough leads, and you’re like, you know what, I hear all this stuff about email marketing, I don’t really get what it is, I don’t really get what it can do for me, it might make sense for you to invest in service or training to learn about email marketing. Because you can see, okay, you know what, I know that’s a marketing channel, I know it can help my business, I’m not sure exactly even what that outcome’s going to look like, but I can guess that if I knew more about email marketing, I can see enough examples of how that’s going to do something to grow my business. Whereas if you’re like this person is offering some business coaching, you’re like, I don’t really know what the problem is that I want to solve with them, I just know that my business like isn’t great and I want it to be better in some way. That’s often not a great investment, because you’re not clear on what you’re going to get out of it.
Tara: Yeah. So this is an interesting issue, because I think often, people are focused on the wrong problems. They attribute, you know, failure in their business or stagnation in their business to the wrong things. So how do you figure out which is the right problem to be focusing on at any given time?
Laura: That’s such a great point. I actually think that is one of the great skills of entrepreneurship and everyone needs to continually hone is solving the correct problem. It’s like one of those absolute top level skills, and I think about it all the time in the work that I do every day. Like is this really the problem that we need to solve. You know, we actually just we got an intern at the company, so we have this list for her, and when I’m looking through the list of what she should do first, I’m definitely thinking about this. Like, okay, she could do that, but is that really, you know, the active, most important problem in the business now, and the way that you look at it, I mean, this is where looking at numbers is really important. So looking at just your overall flow of you know leads to sales and then ongoing customers, so that doesn’t have to be anything too fancy, so if you have an online business, it’s just like, okay, how much traffic am I getting, how many leads am I getting out of that traffic, which usually means email addresses, how many customers, and then maybe, you know, if it applies to your business, maybe how many follow-up, repeat customers are ongoing customers. So once you break down those numbers, you can kind of start to guess, looking at those different conversion rates, okay, out of my traffic, I have .03% becoming leads. Okay, I’ve read some articles online, I’ve seen a few numbers thrown around, that sounds sort of low compared to what I’ve seen thrown around. So maybe that’s a good place to improve my business, and a lot of it’s guesswork, right? Because unfortunately, there’s not this, I wish there was just this index of like this is what you can expect in your business, you know? Try to hit this number. Which, of course, we’re all different, so it doesn’t exist, but looking at some of those numbers is really helpful in honing in on where the problem is, and also getting really specific and writing out what’s actually working and what’s not working, because we often have these sort of vague ideas.
Tara: Mmhmm.
Laura: Often based on how we spend our time, by the way, and not actually what the outcomes are. So maybe like you do webinars every week, and you’re like, “I am killing it with these weekly webinars. These are great.” But you’ve never actually sat down and been like how many customers do I get out of these webinars? You know, you just, you just had the idea that they’re, that they’re great, because people tell you they like them and you like doing them and whatever. So just getting a little more specific with your numbers. Where exactly are my customers coming from? Which channels are working? Which are not working? I think that’s how you start to hone in on that problem.
Tara: Yeah, I’m so glad that you brought that up, because that is … That’s something I actually hear people get defensive about often is, well, I’m not going to try that because what I’m doing works for me. Like, well, really? Do you know? Have you compared it? Have you tested it against something? So that’s really great. So kind of the theme that I see us honing in on ourselves right now is risk, and entrepreneurship is all about risk. We’ve talked about risk I think in every single interview I’ve done so far. So can you tell me a time that you’ve taken a big risk and how that played out for you?
Laura: Yeah, I mean, I’ve taken so many risks. So starting Edgar was, which was a huge risk. So I launched Edgar in 2014. I had never done software before. I’m not a software developer. I’ve never, you know, worked for a software company in any capacity. So in some ways, like, once you run a business, you certainly have more knowledge about how to do it than people who haven’t, and there’s a lot of base knowledge there, but there also is even more than I expected software specific stuff that you have to learn about how to make a great product, you know, user interface, user onboarding, and when I had the idea for Edgar, I knew that I would use it. I always thought, okay, worst case scenario, I will use this in my own company. Even if no one else wants it, I’ll have a huge leg up in social media. But you know, I thought other people would want it as well, and to invest the time and money in creating Edgar, which was along the same lines as what I’d done before, right? It’s social media marketing software, but as a whole new business model was definitely very risky, but I was just … I was just really excited about the idea, and I think that was such a huge motivator for me is really wanting to both use myself and show people what I had built. Just that idea of like people are going to love this. This is going to be really, really cool, and this is something that I want to see in the world, and really helped me get past all the uncertainty, because there was … I didn’t do like any kind of focus groups or user testing, or you know, make like the fake beta and show people and see what they think. Like any of the sort of like lean startup stuff that you’re suppose to do. I didn’t do any of it.
Tara: Wow. That’s incredible.
Laura: You’re like, “That’s the most horrible idea. Good thing that worked out for you.”
Tara: Oh, no, it’s just not what I would have expected from you at all, so that’s really, really interesting. Yeah. So one thing that I was thinking about in regards to what’s really interesting about interviewing you about Edgar, and actually, maybe before I go on to ask that question, could you tell us specifically what Edgar is, because it is not like really anything else that’s out there on the market, and I say that as a user.
Laura: Yeah. So Edgar is a social media scheduling and automation tool. What’s really different about Edgar that is different from every other tool out there is that Edgar stores a library of all your updates, and then he, we like to call Edgar “he” because it sounds nicer than it, he sends out all those updates, cycling through them over and over again. So with other tools, you create your schedule or you create your queue of content, but it always runs out. You always have to add more and more. So the idea behind Edgar is you create this core library of great content and refine it and improve it and repeat it. So when you use Edgar, he handles scheduling of your social accounts automatically every day. You don’t have to go in and schedule everything yourself, and it’s a real game changer for our customers, because, I mean, actually, the thing that we get that’s so funny is people are like, “I don’t know if I should tell you this, but I fired someone who used to run social media for me. I feel sort of bad about it, but you know, I just pay you, and it’s a lot cheaper.”
So it saves a lot of time, and we see massive gains in the traffic that people see from social media, not because we do anything magical, but just because if you’re sending out links to your previous blog posts on autopilot every day, you’re going to have a lot more links on social than you used to just sort of trying to remember to do it yourself, so you’re going to see a lot more traffic.
Tara: Yeah, I have definitely seen a lot more traffic, and we don’t need to turn this into a plug, but I’ve seen a lot more traffic. I think it really, absolutely solved a problem for content creators like me and like so many other people out there.
So the question that I was going to ask before I had you talk about that was that I think with a lot of people that we have on, they are more traditional creatives or there’s a very kind of purpose driven, mission driven element to their businesses, and you’ve kind of hinted at the purpose or the mission behind your business, but it’s not as overt as it is in many other business, and so I’m kind of wondering if you could enlighten us as to what you are really trying to pursue through your business?
Laura: Yeah, that’s an interesting question, because I definitely am different in that way. I’m someone who loves business. I don’t actually consider myself a creative. I just am in that sense of like, oh, your creativity is entrepreneurship, which I know people say genuinely, but that’s just never really resonated with me. So, and it’s interesting, because this is something that I’ve thought about and actually have sort of felt bad about myself about, because I think, oh, I should be doing some, you know, business that like serves the world more. But the fact is, I think I would actually be happy, like if you gave me a dry cleaner to run, I would be like I’m going to kill it with the systems of this dry cleaner, and I would really enjoy it, because I love running a business, and so I extra love running a business that helps business.
Tara: Mmhmm.
Laura: You know, that’s the part that’s exciting to me about Edgar in particular is that, you know, we save people time, we save people money. We help them do more of whatever it is they’re creating. So I kind of see myself as the business … Like I love the idea of me being sort of the more businessy side helping people handle that side so they can go out and do whatever they love to do, and like not have to be on social media all day.
Tara: Yeah, I mean, the tool itself is all about getting more of other people’s ideas out into the world, right? And how could that be a bad thing, I think?
Laura: Yeah, yeah. And I actually, recently, I’m an executive producer of a TV show now called Eastsiders, which you can watch on Vimeo, go check it out. And I actually went to their premier party two nights ago, and that was really cool for me, because I’ve always had this dream of maybe like being able to be the business side of a creative venture. You know, letting people like my friend Kit, who creates TV shows and films and media that I think is really important and needs to be out in the world, I can support him by being like view as that boring business side, is the side that’s fun for me. So I would definitely like to explore that more.
Tara: Okay, so you have to tell me, how did that come about?
Laura: So I live in LA, so I just like know all these people that do all this cool creative stuff. I mean, that’s one of my favorite things about LA, is people are just always like, “Oh, yeah, and I’m making a movie this weekend if you want to come by.” Or this afternoon, I’m going to a friend’s photoshoot that she’s just like doing for fun, because it’s a fun creative thing. I’m like I’ll come bring my baby and hang out. Okay.
So yeah, I kind of became friends with this group of people that were all actors in Silver Lake and East LA, and Kit Williamson is the writer, creator, star of the show, and it’s called Eastsiders, and it’s just a show about gay men and their friends and families that live in Silver Lake, live on the Eastside, and it’s just like one of those just very human relationship shows, and he made the first season. He funded it on Kickstarter, he got it on Logo, which is a major TV channel that bought it, so it was very successful. So I told him, you know, if you ever do another season, I want to be a part of it, because I just really love what you’ve created. So now it’s real.
Tara: That is fantastic, and I am so excited to hear you doing that. I think that’s, yeah, I don’t know what more to say about that. I think it’s super cool.
So at the very beginning of the interview, you kind of, you said that, you know, you’ve made the changes in your business over the years based on, you know, your vision for what’s next. So what would you say is your vision for what’s next now? Even if it doesn’t involve necessarily a change in your business.
Laura: It’s actually a really difficult question. You know, I don’t have any sort of overarching plan for my career. It’s very step-by-step, so right now, the vision is just growing Edgar and reaching more people. You know, right now, we have about 3000 customers. Getting to 10,000 customers is really exciting.
Tara: Mmhmm.
Laura: And it’s exciting because like we said, those are real people. You know, all of our Edgar customers are real people. We just did a survey. 70% of our customers own the business.
Tara: Wow.
Laura: So these are really small business. These are businesses that are so small, the owner is setting up the social media themselves, and what’s so cool about that is that I know that we have a massive impact, you know? If you’re a one-person business, like, we’re really saving you a lot of time, and they’re people who self-identify as entrepreneurs, which you know, I just love. So that’s why growing is exciting to me. One, I get to solve these new challenges within the business of like what does it look like when your team has twenty people, and how do you need to change the structures, and how do you manage that, and how do you hire. So those challenges are fun for me, and just the idea of being able to help so many people grow their business is really motivating, too.
Tara: Awesome. Well, Laura, where can we find you online?
Laura: Yeah, so you can find Edgar at MeetEdgar.com, MeetEdgar on Twitter and on Facebook, and you can find me @LKR on Twitter.
Tara: All right, Laura Roeder, thank you so much for joining me.
Laura: Thank you.
Tara: On our next episode, we speak to Danielle LaPorte, creator of the Desire Map, and author of the Firestarter sessions about developing physical products from her ideas and paying attention to what you’re fantasizing about as the key to success.
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.
How to Keep an Eye On What’s Next Without Dropping the Ball: Interview with Sue B. Zimmerman
I thought I was talking with the “Queen of #Instagram” when I sat down to talk with Sue B. Zimmerman. Turns out, Sue is way more than the Queen of Instagram.
Her reign over Instagram marketing strategy is only the latest venture in a long line of entrepreneurial pursuits. Sue is actually a prognosticator. She always has her eye on what’s next–without dropping the ball in her current venture.
In a word, Sue is savvy.
And, her particular brand of “pursuit” is savviness incarnate. At the risk of sounding heavy-handed…
If you love staying on top of what’s coming, predicting trends, and riding the waves, Sue will feel like your soul-sister. If you’re not, Sue is an amazing resource for guiding you through those turbulent waters with ease.
Sue talked with me about her entrepreneurial history–including how she grew a $1 million boxer shorts brand. She shared the challenges of going from handmade to manufactured, selling her products at tradeshows, and dealing with big retailers.
She also shared where she looks for what’s coming next and how she equips the young people who work for her to be brand ambassadors. We talked about the struggles that come with giving up control and rapid growth. Plus, we talked about what’s next with Instagram and social media marketing in general.
Listen to the latest episode of Profit. Power. Pursuit. and pay special attention for the ways that Sue has created and empowered a community to spread her message.
Click here to listen in iTunes.
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