"The What, How, Where"

Social Media Best Practices

Passing Risk….. Good for Wall Street, but is it Good for the economy?

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For better or worse, we’re in the era of the “sharing economy”. Hilariously chronicled in this Portlandia sketch, it seems like one can rent anything these days from dresses (renttherunway), to homes (Airbnb) to one’s car (Uber).
I often wonder why Airbnb and Uber are lumped together. From the outside, they both appear to have similar business models, but Uber’s takes a vastly different approach by seeking to control the entire process, from onboarding of drivers to point of sale.
If we look at different business models over the years, we’ve witnessed the rise of the corporation in the first half of the twentieth century (Standard Oil, General Electric, IBM). These businesses sought to control all aspects of the business from production, distribution and sales. The second half of the 20th century introduced the franchise model. The best example is McDonalds, where both the corporation and the individual proprietor shared risk. This allowed fast food restaurants, hotel chains and insurance carriers to scale quickly. By the end of the 20th century, we started seeing businesses like eBay and Craigslist match buyers and sellers together to create a new distribution of commerce, disrupting an industry, such as the classified section of newspapers. In the second decade of the 21st century, we’re seeing this model scale with a wide variety of disruptive technologies from Airbnb (Lodging), Yelp/Tripadvisor (Travel Reviews); but by far the biggest disruptive technology today is Uber.
Not only is Uber disrupting the Taxi/Livery market, it seeks to control both ends of spectrum by setting the rates for drivers, as well as what buyers are willing to pay for rides.  This leads me to ask, are businesses who pass risk to others “good for the economy”
This is not just limited to Uber, as there are other noteworthy examples:
Motion Picture Industry:
– Most of the Academy Award nominations were produced by independent production companies, not major Hollywood Studios
–  The vast majority of tabasco plants are grown outside the Tabasco plantation in Louisiana.
– 97% of chickens are produced via contract farms
– FedEx is moving away from the contractor model, which might foreshadow a necessary direction for Uber
– MaryKay and Avon have employed independent contractors for years
Remove from consideration the driverless cars which may or may not be coming by 2040 (Silicon Valley thinks this will be widely adapted, but so did the US Government with the Metric System in the 1970’s and I don’t see anyone buying a liter of gas in this country.)
There’s an extensive amount of risk with UBER’s business model to sustain profitability. It is estimated most drivers who start are not there by years end. This dramatic turnover looks more like Amway or Avon. This is a HUGE issue for UBER. If passengers cannot find a ride quickly, theywill go to other services. The arbitrary approach UBER is taking to keep their drivers, which according to a reporter at City Paper, you’re fired if you don’t maintain a 4.6 Rating, plus there’s no way for a driver to dispute their ratings with Uber or a third party will only hurt their ability to scale. Also, with recent cash infusions from Carl Icahn at Lyft as well as other car sharing services starting to secure funding; this is going to get very competitive.
So what’s in UBER’s immediate Future? Fantastic Investment or Folly?
Clearly, UBER is engaging in unrivaled scalability; no other player can match this at the moment. However, unlike other tech companies, like Facebook, the cost to switch services is very cheap.
Here’s a snapshot of Uber’s competition and the unexpected winners:
Livery and Taxi Services (Yes traditional livery services and taxis will adapt)
The dominant winner in the battle may oddly not be UBER, or for that matter, any company. The winners will probably be the drivers themselves. Remember, people buy from whom they trust and the best drivers will be rewarded for good work. I equate this to the human equivalent of a strong YELP/Tripadvisor review. The community will decide who’s good and those drivers who benefit from that will decide where they want to work.
That makes UBER more like Century 21 or Coldwell Banker than a tech company. All they’re doing is connecting buyers and sellers. If they don’t have good drivers, their business will fail.
Furthermore, I think there are a good number of folks who see the need for a ride as a commodity. They’re not going to care if it’s UBER, Lyft or a Taxi – they simply need to get to their destination as quickly and cheaply as possible. That’s why I think you’ll see an app that will layer all these services on top of each other (think a taxi version of Kayak). Drivers are all using Lyft, Uber and Sidecar at the same time to find the best deal? Why can’t consumers select their service similarly?
In the short term, passing risk might sound like a very attractive business plan. However, given that UBER doesn’t own cars and relies on drivers to get customers from point A to point B, there’s a serious flaw here. They’re not so much creating a new means of transportation, but rather they are changing the way we interact with it. Furthermore, their arrogance and negative publicity may have crossed a line both with their customers and the general perception of the company.
In the long-term, it seems like the UBER risk model may be a nasty headache for Wall Street, one paved with lawsuits and lost shareholder value.

Written by Derek Reese

August 3, 2015 at 12:16 am

Posted in Uncategorized

How Technology Disruption Could Devalue Sports Franchises

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Twenty years ago, I wondered why sports teams were being sold for hundreds of millions of dollars, a seemingly exorbitant amount. Today, almost every NFL team is worth at least one billion dollars, according to Forbes. Most large market Baseball and Basketball teams are now worth over $500 million.  Why the high value? Is it only wacky owners like Mark Cuban and Daniel Snyder who are willing to pay those high prices? The reality is they’re savvy and have made a wise investment. A few years ago, the NFL negotiated with the major networks and sealed a $27 billion deal in television contracts, according to the New York Times. These rights, as well as the local sports programming fee (commonly known as the sports tax), have helped provide lucrative revenue streams whether the viewer is watching or not. By some estimates, this is costing subscriber households $100 per year.
The Cord cutting band wagon has been accelerating for the last few months, with MoffettNathanson Research estimating 31K customers have cut their cable television subscriptions. That may not sound like much, considering Time Warner Cable generates $20 billion a year, but it’s concerns Verizon Fios, who launched slimmed down offerings for customers last month, increasing options for subcribers.  While it’s not quite “pay for what you want”, it’s a step in the right direction for consumers.
While cable and phone companies are starting to address consumer demand for increased choice, sports teams are at the highest risk since consumers pay the most for sports channel access. According to SNL Kagan, Yankees Entertainment Sports charges the cable companies $2.99 per month for access. That’s almost $36 per year per household. When you factor in the 7.3 million households in the New York Metro area, that’s  half a billion dollars per year for YES, whether someone is watching or not. For a network that averages 68K viewers during primetime, this clearly shows the vast majority of viewers who pay for the service aren’t tuning in. While the Yankees currently own 20% (Fox Owns 80%)  20% these days (Fox owns 80%), there’s a vested interest for the Yankees in making sure the entire New York Metro area pays this fee.
However, with consumers gravitating to services like NetFlix, Hulu and the recently launched HBO Now, we’re seeing sports leagues react. The NFL, for example,  is responding with their games being offered on Verizon Mobile. The reality is, however, these new services are not new revenue streams for sports teams, but a replacement. For example, if  $3MM million households decided to drop the YES network, this would result in $108 million in lost fees. To make up that gap the sports networks will have to offer their core fan base new experiences they’re willing to pay for, as well as creatively sell the franchise abroad, much like the Manchester United has done in the states.
Either way, I don’t see how these fees can continue to last. This is one issue Libertarians and Liberals can agree on.

Written by Derek Reese

June 8, 2015 at 3:04 am

Posted in Uncategorized

Offline Meets Online, How to Use Your Social Networking Skills in Real Life Situations

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As much as business connections have moved online with the advent of LinkedIn, Twitter and Facebook, “Face to Face” is still King when making new connections. But how do you leverage both in this Web 2.0 world? In this post I will examine best practices.

Recently over drinks I was chatting with a seasoned salesperson who eloquently informed me that “It’s never been so easy, yet so hard to do business”. The environment we’re in has created a double-edged sword. Through digital technology (blogs, social networks and websites) it’s never been easier to understand who our customers are and what they need. However, this has resulted in the bar being raised with customers who are more demanding, impolite and curt than ever before.

But as much as things are changing at a rapid pace, networking events are still very relevant. They may have evolved, but have not completely changed in that they continue to be noisy, crowded and full of libations.  So how do you make the most of them?

1-    Before the event

With many events powered by MeetUp, Eventbrite and Facebook it has become easier to see who will be attending. Not only does this give you validation as to whether it’s worthwhile, but also provides you with great insights as to whom you need to be in contact with. Use social networks to secure information on who they are.


2-    During the event

For most, meeting new people is one of life’s daunting challenges. If there’s someone who I find important that I might not know, I like to use my smartphone apps to locate their LinkedIn Profile. To dive deeper as to what they’re thinking I use Google Search to discover what they’re saying on Twitter (Google provides better results on finding the person than Twitter itself). Think this is intrusive? Within a few years facial recognition technology will allow you take a picture of a person and bring up their entire social graph.

The good news is that age-old rules still apply when making a new acquaintance.  A couple of points I find that work for me are:

A-    When the moment presents itself (do not interrupt an ongoing conversation), introduce yourself with what’s known as an  “Open Face”. This can be described as the warm feeling you get when you see a baby or puppy for the 1st time; pass that happiness on to the other person.  Smile, but be natural.

B-    If possible, shake that person’s hand and introduce yourself. Say something nice about them or their company, but be genuine.

C-    Be generally interested in what that person has to say and add value.

D-   When speaking about your own business, convey a one or two sentence value proposition that will instantly make that person understand what you do.

E-    Don’t talk at length about your business. Talk about their business or topic of importance to them.  Remember, that everyone wants to feel important and special.

F-    Don’t overstay your welcome. If that prospect is the decision maker, ask for a business card and leave with value; offer to do something for that person (send a case study or client example)


3-    After the event

For prospects you find want to build a business relationship with, your follow-up is key.  If you want to really stand out, a personal handwritten note will wow any executive, but a brief e-mail that is followed by a LinkedIn invite or Twitter follow is customary these days. Think of the e-mail like an actual handwritten note; but keep it short, sweet and to the point. Mention how you met, what you discussed, attach follow-up items (articles or case studies) and outline next steps. If you feel your impression was strong enough, by all means and ask for a follow-up meeting.  These executives are inundated with e-mails all day long, so make sure you have a strong subject line. I like to cite my own name as well as the value I’m offering in the e-mail “Derek Reese from XYZ, Case Study on Small Business”. Avoid terms like “Hi, Opportunity and Savings” because these are triggers for your e-mail to wind up in their spam folder.

If you think this company is a strong target, you might want to set up an RSS feed from their news page or Google alert, these will give you key insights into changes in the company.

Most importantly! Add value when you communicate in the future.

If you have any direct questions, please feel free to contact me on LinkedIn or follow me on Twitter.

Written by Derek Reese

July 28, 2011 at 1:22 pm

Socializing Your Employees: How to help your employees be better online business ambassadors

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Best Buy has their employees engage in Twitter streams. IBM and Intel are encouraging blog participation. Big business is embracing social media in a big way. So what does this mean for you as a small business owner? How can you leverage your best assets–your employees– to spread the word about your brand without damaging the reputation of your business?

Whether you like it or not, your employees are engaged in social media activities tied to your business. If they have a LinkedIn professional profile or include work history on their Facebook page, they’re already representing your business online. While this might be of concern, there are advantages by having more feet on the ground spreading the message of your brand.

For example, your employees can leverage their social graph by Tweeting your blog posts, answer questions related to your business on Quora, or connect to the right decision makers on LinkedIn.

Communicate Expectations 

Imagine social media is at a cocktail party and your employees are there with current and prospective clients. What do you want your employees to say, and how can you use this medium to generate more business? Adrian Dayton, a social media consultant from Buffalo, NY, suggests encouraging those employees who are already good networkers to be more active, and emphasize the importance of relevancy. “Make sure your employees post comments people want to read.”

He advises having a transparent discussion with your employees about how everyone should behave online. Develop a working consensus on best practices, including how to act, where your business should participate, and what information should be conveyed back to you. Think of it almost like a storefront; how your employees behave in front of customers should be an example of how they should approach the digital environment.

Jaime Gracia, owner of Seville Government Consulting in Washington, DC, suggests taking it a step further by formalizing your expectations. He says that when an employee is identified as working for your organization it’s important to “set policies on how employees use social media and how they reference their employers on social sites.” You may want to create a best practices guide for your employees to reference.

In taking a look around the web, here are some helpful tips used by the world’s leading brands that can apply to any size business:

  • Be a good listener: Don’t sell your product, understand the needs of the community and provide value.
  • Respect the opinions of others and engage in a professional manner: Comes down to the golden rule, treat others how you want to be treated.
  • When in doubt, do not post: If you have reservations about what you’re writing, hold off and secure approval.
  • Be responsive and follow up quickly: Think of social media as real-time conversations, make sure you’re not only proactive, but respond back in a timely manner (within a few hours if possible).
  • Admit mistakes and be the first to respond to them: Because the Internet xis permanent, it’s best not to spin information. Admit you’re wrong; the community will respect you for this.
  • Always identify who you are and the company you represent: If you’re speaking on behalf of your employer make sure you acknowledge who you are, your role, and what your company does. This helps gain legitimacy in the conversation.
  • Stick with your area of expertise and provide a unique individual perspective: Comment only on issues you have the knowledge to speak Remember social media is about people, not companies.
  • Give credit where credit is due: Remember to protect confidential and proprietary information. It’s important to cite other sources, but also be cognizant of information that should not be released externally.

Getting Started 

Social media can be overwhelming for a small business owner, let alone their employees. Start small by encouraging your employees to tweet or share company blog posts and press releases. Another idea is to have employees connect with each other on social networks such as LinkedIn or Twitter; that way you’re growing your sphere of influence. Set up team discussions related to this topic. Remember, social media shouldn’t just fall to you.

Don’t ask yourself whether it’s wise to have employees use social media, but ask about the risks for not participating. How is your competition taking advantage? What potential customers are you missing? How will potential customers understand what you’re about if they don’t know who’s working for you?

Derek Reese is a social media advocate who works with a variety of businesses on implementing their integrated marketing solutions, as well as consulting on social media best practices. Find him on LinkedIn and on Twitter.

6 Apps That Will Improve Productivity

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According to Apple, there are 350K iPhone Applications, with Android catching up fast at over 100K. With such an array of options, what are the BEST to make you more productive? In this post I will examine six I use on a daily basis.

So what makes a good application? I find it bridges mobile with notebook/desktop/cloud/offline, providing a seamless experience that allows you to easily find the information you’re looking for and/or store it for later use. Of course, it’s something used on regular basis and probably will be missed if removed.


1-    Instapaper: $4.99 (iPhone/Android)

One of the biggest challenges I face in my day-to-day routine is time management. There’s so much information coming at you, especially when it comes to news/information related to your industry. You don’t want to miss these messages, but it also can be difficult to read these right away. I find Instapaper to be an amazing solution because I can quickly bookmark articles/webpages and convert them to “text” format so I can read them later. While traveling or commuting, I can easily pull these articles at my convenience, instead of having 20 browsers open at the end of the day.


2-    Evernote: FREE  (iPhone, Android/Blackberry)

I often come up with my best ideas on the go. Before Evernote, I used to scribble down these ideas on a napkin, credit card receipt or in a notebook, or other places where they are easily lost. Evernote allows me to keep those ideas organized in a central location that I can access at a later time. What I like about this application is that I can take an idea I’ve started on my smartphone and continue working with it on my computer because they’re synched together.

3-    Dropbox: FREE (iPhone and Android)

Dropbox provides a central storage point and nice back-up system for files you’re working on. Plus it works well with large files. For example, your team might be working collaboratively on a project. Rather than wasting time and requesting the latest version (and waiting for that version), you can speed up the process by going directly into the file. Also, if your smartphone has limited memory or needs back up, you can easily move/copy files to Dropbox.

4-    Weekly Cal:  $1.99 (iPhone Only)

Your calendar is your lifeline and the good folks at Utilitap have improved the iPhone calendar by offering you a weekly view, as well as full calendar support (Google/Outlook). Most importantly, I find the drag and drop functionality to be useful for someone on the go. Let’s say that your client suddenly wants to change tomorrow’s meeting to the following day. Instead of opening the event and manually changing the time, you can now “drag and drop” to the new time.

5-    Tripit: FREE (iPhone /Android/Blackberry)

Trip-It is terrific because you can build itineraries without having to input information- it does the work for you. For example, let’s say you have a trip to Atlanta on Tuesday. You booked your flight/hotel/car rental on different days via different e-mail addresses. What’s amazing is you can e-mail each one of these to Trip-It and they will create a profile for the trip. So when you get to the airport, you know what flight to take, find your car rental when you land and drive to the right hotel, all without wasting time trying to find various e-mail confirmation numbers.

6-    Yelp: FREE (iPhone and Android)

While Google maps are great for finding a client’s office; if you’re on the go and need to find a coffee shop, restaurant or dry cleaners now and not familiar with the area, Yelp is a great resource. The service enhances Google Maps by pairing product reviews with location-based search. So not only can one find what restaurants are good nearby, you can filter by price, cuisine, or distance. Once a suitable venue is located, Yelp uses Google Maps to produce directions.

With new applications are being developed everyday, I’m sure this list will change quickly. What ones are helping your productivity?

New York’s Best Kept Secret for FREE WiFi

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It’s 5:00pm. You’ve completed an amazing presentation in Midtown Manhattan and are gearing up to head to Grand Central Station so you can catch your kid’s soccer game. You check your Blackberry to make sure everything is okay at the home office when low and behold you receive an e-mail from the client asking for supporting documentation for your proposal. You can’t send a response via text and you’re too far away from your office. What do you do? You need WiFi NOW!

Conventional wisdom says find a Starbucks or use a FREE WiFi app locator. Being a road warrior in Manhattan I find the WiFi dicey. As much as Starbucks is everywhere, it can be often crowded and difficult to concentrate (same goes for McDonald’s). You can try one of the dozens of hotels in Manhattan, but some offer free access and others don’t. Some of the parks offer free access (i.e. Bryant Park) but with winter temps around 30 degrees who wants to work outside? What’s the “on the go” executive to do?

What if I were to tell you there’s a viable solution with 32 locations in Manhattan? What if I also said that they are quiet and give you ample room to work? Best of all it’s FREE and you don’t even need to be a member. Would you be interested? The solution I’m talking about is the New York Public Library. Near Grand Central Station alone there are 3 locations, all with high-speed internet access. It’s a great place to duck in if you need a half hour to be productive.

Locations/Hours of Operations

Please note while it’s never a problem securing work space, many locations close at 6pm.

What’s best about the New York Public Library is that you don’t need a membership to gain access, don’t have to fight others for a table or even purchase a cup of coffee.

It can be your office away from the office.

Written by Derek Reese

March 13, 2011 at 9:23 pm

“How to use Social Media to close more business” Part 2: Twitter

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If Rip van Winkle woke up today to discover Twitter, I’d be pressed to say he’d be amazed at how boring people are. Do you really care that someone is “grabbing a cup of coffee” or “stuck in traffic”? Besides all the noise (Forrester Research in September 2010 estimated 72% of posts are not even viewed), what’s the relevancy? Beyond the pointless posts, Twitter is game-changer and something a business development professional should pay attention to. At no time in human history has there been a platform that conveys human thoughts and shared knowledge in real time. You’re probably thinking while it’s great that millions of people are expressing their thoughts, how does this increase sales? In this post I will examine further.

I find the more information you have about a client, the more fruitful the conversation. I suggest using Twitter to listen to what your prospect is saying as well as how others perceive the prospect’s company. Think of it as your ability to listen to what’s important to them both personally and professionally. While a company’s website might give you insights into their objectives, tweets from executives can give you valuable information into what’s important to them. Company tweets bring major projects directly to your attention, giving you a reason to engage in a conversation.


So how do you begin?

I find the best way to start is by following the company as well as key executives employed there. Almost all major corporations and even a great number of small and medium size businesses have official Twitter feeds. This is a great resource to gain understanding of what products they’re developing, offers in market or major news items. A simple way to keep up with what’s happening is the “follow” tab directly on their Twitter page.

Besides the official company voice there are numerous people talking about your prospects in real time (crowdsourcing effect). Try using a hashtag (#) in the search bar to find out what discussions are happening. This should give you trends that you can share with the customer as well as understand some of the challenges they face.

While there’s tons of noise on Twitter, if it’s the right chatter you’d be interested, correct?    If you have a robust LinkedIn Network (100+ connections) and are connected to your customers on this platform, I suggest following your already established network on Twitter. Alex Blom, a social media strategist has some great tips on exporting your LinkedIn contacts to Twitter.

Finally you should consider following relevant thought leaders and major industry publications. For example, I follow thought leaders such as Chris Anderson, Kara Swisher, and Bill Gates as well as publications  Ad Age, Brandweek, Harvard Business Review.This helps me keep up to date on what’s happening so I can have intelligent conversations with my customers.


Now that you have a robust database of hundreds of people you’re following, what are the best ways to listen to what they’re saying? While Twitter might be adequate if there isn’t a great deal of conversation in your network, it can be laborious if you have a large one.

A few months back the New York Enterprise Report had an excellent post “New Ways to Surf the Social Media Wave”. This should give you some great ideas on ways to manage your social graph. Here are some additional suggestions:

Tweetdeck – The industry standard for managing one’s social graph

Hootsuite – Web based application

If you’re an executive on the go, options really depend on the device you carry. I have a Blackberry, so I find the Twitter Blackberry application works effectively for me. If you have Android or iPhone devices, TweetDeck has created applications that work with these systems.


You’re following the connections most important to you and listening to what they have to say, so what’s next? Once you’ve established your presence, it’s time to engage with your network through tweets. A few years ago I was at a social media summit and the speaker was asked how best to approach Twitter, what he said stuck with me. He mentioned you need to tailor your content to the audience you’re looking to reach. Think it about it from their perspective. Will they be interested in reading your post? What irks you about other posts probably is ditto for your network, so it’s best to keep those traffic jams and cups of coffee at Starbucks to yourself. Focus on information that’s relevant. So what’s relevant? Keeping in mind that Twitter is public forum, I find it’s topical issues, news/information, or any information from your company that can be released externally.

For best practices, check out these guidelines from Kodak, Coca-Cola and IBM.

While it’s great to post relevant information to your community, I don’t find the “if you build it they will come strategy” to be most effective. You need to interact directly with your customers.

Re-tweet their posts, mention them directly in your tweets (ie @billgates stated Technology is important in schools, here’s a study). MOST IMPORTANTLY you now have reasons to connect with your customers directly. If your prospect is talking about Topic X and you have a solution for that problem, then you have a reason to fire off an e-mail or make a call since the issue is relevant to them. Make sure you reference their Twitter post. You’ll be surprised at how many people aren’t doing this. Think about it. Twitter can be your golden goose by giving you real time information on what your prospects are thinking. They’re telling you directly what’s important to them. Take advantage of this information.

Stayed tuned for my next post on Facebook best practices.

If you have any direct questions, please feel free to contact me on LinkedIn or follow me on Twitter.

Derek Reese

Written by Derek Reese

January 1, 2011 at 12:36 am