Some Thoughts on Compensation

Money Makes the World Go Around

People think about money a lot, and I’m no different. Especially recently, since I’m looking to make more as well as facing paying a lot out to people for various goods and services. Rent, legal bills, utilities, loans, maintenance, and much of the same things everyone has. Probably not in the same ratios, however.

I have mounting legal bills because of a divorce that has been in proceedings for around 7 months. We’re no closer today to closing our case than we were 7 months ago, but I’ve managed to amass thousands in legal bills for my lawyer’s services. That got me to thinking: what other jobs and fields are there where people get paid not based on results or outcome, but on product, and in some cases, just showing up day after day? My lawyer is very skilled in the courtroom and drafting/filing paperwork. He is very unskilled when it comes to managing an office (aside from reliably sending out invoices) and closing cases. But for divorce lawyers, there’s a conflict of interest in how they are compensated. It behooves them to keep the cases open because an open case represents a money tree. If he/she needs money, file a motion. Send an email or make a phone call. They bill down to 6 minutes at a time in some cases, and it’s not unheard of a divorce lawyer to charge $375 an hour. The retired judge who was handling our second round of mediation, which failed as expected, was surprised to learn my lawyer “only” charged $275 an hour. And for the mediator to show up and accomplish nothing, he himself was paid hundreds of dollars, as was my attorney. They basically passed notes back and forth between my wife and me on our behalf until I was forced to walk away.

In much of business, business owners hire employees based on their output capabilities. Labor is like a machine and is judged and paid based on that premise. It’s not depreciable, however. When looking for a job, the candidate must show that he/she can produce quality work consistently, under stress or whatever the position entails. That’s why it’s good to have a job where you can quantify your work accurately.  If you have one where it’s tricky to measure your output, so that you can justify your wages and justify increases, you might find yourself on the low end of the pay scale. Secondary school teachers face this. College professors don’t because their value to schools is in the ability to publish articles. The teaching aspect isn’t what is compensated, which is proven by the difference in what adjunct teachers are paid and tenure-track professors are. The difference between the two is only that the latter is expected to publish, and do service. The number of articles and level of journals that they appear in is easy to see, and the ones that do so at a high-level research school are paid more than those a lower level teaching school.

Government administrative jobs usually are viewed and compensated more on input than output. But that varies of course. In some cases, compensation is simply a reflection of what the other guy is making somewhere else. Although the public county school system I live in is one of the most poorly run in the country, the new superintendent just received over a $100,000 raise because that’s what some other people make elsewhere. It had nothing to do with the fact that the school system is on probation for all sorts of violations, the state is threatening to take over, and the superintendent was already doing the very same job for $100,000 less. Meanwhile today, teachers are picketing at the state capital and threatening a walkout over their pay packages.

Doctors are paid similarly as well, and “earn” comparably high salaries. They are paid whether you get well or die, however, not on the quality jobs they do. Just on whether they attend to you as a patient or not is why they’re paid. It’s why I’ve had to bring my little daughter to see a doctor, even though what was to take place could have been done over the phone. In order for the doctor to be paid by the insurance company, he needed to have the patient physically standing there.

Engineers are paid well, but they are paid on quality and scope of work. Makes sense. Executives are similarly paid. There are goals and metrics in place they must achieve. A lot of people speak poorly of the amount of money a CEO makes, but at least he/she can justify why or why they didn’t earn the money. The same can’t be said for many other professions though. It makes you wonder what types of people gravitate to each type of job? Some people are fine being judged by their work and have their pay depend on their productivity, like most salespeople. Others rely on protections to warrant a paycheck, whether they do a good job or not, or at all. Union jobs, tenured jobs, political jobs, etc…

 

The 2 Worlds of Marketing

Most people don’t give marketing much thought. Which is how marketers like it. But with so many people online these days, it’s impossible to avoid online marketers trying every trick in the book to lure you into buying their products and services. That’s why a lot of people confuse marketing with sales. Sales are part of marketing, but marketing isn’t really a part of sales.

And with so many companies and people trying to sell stuff online, there has emerged a very large cottage industry of “digital” marketers. I even label myself as such depending on who I’m marketing myself to. My background is that of traditional marketing, however, which is a completely different field. During the years by running an online business, I’ve learned all there is about digital marketing as well, and even have certifications in it, for whatever they’re worth.

You’ll see a lot of familiar names, especially if you hang out on LinkedIn, such as Neil Patel, Larry Kim, Gary Vaynerchuk and Neal Schaffer. What you’ll also notice in these people’s bios is that they’re speakers and authors as well(and quite well-paid consultants). Their names always appear on the “must-follow” and “most influential” lists of marketers.

But that’s misleading. And that’s because you have to know what marketing really is, which most people don’t. They think it has to do with sales and advertising. Which it does, but that isn’t what it is.

A good example is this article that landed in my inbox which is “21 Questions to Ask before Implementing Marketing Automation.” It begins with a SHOCKING! statistic that less than 10% of companies have implemented automated marketing. That’s most likely because they aren’t talking about marketing. It’s “Sales Lead Software.” The sales department would be handling this, not marketing. Marketing for the product/service was primarily done long ago when the marketing plan was being executed. This whole article is geared more toward sales, not marketing, but it has “marketing” littered throughout it.

Marketing is about satisfying people’s wants and needs in, hopefully, an innovative way. Doesn’t have to be innovative, but in a competitive setting like business it should be to be successful. And there are lots of innovative ways to go about that task using the internet. And within that space, these folks are pretty good at marketing. Themselves. To people that are also looking to reach a large target market, like they do with themselves. This is where it begins to get blurry.

Traditional marketing consists of market research using any number of tools such as surveys, interviews, focus groups, and so on to determine the size of the target market, the interest in the product or service and associated features, and whether there’s even a market at all. A detailed inspection is done with regards to the environmental aspects that surround the product/service, such as governmental/regulatory issues, geographical issues, technological, political, and competitive factors that need to be considered. Usually, a great amount of data are collected to analyze using multivariate testing and regression analysis and the whole affair is heavily quantified and then manipulated and many, many complex Excel spreadsheets are created with lots of graphs and charts to illustrate the findings. This is what CMOs and highly-paid consultants do for companies, and what you learn to do when you get an MBA like I did. And you can dive even deeper, like I did, and concentrate in marketing strategy.

Contrast that with digital marketing, which consists mostly of getting followers, “likes,” getting people to engage with your blog posts, and sign up for newsletters and email lists. It’s really more “sales” than marketing. Hubspot, which has become a multibillion-dollar company by helping small businesses market themselves, specializes in “inbound marketing,” as it’s commonly known, but in fact is a series of sales tactics. It also involves SEO, which is simply staying on top of best practices to rank in Google’s ever-changing algorithms.

The people mentioned earlier are adept at leading people down the sales funnel via trial and error of growing their own personal fan base over the years, but likely have never spent much time actually studying marketing, per se. They are charismatic, and have good sales chops, have found their niche, but would have a hard time telling you what a p-value is used for. What makes these “marketing influencers” money is speaking gigs and book sales, and not so much bare-metal marketing.

For me personally, I’ve found it’s best to be versed in both traditional and digital marketing. Digital marketing is a supplement to traditional and is a valuable, and I’d even argue necessary, set of tools in ths day and age. It’s sort of rare to find that set of skills as I look around, however. Thus the 2 separate worlds of marketing that are developing. Universities don’t teach digital marketing. It’s something that changes too quickly and involves trends, dynamic coding, writing skills, design and schools simply aren’t agile enough to properly equip anyone to be effective. And the digital marketers don’t typically mess with the academic world of traditional marketing. You might find a few people that happen to have an MBA or a Masters in Marketing, but it’s usually just coincidental.

So How’s The Marketing Going?

Marketing Accountability

So time to check in with results since my last post. I’m doing pretty well, actually. I’m growing my Twitter base in a hockey stick fashion and getting a lot more eyeballs on my LinkedIn profile, Facebook pages and groups and my numbers on my marketing blog and here are starting an upward trend. The key is consistency. Finding a sweet spot as far as types of content that resonate with my audience and discovering what times of the day is best to send it out. My biggest challenge is having a toddler to watch after, which I cherish and comes as my top priority, so at that expense go my marketing efforts. I can’t stay consistent just yet because I have other priorities.

iphone looking at twitter

In addition to marketing that site, I’ve also burdened myself with hosting a Product Hunt Hackathon here in Louisville, and I’ll be building a product myself, which will be an audible desktop penpal setup, and down the line have it work with Alexa and iOS software. It’s for the blind or illiterate who would like to have a pen pal but would rather speak their message to their pen pal instead of writing it and mail it and wait. It’s just a side project to mess around with. I’ll have it hosted at penpals.fun. So I’m putting that on my plate along with looking for a full-time job and taking care of a 2-year-old, a 16-year-old dog and a cat. And sometimes, apparently, a very well-fed possum.

product hunt

What’s the biggest benefit of this marketing effort is that I’m learning a TON of digital marketing tips and techniques and staying on top of the bleeding edge marketing stuff. Machine Learning and AI and VR marketing, for example. I’m able to stay on top of the latest marketing trends and automation tools and am trying out a bunch of them to see what works best for what type of work. A lot of what’s out there is the same version of a product, with small iterations changed and a different feature here and there. I’m finding a lot of money doesn’t need t be spent to access some pretty powerful tools, and for a usually reasonable fee, you can get your hands on some really powerful gear. Google is especially generous with their software.

So I’m still forging ahead, and making gains, which are humble but what’s to be expected in the embryonic stages of such an endeavor. I’ve done this enough to know that it takes time. Tha’s the biggest power the internet has: the effect of time.

 

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Cranking Marketing up to 11

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If you’re in the marketing business, you surely are familiar with what the marketing landscape looks like online: it’s packed with tools, tips, articles, software, and “pros” offering advice and products to help you learn more about, boost and help you and companies with all types of marketing. Sounds great, right?

Problem is, there are a lot of different types of marketing. Inbound, content, SEO, SEM, digital, automation, branding, product, email, affiliate, and over a hundred more at least.  And then subcategories of those. It gets to be messy fast, and marketers being marketers, many of them are in it to make a buck or two. Or a lot more. And the range of knowledge and experience and authenticity of those marketers that want to help you is all over the place. People with no marketing experience at all, who’ve gotten their “skills” from reading other people’s articles, to marketing professors who are into academic marketing, to legitimate digital marketers, to hobbyists, to…. You get the point. A lot of what you see online is about affiliate marketing, which personally I’d put near the bottom of the list of legitimacy, to more academic and B2B marketing/digital that incorporates a bundle of skills which includes SEO, content, SEM, display, and a pretty big marketing mix. That may or may not include developing one or more sales funnels that rely on inbound marketing using platforms like HubSpot and Salesforce. I’d place that somewhere near the top, alongside “academic” marketing, although academia is woefully outdated and out of touch with the realities of practical marketing in the modern world. It’s where much research and marketing studies are generated, alongside consulting firms that release complex case studies like McKinsey.

What you tend to learn in school is purely theoretical, with possibly a few case studies and maybe some real-world experience comprised of teamwork, working on an actual marketing problem that a business is willing to let students work on for free/experience. That’s typically found in graduate-level work at the better schools, and even then, it doesn’t teach you much of anything about real digital marketing whatsoever and what the skills and tools are you need to know to get a job doing it. You have to teach yourself or learn on the job, which is more and more unlikely that you’ll find an employer willing to pay to train you in 2017 when there are a lot of people that already are trained. My tenured professor wife knows nothing about business itself and wouldn’t know what she was even looking at if you showed her a Google Analytics or Infusionsoft dashboard, or anything about SEO at all, for example. It’s the same with law school; it doesn’t teach you lawyering or how to practice law, just the dry research and academic aspects. It’s also why we’re seeing people like Steve Wozniak and organizations/companies like Google funding and setting up schools and other training programs that simply leapfrog underperforming, overpriced colleges that aren’t preparing students for actual work whatsoever.

There’s also a wide range of quality when it comes to marketing programs in Universities as well. Top-tier schools, of course, will offer that in spades, but 80% of marketing degrees come from schools most people have never heard of, in accelerated 1-year programs that aren’t really worth much all.  And even if they do offer a respectable opportunity to learn marketing, that’s not to say the students will take advantage of it. I cite my own experience of teaching marketing management at a local University to 35 students as an adjunct professor. The top students were motivated and walked out with some good tools and knowledge. The bottom never bothered to even learn the definition of marketing, even though I told them repeatedly if they only learned one thing in that class, the definition of marketing should be it. And the last question on my final exam was: “What is the definition of marketing?” Guess what? People still got it totally wrong.

So the point is, it’s like wading through an ocean of misinformation and an overabundance of barely-relevant information and tools and advice, much of which contradicts or is poorly-communicated to the point of being utterly confusing. I know this because I’ve spent the past 6+ years online plowing through it all on almost a daily basis. I also have an MBA with a concentration in marketing strategy. I’ve also taught marketing management at the University level, as I mentioned And if that wasn’t enough immersion, I’ve been married to a marketing professor who I traveled alongside with through her Ph.D. program and all which that life entailed. Marketing has been the world I’ve inhabited for nearly a decade. And I’m presently on the hunt for a digital marketing job now myself and am preparing myself for such a role so when I get one, which hopefully is soon, I can hit the ground running in every way.

What I’ve decided to do is create a website that will be the headquarters for a digital marketing hub, with a Facebook page and a Facebook group to supplement it, and grow a community around it for relevant discussion and ideas. It’ll take time to grow organically which I realize — I don’t plan on advertising to grow it or worry about monetizing it or anything, and I’ve built some decent sized communities online before for various concerns like web development and design, so I know what it takes and what to expect. And that’s fine; what that strategy eventually yields is high-quality and manageable, which are among the most important criteria.

Plus I think it’ll not only be fun but will serve as a great resource for my new digital marketing job. If I get the one that I really want and think I have a great shot at, it’ll be perfect. And it’ll be something rewarding I can share and work on as a highly productive side project as well.

So if you’re into digital marketing or any type of “legitimate” marketing, come take a look, join and participate! And let me know what you think; criticism and ideas are the driving force behind its growth and quality standards. There will be tools, tips, strategy, discussion and marketing resources galore.

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