Want to invest? Why not consider global markets.

From Bevans Branham of Palm Springs, CA:

Every year, venture capitalists are asked about their thoughts regarding investing outside of their home country. It seems to make sense that these types of investments would be very lucrative, countries outside of America account for 86% of the users of top internet sites like Facebook, Twitter, LinkedIn, etc. Shouldn’t venture capitalists be tapping into this market as well?

Well, it turns out that many of these investors who spend so much time and money in their home country (usually Silicone Valley area) are very averse to investing in companies outside of the United States. What are some of the reasons that this is happening, and what can we do about it to ensure that we don’t miss the next big tech wave?

1) Home Bias

It shouldn’t be a huge surprise to anyone when I say that venture capitalists usually have a hometown bias. If you grew up, went to school, started your first company, and currently reside in an area like Silicone Valley or New York City it’s very likely that you’re going to think that companies and talent from that particular area is top-notch. This type of bias happens all the time (and not just with VC’s), so it’s no surprise that when it comes to spending money, VC’s are a little nepotistic.

2) Physical Proximity

If you’re investing in an early-stage startup it’s very likely that you’re going to want to be involved in many of the decisions that this company is going to be making. If it requires a 10 hour flight for you to get to a board meeting, this could be a major barrier to you being as effective with this company as opposed to one which is located in your hometown. Because of this, many VC’s don’t want to invest in potentially-good companies not located near them because they feel as though they won’t be able to help out as much as they’d like to.

Though there are these obstacles, this shouldn’t deter everyone from investing abroad. In fact, entrepreneurs all over say that Silicon Valley knowledge and expertise in places like China, Japan, Africa, and Mexico is in very high demand. If an investment company were able to secure locations in these areas it’s very likely that they would be a hit among the entrepreneurs of the area. Along with that, they would have the unique ability to invest in companies that Silicon Valley based investment firms would be too afraid to invest in. Hopefully these barriers will be eliminated in the near future so we don’t miss the boat on the big companies of the next 10 years.

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Seth Godin on the Future of Online Education

New post from Bevans Branham

Seth Godin is considered a marketing expert and innovator, credited by many marketers as an influential figure in how people think about marketing in the 21^st century. With 17 bestselling books and what many people consider the most popular marketing blog in the world, American Way Magazine has considered Godin “America’s Greatest Marketer”.

Godin recently partnered up with Skillshare.com, an international community of knowledge seekers, to release a repertoire of marketing comprehension as an online class called “Modern Marketing Workshop.” This class would act as an interactive way for students to understand a marketing framework to make the right decisions, measure the correct metrics, and fight for what they think matters.

In an interview with Forbes, Dan Schawbel catches up with Godin to ask him about the future of education, the marketing world today, and how to prosper in our current economy.

The first question Dan asks is weather the future of education is heading towards online education and who the winners and losers are. Godin explains that education now a day is about compliance and proving that students know how to obey. Online education “is offering classes for people who want to learn, instead of those being forced to comply. What it does is open the door for people who realize that gaining skills (as opposed to memorizing facts) is a shortcut to achieving their goals.” With this accessibility of education and freedom of education, motivated learners will take advantage of online education to learn problem solving and leadership skills, while lesser-known educational institutions might suffer from student backlash.

Dan’s next question has to do with why Godin decided to create this online class over writing another book or adding to his blog. Godin’s primary response is simple. He knows what his consumers need of him and he’s notices a large scale uptake in interactive online education. Another point Godin makes, “is that it’s hard to read a book ‘together’ but it’s really natural to take an online course together. What I learned from the first Skillshare course I did was that the people who got the most out of it were the ones who helped other students the most, who did the work and also contributed to others doing the work. Can’t do that with a book.”

The last crucial question Dan asks is what three marketing shifts in the last decade are crucial for an entrepreneur to know. Godin lists them: 1) Advertising and marketing are no longer the same thing. 2) All media is voluntary. 3) The network effect is the most powerful force in the world.

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Venture Capital Recovery

New post from Bevans Branham

The good news: VC firms are pouring more money into startups than they have been in recent years. IPO demand is way up, 222 last year- the most since 2000.

And the bad? Some experts and analysts are warning that it may not be the best of ideas for some firms to hop on the train of investing in the the most valuable startups.

Well, its not that it’s always a bad thing. Just that reacting only to the public market could be potentially damaging for the firm in the long run. The most valuable companies have an incredible amount of influence, and smaller companies definitely aim to emulate them. Peter Delevett at San Jose Mercury News has recently reported that this waxing IPO demand is comparable to the dot-com bubble of the 1990s. Delevett cites quite a few statistics in his report, but the biggest take-away might be this: though CB Insights reports that 25 private companies were valued above $1 billion dollars by their investors in 2010 alone, only 45 companies managed to seal a merger deal or IPO of similar figures within the past ten years.

Delevett’s sources are just encouraging VCs to be responsible. After all, everything is dependent on just how hot the IPO period is; once the market begins to settle, a company may find itself having a hard time recouping those monetary losses. In a market so historically volatile, it just is not recommended to rush into an IPO if the company is only dealing with a fund of a few hundred million dollars.

Maybe this all does seem like common sense. But it must not be, for so many experts to comment on the dangers of following the leader. Not every company is a “unicorn” (a term used to describe financially promising, and therefore rare, companies) like Snapchat. It’s oftentimes best to wait and feel out the situation.

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Brands (With Benefits)

So, can we agree that having many brand loyalists is definitely a good thing? Really, who wouldn’t want as many users of their product as possible? Since that is arguably a very desirable goal, shouldn’t the aim of any aggressive marketing campaign be to stomp out the competition completely? Decry your competitors products as inferior? In a perfect world, maybe only your brand would dominate the market. But that’s just that: a perfect world.

While tradition and conventional marketing says its best to approach competitors in a “me vs. you” situation, where “me” is always pictured as superior, a recent study out of Harvard has shed light on consumer behavior that runs counter to this mode of thinking. The study found that fans of one brand who “flirt” with another brand’s similar product become more loyal to their primary brand of choice. In fact, the study shows that fans of brand “A” who had a product affair with brand “B” were actually willing to spend more money on their preferred brand, “A”.

So why is this that experimenting with a competitor’s brand actually can increase brand loyalty? Harvard professor Francesca Gino reveals that the psychology behind it all is very similar to flirting in interpersonal relationships. When we flirt with someone we are uncommitted to, it provides a rush of fresh and novel feelings. Likewise, using a product from a competing brand provides a similar rush, and such feelings can be used to develop a stronger affinity for the originally preferred brand.

So next time you see a competing brand ramp up its advertising budget for a rival product, take a moment before you follow suit. Maybe a few of your brand loyalists will give into the temptation to try that “something new”, and in the process, discover just how much they are attracted to what you offer.

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What Should Marketers Expect in 2014?

Bevans Branham’s Newest Blog Post:

Jeannette Kocsis, EVP of digital engagement at The Agency Inside Harte-Hanks, has witnessed her justifiable share of promoting tendencies. Right here, three electronic mail advertising concerns she believes entrepreneurs will have to brace for this yr.

1. New mail applications.

Expertise evolves and e-mail systems are without a doubt no exception. Google’s fashionable e-mail software, Gmail, obtained an overhaul in May just 2013. Google unveiled a brand new inbox for Gmail that makes use of tabs to separate incoming messages into classes together with Main, Social, Promotions, and Updates. Because of this, Kocsis says, “We will are expecting persevered modifications to the consumer expertise of webmail purchasers.” Entrepreneurs will wish to rethink how they run and ship their electronic mail promotions to make the most of new options and functionalities.

2. Entrepreneurs will wish to pay attention more than ever to audiences.

Error in judgment concerning content material, supply channel, and frequency can alienate customers and tarnish your model. “We are able to predict that deliverability will proceed to be a problem, as [will be] sustaining mailer popularity,” she says, including that “when a consumer chooses channels, content material, and frequencies, their preferences wish to be revered.”

3. Cellular will proceed to set the bar.

By now, many entrepreneurs have tired of the cell-first mantra, however Kocsis says they’re going to proceed to listen to it this yr. greater than 1.2 billion cellular net customers global, entrepreneurs should “design for cellular first, that means that if it really works on cellular, it is going to be fantastic in all places else,” she says. Guidelines for making electronic mail extra cell-pleasant embrace growing an attractive topic line, together with a compelling name to motion, and ensuring you do not inundate cell customers with undesirable messages.

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