A long-time member of the same gym, she has repeatedly seen attractive coupons on daily deal sites for other gyms in New York City (where they live). A typical deal would be something like a 30-day gym pass and 5 personal training sessions for $45. This is cheaper than the monthly fee at her current gym, which also doesn’t include any training sessions.

So she decided to quit her gym, and jump from place to place each month using coupons purchased from these sites. Considering how many competitors Groupon has spawned and the fact she is in a major city, it hasn’t been a problem finding the deals in advance.

This doesn’t bode well for local businesses.

Why Businesses Play Ball
Daily deal sites typically look for offers that are 50% or more off of the original price. They then take a 50% cut of the deal offered, leaving each business with about 25% of the original price. So why would they agree to such a deal?

Primarily because of the belief (promoted by these sites’ sales teams, of course) that this is a great source of new customers. A user will try your gym for 30 days, love it, and become a member. Or someone will visit your restaurant they found on Groupon, and then continue to return. You might take a hit on the first visit, but it’s all in the name of building repeat business.

Whose Customers Are They?
The big question is: who owns this customer? Do they truly belong to the restaurant or gym, or does their loyalty lie with the deal site? Many retailers are finding out that it’s often the latter. When users start to focus on the deal site first, the local business loses. Want to go out to dinner? Instead of visiting an old favorite, why not see what restaurant has a recent Groupon? Need a gym? Why pay full price? Just hoard a few different discount codes to use in the future. Suddenly, instead of driving new regulars, these sites will become a primary source of price competition.

The Cost of Retention
My wife recently tried a spa that had a great LivingSocial deal. After looking at the full price of services, she decided not to return. However, they recently contacted her, offering a package at the same price of the original deal. It turns out that most of the LivingSocial customers weren’t willing to pay full price, so the spa decided to extend the deals (indefinitely?) to keep them coming.

Did the daily deal bring the spa new customers that they otherwise wouldn’t have? Sure. But at razor thin margins compared to their other customers. And any word of mouth generated by this customer base will bring with it an expectation of the same low prices. It’s not difficult to see how this will continue to erode profit margins for these businesses.

The New Walmart?
It’s impossible to overestimate the effect Walmart has had on the world of retail. Since Sam Walton opened his first store in 1962, the company has reduced retail profit margins and dramatically lowered prices industry-wide. Other retailers are forced to keep their prices as competitive as possible.

Daily deal sites could have the same effect on local business. Instead of being a loss leader to acquire new customers, they could instead just drive prices down, making once loyal customers more price-conscious and harder to retain.

Be Cautious
What once seemed like an opportunity could become a major threat. Local businesses would be wise to consider what else may come through the door when they open it for a daily deal. Successful businesses aren’t just built on more customers. They also need to be the right customers.

As a comedian, you have to start the show strong and you have to end the show strong. Those are the two key elements. You can’t be like pancakes. You’re all happy at first, but then by the end, you’re sick of ‘em.

It’s easy to start strong. A customer hears about your product and becomes excited by the potential offered. It seems to solve a problem they have. Maybe the experience starts with seeing your commercial on television. Or on the shelf at a store. Maybe they have read through your website and decided to sign up for your service. Perhaps your salesperson has just finished a pitch and convinced the customer they want your product.

In other words, they were hungry. They looked at the pancakes, and man, did they sound good.

“I’ll have the pancakes.”

But then they dive in. They start using your product and it’s alright at first. But as they continue to use it, the disappointment starts to set in. The experience is frustrating. The interface is confusing. It becomes a chore. The initial excitement is gone, it becomes unpleasant, and in the end, they’re happy to see it taken away.

It is no longer enough to just drive sales. Your product needs to continually deliver. It needs to live up to the initial promise. Marketing is more than just getting people to buy. The end-to-end experience people have with your product is also marketing. In fact, it’s the most important part, because if you’re leaving people sick of your product at the end, word will spread. The Internet provides everyone with a megaphone and if they aren’t happy, others will know.

And then what happens? People will stop ordering your pancakes.

Up until now, Seth’s books have been primarily marketing-focused and were written for a business audience. But Linchpin is different. It’s core message is about life, art, and career. While I don’t think the central message is to be followed by everyone, I believe that it should be shared with as large a group as possible.

Seth used a novel promotion strategy for this book and has relied mostly on bloggers and the online world to spread the message. But I think it’s time he makes a visit to the old-media world of television. Specifically, I think he should appear on The Daily Show with Jon Stewart. Here’s why:

1. The Linchpin Message is Important
The book does a great job articulating the changes that we have all felt happening around us over the last few years. And it nails the inner struggle we all feel between having ideas and acting on them. I truly believe this book has the power to change people’s lives by shifting the way they view their career. Every working stiff who is unhappy with the 9-to-5 should hear what he has to say. And many of them have (sadly) never heard of Seth Godin. Yet.

2. The Daily Show Audience is Well-Suited for the Linchpin Message
Every night, nearly two million viewers tune-in to The Daily Show. They tend to be younger and more educated than most news program audiences. And according to a recent Yale study, they are fairly liberal and hold relatively progressive viewpoints. The call-to-arms outlined in Linchpin would resonate with such an audience, who would also be well-positioned to actually make these types of changes to their career (and lives).

3. The Interview Would be Entertaining
Both Godin and Stewart are extremely well-informed and quick on their feet. Seeing an exchange between the two of them would be great television. And I think Jon Stewart would be a big supporter of what Seth is advocating.

4. It Would Be Remarkable
An appearance by Seth Godin on The Daily Show would definitely qualify as a Purple Cow. Seth rarely, if ever, makes these types of mainstream appearances and I suspect there is a sizable overlap between the two audiences. It would also set the online world on fire, and would be mentioned on countless blogs and tweets.

Think this is a great idea? Then sign the petition. Let Seth Godin know he should continue to spread the word!

Starting your own business can be simpler than that. A straight-forward idea and simple yet clever marketing tactics can come together to create success.

Any New Yorker reading this will immediately recognize the phrase “Dan Smith Will Teach You Guitar.” Local guitar teacher Dan Smith has been using this headline (along with a prominent photo of himself) on his flyers to promote his private lessons for years. These flyers seem to be posted on every bulletin board and shop window in New York City. Whether you are in a deli uptown or a dry cleaner downtown, you will spot these flyers everywhere. And the formula always remains the same.

I decided to find out more about Dan’s marketing approach. He was kind enough to answer a few questions about how he views his business and the brand that is Dan Smith.

1. What made you decide to become a guitar teacher? How did you get started giving lessons?

I started teaching a couple friends of mine and I liked doing it. It seemed like a cool thing to do, and it beat waiting tables as a way to make money. I also knew I would learn a lot from it.

That said, I’ve never really thought of myself as becoming “a guitar teacher.” I see myself as me, Dan Smith. I teach guitar because it’s a way for me to be who I am and make music, while providing an experience that people find valuable.

Lesson: When starting a business, find something you are passionate about, then start small.

2. The phrase “Dan Smith Will Teach You Guitar” has become legendary among New York City residents. Did you intend to make that a tagline of sorts, or was it unintentional and just sort of took on a life of it’s own?

That’s me trying to be as simple and direct as possible. It says exactly what the experience is. So it was definitely intentional.

Lesson: Don’t overthink your marketing. Being simple and direct works.

3. You decided to use your own name, as opposed to coming up with a company name or other brand name. Why?

I use my own name because I am the brand. What you get is me. I’m not a company, I’m a person.

Lesson: Authenticity is crucial to the success of any business.

4. What does the Dan Smith brand offer students compared to other teaching options? What makes Dan Smith unique?

One big difference is that I don’t view teaching as something that I’m doing “on the side.” I take teaching guitar just as seriously as a doctor takes practicing medicine. I do a lot of different things, but when I’m teaching, I’m totally focused on my student, their music, and what they are learning.

Another difference is that a lot of teachers out there basically just dispense information. They give you a fish, without teaching you how it fish for yourself. Working with me goes way beyond that. I teach my students how to connect to their musicality. One of the many benefits of that is they learn to be as independent as possible. I also want my students to experience the music first-hand and learn on an intuitive level. So everything we do is very hands-on and designed to develop your overall musicianship.

It’s the difference between just learning the rules of grammar and learning how to tell a great story.

Lesson: Your product is secondary. What you’re really selling is the benefit to the customer. Dan isn’t selling guitar lessons. He’s empowering people to get in touch with their inner musician.

5. The flyers for your lessons seem to be all over New York. Why do you think they stand out so well compared to other flyers and posters?

They stand out because I believe in what I’m doing, and I put that conviction into the message and the design. Plus the fact that they’re everywhere. So when you see one, it’s part of this larger dynamic and it makes you think about all the other times you’ve seen it.

Lesson: Be clear about what you offer, then find ways to get in front of prospects over and over again.

6. What do you think are the most important things your students are looking for when they are choosing how to learn guitar? How do you try and deliver on those?

I think students are looking for someone who will really listen to them and take them in as an individual. They want someone who’s knowledgeable and can teach them in simple, straight-forward terms. They also want it to be a relaxed experience that they look forward to. So what I do is create an atmosphere where you can be yourself, make the music that turns you on, and learn in experiential terms.

There’s got to be an emotional connection to what you’re learning. Otherwise, it’s boring and it doesn’t work. If that’s in place, then I can help you connect to what really motivates you to play, and create music. By doing that, my students find out that they have a lot more ability to play guitar than they thought they did.

Lesson: Customers aren’t only concerned with results. They also want to enjoy the experience. People do business with people they like.

Low-tech But High Impact
It’s easy to get caught in the trap of overthinking your marketing and being fascinated with what’s new and shiny. But there are some tried and true tactics that never go out of style. If you have a business to promote or are thinking of starting one, make sure you consider even the most basic approach.

Who knows, you might just end up a local celebrity like Dan Smith.

Thanks to Dan for sharing his thoughts with us. If you are interested in having Dan Smith Teach You Guitar, check out his site.

One of the more popular examples among entrepreneurs would be Duct Tape Marketing. Small business expert John Jantsch launched and manages this blog and marketing system, which has helped many businesses build a marketing program on a small budget. While the name is gimmicky enough to attract attention, as a metaphor, it cheapens the straight-forward and practical advice John has to share.

Yesterday brought us another example that developers might be more familiar with. Respected blogger and programmer Joel Spolsky posted an article titled The Duct Tape Programmer that has generated quite a bit of debate online. In the article, he discusses a specific mindset certain developers have towards projects.

He is the kind of programmer who is hard at work building the future, and making useful things so that people can do stuff. He is the guy you want on your team building go-carts, because he has two favorite tools: duct tape and WD-40. And he will wield them elegantly even as your go-cart is careening down the hill at a mile a minute. This will happen while other programmers are still at the starting line arguing over whether to use titanium or some kind of space-age composite material that Boeing is using in the 787 Dreamliner.

When you are done, you might have a messy go-cart, but it’ll sure as hell fly.

My problem with the duct tape metaphor is it usually ignores the middle ground. You’re either an impractical perfectionist or you produce messy work.

But the most value comes from people who sit between the two extremes.

To build on Joel’s description, how about a programmer who approaches a project in the following way:

He is the kind of programmer who knows you want to get down the hill, and agrees a simple go-cart is the best way to start. Four wheels and some steering. He knows you aren’t the first person to build a go-cart, so he isn’t going to reinvent the wheel. As long as a standard set of limited features are agreed to in the beginning, he can quickly launch a great, well-built go-cart that goes fast.

Once the go-cart works, then he is ready to focus on adding a horn and some racing stripes.

What They Really Mean
Using “duct tape” implies a certain sloppiness and that something is temporary until it can be addressed and fixed or done correctly. But those aren’t the principles that John or Joel ultimately value.

They both appreciate the ability to get things done, in a practical way, with the resources available.

Duct tape isn’t the solution to every problem and certainly shouldn’t be an overall philosophy. Overusing the duct tape metaphor lessens what is an extremely valuable talent, and leaves the door open for people to excuse their own poor work and messiness.

Knowing how to wield duct tape when the situation calls for it is important, but doing things well is much more valuable.

So why are so many people still out of work? Right now there are more than 5 unemployed workers for every job opening. CareerDiva Eve Tahmincioglu recently wrote about how, in her words, “sometimes you just can’t find a gig.” There is a lot of frustration out there and much has been written about searching for a job. The web has no shortage of career advice, covering everything from networking to crafting the perfect resume. But in this type of market, sometimes you just can’t find a job.

Are you using the same tactics as everyone else?
One of the problems could be how you are going about your job search. Regardless of how well you are doing them, chances are you’re doing the same things everyone else is. Having the best possible resume is important, so is having a great cover letter. But you are still competing with other candidates who are using the traditional cover letter and resume process to get a job.

Don’t get me wrong, all the standard pieces of advice still apply, so make sure you do them well. But they have become the new bare minimum.

In the interest of helping you stand out from the crowd, below are 4 Unconventional Ways to Get a Job.

1. Create a “Should Hire Me” Website
Building a mini-website allows you to showcase your abilities and talent in a unique way that grabs the attention of employers. This isn’t an entirely new idea, as it has been done by other job-seekers. Jamie Varon famously tried to get a job at Twitter with her website, TwitterShouldHireMe.com. The site was featured in Fortune magazine, CNN, and other media outlets. While it didn’t lead to working with Twitter, the site opened other doors for Jamie and she now runs her own consulting business. I have a similar story, having used ShouldHireMe.com websites during a job search last spring (see an example here). I was featured in the Baltimore Sun and a few blogs, all of which convinced me to start my own consulting business as well.

These types of sites are extremely cheap and easy to setup. Go to 1and1.com, buy a domain name and/or cheap hosting, and setup a basic page. If you have absolutely no HTML skills, and aren’t eager to learn, you can probably find some help at elance.com for somewhere around $50. Get clever with your domain (ie LetMeGrowYourSales.com or WhyYouNeedtoHireMe.com). Even a generic page you can share with multiple employers can have a huge impact.

2. Advertise on Facebook
Like many sites, Facebook offers Cost-Per-Click ads on their site. The big difference is that you can target people who work for a specific company. If you see a job from a specific employer, you can run an ad for their employees stating why you would make a great new hire. This works especially well in conjunction with Step 1, when you have your own site. Setup LetMeGrowYourSales.com, then run an ad with a headline such as “Let Me Grow Acme’s Sales” and some copy encouraging them to “find out how I can help your company grow.”

I did this during my job search and it received a lot of attention. The great part is that you can often reach your future boss or someone you will work with, as opposed to just an HR representative who is sorting through huge stacks of resumes. And since you are targeting such a specific group of people, each campaign will only cost a few dollars.

3. Work for Free
This tip is aimed primarily towards two groups of people: new graduates and those looking to switch careers. I’m not suggesting you offer to perform Accounts Receivable duties without getting paid, but if you have spare time and are looking to break into a new field or are just starting out, working on a project for free can be a great way to get your foot in the door. Recent graduate Charlie Hoehn used this method to start his career, and wrote a free ebook about this experience called Recession-Proof Graduate.

While the book is aimed at younger grads, there is valuable advice in there for anyone looking for work. Even if it doesn’t lead to work, at least you something to add to your resume to fill the gap in employment. I would much rather hire a candidate who is making productive use of their time off as opposed to someone who doesn’t seem to be doing much of anything.

4. Be More Interesting
That might sound a bit broad, but the idea is to take this time to make yourself a more interesting candidate (and person). Regardless of how many years of work experience you might have, it’s helpful to have some powerful talking points about why you are remarkable. Writing an ebook is a great way to demonstrate expertise and draw attention to yourself. Who knows, it could also lead to other professional opportunities. Or offer to speak somewhere or hold a free training seminar. Contact the Small Business Administration and act as an adviser in your area of expertise for entrepreneurs just starting out. Consider starting a small business scholarship program, where you will volunteer your services to a worthy company. Any of these will make you more interesting than 99% of the applicants an employer will hear from.

Much like Traditional Marketing, the Old Methods are Dying

The traditional methods of job-hunting worked well when there were an abundance of positions available. But now that they are scarce and competition for each is fierce, having a respectable cover letter and resume is no longer enough. Just as the rules of marketing have changed dramatically, so have the rules for competing for jobs. So start thinking about how you can differentiate yourself from other applicants.

It’s definitely tough out there. But by changing your job search strategy, you will dramatically increase your chances of getting back to work as soon as possible. Good Luck.

NEW YORK–Broadcast network CBS will be advertising its fall TV season with a print ad from an issue of Entertainment Weekly airing during an episode of Two and a Half Men.

The September 18 episode of the long-running sitcom will feature the first print ad to appear on TV, George Schweitzer, CBS marketing president, said Wednesday at a press conference at the company’s headquarters here.

The ad will be launched in partnership with PepsiCo to promote Pepsi Max soda and the TV network’s Monday prime-time lineup. Not everyone will be seeing it: the print ad will only appear to viewers in the New York and Los Angeles areas–an episode without the magazine ad will be shown to viewers elsewhere.

Of course, the above isn’t true. But sadly, it’s not too far from reality.

It’s been all over the news and blogs today that CBS will be running a small video ad inside of a magazine this fall, kind of like a musical birthday card (sidenote – how long until we see video birthday cards?). The announcement was accompanied by comments about “leadership in innovation” and the “evolution of marketing.”

Consider me unimpressed.

Gimmicks like this may provide short-term interest, but with the wrong audience. You’re going to attract people interested in checking out some snazzy technology instead of building an interest in your programming lineup among potential viewers. Unless their target demographic is advertising executives, they should think of something else. When I see big media companies taking this kind of approach, it just makes them seem out of touch.

The rules of marketing have changed. Using mass-media gimmicks like this won’t work. If you want to be innovative, truly innovate. Don’t just move around the deck chairs.

People Like Companies Who They Think Are Like Them
The recent debacle involving the CEO of Whole Foods is a good example of brand betrayal. For those of you who haven’t been following, John Mackey, the CEO of Whole Foods, recently penned an Op-Ed in the Wall Street Journal coming out against health care reform and stating that health care isn’t a right, all which are right-leaning conservative views. I won’t personally comment on the issue here (I already did) but his comments were definitely shocking to Whole Foods’ customers, who tend to be fairly progressive and liberal. It has led to outrage on the web and the Whole Foods Forums, all calling for a boycott. Now, Mackey has every right to share his views with others. However, customers also have a right to react to those views. And it’s looking like sharing his opposing viewpoint was a bad business decision given his customer base.

How Open-Minded Are We
On the flip side, many people have a view of Wal-Mart that may not necessarily reflect the actions and views of the company. Long despised by many liberals and left-leaning citizens, Wal-Mart recently announced their support for the idea of employer mandates for health insurance (a position being advocated by the Obama White House). And they have made big strides to support sustainability and the green movement. You may not agree with everything Wal-Mart does, but it’s important to give credit where credit is due. Could this all represent a shift in the company’s philosophy? If so, it will be interesting to see how people react. Will liberal-minded shoppers started fleeing Whole Foods and flock to Wal-Mart?

Respect Their Minds AND Their Hearts
In a society that infuses such deep emotion into brand relationships, it’s important to respect your customers. Place importance not only on what they might think, but also how they may feel about the things you say and do.

If you choose to ignore them, it won’t be long before they choose to ignore you.

Yesterday we looked at the specific metrics that can be used to measure personal influence. Today we will discuss how that influence will be used to create value.

Having strong online personal influence will most likely be leveraged in two different ways, depending upon the person and the brand/marketer involved.

Directly
People who have an established network of followers and readers will be able to draw attention to other brands from within their own personal sphere of influence.

Professionals with a large group of Twitter followers or blog readers will be able to drive attention to a product or service from their network of other professionals (the Robert Scobles of the world are a good example of this).

Public personalities, such as a reality-show star, who have established a social network during their moment of fame will be able to offer that attention back to brands and marketers with quantifiable metrics. (We kind of saw the reverse of this with Tila Tequila).

Individuals within an specific group, such as indie music fans, will be able to quantify their social influence by the number of bands and fans they are connected to. Music labels could use these metrics to find the influential members of the target audience to share unreleased music and information about new bands, thus “seeding” the audience to help grow a fan base. Malcolm Gladwell wrote about influencers in The Tipping Point. Metrics like the ones listed yesterday will allow companies to more easily identify these social influencers.

Indirectly
Aside from showing your own personal value, there will be tremendous value in also showing the ability to use and succeed within social channels. For example, a successful ebook may demonstrate the ability to spread ideas, regardless of the relevance of the topic.

Take the example of a candidate applying for a marketing position who has built a large online network around their hobby of knitting. They maintain a blog about knitting (with a high number of monthly visitors), a large Twitter following for their knitting-themed account, a monthly email newsletter, and participate in online forums and comment on other blogs, all related to knitting. They have shown an understanding and appreciation of online social communities. Even if the job they are applying for has nothing to do with knitting, the demonstrated ability to effectively use online marketing channels is a valuable skill.

So who is listening to you?
We are witnessing the death of mass marketing and advertising. In an attention-based economy, the new currency is social influence. Being able to illustrate that influence with quantifiable metrics will increase your worth as a marketer and as an employee. So get to work building those metrics. The numbers won’t lie.

Update: The second part is available here.

Over at the Forbes CMO network, Marian Salzman recently wrote an article regarding the measurement of personal influence where she discusses the growing realization among marketers that anyone can be a brand.

Building an online sphere of influence can be a powerful way to market not only your product or service, but also yourself. Whether you are an entrepreneur or an employee, social influence is going to continue to grow as an important part of your professional credentials.

Creating an influence network (or Tribe) is a powerful engine you can put behind your ideas and your career. I see this influence being quantified by a mix of statistics and metrics, similar to the way we track online advertising or database marketing.

Audience:
# of Twitter Followers
# of Facebook Friends
# of LinkedIn Contacts
# of Monthly Blog Visitors
# of Blog RSS/Feedburner Subscribers
# of downloads of an eBook someone authored (along with languages it’s been translated to, or number of countries it has been downloaded from)
# of attendees at meetups held by the individual
-Success on social news sites, such as reddit or digg. (like, reddit karma points. Or total number of diggs to articles submitted).
-Google PageRank of their personal site, blog, etc.
-Search Engine results around terms (e.g. having a high placement for searches of “small business marketing”)

Frequency:
# of Twitter Updates/Facebook Status Messages
# of Monthly Blog Posts
# of Monthly Comments on other blogs
# of Meetups organized by individual

Engagement:
# of comments on their blog by others
# of LinkedIn recommendations
# of referrers to their blog/articles/tweets (are they stirring debate and discussion in their community)
# of page views by a visitor to their blog (are they just driving traffic, or building loyalty)

There are more of course, but you get the idea. While it’s unlikely we will see questions about these metrics popping up on job applications, the smart marketer/applicant will start promoting themselves in this way. As job applicants continue to talk about the diminishing returns provided by resumes and cover letters, offering a snapshot of their social influence will make much more of an impact.

Tomorrow we will take a look at the two different ways this influence will be used to make people more valuable.