Overwhelming choices (and opportuniites)

A little less than three years ago, when I began publishing this blog, I set out to find other AEC industry bloggers with the intent of providing free link-backs to their sites (and to credit them with being first.) I found a few localized initiatives, but (to my surprise) seemed to have the space mostly to myself.

Meanwhile, social networking groups like linkedin.com were starting to gain traction,but again few knew about them -- and I recall writing my first SMPS Marketer article on the topic and "connecting" with some SMPS leaders who hadn't heard (or knew little) about these resources. (SMPS: Society for Marketing Professional Services, the association for AEC marketers.)

Today, a quick look at this blog's sidebar provides just a slight clue to the number and range of online options for online construction marketing information and relationships. In fact, the choices here may seem overwhelming, with more options and choices available each week. I'm doing my best to keep up, but I'm not starting from scratch. How should you handle things if you aren't already established in the online space?

The answer to this question has two parts. You need to look at things from the framework of obtaining construction marketing information, and, separately, executing your own construction marketing strategies.

Obtaining information
If you spend all day and all night surfing around the Internet you may find some gems, but you won't do much for your own business. Ultimately, you need to select a few key places to connect.

I've expressed some biases in my sidebar -- these aren't entirely fair, as some really good blogs and resources are 'buried' in the long list of hyperlinks, but the ones I've chosen consistently provide useful information (and I selectively visit a few favorites outside this list, and report on them in regular blog postings.)

You should of course supplement these resources with specific trade and local information sources. Eventually, I think you will have a prioritization system somewhat similar to mine -- you'll routinely check five or six key places, and have a larger list where you visit from time to time.

Obtaining marketing results
Here things require more work, thought, and planning (and some speed!) If your goal is to use online resources to promote and develop your own business, you will need to decide which resources to use, and how to give them priority.

You can blog, contribute to social networking sites and forums, build a content-rich website, and use e-mail marketing, all melded to help out with your search engine rankings. Your goal is to make it easy for potential clients to find your business and, when they do, to be predisposed to doing business with you because you convey the impression and values they are seeking.

Of course, some businesses will provide these services to you for a fee. You need to be wary of promises and claims from unsolicited spam, of course, but you are probably safe if you land on a business which has obtained a free link in my blog's sidebar. (We offer a specific publicity/media development service relevant for businesses with annual sales volumes of greater than $250,000 to $500,000, but other services can help out with smaller enterprises.)

You can also do a lot for yourself and you will have to do some things without much help (unless you want to spend a fortune). Much Internet marketing and relationship building requires your material to express your own personality; you can't easily hand this off to a third-party agency, or junior employee who needs to go to you for permission anytime he or she wishes to say anything.

From a marketing perspective, there is still some good news. In many locations and trades, you can still be "first to market" and obtain the advantage of online marketing leadership. But you don't need to reinvent the wheel. Look at works elsewhere, and what you enjoy doing, and you will likely succeed.

Two (new) places on the construction marketing spectrum

I've just posted a couple of worthy permalinks, representing two places on the spectrum in this blog's readership.

In the first, Chicago-based Anne Scarlett of Scarlett Consulting reports in her Scarlett Letter blog on some intriguing and high level AEC Marketing issues. Consider, for example, her recent posting where she offers some thoughts on what professional firms measure in assessing bonuses and achievements.

Earlier this year, I delivered a session to the SMPS Southern Regional Conference. I met a gentleman (Greg) in the audience that works for a large, multi-disciplined engineering firm (XYZ Engineering). I don’t have their exact revenue figures, but they have multiple offices across the U.S. and abroad. We discussed how the firm is structured from a financial accountability standpoint. Apparently–rather than individual offices serving as profit centers, and rather than one big profit center for the whole firm–this firm has opted to group their profit centers according to regions.

We all know there’s no ‘one size fits all’ magic to a firm’s financial and organizational structure. We also know that it largely depends on these factors: client type and location; design and delivery philosophy; shared resource preferences; long-term business goals; etc.

Circling back around to my conversation with Greg at XYZ Engineering. He shared that there are two layers of bonuses offered at their firm on an annual basis. OK, makes sense. I’ve seen firms with up to three layers of bonuses. But this was what surprised me: Greg told me that rather than measure actual profits, these regions consider two things to measure their success: billability and net revenue. Nope, not profit. They figure if the other things are there, the profit will be as well.

Now, I can think of all sorts of reasons why good billability factors and net revenue figures might not lead to a truly profitable business. So I found it curious that this large, highly reputable firm would measure it this way.

Months later, I’m still curious, and am taking this opportunity to reach out to you, dear readers, to hear your own perspectives on this topic. If you are willing to share (anonymous is fine; feel free to send a direct message if you prefer), then I’d love to learn more about how your organization is structured financially, and how that structure is helping–or hindering–your firm in this current economy. Any collection of data will be shared in future blogs for consideration.

I wish I had read Scarlett's blog before contributing my article on Metrics for the upcoming SMPS Marketer issue. I looks like Greg's company, in measuring "billability" and "net revenue" is seeking to establish Key Performance Indicators which may be within the capability of individual employees to influence and change. On the other hand, I 'm wary of complex, two-level bonus structures; how effective are these benefits, really, and how much do they actually influence behaviour rather than become seen as entitlements.

On a different level, Paul Lesieur of Silvertree Remodeling in Minneapolis called me about three weeks ago to tell me he had partnered with Rory Swann of Servicez Unlimited in Washington D.C. to establish a new site/forum for remodelers, Remodelcrazy.com. The site is now in operation; it is early going, but a true grassroots community is developing. Here is Paul's explanation of how the remodelcrazy.com idea developed.

I'm driving around last year thinking "What a crazy business and what a crazy remodel I'm doing for this couple".

Ding, Ding I grab a flat carpenters pencil three inches long and write down Remodel Crazy.

I get back and put the paper away and four months later I'm talking to Ridgewalker from CT (editor: CT is Contractortalk.com) who I don't even know and he tells me to get an open domain name for that was available that would help promote my business.

I get my domain and remember Remodel Crazy and buy and register RC.com.

Months go by and now I'm friends with some nutcase from Washington DC and we start talking and I tell him about Remodel Crazy.com and my dream is to build a great place for all the people in our industry. One thing leads to another and we get Len involved and here it is. It was just a little dream for a guy who feels like the best people in the world, its builders, don't get the proper credit and respect. The painters, carpenters, electricians, designers, and the solid vendors and associates who make it all click. All of us, this is for you. And I mean it.

Its new, and its gonna take some work, but nobody is more ready to tackle this than the Remodel Crazy crew.

So lets kick it!

White collar, blue collar, years of formal education, or the practical experience in the schools of hard knocks and success -- this industry creates opportunities and working relationships for everyone, and the two new hyperlinks here reflect its diversity.

Earning great publicity

One of the most effective ways to obtain great publicity for your business is to post within relevant Internet forums -- and then, when the time is right, let the media know about your activity. You don't need to spend a cent to magnify positive word of mouth.

Most contractors don't understand or appreciate the value of great media publicity about their business, or how to obtain it. I expect this is because of a combination of fear and lack of knowledge. It is hard enough for you to run your own business without understanding the somewhat arcane art of public and media relations.

This lack of knowledge is apparent in some of the postings on this contractortalk.com thread about me, where the original poster originally complained about my "lifting" material from people's threads, identifying them, and reporting on their ideas. (The person starting the thread later clarified that he meant me no harm, as I certainly didn't mean harm to him.)

Paradoxically, this discussion shows a key way to achieve positive media publicity for your business. Look for relevant forums on topics which combine your interests and passions (and represent your market) and post extensively in this environment.

Eventually, especially if your discussions are relevant and topical, mainstream journalists will notice you and get in touch. You can prime the pump by initiating contact with them, perhaps through email references to your postings (or even better, to other people's postings about you.) When they call, and you are ready, you will find you can become known as the expert locally within your field, and then you may receive repeat calls and even more publicity.

You don't pay a cent for this marketing, outside of your time.

It is far more effective and credible than advertising, because others see it as positive word of mouth -- magnified by the distribution (in print copies and and electronic impressions) of the media outlet. You can use small excerpts from the media publicity in your marketing materials, or hyperlink back to their sites. (If you want to reprint the entire article, or use the entire video for your publicity, you should check first and obtain copyright permission. It may be worthwhile to pay the media outlet's reproduction/reprint fees.)

You can hire specialist public relations professionals to help you out on this work. The expense is rational if you are running a larger business, with a significant marketing budget. (Just take some money from your paid advertising and reallocate to public relations.) If you are smaller, or just starting out, you can do much of the work yourself, perhaps with help from a local college student or intern.

If you've achieved positive media publicity, or know of some examples where things went wrong, please feel free to share your observations with me by email to buckshon@cnrgp.com.

The Construction Exchange

One of the most interesting aspects of The Construction Exchange is its member-generated image library. Brad Torres writes:: "The Bagger 288 built by the German company Krupp is used for strip mining operations. It is 312' tall, 705' long and weighs over 13,500 tons. This piece of equipment comes with a price tag of 100 million and a 10 year lead time (five years to design and five years to assemble). The most amazing thing about it though is that it only requires 5 people to operate according to the article that I read. It also has the capability of removing over 240,000 tons of material each day."

Bobby Darnell referenced me to a site worthy of permalinking in the special place for forums and relevant sites -- The Construction Exchange (constructionexchange.com.) Lots of interesting information here, including connections, images, and even jokes.

A news article in the Santa Rosa, CA Press-Democrat observes:

The niche social networking site, which beta launched in August, is the brainchild of Santa Rosa-based Western Water Constructors, a 49-year-old construction company specializing in water treatment plants.

While construction companies aren't known for launching Internet start ups, its 33-year-old vice president and 28-year-old IT director had a vision.

"We wanted something that catered to our industry," said Josh McGarva, vice president of Western Water. "Our industry is known for being overly competitive. We wanted a place where people could share ideas, and be more collaborative."

This site certainly is worthy of a permalink.

Consultants: Using Internet forums for your marketing

Tim Nagle, in the Richmond VA area, has started promoting his consulting business through provocative contractortalk.com postings.

One of the most effective ways for you to market professional and consulting services is to achieve expert status on relevant Internet forums. As you contribute and post your insights and observations, your reputation will soar -- if you do it right.

If you do it wrong, you'll be seen as an opportunist, or worse, as a spammer. Forums have their own rules and personalities -- and unless you really know your way around, you risk a flame war or, worse, banishment.

Several months ago, for example, and relatively early in this blog's history, I stepped over the line at contractortalk.com, when I invited readers to participate in a survey. You can avoid similar mistakes by reading the forum rules, which are usually clearly posted.

Humbled by the error, I set out to correct things, always checking with the forum administration BEFORE posting if the activity could be seen as stretching the rules.

Sometimes, new people arrive on the scene with a real splash. Tim Nagle, who goes by the user ID "Remodel Bud" joined the fray with some provocative postings beginning with this thread, "Sales Training Instruction 9 - 2 - 08". Intrigued, I phoned Nagle, whose RemodelBuddy weblink takes you to a regional leads referral service for the Richmond, VA area.

Before starting out on his own as a consultant/local leads service provider, Nagle says he had been a partner and successful manager of the Champion Window, Siding and Patio Room branch in Richmond, which he turned from a money-losing business into one of the most successful branches in the Champion network, generating upwards of $10 million in sales each year. Nagle says Champion decided to use his location as a training centre for other location managers, who could see first-hand how to do things properly.

He's now setting out as an independent consultant, and naturally, his clients are likely the people reading the contractortalk.com forums (and this blog).

Nagle believes contractors should hire only commissioned sales representatives. (This point is debated by many pundits -- but the consensus seems to be for retail-focused direct to consumer sales, commission sales appear to have the greatest industry acceptance.)

But where/how do you find the great salespeople you need to run your business?

First, says Nagle, make the business truly appealing -- show the representatives you are planning to hire the quality of the environment and the existing sales force. (When he took over responsibility for Champion in Richmond, this meant a few months of house cleaning, as many lower performing people left.)

"The hiring process starts before you hire anyone -- you are building the culture in the office; a great environment leads to great success," he said. "Whenever I interview a salesperson, I let them interview the other salespeople in the office -- and they want to work there."

To find new representatives, "you are out looking for people actively, networking, checking other companies, home shows, contractor businesses, that's generally the best means of hiring.
"Building a sales team is a constant work in progress," Nagle said. "You have to be working (at recruitment) when there isn't a need to look."

For his consulting service, Nagle said fees vary depending on what is required. Some people, he said, just need phone consultations, and these can be accommodated for $50 per week. In other cases, Nagle said he is asked to conduct full-blown on-site sales training and hiring -- and this of course will be more expensive. He is selective in the clients he works with; a young, struggling contractor with a brain on his head and willingness/eagerness to learn will receive his services for lower fees; he will decline doing business with people who don't want to learn and listen.

Is Nagle worth his fees? I can't be sure -- but his writing and communications suggest he knows what he is doing -- and of course you can check his references and validate his abilities in the early going of your relationship. One thing is certain: Some solid consulting from experts who really know their stuff can save you much agony, frustration, and wheel-spinning as you build and maintain your business. And you can learn something from Nagle about marketing your business by connecting with Internet forums relevant to your potential client group.

The audacious entry

An argument can be made when you enter a new space/market, you can benefit by taking risks and stretching things. Take the arrival of J. Sullivan of Bankable Solutions on the contractortalk.com forum for example.

He posted some observations, initially with a link back to his site, until he had his wrists slapped gently. Contractortalk.com after all sells advertising -- and it isn't really interested in having non-contractor businesses freeloading on the forum threads. Members of the forum are also protective of their space; they seek to help each other out but are not really interested in reading other people's self promotional stuff.

Over some months, I've learned to respect the rules of the game at contractortalk.com and other Internet forums. They can be powerful places for marketing, but you need to respect the culture there -- and listen to the mood. Occasionally I've posted backlinks from the forum to my blog, when I believed the posting would be exceptionally interesting and relevant to forum readers. But I've proceeded cautiously, almost always asking the forum administrator to review and approve the posting before publishing it there. (It helps, of course, that without request, I also link back to the forum from this blog -- and I can track anywhere between one and three visits there from here each day.)

So why, then, do I find J. Sullivan's arrival on the Contractortalk.com scene so interesting. He wasted no time -- setting himself out as an expert -- and letting everyone know who he is with some useful tips, down-to-earth language, and enough information that some people there are already talking to him about using his marketing services. He risked things a bit, stretching to the edge the acceptable marketing boundaries, but forum participants accepted he had something useful to offer and 'voted him in'. He gained mo e marketing traction there in a few days than you might with weeks of conventional advertising, and with the leverage of multiple (qualified) readers that transcends word-of-mouth.

Internet forums should not be underrated as a marketing environment -- the communities can be passionate about their subject, receptive to new ideas, and often have the money to purchase what you have to sell. But if you want to sell stuff by participating on the forums, read the rules carefully, watch the guidelines, and then, if you are ready -- and have something useful to contribute -- don't be afraid to join the fray (and, I would argue, without fearing stretching the forum's Terms of Service and advertising/marketing guidelines). J. Sullivan's blog, by the way, is http://banksolutions.blogspot.com/ (I won't permalink it because it focuses on general marketing rather than construction-specific issues.)

The top five marketing ideas

Image from constructionwriters.org -- publciity and communication skills will certainly help your marketing success!

This blog is an evolving repository of ideas and thoughts. Every now and then, however, it is good to summarize the basics. So I will outline what I consider to be the five most important marketing principals and ideas for the AEC community.

1. Your brand is your clients' entire experience; and it is the essential element of your marketing. How do your clients find your service? Do you deliver the 'something extra' that turns them into enthusiastic supporters or, at least, do you avoid things that irritate, disturb and annoy them? This branding reflects the entire experience, and therefore relates to all the interactions between clients and employees.


2. Do you get the basics right? Return calls (and emails) promptly; keep job sites clean and tidy -- every day? Have a simple, courteous and respectful communicating style with clients and employees? Have a basic dress code, neat, just a notch above what others expect?


3. Is your Internet marketing strategy in order? Do you have an effective, highly ranked website; an e-letter, and (possibly) video or social networking links. Are you monitoring relevant internet forums such as contractortalk.com or JLC Online (or this blog!)


4. Do you belong/participate in relevant trade associations and groups; possibly your local home builders' association; maybe a specialized construction association or -- often most appropriately -- the associations where your potential clients are members? Consider the Society for Marketing Professional Services (SMPS.org) if you are in the AEC sector, as well.


5. Do you track, assess, integrate, experiment, and explore new ideas, without losing touch with the foundations and the basics? Can you combine marketing methods and models in simple yet effective ways? Do you think through your marketing, plan and budget it appropriately, and then constantly evaluate what works best, and adapt it to your business?

Finally . . . don't worry if you don't have the answers to all of the questions I've posed here. Your story is an evolving one; your business will reflect your own passions, values, and perspectives -- and your clients will see you and do business with you for what you are.

Simply put, however, if you get it right, you will have a steady and satisfactory amount of business, and your clients will pay you what you are worth -- and that will be a whole lot more than most people in this industry earn.

Footbridge Media bats 1000

You can't buy positive publicity like Footbridge Media is receiving on contractortalk.com and here. You have to earn it by delivering the goods.

This Contractortalk.com thread relating to Footbridge Media is interesting on two levels. First, of course, is the amazingly effective power of postiive testimonials through Internet forums. No cost to Footbridge for this publicity, of course, but high value -- from the referral element, good will, validation, and more. Note also the element of exclusivity that helps to create demand from new clients (and validates the relationship with existing customers).

You could never purchase this kind of publicity with advertising -- so how do you get it?

First, and obviously most importantly, you have to earn it by deserving it. Deliver exemplary, "wow" service to your clients, and they will respond positively. Can you encourage your clients to spread the word about you? Yes, but with caution. I'm pretty sure that if Nathan at contractortalk.com found there was an organized campaign to plant postings in his forums he would grow livid -- and yank the thread -- because, after all, he earns income from advertising revenue and "free ads" are not what his forum is about. In other words, if your clients are truly expressing joy with your service to the extent they wish to spread the good word, you probably could help them along, but if you try too hard, you will end up in the sandbox.

So, then, what is the second point in this posting? I've always advocated Internet marketing, good websites, and useful and practical resources to support your work -- even though I haven't used Footbridge myself, it looks like they have it right, and you might wish to consider their services. (How's that for some more free positive publicity for them!)

Value is relative (2)

Sonny Lykos has posted an observation on the thread he started Value Is Relative on JLC Online.

One last thing, I emailed a friend that my reason for creating this thread was a test to obtain both the attitude and aptitude of my peers here, so one could understand that after 171 "views" only three people have made posts, is surprising to me, considering the importance of this issue.If one does not how to interact with potential customers how does s/he expect to sell to them and as importantly, with higher margins - the purpose of business. Those 3 people making comments represent less than 2% of the views, maybe 4-5 % if some of the views were from the same people. (Ed: Actually the number should be 1 per cent -- which is what I understand to be the normal comment level for any blog.) I view these forums and their threads, equivalent to college courses. Each one represents tremendous experience gleaned knowledge. And no one learns much by being a passive student just taking up seat space. Learning is about the exchange of knowledge and opinions, and yes even what some consider to be stupid questions. I've never thought of any question being stupid. In fact, I used to tell my employees that I've rather spend the time asking what they perceived to be a stupid question, than pay the price of the result of it never being asked. Think about that as and own attitude toward your own employees,, or customers for that matter.

Sonny is right in that interaction and participation increase the learning power and effectiveness. Only a small percentage of Internet forum/blog readers participate through thread contributions and comments -- even though one of the most powerful advantages of the Internet is that response and participation allow two-way communication.

Salespractice.com

The site/forum Salespractice.com has lots of interesting material on selling and sales training/management. Since it isn't specifically focused on construction, I won't permalink it, but keyword searches took me a few interesting places, including the plaintive observations of someone responsible for a leads service in North Dakota telling how he is unable attract salespeople to follow his 'system'.

Incidentally, I learned about this site from an anonymous comment to an earlier posting. Blog comments, in certain circumstances, can be one of the least expensive in time/reward/cost for marketing.

The Contractors Club

http://www.thecontractorsclub.com

Today, I received this email from Josh Buesking, moderator of The Contractors Club forum:

You are more than welcome to reference/permalink our site. I am currently advertising it publicly until we get a decent size user base.
The site started off as a "design site" after a discussion at the JLC Forums. The first couple (of) weeks it was nothing but some of the JLC Forum regulars discussion some current projects. It originally was Sonny's idea and with my experience in forums I went ahead and set something up for us. I told my friends and regulars at JLC that I would do my best to keep things private and not allow Google to index our discussions.
Once I stated that Google wouldn't be able to search the threads and new sign-ups would have to go through a screening process the conversations started to get a lot more business detailed. Also having Sonny and his background offer such a valuable resource for users.
Sonny and myself put this together. I think this does a good job of introducing the website.
=============================================================
The Contractors Club is an online community catering only to construction
professionals. The club was started on 8/16/2007 and focuses on running and managing a construction business. From project advice to sales and marketing there are several discussions and replies from experienced contractors.
The site was started by Josh Buesking and Sonny Lykos with the idea of a private design forum. The first month the site was by invitation only and quickly had 30 or so registered contractors. Due to the private environment the discussions quickly progressed more to the business sides of things. New sign-ups have several things they must do before being granted full access to the members only forums, and discussions are not found in Google search results in order to maintain the privacy of our comments.
Please also note that not only is there an active forum community there is also several other sections of the site such as an area for interesting websites that members find valuable.
================================================================================
Thanks Mark and if you would like I will add a link to your blog on our site.
Josh Buesking

I will of course permalink this worthwhile forum. Its private, moderated environment encourages a high level of competence and thoughtfulness in its posts.