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Marketing Your Business on YouTube

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When most people think of YouTube, most likely they think of guys dancing on treadmills and bootleg clips of Stephen Colbert, from Comedy Central’s Colbert Report. Charles Smith, a pottery artist from Mobile, Ala., thinks about the tens of thousands of people worldwide who have clicked on his videos to watch him create works of art on his pottery wheel only to break them up at the end. “You’ve got to have a gimmick, so I broke up the pots,” says Smith, who says about 90 percent of that traffic is students, but 10 percent is actually generating sales. Before YouTube, Smith’s ability to market his pottery was limited to driving from town to town hitting as many art shows as possible and hoping for that occasional local news feature story to generate business. “Now I don’t have to go to the art fairs as much. It’s too expensive with the price of gas anyway. I’ve got the website and YouTube. It’s so much better. I’m hearing from heavy collectors and galleries who’ve watched my videos. You never know who’s watching them. I’m hearing from people as far away as Japan. It’s a great tool and best of all – it’s free,” says Smith. Michael Miller, author of YouTube for Business: Online Video Marketing for Any Business (Que 2008), points to Smith as a perfect example of how a small business owner or entrepreneur can hit it big on YouTube. “YouTube gets 20 million viewers a month. That’s a really big market to tap into and there are no placement costs. It’s low cost and high potential,” says Miller. However, if you think it’s as simple as uploading a commercial spot or corporate video and waiting for the e-mails to pour in demanding your products or services; think again. “The people who fail on YouTube are the people who don’t understand the community aspect of YouTube or what attracts viewers,” says Miller. Attracting eyeballs Eighteen months ago when Charles Smith put up his first pottery video that has since generated more than 37,000 unique visitors, he instinctively knew what he was doing by coming up with a gimmick. “YouTube viewers want to be entertained,” says Miller, who offers three categories of videos that generate traffic. Informational videos. The Stone Brewery out of Escondido, Calif. sets a great example of this strategy. The little independent brewery has more than a dozen or so videos posted on YouTube featuring various behind-the-scenes tours of their operation led by Brewery owner, Greg Koch. It’s an engaging way to connect with the story of the brewery and thus, get interested in their beers. His videos generate typically between 1,500 and 2,000 visitors. Educational videos. Charles Smith’s how-to instructional videos demonstrating his pottery wheel highlights this successful approach. “A lot of people come to YouTube wanting to learn something. They might run a search for ‘how to build a bookcase’, for example. So if you sell auto parts, you might put together a tutorial how to change your oil. The result is driving traffic from the video to your website,” says Miller. Entertainment videos. One of the greatest successes of guerrilla marketing on YouTube would have to be Blendtec, based in Orem, Utah. Blendtec sells high end industrial strength blenders so strong they are touted to be able to blend just about anything. Their series of videos on YouTube — called “Will it blend” — are wildly popular with some of the pieces generating more than five million viewers. Each quirky piece features an attempt (almost always successful) to blend something both odd and tricky; like hockey pucks, an iPhone, glow sticks, marbles, even a rake handle. Getting noticed on YouTube Producing an engaging video for YouTube is just the first step in launching a successful marketing campaign on YouTube. With 20 million viewers a month and literally millions of videos to choose from, it’s easy to get lost in the crowd. Here are some tips for making your company’s videos rise to the top and leveraging them to help your business: Participate in the YouTube community. People forget that YouTube has an active community, similar to eBay. Miller suggests getting your name around by commenting on other videos and joining existing topic-oriented groups or creating one if there isn’t one in your niche area. Make sure your videos direct visitors to your site. Tens of thousands of viewers watching your videos sounds great, unless they have no direction to find your business afterwards. Make sure you include your Web address and other company contact information. Miller recommends creating a special “landing page” for viewers coming to your site from YouTube. It should have a similar look and feel to YouTube and intuitive navigation to close the deal on transactions or gathering client leads; whatever your marketing objective may be. Using the right production values. Believe it or not, spending too much money producing the video is more of a problem than spending too little. “If you look too slick, it may work against you. Most YouTube videos are shot with a $300 camera. YouTube videos are 320 x 400 pixels. You could spend $100,000 on a video, but no one is going to see it,” says Miller. Less important is the equipment, while more important is technique. “Talking heads, stationary shots work best. That’s why spots like Blendtec work so well. It’s a guy standing at a little table with a blender. Audio, however, is something people don’t think enough about. If you’re using a camcorder with an external mic input, use it. Invest in a decent microphone,” says Miller. Choose your keywords carefully. There’s only one way viewers find you on YouTube and that’s the site’s search engine. Using the right keywords is essential. Choose words that best fit your subject area and niche. Keywords should draw in a broad enough audience to get the exposure you seek, but not too much. With 20 million viewers passing through the site, businesses should use words that weed out traffic too. “I know of a realtor in Florida who uses YouTube. For her, she doesn’t want 100,000 hits. She wants nine good hits,” points out Miller. SIDEBAR: Other Benefits to Using YouTube Rising through the ranks. Now that Google owns YouTube, there’s the added benefit that a video on YouTube automatically goes into Google’s search engine. Videos tend to catapult to the head of the line. It’s a great way to increase your site visibility in the rankings. Spare your own site the bandwidth drain of streaming video. For some companies, generating new business or exposure via YouTube may be low priority. However, some are finding it’s a great place to park video clips using YouTube’s bandwidth with a simple link from the corporate site. Create your own channel and customer base. Anytime you post a video, YouTube creates what is called a profile channel. Viewers can subscribe to that channel. Businesses can then send out e-mails to those subscribers.

Choosing a Web-Hosting Service

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A few years ago, entrepreneur Blake Snow found a cheap Web-hosting platform for his new consulting business, based in Orem, Utah. The real cost didn’t come until later. “I [prepaid] 12 months service for a cheap host that I could only use for two months before having to make the switch to a better provider,” says Snow, who runs Web consultant Griffio Consulting. “I had to eat the cost.” There are more Internet service providers (ISPs) than ever, and while not all are out to fleece their customers, finding the right provider for to host your business website and provide Internet access for your staff requires asking the right questions. Finding the right provider can help make or break your business if e-commerce is part of your sales channel or e-mail is a means of communicating with customers. Here are some questions to ask when searching: What do I need in the package? Small business packages vary, but many ISPs usually offer the following: Disk space for your webpages and relevant multimedia content Multiple e-mail addresses Domain/Web address registration, such as www.[yourbusiness].com Basic “shopping cart” software for online purchases Continuing to use a previously established e-mail address is fine, since ISPs can forward mail from your new ISP e-mail to your old one. That said, experts say that if you do get a Web address through the ISP, make sure you are listed as the owner/registrant of the domain, not the ISP company. Whoever owns the domain can do whatever they want with the website. What’s my budget? “Fifty to 100 dollars per month should get the job done for almost any small business looking for reliable service,” Snow says. However, if highly sensitive information is being passed, you may want to get a server: a computer dedicated only to your website. As a small business, you mayl want to rent a server — not buy one — and this can bump costs up to at least $400 a month. You’ll likely need someone to handle upgrades and maintenance on the server, so be prepared to spend extra for that.. How fancy is my website going to be? A handful of pages with text and a picture or two are like peanut butter and jelly: not too complex. However, integrated movies, animation, and picture-based websites may need additional consideration. “If you’re creating a ‘dynamic’ site, one that involves a database or a coding language like PHP, ASP or ColdFusion, you’ll need to make sure the host has the proper software installed,” says Web developer Andrew Kamm, who works for the Demi & Cooper advertising agency in Elgin, Illinois. “In any event, check with the developer you’re working with and they should be able to provide you with a list of what they need or refer you to a host that can accommodate.” Will they be there when I have a problem? Unfortunately, the size of an ISP company isn’t necessarily reflective of its response time. In fact, larger service companies may be just unavailable. Professionals recommend calling the potential ISP provider, talking about your business needs and feeling them out. ISPs that serve your area can be located at C/Net or by typing “[your city] hosting” into your favorite search engine. If you do decide to go forward, make sure any promises are spelled out in writing. “If there were verbal negotiations between you and the Web-hosting company, be sure they are included in the contract,” advises the Better Business Bureau. “For instance, if the Web hosting company says it will respond to complaints or glitches with your account within 12 hours, rather than their usual 24 hours, be sure that promise is included in your contract.” And unless some extraordinary need occurs, you shouldn’t be charged for customer service on top of your business’ monthly service fee.

Choosing a Web-Hosting Service

our beautiful site

A few years ago, entrepreneur Blake Snow found a cheap Web-hosting platform for his new consulting business, based in Orem, Utah. The real cost didn’t come until later. “I [prepaid] 12 months service for a cheap host that I could only use for two months before having to make the switch to a better provider,” says Snow, who runs Web consultant Griffio Consulting. “I had to eat the cost.” There are more Internet service providers (ISPs) than ever, and while not all are out to fleece their customers, finding the right provider for to host your business website and provide Internet access for your staff requires asking the right questions. Finding the right provider can help make or break your business if e-commerce is part of your sales channel or e-mail is a means of communicating with customers. Here are some questions to ask when searching: What do I need in the package? Small business packages vary, but many ISPs usually offer the following: Disk space for your webpages and relevant multimedia content Multiple e-mail addresses Domain/Web address registration, such as www.[yourbusiness].com Basic “shopping cart” software for online purchases Continuing to use a previously established e-mail address is fine, since ISPs can forward mail from your new ISP e-mail to your old one. That said, experts say that if you do get a Web address through the ISP, make sure you are listed as the owner/registrant of the domain, not the ISP company. Whoever owns the domain can do whatever they want with the website. What’s my budget? “Fifty to 100 dollars per month should get the job done for almost any small business looking for reliable service,” Snow says. However, if highly sensitive information is being passed, you may want to get a server: a computer dedicated only to your website. As a small business, you mayl want to rent a server — not buy one — and this can bump costs up to at least $400 a month. You’ll likely need someone to handle upgrades and maintenance on the server, so be prepared to spend extra for that.. How fancy is my website going to be? A handful of pages with text and a picture or two are like peanut butter and jelly: not too complex. However, integrated movies, animation, and picture-based websites may need additional consideration. “If you’re creating a ‘dynamic’ site, one that involves a database or a coding language like PHP, ASP or ColdFusion, you’ll need to make sure the host has the proper software installed,” says Web developer Andrew Kamm, who works for the Demi & Cooper advertising agency in Elgin, Illinois. “In any event, check with the developer you’re working with and they should be able to provide you with a list of what they need or refer you to a host that can accommodate.” Will they be there when I have a problem? Unfortunately, the size of an ISP company isn’t necessarily reflective of its response time. In fact, larger service companies may be just unavailable. Professionals recommend calling the potential ISP provider, talking about your business needs and feeling them out. ISPs that serve your area can be located at C/Net or by typing “[your city] hosting” into your favorite search engine. If you do decide to go forward, make sure any promises are spelled out in writing. “If there were verbal negotiations between you and the Web-hosting company, be sure they are included in the contract,” advises the Better Business Bureau. “For instance, if the Web hosting company says it will respond to complaints or glitches with your account within 12 hours, rather than their usual 24 hours, be sure that promise is included in your contract.” And unless some extraordinary need occurs, you shouldn’t be charged for customer service on top of your business’ monthly service fee.

Choosing a Web-Hosting Service

our beautiful site

A few years ago, entrepreneur Blake Snow found a cheap Web-hosting platform for his new consulting business, based in Orem, Utah. The real cost didn’t come until later. “I [prepaid] 12 months service for a cheap host that I could only use for two months before having to make the switch to a better provider,” says Snow, who runs Web consultant Griffio Consulting. “I had to eat the cost.” There are more Internet service providers (ISPs) than ever, and while not all are out to fleece their customers, finding the right provider for to host your business website and provide Internet access for your staff requires asking the right questions. Finding the right provider can help make or break your business if e-commerce is part of your sales channel or e-mail is a means of communicating with customers. Here are some questions to ask when searching: What do I need in the package? Small business packages vary, but many ISPs usually offer the following: Disk space for your webpages and relevant multimedia content Multiple e-mail addresses Domain/Web address registration, such as www.[yourbusiness].com Basic “shopping cart” software for online purchases Continuing to use a previously established e-mail address is fine, since ISPs can forward mail from your new ISP e-mail to your old one. That said, experts say that if you do get a Web address through the ISP, make sure you are listed as the owner/registrant of the domain, not the ISP company. Whoever owns the domain can do whatever they want with the website. What’s my budget? “Fifty to 100 dollars per month should get the job done for almost any small business looking for reliable service,” Snow says. However, if highly sensitive information is being passed, you may want to get a server: a computer dedicated only to your website. As a small business, you mayl want to rent a server — not buy one — and this can bump costs up to at least $400 a month. You’ll likely need someone to handle upgrades and maintenance on the server, so be prepared to spend extra for that.. How fancy is my website going to be? A handful of pages with text and a picture or two are like peanut butter and jelly: not too complex. However, integrated movies, animation, and picture-based websites may need additional consideration. “If you’re creating a ‘dynamic’ site, one that involves a database or a coding language like PHP, ASP or ColdFusion, you’ll need to make sure the host has the proper software installed,” says Web developer Andrew Kamm, who works for the Demi & Cooper advertising agency in Elgin, Illinois. “In any event, check with the developer you’re working with and they should be able to provide you with a list of what they need or refer you to a host that can accommodate.” Will they be there when I have a problem? Unfortunately, the size of an ISP company isn’t necessarily reflective of its response time. In fact, larger service companies may be just unavailable. Professionals recommend calling the potential ISP provider, talking about your business needs and feeling them out. ISPs that serve your area can be located at C/Net or by typing “[your city] hosting” into your favorite search engine. If you do decide to go forward, make sure any promises are spelled out in writing. “If there were verbal negotiations between you and the Web-hosting company, be sure they are included in the contract,” advises the Better Business Bureau. “For instance, if the Web hosting company says it will respond to complaints or glitches with your account within 12 hours, rather than their usual 24 hours, be sure that promise is included in your contract.” And unless some extraordinary need occurs, you shouldn’t be charged for customer service on top of your business’ monthly service fee.

Error of Margin

Legacies EBC Computers: Class of 1999 The founder of EBC Computers knew he could continue to eke a profit out of selling commodity computer parts. He just didn’t know why he should During the past year, as he’ll readily admit, Eduardo “Edy” Bedoya began to feel different about his business: namely, he got fed up with EBC Computers Inc., which ranked #83 on last year’s Inc. 500. (This year it’s #223.) More specifically, he had grown tired of having to cast a hawk’s eye on costs just to protect a penny or two of profit — even if he was unusually adept at doing so. (For evidence, see ” Rare Commodity,” in the 1999 Inc. 500 issue.) So when Bedoya opened his second computer store, in September, he expanded beyond his core niche in the cutthroat business of selling computer components. For his new store, in Orem, Utah, he’s targeted high-end business customers who want powerful ready-made systems, laptops, and service. “I’m going after small-business users,” says Bedoya, who is based in Salt Lake City. He’s also chasing a profit margin of around 7% — as opposed to the 2% or 3% he’s conditioned to netting. For most of the 10 years since he founded EBC, Bedoya has focused on selling monitors and other components to customers who are either tinkering with machines in their garages or repairing and upgrading PCs in volume for, say, universities. His ability to make money in that business depends on how speedily his inventory turns over. A computer part can’t stay on the shelf too long, or Bedoya may have to sell it for less than it cost him. Paying as little as possible to procure inventory is also key. A shrewd buyer — rather than calling himself CEO, he prefers the title of purchasing manager — Bedoya negotiates hard with his suppliers and saves money by scouring the Web with automatic shopping bots (specialized search engines). He sometimes finds computer products online at prices that are even below what the manufacturers are offering. He buys them with his credit cards. “I got 12 free round-trips on my cards,” says Bedoya, who spends up to $65,000 on the Net every month. Even with free plane trips, though, Bedoya wasn’t getting where he wanted to go. So he began climbing the value chain, looking to attract a more profitable clientele. His new thrust should boost revenues at least 30% above last year’s sales of nearly $14 million. And he expects revenues to rise further come 2001, aided by another location he’s hoping to secure in Ogden, Utah. Bedoya buys his inventory mostly from Chinese suppliers on the West Coast and in Hong Kong, Taiwan, and mainland China — a network built on personal introductions. Two of his closest associates may end up investing in the new Orem store, “not because I need the money,” he says, “but to cement our relationship.” Bedoya traveled to mainland China in June and explored a new business — jewelry — through one of his local contacts. “I can land watches from China at $26.50 — ones that sell here for around $86,” he explains. “Well, what if I only take a 30% markup — that puts it at what, about $35? Which would you buy?” He also wants to sell wedding bands. “The markup there is like 150% or 200%,” he estimates. He has already added a jewelry Web site linked to EBC Computers’ online store. Clearly, it’s not just the drive for profit that’s steering Bedoya in new directions. This year his parents received U.S. visas to immigrate from their home in Peru to this country, joining Bedoya, who came in 1985, and his two brothers. He plans to set his parents up in a jewelry shop. “They don’t want to just sit at home,” Bedoya says, referring to the five-bedroom, four-garage home that they’ll share with him and his family in the shadow of the Rockies. Please e-mail your comments to editors@inc.com. To learn more about the Inc. 500, visit the Inc. 500 area.

Bold Storage

Techniques: Microcases Telecommuting Problem: Handling crucial files on the road Solution: A Web site for storing them Payoff: Bypassing the cost and security risks of laptops As regional sales director for a Web-based company, Melissa McNatt twice a week left her cat and her apartment in the San Francisco suburb of San Bruno to make sales calls in Southern California. On the side, McNatt moonlighted as an independent sales consultant, helping small-business owners with everything from sales letters to telephone scripts. But with her PC firmly ensconced in San Bruno, McNatt faced a problem: how could she run her own business while she was on the road? “I was struggling with how to do it all from my home computer,” she says. Frequently, McNatt and her customers collaborated to develop sales letters or PowerPoint presentations. To communicate — whether from home or from a computer at an airport or the nearest Kinko’s — McNatt relied on E-mail attachments, which sometimes led to technical complications. “You can’t do a fast download of a PowerPoint file,” she says. “And small-business owners are paranoid as hell about getting viruses.” To satisfy her customers, she often had to resort to sending printouts of drafts through the U.S. Mail — a time-consuming chore. And her lack of equipment on the road often hampered her wooing of new customers. If, say, she met a prospective customer in Los Angeles at a bar, she’d have to wait until the weekend to send a follow-up letter. “When you’re selling, you want to close as fast as possible,” she says, “before they get buyer’s remorse.” Then last July, about five months after she’d begun consulting, McNatt was at home browsing the Web when she happened upon a link to a company that offered document storage at its site. NetDocuments, in Orem, Utah (888-297-2736; www.netdocuments.com), has a Web-site format that resembles that of an online E-mail account. After registering and getting a password, McNatt found herself in the “NetDocuments Inbox Folder.” From there she clicked on a link that gave her access to the site’s tools for creating new folders and subfolders. Once she’d created the folders, she clicked on “Add new items to this folder,” and a box containing all the files on her hard drive popped up. With her mouse she simply highlighted the files she wanted to import into the various folders she’d created on NetDocuments and hit “OK” for the upload to begin. Now when McNatt makes the trek south — or even to a local customer’s office (she left her sales-director job in January to consult full-time) — she takes her consulting customers with her. From those same rentable computers, she logs on to NetDocuments not only to access her documents but also to share them with her customers through a feature called NetEnvelopes. NetEnvelopes works like an E-mail in-box with editing capabilities. First, McNatt designates with whom she wants to share a document. Those parties receive an E-mail message telling them that the document is open and that they can log on at any time to view or edit it. The only hitch is that to get into a NetEnvelope, the user must be registered with NetDocuments and have a password. The site does, however, allow users to set up accounts for others: McNatt can register a customer’s name and E-mail address, and that customer will receive a temporary user name and password to access the NetEnvelope. For $4.95 a month, users can get a premium service that gives them 100MB of storage space. McNatt, however, is satisfied with the 10MB she receives free. In addition to avoiding the costs of buying a laptop, she’s built her own Web site without having to spring for the technology to make documents downloadable off the site. Visitors can learn about McNatt at her site ( www.JumpStartSales.com) and go to NetDocuments to take advantage of her services once they’ve signed on as customers. And if she meets a prospective customer at a bar, she can walk down the street to Kinko’s and personalize her best follow-up letter on NetDocuments in minutes. “Now my sales cycle is two days, whereas before it was seven or eight,” she says.