Business Attitude: 2015

December 12, 2015

Fantasy Sports (FanDuel and Draft Kings) - Political and Vice Driven? - My Opinion (IMO)

FanDuel and Draft Kings have changed the way people watch sports as the concept of 'team" has been redefined. The business model of fantasy sports, which has come to its own in the last few years, is typical of many. It is obvious it sat under our noses for years, it generates rewards for its participants, it is attached to a human vice and it generates profits for it's business owners.

Government is now attacking the business model for many perceived noble reasons - IMO, the real reason for the uproar is that they (term used very generically) did not think of it first. Let's review some some issues where I will express my opinions.

IMO, the federal government has no business making decisions about fantasy sports - the Republican presidential debates pointed out the hypocrisy (I can't speak much to hypocrisy as I am on too many issues). These "gambling" issues should be handled at the state or even at t0he city level. Technology allows this to happen pretty easily these days. Politicians are talking because its in vogue to talk about (the press is listening) and as a whole are jealous that they did not think of it first (IMO).

It makes sense for Nevada to make it illegal because the state's industry is gambling. I trust that the Nevada legislature and the people of Nevada made that decision for themselves.

Where it does not make sense, again IMO, is a place like New York where the distribution of vice is sold on an exclusive basis by state and local governments allowing 'vicey' forms of gambling to happen (OK, maybe New York is not alone in this). Schenectady is an example of this - I am amazed by how many people talk about the recent 'industrial town casino' decision all over the country - "stupid" seems to be the common phrase in the discussion and it's a bipartisan discussion. I don't fault the democrats of Schenectady - whoever was in office would have taken credit. This decision has already cost local jobs (GE's Alstom Power acquisition - you gotta read between the lines a bit so I will call this 'my opinion'). Oops, this is a different discussion - sorry.

Oh yea, Fan Duel is illegal to play within New York State borders.

In my opinion, the fantasy sports companies should self regulate. This could be done easily by "limiting the gamble" - no games over $10 and limit the total wagering to $50 a week - there are only two big players in the business. This would not be a big issue to the fantasy sports companies as their money is made at the $10 and under games. It would also take away to the perceived competition to state controlled gambling. Regretfully I don't influence the morals, or dictate policy or law, to either of these companies.

Am I a Democrat or Republican? Your opinion will probably be based on whether you agree with me (I am in your political party) or disagree with me (I am one of them). In either case, I have 4 games going tomorrow and am fully in $5.

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

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November 6, 2015

Firsts - The Obstacles When Starting a Business Venture - It's Just Like the Rest of Life

Published in Print Exclusively In the Windham Eagle, Windham Maine - January 22, 2016

Starting a business and becoming an entrepreneur (for the first time) is not about taking one step at a time, it's about getting beyond the firsts - maybe many first or even a series of first (purposly left singular). The advice here is when you encounter a first, don't consider the task, consider it as a first - you have done 100s of firsts before.

First Anything - Just Do It

Think about what scares us in life - it's not the doing of something over and over, it's about doing those things for the first time. But those firsts are more than scary, they also become our most revered and treasured memories. Think about it - Here are some examples of our firsts.

First Day of School - Elementary, JHS, HS, College
First Date, first Dance, first Girlfriend/Boyfriend, first Kiss, first Time
First Love, first Child

First Job, first Sales Call, first Rejection, first Sale

(Celebration of the first $Dollar$ pinned or framed on the wall)

First Business, first Hire, first Office

What's common here? It's the word first. When we are afraid or scared, it's because it's your first time. It is not about being insurmountable or impossible - it's just that we have never done it ir been there before.

Remember, your first time at anything has an unknown element to it - the unknowns, by their very nature, at a minimum, cause us hesitation - at the most, cause us fear.

Any venture, any opportunity, any challenge, and much of life is about doing, and getting beyond, your firsts.

We celebrate firsts. We reminisce of firsts.

"When was the last time you did something for the first time". ~ John C. Maxwell

"What makes the Biggest Difference in ones chance of success - Doing It" ~rel

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

September 29, 2015

A Tale of Two Cities - "It was the best of times, it was the worst of times..." Maybe it is Today

Updated Writing: Back in 1982, I was working for NCR in Dayton, Ohio and doing my grad work at the University of Dayton. My instructor was a financial VP at NCR which made the course immediately at tad easier for me. Early in the semester, this instructor took a liking to me. It was probably our third or fourth class when he became somewhat philosophical, and even emotional, about a topic - he discussed the misuse of economic power. He did not discuss this from a technical viewpoint, but from social endgame viewpoint (remember, this was the early 80s - late baby boomers were flourishing - being a Yuppie was the in thing - it was the Reagan years - Round One). After class, he asked me to come to his office. There was something he wanted me to have. He handed me his marked up old copy of A Tale of Two Cities and said, "Bob, make sure you read this". It was about two years later, after reading it – that I put the puzzle pieces together.

A Tale of Two Cities continued popularity is more about history repeating itself (IMO) than any economic theory or situation. Not enough people read, especially our youth, which is why we are destined to repeat our history again and again.

Below Originally Published September 2012

Original Writing modified and expanded: I very rarely express a political opinions, but I believe our politicians are tying our hands behind our backs and then holding us responsible for scratching our bellies and fining us if we don't... I fear that in our lifetimes we will experience not only what we saw in Greece, but as an extreme, what we saw in Egypt (Note: Originally written in September 2012). It will not be the fault of one group, class, corporation, or party, but what we, as a people, ignorantly chose and even voted for. Thus it’s what we wanted.

Someone will, in their documentation of history, say: "It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way - in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only." ¹

From Wikipedia

In spite of what we learn, how smart we are, and the wisdom we have - history continues to repeat itself - Read about, (or even READ) A Tale of Two Cities.

¹ Wikisource: A Tale of Two Cities/Book the First/Chapter I

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

September 20, 2015

How to Calculate your "Cost of Customer Acquisition" - The Most Common Question

Since writing a few articles about "Cost of Customer Acquisition" I have been asked several questions about it; the most common being, "How do I calculate my own Cost of Customer Acquisition?" Lets try to answer this.

First, there are both many different scenarios and many ways to calculate Cost of Customer Acquisition.

The simplest of the scenarios is the Commissioned Salesperson. Take all the out-of-pocket (OOP) costs you have in a year (or any other time period) and add it to the amount you want to make - your desired income. Then divide it by your new customers (or projected new customers); the result being your cost of customer acquisition.

Example: I want to make $95K/yr and I have $5K in miscellaneous OOP expenses totaling $100K in expenses (your income is an expense to the business even if it is just you). Take that total and divide it by your new customers - let's say 100 new customers - cost of customer acquisition - $1000. Two factors I did not consider here are 'cost of customer maintenance' and 'diminishing returns' as both come more into play when you transition from sales person to small business.

A second example would be of a small business large enough to have a few sales people. In this scenario, the owner will want to consider more of the costs as their will actually be more costs. Consider everything, from the cost or marketing, advertising, signage on the office, promotional pieces and lets not forget the base salaries, commissions and the costs of having salespeople employed as well. All these things, and potentially more, can be included in the cost side of Cost of Customer Acquisition. In reality, it's all up to the 'measurer' and his or her metrics and/or analytic desires. I have never seen two companies measure it the same way, but I have also never seen a company inconsistent in the way it measured this metric - this is good.

So no matter what size company - know this metric, and measure it in any way you want.

The objective in using this metric is to, over time, reduce the Cost of Customer Acquisition. This is accomplished, by either reducing costs or increasing the number of customers - if you know what I write about, you know where I lean. Marketing efforts, sales pushes and product mix changes will also affect this metric.

A few final notes:

Diminishing returns are important to at least think about, especially if this number is going into a business plan.
High margin / big ticket items have different metrics as does service businesses that may get clients who come back forever,
Cost of Customer Acquisition is much different than Cost of Lead Acquisition / Generation.

I believe it is one of the best metrics for any growing business.

Cost of Customer Acquisition

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

September 4, 2015

McPrint vs Local - Its no different than Big Box vs Local (Oldie but Goodie - Reposted)

This article was written back in January 2013. I chuckle every time I read this.
This is why you need to find and use your local printers and designers - The are the experts in your home town.

Buy Local and Preserve the Expertise

So this morning I went on continuing my research on "Local" and, in particular, "NetBetter" printing. I walked into Staples just to get up-to-date info on the McPrint business (Understanding the Changing Print Market). I have difficulty sounding anything but sarcastic in this article, but it's the epitome of Big Box and McPrint. Here is how my conversation went this morning (with some injected commentary).

Me: "Hi, I'd like to get some pricing on some business cards".
Staples: "Sure, we have several different types. You can order them online.
Me: "Wow".
Staples: "If you need them now, order the "Instant" cards, we do them here".
Me: "What size are these, I don't like the undersized business cards like from Vista".
Staples: "Our cards are all standard 2" x 3"."
Me: "You mean 2" x 3.5"." (thinking she just mis-spoke).
Staples: "No, our cards are standard size, 2" x 3" (at this point she looks at me and sighs (like saying, 'you see which side of the counter I am on')).
Me: "No, standard business cards are 2" x 3.5"."
Staples: "No they are not". (the 'your stupid' look continues).
Me: "Go grab one, let's measure it - I just want to make sure they are not undersized like Vista cards".
Staples: As she walks away with a frustrated look, grabs a card and measures - "Oops, we are both wrong, they are 2" x 3.25"." She tosses the card on the counter next to a sample I brought in.
Me: "That's 2" x 3.5"."
Staples: With frustration she remeasures and then humbly states: "Oh yea, these ones are 3.5" wide".
Me: "OK - I'll check the pricing online".
Staples: "Order the 'Instant ones' if you want them produced here".
Me: "Bye"

My morning - I must remind myself that this is McDonald's and not Morton's: "NetBetter" all !.

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

August 30, 2015

Let's Start with Reining in the Banks - A Localization Fix

I originally released this article a couple years ago - some bank mistake, magnified by it being a national bank had occurred. Bank deregulation amplified these mistakes making these national mega banks not insurable by the FDIC (even though they do - and tell us they do - it makes us feel better (?)). Through deregulation, bank mistakes are magnified and local money becomes a foreign investment. There is a very simple financial principle that makes this very understandable - portfolio theory; if one local bank goes out of business, the FDIC can cover it; when a mega bank goes out of business, not only do we the people lose, but we the people feel it. Mistakes happen (i was a proponent of the deregulation of banks); it about time this one gets fixed. Like Politics, all money is local.

Now the original article (with a few small modifications).

Until the 1970s, banking was governed primarily by state laws, and banks could do business only in their home states. From the mid-70s through 1999, a series of laws deregulated banking eliminating state lines until banking became completely deregulated; those laws and acts included:

In my opinion, deregulating the banks was one of the biggest mistakes that our government made (allowed) over the last 30 years, but I can only say that in hindsight. I believed in deregulation of all commerce; only wisdom has taught me differently.

So why did deregulation occur? Technology, competitive opportunity and expansion, a spreading of the capital to where it was needed, and finally, an economy of scale - a more efficient system. All of these reasons make sense - most occurred and some did not ("...banks peak in efficiency when they reach the size of a small regional institution". says Stacy Mitchell of The Institute of Self Reliance - watch her TED presentation).

So why was deregulation bad? Very simply, money no longer had to stay close to home. Banks could invest your money in projects and products anywhere. Since the idea of business is "to profit", money went to where the most profits could be obtained (the money business is much different than services or manufacturing where location in significant). Sometimes the money went to bad mortgage instruments - the rules allowed this. Sure there were problems like the ones the media made big, but things like big bonuses were earned by creative smart people working within the rules - oh yeah... Having banks working within state boundaries would have greatly limited the size of those bonuses as well - simply, the market would not have been as large.

So what is the solution here? Keep money local - local mortgages, local business, local commerce, local people. In my opinion, moving banks back to being state regulated would solve the problem. This is a monumental task that some people would scream out to be impossible to accomplish. It's not. It was done with ATT (modern history) and Standard Oil (early in the 20th century); in both cases, the sum of the parts were greater then the whole as competition and creativity boomed. So, how? It will be a process much like, but much easier (IMHO) than the aforementioned examples. Regretfully, only the people would share this interests - the banks, their lobbyists, and most importantly, the money would have no interest in this. I would be perceived by the money (and thus the media) as a flaming liberal - whatever.

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

August 27, 2015

Giving Your Customers What They Want - Online vs Brick & Mortar - It is the Same

To often we see websites that first, tell visitors all about themselves - who they are, how long they have been in business and about their owner's background. In the Brick and Mortar world that would be equivalent to having a customer ask "where are your mattresses?" and you, instead for asking them about 'their' needs and wants (and taking them there), telling them about your qualification and expertise in mattresses. Sounds kind of foolish from the Brick & Mortar perspective - so then why do we take that approach online?

Websites need to act more like their Grand Fatherly predecessor and take the client directly to the products being asked about - to the "Mattress Department". In the online world that would be a deep link directly to the mattress pages.

This is just common sense - isn't it?

Deep Linking your SEO and PPC down to the brand and product level will get you both higher conversion rates and less costly PPC. If someone search "Prince Tennis Rackets" and your sporting goods store comes up, the link should take them to the branded page of and for "Prince Tennis Rackets" - not to your home page. In the PPC model this also means less expensive searches; which do you think is a more expensive key word search? - "Tennis Rackets" or "Prince Tennis Rackets". This is also true when you go from the brand level to the product level - both a less expensive click and a buyer that knows what they want. Take them directly to the product and put a big "Buy Me Now" button there as well as a phone number to your local store just in case they want to pick it up now.

Exercise a little common sense in your online marketing plans and efforts.

Marketing and sales have not changed, we just have a few more tools today.

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

August 21, 2015

Public Speaking / Business Presentations - How I Got There and Why I Did

I was asked in an online speaker chat recently about my speaking and presentation background and how I was able to do it as frequently as I did and how I was paid. To answer that, it requires a little background and history and thus I wrote this for them.

First: Let’s make it clear, Public / Business speaking is rarely a profession (consider it never). You are “somebody” first; you don’t need to be a celebrity, just somebody in something with something to say.

Second: Practice, practice, practice. If you do not speak as part of your job (salespeople) or are not civically active in your community, it’s tough to practice. Your dog does not engage well enough - nor does your mirror. Being a good speaker also requires you to be social.

You must be confident in what you say; a lack of confidence is evident and can kill a great presentation. Passion goes a long way as well; believe in what you are saying as well as yourself.

Speaking should energize you – you should be able to draw from your audience an energy like no other. When you walk off the stage, your feet should barely be able to reach the ground.

Surprisingly, I practiced first as an engineer giving presentations; then a salesperson talking and giving presentations, as a Cubmaster speaking to 40 children and their parents, then as an entrepreneur doing more selling and training. All of a sudden – I was a speaker (presented papers) with invites to various technical conferences and on behalf of companies like Oracle (CODA, IOUG and OpenWorld), Sybase, Sun Microsystems, Intermec and Brio (note: Oracle never paid me, they just gave me a bigger room). I used to speak anywhere anyone would listen (you should too). I was storytelling about my customers' successes with my companies' products and services (all the time, selling something too).

So when did I find out I was good at this whole speaking thing? In the mid through the late 90s, my company was doing a great deal of contract training for Sybase. A Sybase VP asked if I would like to be a fill-in for a late cancellation at a by-invite C-Level, Non-Tech Tech dinner that Sybase did quarterly. Of course, I jumped at the opportunity. I was given the opportunity to talk about what I liked to talk about, to an audience I wanted to get to, from a non-tech perspective, and it happened to be what my audience wanted to hear. I was the popular guy to network with after the dinner and I had decision makers who all (seemed like all) wanted our services. Sybase invited me back next quarter and I was very happy to oblige. I did this for about a year and half (only rule, I could not use the “O” word (Oracle)) In my opinion, they were doing me the biggest favor in the world – easily doubling the size of my business at the time.

Then it happened - I could not make it to a presentation. I let Sybase know with plenty of warning – plenty of time to get a replacement. They immediately showed their cards offering to pay me - pay me more than I could imagine, almost feeling insulted that they had not paid me for the last year and a half (remember, I would have paid them for the opportunity). As much as the offer was, I did not feel it enough to change my plans, so I said “no”. They kept upping the offer over the next 30 minutes until it was 6X their original offer – at this point I was afraid they were going to pull away, so I humbly said “Oookkk”. At a later date, I learned that Sybase valued my presentation at $250K each in incremental services and software sales. I felt special. Just an FYI, this does not work everywhere – speakers to fill slots get paid appearance fees (usually not enough to cover costs). It is when they want [Your Name] that wallets open.

Moral of the story: I would have never known my value if I had not had the ability to say “no.”

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

August 7, 2015

Getting your SEO / Ranking Possibilities Right from Day One - SEO Tips Series

So you are creating a website and your objective is to get found. The first thing you do is go to the network registrars and get your domain name (URL). From the beginning (NOW) lets do it right. Let's get your website's SEO off to the right start.

One of the first things the search engines look at is how long the website has been around. It's the first piece of information in establishing and setting a level of trust. Think of it in terms of job hunting - recruiters look for stable people who have been stable in their job history (funny oxymoron their). The search engines have been programed the same way; has this website been around a while? This one is tough to control if you are just out of school or a new website.

The next thing they look at is how long you (your URL) plans on being around. Again, like job hunting, planned stability counts; like buying a house or any root planting scenarios. In the case of your website URL, if you bought it for one year verses buying it for 7 years speaks loudly to your plans and confidence. One Year domain are many times just flyers - not a lot of confidence in its existence thus not a lot of trust given by the search engines in return. Buying for 7 years is like saying: “I want to be taken seriously.

SEO Tip Bug

Start out on the right foot with your website - for the extra $100, the search engines will take you a bit more seriously from the get-go.

This SEO tip will always be current.

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

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July 16, 2015

Real Estate Agents - Best Marketing Practices - Best Business Increasing Practices

Local and Localization is about sustainability and no group defines Local better than Real Estate Agents and Brokers. This creates unique opportunities for agents and brokers to market themselves and marker their brand. Remember, even though the product is the home, it's the agent that we hire.

Because Your Customers
are your Neighbors

In Real Estate, the Cost of Customer Acquisition is high whether it is for a listing or for a buyer - much higher when you consider the time invested to both obtain the client and maintain / service the client (time is a real cost). Agents and brokers market themselves in many ways - each serving a different purpose.

Internet and Social Media - A necessary evil. MLS, Zillow, brokerage website and your own website are all things you need to get going. There is plenty of help available as these are the easy ones to begin your business venture. People may also "check you out" on Yelp or Facebook. High labor cost - low direct / measurable return is the norm from Internet marketing. I don't want to underplay this; your Internet presence is required in supporting your brand - ask me why (for another article).

EDDM with a Call to Action

Direct Mail - EDDM (USPS Every Door Direct Mail) has the highest return for real estate agents, but is the most overlooked. Let's analyze a few scenarios. EDDM, if you are unaware, is a USPS service that give you the capability to target, not only Local, but a neighborhood - making YOU a neighbor. NO mail list, or cost of a mail list, required.! What better return can you have; Retail EDDM is inexpensive in that it is less than HALF first class postage rates, and your message touches all the homes around the one you just listed or sold. It's targeted by the mail carrier route that your listing is within. It contains a very custom message about THAT LISTING. It contains a "call to action" on that house ("Open House on Sunday, June 3rd from 1-3 PM). It contains a message about YOU. YOUR SELLER WILL LOVE THIS. Neighbors will visit your open house (because it's in the neighborhood (Curiosity)) and you will meet a lot of people - isn't that what the real estate business is about? Does this generate some ideas?

EDDM is also a very cost effective way to introduce yourself to the neighborhoods you want to specialize - the neighborhoods where you are an expert.

Return on EDDM marketing is huge.

Referral Marketing - This one is not a new concept in the real estate business and is definitely the big winner. Your good relationships (goodwill) with local mortgage companies, banks, the Chamber of Commerce and local businesses will put you on their referral list

So how can you add to your referral marketing opportunities and returns? Do some proactive referral marketing.

Everyone you know (have touched) at mortgage companies, banks and The Chamber of Commerce should have a referral card - one custom to themselves. Why? First, because it is also about them, thus they are more likely to use it. Second, you can measure the return. Provide some sort of motivation to each side - a home evaluation, free local packet of info /coupons (from friends) to prospective clients and maybe a referral reward to your referrers / friends. I purposely use the word "Friends" here - "we all like to do business with people we like" first.
Referral Cards

On the sale / buy of a home, print a set of thank you / referral cards / announcement cards that are specific to that client - One with their big smile and the words "The Williams New Home"; these will go everywhere. Your referral card will go from your customer, to their friends and colleagues. Remember, include a call to action - several - about both you and the new homeowners:
"Directions to The Williams New Home". Cool approach, huh.
Possibly the most important task you have to improve your referral selection: Be Part of the Community - Be a Recognized Face = Be a Recognized Smile.

Call Me for advice - We Consult and We Build your referral program. We Print and we will measure (count your money) if you like..

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

EDDM and Referral Marketing Programs
are Services Provided by all LightsOn / Time4 offices.

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