Free makes me uneasy because nothing is really free. There’s always some kind of cost involved, even though it can be difficult to see at first.

My aversion to free includes startups that offer free services.

Yes, free is a powerful marketing tool because who, after all, doesn’t like getting something for nothing.

Far too often, however, free is a lazy marketing short-cut that does little to create or drive a business.

There are still too many startups that offer a free service, and then plan to create premium services after they’ve attracted lots of users.

At the same time, there are VCs happy to pour money into these startups, which are popular but hoping they can somehow make their product even better so a small percentage of  users will pay for it.

To me, startups that embrace free (not fermium) are afraid.

They’re afraid no one will like their product enough to pay for it.

They’re afraid the competition is too strong.

They’re afraid of not being good enough at sales and marketing.

They’re afraid to build a business.

This is not to suggest free-first never works but free strikes me as the emperor with no clothes.

Everyone is so enthralled with the idea of attracting lots of eyeballs that no one wants to be the little boy who says “Startup, how do you plan on making money?” (Note: A must-read is Mark Suster’s blog post on why startups need to “ring the cash register”)

There are people who contend free is different for online startups but that’s just digital gobbledygook.

Can you imagine free in the “real world” where you could, for example, walk into a restaurant for a free meal because the owner believes they will be able to charge once it has enough patrons?

Over the past year, I have started to slowly but surely buy or subscribe to more online services.

While it has a lot to do with more features and customer service, a key consideration is supporting startups trying to become businesses as opposed to emperors.

What do you think? Is there any merit to only free or free-first?

More: Check out Connor Tomas O’Brien’s article about how we need to move away from a free culture.

It’s apparently only the second time Apple has waded north of the border to make an acquisition. The question is whether the deal is representative of a cross-border trend, or whether it’s an anomaly. No doubt, many people will get themselves into a lather about how the purchase reflects an important development.

The newsletter also includes a story on how a spilled coffee led to a $1-million business, how startups should focus on building their brands rather than distribution, and how startups need to be aware of the costs of content marketing.

It’s easy to sign up for the newsletter, which is published every Saturday morning. If you have news or content you think would be good for the newsletter, drop me a line: [email protected]

On the plus side of the ledger, content marketing can establish startups as thought leaders and domain experts, it can provide potential and existing customers with relevant and interesting information, and it can drive search engine optimization.

This is why startups are so enthusiastic about content marketing but there is a key variable that can’t be ignored: the “cost” of creating content to drive marketing.

There are two elements to cost: people and money. Both consume a startup’s most valuable resources: time and cash. But the hard truth is there’s no way around spending time or cash to embrace content marketing.

For startups, it comes down to figuring out who is going to create the content. It could be someone internal who has good writing skills. It could be a contractor or agency, or it could be new hire.

So what’s the right option?

It comes down to how much content has to be created to meet the needs of target audiences. In some markets, a wide variety of content has to be pumped out. In others, a more focused approach is viable.

Once the needs are determined, it comes down to deciding what kind of content to create. It could be a blog, videos, a monthly newsletter, case studies or white papers.

Whatever the medium, an investment (time and/or people) will need to be made. As important, a startup needs to commit itself to making a steady investment given content marketing is a marathon, not a sprint.

For startups not quite sure about what content to create, the safest route may be a blog for a variety of reasons.

Out of the gate, a blog provides a startup with the opportunity to provide insight, expertise and information, as well as search engine juice.

As important, a blog can become an effective “engine” that can generate re-purposed content for other channels such as case studies, white papers and a newsletter.

Another benefit of a blog is it can be supported by multiple people, who can offer different perspectives. At the same time, it can also be a way for a startup to nurture corporate culture by getting many people involved in a marketing and sales program.

The bottom line: is content marketing is not an easy proposition for startups because there is a cost involved. As much as content marketing is appealing, every startups needs to assess whether there is enough of a ROI to jump on the bandwagon.

What’s your story? Why should I pay attention to you?

For any business, these are fundamental questions they must be answered to capture the attention of customers, employees, investors and other stakeholders.

But it’s troubling to see so many startups struggle with their inability to tell a good story, even when they have interesting products.

The reason so many startups fail at storytelling is simple: they don’t take a customer-centric approach to their marketing and sales.

Instead, their focus is themselves and what their products offer. It may not sound like a big difference but talking at your customers rather than meeting their needs or interests is a big, fat fail.

In working with dozens of startups, good storytelling begins with strong core messaging that answers the following key questions:

1. What is your product?

2. What does it do?

3. What are the leading benefits for users? (aka “What’s in it for me?”)

4. How is it unique, different and/or better than the alternatives?

There are other variables involved in the development of core messaging but being able to nail these four questions helps a startup tackle big chunks of the exercise.

So why is core messaging so important, other than letting a startup tell a good story?

In many respects, core messaging establishes a solid foundation upon which a startup can layer on its marketing and sales activities. Core messaging also provides a startup with consistency, coherence and cohesiveness (the three C’s) in it and its employees engage with different stakeholders.

Without a solid foundation, startups not only have trouble effectively telling a customer-centric story but struggle to effectively deliver things such as a Website that drives the sales funnel, social media and content marketing.

So how do startups begin with core messaging? Here are some key steps:

1. It begins with thinking about the customer. What are their needs, interests and points of pain? What products are they using, including those delivered by non-direct rivals – e.g. Excel vs. accounting software? What would make a customer happier, more productive or profitable?

2. Think about how your product can be embraced by potential customers. What are the key benefits and features that should be highlighted? Remember, we’re talking about the needs of  customers, not what a startup wants to tell customers. To get into customer-centric mode, a good exercise is a brainstorming session that involves people from different parts of the business who can offer a variety of perspectives.

3. Identify the key themes and topics that can drive the development of core messaging. It could be a single word or a phrase that has the potential to resonate with customers. Then, test these ideas internally and externally to get a better sense of whether you’re headed in the right direction.

Here are some important things to remember in developing core messaging:

1. It’s an iterative process that can unfold in different ways. If you’re lucky, you can hit a home run but core messaging usually takes time, patience and commitment.

2. Core messaging is a fluid, dynamic creature because it can change over time as the market and product evolves. Think of core messaging as drawing a line in the sand rather than etching something in stone.

3. Be prepared to think differently. Many startups are so focused on their products, they lose an important tool: perspective. It means new ideas and concepts can be quickly brushed aside because they don’t align with the current view of the world. This is a mistake that can undermine the creation of better and more effective storytelling.

Bottom line: If your story isn’t connecting with target audiences, your core messaging may need an overhaul. Rather than be intimidated, think about it as a one step back, two steps forward exercise that sets the stage for growth.

The development of core messaging is a key part of my startup marketing business. If you want to learn more, contact me.

More: For some insight on why startups need to focus on telling their story, check out Marco Barros’ post on why building awareness is more important than distribution.

In looking at hundreds of Websites recently for some startup marketing projects, it’s troubling and surprising that so many fail to deliver a solid, let alone great, user experience.

Here are some key questions a Website has to answer:

1. What what does your product do? People are digitally impatient so they don’t spend a lot of time trying to figure out what a company does. It means telling people quickly and clearly (and we’re talking about in seconds) about what a product does and, as important, how it meets the needs or interests of a potential customer. This information has to be snappy and easy to understand, which means using a small number of words and eye-catching graphics or photos. The penalty for dropping the ball is people will click away to another Website.

Best practices: Create clear and well-articulated messaging about what your product does and the benefits. Start with your homepage, and then continue to promote on other pages.

2. Who are you? Unless we’re taking about a major brand, most companies have to offer information about what they do, who they serve, and the people behind the scenes. The best vehicle is the “About” page, but too many companies don’t give it enough time and attention. In too many cases, About pages are a waste of time because companies don’t tell people what they do and who should use their product. Instead, they offer a confusing mash-up of history, philosophy, culture and approach, which makes the About page useless.

Best practices: Quickly tell people what you do and who you’re targeting, as well as offering links to the management team (including photos). And don’t be afraid of being creative by including things such as a timeline to show people the company’s progress

3. How does it work? Once your homepage captures someone’s attention, you may need to tell them more about the product so they understand how they could use it. A good “How it Works” page featuring some text, graphics and/or a video should let people quickly grasp what you product does, the key benefits and how they could embrace it.

Best practices: Make it quick and simple to understand what’s involved in using your product. The easier you make it, the more likely someone will move closer to making a purchase.

4. How are you different? There are plenty of competitive options so it’s important to illustrate your product’s unique characteristics and how they are different and/or superior from rivals. Don’t be afraid to boast – after all, this is about marketing and sales. Consider the use of interesting and clear benefits statement on the homepage, as well as charts that show how your product stacks up against competitors.

Best practices: Be confident and bold about how you stand out from the crowd. Highlight the benefits and features that let you outflank the competition to encourage potential customers that you’re the better option.

5. How much does it cost? You’d be surprised by how many companies make it difficult to discover on their Websites how much their products cost. But as someone goes through the purchase funnel, they’re eventually going to want to know how much it will set them back, so why not make it easy. For products with multiple pricing tiers, a clear and easy to understand pricing chart can be a valuable sales tool.

Best practice: At some point, the price of your product could be a deal-maker or deal-breaker. If you’ve done a good job of showing people the value of your product, you shouldn’t be reluctant to give them clear pricing information

5. Tell me how to buy your product? If your value propositions, benefits and features seem promising, you need to make it a snap for people to make a purchase. There should be strong calls to action, as well as clear instructions on how to buy – whether it’s on your Website or though partners.

Best practices: If someone wants to make a purchase, make it as easy as possible. If the purchase happens on your Website, the process should involve as few clicks as possible. If it’s through a partner, send people to a specific page rather than having them peck around on another Website.

6. How do I contact you? It sounds straightforward but it’s important to give people a variety of options to get more information, ask questions, inquire about partnership opportunities, or provide feedback. A “Contact” page should provide an email address, telephone number, physical address and people who can handle different topics.

Best practices: Let’s face it, most potential customers will ask questions. Your Website should provide plenty of answers through calls to action and a solid FAQ (an under-rated but valuable creature). At the same time, there will be some people who will want more information so give them options to serve the way they want to communicate.

Bottom line: A Website needs to effectively meet the needs and interests of potential customers, as opposed to a company’s needs and interests. It’s a slightly different look through the lens but doing a good job of telling people the best information at the right time is a great way to make your marketing and sales efforts more effective.

Here’s the way it usually works: A startup will have an interesting product with clear benefits, solid messaging, and value propositions, and engaged marketing and sales efforts.

It’s a good enough mix that it attracts customers willing to take a chance doing business with a company that has a short track record and/or minimal brand awareness.

The problem startups once the customer says “yes”. Rather than really closing the deal and making sure they’ve been able to embrace and get started with the product, too many startups do little or nothing. Instead, they think the game is over when, in fact, it has just begun.

Many startups, for example, will deliver confirmation emails that have little other than a short welcome message and someone’s username. There’s no sizzle, no guidance, no instructions on what to do next…and, frankly, no love.

Mistake. Big mistake.

The reality is attracting a customer is only part of the marketing and sales battle. Once a customer signs up, the marketing and sales efforts needs to continue through the entire life-cycle. Through email, social media, newsletters and customer service, a startup needs to nurture, support and embrace its customers.

A startup needs to show the customer how much their business is valued, encourage them to check out new features, highlight the benefits, treat them like a member of the family, and always be marketing and selling in ways that are relevant and interesting.

By keeping the marketing and sales engine going after the customer climbs on board, it’s not only a good way to create loyal customers but happy customers can turn into your best marketing and sales team.

Here’s another way to think about it: startup marketing is like the Denny’s menu. There are lots of choices, which is a good thing, so it’s a matter of deciding what meets your specific needs and interests.

As a startup marketer, I was happy to see April’s post because it should give entrepreneurs a better idea of what a startup marketer does and, as important, how marketing can drive a startup’s growth.

One of the biggest challenges facing startup entrepreneurs is many of them aren’t marketers or even that familiar with what marketing involves. As a result, marketing is regarded as a mystery and more art/magic than science.

The other thing about marketing is it often costs money, which is a difficult pill to swallow when you’re not even sure what’s involved. It’s not like hiring a salesperson who is going to bring money in the door by selling your product.

For startups, however, marketing is an important pillar of their growth, along with product development and sales. Truth be told, marketing touches so many areas  it shouldn’t be ignored or brushed aside until a startup has enough traction. It needs to be  part of the strategic and tactical mix from the beginning.

Entrepreneurs need to understand that startup marketing is not evil, expensive or not as important as product or sales. Simply because marketing is not something they know doesn’t mean it’s dangerous or a waste of time and money.

So how should a startup entrepreneur approach marketing?

Probably the most important consideration is determining what you want marketing to achieve. What are the goals and objectives? Is it creating messaging and brand? It is media outreach? It is community building or product development? Given marketing can help with so many areas, having a focus is crucial.

Once a startup knows what it wants to do, it needs a strategic and tactical plan. As my business has evolved, I have learned  strategy-lite and tactical heavy is the right mix. Given many startups want to move quickly, strategy often involves getting a  solid roadmap so the tactical work is focused.

Third, a startup should establish benchmarks for its marketing efforts. Whether it’s brand building, Website traffic or sales, a startup has to measure how well its marketing efforts are doing to determine ROI and whether strategic or tactical changes are needed.

Truth be told, startup marketing should not be a scary or intimidating proposition. Like any business activity, marketing should be embraced with the right approach,  expectations and plan of attack.

If you’re a startup, you need to do marketing because it can deliver many positive benefits, as well as support and drive growth. Once marketing is accepted a good thing, it comes down to being in control and having a strong grasp on what you want to do.

If you’re interested in learning more about how I do strategy and tactical marketing for startups, drop me a line.  

In the process, I started to track bloggers who wrote about startups on a regular basis – people such as April Dunford, Ben Yoskovitz, Mark Suster, Fred Wilson and Tomasz Tunguz.

For whatever reason, it seemed like a good idea to create a list of startup bloggers. It seemed like a pretty easy assignment but it took several weeks of research, which involved looking at dozens of Websites.

What I surprisingly discovered is there aren’t many individual bloggers who blog exclusively about startups on a regular basis – I’m talking about on a weekly or even bi-weekly basis. Some of the startup bloggers mentioned on lists such as this one from OnStartups have either stopped writing or do so infrequently.

In the end, I came up with 40 blogs that fit the bill. Keep in mind, it does not include large blogs such as VentureBeat, TechCrunch, The Next Web, et al because I wanted to focus on individuals. If you know a blog that should be on the list, leave a comment.

No means you don’t agree, not willing or able to cooperate or strike a deal, or simply don’t want to do something. It oozes with negativity, which is probably why many people say “yes” or “maybe” when they should really say “no”.

For startups, “no” is particularly hard because they’re always looking for a lucky break or lightning to strike. Saying “no” closes doors, ends discussions, kills potential and gets in the way of traction and growth.

So rather than saying “no”, startups sometimes say “yes”…and that’s when the trouble starts. When “yes” jump the queue in front of “no”, it happens for the wrong reasons or it happens at an inappropriate time.

The desire to succeed, grow or live to see another day makes startups jump into the fray when they should stay on the sidelines. It makes them agree to develop new features, enter into partnerships, hire people or take on investors. While it may seem right to say “yes”, the harsh reality is “no” is the better decision.

Perhaps one of the best reasons to say “no” is it helps to keep a startup focused rather than chasing things that don’t fit with the big picture plan.

It allows a startup to keep their collective eyes on long-term vision rather than short-term wins.

Truth be told, it’s easy for a startup to be seduced by requests from different stakeholders. Everyone has a good idea, a great opportunity or interesting wrinkle they want you to embrace. It is important to keep in mind all these may have benefits for them but not so much for you.

The next time you, the startup entrepreneur, get approach to do something, it’s important to think through what “yes” and “no” means.

What are the implications of saying “yes”, and what are the benefits of saying “no”? Look at saying “no” as the positive, and “yes” as the negative. It may provide a different and valuable perspective.

For some other takes on saying “no”, check out:

- Keith Ashton on why creative people say “no”.

- “Become your best gatekeeper” by Dorie Clark

Aside from putting a summer of hockey (yes, the season never really ends) and tennis in jeopardy, it forced me to move slower.

Rather than running around trying to get multiple things done, I had to focus on getting one thing accomplished before moving on to the next task. For someone who multi-tasks, it was a dramatic change in behaviour.

The upside is got me thinking about many startups do business. In an effort to become successful, they madly run off in multiple directions as quickly as possible. By working on many things at the same time, the idea, in theory, is lots of stuff will get accomplished – hopefully, all good.

One of the big reasons for this modus operandi is fear of failure and running out of time. If startups are not working on a variety of goals, they think they’re putting themselves at risk, particularly if they’re operating in a competitive marketplace.

The problem, however, is taking a fast and furious approach often increases risk and increases the possibility of failing.

What happens is many of a startup’s goals aren’t successfully completed because they don’t receive enough attention. Instead, many things are done in a mediocre way.

The most blatant example of a startup trying to do too much, too quickly is the feature flurry. Rather than making sure each feature performs well and meets the needs of users, too many startups pump out feature after feature in the hope that some of them will stick.

From the outside looking in, it appears a lot is happening but little or none of it is any good because the startups has emphasized quantity over quality.

Maybe the best approach for startups is slow and focused, rather than fast and furious.

It means a startup has the appetite to move forward pragmatically and thoughtfully rather than being a tactical machine. It means taking a slow, methodical approach that involves making decisions after healthy a healthy amount of discussion and consideration.

It could see a startup act differently than many rivals, who may appear to be more active and aggressive.

But don’t confuse being slow to being uncompetitive. Startups that decide it makes no sense to move at a break-neck speed have, instead, determined that being focused is a better and smarter approach.

It takes courage to be slow and focused because it can be like going against the flow. The upside is startups can spend their time and energy on making the right decisions at the right time for the right reasons.

The goal (dream?) of getting covered by reporters and bloggers is, in theory, seen as valuable because it has the potential to do so many awesome things: build brand awareness, attract new users, establish credibility and provide a competitive edge.

Given the importance placed by startups on media coverage, it isn’t surprising to see creativity, somersaulting and horse-trading. Some of the techniques involved trying to “play” the media include things such as exclusives and embargos.

The problem is startups spend as much, if not more, time on tricks and games as they do developing interesting and unique stories. In many ways, it’s a lack of confidence or creativity, or the fact what they’re doing isn’t that interesting.

I’ve always had a problem with startups that play games because it comes across as inauthentic and, frankly, cheesy.

I was reminded about this kind of behaviour recently when I was approached by a PR person about a private beta. The pitch included details about their performance on Apple’s app store. This was a startup I had already heard about on Twitter, and had started using after getting an invite to the beta through the Website.

The PR person said the details about the Apple store were embargoed for two weeks. It was surprising to discover a story about the startup on a major tech blog. It was explained that a “few select media” had received access while the rest of us had to wait two weeks until the embargo is lifted. It made me feel like a second-class citizen.

The problem with embargos and exclusives is they’re nothing more than short-cuts disguised as a media outreach strategy.

They try to create false sense of urgency or specialness in the absence of something fundamentally better and more effective: real relationships with reporters and bloggers.

While an embargo or exclusive may get a startup coverage, the gains are often short-lived. An exclusive story published by TechCrunch, for example, may generate a spike in traffic but is it really worth the reality that many other blogs won’t provide coverage?

My advice to startups is forget about embargos and exclusive, and quickly dismiss advice from PR people trying to sell you on their merits.

Instead, you have three options:

1. Establish and nurture real relationships with reporters and bloggers. Comment on their articles and blogs, meet them for coffee, offer them valuable insight and context without any expectations of coverage, follow them on social media and share their content, approach them at conferences, or provide them with story ideas. The goal: rise above the crowd by being personal, helpful, interesting and different from all the other startups battling for their attention.

2. Be creative rather than pitching how your startup is the greatest thing since sliced bread – something nearly every startups believes and declares. Instead, think big picture or out of the box. How is your startup part of a larger and more interesting story that involves other players? How is your startup unique or different from everyone else claiming they are unique and different?

3. Be honest and insightful about what you’re trying to do. When your product launches, for example, talk about the problem you’re trying to solve, why you decided to take a specific approach and some of the challenges encountered along the way. By being authentic and open rather than promotional, your story becomes better and more real.

Both of the above take time, effort and energy – a lot more than simply deciding to use an embargo or exclusive. At the end of the day, however, they’re far more effective in the long-run by establishing a solid foundation for additional coverage.

The bottom line: Attracting and getting media and blog coverage needs to be part of a long-term plan that should start long before a startup begins to seek coverage. It should not be seen a short-term exercise that will suddenly ignite an explosion of never-ending coverage, new users and brand awareness. And, finally, avoid using embargos and exclusives.

The newsletter also includes a look at whether startups should use social media, how entrepreneurs can be smarter about raising money, why raising venture capital may not be a good thing for some startups, and the spotlight on Yoleo, a cool alternative to Google Reader.

To get the newsletter delivered to your inbox every Saturday morning, all you need to do is subscribe.

Is it timing? Effective marketing and sales? A user-friendly product?

It could be any one of the above but the biggest reason a startup succeeds is it solves a problem. The problem doesn’t have to be big, it just needs to be a problem that people want addressed. If a startup can be a problem-solver, it stands a better chance of resonating with consumers who have a need for it.

Now, this may strike you as an obvious statement but it’s always surprising to see startups that don’t solve problems. Instead, they offer nice-to-have products that could make life a little easier or convenient but people can live with or without them.

Many of these “non-problem” startups are features as opposed to products. They look and feel like something that could be bolted on a startup solving problems. Some of these startups could attract some attention but most of them slip into the night without so much of a sniff of the spotlight.

For entrepreneurs looking to create a startup, the most important thing to do is identifying a problem that people experience. It can be a small problem that addresses a minor irritation but that’s okay if there are enough people looking for a solution.

By focusing on a problem, an entrepreneur has a solid foundation for creating a product. Ideally, the product is accessible, intuitive and user-friendly so it’s easy for people to use and embrace it. It’s a fail and a shame when a problem-solving product fails due to bad design, UX or UI.

With the right product solving a problem, a startup can develop sales and marketing campaigns to drive awareness and revenue.

It is important to note a good product, along with solving a problem, is an important pillar for startup success. As much as you can have great sales and marketing, it doesn’t matter if the product is bad or not needed.

Bottom line: solve a problem to give yourself a shot at success.

Many startups find social media irresistible because the major services are free and popular. The problem is startups forget that social media can suck up their most valuable resources – people and time.

It means startups need to be strategic and careful about how and where they spend their time on social media, otherwise they risk spinning their wheels with little ROI.

At well, startups need to recognize social media is just one part of a marketing program.

The most important consideration is determining what social media services will do the best job of engaging and meeting the needs of a startup’s target audiences. When there are only so many bullets to shoot, you need to choose carefully.

When it comes to social media, I have a two-fold philosophy: walk before you run, and focus rather than spreading yourself too thin.

For startups, this means picking a social media service that will drive the best results, and then do a great job meeting the needs of potential and existing customers who use it.

For a B2C startup, Twitter or Facebook may be the best options. Twitter has value as a way to distribute value-added content, drive leads and do customer service. Facebook can be a good place for a startup to engage with customers, particularly for products used on a regular basis.

For B2B startups, LinkedIn and Twitter may hold the most potential. LinkedIn can be good to play in a specific market or industry, particularly the use of groups. Twitter also has good potential but I would suggest it may not be fertile as it is for B2C startups.

Aside from selecting the right social media services, it is important to have a strong idea about how much time and effort they can to invest to get the expected results.

If there are only a handful of employees, a startup may have an hour or two each day.  Using the right tools, it will still let a startup publish content, monitor activity and engage with customers.

Last but not least, a startup needs to constantly measure social media activity to see if the expected metrics are being met. If the performance is falling short, it may mean a change in tactics or exploring another social media service.

Bottom line: social media can be a valuable tool for startups. But startups need to have a plan of attack so social media doesn’t consume too many resources or not generate enough ROI to justify doing.

Here’s a rough chart about the social media services for B2C and B2B startups

For more thoughts on startups and social media, check out Eric Basu’s column in Forbes.

Some of the other popular items include:

- The struggles of the Toronto Blue Jays’ Ricky Romeo, and the lessons for startups.

- The C100′s infographic of the Canadian startup landscape.

- Breather and OMSignal raising seed capital.

- Mark Suster on why startups need well-articulated strategies.

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