The “Biz” Is Dying . . . And Businesses Will Win (My Most Important Episode Yet)

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Hello, everyone. My name is Clay Collins and welcome to today’s episode of the marketing show. It is Tuesday. This is exciting. And I have something extra special to share with you today. So, all the time, like, nearly every single day on Twitter or email or just on a phone call with someone, I hear this question.

And the question goes something like this: what’s the next big thing? Is it automated launches? Is it automated webinars? Is it a new kind of launch? You know, what is the opportunity? What’s the next big thing that’s coming? Is it mas – you know, like, what is it? What is it? And here’s what I think the next big thing is. Okay? It’s business, business. That’s business with two syllables and eight letter, business. Not biz, you know. Not some cutesy thing, but business.

And I really believe that we are entering an era of online business. We are moving from the biz era, right? Hobbyists, one-man guru shops, people who, like, would never in a million years, like, higher an employee, an employee, not some VA that’s like $3 an hour somewhere and they’re trying to get, like, the cheapest till they can and there’s some human resources race to the bottom. But an employee, they would never do that, right? Actually, there’s a whole bunch of things that they would never do. And we’re moving to an era where the businesses, the real businesses are going to take over where the biz’s used to be, right, where there are a bunch of one-man guru shops and hobbyists and people dabbling around and people wanting to do stuff for the lifestyle and not because they really care.

So, I want to really talk about the difference between a biz and a business and why having a business, a real business is an incredible opportunity right now for you online, if you’re dedicated, if you care, if you’re willing to play a big game and really step in to this thing and do what you were born to do with regards to your passion and what you care about. So, let’s talk about the difference between a biz and a business, okay? A biz can’t sell without discounts and cart closing and all kinds of, like, hoopla, and there’s only two more spots left and blah, blah, blah, blah, right?

We see this so often, right, with Groupon and, you know, online, and it’s my birthday, there’s a sale, and all this stuff. We see so many businesses that literally cannot make one sale unless their thing is half off. In fact, I’ve seen some businesses where you never see the product on sale at full price. It’s always 50% off, right? And there’s always a sale. That’s a biz, right? And you see, businesses that can’t sell a damn thing unless they’ve got some huge scarcity play and the products coming off the market and there’s only four more spots left. You know what that is, that’s just crappy marketing. If you can’t make a sale without a whole lot of scarcity or a huge discount, then you’re kind of a crappy marketer. A business on the other hand, has a product that is so essential that they don’t need a whole bunch of hoopla and hype to make sale. It’s a good product. There’s a need for it. They’ve either created the demand or the demand already exist, but they don’t have to do a bunch of, like, crazy nonsense to get a sale, right? It’s an essential product. It’s part of the cost of doing business. It’s part of the cost of whatever the pursuit is, okay?

Another difference between a biz and a business is that a biz is 100% dependent on partners for traffic, right? The only way they get traffic, the only way they grow their list, is they get a bunch of their buddies to mail for them, and that’s how they make the sale. They are not buying ads. They’re not doing SEO. You know, they are 100% dependent upon their competitors to send them traffic, to get any kind of traction in their business. A business, not a biz, a business isn’t dependent on anyone for traffic. They have diversified traffic sources. They can buy traffic. Maybe they don’t – you know, if something goes bad with Google, they’re buying it from Facebook.

They’re buying it directly from websites. They’re not dependent upon their buddies and the little circle of influence or whatever is going on… a little cabal, to get traffic. They can buy it. That’s another difference between a biz and a business. A third difference, and there are lots of them, but this is just the third one, is that a biz has a fluctuating product line. Every single six months, they have a new product and the old one is going away. And the old one is going away because during the last sale they said it would never ever, ever, ever, ever, ever be available again ever. And they have a fluctuating product line. You never, you know, every three months, four months there’s a new product and the old one’s going away. A business has a stable product line. In fact, you can make recommendations to other people that they should buy this product because it’s been around for the last four or five years. And the product has a consistent history of producing results and being good and being a quality flagship amazing product.

The final difference between a biz and a business that I’m going to mention today is that a biz is engaged, when it comes to human resources, in a race to the bottom. And what I mean by this is that people who have a biz want to find the cheapest labor they can find. They want to go get a team from, you know, the Philippines, or whatever, and they want to hire them on a project by project basis. And every time there’s a new project, they have to hire a new team. Every time there’s a new initiative, they have to retrain a new team and they have a revolving door of people in their company that are coming in, coming out, coming in, coming out, coming in, coming out, so that no one, no one really gets to become invested in their business other than them. And they just get this revolving door, right?

A business on the other hand hires employees. They hire people who are a long-term experts at what they do. And over time their value to the company increases exponentially as they get better, right? So, a business owner hires long-term. And what I’ve seen in this internet marketing space is that most people right now are engaged in a race to the bottom when it comes to hiring. People who own businesses are coming in left and right and cleaning their clocks. And the reason for this right now is that we are in one of the only markets that is profitable, that is not engaged in a talent war. There are VAs who have been working in online business for ten plus years who cannot find a stable employer because business owners who are doing business online are not willing – I guess, biz owners who are doing a business online, are not willing to hire someone for the long term. They want to hire a bunch of short-term people for short-term projects. And all the best people right now are being passed around. And this represents a huge opportunity.

So, my message to you for today is be engaged in business, not a biz, because we are moving from an era of the biz to an era of the business. And it is the businesses that will ultimately win while the biz’s and the one-man guru shops and the hobbyists and the people who are amused by this, who are doing for it for the lifestyle, you know, who are not passionate, are going to lose, and business will win.

My name is Clay Collins. Thank you for watching the marketing show, and I will talk to you tomorrow. Take care.

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  • Paul_Wolfe

    Clay

    Interesting video – agree with a lot of what you say.  Question: can you have a ‘one man’ business?

    Paul

     

    • Of course.  A lot of this is about intent.  There are a lot of misconceptions about having employees, but if you work with a dream team it can make all the difference in the world. 

  • Sam

    Clay

    I like the idea of the value of people and that you or I could hire a person who is going to help build the “Business”.
     
    Thank you,

     Sam 

  • Dude… so glad you finally got to this one. I agree it’s your best and most important episode yet.

    This is the exact attitude that that makes you and I so much on the same page. It sounds at first like a semantic detail, but it’s a powerful if subtle mental shift from where most entrepreneurs start out. In fact, the “biz” mentality is my biggest gripe with entrepreneurialism, and why I don’t use the E-word to describe myself or what I do.

    The whole idea that you have to constantly be “wheelin’ and dealin'” or working some kind of angle at all times is just pathetic. Yes, tactics are valuable, but a real business has a growth plan.

    Nice work man. See you in a couple of days.

    • I really liked your comment about working some kind of angle.  Looking forward to catching up in a few days.

  •  The most important distinction for me is the “Fluctuating Product Line”… great stuff Clay!

    •  Although there can be some short term gain to constantly coming up with new products and selling your people on the latest thing . . . real marketing leverage can come when your product has been on the market for a long long time (provided that you’re updating it, keeping it current, etc.)

  • Yup.  Fine.  OK, you’re better than I thought.  I’m truly impressed.  Funny.  I changed what I did and dropped “biz” literally from my service title.

    Also – service – is more important than it was. 

    Something you said made me think of you in the “biz” category, a while ago.  Now, good work.  

    •  Glad we’ve cleared that up, Chris! :-).  Thanks for the kind words.  You going to any events this year?

      • Doing WDS, and I’ll certainly do CES, since simplifilm.com requires clients (and I can go there and insult their videos and get them to buy from me).    

        • That’s awesome about Simlifilm.com; looks like you guys are doing excellent work.  I’m certainly looking for video work like that.  Is that your business? 

  • Hammer, meet nail. So right on, as usual. You’ve talked about this stuff before but you’re finding better ways to explain it. Which is good cuz people need to hear it badly.

    • I remember conversations with you back in the day along these lines.  It’s clear that you teach “business” blogging, by the way.  How was SOBCon?

      • SOBCon was awesome. Got to see invisiblepeople.tv get rewarded for the good
        work done. Got to meet and connect with favorite people. Got to meet awesome
        new people. 🙂

        • Thanks for telling me about invisible people.  Looks like an awesome awesome project.  Please let me know if you’re ever in the midwest again and we can make it a point to hang out and drink good beer.

  •  Finally someone speaks the truth. 

    • Thanks Nathan.  I think you and I and a lot of others have been thinking along these lines for a while.  I only just recently came up with a language for describing this in a way that I can easily communicate for others.

  •  Well Clay, you’ve flipped my perception of you.  Awhile back I had the impression you were of ‘the biz’ and I just didn’t enjoy it.  I unfollowed you on Twitter and you pretty much dropped off my radar.

    I knew you started this Marketing Show, but I had no desire to see what type of marketing you’d be teaching.

    Nathan linked me to this, and I am glad he did. I like and agree with everything you said and i think your breakdown of ‘Biz’ vs. ‘Business’ is excellent languaging to help showcase the difference that exists.

    I’ll keep watching 🙂

  • Hey Clay, I think you’re going to kick Gary V’s ass since you’re producing these daily and with integrity and quality. As a writer, blogger, and something I’ve got more comfortable with recently online marketer, I get what you’re saying here. I also aim to come from a place of integrity. I also aim to not discount my products and programs very often – and only to my engaged and loyal community as a perk to them – but I have to say from a psychological view point, The reason why Groupon works is that limited time offers work. People need a kick up the ass to take action. I’ve bought several great products and programs myself because the doors are closing on the special. People are lazy, they need incentives and they need pressure. I think it can be done where it does not cheapen your products. I’ve seen more people these days doing rising prices over a series of days which I like. It rewards those that take initiative early. I also think there’s other ways to get people to buy your quality products and have a continuing product line – offer extra bonuses, content, videos, access to you rather than discounting. But learning from the `big guys’ who make millions per launch they still do follow these tactics of time sensitive offers and discounts – not all but many.

  •  Clay,

    I’m SO happy to hear this! Gosh, was just thinking how unsustainable “BIZ” ownership must be. 

    I’m gearing up for the long term and top on my list is hiring a VA who will be invested in my BUSINESS and I in hers (or his). 🙂

    Thank you SO MUCH. You’re a wise dude.

    Heather