by Paula | 15 October 2008 | permalink | comments
Tags: review, marketing
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Before I get any further into blogging I want to take a few minutes to discuss this little book. Weblogs and New Media: Marketing in Crisis has had a profound impact on my professional life and my business, and in fact was the primary motivator behind my decision to launch this blog. Much of what I have to say and many of my current business ideas derive from this work. It would be hard to overstate my enthusiasm for W&NM.
I stumbled across Smith’s website, oftwominds.com, over the summer when it got linked from one of the crashblogs I read. I discovered there the generous excerpt he had posted to promote W&NM prior to its release. It did not take long to read, but by the time I had finished, my entire business weltenschaung was shifted to a different place.
Up until that point my business had been suffering from the “dual reality syndrome” peak oil aware people routinely deal with. That is, getting by in the present means carrying on business as usual without acknowledging that Western civilization may well disintegrate in the next decade or so. This is bad enough in any case, but as owner of a little web design firm I’m responsible for helping our clients improve sales and customer retention via the web; I wanted to tell these clients about peak oil and other economic threats looming on the horizon and advise their digital projects accordingly. Deviating from business-as-usual would have cost sales, however, and given my barely detectable profit margin I simply could not afford the risk. I came to feel like the quintessential slimy sales person making my living off other peoples’ future distress. It was intolerable. I began turning away work from businesses that would clearly fail once the descent began in earnest. How could I take their money when they might need it sooner than others to keep their kids fed?
I tried retooling my business to support the “buy local”/locavore niche. I immersed myself in its issues beyond the overlap with peak oil and became rather knowledgeable about it. I developed ideas and even brought a couple to fruition. But in the end it went pretty much nowhere. Few in my area are interested in “buy local” once they leave the farmers market with their hemp sacks of vegebling.
What could I do? I was stuck. It was looking like back to slimy businesschick mode when I found Smith’s unassuming gem. Within his concise and incisive excerpt I discovered the following sentence:
The Standard Model of advertising and marketing will produce fewer and fewer results as it fails to map the profound demographic, energy, cultural, technological and financial cycles which will dominate life and business for decades to come.
This was the key — everything I’d been doing wrong suddenly came into alignment. In this one sentence Smith identified the exact problem I’d been having trying to conduct business in a reality other than the one I know to be true. It wasn’t just that peak oil, the Kondratieff cycle and other problems were about to wreck the economy; the problem was that I was actually hindering people from financial sustainability by perpetuating the Standard Model. I knew this already on a gut level of course, but lacked the language to articulate the problem.
In the print edition, Smith goes on to examine the Standard Model in the context of decline and makes a convincing case as to why it will fail utterly. Marketing and advertising in their current forms are essentially the art of lying ever more convincingly about the social worth of this or that widget. It is intrusive, obnoxious, and generates sales by nurturing unrealistic expectations that the given widget is designed to not fulfill, thereby spurring future purchases.
In a world of ever-shrinking incomes and ever-increasing insecurity, people simply can’t waste their money on unfulfilled expectations. Mythologies of prestige, sex, and enhanced personal well-being will fall by the wayside along with whatever product or service these were designed to sell. Businesses that pull through will be those that treat their customers as co-creators in the business project. The Prime Directive, according to Smith, is to “clear a space for trust, honest dialogue, and meaningful contribution,” in contrast to the Standard Model’s insistence upon “staying on message.” Staying “on message” is inherently deceptive and voids any trust that might otherwise grow between a business and its customers.
What a relief to find such things articulated so clearly. In my work and in my business, I have been hamstrung by my belief that I needed to stay “on message” as it stands for business as a whole: namely, that everything is just grand and will be so into perpetuity. I can’t help but wonder how many other small business owners feel caged by the same unconscious belief. According to the Standard Model, associating one’s business with something as dark as peak oil is a profound risk for all except those selling survivalist gear. Who’s going to buy pizza, or cars, or Egyptian cotton linens, when industrial civilization is slated for expiration? And yet, Smith uses these very examples of businesses that can survive if they play their marketing cards right — that is, if they patiently nurture the authentic relationships required to grow a clientele loyal through even the harshest crises.
Prior to reading W&NM I did not have much hope. To be honest, I still don’t — but I do have something I didn’t before, and that is a logical, realistic framework within which I can continue developing my business and serve my clients better, a tool that gives me a much better shot at pulling through than I had before. It is a very empowering thing.
As far as I’m conerned, W&NM is the business manual to have heading into decline. Smith doesn’t hold the reader’s hand, but rather provides a framework within which astute entrepreneurs will be able to determine their own appropriate processes. Such is the case for me — Smith is so obviously correct that I am backing away from the Standard Model of propaganda in my own marketing and taking the risk of associating my business name with peak oil. In other words, I’m risking honesty and vulnerability in the interest of cultivating authentic relationships with my clientele.
To quote Smith:
Can this be profitable?
Perhaps the best answer is another question: in an era of crisis and turmoil, is there any other way to be profitable? I believe the answer is already abundantly clear: no.
Money as Debt
[YouTube playlist] How the monetary system works.
Peak Oil & Sustainability: CRM's potential impacts
[PDF] White paper from Beagle Research Group, September, 2008
The American Tapeworm
Catherine Austin Fitts, 2003. This was my introduction to finance or, as CAF calls it, the "negative ROI economy."
The Hirsch Report
HTML version
The Hirsch Report
PDF version
The Strategy of the Fighter Pilot
A special kind of military strategy, applied to business
The Truth & Lies of 9/11
Mike Ruppert, 2001 [video]. This was my intro to peak oil. I heard Ruppert's Portland State lecture the morning after its delivery on KBOO's rebroadcast.
Weblogs & New Media: Marketing in Crisis
Excerpt from Charles Hugh Smith's book by the same title.
Catherine Austin Fitts
Investment advisor, investment banker, educator, entrepreneur
Charles Hugh Smith
Author of _Marketing in Crisis,_ entrepreneur
Chet Richards
USAF Colonel, retired; author of <i>Certain to Win</i> among other books; USAF, ret.; expertise in business applications of military strategy
Jeff Vail
Energy intelligence analyst, attorney
Jim Puplava
Investment advisor, author, radio host, entrepreneur
John Robb
Author of <i>Brave New War,</i> entrepreneur, former USAF special operations pilot
Mike Ruppert
Investigative journalist (retired), former LAPD detective, entrepreneur
Nate Hagens
Former hedge fund manager, U of Chicago MBA, doctoral candidate @ the Gund Institute