March 30th 2007
C.C. Chapman: Well, hey, welcome to Managing the Gray #30. Today is March 23, 2007. It is the day after Bum Rush the Charts happened. If you are not familiar what that is, bumrushthecharts.com, it was this kind of a new media experiment where everybody got together, tried to get everybody to buy a single song on iTunes on a specific day in order to get this group up the charts, get them on the radar, show that the podcasting and new media sphere could pull together to elevate an independent artist on the charts to kind of mess with the system. What I wanted to do is this morning, Christopher Penn from the Financial Aid Podcast, one of the guys behind the event, we had set up a time to talk, to kind of look back and look at its success. This is not just about Bum Rush the Charts, just using that as sort of a case study or as an experiment for how you and other companies can do experimentation.
We barely talked about the campaign. We talked about lessons we learned from it and things that he specifically learned about it, lessons learned for any campaign that you or your company might be thinking about doing in the new media sphere. So, sit back. It is about 26 minutes. We just kind of sat down and chatted this morning. It was very, very cool. I am very, very excited to turn it over and let you guys hear it. Wow! I just kind of choked on myself. So, this is going to be a little different interview. I do not get to do it very often in Managing the Gray. Get your comments and get your questions in managingthegray@gmail.com and I will talk to you very soon. Here we go.
So, Chris, welcome to Managing the Gray. Good to have you on the show again.
Christopher Penn: Good to be back.
C.C. Chapman: Yeah. You have done it. You have hosted it yourself and now we are actually sitting down to have a conversation through the power of new media. I would rather be doing this over a real cup of coffee, face to face, but we will take what we can get today.
Christopher Penn: Absolutely.
C.C. Chapman: So, what I want to talk about today is yesterday was Bum Rush the Charts, which I think everybody who listens to this podcast knows what I am talking about, but more of the fact — I do not want to focus on the “Dear M” questions and the this and that. I want to focus on it from a new media experiment angle. What went right? What went wrong? How the lessons that were learned in this one little initiative can be carried forth and companies or individuals of any size can learn from it? I think this morning you did a great job of kind of your first initial thoughts on Bum Rush and where it goes from here and what it could have done better and I would love it if you could share that with my listeners.
Christopher Penn: Sure. There were really six, I guess, key learnings that I came up with when it comes to how the campaign went. The first one and the most important I think is the whole thing on transparency. I think in any kind of online campaign, we find it so with Bum Rush the Charts, but really in any kind of online campaign, transparency is the key. By that, I mean disclosing as much as possible, as much as you feel comfortable doing. One big area where the campaign I think started off a little shaky was in the whole issue of how the band was selected and how it was chosen whether there was any kind of backroom deal, which there was not. Black Lab turned out to be a fine choice for the campaign. They were very generous, their willingness to contribute to the scholarship fund and stuff. Transparency is — I like to call it the transactional currency of trust. The more trust you want to build, the more transparent you have to be, the more you have to share information. I like to call it like your first date with somebody, right? You are sitting down at dinner. You have two people who are just staring at each other. It does not work very well. You have a very short dinner. What happens is it is just a natural thing, it is part of a conversation and that is what new media is. It is a conversation. You share information, they share information. You build trust and you do that by being transparent on things and that is where I think the first lesson was.
C.C. Chapman: I love your date analogy. I think that is hysterical because it is so true. It is something everybody can relate to. It is funny because talking about being in a conversation, literally just now as we are sitting here, I just got an email that came in from someone that says, “Today is Bum Rush the Charts Day.” They got the right date in it though. I do not know if it got held up in their email system or what, it is actually dated March 22nd. It says, “Today, March 22nd.” So, the conversation is still going on and the experiment continues, which is okay. I just had that literally just came in and I was like, “Wow! Today is Bum Rush the Charts.” I will not say who it is. I will just let them know offline.
Christopher Penn: That is awesome.
C.C. Chapman: What you said about transparency is key and people think it instantly means disclosing financials and all that, but sometimes it is the littlest thing like you said to me, how a band was picked, which was I do not know how it was picked. It was just kind of random is my understanding. It was not like there was any process, a detailed process or anything like that. I think what companies can learn from that is the fact that if you are going to go out and do something, disclose everything or as much as you can. Obviously, there is a how-much-can-you from a risk standpoint, but at the same time I think you are right, the more you give and show the more trust you are going to build instantly.
Christopher Penn: Absolutely. The more transparent you are, the more conversations you have. I mean one area that was especially a challenge in the campaign was dealing with the social media or the social news network I should say like Digg and reddit and stuff like that. There is a lot of conversation on them, all these different conspiracy theories and stuff like that about the campaign and I think the more transparent the campaign or any online marketing campaign can be , the more likely there is that — you will always have the river of negative news, the naysayers and stuff like that. That is human nature, but the more transparency you can build, the more trust you can build from the outset, the more you will have other people who are I guess allied with your views or your perspective or your campaign efforts will step up and refute those claims and say, “Hey, no, no. This is the real story right here. You’ve missed the point.”
C.C. Chapman: It is funny. Actually, I had a friend the other day. We were discussing that exact topic. It was interesting because what he was saying was the fact that he said, “Listen, if you come out and whatever you do, all the naysayers, they are going to attack you. You have a choice. Either you can defend, you can go on the defensive and start answering those things right away, or you can wait a minute.” His theory was the fact that if you wait, your advocates will step up and step forward and do the defending for you as opposed to if you were to jump and defend, it gives the advocates no reason to do so. They may not as full force. It was a theory that I have been thinking a lot about because I think it can argue either way. I do think it is true though that your advocates will step up and defend you for you, but you got to make sure you have those advocates.
Christopher Penn: Yeah. You got to make sure you have those advocates and you got to make sure they are clear about the message and about what it is that you want to communicate to people.
C.C. Chapman: Yeah. There is nothing wrong in having an advocate defending you improperly.
Christopher Penn: Yeah.
C.C. Chapman: That is almost worse.
Christopher Penn: Yeah. It is putting someone else’s foot in your mouth.
C.C. Chapman: Yeah, exactly. That does not taste very good at all. That kind of segues into a good point, too, is the fact that I think no matter what your campaign is, whatever experimentation you are doing in the new media space, there is always going to be negative backlash. Some people like to just complain for the sake of complaining. They like to hear their own voice. What is your feeling and what would you advise to a company that is thinking — and I am talking about doing anything in the new media space, whether it is video, Second Life, whatever it is. How do you think they should prep for things like that where there is guaranteed to be some negativity no matter what?
Christopher Penn: It is funny. A long time ago, part of my training was a sales training with the whole Tom Hopkins training thing and that was when I was doing human resources recruiting. So, you have product that can talk itself out of a sale, which is very interesting. One of the key points in the sales training was that an objection or a criticism or something like that is a good sign. It is a sign that the audience is engaged because the worst press that you can get is no press at all, complete silence. You throw it out there and everyone ignores you.
C.C. Chapman: Right.
Christopher Penn: At least, if people are talking about it or trying to talk to you, even if they do not necessarily communicate in marketing language that you are used to…
C.C. Chapman: Yeah. Yeah.
Christopher Penn: At least, they are talking to you. It is up to you and your skills as a salesman to turn those things around, to either mitigate them or turn them around to positives. For example, there has been a lot of conversation today about how Bum Rush the Charts was a failure, we did not hit number one on the charts and strictly speaking, you are absolutely right. We did not hit the objective of being number one on the iTunes charts, but we did accomplish an awful lot particularly when you think about getting on to the top 10 charts, in some genre’s top 100 charts, in a number of countries around the world, and doing it all on the $800 budget.
C.C. Chapman: Right. You just propped a whole bunch of other questions on that one little topic. Which one to attack first? I think any project I work on, I always try to really upfront have the conversation of, “How are we going to define success on this project?” I advocate that you should always have more than what is the loftiest goal because if you are not setting your goals high enough, then what is the point of going after them in the first place? As well, what are some other successful — I think this campaign definitely was a success on a lot of factors because the awareness that it raised and the fact that you saw an unsigned band right there among all these other acts that are signed, they have huge budgets and huge money to spend, showcased the fact that it was a success. Did they hit all the goals? No. Let us face it, most of the goals we set on projects, the highest, those ones you stretch do not always get met, but when they do, it is extra sweet, but your fact about the money is another great one. What cost $800 for this?
Christopher Penn: There were exactly two press releases, one on PR Newswire and one on Market Wire, each $400 a piece. They were not taking into account obviously time and labor and effort.
C.C. Chapman: Right.
Christopher Penn: In terms of raw, out-of-pocket money, it was two press releases and that was it.
C.C. Chapman: Right. That leads to the thing that I have talked to companies, I have talked to individuals and they are always worried about the cost. Yes, let us face it. You have to spend money sometimes. You do not get stuff for free and time and resources and intelligent people to do it. To hire the right people is going to cost money, but at the same time — I have had these conversations with clients where they are like, “We only have X number of dollars to spend.” I would rather be given that number upfront and figure out a campaign that works inside of that pocket rather than them going, “We can’t do anything with this amount of money.” There is usually plenty of money to do something with.
Christopher Penn: Exactly.
C.C. Chapman: Yeah and it forces creativity. You look at the indie film market. People get more creative when they have to. I have heard filmmakers talk about when they had the big budgets, it was harder to get things done than when they run a shoestring and being creative because creativity is a very, very powerful thing.
Christopher Penn: Absolutely. Creativity and adaptability. I mean $800 for most companies I think is probably a rounding error on the refreshment’s budget.
C.C. Chapman: Exactly. It is not even a slush fund bucket. Come on.
Christopher Penn: Exactly. Exactly.
C.C. Chapman: One little thing, I want to go back to we were talking about the negativity thing. One of the things I know we have talked about in other context before is the fact that companies, if you are going to come into this space, reach out to the space, focus groups or your advisory panels or just even this whole litmus test just to kind of gauge what do people think of this campaign or your company. How do you feel about that idea?
Christopher Penn: I do not think the focus group idea is a good idea so much as using the new media tools that are out there already.
C.C. Chapman: Yeah. Yeah. Focus group is a bad term. I do not want a roomful of people with green M&M’s. Yeah, sorry about that.
Christopher Penn: One of the best things that you can do as a company is to plug your company’s name in Technorati and Google blog search and if knowing is talking about you then obviously, you have a lot of work to do. If your stuff is out there already, you want to find the people who are being critical of you. You want to find the people who have something negative to say or just critical to say about you and engage them, talk to them. Do your homework first, research them and say, “Okay. This person is talking.” For example, the student loan industry, they say that this lender company gives kickbacks and that lender company…
C.C. Chapman: Right.
Christopher Penn: Sends people on Caribbean trips. You find out what is being said and know in advance some of the arguments that are going to come against you. Talk to those people and engage them. Really, it is as simple as having conversations, “Hey, I know that you were talking about me on your blog and I’m not upset about it. I would like to talk to you more to see how you got the information which made your decision and what I can do as a representative of my company to not necessarily change what you’re saying, but to understand more about what you’re saying and why you’re saying it and what we can do as a company to, in the future, be more positive.”
C.C. Chapman: Right. It is funny because in Crayon, we call it a conversation audit where we go out and see what people are saying about you and we kind of dig deep into it and what-not. Would it not be cool if a company actually contacted like you directly after you have slammed them. I know I am trying to think, I never had a company, excuse me, I had that one company, a small company come to me who played in the new media space when I plugged some of this, “We’d really like to correct your assumptions on this,” but I think it would be amazing if big companies did more of that because you know the person would blog about it right away. “Well, so and so just reached out to me. I didn’t know that would ever happen.”
Christopher Penn: Look at what happened with… oh, gosh! I cannot remember the guy’s name. He was a big user of Google AdWords and he was sayings how AdWords was such a headache for him to manipulate all these campaigns. Somebody at Google, not even a senior exec, just a product manager sent him an envelope with a packet of Advil and then saying, “Sorry about the headache.”
C.C. Chapman: I have heard about that. That is awesome.
Christopher Penn: He is like, “Holy crap! Google just sent me a packet of Advil.”
C.C. Chapman: The closest thing I had to happen to that was I remember Eric Schiff posted a photo on his Flickr site about — it had a picture of dark chocolate covered Altoids before they were generally available and I made a comment going, “Man! I wish those were available in Boston.” I got an e-mail from Altoid’s PR company and said, “Give us an address and we’ll send you some.” Sure enough, I had Altoids show up one day and I am like, “Sweet! That is awesome.” Very different from the Google thing, but the same kind of concept that they saw someone who would probably evangelize for them and fed it as well which is another great thing.
Christopher Penn: Absolutely. I think one of the things that we took from the Bum Rush campaign as well as these other example is that you should not focus just on the people who you believe to be I guess the cliché is the A-listers, but…
C.C. Chapman: I hate that term. I hate lists or “The top 100 on Technorati.” I do not care.
Christopher Penn: Exactly. The thing that most companies do not realize is that your next rock star, your next evangelist is out there and they are not on an A list. They are being somewhat quiet, probably staying a little low under the radar and stuff, but if you engage them smartly and you talk to them, you will have a rock star on your hands who will do more for your company’s credibility than any amount of money you could spend.
C.C. Chapman: Right. Now, in kind of on that, so Bum Rush the Charts that is going out there to the podosphere and blogosphere and everything, one of the things that I think is really interesting and tougher for companies to figure out is how do you get those people to blog and podcast or to talk about you? In Bum Rush the Charts’ case, follow up and actually buy and purchase. I know a lot of companies will talk about, “Well, that’s nice they’re talking about us, but are they buying our product?” I think that was one of the lessons learned and this was the fact that, yeah, everybody was talking about it. There was no problem getting that mindshare for Bum Rush the Charts. Anybody in this space knew what was going on, but the amount of buzz, the amount of talk did not convert to the amount of purchases that were hoped for. How do you do that better, how do you get them from that, “Ooh! Neat!” to “Oh, I wanna buy” or “I wanna engage” or “I want to go.” The call to action, how do you get that call to action to be stronger?
Christopher Penn: It is interesting. The call to action, we tried to make a sales [unintelligible] that was as simple as possible, for example, an apply button or a purchase button that unless you were literally physically blind, you could not have missed. What I did not realize though is that and this is one of the criticisms on the social news sites is that there are a lot of people who do not have iTunes installed even if they own an iPod. There are a lot of people who were unwilling to use the iTunes sales mechanism or were unwilling to trust the IODA referral mechanism and things like that. Again, it goes back to transparency and disclosure and saying, “Hey, this is exactly how we got it set up. This is how it is going to work. You should know this in advance so that there are no surprises for you when you go into the process.” Here is something else I did not know though that it has radically changed my position on — we had a quick off-the-back-of-the-envelope number from Corey over at IODA last night.
C.C. Chapman: Yeah.
Christopher Penn: About 7000 tracks sold through their affiliate link. What I did not realize is that affiliate link does not work outside the United States. So, in countries like the Netherlands where the song was number 5…
C.C. Chapman: Right.
Christopher Penn: For rock and number 35 for the entire country of Netherlands yesterday, we will not see any of those sales until the final report has come back in from Black Lab. So, the fact that this was such an international sensation, I think it was number 9 in Germany, 22 in Canada, is just unbelievable. We cannot see that right now, so we are awaiting the sales data, which could take up to a month because…
C.C. Chapman: At least.
Christopher Penn: Apple has to report back to the band and stuff like that.
C.C. Chapman: I think a month is being optimistic on that from when I have talked to bands in the past. I know it could take up to three months sometimes.
Christopher Penn: Yeah, exactly. In this case, I do not necessarily know that the call to action was not there and that the sales portion did not go through.
C.C. Chapman: Right.
Christopher Penn: It may be considerably great, but the other thing that happened a lot especially again outside of the United States is that people went straight into iTunes. They did not bother going to the Bum Rush the Charts page. They heard about it, they heard the mind share and they just went right in and bought it themselves.
C.C. Chapman: Right.
Christopher Penn: Which is bad for reporting and tracking, but good in a sense that people took action and I think if you are a company looking for a way to convert mind share into action, having multiple avenues as long as it gets back to you bottom line or having multiple actions even ones you cannot track is good. You just have to trust that the community will come through for you.
C.C. Chapman: Right. I think another thing to keep in mind is that even if you do a campaign that is targeted to the United States, targeted to a specific state even or a demographic, the fact that if you do it in the new media space, it is instantly of a global nature whether you meant to or not. You learn that with the title of this campaign.
Christopher Penn: Yes. I found that Bum Rush in America means one thing. It is actually a pretty archaic term for a sort of an unruly mob, but it means something very, very different and slightly more explicit in the U.K.
C.C. Chapman: We got to be careful about that next time. It was really interesting because I know I sure was heck was not expecting to see, I mean the results in places like the Netherlands and Italy and Germany. It was pretty amazing to see it explode in those areas that we are not expecting. It was almost a happy, not an accident, but it was a happy result that was not expected.
Christopher Penn: Absolutely. It was not planned for either. That is the main thing. It was not planned for.
C.C. Chapman: Yeah. I think that was something to expect, expect the unexpected to happen. I think anything that someone does in the new media space should be viewed as an experiment. Things are not going to work the way you wanted. You are not always going to get the results, but as long as you keep track of everything, have an open communication about it and then when you are done, really stop and really, really look at it for what it is and think, “Okay. How can we do this better next time?” It might be a totally different campaign, but you are definitely going to learn things. I know you and I talked already about this, this morning earlier the fact that we hope people really look at it honestly and objectively rather than saying, “Woohoo! It was a roaring success,” or “Oh, it sucked and failed.” Honestly and objectively look at it is an important thing for any campaign you do.
Christopher Penn: Absolutely. The nice thing about the campaign is that the people who were the organizers really do not have a vested interest. There is no bottom line profit that we have to worry about.
C.C. Chapman: Exactly.
Christopher Penn: Companies, especially marketing departments, do need to be able to step outside of their own bubble to look at something objectively and say, “Yeah. Okay. Our sales were not as high as we wanted,” and that requires a lot of buy-in from senior management…
C.C. Chapman: Yeah.
Christopher Penn: To accept that they are willing to take the risk. We spend a week or a month on this campaign and it might not go anywhere. If you are willing to take that risk, eventually with a good scientific method and research, you will get it right, but it requires experimentation.
C.C. Chapman: Yeah. I really hope more companies start to put together an experimentation budget, put aside a little money even if it is just a little money, put it aside to spend it every quarter or even once a year. To try something outside of the comfort zone would help a lot and be ready — I can hear people rolling over right now on the account of me, be ready to lose that money. You might not get it back. You might not get the results you want, but would it not be better to experiment than rather like betting your whole brand on it? I think there is a lot of potential there to experiment and not be scared to try new things. The other thing, too, that is funny is I think these companies can work with companies and individuals out there to help them kind of figure out what is the right experiment. I have seen companies do this where they think they have the answer and they just go forward and do not ever ask anybody and it is the worst idea in the world. Once in a while maybe it is the right idea, but I do not know. Risk is one thing. Luck is another.
Christopher Penn: Right. I think more than just the money, I think if you want to have the best success in new media to try it out without betting the whole farm, create an SBU within your company. Create a little…
C.C. Chapman: A what?
Christopher Penn: An SBU, separate business unit.
C.C. Chapman: Oh, yeah, yeah.
Christopher Penn: Or a skunk works team or whatever you want to call it, but create a team of people who you basically give them, “Here are the legal guidelines we want to give you, so that you don’t get us sued, but other than that, take our brand and run with it, see what happens, see what results you generate and hey, if it works out, great. If not, then we acknowledge that it did not work out as well.” It is exactly the same principle as Google’s 20% rule or 3M’s 20% rule.
C.C. Chapman: Yeah.
Christopher Penn: Take the time and see what happens and acknowledge it, give those people a lot of free reign.
C.C. Chapman: Amen. I know Google is the perfect case study because some of the most amazing things have come out of those experimentations. Let us face it, if there were not mad scientists out there to do an experiment, we would not have half the drugs and half the things in the world that we cannot live without nowadays. The same thing with new media. That was a weird analogy. It just came out of my mouth, but it is true. You have to experiment. Things are going to blow up sometimes and you are going to make a mess of your lab, but you got to keep pushing forward and try new things and not be scared to experiment is what I guess I am trying to drive home.
Christopher Penn: Absolutely. If you do not experiment, your competitors are going to run over you immediately.
C.C. Chapman: Oh, yeah.
Christopher Penn: My company would not even exist if it had not been for the fact that our CEO at his previous company said, “Hey, I want to try out this whole internet thing,” in 1997. They all said, “Well, why don’t you go do that on your own?” and he did.
C.C. Chapman: There you go. Yeah. That is what happens. Most people will accept a certain amount of risk especially if you can frame it in a way that they can see some ROI if it succeeds. The good managers, the mavericks out there in the workplace, which is a great book by the way, I just realized I quoted a book title. The mavericks get it and they are willing to try it. I hope anyone listening to this podcast is one of those people who want to try things in their job day to day.
Christopher Penn: Oh, yeah. I think probably more their problem is convincing their supervisors to understand and to try things. Really, the only thing that cannot be said enough is that if you do not try it, somebody else already is right now and if you are not out in front, the view is not great.
C.C. Chapman: Amen. Yeah. The view only change for the lead snow dog.
Christopher Penn: Exactly. Bum Rush the Charts, this is a good example actually if you want to talk about getting your company to try something. Bum Rush the Charts, if you are in a very competitive vertical like the student loan entries are very, very, very competitive vertical, billions and billions of dollars on the line. So, it is tricky to try and play in that arena because if you make a misstep, you could seriously damage and lose hundreds of millions of dollars, but we are playing in this area in unrelated verticals. Bum Rush the Charts, PodCamp, all these different areas that we are playing with, testing things out, testing our ideas out and we have no competitors from the financial industry in new media because it is not hitting anyone else’s radar. We can try stuff. We can contribute positively to community without having to worry about every single competitor scrutinizing our every single move. We tried some stuff that I will tell you straight out has not worked. I do not talk about it, but it is out there. We have been trying Twitter and things like that. Some stuff works really well. Bum Rush the Charts has been a good experiment. PodCamp was a fantastic experiment.
C.C. Chapman: It continues to be a great experiment.
Christopher Penn: It continues to be a great experiment.
C.C. Chapman: I think PodCamp is a great example because every time they do it in a different city, it changes.
Christopher Penn: Oh, it is a different event.
C.C. Chapman: It is a totally different event because I heard somebody the other day say, “Why would I want to go there when I’ve been to this other PodCamp?” I am like, “It’s always different because it’s organized by different people.” It is very organic. It is so cool to just see it evolve every time.
Christopher Penn: Absolutely. Absolutely. For my company, it gives us a chance to throw ideas that we have out then and have a conversation with people who are in new media marketing come back to me and say, “Chris, that’s a really stupid idea. Why don’t you try this instead?” The benefits come straight back to the bottom line.
C.C. Chapman: Right.
Christopher Penn: If you have a manager who is hesitant to play outside your vertical, you may be very surprised by how well it works.
C.C. Chapman: All right. Well, Chris, this has been great. I am glad you can come on the show. I really appreciate you taking the time out of your day to do this. So, where can people find out more about you?
Christopher Penn: You can find my day job stuff at financialaidpodcast.com and my personal blog at christopherspenn.com.
C.C. Chapman: So, the end of the conversation got cut off. So, I need to jump right in there as soon as he was done because we also talked about seeing each other at PodCamp New York, which is coming up. I just want to thank Chris, financialaidpodcast.com, christopherspenn.com. Of course, it will be in the show notes, do not worry about that. They will be there as well. I would love your comments, call them in at 206-309-4729 and get those audio comments in and your questions. I am not sure what happened at the end of the conversation there. Skype was acting a little wonky, you can hear the microphone was going up and down, you can hear some sounds, but we do with what we can. It is an experiment, right? That is what the theme of the show was. We are going to be at PodCamp New York City, which is April 6th and 7th. It is going to be a really good time. I cannot wait for it and I hope to see you there. Chris and I will both be there so will a whole bunch of other people in the new media sphere, so if you want to come play in the playground, come out. It is a great event. It is free, free and free. Okay? Podcampnewyork.com, I will put it in the show notes as well. Thank you again to Chris. Thank you to everyone who took part in Bum Rush the Charts and as you can see, new media is nothing to be scared of. Get out there and play in it. We are all having a good time. I will see you next time here on Managing the Gray.
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