I met a woman recently who’s focusing her career on Thought Leadership…and then I ran into this terrific Thought Leadership poll out of the U.K that happened to be released today.

Coincidence? I think not.

So I thought I’d do a short posting on the subject.

The poll is from TLG an Populus and you should click here to follow up on more details of their poll or their services: TLG Blog

TLG defines effective Thought Leadership companies as ones who can help change consumer behavior to generate positive social outcomes. Here’s another definition from WikiPedia: Thought Leadership definition.

And here’s their list:

[it's neat to see relatively new entrepreneurial thought leaders (such as Facebook and Twitter) so quickly joining the list of other heavy-weights]
Top 10 Business Thought Leaders 2009

The top two were:

1. Apple (up from #2 last year)

2. Google (down from #1 last year)

…then there was a three-way tie for 3rd:

3. Microsoft (unchanged from last year)

3. Amazon (new to the list)

3. GSK (unchanged from last year)

two companies were tied for 6th:

6.  Co-operative Group (down from #4 last year)

6.  Marks & Spencer (unchanged from last year)

…And these three rounded out the list

8. Facebook (new to the list)

9. Virgin Group (slipped from #5 last year)

10. Twitter (new to the list)

The Thought Leadership Index also ranks non-profits and I’m not suprised that the Bill & Melinda Gates Foundation ranked #1 in that group.

The homepage used to represent the online focus of a brand, establishing the point of first contact for the consumer and allowing the company to establish a digital presence.

This is no longer the case.

With increased fragmentation among traditional media channels and even within the content itself, companies must adapt new strategies to best suit the ever-evolving online world.

Given the number of web properties available to consumers, they are now more likely to land on a company web page from another web destination.

Thesis Author Daniel Neukomm

In fact, as of 2008 75% or more of corporate web traffic originates from a source other then their own homepage (Schmitt, 2008).

This is largely due to the emergence of Blogs, Social Sites, Search and RSS feeds as primary feeder points for almost all information on the web (Schmitt, 2008).

One important implication of this is the decline in premium pay sites, such as Times Select.  This was dismantled in 2007 as a result of the overwhelming traffic it was generated stemming from large numbers of links from blogs referencing articles.

According to paidcontent.org, they walked away from nearly $10 million in annual revenue to refocus their revenue generation strategy around advertisements rather then subscription service.

While this trend is affecting all brands none are as adversely impacted as major TV networks that are desperately trying to lock in content distribution deals with video portal sites such as You Tube and Yahoo! Videos.

While TV networks are leading the charge away from homepages, largely due to the increasing demand for more instant and relative info, companies will most likely not see the return of the homepage in the near future if ever.

Digital marketing agency Razorfish reported at the end of 2008 that more then 70% of consumers originate their web experience from a search portal, while 60% start form customized start pages and 56% from RSS feeds.

Given the decline of the homepage, there are four important implications for marketers which must be considered:

1) Traffic Distribution Metric

This key metric should be established to measure all traffic in (via search, referrals, or direct) and out of the homepage in light of the various points of origin prior to, and destinations after landing on the homepage.

Razorfish suggests that a key benchmark is 65% of all traffic ending up on pages other then the homepage itself should originate from places other then the home landing page.  This standard has been adopted as the norm for socially savvy websites and will quickly become the standard in which to compete for traffic.  (Schmitt, 2008)

2. Every page is the homepage

Due to increased access to all pages on a site stemming from fragmented points of origin, each page must be treated as if it is the primary landing page.

More specifically, there is an increased chance that consumers will land on any page within the site due to referrals, blogs and search, so greater attention is needed to ensure that the consumers first point of contact with the brand is clean and well presented.

The clarity of content and access to other aspects of the site should be accessible on all pages. (Schmitt, 2008)

3. Web 2.0 Toolbar

Given the need for content distribution, all pages should incorporate a toolbar that facilitates viral distribution.

Applications that enable such mechanisms include Digg and Reddit and should also be used to distribute video content if available to sites such as You Tube and Facebook, broadening the scope of reach as much as possible.

Linked content appears higher on Google powered search results then non-linked content further justifying this web 2.0 integration.(Schmitt, 2008)

4. Performance Tracking

Measurements of success are now dictated by so many different syndicated content locations that it is important to measure the success of websites from all angles. Emails, Applications, downloads, blog links and search results all occur off site but are still valuable in determining and segmenting ROI. (Schmitt, 2008)

As online media becomes more inherently dynamic and new channels emerge, the strength of the homepage will be continually diluted.  As such, markets must adapt to newer, more disruptive consumer behaviors and expectations.

Increased media channel fragmentation driving the decline of the homepage can be attributed to the rise in search and social media.

The combination and power of these two channels is driven by the rise in user-generated content flooding the web – this will only continue as consumers develop increased comfort with technology as it becomes cheaper, faster and more accessible.

How will your company adapt to the new digital landscape?

Note: The above is an exercpt from a thesis written by Daniel Neukomm.  A source for the excerpt was Schmitt, G. (2008). “White Paper: Does the home page still matter? Why distribution trumps destination for publishers and advertisers.” San Francisco: Avenue A Razorfish.

Social media is changing the way consumers interact with information and products…and it’s likely going to change your business.

One person specializing in social media for business is Sacha Cohen, CEO of Grassfed Media, an integrated communications company that serves green and socially responsible companies.

Grassfed Media CEO Sacha Cohen

Her clients have included National Geographic, The Washington Post, and AARP.

Sacha was kind enough to answer some questions regarding social media and business.

Q: Here’s a lob-ball question to start us off with: would you define social media for us?

Ah, the million-dollar question. Generally, it refers to user-generated content (blogs, video, social networking sites, etc) that enables people to interact, share information, and communicate online.

Here’s a cool little video that illustrates the concept of social media better than I could ever explain in a few words: Social Media in Plain English.

Q: Would you give us a little “Social Media 101″ on the top few social media tools (LinkedIn, Twitter, Facebook, etc.) — and how a business should participate in each?

I’m going to point you to Mashble’s Social Media 101 Guides which has, for example, these how-to tutorials and many more:

• How to Measure Social Media ROI
• How to Make Facebook Your Company Newsroom
• A Small Business Guide to Wikis
• How to Integrate Facebook With Your Blog

What I will say is that no matter what forum you are participating in or what tool you are using, becoming familiar with the etiquette and conventions of each is critical.

Chris Brogan, who is something of a social media god, offers this excellent Twitter Etiquette Guide.

Q: Your firm provides social media marketing services for socially conscious businesses — would you elaborate on challenges a business might face that you can help them with?

The social media universe is constantly changing and evolving. I’ve found that many businesses are overwhelmed by this new world; I help them navigate through it.

The other challenge is having enough bandwidth to successfully engage through Twitter, Facebook, LinkedIn, etc. They can all be huge time-sucks if you’re not careful.

On the other hand, they can be extremely useful for connecting to customers, product development, and marketing-it’s a matter of focusing on goals and staying on message.

Q: Whose job within a business is it to set social media strategy?

There’s no one-size-fits-all, but it’s usually a collaboration between marketing, PR, and customer service.

Q: What do you think are important new social media trends happening right now?

Here  are three:

1. Social media for social good (e.g. Fledgling Wine)
2. Mobile and local social media (e.g. Four Square)
3. Mass mingling
   

Q: Would you list examples of businesses using social media most effectively?

Love this one. Here are my top picks: Zappos, Virgin America, and Starbucks. As for non-profits, I’d have to say the Nature Conservancy and Share Our Strength.

Q: You mentioned that you used social networking to increase conversion 17% for one of your clients — what can you tell us about how that worked?

Actually, it wasn’t a client. It was a company I worked for full time. We were able to increase conversion by introducing product reviews and rating with help from a company called Bazaarvoice.

Customers want to know what other customers think; they want real, unbiased opinions. That’s what we delivered and it was a huge success.

Senior management was very resistant at first, but by showing them the research and best practices from other companies, they eventually saw the light.

Q: How do you see social media and public relations working together to grow a business?

Honestly, these days, you really can’t have one without the other. People are talking about your product and company, whether you know it or not.

The questions is: Are you going to ignore the conversation or join it?

Q: What are Top Essential Tools You Recommend for Twitter? (this was added after the original Q&A)

1. TweetDeck — This is a must-have Twitter application. It can help you manage multiple Twitter accounts, keep track of mentions and friends, help you find other people to follow, and more.
2. Twitter Grader — Find out how you stack up to other Tweeters in your area.
   
3. TwitPic — Easily upload photos to Twitter via your phone or the web.
4. Twellow — You’ve signed up for Twitter. Now what? Find people who share common interests on this Twitter directory.
5. Qwitter — Are you posting good content? Keep track of who is unfollowing you with this clever notification tool.

Q: Thanks, Sacha! If someone wanted to get in touch with you, how should they do so?

They can email me at sacha@grassfedmediadc.com or call me at 202-234-0104.

Pam White has helped affiliates sell millions of dollars of  products…and those sales were made at little risk to the affiliate marketer’s she managed, as they were primarily performance-based (they didn’t layout any cash until the products were sold!)

She generously agreed to answer some questions to help us understand the affiliate marketing business.

Q: Welcome, Pam. A lob-ball question first: What is online affiliate marketing?

A good description, I believe, is “selling other people’s stuff” on the Internet and receiving a commission for doing so.

Affiliate Marketing Expert Pam White

Q: If you’re a business, and you have products to sell, how do leverage affiliate marketing?

Determine the financial benefits of handing over the marketing expertise of a “staff of affiliates”, versus the cost of marketing the product through your own marketing department’s expertise.

Does the competitor have an affiliate program?  Maybe you should consider it as well.

Q: If you want to run a business, but don’t have any products of your own, how do you leverage affiliate marketing?

1. Learn all you can about affiliate marketing – in general.  SEO, PPC, etc.

2. Research products or services of which you have expertise and are passionate about.

3. Analyze keywords and quantity of searches performed for the   niche.

4. Realistically analyze your budget and ROI goals

Q: You mentioned earlier that the top affiliate marketing programs are offered by Commission Junction (CJ), Sharesale and LinkShare — please tell us more about each of them?

Commission Junction /LinkShare/Shareasale and many other networks, contract with hundreds of merchants selling products, and for a fee, handle the management, tracking internal listing of the Merchants Affiliate program.

Those interested in joining an affiliate program within the network can peruse the various products offered once they have completed the signup and approval process.

Generally speaking, however, the affiliate must have a domain name and website or blog to be approved to sell the merchant’s product.

Q: You also mentioned, that if you’re selling a service you can utilize Clickbank: how do you make money with Clickbank?

Clickbank is similar to CJ, in that there are several merchants listed in the Clickbank Marketplace and you can choose which products you wish to promote.  With most merchants offering up to 75% commission per sale, it’s very popular for those wishing to sell digital products or membership site offers.

Q: What’s the “Clickbank Elite”?

Clickbank Elite is a program sold by a 3^rd party merchant that extracts the “hot” selling products at Clickbank as well as cloaking the Clickbank generated hoplinks.

Q: I understand that Google has entered this space — what are your thoughts on the Google Affiliate Network?

I must be honest and say that I’ve not had the opportunity to search their offers or speak with any Merchants who are currently using the Google Affiliate Network.

Q: Speaking of Google, I hear stories about affiliate marketers who receive “Google slaps” — What’s a Google Slap?

A Google Slap occurs when Google views your website’s content and the Adwords keyword used to drive traffic via that ad to your landing page as not relative, or of poor quality.

This will result in an increase in your PPC costs to as high as $10.00 per click.  Additionally, your page rank, and thus your Quality Score, will be adversely affected.

Q: How do you avoid getting Google-Slapped?

Consider the keywords you are bidding on and the landing page and Adwords Ad group to make sure that they all “relate” to the content on the landing page as well as offer value to the visitor.  Be sure the page has adequate “original” content.

A great place to learn all the basics of Google Adwords is from the Google Adwords Learning Center. You can also view the Youtube videos published by Google.

Q: I hear that Pay Per Click (PPC) is key to affiliate marketing — would you elaborate on that, including defining a PPC Affiliate?

A Pay Per Click affiliate bids on and pays for each click on his targeted Sponsored ad at Google, Yahoo, Bing or any PPC network.

PPC is the key to gaining an immediate presence for your brand or campaign in the search results.

Q: What do you consider to be the best affiliate marketing program of all time?

I don’t know that I’m qualified as an expert on that question, so I’ll go with Amazon, since they were one of the first to enter the space.

Q: Who do you consider the best affiliates in the marketplace?

Not to hedge that question, but “the best” I believe, would be relative to the vertical.   Best CPA, Best CPL, Best CPM.  I haven’t worked in all those verticals.

Q: What’s a super-affiliate?

Again, this is relative to the vertical.  A “super-affiliate” may be an individual, an agency, or a network.  It’s any affiliate that has the ability to drive high volume sales (consistent with the niches expectations) which outperform the “average” amount generally produced over a given period of time.

Q: What’s the best way to recruit super-affiliates?

Network, know the competition, review who is the top PPC advertiser in your niche, identify them through various online tools, contact them, present your offer and metrics and invite them to join your program.

Q: What’s the best way to learn affiliate marketing?

Forums, Blogs, E-books, Industry leaders, Google Learning Center, Articles, Mentors, Coaching programs, trade shows like Affiliate Summit. Twitter, Facebook

Q: What’s a good affiliate marketing website to check out for beginners?

Affiliate Tips owned by Shawn Collins, who is also the co-founder of Affiliate Summit.

Q: In our last conversation you mentioned ABestWeb.com — would you describe the affiliate marketing forums they provide?

Basically, almost any network you choose to join will have a corresponding forum at ABestWeb where you can discuss openly any issues, complaints, questions, or accolades you wish and have it viewed and answered by a moderator/associate of that particular network.

Q: Thanks for sharing your perspective, Pam. If someone were to want to get in touch with you, how might they do that?

You’re more than welcome.  Those who wish to reach me may do so by contacting me at my e-mail address pam.white@gmail.com.

If you’re raising $250,000 or less for your business, I recommend you consider using a convertible note or bridge loan to do it.

Here are the main things you need to know about bridge loans/convertible notes:

Q: What is a bridge loan (or convertible note)?

A bridge loan/convertible note is simply interim financing until the next round of financing can be obtained. The word “convertible” is often used since the bridge loan will “convert” into equity at your next round of financing. l

Q: Why use a bridge loan/convertible note versus selling stock?

• It typically costs you less than selling actual stock — You can get a bridge loan administered for a couple of thousand dollars or less.
• Fewer attorneys involved — Investors are less likely to ask their counsel to review it .because it tends to be a shorter document that is less complicated than a stock agreement.
• You don’t have to set your valuation yet — A bridge loan is simply a loan that will convert into equity later when a valuation is set (typically during a larger round of financing).

Q: During which stage of financing is a bridge loan/convertible note most useful?

I find them most useful during the initial seed financing rounds of fundraising such as taking on a small amount of money ($250,000 or less) from private angel investors or friends and family (as opposed to venture capital firms).

If you’re raising more than $250,000, or are raising money from medium to large venture capital firms, you are likely going to want to sell them preferred stock.

Q: How long should a bridge loan be for? (what should the length of the term be?)

It will typically be one year or less (it should be timed such that the maturity date of the bridge loan is due roughly around the time that another financing (or liquidity) event occurs for the company.

Q: What should the interest rate for a bridge loan be?

A: The interest rates for convertible bridge notes vary but tend to be around five percent greater than the Federal Reserve rate (one point of reference: California laws dictate that there should be a cap of 10% on the bridge note interest rate).

Q: What happens if you reach the maturity date of a convertible promissory note and there hasn’t been another round of financing or liquidity event (and your company doesn’t have the money to pay back the loan)?

In this event, you can:

1) Ask the investor to extend the maturity date

2) Convert the loan into stock based on a price you pre-determined or a price you determine at the maturity date.

Q: What is a conversion discount (or warrants) for a bridge loan?

A “conversion discount”(or warrants) is a future discount that you provide to your investor (the person giving you the bridge loan) in the event that you do raise another round of money or have a liquidity event.

The conversion discount generally ranges between 20% and 40%.

So, for example, let’s say you get your bridge loan and offer a 30% conversion discount and then later you raise a Series A round of venture capital at $1 per share. Your bridge loan investor would then receive one share of stock for each $.70 that he loaned you.

Q: Do you have an example of a convertible note/bridge financing term sheet?

Here’s one: Convertible Loan Term Sheet

Q: Are there any drawbacks to taking a bridge loan?

If you take a bridge loan and can’t pay it back at maturity then an investor can technically use that as an “event of default” which could lead to bankruptcy — the way around that is to accept the bridge loan from someone close to you who you trust to see you through such a scenario.

Additionally, to protect yourself, you can try to get language into the bridge loan which converts the loan into something else (no matter what).

Final Thoughts

If you want to read more about bridge loans/convertible notes (which are also called “convertible promissory notes”), a great resource can be found at Convertible Notes by Yokum Taku, an attorney at Wilson Sonsini Goodrich Rosati (WSGR) in California, USA.

I have worked with the WSGR law firm on one of my startups and highly recommend their services. In fact, one of their attorneys was so good, I eventually hired him as our general counsel!