JDS: What are your thoughts about having and/or dealing with business partners? Some businesses partnerships seem to thrive, while it destroys others.
Peter: In the previous ad agency I worked with I was one of four partners. We each had our own area of expertise, so each partner provided unique talents to the company. We all started off as friends, but I found that over the nine years we worked together we started to grow apart and egos got in the way of working effectively together. I think you need to choose your partners carefully and make sure you feel you can work with those partners through both the good and bad times and that you have similar philosophies about how you plan to manage and grow your business. A partnership is like a marriage, so you need to be prepared to live with your partners over an extended period of time.
JDS: What's the best advice you've received?
Peter: My wife told me it was a great idea for me to start my own business and go out on my own. At the time I started my business I had a fair amount of anxiety and fortunately she had the confidence in me to know I had what it takes to make my business a success.
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JDS: What most impresses you about a person?
Peter: I admire people that are self-starters and who work hard to achieve their goals. We've had several people in our company who started out as receptionists and worked their way up into important positions within Koeppel Direct. My COO started working with me as a college intern and eventually worked her way up to a top position in my company. I'm also impressed with entrepreneurs who have a great idea and are able to do whatever it takes to bring that idea to market. Often this type of person has the ability to bounce back from rejection and has the ability to maintain their drive and desire to succeed through some trying periods.
JDS: If you had it to do all over again, would you do anything differently?
Peter: I probably would have started our online division sooner than I did, looking at the tremendous growth in online advertising over the last five years. I also would have invested in an advanced, direct response media buying and tracking system sooner than I did. The system we have today gives Koeppel Direct some definite competitive advantages.
JDS: Who inspires you now?
Peter: I think that Donald Trump and Donny Deutsch are two successful entrepreneurs that have some good advice for people looking to start or grow their own business. I'm also think that Steve Jobs is a marketing genius and the guys that started Google seem to have a real vision and the resources for growing their business over the long term.
JDS: Do you have any pointers or words of wisdom to give Entrepreneurs and small businesses that want to follow in your footsteps?
Peter: Get involved in a business that you enjoy, since it will consume a big part of your life. Also, surround yourself with smart people that you like to work with and understand their strengths and help nurture those strengths.
JDS: I would like to thank Peter for taking the time to share his insights and story with all of us.
Showing posts with label infomercial. Show all posts
Showing posts with label infomercial. Show all posts
Tuesday, April 1, 2008
Wednesday, March 12, 2008
Direct Marketing Success Story Pt. 3
JDS: How did you get into the "business you're in now"? How did the "Big Idea" come to you?
Peter: I feel that my background working for a diverse range of companies in various marketing positions, including large Fortune 500 companies, a large ad agency, a start up ad agency, combined with my Wharton MBA in marketing, provided me with a strong background for starting and growing my business, Koeppel Direct. When starting my business it wasn't really a big idea that came to me, but more that I liked how direct response advertising allowed companies to measure the ROI from their marketing investments. It was more of a niche area of advertising at the time I started, but I saw firsthand the potential for companies to transform their business utilizing direct response, when I started working on the Hair Club business. Over the course of five years, we were able to help take their business from near bankruptcy, to a high level of profitability. This allowed the owner to sell his business for a high multiple of earnings, and the amount he received for the company greatly exceeded what he had been offered for the company when we first started working with them.
JDS: Did you layout a detailed business plan for it, or was it more a napkin-sized outline?
Peter: I didn't really have a detailed business plan when I started. I liked the direct response business and I saw the potential for growth. I liked the fact that if the client did well you could also do well, so you were really looking out for the client's best interest. In contrast, I had seen brand-advertising agencies spend huge amounts of a client's money, but they couldn't provide their clients with a way to accurately measure the impact of their advertising campaign on sales.
JDS: How did you finance your start up? i.e. Savings, Family, Mortgage, Bank/SBA Loan?
Peter: Fortunately, in the direct response TV business clients pay for their media time in advance, since at the time they tended to be higher risk, start up type businesses. I was able to use the float on the prepayments and the media commissions earned, to initially fund the company. I also put some of my own money into the company and I didn't take a salary for six months, so I could cover the payroll.
JDS: Did you have a detailed spending plan in place for the money you started with? If so, in ballpark percentage terms, how was the money spent; (product/inventory, marketing, employees, tools/equipment, location of operation.) Or was it more, I have this much money to start and I'm going to wing it the best I can?
Peter: I didn't have a detailed spending plan. My strategy was to improve the ROI for the client's I had, which would enable them to increase their advertising spending. I realized early on that the more money they made from their direct response media campaigns, the more money Koeppel Direct would make on media placement. Many of the successful infomercial marketers at the time were hard-core entrepreneurs that were highly demanding and still are today. We always kept in mind that we were spending their money, not a big corporation's money, so it was very important for us to be able to account for every dollar spent and demonstrate how that spending translated into profits for the client. Right from the beginning, I decided we would differentiate ourselves by offering better service, advanced analytics and superior performance, because I knew that was what successful entrepreneurs demanded from their media buying firm.
JDS: As your business progressed, was your growth self-financed through its own success? Or, did you need to raise outside money to grow? If you needed outside capital, how did you get it?
Peter: Our growth has been primarily self-financed. Later in our development, we established a line of credit with our bank, but we rarely have used that line of credit to fund growth.
Peter: I feel that my background working for a diverse range of companies in various marketing positions, including large Fortune 500 companies, a large ad agency, a start up ad agency, combined with my Wharton MBA in marketing, provided me with a strong background for starting and growing my business, Koeppel Direct. When starting my business it wasn't really a big idea that came to me, but more that I liked how direct response advertising allowed companies to measure the ROI from their marketing investments. It was more of a niche area of advertising at the time I started, but I saw firsthand the potential for companies to transform their business utilizing direct response, when I started working on the Hair Club business. Over the course of five years, we were able to help take their business from near bankruptcy, to a high level of profitability. This allowed the owner to sell his business for a high multiple of earnings, and the amount he received for the company greatly exceeded what he had been offered for the company when we first started working with them.
JDS: Did you layout a detailed business plan for it, or was it more a napkin-sized outline?
Peter: I didn't really have a detailed business plan when I started. I liked the direct response business and I saw the potential for growth. I liked the fact that if the client did well you could also do well, so you were really looking out for the client's best interest. In contrast, I had seen brand-advertising agencies spend huge amounts of a client's money, but they couldn't provide their clients with a way to accurately measure the impact of their advertising campaign on sales.
JDS: How did you finance your start up? i.e. Savings, Family, Mortgage, Bank/SBA Loan?
Peter: Fortunately, in the direct response TV business clients pay for their media time in advance, since at the time they tended to be higher risk, start up type businesses. I was able to use the float on the prepayments and the media commissions earned, to initially fund the company. I also put some of my own money into the company and I didn't take a salary for six months, so I could cover the payroll.
JDS: Did you have a detailed spending plan in place for the money you started with? If so, in ballpark percentage terms, how was the money spent; (product/inventory, marketing, employees, tools/equipment, location of operation.) Or was it more, I have this much money to start and I'm going to wing it the best I can?
Peter: I didn't have a detailed spending plan. My strategy was to improve the ROI for the client's I had, which would enable them to increase their advertising spending. I realized early on that the more money they made from their direct response media campaigns, the more money Koeppel Direct would make on media placement. Many of the successful infomercial marketers at the time were hard-core entrepreneurs that were highly demanding and still are today. We always kept in mind that we were spending their money, not a big corporation's money, so it was very important for us to be able to account for every dollar spent and demonstrate how that spending translated into profits for the client. Right from the beginning, I decided we would differentiate ourselves by offering better service, advanced analytics and superior performance, because I knew that was what successful entrepreneurs demanded from their media buying firm.
JDS: As your business progressed, was your growth self-financed through its own success? Or, did you need to raise outside money to grow? If you needed outside capital, how did you get it?
Peter: Our growth has been primarily self-financed. Later in our development, we established a line of credit with our bank, but we rarely have used that line of credit to fund growth.
Thursday, February 14, 2008
Direct Marketing Success Story Pt. 2
JDS: Were you entrepreneurial at an early age? For instance, did you sell lemonade on the corner, shovel sidewalks or deliver newspapers? And if so, did your parents push you that way, or was it more part of your DNA?
Peter: I was not particularly entrepreneurial at an early age, but some of the jobs I had as a kid growing up peaked my interest in a business career. My parents wanted me to be a doctor. My mother often said to me, "If you're not going to be a doctor what are you going to do?" So there was definitely pressure on me to pursue a career in medicine or to pursue an advanced degree or become a professional in some field. I think that was one of the reasons I was motivated to earn an MBA in marketing from The Wharton School. I think the Wharton degree helped to establish my credibility with employers and new business prospects, but once you started working with a company or client the bottom line is the type of performance you can deliver for them and most could care less about your degree.
JDS: Were you ever involved in any other business before you started the infomercial business you're in now? If yes: What happened with it?
Peter: I worked as a brand manager on the Heinz Ketchup business when I got out of Wharton and then I worked at a large advertising agency, The Richards Group, before three other guys from that agency and I left to form our own ad agency, which I discussed earlier. We worked together for nine years before I broke off to form Koeppel Direct. That agency is still in business, but my DRTV agency has grown significantly and is now much larger than that agency.
JDS: Did you ever have a business idea you didn't act on? If yes: Do you ever catch yourself thinking, "Why didn't I do that?" or was it more, "Thank God I didn't do that."
Peter: I've definitely have had business ideas I didn't act on. I decided a number of years ago it was more fruitful for me to concentrate on ideas for growing my business rather than developing new businesses that might be outside my field of expertise.
Peter: I was not particularly entrepreneurial at an early age, but some of the jobs I had as a kid growing up peaked my interest in a business career. My parents wanted me to be a doctor. My mother often said to me, "If you're not going to be a doctor what are you going to do?" So there was definitely pressure on me to pursue a career in medicine or to pursue an advanced degree or become a professional in some field. I think that was one of the reasons I was motivated to earn an MBA in marketing from The Wharton School. I think the Wharton degree helped to establish my credibility with employers and new business prospects, but once you started working with a company or client the bottom line is the type of performance you can deliver for them and most could care less about your degree.
JDS: Were you ever involved in any other business before you started the infomercial business you're in now? If yes: What happened with it?
Peter: I worked as a brand manager on the Heinz Ketchup business when I got out of Wharton and then I worked at a large advertising agency, The Richards Group, before three other guys from that agency and I left to form our own ad agency, which I discussed earlier. We worked together for nine years before I broke off to form Koeppel Direct. That agency is still in business, but my DRTV agency has grown significantly and is now much larger than that agency.
JDS: Did you ever have a business idea you didn't act on? If yes: Do you ever catch yourself thinking, "Why didn't I do that?" or was it more, "Thank God I didn't do that."
Peter: I've definitely have had business ideas I didn't act on. I decided a number of years ago it was more fruitful for me to concentrate on ideas for growing my business rather than developing new businesses that might be outside my field of expertise.
Thursday, November 15, 2007
How To Market to Baby Boomers
Boomers were the first generation to grow up with TV, so it makes sense that they still prefer this medium as they age. In fact, on average, Boomers watch 22 minutes more TV per day than younger people, according to Nielsen Media Research. And since TV viewership increases with age, as the Boomers mature, their TV viewing time will continue to rise. What does this mean for infomercial marketers?
Focus on the right type of programming. Boomers tend to watch programs that center around life stages. For older Boomers, shows like CSI and Law and Order are favorites. Older Boomers also prefer news programs and are less interested in reality TV. For younger Boomers, shows like Grey's Anatomy and Desperate Housewives are popular. Additionally, science fiction programming is popular with all Boomers, perhaps because this generation watched so much of the genre while growing up. Therefore, if you want your TV ads to reach Boomers in the most cost efficient manner, you have to place them during the shows that Boomers watch.
Boomers don't multi-task. While younger TV viewers are likely to be online while watching TV and may even interact with the program via online voting, text messaging or chat rooms, don't count on that with Boomers. They tend to focus on one media at a time. For media buying experts, that means Boomers won't likely type in your displayed web address while watching your commercial spot. Rather, they'll pick up the phone and call the toll free number you display or go to your website after they finish watching a TV show.
Help Boomers identify with your ads. Since Boomers are not in their 20s and 30s anymore, make sure your ads reflect the needs, wants, and images of older Americans. A 20-year-old perfectly airbrushed model touting an anti-wrinkle cream won't speak to the Boomer market. Go for more mature spokespersons and really do your homework to determine how your product or service helps Boomers. The big categories or "hot buttons" for boomers are security, longevity, money management, wealth transfer, lowering their bills, and travel.
Focus on the right type of programming. Boomers tend to watch programs that center around life stages. For older Boomers, shows like CSI and Law and Order are favorites. Older Boomers also prefer news programs and are less interested in reality TV. For younger Boomers, shows like Grey's Anatomy and Desperate Housewives are popular. Additionally, science fiction programming is popular with all Boomers, perhaps because this generation watched so much of the genre while growing up. Therefore, if you want your TV ads to reach Boomers in the most cost efficient manner, you have to place them during the shows that Boomers watch.
Boomers don't multi-task. While younger TV viewers are likely to be online while watching TV and may even interact with the program via online voting, text messaging or chat rooms, don't count on that with Boomers. They tend to focus on one media at a time. For media buying experts, that means Boomers won't likely type in your displayed web address while watching your commercial spot. Rather, they'll pick up the phone and call the toll free number you display or go to your website after they finish watching a TV show.
Help Boomers identify with your ads. Since Boomers are not in their 20s and 30s anymore, make sure your ads reflect the needs, wants, and images of older Americans. A 20-year-old perfectly airbrushed model touting an anti-wrinkle cream won't speak to the Boomer market. Go for more mature spokespersons and really do your homework to determine how your product or service helps Boomers. The big categories or "hot buttons" for boomers are security, longevity, money management, wealth transfer, lowering their bills, and travel.
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