Kwedit is currently only for digital goods, however, their partnership with 7-11 Stores will create a new payment method that changes the landscape of online sales, especially using Kwedit Direct!

In the New York Times article “Buy Now, Pay Later (Maybe with your allowance), Kwedit bring online purchasing to the under-13 crowd, as well as a tipping point to add new buyer personas to e-commerce.

Currently, Kewdit is being used strictly for digital goods in children’s games, where they can make purchases of digital goods in the game using a promise to pay.  As they do pay for the goods, their “kwedit” score goes  up, allowing them to purchase more on a promise.  Kwedit is reportedly seeking the “sweet spot” where the kewdit limit is not too high, but not low enough to discourage the purchases.  At the same time, the digital goods sellers suffer no real loss for non-payment (except obviously their time in creating them).

The cooler part of this new platform is the potential in the future availability to add “Kwedit Direct” as a payment form for all other online transactions.  According to the New York Times article, the buyer will be able to make a purchase online using the Kwedit account, then print out a bar code and take it to 7-11 to make a payment in person using their cash, or their credit or debit card.

This potentially increases online sales to those who have avoided buying online because they do not want to expose their bank account, credit or debit cards – or they simply do not have one.

This is an exciting opportunity for online merchants and worth watching as it rolls out!

Traditional Funnel v. Viral Funnel

A study in viral marketing found some interesting stats on viral behavior that are worth a look for any marketer or Social Media Manager.  In an examination of a 4-million strong network, researchers had four key findings:

1. Consumers stayed in their personal network, often exchanging recommendations back and forth with the same friends.

2. Recommendation networks centered on specific types of products creating a “community of interest.”

3. Trust, influence and the perception of “spam” were all purchase factors.

4. Most recommendation chains were short, ending in the initial product purchase more often than not.

Read more analysis and the 4 Viral Implications for Marketers at Randall Beard’s blog [01-25-10]

In general, using Social Media for Marketing is like any other kind of Marketing. So let’s start with a definition of Marketing – because too many people I know think that Marketing is the same as Selling, or that Selling is an automatic response to Marketing.

It is not.

Marketing is a way to “becoming known”.  When you “become known”,  you are building your “brand”.  This is true whether your “brand” is Coca Cola or Sharon O’Dell.  A “brand” is simple.  To market effectively, you then have to define what you are “branding”.

PRODUCT Marketing:  When you think of “Coca Cola”(product)  you don’t think of the CEO, or the Marketing Director, or even the gal on the bottling line.  You think of the PRODUCT…. a bottle or a can of Coke.  Their marketing is to keep that bottle or can at the top of your mind every time you make a purchasing decision to buy soft drinks.  Now, most people go to step 2 before they buy:  they ask a friend or a few friends.  ”Hey Carol, have you ever tried that soda called “Coke” before?”.  They gather information before they make that decision!

SERVICES Marketing:  On the other hand, (service) when you think of finding a doctor, lawyer, realtor, consultant or expert to help with something what do you do?  Ok sure, some people go to the yellow pages and find the category then close their eyes and put their finger on the page.  Then open their eyes and who ever is the closeest gets their call.  MOST PEOPLE DO NOT USE THIS METHOD but it has been known to happen to us all.  Generally – what do we do?  We know someone from our network and/or then we ask our family and friends.  If you are in a service category, then YOU become the brand.  Plain and simple.  Thus,  your marketing message has to be about selling the brand “YOU”.

Now you may think that this is stupid and simple and by now you may be saying to yourself “I know that! So what!!”  To which I say, GOOD! Why then, after admitting that you know this, do you think that Social Media MARKETING is any different?

Why do you think that you can post to my Facebook page that you are selling something and then instantly think I should be buying it?  Do you know me?  Do you know if I need this thing you are selling?

Understand, I DO want to know what you are doing – if you are posting to my page, you have “made it” into my friends or acquaintance circle, and I will probably do my best to support your efforts – especially if you or what you are doing has meaning to my life – but THAT is marketing my friend!  That’s it!  Do you “get it”? Hope so!  That is STEP 1 of a process. Nothing more. nothing less.

If you are going to post it again, please make sure you do so in an INTERESTING way.  Don’t just “re-post” it.  YAWN.  Remember that most of us generally SCAN our social media pages.  If I see the same thing – again and again, I can’t tell you how fast I scan past it.  On the other hand, even if it’s an ad or a sales pitch, if the person posting it takes time to make it PERSONAL, I do stop, read and (most importantly) THINK about it.

That right there, that thinking process is what needs to be provoked for social media marketing to be effective.  ALL social media (online or offline) is EMOTIONAL. Making it personal creates an emotional tie (that may bind).

Otherwise, congrats!  You have just created the “new and improved” interruptive advertising campaign on my page – and trust me, most of us hate that and wil get rid of it one way or the other (hide, un-friend, mentally put that person/picture on “scan past” or “ignore”.  Just like most typical reponses to TV, Radio, and print media advertising.  This is the new frontier – not a new canvas on which to continue old tactics.

Thus, STEP 2 of this process is to contact me directly and START A CONVERSATION about it.  This is where “the rubber meets the road” to coin an old phrase.  During this conversation I will realize I need what you have; or I may be willing to share it with my friends on your behalf.

Sharing is as important as buying – I have just effectively told my friends, “I trust this person”.  ” I know this person”.

Get creative!  Get personal!  Get REAL!  Most of all, START A CONVERSATION!

Are you an Entrepreneur?

• If you own your own small business, you are.
• If you are a Realtor, you are.
• If  you are into MLM, you are.
• If you are tossing my newspaper in my front yard, you are.
• In fact, if you do anything that does not provide you a weekly paycheck, then you – my friend – are an Entrepreneur.

Entrepreneurs all have some things in common:

• We are all focused on a passion.
• We are determined.
• “We do not fear failure” is our mantra.
• We are used to being told “no”, and we know that is the first step to a “real” conversation.
• We all can agree (maybe not in public) that being an Entrepreneur can be a loney and nerve wracking experience, at many points along the way.

Yet, this is truly the best time to be an Entrepreneur EVER. Why?  Simple!  In the past we had to seek each other out and try to find common ground. That was never easy.  After all, we generally eat, sleep and live our businesses and, until recently, networking with others was usually a hit or miss proposition.

But, thanks to Social Media, we no longer have to spend so much of our very valuable time trying to ferret out those like-minded individuals.  And THAT, my entrepreneurial friend, is what Social Media is REALLY all about.

If you are one of the many who are feeling “confused” about Social Media – then you are one of the many who have bought into the hype!

There are a lot of people espousing a lot of ways for you to use Social Media as a sales tool.  To an extent, I agree it’s a good marketing tool. However, let’s face it, just because you “friend” Joe Boxlight on Facebook, doesn’t mean that Joe is going to (a) friend you back; (b)  interact with you; (c) or buy your stuff.  If you have ever walked into a Networking Group, then you should think of that feeling and apply it to Social Media.  You aren’t there to SELL your wares – you are there to create a network of people who know and trust you!  You have to share your passions, your thoughts, your daily life stuff and get REAL to them.  Only THEN will you “sell” something….and if you are really on your game, you will realize you are not “selling” people on your “stuff”, you are selling “YOU”, and they – in turn – are BUYING from the brand that is “YOU”.  If they don’t know your brand, they aren’t going to buy!  No matter HOW MANY times you list what you have…and even if they need it!

So turn off that selling machine, and turn off the pressure valve in your brain, and come to the REAL party!  Social Media is not the “magic pill”. The sooner you admit this, the faster you can do the “right” thing and then get the REAL DEAL:  REFERRALS! It’s about networking with like-minded individuals that you need to get to know, and (more so) that need to get to know YOU.  It’s just easier on the web because:

(a) it’s no cost or low cost;

(b) you don’t have to pay a fee and drive somewhere,

(c)  you can use a simple search to find people with common interests or ties to the commnity, and

(d) you can make them aware of who YOU are and what your needs are – it’s always about KNOWING YOU first, then your needs.  People love to help other people ( most of them, anyway).  Helping others first,  is the best first way.  Asking for help, instead of selling, is the best second way.  Thanking those who do business with you in a real way, is the ultimate!

Have a great second week of this new year, and new decade!