Enclosed is a full-transcript of the interactive Q&A session.
=C2=A9 copyright Wall Street Journal Interactive
Q: Guy, do you see yourself as a revolutionary?
Gkawasaki: I think I am. Certainly I was involved in several revolutions,
including Macintosh and the Internet. But the purpose of this book,
honestly, is to pass on my knowledge to the next generation of
revolutionaries.
Q Hi Guy: The general public, the business press, and even my mother beli=
eve
Apple has turned around and is even thriving, yet analysts continue to do=
ubt
its long-term prospects. How can Apple change their opinions and what can
they do, marketing wise, to continue their momentum.
Gkawasaki:: All Apple can do is continue to make a profit. For some peopl=
e,
they don't want to believe that Apple can make it. It taxes their brain t=
oo
much to think that there might be a choice of computers. Just like some
people insist that there is only one way to do almost anything.
Q: How important is banner advertising in the marketing campaign for an
Internet company?
Gkawasaki: I don't think it's too important. On a scale of 1-10 where 10 =
is
high. I'd say that banners are 3 and mail lists are 9.
Q: Hi Guy, great to talk with you. How, in your view, will the Internet o=
pen
up marketing opportunities for smaller to medium-sized companies? How wil=
l
increased bandwidth effect these opportunities and what should companies =
do
now to prepare?
Gkawasaki: The Internet is the great equalizer. I love it. All domain nam=
es
are created roughly equal. It's not like a big company can really "buy" m=
ore
brand awareness on the Internet. A Web site's traffic is primarily
determined by the quality of the site and the online community a company =
has
built. In this sense, Tech Stocks has as good a shot at Web brand awarene=
ss
as Fidelity.
Q: Clearly you don't see much of a future for banners? If mail lists are =
a
9, what's a 10?
Gkawasaki: It's not that I don't see much of a future for banners. It's a
relative judgment. A billboard on the side of the road may not be as
effective as a Super Bowl commercial, that's not to say that billboards w=
ill
die. So what's a 10? A great online community that enables a site to take=
on
a life of its own. Where word spreads virally.
Q: But don't companies that advertise in other media, like television, ha=
ve
an advantage, and don't big companies have more resources to do so?
Gkawasaki: I suppose they have some advantage. But when Yahoo was startin=
g
way back when it's not like they had the ability to advertise in other
media. Yahoo got popular because it served a great need so build a great
site that serves a real need. The traffic will come.
Q: How would you create "sizzle" for a company that is a cross between
viaweb and broadcast.com? We create Internet tools that allow anyone to
instantly create a multimedia network,portal, channel, training, etc. Our
multimedia management and e-commerce tools work with any streaming media.
Gkawasaki: You want me to answer this online in real time? For free? ...
Okay, first of all you must have downloadable demo versions. No brainer.
Then you have to go to the right People: i.e., Webmasters. Where are
Webmasters? Go to lots of sites and click on the buttons that generate
e-mail to the Webmaster. Hang out in the right Usenet circles. Join the
right discussion lists. Go to Webmaster conferences. Go to ISPs and offer=
to
put your software on the installation CDs they send to new customers.
Q: You were mentioning that a great online community enables a site to ta=
ke
on a life of its own -- could you offer some examples of sites you feel h=
ave
been successful at this?
Gkawasaki: Great online communities: Motley Fool, Tech Stocks, Third Age.
Anywhere there are lots of messages posted to bulletin boards is a good
clue.
Q: Guy, do you think there is a crossover between non-Internet and Intern=
et
marketing for brand awareness. For example, TV advertising of a Web-based
service?
Gkawasaki: There sure is. But who can afford it? The single most effectiv=
e
tool we've found for, for example, marketing the garage.com conference fo=
r
high tech entrepreneurs has been mail lists. Not ads. Not banners. Mail
lists. Someday people will figure out that mail lists are more powerful t=
han
Web pages.
Q: For all it's pretense towards being a computer for the people, Mac pri=
ces
and frankly, the attitude of many Apple users, turned off the masses who
might have been willing to give it a chance if it hadn't seemed so much l=
ike
a cult? Didn't the company do better only after it and its users had come
back down to earth?
Gkawasaki: No.
WSJ_Host: Do you think it can regain its followers?
Gkawasaki: It being Apple, right?
WSJ_Host: Yes.
Gkawasaki: I think so. I don't think most left. They may have delayed a n=
ew
purchase or they may have been forced to another computer. But I think mo=
st
of them will/have returned now that the "perception" is that it's "okay" =
to
buy an Apple again.
WSJ_Host: Do you own an iMac?
Gkawasaki: I own two. And I actually bought them. I haven't had to buy a
Macintosh in years. I liked them that much.
Q: I don't have the name or credibility of a Gkawasaki -- so how do I go
around getting free buzz from magazines, reporters etc.?
Gkawasaki: You give me too much credit. Or I've fooled you. Ninety-five
percent of the battle, honestly, is having a great product or service, li=
ke
Macintosh or garage.com. This is called Guy's Golden Touch. Whatever is
gold, Guy touches. :-)
Q: We are a start-up Internet company that is focusing on
business-to-business commerce, what suggestions do you have for finding
funding, and what are the basic expectations from venture capitalists?
Gkawasaki: Did someone put you up to this question? :-) ...
No. But, I am looking for a good answer, though!
Gkawasaki: You can sure check us out. We help two guys in a garage. Two g=
als
in a garage. A guy and a gal in a garage. Straight or gay, get seed capit=
al
but the big picture is that you have to pound the pavement. It's a long,
frustrating task to get funding. You read about the guys who get $15 mill=
ion
after two days but you also read how Michael Jordan makes $35 million a
year. The point is that it's tough work. You have to keep pounding. I hat=
e
to plug our site, but we have lots of content to explain the process. Ple=
ase
check www.garage.com, specifically, the Forums.
Q: How do you suggest employees of a large firm go about starting a small
business, without the operation interfering with current job
responsibilities?
Gkawasaki: Do you mean on the side or within the firm? I'll assume outsid=
e
the firm. Then there's no way that starting a new business won't interfer=
e.
In fact, you want it to interfere so much that you bag the old job and do
something revolutionary!
Q: How do you feel about using PR to drive traffic?
Gkawasaki: That's like asking Michael Jordan how he feels about dunking!
It's the only way to go. I happen to believe that PR is usually much more
effective than advertising!
Q: I know you've advocated guerrilla marketing. Can you explain such
techniques and what's the best example of it you can call to mind?
Gkawasaki: Guerrilla marketing is all about "less is more." My theory is
that too much money is worse than too little. So you do things that are
cheap and effective... Instead of the usual way. For example, when you
launch your company. Instead of doing it at the Ritz Carlton, you do it i=
n
the service bay of a car dealership, if your name is garage.com. May I al=
so
recommend that you read the books of Jay Conrad Levinson. He's the master.
WSJ_Host: This is a follow-up to your earlier response.
Q: So you get around 2500 business plans submitted to garage.com a year -=
-
Why don't I go get funding someplace where there is less noise and so a
better return on investment on my time.
Gkawasaki: Go ahead. Let me know where these places are. At least with
garage.com, we read every plan.
Q: How important to Apple are sales to small businesses and what's the be=
st
way to reach this target?
Gkawasaki: Honestly, I've been out of Apple for a year. I really don't kn=
ow
the current marketing focus. But of all groups, these folks should
understand that without an MIS department, you'd better be able to set up
and use a computer easily.
Q: What do you think accounts for Apple's big turnaround?
Gkawasaki: Steve Jobs was necessary. But not sufficient. It took a lot of
hard work by employees and a lot of faith by customers and developers
Success has many fathers, as they say. :-) BTW, since I left, Apple has b=
een
profitable and its stock has quadrupled ... So if you're a Mac user, you
have my word I won't return and hurt the company. :-) I've got to go now.
WSJ_Host: Guy, thank you for joining us tonight.
Gkawasaki: Can I put one plug in for my book?
WSJ_Host: Sure.
Gkawasaki: Please check it out at:
www.amazon.com/exec/obidos/ASIN/0887309968/garagecom
Gkawasaki: Night!