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Serial Entrepreneur and Go BIG
Founder Wil Schroter's Blog!
If You're Not Authentic, You Will Probably Fail
Author: Wil Schroter
Thursday, August 16, 2007

In the book Chasing Cool, Noah Kerner and Gene Pressman talk about the intrinsic value of authenticity.  They point out that brands like Apple, Grey Goose and Target all seem to own their respective categories from one simple concept - they are fundamentally authentic.  By contrast, many brands try to copy them and fail miserably because they are not the real thing.

Or said differently - if you're not authentic, you will probably fail.  And you probably should.

I've seen this first hand in the 10 companies that I've started.  Whenever a concept or idea was new and innovative (authentic and real) we did really well.

Whenever we stole someone else's idea, we bit it hard.

Keeping it Real

In the wonderful world of the Web, we see this all the time.

Someone comes up with an authentic idea (Digg, Craigslist, eBay) only to be copied over and over by every idiot with an HTML editor.  They assume that if they simply copy the idea and build a clone of a site, they'll share the same success.

For every site I've ever done I've seen clones of what I've done.  At Swapalease.com we had a new company just about every month try to clone what we did (which seems easy on its face) and fail miserably. 

Now with Go BIG we're getting a whole list of clone sites.  All you need to do is hop on Rent-a-Coder, do a keyword search for your company, and you'll probably find someone trying to replicate your concept.

But don't sweat it.  There is no replacement for the real thing - the original.  Don't worry about the clones.  Worry about those that have an original idea that's better than yours.  Those will be few and far between, but trust me, those are the companies to be worried about.

Authenticity Matters

The mistake entrepreneurs make is thinking that just copying an idea will make it useful.  But customers don't think like that, as much as you'd assume otherwise.

Your customer can tell the difference between the real thing and a fake - your authenticity matters.

For example, how many people have tried to copy the iPod?  On its face, it's a really easy concept to replicate.  I would even argue that Apple really didn't innovate much at all, they just wrapped a commodity product in a better package. 

Yet after endless attempts by Sony, Creative, Microsoft, and dozens of other big players, no one seems to have built the following and name recognition of the iPod - not even close.  Why?

Because Apple created an authentic brand that defined it's customer - cool, unique, and hip - you wanted to own an iPod.  The authenticity of the brand made the product better

While Apple did indeed copy the concept of the mp3 player, they created an authentic brand that made it unique. 

Think about your own product.  Is it authentic?  Does it have it's own definition, voice and brand that resonates with your customers?  Or is it just a me-too product with a different logo?

Strip it Down

We think about this a lot at Go BIG.  We think about what we're doing that is uniquely us, and what we're doing that someone else is probably better suited for.

For example, you don't see a lot of "start your own franchise!" content on Go BIG.  It's not because there aren't people who want to start a franchise at Go BIG.  It's because it's not what we're about.  It's not authentic to our brand.

Consider our voice.  This blog is by all means our voice (or at least mine).  It's not overwhelmingly positive as much as it's pragmatic.  And that's what our readers dig.  I get more feedback about how much people like a no b/s blog than people who say "you should be more uplifting."

The blog is who we are - it's what we're about.  You may love it or hate it, but it's undeniably authentic to Go BIG.  And for that reason, people are attracted to it.

So we spend a lot of time not adding to Go BIG, but stripping away.  We try lots of new stuff, but we consistently dump the ideas that aren't authentic.  We can't compete at them.

If we've learned one lesson, it's that what's not authentic is not worth doing.  I hope you come to the same conclusion.




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Comments About this story
Great Article.

As a freelance developer, who has looked for some work on sites like rent-a-coder etc. I have seen many requests for clone site and never really understood how people plan to recreate the way the sites they are cloning marketing and popularity got them to where they are today.

I like the point about the iPod and Apple. They seem to wait on something and then make it the best. I don't think everyone starting up can follow apple's model, though.

Posted by: Thomas Swift 8/16/2007 at 3:34 PM

Actually, the number of companies that were the first to do something, but lost to the new kid doing copying them and innovating slightly, is staggering, especially in the tech world. There's certainly value to being authentic, but being authentic and being the first aren't the same thing. Regarding being the first to do something, I think your analysis is just about as wrong as it can be.

Youtube beat Google Video, Facebook beat Friendster, Google beat Altavista, Delicious beat [can't remember the name right now], and so on. The losers, in these cases, had often gotten some particular detail wrong (Youtube had comments, Facebook had a fast site, Google a less cluttered interface and more relevant results, Delicious had tags instead of folders), something the competitors realized and improved upon. You even list a case yourself -- the iPod. The iPod is just an mp3-player, a brilliant idea that someone else (I don't even know whom) was the first to bring to market. Apple improved the interface slightly and made it white, but that's about it.

To sum up: being authentic is important. Being "the original" isn't.
Posted by: John 8/16/2007 at 8:17 PM

Target is definitly authentic at giving bad service.  Maybe they should try to be fake for a change.  Sorry for the rant...

Great post!
Posted by: Eric Pennington 8/16/2007 at 10:25 PM

I continue to enjoy reading your blog, but I agree with John's comments above.  Adding to his comments, execution matters most.
Posted by: Robert 8/16/2007 at 11:13 PM

Plagiarism is the greatest form of flattery, although I would rather not be complemented in this manner, they're really nothing you can do to stop this theft from occurring.

I believe Wil is absolutely right (as a rule) and John is also correct with the exceptions, but Robert really hit on the underlying truth of it all…"Execution" is all that really matters!

Being an Innovator myself and having struggled with Inventor's paranoia for 30 years, I've finally come to this conclusion; if it is a great idea, it will be copied!

If you have the first original and real thing concept, but have the inability of capturing and maintaining the majority of the market, you will lose to those that execute their plan better. It is for this reason, Investors do not invest in Great Ideas…They invest in the management team, which have the ability to execute the plan!

Tony

www.nopieinthesky.net
Posted by: D. Anthony B. 8/18/2007 at 10:04 AM

@ John - I'm not sure I said being first is correlative to being better or winning.  Where did you see that?
Posted by: Wil S. 8/18/2007 at 4:16 PM

"Idiots with an HTML editor? Phew...

Execution matters most, of course!
And the Internet is the very best example...

Before Google there was Altavista...
Before Wordpress there was TypePad...
Before YouTube there was DailyMotion...
Before MySpace there was Friendster...
Before [...] there was [...]

Not to mention those who "clone" a success in the US for their own (international) market... In fact, more often than not, thar formula has so far proven to be quite succesful.



Posted by: crevs 8/19/2007 at 3:38 AM

I just read this http://mashable.com/2007/08/19/doktus/ and couldn't but think about this post again and the last paragraph of my last comment.

Those German "idiots" made $112 out of a Facebook clone. We're going to have to ask them what HTML editor they use! ;-)

BTW despite the criticism, I enjoy your blog dearly, so keep it up!
Posted by: crevs 8/19/2007 at 4:29 AM

Wil, you wrote about stuff not working out whenever someone "steals" an idea, and you write that "nothing beats the original". We could argue semantics, but I think it's clear in, say, the case of Friendster and Facebook, that Friendster is the original and Facebook is a copy. It is an authentic copy (I love those quasi-oxymorons), in that Zuckerman knew and understood the community he was aiming it at, but I don't see how anyone could ever claim that Facebook was "the original." Maybe the problem is really with insisting on using those words in the first place. There often isn't an "original" -- most things are improvements on something else.

In any case I think Tony summed it up better than any of us.        
Posted by: John 8/19/2007 at 1:11 PM

@ John - I hear what you're saying.

I would argue that both Friendster and Facebook were both authentic, even though one came before another.

I'd argue that both True Religion jeans and Levi's are both authentic, even though one is clearly the original.

Perhaps we can say being the "original" isn't all that important (I don't believe it is) but being "authentic" and not just a blantant copy with no added value is what matters.

Posted by: Wil S. 8/20/2007 at 3:20 PM

Hi Wil,


thank you for great articles. I'm your old reader.

Would you write a list of books which you think are very valuable for businessmen please? Doesn't matter how hard for understanding those books are or what their original language is.



Thank you.
Posted by: NoName 8/20/2007 at 4:18 PM

Great post Wil.  But there are some things that you can do to still increase the authenticity and innovation of your site even more.  I have spoken with Steve about some of these things, and I do hope to see them implemented in the future. 

GoBig is unique yes, but remember there is always room for improvement.  A great example is when my company hired our tech to take us from mid-tech to high-tech.  That is pretty universal now, but for the industry we are in, the type of high-tech is what makes the difference.

Granted we will probably never be able to compete with the Fortune 500 companies for tech-level, but if we couple it with the services we provide and create a new high-tech innovation, we can offer something that they can't.  Versatility.  It is much easier to revamp a small company's IT systems, rather than rearrange a monster network that is set and working.

And investors?  Pooh.  10 years ago, I could of found money in a heartbeat for just about any amount.  Now, after the turn of the century, a new generation of investors has come about that are looking for the "safe" investment.  We call these guys "new money".

I could invest with the most stable company on earth, and I wouldn't call it "safe".  Definitely not profitable either, there is more room for overall loss with an established company, than there is potential for growth and profitability. 

Granted an established company will have more resources to come up with new ideas to perpetuate growth, but lets face it, not everyone is a Wal-Mart, Apple, or Google.

With a start up, or small company, the potential for growth is just as large as the potential for failure is.  Kinda goes back to the saying "If you hit rock bottom, the only place to go is up".  Well, either that or bankruptcy court.  Just starting out or only a short ways down the path, you are at rock bottom.

But the profit margins involved with these companies is unimaginable, IF it takes off.  "New Money" investors though rarely see it that way from the experiences I have had.  They remind me of skittish cattle for the most part.  Spooked by something that happened elsewhere, but still wanting their objective of a large RoI.

I am sure that the first investor that put money into Apple was told by some of his colleagues that it was a bad idea, kiss that green goodbye, and should of put his money into "blah" because it is an established company.

I bet you that same investor is now laughing all the way to the bank, and sipping some fruity cocktail on a beach in the caribbean.

There are virtually scores of businesses just like this, but are overlooked all the time because of the stability of the company is rickety.  Eventually these businesses die, and they are labeled as failed concepts in general, when that is not the case, as the concept was never implemented, because the funding was never found.

As you said Wil, that company wouldn't need investors if it wasn't having problems somewhere financially, whether it be for product improvement, new development, expansion, infrastructure, etc...

Business is a Risk.  Plain and Simple.  You can minimize it, sure, but EVERY company will always have risk, somewhere, someplace.  I am sure that I am not alone in people that want to find "good" investors for their company that don't concern themselves about the "safe" too much, but care about the ideas and the profit potential behind them. 

But it can be like two ships passing in the night.  You have to build your own 10 billion CP light source.  Mine is almost done.  I hope this helps others build theirs, because I know Wil has helped me build mine.

Brian Augenstein
Investor Relations Manager
NEON Claims Advantage, LLC.


Posted by: na n. 8/21/2007 at 2:40 PM

@ Brian - I think your comments were longer than the original article!  I agree with your points completely.

@ NoName - as far as books go, I think my favorite by far is the "48 Laws of Power" by Robert Green.  It's just the bible of wisdom for business.

Posted by: Wil S. 8/21/2007 at 5:20 PM

hello Wil,

 First of all let me tell you that i am not in the technology business like most of you are.I am in a very simple beverage business of vending tea and coffee machines for corporate customers.When we started this business (Its a Franchaise business), our concept was unique in India 4-5 years ago, freshly brewed coffee using fresh beans and fresh milk.Our company imports these brewing machines from Switzerland, so prerformance wise , these machines are just too good.Then later there came in a compititor with the same idea but with indeginously made machines.So we began to loose a lot of market share all over India, but later when the customers experienced the truth they came back to us and our sales are just doing very good.
 So just to reaffirm what you said "Authenticity" is required for a new business idea.I very much agree to it .Rather i would call it "Origanility" so to say. I am saying all of this with my personal experience.
Thanks
Ajit Dhavale
India

Posted by: Ajit Dhavale 8/25/2007 at 1:33 PM

Just found your site.. I reall like it..
You are totaly right.. I guess everyone is afraid, that his idea is getting copied. However there are 2 points which stick out for me.

- More sites with the same idea brings a better poeple awarness and you might get mentioned more often in blogs/news/...

- and as a friend of mine always said. "You don't have to be the FIRST, you have to be the BEST"   -  which reminds me completly on google.

Hopefully I will find some investors ..  ;-)

Peter



Posted by: Peter 8/30/2007 at 6:31 AM



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