Content Marketing, Guest Posts

Content Marketing for Professional Services: Does It Cannibalize Your Business?

 Content Marketing for Professional Services: Does It Cannibalize Your Business?badge guest post FLATTER Content Marketing for Professional Services: Does It Cannibalize Your Business?Guest post by Joe Pulizzi, founder of the Content Marketing Institute and Junta42. Joe evangelizes content marketing around the world through keynotes, articles, tweets and his books,Managing Content Marketing and Get Content Get Customers. If you want to get on his good side, send him something orange. For more on Joe, check out his personal site or follow him on Twitter @juntajoe.

In my second trip down to SXSW, I had the distinct pleasure of presenting with Jay Baer, my good friend, a CMI consultant, and one of the best social media minds in the game. The title of our session was, “Does Free Content Cannibalize Your Paid Consulting?“, and it focused on content marketing strategies and tactics for professional services companies.

As a good content marketing best practice, we’ve put together the highlights of the presentation below, along with the downloadable SlideShare version.

Is content marketing required for professional services companies?

“Technology is shifting the power away from the editors, the publishers, the establishment, the media elite. Now it’s the people who are in control.”Rupert Murdoch

In the past, there were barriers to entry for any non-media company, let alone paid consultants or professional services companies, to get traction from its content marketing. These were:

  1. Death of the intermediary: Although media placement and coverage can still be incredibly effective, it is no longer necessary. We can now communicate directly with our customers and prospects, if we have compelling and relevant information to share with them (can you say opt-in?).
  2. Access to talent: In the very recent past, it was challenging for professional services companies to attract the kind of journalistic talent necessary to create and distribute truly remarkable content marketing. That is no longer the case. More and more journalists are making the leap over to the dark side (non-media side) where, frankly put, more resources and opportunities present themselves for great content creators.
  3. Viable technology: You, me, and the sign post can all create a blog in five seconds or less. Social media channels abound for publishing purposes. Marketing automation services are available to all. There are no more excuses.

The recognition that we are media companies

Professional services companies need to realize that they are in competition with not only other consultants in your space, but also media companies in your industry, Google, and the billboard down the street. That means we need to develop and distribute content that is as good or better than anything else in our industry to attract and retain customers.

So, we are indeed all publishers today.

There is only one thing that separates the content developed by a media company and content developed by brands like Intel, John Deere, or LEGO: How the money comes in.

For a media company, content is created in order to make money directly off the creation of content through paid content sales (direct purchase of content) or advertising sales (someone sponsors the content that is created, like we see in newspapers and magazines).

For a non-media company, content is created not to profit directly from the content, but, rather, indirectly by attracting and retaining customers.

In all other respects, the content creation activities in both types of companies are generally the same. Both needs to be authentic and credible. This is important to realize, in that non-media brands are competing with traditional media for attention and retention, just like you compete with the other businesses in your field.

The three-legged success stool

In order to be found in search engines, to drive inbound leads for your organization, and to be successful with your social media strategy, you need remarkable storytelling. Simply put, your content marketing strategy must come before your social media strategy.

You would think since more professional services companies are realizing this, and that the barriers to entry are gone, that content marketing success stories for professional services companies would abound. Unfortunately (or fortunately), most paid consultants and services companies now realize that content marketing is really hard.

Recent Content Marketing Institute and MarketingProfs research shows us that the biggest content marketing challenge for B2B marketers is developing content that truly engages customers and prospects.

content marketing execution figure 2 600x639 Content Marketing for Professional Services: Does It Cannibalize Your Business?

For this strategy to work, it takes patience, commitment, and excellence at the craft. Professional services companies need to shift their thinking and realize that, in order to be the leading experts in their industry and get online referrals, they need to be creating consistent, valuable, and compelling content.

The Content Marketing Institute story

Although we do offer some paid sponsorship opportunities as part of the Institute and our premier event, Content Marketing World, the majority of our online leads come in for our consulting practice, headed by Robert Rose.

In our session, Jay called this strategy a “Trojan Horse Effect”, where we look and feel like a media company, all to generate interest around the consulting practice. Jay may indeed be right.

Since launching CMI in May of 2010, we now average nearly 100,000 unique visitors a month on our sites. We have over 70 active content contributors to CMI, producing two posts per day around “how-to” content marketing as well as content marketing news. Over the past three months, we’ve received dozens of qualified inbound leads into our consulting division, six of which are Fortune 500 companies.

CMI Analytics 600x384 Content Marketing for Professional Services: Does It Cannibalize Your Business?

Partial Google Analytics Chart with Referrals Showing for Content Marketing Institute

The best part is that these companies come to us ready to buy, and our sales cycle has dropped, in some cases, to just a few days.

6 concerns/myths about consultant’s content marketing

But while our belief is that giving away your knowledge (as much as possible) leads to substantially more opportunities, how far should a professional services company or paid consultant open the Kimono? Let’s discuss.

  1. My clients don’t consume online content: We hear this all the time. A paid consultant will say that they target CEOs, who don’t use search engines or social media. Recent Google research tells us that the average consumer engages in over 10 sources of information before making a buying decision. Also, according to research from Doremus and the Financial Times, over 60 percent of senior executives read blogs, watch online video, view webcasts, and use professional networking sites like LinkedIn.
  2. Jay Social Media Post 390x181 Content Marketing for Professional Services: Does It Cannibalize Your Business?We don’t have time to create content: Online content marketing is the ultimate informational annuity. For example, Jay shared his statistics on just one post on social media strategy he created almost three years ago. The post still attracts an average of 300 people per day (to just that one post) and has led to multiple pieces of business for Jay.
  3. We can just do social media, we don’t need content: Jay’s Content Marketing Necessity Scale says it all. If people are already talking about you online in the right places, you don’t need as much original content as those that aren’t yet invited to the party. Frankly, if you want to be shared and talked about in social media, you need some amazing content to make your social media go. As Jay says, “Content is fire. Social media is gasoline.
  4. We can just do a blog: Today, a blog is just a ticket to the ball game. Sixty-five percent of B2B companies have blogs today (according to CMI and MarketingProfs research). In order to be the leading expert for your industry, you need to take story ideas and adapt them to channels, like blowing a dandelion in the wind. For example, with the Content Marketing Playbook, although the eBook was the main content product, we produced a SlideShare version, multiple podcasts, multiple blog posts, a news release, an enewsletter version, snippets in our print magazine, Chief Content Officer, guest blogs, promotions on Twitter, Facebook, LinkedIn, Google+, and more.
  5. We’ll give away all our secret sauce: Contrary to what some people believe, a prospect doesn’t read one blog post and buys on the spot. Through our content, we develop attention, then interest, then action. So you’ve got to work it by solving the pain points of your customers. Yes, you may give away your secrets, but having a grocery list doesn’t make you a chef. Those customers that want to take your advice and do it themselves?… fine. Those are not the kind of customers you want. What you need to do is show your expertise and insight, and have smart executives recognize your talent.
  6. We shouldn’t talk about price in our content: Jay and I call this the Marcus Sheridan effect. Marcus is owner of River Pools and Spas and is now a prominent marketing speaker and consultant. Marcus was able to sell more fiberglass swimming pools than anyone in the country by sharing everything, including specifics on price. Just type in anything around pricing and fiberglass pools into Google… Marcus always comes up and dominates the search rankings. This same philosophy has also worked in his marketing practice. If you can’t talk specific pricing, at least talk about the dynamics that go into pricing. This is your competitive advantage waiting to happen.

4 things to know before you dive into content marketing

  1. Know your niche: Where can you be the leading expert in the world for your specific buyers? It’s better to go smaller and broaden out once you dominate your niche. Think as if you were a trade magazine. Vertical is in, horizontal is out.
  2. Know your audience: Jay’s practice targets the social media practitioner, and has truly focused on this with this Social Pros podcast series. He doesn’t want all people interested in social media, just practitioners. It’s an important distinction. The same goes for OpenView Venture Partners [disclaimer: I am an advisor], who is targeting successful technology entrepreneurs looking for capital to grow, not just any entrepreneur.
  3. Know your budget: Just read this budget and content marketing investment post for agencies from Jay. Enough said.
  4. Know your metrics: Here are the four key metrics for agencies, as well as a content marketing ROI analysis considering the three kinds of measurement indicators for your business.

Thanks again to everyone who came to the presentation. Here are the slides below to pass around at your discretion.

Related
  • ytsirklin

    Sorry Joe, nice try.  Professional Services organizations have been doing content marketing before the term was coined.  Articles, white papers and case studies have been the norm for decades and are being used on a regular basis.  For you to claim that it is some new phenomena is disingenuous and another attempt at using a new piece of industry jargon to sell what we have always done.

    • http://www.convinceandconvert.com JayBaer

       @ytsirklin I’m not sure how Joe (or I) indicated that content marketing for professional services is a new phenomenon? It’s certainly not disingenuous – or at least it’s not intended to be. The questions and obstacles cited here are real, and are being asked by professional services companies of all sizes. There are some that have already fully embraced content marketing, and it sounds like you’re among them. Nicely done. Not sure how that warrants an attack on Joe, who has done more to drive awareness of the value of content marketing than any other person in this country.

      • ytsirklin

         @JayBaer Someone once told me that the meaning of your communication is the response you get.  Perhaps my frame of mind had me reading this as though its a new claim.  In other words, its how I read it.  Mean, communication, etc.  That said, my intent was not to personally attack Joe.  More of a high light of how the content marketing hype machine is repackaging and reselling something that has been done for years; some would argue millenia – cave painting anyone.
         
        If for some reason this came across as a personal attack – mea culpa.

        • http://www.convinceandconvert.com JayBaer

           @ytsirklin No worries. Actually, one of the things that Joe in particular talks a lot about in his presentations is that content marketing has been around since the 1800s. No question he has done a lot to put a label on it – “content marketing”, the same way that Hubspot promoted “inbound marketing” but Joe and the CMI crew definitely know that they are popularizing something that’s been going on (perhaps in different formats and with different metrics) for a long, long time. 

        • ytsirklin

           @JayBaer Good to know.  I do contend that “content marketing” originated with the first cave painting 32,000 years ago.
           
          The cave painting established authority – We are good hunters.  It provided an educational element – This is how we hunt. And, cave paintings described pictorially what they hunted.
           
          My two cents.

        • juntajoe

           @ytsirklin It’s funny you mention that “content marketing” originated with the first cave painting.  I speak about that all the time…and we put this in our infographic here http://blog.junta42.com/2012/02/history-content-marketing-infographic/.
           
          As both you and Jay note, content marketing has been around virtually forever…we are just using that term so that we can all get on the same page.  Thanks for your feedback.

  • jaybaer

    @PamMktgNut Thanks Pam!

    • PamMktgNut

      @jaybaer Pleasure! Good stuff Jay! :)

      • Jeffieun87

        @PamMktgNut Thats courage test! Check it now: @SixFlagsTicket, hurry!

  • zamanPR

    @PamMktgNut @jaybaer Excellent read. Jay is definitely one of the best minds in social media today!

  • jasonkintzler

    @jaybaer at what point do u think blogs are inadequate creation mechanisms for marketing? shouldn’t we have something built for business? ;)

    • jaybaer

      @jasonkintzler Yes, but it takes a long time to turn that battleship. We’re still trying to get biz to blog well.

      • jasonkintzler

        @jaybaer I hear you. would love to explore this more sometime. we’re building the ultimate tool. in due time ;)

  • http://thecontentcocktail.com/ C_Pappas

    I was just reading the other day about how we should say no when someone asks to ‘pick our brain’. Interesting to me because I always jump in for the brainstorm without thinking that I could be getting paid for the information I am providing. I am all for content and driving inbound traffic by ‘selling’ readers on the fact that you know your stuff but as a service provider or consultant, I am wary about how much you can really just give away.

  • Whitney Gutgsell

    One of the biggest issues we’ve come across is getting content out there. We have some great content, but no one seems to know about it unless we email out links to prospects. I personally like creating content, but the actual marketing of the content is burdensome and time-consuming for me. For this reason, we have hired a social media intern to post it in different places, and I think that has made a difference. Unless you’re using great keywords, the “If you build it, they will come philosophy” doesn’t always work.

    • http://www.jumpfactor.net/ Zamir Javer

      This is very true. Promotion strategy goes hand in hand and often needs to be considered before CREATING the content , so that you can match the content for the exact target audience where you will be promoting it.

  • Pragati Bidkar

    ‘having a grocery list doesn’t make you a chef’ –

    you are so right when you say that, Joe. One who produces ideas can produce plenty more..I think it can be challenging for some business owners though, because traditionally, people are used to keeping what they think are ‘trade secrets’ to themselves. And very few people will openly reveal their rationale behind their pricing.