Are you a risk taker?

[David Mark]

What I mean by risk is not deciding to switch brands of chewing gum for a day (not exactly risky). I'm thinking about something much more significant. The risky stuff I'm referring to could be the following (feel free to fill in the blank):

Changing, Starting or Quitting...
Banks
Insurance/Finance Co's/Brokers
Marketing Initiatives & the companies who deliver them
Careers (Going from a Lawyer to a beach front tee shirt shack)
Boyfriends/Girlfriends
Zip Codes (46220 to 90210)
Diet
Hobbies (basket weaving to sky diving)
Smoking...

My motivation for today's question will be found here: http://sethgodin.typepad.com/seths_blog/2009/05/on-becoming-a-house...

No doubt familiararity can help your brand, but is it always a good thing to remain loyal? I apologize in advance if the following example hits a nerve, but it will certainly display my point without ambiguity. The battered wives syndrome comes to mind. Perhaps we've all known a beautiful lady who remains loyal to her Ike Turner-type husband. Why? Without changing the subject by bringing up irrelvant (psyche) issues, I do believe familiararity is one reason. She may not enjoy her "loving" husband, but she can predict what's going on everyday. In some strange way, there's comfort in predictability (even in her case!).

I get it's scary to make a change, even for the better, but why the hesistation if it's truly a better option? Is it really more "safe" to stay put? Is "better" not good enough. Is safe really working for you? Do you admit you're sometimes a slave to conventional thinking? Probably not. Awareness is half the battle.

I marvel at people who still choose tradtional marketing methods and expect magnificent results. The outcome is they complain because of a rediculous ROI, but they go right back at it again and again. Hmmm, the definition of insanity/stupidity keeps coming to mind for some reason.

Admittedly, risk is subjective and everyone has their very own modus operandi. Please share your reasons for change, or reluctance to change.

[David Mark]

Here's a former post by Seth Godin: 'What Does Better Mean?' http://sethgodin.typepad.com/seths_blog/2009/04/what-does-better-me...

It makes sense, but it can still be frustrating to watch someone buy a boat with a hole in the bottom thinking it's a "better" boat.

[Deanna Sipe]

Great post David. I love it.

Truth is I didn't used to be much of a risk taker, unless you call getting in a 3000 lb hunk of metal and screaming through an obstacle coarse at 65 mph with hundreds of other risk takers (some of them angry) at peak times, having their morning coffee, putting on make up, talking on the phone, having their last free smoke for the day or all of the above... risk taking. Then yes I have always been a risk taker. Especially when I was 16 and late for work and had to slip my pantyhose on at 75 mph on back roads in the country to get to work on time. Fortunately that has changed. I don't wear pantyhose as often. (ok that's just a joke.)

All seriousness aside, security or familiarity is really just a false sense. It's really more about when will you change when it's forced by life circumstances, market or when you choose to change. Change is inevitable. When possible I would like to be the author of it. That's why I changed. That's why I started risk taking.

Honestly the most frightening risk I started taking last year was to ask people what kind of music they liked and then tell them what kind of music I played on my CD. I stood and began to tear (absolutely terrified) in front of the first people I asked. But here is the results of my change in behavior, risk taking,:

400 CD's sold in the last 14 months = $6000 No gigs, no radio time. Numerous repeat sales from satisfied customers.

I am finding that risk taking, changing, is coming with some fabulous results that I never would have found with out trying something new. My CD pitch got better and better because I continued to change my approach over a 4 day period with 700 people to choose from at a conference.

Thanks for adding fabulous content David. I am surprised you haven't been on the front page lately! :)

[Ashley Kersh-Fletcher]

Well David, this is a wonderfully perplexing and thought provoking question. I know that change is always happening and yet we resist change at the same time. Again, it's thought provoking especially since I am at a crossroads with a needed change and have to some degree been resisting due to fear. That horribly disgusting thing called fear. :-)

And yes doing the same thing over and over again and expecting different results is called insanity.

I'm glad that you asked this question and I look forward to reading others responses.

[PK Koduri]

It's called CYA in corporate lingo. We have all heard this right - No one got fired for buying an IBM (Stock or PC depends on the situation). There is nothing wrong with traditional marketing as long as one understands that it is mostly for defensive purposes like maintaining share etc. Use something unconventional and/or new to play offense and gain an unfair advantage - this is where many falter. A good strategy should have both offensive and defensive components to minimize risk.

[Nicki Laycoax]

I think I fall in the category of risk taker... :)

Career-Went from my pretty secure job with the State of Indiana to entrepreneurship... A start up web company with no funding. That's my biggest risk ever.

Second-I divorced my husband of 7 years to find happiness. I found it. I love what I do, I love my new (2.5 years) man, I love my freedom. Great decision.

Moved from the town that I'd been in for 17 years to a new zip code to shake off some old and bring in some new. I'm glad I did.

Diet-I'm working on completely giving up all fast food. If I must have fast food, I research before I order to opt for a healthier choice. Still haven't lost any of this damn weight, but it's a step in the right direction for me. :)

I quit smoking, even though I loved doing it, for my boyfriend. He hated it when I smoked, and I haven't smoked in over 2 years! I know it's a habit that I'll never pick up again!

How about you David?

[David Mark]

First, I'll give a BIG SHOUT OUT to Deanna Sipe! Thank you for the "pat on the back"! You're awesome and your contribution is well appreciated. I applaud your courage to ask the tough questions. As far as not being on the front page, I assume you meant front AND center? I really do appreciate the blogging, but I'd rather have a discussion and the more participation, the longer it stays on the front page! In a sense, I'm right where I want to be! ;)

@PK - I get what you're saying. Combining, both, tradtional and non-tradtional can be a good thing.The question is how much of each (ratio)? It varies for sure. IMHO, avoiding doing "nothing wrong" and doing something remarkable is completely different. Doing "nothing wrong" is the same old boring (fill in the blank) stuff that nobody listens to unless you spend a bazillion dollars (not the the SI audience). I encourage marketers to go for remarkable. I created, used and implemented tradtional marketing methods for years when I first started out and it got me a goose egg. I eventually got it and chose to invest in "better" service and product (where applicable) instead. I learned what non-tradtional marketing was before it was a coined phrase. The result was cash flow and then I sold to a national franchise for a very healthy ROI. This is why I love Seth Godin so much. When I discovered him, I thought, "Here's a guy who gets me. He may be the only one, BUT he gets me!". If you have the choice to play offense AND defense well, or Offense OR Defense great, go for great. There's no risk in being great. There's a HUGE risk in being "just o.k."!

I'm interested to see what you mean by "unfair advantage". Any examples? I used unconventional methods while the competition used conventional means. If the result was "unfair", so be it. I'll do it everytime if it means I'll gain market share. Maybe, just maybe my "unfair" methods will inspire people to get uncomfortable and inspire me to tears (or at least to action!). Thanks for sharing your thoughts!

[PK Koduri]

David - using "unfair" was a wrong choice on my part. There was nothing sinister about it, I was trying to imply was a disproportionate share. The tactics you apply depend on where in the development cycle your particular industry is in. Take IPOD (I know some are rolling their eyes already) for example - it totally disrupted the MP3 market by its ease of use and over the top advertising campaigns. IPOD entered when the MP# player market and DRM standards were in a flux. Apple took advantage of the chaos, made the rules everyone followed. Same thing with printers - in 1997 average printer cost $500.00, then comes along Lexmark (I worked there) and it blows open the market to new segments (new PC owners) by launching sub-$200 printers betting that it will make money on supplies. The strategy worked great for a few years and Lexmark thrived. Of course it soon became a race to the bottom as everyone adopted the same strategy. Bottom line is if you are in a growth industry where rules are still being written be aggressive and make your own rules, but in a mature industry you need to do both. I hope what I said makes sense.

[David Mark]

I didn't take it as sinister. I was more interested in your thoughts behind the thoughts and you delivered. Thanks! ;)

[Ashley Kersh-Fletcher]

Good for you Nicki, sounds like you needed to get rid of the weight holding you down and move on. Congrats! These are important life decisions you made and again congrats!

[Nicki Laycoax]

Thank you so much, Ashley! I appreciate that.

[Hazel "The Queen" Walker]

I have always been a risk taker. Life is about the experiences you collect, not the stuff. Experiences take risk and Risk has its own rewards.

[Kimberly Finnegan]

Hazel,

I agree with you. I have always been a risk taker and I love the life changing experiences I've had.