2 Lessons Every Entrepreneur Can Learn From A Box Of Cupcake Campaign.

 

On July 31st 2014, Lovelyn X emerged the winner of the grand prize of a 10″ cake in the SOUL ARTS free cake giveaways. She referred 40 friends to the contest. She had joined the giveaways like any other person who thought they had a chance at winning cakes for free.

How did she do it?

All she had to do was send her friends to any of the soul arts social media platform (facebook, twitter, Instagram and BBM), who would in turn leave her name on any of these platform as the referee. The cumulative number of referrals who dropped her name on the social platforms for that week amounted to 40.

It was the final week of the promotion and being a month long giveaway that means Lovelyn must have referred an average of 10 people per week. Simple arithmetic, Right? However, that theory was faulted when our data revealed that Lovelyn only entered the contest just four days to the end of the campaign, which was 28 July 2014. This means she referred an average of 10 people per day.

How can someone enter a contest only four days to the end and emerge overall winner? Where were all the past winners for week 1 to week 4? Why didn’t their cumulative referral count make them the grand prizewinner? These were questions on my mind that needed answers.

On June 25 2014, Amina Agbator, a wonderful friend from university days,   and CEO of SOUL ARTS NG, a creative outfit that designs and produces unique handmade greeting cards for all occasions, handmade jewelries for all ages and classes of women and Relish Cakes contacted me on BBM. Her request was to get more exposure for Relish Cakes, the catering arm of her business, which is the newest member of the S.O.U.L Arts family.

After careful deliberation, we decided to launch a social media campaign for her brand. Its aim was to create awareness for her using social media.

The campaign was simple, more like a voting system. For a box of cupcakes weekly, people were to refer their friends and contacts to like or follow any of the S.O.U.L ARTS social media profiles on Facebook, Twitter, Instagram, and BBM. The referrals were to drop the names of their referrer on any of these platforms and each mention counts as a vote. The referrer whose name occurs most on all the platforms wins a box of cupcakes per week. The cumulative vote for the month wins the grand prize of a 10″ cake.

At first, I created a hash tag for her on twitter #SoulArtsGiveaways. Created some content for the event and promoted the content across social platforms. The campaign went on as planned and people signed up. By the end of week one, we had about 100 referrals on all platforms and a winner. Week 2 was even better as referrals almost doubled.

However, the final week produced an amazing result. One of the new referrals who joined just four days to the end of the campaign won the grand prize of the campaign. A 10 inch multi-flavored cake. She referred double the number of predecessors. She was Lovelyn.

While trying to figure out how Lovelyn emerged the Grand prizewinner with the fact that she just joined the contest only four days to the end of campaign. I realized a trend in the data; each of the weekly winners referred at least 20 people during the week they won. However, immediately after they won and redeemed their gifts, they absolutely did not bother about the contest again.

How Could This be?

It then dawned on me. While her predecessors who won the weekly box of cupcakes relented on their efforts after winning, she outperformed them unbelievably.

Why?

Two things I think might be responsible for this outcome.

1. The weekly winners were only in the contest to win the weekly prize of a box of cupcakes and no more. They won the prize and were comfortable with their wins. i.e. they entered the contest just to win the weekly box of cupcakes. Therefore, after they won, they felt satisfied and didn’t see any need to promote the contest further.

Or

2. They entered the contest to win the grand prize but somehow felt their winning votes were enough to make them win the grand prize.

If we go by theory one, it means the weekly winners had a goal of just winning the box of cupcakes and they hit that goal. This shows that they achieved their aim. They did not enter the contest to win the grand prize. That is a great thing, to set a goal and hit it.

If we go by theory two, it means they got comfortable with their previous achievements and relented on their efforts while expecting their winning week’s vote to win them the Grand prize.

A few other variables that could be responsible for Lovelyn to win the grand prize for the contest could be

A. The sense of urgency that the contest would end soon. In realizing that the contest would end in four days, Lovelyn probably promoted the contest more than her predecessors did.

B. The size of the prize comparing the size/value of a box of cupcakes to the size /value of a 10″ cake. The size of the grand prize could also urge her to promote the contest more than her predecessors.

Or

C. Perhaps Lovelyn probably has a larger and responsive contact list etc

Whether these were the major factors that made Lovelyn the grand prize winner is a grey area. However, the subtle life lessons about success that could be applied to all spheres of life in this small experiment are profound.

 

Lesson 1.

It is good to have goals because goals are milestones that tell us how far and how well we are doing on our journey. Every entrepreneur or small business owner should set goals and work hard to reach them. However, not only is it good to have goals and be able to reach them, but it is important to know when some goals are not achievable. Know when you have achieved your aims and objectives. Also, know when your aims are not achievable. Doing this gives you the edge and foresight to know what is important or not. A good general not only sees the way to victory, but also knows when victory is impossible.

Lesson 2.

Success makes a failure of many. The reason  some people are not able to replicate their successes in business or career is simply that they got comfortable with previous successes. You may have achieved a particular feat in your business. Perhaps you have been the highest grossing sales manager in the organization you work for and for a long period, no one has surpassed you. It is very easy for you to relax and claim the best and biggest don. Instead of you to work harder and smarter to beat your personal best, you relent on your efforts.

It just further proves that getting comfortable after one success in life is dangerous. While you are gloating on your achievements, you may be surprised that someone out of nowhere would snap right out under your nose to beat you at your game.

Question: What Lessons Have You Learned About Success as an Entrepreneur?

Understanding The Flow of Money 2

Money Flows Away From Problems To solutions.

“This is one of the rules of money, that money will always flow from problem to solution i.e money will flow from the hungry man who has a problem of hunger to the food seller (iya-basira) who has the solution to hunger.”

In my last article on this topic, we discussed the rules of money, who changed the rules of money, why was it changed, when was it changed, why is money referred to as currency etc. If you have not read it please do so here to have a quick refresher course. I remember ending that article by saying this “to understand the flow of money and put it to your advantage, you need to direct the flow of your money/currency to move from assets to assets as fast as possible” and one of the ways you can do that is to
“Acquire assets that produce [good] cash flow e.g. profitable business ventures.” I proceeded further to say that “Doing so will ensure that your money is not just tied down in a savings account but it is moving as a current is supposed to. It will ensure that your money is not under yielding at 3% p.a when it could be yielding at least, 50 % p.a in a well managed, profitable business.”

Well, starting a business requires quite a lot of diligence and effort. So many people set out to start businesses they have no idea about or just because everyone is into recharge card printing for example doesn’t mean you should also.

Before you rush out to start a business, you really need to understand the directional flow money. Yes! The flow of money. What does this mean you ask? The flow of money means the direction to which money is flowing. You remember I said money is a current in my previous article ehn? That’s right. Money is a current and it flows. If it doesn’t, it loses its value.
Understanding this helps you to position yourself in the direction in which money is flowing. There are two directional flows of money
It’s just like a two lane express way.
Money either flows:

1. Away from you or
2. Towards you.

The directional lanes of the flow of money is labeled “problems and solutions”. This is one of the rules of money, that money will always flow from problem to solution i.e money will flow from the hungry man who has a problem of hunger to the food seller (iya-basira) who has the solution to hunger.

This is evident in businesses and even individuals. The money that flows towards you is the reward for solving a particular problem. Whether as a salaried worker, a contractor or a business man.
The money that flows away from you is the cost of a problem you have not been able to solve. For example, when you fall sick and visit the doctor who treats you to make you hale and hearty, you pay his consultancy fees and cost of treatment. You have to pay him because he was trained to solve that particular problem of saving peoples lives from diseases and sicknesses.

The question you need to ask your self after reading this article is this:

Is money flowing towards you or going away from you?

The point is that as human beings, money is always flowing towards us and away from us simultaneously. What you need to do is to re- position yourself from the problem direction where money is leaving to the solution direction where money is flowing . That is the mind of an entrepreneur. They look at the problem the way everybody does but think and see differently.
The secret is just that for some people, more money flows away than it flows towards them. Money will always flow away from everyone that constantly has a problem that needs to be solved. Now who doesn’t have problems? Everyone has problems that needs solving, but some people have more solutions than problems. Such is the case of Aliko Dangote Africa’s richest man. More money flows towards him than away from him. This man has investments in cement, fast moving consumer goods (FMCG) such as sugar, salt, fruit juice, indomie, spaghetti, haulage and plans are underway to build a refinery in Nigeria. Oh My God! Tell me why he won’t be africa’s richest man.

Africa's Richest Man

Africa’s Richest Man

I remember him joining twitter a few months back and within the space of two hours, his follower count rose to 3000+. Today as I publish this article it stands at 52, 223 with just seven tweets and he follows 10 people. That is the life of a solution provider. Its not about how loud or how much you talk, its about how valuable your words are and what problems your actions solve.

Are you problem oriented or solution oriented? What problems are you solving? To use the rules of money to your advantage, you need to position yourself in the direction to which money flows .

Selah.

~ @phemyte

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Understanding The Flow of Money 1

Money is A Current, It Flows.

Flow: flow/flō/
Verb:(esp. of a liquid) Move along or out steadily and continuously in a current or stream
Noun:The action or fact of moving along in a steady, continuous stream.

credits: under30ceo

credits: under30ceo

Have you ever wondered why money is referred to as currency? Does it bother you what the word cashflow means? If it does, relax. You are not alone. There are probably hundreds of people who don’t either. This is why I have written this article. Just because of YOU. Enjoy.

In the year 1971, the rules of money changed. Thereby changing its flow. Money stopped being static and became a current. This is why you often hear the word CURRENCY. Like in physics, the word current means movement. Thus a current needs to keep moving. If it stops it loses its value. The reason why light ceases in your house is because the electric current stopped moving and it lost it value.

Who Changed The Rules of Money?
Prior to 1971, the worlds monetary system was backed by gold. This means, if you held $100, you are actually holding its equivalent in Gold and the $100 could be exchanged for its worth in Gold. However in 1971, President Nixon ended the convertibility of the dollar to gold.

Why?
President Nixon decided to change the rules because of high inflation rates in the Uncle Sam at that time and since then, money as we know it ceased to be the same. It began to lose its value as majority could not keep up with its pace.

What Does This mean To You?
Since you now know that money is a current, hence the word currency, you need to understand its flow and how to use it to your advantage.
A currency must keep moving in order to keep its value. This is why saving money [for looooong ] is somehow an absurd idea. I have nothing against having a savings but saving should have a purpose. Saving money indefinitely is like parking your currency. It losses its value. Imagine saving a $1000 at 3% p.a while the inflation rate is 7% p.a. This means by the time you’d want to make use of your money, you’d realize that your $1000 is about $500 in real worth.

How Do You Use The Flow of Money to Your Advantage?
The idea is to direct the flow of your money/currency to move from assets to assets as fast as possible. There are two ways to this:

1. Acquire assets that are appreciating in value e.g., gold, oil, land, real estate, stocks, silver etc.

2. Acquire assets that produce [good] cashflow e.g. profitable business ventures.

Doing this will ensure that your money is not just tied down in a savings account but it is moving as a current is supposed to.

It will ensure that your money is not under yielding at 3% p.a when it could be yielding at least, 50 % p.a in a well managed, profitable business.

Do you think money is liquid and its flow can be directed at will? Please use the comment box below to share your views. Thanks.
You can also join the conversation on twitter by following ~ @phemyte.