The 187 Things We Learned In Saas, Sports, Tech & Live Events in 2021
Tony Knopp
CEO and Co-Founder of TicketManager. Tech Entrepreneur. Enterprise SaaS Executive. Live Events and Ticketing Expert with Multiple Exits
2021 will go down as a year none of us will forget for so many reasons. For most of us, it was the first full year living through a global pandemic.
We started the year wondering if live events were going to come back and planning for the threat of years of multiple variants. We finished the year with two record quarters. What a wild ride.
Here are the 187 things we learned in 2021 with links to the original posts. All videos can be seen here: youtube.com/c/TonyKnopp - Enough people watched they gave me a shortened link!
(Please note, numbers will repeat to keep the format intact).
https://twitter.com/tonyknopp/status/1345086674766766080 https://www.dhirubhai.net/feed/update/urn:li:activity:6750850194130251777/ Everybody wants to quit sometimes, especially in the very early/hard days which many experienced for the first time in 2020. And that's normal. If handled poorly, however, it can be terminal to your business. It happens to every leader no matter the position on the org chart at some point - Check out Numbers 11:10 where Moses quits. I get calls from friends at "the top" regularly. It's imperative to find a safe outlet who isn't involved in the business. Many use YPO, Vista, small groups, therapists or friends
2. Big industry changes happen in bunches. 2021 will bring lots of new ideas, new companies, and ideas as there is such a major societal change. Network with up and coming businesses equally with incumbents. It's a critical mistake many made with us. Our incumbent competitors ignored, threatened and mocked us. Many partners did too. We benefited from a similar situation coming out of the '08 meltdown.
3. My favorite for the year 2020: "You're on a rock going 65,000 mph around the sun. Your entire existence is a miracle. Don’t be afraid." - Jon Gordon. So many layers in business and personally. This was the first full year of the three things. I hope some enjoyed it as much as I enjoyed doing it. Happy New Year!
4. https://www.dhirubhai.net/feed/update/urn:li:activity:6753396389700628480/ https://twitter.com/tonyknopp/status/1347633306523684865"10 years to 10m ARR." The social media gurus talk often about the growth rate needed for your saas to be a unicorn. Don't get too roped in by black-and-white approaches to business. We've had a number of successful private equity firms looking for "10 years to 10m in ARR." Many more friends who took that path and eventually became massive success - some unicorns.
5. Don't ever pay for meetings. Pay for outcomes. There so many vendors, channel partners, value-added resellers, consultants and the like out there who will want to "help" you sell. Many of them are compensated by meetings or introductions. It's a trap. Say no and offer much more for outcomes. If they won't agree to the terms your sales team does - run.
6. Internal competition, denounced and disliked by many in the moment, is necessary and must be encouraged. I lamented constantly fighting for the starting job in my prep and college career in the moment. Looking back now, what a blessing it was. That chip on Tom Brady's shoulder? Google Drew Henson's high school recruitment. Competition internally is good for everyone, even when they don't like it in the moment.
7. https://www.dhirubhai.net/feed/update/urn:li:activity:6755878768168054784/? https://twitter.com/tonyknopp/status/1350115171948142602?The only thing I could ever give him credit for is hiring me." Many give little credit to those who enabled their success. I was the same way. It's not personal. Just know that's likely how your team sees it and that's a good thing.?(And don't be that person….)
8. Only 30% of the population flosses. "So many come in here and, by the looks of their gums, they just started flossing this week to try and trick us." Flossing is cheap, easy, and has painful consequences if not done. How do you think people view that job they don't love? We tried the "trust your people" for a long time. It works, for a few. What's better for us? Clear and measurable metrics to keep us all moving!
9. Chekhov's gun is a dramatic principle that every element in a story must be necessary. Your business conversations are no different. Have a purpose in all you do. If we don't, we fall into Hemingway's trap. Ernest mocked Chekhov's gun by introducing unnecessary characters into "The Art of the Short Story" then didn't reference them again. It led to unbridled conjecture. The audience will read into everything you say - even if you don't mean them to. Your team…no different.
10. https://twitter.com/tonyknopp/status/1352669201782071296 https://www.dhirubhai.net/posts/anthonyknopp_three-things-the-sports-arms-race-dont-activity-6758431667288969216-E6SK The arms race in sports property consulting had another major entrant with Sixth Street's bet on Legends. PE's see the ability to diversify talent and rights with big dollars set to compete: (Atairos/Learfield, Sixth Street /@TheLegendsWay, @REVEL__XP/Teall, and @elevatesv. The hybrid model- national sales team with on-site supplement pioneered by Learfield is the most common approach currently. Private equity is risk averse. When they all dive into the same market at the same time, there's something there
11. Private equity is changing sports business quickly and the NFL Super Bowl market is a great example. Historically, the Super Bowl was a one-and-done proposition for most stakeholders / host cities. There was no market beyond this year for them so prices were extremely volatile. With funding and central control, there is less need to salvage a down year and diversification over good and bad years. (LPs have a long investment window). Gone are the days of the bottomed out market. The NFL pulled suites sales this week when four top draws hit the marquee
12. Please don't sell out. Ever. Social has been full of pundits lately espousing advice to their followers like "pursing your passion is complete crap." Everyone has a different definition of what they find interesting or successful. In my experience: I dropped out of YPO after I grew tired of listening to rich people complain about how unhappy they were. Everything has its challenges - but man do I love what we get to discuss every day.
13. Three Things I Learned In SaaS, Sports, Tech and Live Events - GameStop, Wall St, and Super Bowl Tickets edition.
Chaos broke out this week when a group of retail investors took to a reddit message board to play a massive short squeeze on Wall St hedge funds using options on highly shorted companies GameStop, AMC, Blackberry, and others.
Everyone chimed in from Elizabeth Warren to Elon Musk.
We've seen this kind of short action before in sports business at the 2015 Super Bowl. A summary of what happened with a number of links can be found here:
That squeeze got so out of control sellers who had sold Super Bowl tickets for $5k each were breaking their orders, paying the marketplaces the money back, then reselling to the speculators who had to cover their losses for $15k+. It?left the original buyers stranded in Arizona without tickets and a flimsy "money back guarantee."
The marketplaces found themselves where Robinhood is today - having to decide between ethics, survival and what was best for their customers.?
The three things we learned from the infamous speculator squeeze of 2015 and how it forecasts the future for Robinhood, Wall St Bets and Gamestop.
Much, much more in the video this week with many citations.
13. The consumer forgets quickly. There are a lot of pundits and competitors out there piling on Robinhood saying they cannot recover trust. Maybe. Maybe not. Robinhood sold out their customers so they could survive. It is that simple. The stakes are much higher than back then, but SeatGeek, TicketNetwork and Vivid Seats did the same- choosing to refund buyers instead of honor their obligations. StubHub and Ticketmaster famously took the losses. Six years later, nobody remembers and the StubHub CEO who did the right thing was out just 24 months later. https://www.espn.com/nfl/playoffs/2014/story/_/id/12255886/hundreds-super-bowl-tickets-fall-through
14. "Money distorts the truth like a fat hippo in a thong." Robinhood is doing everything they can not to tell the real truth - they couldn't cover the upcoming action and had a liquidity problem. They had little choice. They either went down with the ship or lived to fight another day. Outlier events tank companies like the 2010 World Cup tanked Razor Gator. They did what they had to do. Just know that's what many people do in hard times and plan accordingly. https://www.cnbc.com/id/38428197"
15. Behold I send you out as sheep amidst the wolves." In every market there are many who believe the ends justify the means. Their word means nothing. " We all like to believe we'd run into the burning building, but until we feel that heat, we can never know" - Tenet. Every market has a majority who do what they do for money and power at all costs - morality and ethics be damned. Know they're out there. Hedge Funds. Bad guy brokers. Don’t budge. "Better is a little righteousness, than vast revenues without justice." - Proverbs 16:8. The sheep will win in the end. Stick together.?
16. https://www.dhirubhai.net/feed/update/urn:li:activity:6763544837762490368/ https://twitter.com/tonyknopp/status/1357781058884800512
People vote with their feet. When evaluating a company, supervisor, customer or partner, forget the awards, the posts, the review sites and the trade mag features. Most awards are bought. Most features are in exchange for advertising/favors (we get offered them all the time). Review sites are fake/gamed. Pay attention to the team. Are they moving vertically when leaving? Are they staying? If not, you may have your answer.
17. Brands are partners, not customers, and the numbers from the NFL enforce it. Too often, live events 'sell to' brands as if they're consumers. They're not. They're using the live event to sell their own products - that's what sponsorship really is - and we just got a ten month stress test on live sports as a marketing tool. Just wait until you see the #'s on engagement and growth these brands get from being there.
18. Tell them you love their scars. We have people in our lives, personally and professionally, who carry their mistakes and insecurities like weights. They try to hide them. Make sure to let them know those scars aren't liabilities, they're usually why we appreciate them most. I knew I was with the one when she told me what she loved most about me was something I thought a blemish.
19. https://www.dhirubhai.net/feed/update/urn:li:activity:6766082697485012992/ https://twitter.com/tonyknopp/status/1360318283174400000
The algorithm isn't helping young entrepreneurs. There are many influencers offering soundbites tailored to get attention. They are promoted in all our timelines creating a noise, bias and groupthink while burying the useful. We've found the most applicable advice is a bit controversial and harder to find. Another poll on which WFH model we like is fun but like all empty carbs, best moderated.
20. When a measure becomes a target, it ceases to be a good measure. It took us years to engrain this foundation culturally as people today need gamification-so they chase measures and not outcomes. Many use those measures as justification for lack of performance. Many chase KPI's of the day. Salespeople chase activity numbers. Marketers - vanity metrics. My to do list killed me until it became a progress list.
21. Winners Win and Losers lose. In The 48 Laws of Power, #10 is to "avoid the unhappy and the unlucky." "Losers lose" for reasons we sometimes don’t see. Avoid them. I've found the converse to be true as well, both in experience and in study. When you find winners, get near them. Overpay them. Know there's more than we're seeing as to why they keep winning. See: Tom Brady
22. https://www.dhirubhai.net/feed/update/urn:li:activity:6768590032447135744/ https://twitter.com/tonyknopp/status/1362832525341519873
Feeds are loaded with expert advice on how to build a winning company culture.
We are not those experts.
There are a number of things we've learned, the hard way, over the past decade, which have made
@ticketmanager a better place to be. Here are four things we learned. Reader warning: They sound really simple at first glance. They are not. They have a lot of layers to them which fundamentally transformed our company.
22. We stopped focusing on how people *should* think and started understanding how they *do* think. Instead of trying to find or create perfect people, we tried to create the best environment for imperfect people to succeed.
23. Everyone believes they're a 'five tool player' or that they only hire 'five tool players.' Maybe 1 in 100 are. Maybe. Identify the tools they/we don't have and support those areas while they grow them. We are all unique and great at different things. Myself included.
24. We learned "If you want to be loved, you have to give up trying to being liked." We started focusing on being loved by our community - for all of our faults and positives alike. It sounds nice, but it ain't for the faint of heart. Being loved over liked can be simplified by: Stand for something.?If you take a stand for what you are, whether that's honesty, integrity, profits or whatever, there will be those who disagree with you and will dislike you for it - and those who love it.
25. We stopped caring if our team 'liked' each other - and took that expectation off the table - but demanded they respect one another. Friendships are nice but they are not necessary for success and removing that pressure and those politics is freeing for everyone. There are people at our company who I'm not friends with - and I'm quite certain they don't 'like' me - but I respect and trust them. They are free to be exactly who they are knowing we are committed to their goals.
26. We made it known success is quitting and working backwards from there. How are we helping them get to the place where they will quit successfully for us all and measure ourselves against that goal every single week. If their goals align with ours then everybody wins
27. https://www.dhirubhai.net/feed/update/urn:li:activity:6771117484864086016/ https://twitter.com/tonyknopp/status/1365355908314714113 ?
Don’t pick fights. Better yet, avoid them at all costs. You never know what the other side has in them and the winner never wins without a cost. In business, too many big companies underestimate start-ups and smaller firms. Some of them have serious fight in them and won't take to bullying. The "winner" of the brawl? Torn biceps and broken hand.
28. Better to be a Warrior in a garden than a gardener in a war. With #1 in mind, know companies will pick fights with you. Big firms will pick on you, talk down about you, and try to flex their size against you. Building your defense is no different than real life: prepare. Stress test your contracts, partnerships and culture. Know that being kind and being a killer when needed for your team are not mutually exclusive. See commentary
29. Have an impartial system for your internal sales fights. People fight over customers, commissions, queue time etc. We suggest a third party council, uninvolved in revenue, which can be called on anytime there is an unclear disagreement. Giving your team a fair voice to be heard goes further than you think
30. https://www.dhirubhai.net/feed/update/urn:li:activity:6773635148970889216/?commentUrn=urn%3Ali%3Acomment%3A(activity%3A6773635148970889216%2C6773637429480984576) https://twitter.com/tonyknopp/status/1367875101350191111 ?
Three Things I Learned From My Best Friend
An 8 pound puppy, Hula, we said goodbye to after 15 years:
Ignore the odds. Hula was born a runt who became a giant. She had a heart murmur, life threatening allergies, and her knees went bad when she was 3. Didn't slow her at all. All of us are told what our limitations are - and reminded of them at the worst times. Ignore them. Heart is all that matters
31. Just be there. In our early years, I struggled terribly with panic and anxiety which ruined my sleep. Every night, Hula would sit by my head and wait for me to stay asleep. For two years. No advice, no answers- just making it clear I am not alone. It wasn't the experts who helped me most, it was Her, staying by me while I worked through it. Don't solve your teams problems. Be there while they do it themselves
32. You can't do it alone. TicketManager has been a success story for so many. People met here and got married. Others have made lifelong friends. None of it happens without Her. We don’t get through '08-'10. She carried more weight than anyone will know. Your team isn't just your team - it is the loved ones around them who help them carry their cross
I will miss You terribly 'My Dog My Love.' And am so thankful for our time together.
33. https://www.dhirubhai.net/feed/update/urn:li:activity:6776158484183564288/ https://twitter.com/tonyknopp/status/1370395927685439491
Would You Keep The Money?
In early 2009, we were bootstrapping and too close to the edge. We had ~$60k in the business. Total. There were 8 of us and 4 of us were working for no pay.
Then, one day in February, a customer (a Fortune 100 company) sent us a check, by mistake, for $356k.
It was double paying the business done with them in 2008. Pure profit. A lifesaver.
We called the customer to alert them we were sending the check back.
They said not to. Too much of an accounting issue.
So we suggested keeping on file as a pre-payment.
Again, they said not to. It would trigger an audit which would cost the company far more than the check itself.
We were told to keep the money. They liked us. They knew we were small. And they didn't want to go through the hassle of getting the check returned. We called their accounting team and they said the same...keep it.
It was a mistake, but one we could benefit from to grow our business. They were insistent.
Here are the three things I learned from the time we got a miracle check in the mail - and what we did with the money.
33. How you handle every situation at the beginning of your company/career will shape your decisions in the future. $350k was a ton of money for a company of eight people, four of which were not taking any paycheck. The numbers get bigger, but the stakes, and pressures, don't get any higher.
34. As decisions like this one have come up, we've had precedence and identity to rely on thanks to how we handled the miracle check.
35. Nothing is ever black and white. That's too easy. Satan dances in the gray area. This was the first time, but definitely not the last we had a very murky situation. Leaders have to get comfortable in the gray area. It's where most of their jobs are spent.
36. There are not kudos for doing the right thing. This ain't the movies. Usually those who do the right thing are mocked, fired or left behind. The game is a lot harder when you play it with the 'handicap' of telling the truth and having integrity. And it's worth it. You'll watch others cut corners and justify their actions on the way to the top. My personal advice: maybe 'the top' isn't the goal here.
We returned the check. I've proposed this scenario to many entrepreneur meetings, fireside chats and even to an ethics class at Pepperdine over the years. Although it seems like many would return the check when first hearing the story, the majority usually vote to keep it. Remember, he was insistent and sending it back, his company dealt in billions so this was a rounding error, and doing so could cost us his business - he was our second largest customer at the time. The vote is usually 60/40 in favor of keeping the check after an hour of debate.?There were three of us running the company at the time and the vote was 2 to 1. It came down to a simple thought: He was being entrusted with the public shareholder's money and we didn't feel comfortable taking it.
37. https://www.dhirubhai.net/feed/update/urn:li:activity:6778692480864006144/ https://twitter.com/tonyknopp/status/1372929504641884161
Our job is not our identity. I played volleyball at a very high level growing up- for Nike, then USC and the U20 US National team. So did my sisters. The whole time, my dad would tell us "You are not a volleyball player. That is not your identity, it is something you do." His wisdom was lost on me but I listened. And it made my transition so much smoother than my teammates. I fell into that trap again the early years of TicketManager - thinking failure would define me b/c TicketManager was my identity. Avoid my mistake. And drop "what do you do" as an early question =)
38. The generic inbox is not a waste of time. For a salesperson, hearing "please email '[email protected]' or the 'supplier portal' is a blow off…most of the time. Two of our earliest customers, both Fortune 50 companies, came from the generic inbox. One of which I had forgotten I filled out two years earlier. They signed on to become our biggest customer at the time.
39. Great teammates genuinely care about others. It can expose a dangerous hiring flaw: They root for candidates. They want others to be successful. Unfortunately, great people can't save everyone. They have to focus on what drives the best results. A simple rule: if you find yourself rooting for a candidate, time to take a step back and ask: am I confident with the ball in their hands?
40. https://www.dhirubhai.net/feed/update/urn:li:activity:6781236926197436416/ https://twitter.com/tonyknopp/status/1375481498132832258
What I learned selling a boxing sponsorship to a gentleman's club*
In 2004, STAPLES Center hosted an HBO fight and we were contracted to sell sponsorship packages.
I was assigned the inbound phone lines.
A call came in from Stars Planet, Inc which owned clubs in DTLA. David, the caller, asked what we would sell to his business
After consulting with my boss, we sent over a list of what was available. Traditional packages including signage, tickets, and sought after inventory.
We were wrong in all of our assumptions.
David called a few days later and ordered the following assets:
It was all undesirable inventory we didn't even know how to price. The sponsorship was ~$110k, with tickets being 90% of the cost.
What did he do?
* He sent his talent to the fight draped in gear promoting his club near each sign
* The signage was all arrows pointing to his parking spots where...
* He had 10 shuttle busses taking guests to his club
He called Monday informing us it was biggest night in years
Here are the three things I learned:
40. The customer often knows their business far better than we ever will. Everything we suggested was wrong for his needs. What got the sale was that we gave him all the information and he knew what he wanted. If this were a competitive situation, we would have lost. (I have no doubt he was being coy for a reason given the circumstances). Every pitch we're careful to disclose everything these days
41. Pricing is very difficult and too often overlooked. To most, including the 12 core sponsors and the standard categories we sold to, what Stars Planet bought wasn't worth much. Our sponsorship team hadn't even considered the value of his use case. For him, they were the best assets and we underpriced them. We've learned that lesson over and over at TicketManager as well.
42. Experience is underrated. He knew his customers and what would work. Analytics, elimination of bias and innovation are necessary. But nearly all of the famous innovators stories had someone with extensive experience involved to help Apple, Google, Microsoft, Facebook grow in their markets. Whether investors or mentors, they are very public, just not as public as the founders. David knew what worked in his market. We didn't.
43. https://www.dhirubhai.net/feed/update/urn:li:activity:6783775880234852352/ https://twitter.com/tonyknopp/status/1378016606509408257
"It ain't what they call you, it's what you answer to." WC Fields. We all have labels. I was a jock but I answered to good student - which we addressed last week. At AEG they called us ticket salesman. We answered to entrepreneurial sales professional. At stubhub they called us brokers. We answered to tech disruptors. At ticketmanager they've called us niche. We answer to market creators.?I get called a lot of names. I answer to one. What we answer to defines the chances we take, what we think we can do, and where we end up. It sounds easier than it is. There are difficult moments where we have almost no leverage and we have to stand up for ourselves- I'll share one in the future from my experience at the Dodgers and again at AEG - but it is more important than we think.
44. "All happy families resemble one another but each unhappy family fails in its own way." Business advice seems so obvious when offered by the successful. But when put together as "ands" not "ors", it is anything but. Check all the boxes or.....
45. There are no rental cars anywhere on Maui this week. Nor dinner reservations. Two months ago, we paid $16/day for a car and the island was empty. Walk-in anywhere even only at 30% capacity. Package sales are through the roof for future events and it isn't corporate - it's consumers paying super premiums for 2's and 4s. Everything our customers post is selling for over face- even the crappy games and parking passes. The faucet is turning on and gaining speed. If it continues at this pace - look out.
46. https://www.dhirubhai.net/feed/update/urn:li:activity:6786296672109649920/ https://twitter.com/tonyknopp/status/1380542676253036546
Companies have found a way to get a form of force majure into their contracts - and it is genius. Knowing a pandemic clause is too ambiguous, they are adding tiers of spend based on the allowed attendance. Fall below 25% allowed in the event, pay nothing. Over 50%? Pay the rate. We believe it will become the norm, as it already is in most tech contracts
47. Have heard from multiple sources Endeavor is the winner of the Paris '24, Milan '26, LA '28 hospitality provider shoot-out, which included CAA, Comcast, Legends and Quint. With Tokyo fan-less and Beijing a recent history repeat (2008) mired in political controversy, big upfronts needed for three marquee games in destination cities
48. Performance based sponsorship contracts are the rage but be very careful. They go both ways. One of the biggest benefits of live events deals is the uncapped upside. Buy into a crummy team, they turn it around, and the loyal buyer reaps rewards for years. One of my biggest mistakes: in 2013 we sponsored three teams. The fourth and last one out: the Golden State Warriors. Yes, the team who went on to win the title the next year and play in five straight finals. It was a three year deal at only $70k annually. That deal would be $400k today. Swing and a miss.
49. https://www.dhirubhai.net/feed/update/urn:li:activity:6788846982942334976/ https://twitter.com/tonyknopp/status/1383087136488845318
Take some time…in the middle. The human brain can only process so much. When we're overloaded, as we all are now, we default to binary decision making. The either/or logical fallacy. It leads to Red/Blue, Vaccine/Never, With/Against us thinking. We are all guilty of it. Had a friend compliment another for "being able to change their mind." What a sad place we've found ourselves in.
50. Getting fast and loose with ARR doesn't fool anyone. It's usually just a soft bullet point to match a narrative. We all feel pressure to exaggerate, usually b/c others are doing so. Just know diligence finds everything and being dishonest loses credibility which can't be earned back
51. It takes 8 to 16 touches to get a person's attention. The same goes when leading a team. The most common mistake new leaders make is to assume everyone is hanging on their every word. They're not. Saying to do something 3 to 5 times isn't enough. Repeating isn't disrespectful, it's great leadership done right.
52. https://www.dhirubhai.net/feed/update/urn:li:activity:6791513603632705536/ https://twitter.com/tonyknopp/status/1385750226686808064
?Authenticity is your only differentiator. I told the truth. That simple. These other companies are bigger, more powerful and your team will find them the safe choice. But you're all I've got. Here's my cell phone. Call it anytime. Still goes today for all our customers. And she does still call our mobile phones, which is welcomed with a smile.
53. Pick the right customers to take a chance on. In enterprise SaaS, everything you do at the beginning matters tenfold. This customer had the right vision. They had similar ideas and we honestly aligned. The wrong first customer will destroy your roadmap and cost you millions. First customers set the future. Pick wisely.
54. Welcome the hate. Once you win, the incumbents will ratchet up their vitriol. Some won't, but most will. They will denounce you. Recruit your people. Threaten you with lawsuits. Try to undercut every customer. This is good. You've got their attention. The more they focus on you, the less they're focusing on the customer.
55. https://twitter.com/tonyknopp/status/1388169813101453313 https://www.dhirubhai.net/feed/update/urn:li:activity:6793930812485201920/
Getting in front of executives is very hard. Four times not to try:
After a big announcement or achievement - When a professional buys or sells a company, announces a big win or raises money, it can be the busiest time for them. Add to the work the avalanche of congratulations, job requests, long lost friends and sales pitches, and our message is easily lost.
55. After an appearance. People do press or conferences for a few reasons: To promote their business/selves, to help a cause they care about or as a favor to a friend. Some conferences do a terrific job of allowing to 'meet the speaker' but even then, it isn't the time for a pitch
57. Upon a career change. When an exec takes a new job, think about the amount of work they have in front of them. Every other sales person has the same triggers, read the same trades, and call them at the same time. We get lost.
58. After a partnership with a competitor. A company goes through a process choosing a vendor/partner, gets approval for that partner, and is now on the hook for their success. Think about the optics being displayed here. Are we rooting for them to fail? B/c that's what it sounds like
59. https://www.dhirubhai.net/feed/update/urn:li:activity:6796442649768402945/ https://twitter.com/tonyknopp/status/1390681660757135361
"Do you want to be rich or do you want to be king"- The Founder's Dilemma. Scale requires help. Great help. Great help will want to share in the bounty. Keeping it too tight to the vest has the potential to really hurt growth. Giving out too much?....well that hurts too- trust me, I learned that one the hard way early.?
60. Nearly everyone wants to lead- but they don’t want to do what's needed to BE a great leader. We must constantly expand our leadership reach. Read. Volunteer to coach. Get exposure to leaders outside of our direct boss, teacher, coach, parents. And make absolutely certain our leaders are doing the same. Otherwise, bad habits compound and spread like a virus. If we're not looking outside our experience, we'll never be great leaders.
61. 50 CEOs were asked: Q) When should we let go of someone we have questions about? A) The moment the question is first asked. The biggest problem entrepreneurs have is terminating people. It's hard. It sucks. And it is always our fault. However, the most common feedback after the hard choice: "Should have made the move sooner." The only thing worse than making a bad hiring decision (for everyone), is letting it continue.
62. https://www.dhirubhai.net/feed/update/urn:li:activity:6799001895986970626/ https://twitter.com/tonyknopp/status/1393238306725404675
Margin is directly tied to value and pricing is a trade secret. Learfield IMG College made news when Sportico released their net profit on a number of deals. Learfield fought the release of the info citing trade secrets. They're right. The ability to provide value to partners and run a growing business is as difficult as it sounds. Protect your financials to protect your customers.
63. Stay in your lane. Chasing the shiny thing, when outside your core competency, slowly kills companies. An example: After years of misplaced application of the blockchain to live events*, it has found a home. Specific collectibles which have a high counterfeit rate benefit greatly from blockchain. There's $ to be made in the NFT 1.0 world, just don't take your eye off the ball to chase the gold rush.
64. Never have any important interactions without a lawyer. Ever. Finished Cialdini's follow-up to his best seller Influence (Pre-Suasion). The amount of false admissions of guilt is stunning. Never enter any combative situation without a lawyer in your business. Terminations, high stakes negotiations with customers/partners, or M&A talks. You think Learfield's expensive? Try these convos without counsel....
65. How to be the #1 SDR.
A career in sales in turbocharged by being the #1 SDR. In this week's article and commentary, we share ten tips to be the #1 rep:
66. Lights
67. First Impression
68. Win the "swim-off"
69. Deliberate practice
70. Respond immediately
71. Use the playbook
72. Golden hours
73. Ignore SDR social media
74 .Stay the course
75. Read, read, read
Blog post on how to be the #1 SDR: https://www.dhirubhai.net/pulse/how-1-sdr-tony-knopp
76. Three Things I Learned In Saas, Sports, Tech & Live Events https://www.dhirubhai.net/feed/update/urn:li:activity:6804486641730904064/ https://twitter.com/tonyknopp/status/1398407699759452165
How we screwed up our SDR program for over a decade (and counting)
In today's blog post and video commentary we share, in depth, the mistakes we've made in building an SDR program
The five ways - with much more in the blog and vlog:
76. Make room for everyone to succeed - or don't hire them
77. Stop the fight
78. No first impressions
79. Zero turnover from 120 to 730
80. Kill the manager
Hope ya'll enjoy learning from our mistakes….
81. https://www.dhirubhai.net/feed/update/urn:li:activity:6806592434076827648/ https://twitter.com/tonyknopp/status/1400835459396235265
No Shows are a No-No. When I was 22 I no-showed an interview with the Clippers.* I paid for it years later. A decade ago a team exec no showed me. He met with our team last month and asked why we don't work with his firm. It's common, I get stood up often. It ain't worth it though.
82. Endeavor went big on their bid for Olympics hospitality. So did Facebook when buying Instagram, Google buying YouTube and Apple buying Next. Even Ballmer buying the Clippers for $2b doesn't seem so crazy already. Markets are efficient but they often miss transcendent value. Know your worth.
83. Vanity, masquerading as pride, loses. Ben Simmons can't shoot a free-throw. It changes the game. Shaq couldn't either- but he was over 80% shooting grannie style, as Gladwell points out*. My Senior year in HS club a new coach arrived wanting to introduce the back slide to our offense. Only girls hit slides. It was akin to shooting grannie. Buried on the bench, I was the only MB to swallow my pride and try it. Changed the game, our offense, and my prospects completely. We won silver**. Real pride is in the win column. Have the courage to change the game.
84. https://www.dhirubhai.net/feed/update/urn:li:activity:6809124433454882816/ https://twitter.com/tonyknopp/status/1403362141520863233
The best advice seems so obvious it is easy to miss. I blew off so much good advice as too simple in the early days. Youthful ignorance which cost us money. It isn't nefarious - I was focused on the trains leaving on time and "grinding." In reality, I thought I was the exception, like we all do. There is so much nuance to the obvious hiding in plain sight. If we don't pay attention, we miss it. If you do nothing else in the early days, do the obvious.
85. Early hires matter so much more than I knew. We're in a hurry and we need to staff up to meet demand. Slow down. Treat every early teammate like twenty teammates - because that is a conservative number of how many a good hire will impact as you grow. Take your time and never ever settle- especially in the first hires after each round.
86. Keep in touch. A huge regret. Along the way, through all the raises, shows, and conferences, I met a lot of people who I did a poor job of keeping up with. Again, too focused on the here and now. Costly. Our company really could have benefited by me doing a better job of staying in touch with all the panelists and stars I met in the early days.
87. https://www.dhirubhai.net/feed/update/urn:li:activity:6811682390956756992/ https://twitter.com/tonyknopp/status/1405913466263654402
The dramatic increase in the consumer savings rate - from $2.7T to $4.6T- is leading live events companies into a new "Roaring 20s," at least that's what they're pitching to investors and financiers as seen in the below linked Vivid Seats LLC pipe deck. The plan calls for 2x-3x as many live shows in the coming 18 months which, if bought, would normalize the savings rate. It's a spring for market share we're all about to watch.
88. Live events are rushing back and staffing up quick. It's a stampede. Hiring managers, remember the experience from the other side. When they didn’t call us. When we couldn't get a chance. When we didn't have a way in and tried our best with a cold outreach. Return calls. Return notes. Have the courage to give feedback. Don’t leave people waiting by the phone. Help. If even for self interest - you never know where they'll end up.
89. "It's easier to fool people than to convince them they've been fooled" - Mark Twain. If around long enough, you'll lose an employee, a prospect, a deal or a partner to dishonesty. It's best to take time working to "unfool" them as nobody likes to admit they've fallen for a deception, at least not right away
90. https://www.dhirubhai.net/feed/update/urn:li:activity:6814194313044615168/ https://twitter.com/tonyknopp/status/1408431659020558344
The?San Francisco Giants?are in first place thanks to cast of pitchers having career years. How? And how can we do this in our business? Get everyone doing what they're best at and clear off the rest of their plate. Very similar to what Jobs did when he returned to?Apple?with the iMac clearing out other products.
91. "We're not looking for a team full of exceptions" - Kirby Smart in the early days of the?The University of Alabama?dynasty. The Tide were getting pressure for not recruiting some media darling recruits. That pressure grows in the early days, especially in start-ups. Exceptions and exceptional are different things. That pressure was very real for us.
92. As some of us return to the office: Nobody likes accountability but everyone likes winning. No matter how many surveys tell us we all, and our staffs, don't want it, we can't win without it. When leading a bible study for 10 years, that weekly stake in ground made me get better even when I didn't want to. Next thing you know, you'll have years of three things to share with your loved ones.
93. https://www.dhirubhai.net/feed/update/urn:li:activity:6816737952882933760/ https://twitter.com/tonyknopp/status/1410986707801886721
Headcount comes last. When things start to go well, your team will have a new kind of fear - "how do we keep up?" Often, the first reaction is headcount. And that's okay. Just be careful. Headcount is the most expensive, most permanent, and often least efficient answer.
94. Get you a hype man! A good friend went through a job change at the worst possible time- during a live events pandemic shut down. Like all of us, as the time piled up, they started to doubt. We spoke a few times as they were considering jobs which, imo, were way below their talent. Got a call last week about their new gig - which is the right gig. We all need ambassadors of Quan, especially when it seems dark.
95. We're a number too! The other day a close friend/vendor stated they wished they had the certainty we have as a founder/CEO. Had to remind them, as I do the team often, everyone has superiors. Entrepreneurs, once they raise capital or rely on a bank, are easily ousted and often have many who can enact the process. Get used to the lack of certainty- it's the only certainty in life.
96. https://www.dhirubhai.net/feed/update/urn:li:activity:6819274392418316289/ https://twitter.com/tonyknopp/status/1413514511907102730
The Three Most Common Mistakes Entrepreneurs Make:
Know-It-All defensiveness. It's our baby. I get it. I was the same way. But being defensive will cost you money. Mentors don't bother giving advice to know-it-alls and the overly defensive as it is likely ignored. Know it alls have trouble adapting, a key attribute to a good founder, and make poor leaders.
97. Taking advice from the wrong people. In the past decade, being an angel investor or mentor has gotten sexy. It is the "actor/model/dancer/whatever" of the business world. Now everyone wants to do it, actual tangible experience be damned! An easy way to pick the flame outs is to see who they're taking advice from and who they're throwing options at. Successful people who haven't been entrepreneurs usually know very little about....being an entrepreneur.
98. They partner with their friends. I did it too. It's nice and can work. But do you know what works better? Partnering with the most qualified person at that discipline. It was the #1 piece of feedback we got in our seed raise, on which we had a number of strong offers. They were all right. We were wrong. When we start the first one we usually have pretty small rolodexes, so we all fall into the trap.
99. https://www.dhirubhai.net/feed/update/urn:li:activity:6821819537118392320/ https://twitter.com/tonyknopp/status/1416056060276711425
Playing not to lose is one of the most common mistakes we make when starting a business or career (and, recently, in Euro 2020).
Three ways playing to not lose hurt our business:
99. Hiring. We take the safe hires over those with higher upside. The candidates from the big names who'd "done it before" over the most talented bc they're the most impressive to banks and investors.
100. Customers. When playing not to lose, we let customers dictate terms to try to win a deal where we all lose. Customers failing to achieve goals with our products is worse than losing the sale. "We fix $5 haircuts" is a much better strategy - though difficult in the moment.
101. Careers. We give up too much upside to 'guarantee' unneeded downside protection. Nobody gets rich on salary, but it's the most over-negotiated point. It costs us money and happens way too often. If not betting on oneself, why should anyone else?
102. https://www.dhirubhai.net/feed/update/urn:li:activity:6824361133521158144/ https://twitter.com/tonyknopp/status/1418598010129313793
Starting a growth business is high pressure. Someone on your team will be hit with anxiety and stress. I was in 2008. It feasts on high performers and uses their drive against them.
Six things I learned and how it can help your business.
102. Get the right help. The wrong people lean on drugs first, quick fixes and unproven theories. Find an expert in ACT and trust nobody offering a quick fix
103. Stop thinking it is unique or different. Millions have the same struggles. Recovery and a normal life is very doable, no matter how far away they can seem.
104. Be patient. It takes time to understand and move forward
105. Drugs are a last and final resort (*they are helpful to many). The vast majority can recover successfully without them though they are usually quickly prescribed. Help explore other avenues first.
106. Know it isn't permanent. The hardest part is finding stories of those whose lives panic and anxiety didn't change. They are out there by the millions
107. Talk about it openly. Life altering anxiety is so much more common than most think. I can't count how many staff, peers and friends have come to me feeling defeated by it. And it's often the high performers. If you don't have any experience with it personally but are a leader, learn about it. It will help your business and save you money.
108. https://www.dhirubhai.net/feed/update/urn:li:activity:6826777345081401344/ https://twitter.com/tonyknopp/status/1421013175370018819
It's all fake! And it works. When we were growing, PR companies called us to "pump up our Glassdoor or Yelp reviews." Yet it is cited by all our new hires. Getting onto the NYT Bestseller list costs ~$250k. In a bet with a friend, I pumped views on a past three things by 1000 in ten minutes - for 4 dollars. As Kahneman points out in "Noise" - it doesn't matter. We like what others like, even when totally manipulated
109. If successful, your business will end up on a "build or buy" list. Every step we take from day one, in all departments, impacts the outcome. Work backwards from that day for clues to make it so valuable it ain't worth copying. We get those calls, and threats, almost weekly now.
110. After years on the bench, I finally made it into a big match in May 1997. I had to go all in. Shouting. Demanding the ball. Taking chances. I hadn't in a big match, ever, but this was my chance. I was uncomfortable but playing well. Out of timeout, an a-hole teammate commented to our all-world player behind my back chuckling "who is this guy." I froze in self doubt. Until he answered "I don’t care if he plays like this. I like him." I heard it. Validation. I didn't sit again. If you're a star, one sentence can change a life. What a terrific gift. For a higher leverage example, check out Ronaldo and Moutinho in the 2016 Euro Finals when Cristiano pumped up a nervous Joao. That's leadership.
111. https://www.dhirubhai.net/feed/update/urn:li:activity:6829320625455296512/ https://twitter.com/tonyknopp/status/1423557084348510213
Advisors are either exponentially additive or empty calories.
Three things we'd advise given our many mistakes and wins with advisors
All equity requires an investment- even if very small. Even advisors who are getting paid. It's a controversial take but anyone who is working with you without skin in the game is a vendor, not an advisor. There is plenty of room to bring on vendors who can help you.
112. Start right away. Reach out to 5 potential advisors every week until you have 5 good ones who will give you at least one uninterrupted hour a month minimum.
113. Define the advisors. Are they operational, business development/introductions, vanity/influencers or personal care advisors? Make sure you have a balance of each. 5 sexy advisors looks great in the press release, but they won't help your business get where it needs to go.
114. Take responsibility for communication. They are part of the team. They get all company updates, invites to team meetings and even the informal meet-ups. Too often entrepreneurs think it is on the advisor to be proactive b/c they have shares or are getting paid. That's backwards. Keep them involved and they'll offer more value. Remember, great advisors are usually very busy.
115. Listen. We chose them for a reason. Even if, in the moment, we disagree, it is important and honest feedback. I've had a number of those calls over the years.
116. https://www.dhirubhai.net/feed/update/urn:li:activity:6831869958843191296/ https://twitter.com/tonyknopp/status/1426328702028193794
The loyalty of an entrepreneur is hard to explain but easy to see. It is a club that can't be bought into.We drive out of our way for Chevron gas. We wear adidas and Under Armour gear. We pull for the teams we partner with. We use Verizon, fly Jet Blue and United, take Uber, stay at our partners properties and buy equipment from CDW… personally and professionally. We take calls from other entrepreneurs and always make time for them. When a company trusted you when you were scraping to get by, it's just different. When you're at or near zero, the people who keep you going draw a loyalty that lasts a lifetime.
117. Take some risk off an entrepreneurs plate in the early rounds. With zero off the table they'll negotiate more powerfully and it will draw in those who could be terrific founders from the certainty trap of other gigs. Investors have a portfolio for their time. Founders don't. When on the other side, I am insistent on it even though many disagree. I've heard both stories. IME - underpaying leads leaders to be more fearful - not more fearless.
118. What they're saying about others when they ain't around - is what they're saying about you when you ain't around. Crazy how few have this figured out. Best to stay away. Just know that when you do, it adds fuel to their fire and they'll talk about us more. Plan accordingly
119. https://www.dhirubhai.net/feed/update/urn:li:activity:6834346730205646848/? https://twitter.com/tonyknopp/status/1428582008460959747
If you're going to lead a growing company, you're likely going to work with the media. Here are a few tips on how to work with the media to help your business.
120. Be as helpful to them as possible. Even if you're not quoted or don't get what you want, become someone they know can help them. Make introductions. Even (gasp) give up your coverage to someone better suited to opine. Play the long game.
121. Ask for questions in advance. Type out your quotes. Read them during the conversation and send them when done.
122. You're getting a one line quote. Maybe two if you're lucky. Even though you may talk for 20 minutes. Remember, it's their story, not yours. Newbies are always shocked when they do a 15 minute interview in front of the camera and 30 seconds gets used.
123. Do. Not. Babble. From the 48 Laws of Power: when uncomfortable, people say what they shouldn't. Stick to the notes.
124. Never ever bend the truth, lie or leave anything out. Journalists work hard to earn their customers trust. If you cost them that, you're blackballed (and rightfully so).
125. Don't schill the company line. Many do. It's makes for a boring story and you're, again, off the list.
126. Don’t rush. Sometimes they're on a deadline and you can't confirm what you need to in time. I know, it's free exposure! Unfortunately, sometimes the timing just doesn't work out
127. Respect the relationship. If someone calls asking about a story and you're a source for them then you get another call from another journalist on the same story, disclose you've already been a source.
128. In a new relationship, don't say anything you wouldn't feel comfortable being public, no matter how much reassurance you get. Save those for the journalists you build a relationship with and trust.
129. https://www.dhirubhai.net/feed/update/urn:li:activity:6837029203804848128/ https://twitter.com/tonyknopp/status/1431266423909675010
Don't lie in an interview. Ever. Like volunteering when it's been 4 years, saying you played football at a local college, you were "top 3" on the sales standings or that you currently have a VP of sales gig and live in the city when you were terminated 8 months prior for getting trashed on a company booze cruise and have been living on mom's couch in jersey (none of those things are bad or disqualifying. Lying though? That is). So how to spot the liars? You can't call their current employer. But you CAN once they start with you. And it's worth it. Can't have dishonesty on the team. It's a killer.
130. What happens outside our walls impacts what happens inside our walls. And we must be aware of how we can use it. Great quote by Tom Brady: “Life,” Brady said, “is about always changing and adapting to different things. Today, the world wants to blame, and shame, and guilt, and fear everything all the time. We would never teach our kids that, you know? We would never say, ‘This is how you’re gonna get through life the best—you’re gonna blame everyone when things don’t go right.’ Or, ‘I always get it my way but you should never get it your way.’ It’s not how to live a joyful life." Interview is worth all of our time- linked in the comments
131. Make the best of bad choices. Six months ago I heard screaming from?upstairs. Preparing for the worst I ran in to find our youngest daughter had cut her own hair. The morning after the madness, I asked her why. "I wanted to put it on my unicorns to make them beautiful." Mom, understandably, threw the hair away the night prior. I fished it out, found some tape and here we are 6 months later. Bad judgement happens at your company. Embrace the good in it while using the bad to grow together.
132. https://www.dhirubhai.net/feed/update/urn:li:activity:6839555834092105728/?commentUrn=urn%3Ali%3Acomment%3A(activity%3A6839555834092105728%2C6839561548168613888) https://twitter.com/tonyknopp/status/1433795416403767299
133. A change hack. Change is always resisted internally and externally. Our job, when building a new business, is change. Our team's careers, our customer's processes, our partners status quo. Those who implement change are well-rewarded. A quick tip: Set a check point and commit your word to it. 'This will be and feel like a lot of change, however at month six, we're going to celebrate our biggest concern of the moment wasn't even on the list today.' Then execute. If we can, we build loyalty with our teams, our partners and our investors.
134. Silver bullets are so enticing, but we can get lost chasing them. We often hear stories about the outlier growth stories and how they found a silver bullet. Most businesses, including the wild successes, are actually built by a lot of tiny wins. Projects, programs, incentives and campaigns which sometimes get overlooked b/c they don't feel like they "move the ball enough." Add up all those yards, however, and you may just end up sitting on a big business with a huge lead.
135. "David took a rock to a sword fight." I love this song lyric for so many reasons. I have a meeting every two weeks or so with someone considering starting their own business and walking away from their security blanket. A common piece of advice: When you take a rock to a sword fight, you get mocked. And that doesn't sound so bad until it impacts your family and your friends. Trust me, it's awful what people will say (and still do)…and we hear and feel all of it. Your loved ones will be impacted.
136. https://www.dhirubhai.net/feed/update/urn:li:activity:6842092990316601344/ https://twitter.com/tonyknopp/status/1436330902431227918
"The best players are "7's" on the scale of 1 being most coachable and 10 being most stubborn." A high profile juniors tennis coach shared with me a year ago and it changed everything about how we see our team and prospective talent. In Isaacson's "Innovators" the author suggests "being stubborn and focused creates the best innovations." The coach elaborated further: "Overcoaching saps the kids talent and they don't learn themselves. They get stiff and don't explore what they're capable of" - sounds like exactly what happens in businesses. Be stubborn to who you are, and who your team is, while picking up what's valuable along the way. Too much emulating others and you'll lose the authenticity that makes people great.
137. If nobody is taking ownership, nothing is going to get solved." Jocko Willink shared this nugget of simplicity when discussing failed operations in the middle east. Easy is easy, simple is hard. Everything requires an owner. Everything. From who is responsible for the coffee machine to who is running the most important projects. I know, I know, it's obvious. And obviously overlooked often.
138. In enterprise tech, everyone has the best stack. I haven't met a vendor or company who believes otherwise. Let's start by assuming the tech is stable/scalable - as it is easy to diligence - and focus on the core differentiators. Once we reach scale in the wild, we can all start espousing the best tech. Until then, focus on differentiators around the tech - as most tech breakthroughs are copied pretty quick. And much easier than we'd like to believe. And budget to refresh your tech often - many don't.
139. https://www.dhirubhai.net/feed/update/urn:li:activity:6844653582520848384/ https://twitter.com/tonyknopp/status/1438889892679872521
Coach. Don't play. On top of my to-do list every morning, the first entry is bolded: "Coach. Don't play." For the vast majority of high achievers or entrepreneurs, letting go of what their great at is the biggest hurdle - especially when times get tough. When the code isn't done, the pipeline isn't full, or the CS metrics are dropping, we do what hall of fame boxing trainer Freddie Roach says everyone does "Once they get hit in the ring, they’re going to revert back to what they are." You, and your team, will do this often. If we can't level up and coach, we'll never grow to where we want to go.
140. Never lower your bar. Let others. Talent is hard to come by these days. It's not the first time we've seen it. Numbers are staring us in the face and the talent pool has more leverage than ever. We have to give in to the pleas and lower our bar right? Or we'll left behind? Do NOT. We did once, it went as Steve Jobs said it would (from a past three things) "The B's hire C's and then the bozo parade takes over." Letting others make bad decisions is a win. It's hard to see in the moment - but trust us.
141. "Who's (expletive) your wife? If you're not, who is?"- Frank "Ponch" Poncherello in CHiPs. Went through a recruiting process over the weekend for a family member. Incumbents lost some talent they didn't expect to lose. Why? It was simple: they didn't give enough love to the returnees vs what others were telling them while focusing too much on the new recruits. (*didn't apply to us). If you're not telling your great ones they're great and rewarding them….someone else is.
142. https://www.dhirubhai.net/posts/anthonyknopp_three-things-sep-24-2021-three-easy-phrases-activity-6847178698219753472-JZSV https://twitter.com/tonyknopp/status/1441415329314328588
The best one liner leadership advice we've gotten from mentors smarter than us. I hope they work for you like they do for us:
143. "Help me understand." It takes managers a loooong time to learn the vast majority of mistakes and politics aren't actually nefarious by intent. Took me years. Most managers approach lies, stealing, mistakes and politics with: "Why did you do X?" It is similar to a bad coach barking "what are you doing?!" at a stunned kid. Try to understand intent first. I'm still surprised at what's uncovered. (Spoiler: I learn over and over my assumptions are very often wrong). Even when the intent was nefarious, this approach gives us signals to help avoid repeating in the future.
144. "As opposed to what....?" Complaining is a necessity in business and in life. We all need to dump our baggage on someone. Sometimes new founders are so personally hurt when they hear complaining. Don't be. It's normal. Work with your team to find solutions and teach them when and where it is okay to complain. An easy example: "Yes, we may not like X, but as opposed to what we were doing is it better?" It often leads to the understanding and agreement the changes are necessary and, in some cases, they come up with better ideas.
145. "Say OK and extend the play." In most scenarios, more information is helpful. When in a tough spot, it's always easy to answer simply with "ok" and see what comes next. I'm shocked at how often this works and changes the conversation. It's a free timeout.
146. https://www.dhirubhai.net/feed/update/urn:li:activity:6849712376657399809/ https://twitter.com/tonyknopp/status/1443951440406351877 ?
TicketNetwork hired a banker and is going to market to sell. The live events industry will watch closely how they're valued - tech? Marketplace? Data for gaming? There will be some positioning jiu-jitsu to try for a recurring-esque multiple TN has a lot of data, but outsources quite a bit too. Personally, I think they find someone to overpay.
147. Teams don't see the softness those in the know are seeing in the secondary ticket market. Publicly, "everything's great." But in private, those at the controls are seeing some alarming signs of weakness- much worse than anticipated. There was a saturation problem before Covid and it didn't magically go away overnight. Covid as "the great accelerator" is holding true - events which were doing well are doing great post covid. Those which were?struggling….it's about to accelerate and get worse.?
148. There is opportunity for the hustlers - Right Now. Talked to a friend who has raised more for their fund in the past 3 weeks hitting the road than the previous 10 months WFH. The SBJ conference was 1/5th the size it has been in years past. And what an opportunity it was for those in attendance. Meetings and facetime never easier to get with execs. And yet, so many stayed home and missed it. Hope that continues =)
149. https://www.dhirubhai.net/feed/update/urn:li:activity:6852253628661690368/ https://twitter.com/tonyknopp/status/1446490583032160262
We've all had times in our careers or, for entrepreneurs, in our businesses, of intense doubt or bad news which can feel like rock bottom. Here's what not to do, both from experience and those we were saved from by mentors:
150. Never make decisions in an extreme state. Either way. We're human. We have emotions. Sometimes they swing one way or the other a bit extremely. Add stress or travel to a lack of sleep, a cold, and some crappy weather and we can find ourselves in some rough headspaces no matter how level we are or how much meditating and mindfulness we practice. Every psych book out there will tell us - do not make important decisions when too far in the dumps or in the clouds. Recognize you're there and follow the playbook. Big decisions wait for more stable days.
151. Map the future out once then move on. It's easy to get into a forecasting hole where we stare at numbers. I did it for years. The amount of hours I spent laying out different scenarios just to stem nerves and find some certainty I'll never get back. Spend at most one hour a week to indulge growth fantasies and doomsday scenarios. Then move on.
152. Set a date in the future to make decisions. For the vast majority of us building something great takes a lot of time with a lot of ups and downs…..and dog days, and boredom, and fear, and and and. When you don't believe - and you won't often- keep moving. Set a date in the future, far enough out - at least six months, and just swim to there. At that point, we can evaluate and make decisions. You may surprise yourself.* I spent my first week at StubHub moping in my room. What a waste. Once I got to it….we had a lot of fun.
153. Know it's okay. It's okay for it to suck and to be down sometimes, especially in the tough times (2008 and early 2012 for us), for weeks at a time. Trying to avoid these common feelings only puts us in a worse place.
154. Don't try to work harder. 10/11 hour work days are enough. We all think we're superhuman, especially at the beginning, and that we can work our way out of the trouble by pushing even harder. I've seen the end of that road. Trust me, you don't want to - not for yourself or your team. That extra work usually ends up crappy anyways. Scared money don't make money.
155. Accept quitting may be a good option - despite the internet gurus. When racing east looking for a sunset, the first person to turn around is the winner. Once you've done 1-5, if "this" isn't what you thought it was, go do something else. There's no shame in it. Nobody cares as much as we think they do and the ones who matter will be supportive. We only go around the carousel once - it's a tragedy to waste it on something we don't love.
156. https://www.dhirubhai.net/feed/update/urn:li:activity:6854785539632181248/ https://twitter.com/tonyknopp/status/1449022287525466112
Michael Rubin of Fanatics, Inc. isn't "scared" by ticketing - as he said at the Sports Business Journal World Congress this week. He sees it for what it is: clean data. Which is really expensive. Part of what made Apple and Google so valuable was direct access to the consumers using their products - think app store and PPC. With ticketing going fully digital, primary ticketing companies are privy to clean data. Customers have to go through their entrance points to attend the event. That data is invaluable in the gaming, NFT, Merch, collectibles and F&B world. Ticketing is going to get even more commoditized and won't surprise us if it eventually becomes a loss leader - think rooms and drinks to the casino gaming model. Rubin knows tickets. His last CCO was Cole Gahagan, who was CRO at Ticketmaster and now runs Learfield. Fanatics is coming. Either directly or through a massive strategic deal(s).
157. SeatGeek goes public- I met Jack and Russ back in 2009 at a ticket conference in NYC. Their ideas were data driven. More efficiency into an inefficient market. My goodness how that's evolved. They've followed the enterprise b2b2c blueprint - landing customers for validation, getting the big names as loss leaders, and are now hitting a market ripe for disruption (see #1 this week) with a scary team which includes Ryan Smith (Utah Jazz) who has about as good a reputation as one can have. They see vertical integration as something done through multiple vendors - interesting bet. Big market with lots of room. See #1.
158. Rumors are MLB is making a nine figure push to move all baseball teams to TDC. This rumor has been out there for weeks now and we've heard it from a dozen people and some press. TDC tried this in the early 2000's and ran into some holdouts. With the StubHub deal up for renewal and all the new business opps tied to tickets (see #1), wouldn't surprise us if those rumors are true
159. https://www.dhirubhai.net/feed/update/urn:li:activity:6857314674569035776/ https://twitter.com/tonyknopp/status/1451552229127647237
Enemies week.
Here are 5 unavoidable ways we'll make enemies thanks to our business and how to minimize the impact on you and your family
160. Hiring. Unfortunately, we can't hire everyone. As we've discussed here, "hell hath no fury like a lover scorned." As your business grows, the pool of applicants who we don't hire grows with it - and that usually includes people in our personal communities. There will be people who don't like you simply because you don't give them a job they're not qualified for- or even just b/c you've never asked them - and they will be vocal about it.
161. Vendors. Same as #1. We can't choose every vendor. Many who aren't awarded the business will be, let's say, less than kind. Cognitive dissonance is powerful and, instead of understanding why they may not have won the business, it is much more common to turn us into the bad guys.
162. Staffing. Everyone is at a different point in their careers. That leads to different titles, responsibilities, and pay.?You'll be in tough spots. Promotions, raises and terminations. All of them have fallout. We can't promote everyone. We can't pay everyone the same. We can't keep underperformers. And it is all our fault to everyone. It's easier to hate than to understand.
163. Competing. Most all of our competitors will hate us if we have any success. It's human nature and too easy to vilify "the other side." Tell the truth. Be nice. Some will still hate us.
164. Free Stuff! A bonus for those of us who work in an industry with desirable goods. Didn't get that person you barely know free tickets? "A-hole." Didn't give a massive discount so I can buy little Johnny a new phone? "Jerk." You'll be hated by many without even knowing it.?
So what can we do about it?
165. Communicate clearly with our families and loved ones. Its "unfair" these things impact our families, but they do.
166. Don't try to fix it. There isn't enough time in the day to "explain" it all away. Those who need the explanation, they're not worth the time anyways
167. Set guidelines and make them public. We don't get free tickets for friends and extended family. We don't hire friends, family or people in our close community. No exceptions.
162. Find people who have "done this before" to talk to about this hatred. It helps. It really does
168. Appreciate the good and don't fall into the trap ourselves! Let's give everyone the benefit they're doing their best and form our own opinions with our experiences. No matter what others may say about em.
169. https://www.dhirubhai.net/feed/update/urn:li:activity:6859936501141270528/ https://twitter.com/tonyknopp/status/1454172721223323651
Go. Years ago I met a talent exec who was relentlessly persistent while being respectful. He'd say to new connects "what time do you eat breakfast? No added time for you. I'll be at your table at 6am for 10 min." or "I'll meet you when you get off the subway and walk with you to work He's still a friend I refer people to today. The world is re-starting and, in our current experience, people want to meet. Maybe not at the office, but nearby where they work. We signed one of our biggest deals when we simply showed up at the office after the CEO of the company cancelled. If they wouldn't see us, that would have been fine. Instead, the CSO did have time for us and respected the hustle. They're a close friend to this day.
170. Mandatory fun at work can actually do more harm than good when incorrectly applied per Katy Milkman in "How to Change." To copy a great idea, we have to study and understand the 5 w's of the original idea and all of the nuance. Otherwise, what looks like a great idea can ruin your business. Gladwell points out a similar scenario in Talking to Strangers which led to tragedy as police departments in Texas attempted to copy the Kansas City Preventative Patrol experiment without understanding all of the necessary nuance. We used to mandate group gatherings post company meetings and activities. Big mistake. It led to resentment and complaining. If they want to play the game, encourage it! But if they don't and they're performing, let em opt out.
171. The two most stressful times as an entrepreneur? 1) When you're close to zero and 2) When you're wildly successfully blowing out numbers. It's a strange feeling. As one of my co-founders reassured me often in the early years as things started to go well: "We're going to have problems all the time. I'd prefer the good ones." Me too. Just know it's normal and healthy to feel uneasy as things start to take off.
172. Seven lessons learned in Twenty Three years of volunteering:
https://www.dhirubhai.net/feed/update/urn:li:activity:6862497790115885056/ https://twitter.com/tonyknopp/status/1456729218377682951
178. https://www.dhirubhai.net/feed/update/urn:li:activity:6866035497538600960/ https://twitter.com/tonyknopp/status/1460272618397782022
Show rates are way down. We've been seeing the low scan rates all year in company owned tickets (usually 70% of company tickets get scanned at the gate. It's been around 40% in 2021) but it's now clear it's not just companies. In talking to a number of teams this week, Show rate is hurting most everywhere. Per Caps are down for all but the outlier teams - meaning customers are no-showing which hurts parking, merchandise, food and beverage and discretionary spend. If it doesn't recover, these lower numbers could lead to lower guarantees in future deals. Covid is a big part, but there's a concern it's not the only part in an economy where fans have had everything delivered to their homes for 20+ months.
179. More supply is coming. Much more. There could be a tectonic shift in ticketing pricing, selling and distribution starting next year when we have the busiest live events market we've ever seen - 2x to 4x the number of concert tours on the market. Vivid Seats guesstimated $4.6 trillion saved during the pandemic would be spent and tickets would be a part of that spend. So far, it's not happening. Vivid's earnings report just this morning cited "pent up demand" in 2022
180. Yields are down for too many. Season ticket holders aren't recouping their costs. Companies aren't seeing customers willing to attend or even employees as only 28% have returned to offices in Manhattan. Those impacts don't hit teams in the pocketbook directly until renewal season this coming summer ('22). Fans will be asked to renew season tickets while there are more events than ever going on simultaneously. The marketplaces/primaries aren't, and won't, feel any pain for quite awhile as volume will buoy their businesses. But they aren't insulated either, their conversations are just a little further out.
181. The next generation doesn't want to work in sports. Spent the week talking to a number of teams, leagues, venues and sports recruiters. In the old days, teams could offer less money and more hours to dreamers looking to work for their favorite teams. During the pandemic, a record number of sports execs left the industry for more money and better balance elsewhere. They aren't returning. More importantly, the next generation is far less enamored with the career path. Unlike the old days, where someone like me left a great gig at News Corp for a 4-month part time $10 an hour plus commission job selling tickets for the last place Dodgers, there aren't droves lining up.
182. https://www.dhirubhai.net/feed/update/urn:li:activity:6867477961793249280/ https://twitter.com/tonyknopp/status/1461714894953144324
AEG is changing the name of Staples Center to Cypto.com Arena and investing in a major renovation. No surprise with SoFi Stadium and the Intuit Dome entering the market along with the upcoming 2028 LA Olympic Games. There's a lot of speculation about risk taking these naming rights deals in what some think is?a bubble. We talk to teams all day every day. They're very aware of what happened in the .com bust and the 2008 meltdown, as well as the many flameouts along the way. AEG isn't a new ownership group. They've got decades of experience here. They've papered every kind of contingency plan and have definitely seen Crypto's financial feasibility. In the end, AEG quietly buying back the naming rights in 2019 then selling them for $35m per on a 20 year deal is a master class. Companies who get outsized returns from naming rights are usually from one of two camps: a highly commoditized business or a new emergent and disruptive business. Crypto.com is the latter and they're betting on a trust transfer using AEG's flagship arena to have new crypto traders chose, and trust, their offerings due to affinity and validity. Don’t be surprised if it is highly effective if well activated.
183. Saas CFO's don't know what to do with pricing if inflation becomes a consistent issue for years. Most contracts have escalators and are multi-year, but the industry hasn't adjusted expectation yet. Customers expect to have 2% to 5% escalators which hit either annually or at term (up to 3 and 5 years). At 6%, inflation, longer term deals could have an impact on margins. Once the big Saas providers move, the others will follow.
184. "You have to wobble if you want to fly." I love this one. In James Altucher's book, he tells how the Wright Brothers experience owning a bike shop was a major influence on them being first to fly. The brothers watched kids learn to ride bikes and observed the ones who were willing to wobble, without slowing down, and continuing to build momentum, were the ones to learn fastest. Kids who panicked and stopped at the appearance of adversity, they took much longer. What a fantastic inspiration for those of us trying new things in business. Embrace the wobbles. Keep pedaling. It's the only way to fly
185. https://www.dhirubhai.net/feed/update/urn:li:activity:6875109454573137920/ https://twitter.com/tonyknopp/status/1469346450467213313
Nobody likes the starf**ker. It's the holiday party season and following the example of some before them, many new start up entrepreneurs try to follow the path of 'celebrity entrepreneur.' They spend time only networking with those who are very public. They're snobby to others and follow around those they're trying to get value from like Chester following Spike around?https://lnkd.in/gR7pGJ6r.?The start-up ecosystem has seen this movie before - and I've seen it really hurt some founders reputations and their business. Mix in some humility. Take meetings with those you can help AND with those you need help from. The fake ones, for the most part, get spit out.
186. Loyalty, for the vast majority, is to themselves. Lincoln Riley, the new coach at USC, hadn't even had time to update his social media profile from taking the new job and leaving Oklahoma in his rearview mirror but he found time to slap on some new gear and get to work poaching recruits. We've had "friends" (yes, multiple) literally turn around to compete directly with us. One asked us for a job and advice before going to a competitor. Your back will get stabbed quite a bit. How you handle is up to you.?https://lnkd.in/gGBwk4vF"
187. You'll never see a U-haul behind a hearse. The Egyptians tried it. They got robbed. That's all they got." Take time with family, friends, or even yourself. If you can at the holidays, do it then. If not, find another time. I promise you, there will be plenty of vacations and holidays spoiled by new big customer prospects (I've spent many a 4am on "vacation" working in a rental car in the parking lot), capital raises (twice to us), acquirers (seems to happen every holiday) and even lawsuits. If you find that window where you can slow down even just a little bit, take it.
That’s a lot of things! Happy New Year, brother!
Revenue Generation | Sports Streaming Trends | User-Generated Content | Sports Tech | Career Coaching | Leadership Coaching | Fan Builder | Advisor | Investor | Adjunct Professor | @SportsBizBldrs
2 年Looking forward to diving in and reviewing this post. All the best Tony!