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Monday, October 05, 2009

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I think you should've started with "Hi it's Lloyd calling from Ari Gold's office..."

Our recruiting space is following a natural technology progression - as markets expand and "blue waters" are potentially [supposedly] found, there is a boom in stand-alone applications (ergo Recruiting.com aka "Jobster", Hire-This, Hire-That, etc., etc., etc.)

Sometimes, however, blue waters aren't really blue waters. Michael Porter's 5 Forces shows us that we might think we've found blue waters, but we're really in the same old, shark-infested, red (bloody) waters as everyone else.

But as entrepreneurs, we lie to ourselves and say, "No, it can't be." Yep, we come up with meaningless buzz phrases like, 'Prospect Management System', 'Relationship Tracking Application', 'Community Reinforcement Add-On', etc. to describe OUR technology. Why? Because "it's nothing like the other tools out there."

So what happens is this: The market doesn't know what the hell we're talking about . . . and although the sales reps we hire talk a good game and can keep the attention of the potential buyer (at the trade show) for 3 minutes, they often stop themselves as their eyes glaze over and say, "Huh? What exactly is this technology again?"

Anyway, I'm being too direct and this might come across as harsh to some. So here's the truth: Most new products fail, not just in our space but in ALL spaces, so don't dismay. Yep, there will be a few players that transcend the noise and actually create value. But remember -- sometimes 'success' in crossing the chasm is more about the strategic partnerships and early-market relationships you develop instead of the value your application truly creates . . . and if that's the case, your days are numbered.

Early-market technologies (i.e. "bleeding-edge") often don't work out, so you have to look at the market in somewhat of a pharma mindset. For every 100 new drugs developed, only 1 will be a blockbuster. It's probably why I gave up the early-stage tech life and got into recruiting in the first place :)

P.S. (I won't lie, though - sometimes I miss it because it's a true rush when you think you're about to hit a homerun) :)

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