| Venture capital firms invest only in the most | | | | their cause. |
| profitable segments of any market. If there are not | | | | 3.- PEOPLE IN TOUCH. The best markets are those |
| plenty of customers who are thirsty for your | | | | where customers sell themselves. If your product or |
| product or service, you can forget about any kind of | | | | service delights ophthalmologists, they will tell their |
| leveraged start-up. During the last thirty years, | | | | colleagues during their next conference. If you use |
| merchant bankers have drafted and polished to | | | | such strategy, customers will find you on the web |
| perfection the requirements for investing successfully | | | | without your having to spend much on advertising. |
| in high-growth private companies. Lo and behold, | | | | Investment bankers always search for this factor of |
| those principles happen to be the same as the | | | | "spontaneous marketing" when considering funding a |
| elements of tribal marketing. How come? | | | | new product or service. Tribal marketers often go |
| Like in any business riddle, the answer is already | | | | beyond this level and they actually provide |
| contained in the question: both venture capital firms | | | | themselves an internet forum for customers to talk |
| and tribal entrepreneurs aim at a rapid multiplication of | | | | to each other. |
| invested capital. What are the characteristics that | | | | 4.- PEOPLE IN GROWTH. "How are you going to |
| identify the potential of a business to grow at a | | | | grow your company year after year?" is one of the |
| compound rate of 15% per year and beyond? | | | | toughest questions that a businessman must face |
| 1.- PEOPLE IN PAIN. It is not difficult to sell dental | | | | when trying to obtain funding from a merchant bank. |
| services to someone suffering from a horrible | | | | If your venture is destined to become a one-trick |
| toothache. You are bound to do well if your new | | | | pony, your growth prospects will be too limited to |
| product or service addresses an urgent unsatisfied | | | | justify a substantial commitment from professional |
| need, but there are not that many of those. Failing | | | | investors. Tribal marketers use the clever approach |
| real pain, a strong emotional desire will do. Satisfying | | | | of searching for items that can please their existing |
| entrenched passions is the card played by tribal | | | | customers, instead of developing random new |
| marketing, which is equivalent to the old venture | | | | products which would require massive marketing |
| capital dictum of seeking customers with maximum | | | | efforts. |
| pain. | | | | In essence, the answer is in the method. It is a |
| 2.- PEOPLE IN TARGET. You won't hit targets that | | | | matter of throwing away what doesn't work and |
| you can't see or reach in a relatively efficient way. | | | | focusing on the little cream that floats on skim milk. |
| Before investing in a private venture, merchant | | | | The highest barrier to success in venture capital |
| bankers check if the customers of that business are, | | | | investment is caring too much for a product, to the |
| to a good extent, a homogeneous group. Is your | | | | point of becoming blind to the market. The most |
| product or service aimed at a group that you can | | | | difficult aspect of tribal marketing is forgetting about |
| easily reach, such as trial lawyers, paediatricians, or | | | | what you want and making the effort to understand |
| school teachers? Starting your own parade is an | | | | other people. Mental flexibility is as profitable as it is |
| expensive marketing method. The most successful | | | | demanding. Alternatives might look sweet and |
| tribal marketers find an ongoing demonstration, | | | | comfortable in the short-term, but ultimately, death |
| approach protesters, and sell them T-shirts favouring | | | | ensues through marketing asphyxia. |