Evil RBPs
Today’s rant: RFPs that are secretly RPBs, or Request For Business Plan. Seriously. I can’t begin to tell you how many RFPs I’ve gotten that basically are asking us to start their business for them. They want to build the next Facebook or Flickr, and want to pay us something like $50,000 to build it for them. I am at a complete loss how anyone could really think this is reasonable.
Ooo oo – and the sister project: the traditional agency driving a new online product for the client, mainly driven by the agency’s desire to appear to understand the interactive realm, insert themselves into the conversation and come out of the whole thing with a case study in their online thought leadership. Except it’s abundantly clear from day one that they really don’t have an idea of what goes into building a successful online community. This is turning into the modern equivalent of the “let’s produce a spot to win awards” syndrome.
First off, if we knew how to build the next Facebook for $50,000, don’t you think we probably would have scraped together $50,000 and built it? Secondly, do you know how much it costs to build Facebook? And maintain it? Dude Facebook spent many million dollars just on servers in the last year. Just the boxes! Most of these RFPs have no idea how on earth they’re going to maintain and grow their site – and get appalled when we imply they may need to spend more than $10,000 a month on growing their site.
And revenue. Man, I know I’m an ‘ad guy,’ but I come from the world of economics and it never ceases to amaze me how many people want to build something without any clear idea how they’re going to make any money, aside from “advertising.” It’s no surprise, of course, that few of these people have actually worked in advertising, much less the media buying & planning side of it, so they have almost no insight into how ad agencies actually decide where they’re going to place an ad. I’ll clue you in – they place them on sites with a large, engaged user base of a specific demographic. Which means you need to obtain a large user base of a specific demographic. Which takes time. Which takes money.
And I know I haven’t coded anything in a good 3 years now (though, man, my textile skills are smokin’ now), but it would probably help if someone on your team new how to write a line of code.
Here’s an important point, which hopefully makes this curmudgeonly post slightly useful: just because you’re building a website for a brand doesn’t mean the business case shouldn’t be thought through. You will be presumably competing with highly-organized companies in whatever realm you are considering dipping your (or your client’s) toes into. They are highly organized, probably have more money than you and probably have a great experienced, highly-dedicated team that are all entrepreneurially aligned to make sure their site kicks your site’s ass. You need to think of it like a business, even if it’s a branding exercise. Because a failed community (ahem, Bud.tv) will not only not help your brand, it could well hurt it.
This isn’t to say some of them aren’t a good idea – we are working with 4 different organizations right now on startup sites that have been vetted by intelligent financial individuals, and have CEOs or Presidents or Founders who bring something significant and unique to the table. And we’re in talks with 2-3 more including one that is driven by an agency – a smart traditional agency that knows what it brings to the table, knows what its strengths and limitations are and knows to partner with people, align everyone, and run the project like what it is: a new product offering from their client.
Oh, and all of them are willing to engage with us to become team members and partners in their success. I find it interesting that the RBPs that are usually least thought out are the ones that are also least amenable to sharing the success.
God, I love my clients. Thank you. This fall is shaping up to be a good time.
