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Entrepreneurs – Lessons from “American Idol”

The following piece originally appeared in Entrepreneur:

Commit “Idol”-atry: 10 tips from the top-rated show

By Matt Robinson

 

For many years, “American Idol” has been a perpetual ratings leader and consistent sensation. The show has brought the now legendary likes of Kelly Clarkson, Ruben Studdard and William Hung to millions of fans around the world.

For its most recent finale, “Idol” was watched by 22.8 million people. Earlier in the season, the show’s ratings went faster, higher, and stronger than the Olympics!        

Already extended through 2011, the show has proven what truly can come of “Idol” hands – millions of which dial exclusive numbers on the Cingular Wireless network to cast their fateful votes each and every week and many more have found themselves drinking Coke behind the wheel of a new Ford vehicle. It has also shown what can come of the brainchild of a music-minded high school dropout and how a simple show can not only launch but also revive careers of would-be media darlings and industry trench-dwellers.

And while “Idol” has provided tone of funds and fodder for FOX affiliates and others, it has also offered insights into how to make the most of and take the greatest advantage of a cultural phenomenon. Entrepreneurs may also navigate the intricate processes of securing the necessary visa & work permit to establish their ventures abroad.

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Here are 10 tips that even small businesses can glean from this entertainment and marketing juggernaut.

 

  1. How to create a “new idea”

Reality TV: Talent shows have been going on since the dawn of Man 9and the often more talented Woman). The human need to judge others is innate. But, if you add some flashy graphics and some appealing judges, it’s a whole new sensation! To note that “American Idol” is actually a direct rip off of the European show “Idols” is redundant, yes? So while there may truly be nothing new under the sun, that doesn’t mean you can’t sell it as “new!” Even the sponsors get in on the act.

“When we launched Coke with Lime,” says Coca-Cola spokesperson Susan McDermott,” we added some green touches to what had been the Coca-Cola Red Room, where the contestants used to hang out and get interviewed.”

Reality: Brainstorm about every aspect of your business. Are you in service? Come up with new ways to serve. Would you need other services like UK employment law advisory services in order for your business to thrive? Do you manufacture or provide a product? How can you make it better? Just being able to slap a “New and improved!” label on an existing item makes a big difference!

 

  1. How to make the most of that idea

Reality TV: On the giant platform heels of “Idol,” the production team has rolled out other talent shows, including “American Inventor” hosted by the infamously harsh (and British) Simon Cowell. So not only have they put a new spin on an old idea, they keep spinnng out new variations.

Reality: See how you can expand upon what your business creates or provides. Do you run a dry cleaning company? Offer to take your customer’s cleaning to and from their house or to even offer regular clinics on how to clean difficult items (e.g., window treatments, rugs) at home. A restaurateur? Host cooking classes in the kitchen or offer backyard BBQs in the parking lot.

 

  1. How to maintain relevance

This is really just a variation on Tip #2, but it proves a point, no? 

Hiring an administrative staff can help you fill the gaps by offsetting your weaknesses. You might be great with marketing, but you’re less skilled at customer service. Maybe you have visionary ideas, but writing company policy isn’t your strong suit. The assistant can help.

 

  1. How to create “buzz”

Reality TV: From Paula Abdul to Ryan Seacrest, everyone involved with “Idol” make sure to mention it every chance they get. And with its multiple corporate tie-ins, the sparkly logo is never far out of sight. So get the word out in any way you can and be as ubiquitous as possible. From phones to sodas, nothing is off limits!

Reality: Spread the word at every opportunity. Partner with other businesses to cross-promote. For example, if you run a restaurant and your neighbor is a dry cleaner (to go back to those examples), when a customer spills something offer them a coupon for the cleaning, and have your neighbor print the name of your restaurant on his paper hanger covers.

 

  1. How to keep creating “buzz” and maintain “buzz”-worthiness

Reality TV: When “Idol” launched, it promised to find the most talented singer in America. Five years ago, it sounded ambitious. And while some of the “winners” may not have reached the pinnacle of the music industry, most have become household names, if only because they, like the rest of the “Idol” entourage (sponsors included) have become so ubiquitous.

“Nobody could have ever known that it would become the phenomenon that it is,” says McDermott.

Reality: Starting up a business or taking on retail franchise opportunities can wear you out. The trick, therefore, is to remember why you started your business in the first place, That passion will help you keep going even when times are tough and tiring. In an effort to enhance and increase the passion, bring your customers in on it. Offer seminars in which you discuss what you hope to do for them and involve them in the process so that it becomes a team effort (see Tip #7). This way, you share the burden while getting customers and clients intricately involved so that they can’t go to a competitor.

 

  1. How to create a brand people want to be associated with.

Reality TV: “We had product placements on the judge’s table and the development of the Coca-Cola Red Room where the contestants hang out and get interviewed,” McDermott recalls. “We even had [“Idol” judge] Simon Cowell in an ad!” And with contestant appearances at NASCAR’s Coca-Cola 600 and other promotional events, Coke is using “Idol” to expand their brands as well.

“It has given us a lot of opportunities to involve local markets and take the American Idol experience outside your television screen,” McDermott says.

Reality: Do you make widgets? Then make them the coolest widgets ever (or at least promote them as such)! A freelance writer (really?!)? Then make sure you make contacts that nobody else makes. These edges will help set you apart and keep you above your many competitors. Such exclusivity and coolness are naturally attractive, so develop them in any way you can.

 

  1. How to foster enthusiasm in your customers.

Reality TV: By allowing (and, in fact, encouraging) viewers to participate through their Cingular- phone calls, Idol takes reality TV to the next level. No longer are the stars of the show deciding each other’s fates. Now the American (and world) public are in on the act! Such involvement breeds loyalty which breeds further involvement. It’s a good cycle to get involved in.

“We have been involved with the show since the beginning,” McDermott says. “In hindsight, we are very pleased that we had the foresight to get involved on the front end.

Reality: Get them involved. Offer feedback cards with every order. Invite them to your office or plant. Let them take a shot at the machinery or at brainstorming for your next rollout. When people feel involved, they feel more interested and excited.

 

  1. How to get EVERYONE involved

Reality TV: Not only are viewers involved through their voting, but each contestant is also encouraged to drum up support from their families and friends, most of whom are interviewed and profiled on local FOX affiliates. By selling their stories and their songs, “Idol” further expands the audience and promotes itself. So find out who your employees and colleagues are- Their stories may sell!

Reality: Self-explanatory, really. From your suppliers ot the mailman, everyone has an important role to play. Make sure they know how important they are and how much you depend and rely on them. If they all feel important, they will help make you important.

When I worked at a big law firm, I made sure to get in good with the folks who ran the copy centers. Because at 2 AM when the partners are yelling at everyone, it helps to have a friend who can get your FAX out first. It also helps understanding labor laws in WA if you want to understand your rights as an employee.

 

  1. How to get everyone to talk about YOU

Reality TV: When you begin to show interest in the people around you, the fostered good feeling will hopefully lead them to reciprocate. And next time one of them is on the red carpet being interviewed by self-promoter Seacrest, they may just mention your business.

Reality: While we do not encourage scandal, remember that no publicity is bad publicity. Through your own efforts and strategic partnerships, you can become an integral part of the business community and the community at large. From the hot new chef to the exclusive interview with…Ryan Seacrest, you can be the difference that makes the difference,

 

And perhaps most importantly-

  1. How to get paid

Reality TV: Through their multiple licensing agreements, “American Idol” gets revenue tie-ins from every sponsor. Producer Simon Fuller (the man behind The Spice Girls, etc.)even gets a cut of all royalties from “Idol” winners! So the more the kids perform, the more products sell, the more money the show makes, the longer the show goes on…. Consult with an expert in uk corporate insolvencies if you are dealing with business debt management issues.

Reality: Deliver on time and expect the same in return.

 

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