How Marketing Companies Can Keep the Lights On in 2022

Published: Fri, 07/08/22

ADOTAT

Executive Journal
of the Digital CMO

http://www.adotat.com

Thank you for your support -- Pesach Lattin

Sponsor ADOTAT for as little as $500/week to 25,000 C-Level readers!

SCROLL TO BOTTOM FOR NEWS

FRIDAY JULY 8th 2022

The Daily REYD

How Marketing Companies
Can Keep the Lights On in 2022

Venture capitalists are known for taking risks, but the current situation has even them feeling skittish. In recent weeks, VCs have been telling their portfolio companies to plan for a drastic increase in the amount of money they will need to keep the lights on.

Where businesses used to be advised to have 18-24 months of cash on hand, they are now being told to plan for 4 years of runway.

This change in thinking is a direct result of the economic uncertainty caused by the Covid-19 pandemic. While some entrepreneurs believe that this is a gross overreaction, VCs are clearly erring on the side of caution.

It's worth remembering that some of the same venture capitalists who overvalued assets a couple months ago are the ones making these predictions about the future of the startup ecosystem. So while their ability to see the future may be better than average, it's still probably on par with your own. And four years is a long time - a lot can happen in that time frame. So take these predictions with a grain of salt and don't get too caught up in them. Instead, focus on building your business and making it the best it can be.

Here's some ideas that can help you keep the lights on:

Renegotiating with your existing vendors can be a great way to get more favorable terms. Remember, they depend on you, too. As long as they’re reasonable, you may be able to strike a deal. Of course, it’s always important to be respectful and professional when negotiating. But don’t be afraid to ask for what you want. You may be surprised at how receptive your vendors will be.
Payment processors are a vital part of any business that sells products or services online. Without them, it would be impossible to accept credit card payments or transfer money between buyers and sellers. However, like any other business, payment processors rely on their customers for revenue. If you're a high-volume merchant who is processing millions of dollars in transactions each year, your payment processor may charge you a higher commission than other businesses. This is because they assess your risk based on your chargeback rate. If you have a high chargeback rate, it means that more of your customers are dispute charges with their credit card issuer. Look into a new processor if you're paying too much.
If you're spending money on ads, it's important to get the best possible payment terms. With Facebook, for example, you can request invoicing or use a credit card to get net 30 at the end of the month. That's an extra 30 days of wiggle room that can make a big difference. Of course, you'll need to be mindful of your credit card limit, but if you can keep track of your spending, it's a great way to free up some cash flow. There are other platforms out there that offer similar terms, so it's worth shopping around to see what's available. In the end, getting favorable payment terms can help you keep your business afloat during tough times.
As anyone who has ever run a business knows, cash flow is essential to keeping the doors open. To that end, savvy business owners will always look for ways to increase their debt facilities. This could involve working with a factoring company to finance invoices, using media financing to fund advertising campaigns, or taking out a credit card to cover unexpected expenses. In each case, the goal is the same: to ensure that there is always enough cash on hand to meet obligations. By leveraging these different financing options, business owners can safeguard their cash flow and keep their businesses running smoothly.
If you're struggling to repay high-interest debt, you may be able to find relief by refinancing your loan. Debt refinancing involves taking out a new loan with more favorable terms to pay off your existing debt. This can be an effective way to reduce your monthly payments, freeing up cash flow and making it easier to repay your debt. When considering debt refinancing, it's important to compare offers from multiple lenders to ensure that you're getting the best deal possible.
A lot of businesses run on monthly recurring revenue, or MRR. This is money that comes in regularly from customers who have signed up for a monthly subscription. Some companies also have annual recurring revenue, or ARR. This is when customers pay for a year's worth of service upfront, usually at a slightly discounted rate. One way to turn your MRR into ARR is to find a company that will do it for you. They'll take your MRR and turn it into capital, for a commission. This can be a great way to improve your cash flow and get some upfront funding for your business. Just make sure you do your research and pick a reputable company to work with.

So, what do you think? Are there any of these tips that you can put into action in your business today to start generating more cash flow? While it’s important to remember that not every tip will work for every business, trying a few new things and seeing what works is the best way to get started. What are you waiting for?

Pesach Lattin
Pesach@lattin.us

Connect with me on LinkedIn.

The Rundown

At least 10 News Stories you Must Know

1. Elon Musk is looking for a way out of his agreement to buy Twitter for $44 billion. According to sources close to the SpaceX and Tesla founder, Musk's camp is prepared to take "drastic action" after deciding it couldn't verify internal figures the platform shared around spam accounts. If Musk does walk away from the deal, it would be a major setback for Twitter, which has been counting on the acquisition to boost its flagging user growth. Musk reportedly believes that the social media platform is overvalued and that the price he agreed to pay is too high. However, it is not clear how easy it would be for Musk to back out of the deal, as he hastily signed the agreement in April without fully negotiating the terms. If Musk does choose to renegotiate the price or pull out of the deal entirely, it is likely that he will face some legal challenges including a $1 billion penalty that didn't include due diligence. Nevertheless, given Musk's history of renegotiation deals, it is not impossible that he will be able to reach a new agreement with Twitter.

2. On Thursday, Twitter executives held a briefing with reporters in which they gave more context as to how the platform polices fake and spam accounts, and removes such from the platform. As reported by Reuters, Twitter removes more than 1 million spam accounts each day. This is just one of the many ways Twitter is working to reduce harmful automated bots, as billionaire Elon Musk has demanded more transparency from the social media giant.

3. Reddit is launching a new series of collectible avatars, which are artist reimaginings of its Snoo brand character. Users can buy the avatars to use in the app. The first series of avatars will be available starting today, and will include eight different designs. The avatars will be available for purchase in the Reddit app on iOS and Android, as well as on the web. Each avatar will cost $0.99, and all proceeds will go to charity. Reddit has also partnered with a number of artists to create exclusive avatars for their own personal use. These artists include: Chris Ryniak, Drew Wise, Gary Ham, Jerrod Lingerfelt, Justin White, Mike Winklemann (Blamo!), Scott Tolleson, and Thomas Romain.

4. Equativ, an independent ad monetization platform, Thursday announced a strategic investment in Nowtilus, a Germany-based video personalization company helping broadcasters and publishers transition to digital streaming. The move is the latest in a series of acquisitions and partnerships accelerating the company's growth in connected television (CTV). "As Equativ expands its global footprint, we are always looking for new ways to bring value to our customers," said Equativ CEO Ari Paparo. "Nowtilus has developed a powerful set of tools that will help our customers maximize the value of their video inventory and better compete in the CTV landscape." Founded in 2013, Nowtilus offers a suite of video products that helps broadcasters and publishers personalize their content for digital audiences. The company's technology analyzes user behavior and delivers targeted recommendations for individual viewers. "We are excited to join forces with Equativ," said Nowtilus CEO Markus Breitenbach. "This investment will help us accelerate our growth and continue to innovate our product offerings."

5. Pinterest has announced a number of new updates designed to make the platform more shopping and selling friendly. Among the changes is a new Pinterest API for Shopping, which will allow merchants to better manage and customize product catalogs and metadata. This should result in improved product data for customers. Other new features include support for multiple languages, improved search functionality, and enhancements to the checkout process. With these changes, Pinterest is positioning itself as a serious e-commerce player.

6. Amazon has come under fire for bowing to pressure from the United Arab Emirates and restricting search results for LGBTQ+-related products on its website in the country.The company decided to restrict the searches after being threatened with penalties by the UAE government, according to the New York Times which first reported the story. LGBTQ+ rights activists have condemned Amazon for censoring its content in order to appease the UAE government. The move will make it harder for members of the LGBTQ+ community in the UAE to access information and resources about their sexuality and gender identity. Amazon has defended its decision, saying that it is complying with local laws and regulations in the UAE. However, critics argue that the company should not be censoring its content in order to operate in a country with restrictive laws. Homosexuality is illegal in the UAE punishable by DEATH.

7. This week Google is starting to allow mail-order abortion providers to apply for the “provides abortion” label for their ads. Telemedicine providers who mail FDA-approved medications to people looking for at-home abortions previously weren’t allowed to use the label, but will now be able to do so. The change comes as more and more people are seeking at-home abortions during the coronavirus pandemic. Google said that it hopes the new label will help people “find the health information and resources they need.” Mail-order abortions are currently available in 37 states, and the FDA-approved medications can be used up to 10 weeks into a pregnancy.

8. Japanese legal experts have said an antitrust case related to a local restaurant website could change how large internet platforms such as Google, Facebook and Amazon operate in the country, forcing them to reveal the data they hold on users and businesses. The case, which is being heard by the Supreme Court, revolves around a website called Tabelog that allows users to book restaurants and read reviews. The site is owned by Tokyo-based Recruit Holdings, which also owns the popular Indeed jobs website. Tabelog sued Google in 2015, alleging that the US tech giant used its dominance of the search market to stifle competition. Google has denied any wrongdoing. The case is being closely watched by antitrust regulators and legal experts around the world, as it could set a precedent for how internet platforms are regulated. In Japan, Tabelog is one of the most popular restaurant booking sites, with around 10 million users. However, it only has around 1% of the search market share. Google's dominance of the search market means that it is very difficult for new entrants to gain traction. If Tabelog wins its case, it could force Google to change the way it operates in Japan, and potentially open up the market to more competition. This would be a major victory

9.Today Google announced support for Signed Exchanges (SXG) on desktop site navigations. SXG is a delivery mechanism that can help speed up your site and improve Largest Contentful Paint (LCP) by enabling privacy-preserving cross-origin prefetch. With this announcement, SXG is now available on all major browsers, making it a more viable option for web developers who are looking to improve the performance of their site. This is a welcome development for those who are concerned about the privacy of their users, as SXG allows for a more secure way to prefetch resources from other sites. In addition, this announcement also signals Google's continued commitment to improving the performance of the web. As the size and complexity of websites continue to increase, developers will need to increasingly rely on mechanisms like SXG to ensure that their site loads quickly and efficiently.

10. The Federal Deposit Insurance Corporation (FDIC) is reportedly scrutinizing Voyager Digital’s marketing practices after it was revealed that some customers did not understand the scope of FDIC protection for their deposits. This comes as the firm’s ties to the so-called shadow banking system come to light. According to sources familiar with the matter, the FDIC is specifically looking into whether Voyager Digital misled customers about the level of protection their deposits would receive. The scrutiny comes as the firm’s ties to the shadow banking system are coming to light. Shadow banks are non-bank financial institutions that provide lending and other services that are typically associated with banks. However, they are not subject to the same regulations as banks. As a result, they can be riskier for consumers. Voyager Digital is reportedly tied to several shadow banks, including Silvergate Bank and Signature Bank. The FDIC’s scrutiny of Voyager Digital’s marketing practices highlights the risks associated with investing in firms that are tied to the shadow banking system.

The Watercooler
Impress your Co-Workers with these useless facts about marketing

All About Us & Advertising

You're looking for an edge in your online marketing.
Interest: ADOTAT.com is the answer.

Our library of resources has been compiled by some of the world's top internet marketing experts, and it's constantly updated with new information, case studies, and strategies.

We want to help you succeed online - that's why we offer this information for free. It's our way of giving back to the community and helping people achieve their business goals.

What did you think of this email?

Or, tell us in your own words?

ADOTAT.com
7707 White Ginger Avenue
Las Vegas Nevada 89178