The Kardashians: Marketing Lessons for Every Business Owner
The Kardashians may not have any meaningful significance, but it's tough to deny their commercial relevance. The family is a well-oiled marketing machine: when you consider their four television shows, chain of clothing stores, book deals, and fragrances – to say nothing of endorsement deals for everything from pistachio nuts to sneakers, and a wedding worth $17.9 million for broadcast rights alone – the Kardashians can justifiably call themselves a lifestyle brand. As much as we hate to admit it, business owners can learn some marketing tips from the Kardashians. A few key lessons:
Accept lemons, make lemonade.
It’s no secret that the Kardashian family rise to celebrity fame was the result of Kim Kardashian's sex tape leaked in 2007. However, there is a business lesson that can be derived from the debacle. When Vivid Entertainment bought the rights for $1 million and released “Kim Kardashian: Superstar," Kardashian first sued Vivid for ownership of the tape, but was later persuaded to drop the suit and settle with the company for $5 million. Mortfiying? Yes. But profitable? A resounding yes. The Kardashians show business owners that when handed an obstacle, tackle it–it may even be a profitable opportunity.
Keep it in the family.
Kardashian matriarch Kris Jenner has been criticized for “pimping out” her children, but the mother’s shrewd dealings may be a smart move. Of the 10% manager fee Kris takes from her family members’ earnings, daughter Kourtney says, “We’d have to give it to someone else; I’d rather keep it in the family,” and Kim states, “She has this vision for us, and she makes it happen.” In fact, it has been reported that Kris “makes it happen” to the tune of $65 million a year. What can business owners learn from this? When the goal is to build wealth, keep it in the family – all of it.
Talk yourself up.
As Barbara Walters recently explained, the Kardashians are maligned as much as they are beloved because they are “famous for being famous." Regardless, the Kardashians are massive earners because they have presented themselves as important to television, profitable for companies, and valuable for consumers. When Kris Jenner says, "People love looking at the growth of a brand" in regards to her own family, we are also inclined to see them as an established, lasting symbol. What can business owners learn from this? Projecting confidence is the key to success – take it from the Kardashians.
Before Buying a Franchise Identify Your TRUE Investment
Your approach as a potential franchise buyer is to identify the real investment dollars you’ll need to get the franchise to profitability. The initial source of this information is Item 7 in the FDD. Item 7 is a schedule that details the estimated investment in the franchise. This schedule includes the cost of various items, including: the initial franchise fee, training related expenses, rent, insurance, professional fees for legal and accounting services, supplies, equipment, licenses and permits and additional working capital. Depending upon the specific franchise, there may be added categories. When reviewing the Item 7 schedule it’s important to know that franchisors are not required to list every type of fee or expense that might be part of the investment in the franchise but rather the likely investment needed to start the franchise. As you work to establish your investment number keep in mind the words “estimated” and “typical.” Item 7 is a guide, and as such, you should use this information accordingly.
The Phenomenon of Accidental Franchising
Ever heard of the phenomenon of 'accidental franchising'? Check out this article to find out a lot more about it.
What Would You Do with $25,000?
Have you ever had one of those days when you were just kind of fantasizing about what you would do if you had a crazy amount of money? I had one of those a couple of weeks back when I was looking for a new apartment. I decided to go onto an NYC realty site and take a look at what paying an absurd amount of rent gets you in the city. I was looking and came across one for $25,000 a month (and that’s nowhere near the top end) and just had to laugh. Of all the things you could do with $25,000 - paying one month’s rent on an apartment seems pretty nuts to me. But that got me thinking, what can you do with $25,000 - from rational to fun to downright wacky.
