What am I up to?
The short answer? A LOT! Seriously, I’m overloaded with things to do. There’s a lot going on here alone at LandlordMax. Lots of things going on behind the scenes, lots that’s already been publicized here through this blog, and a lot extra curricular items as well. Today I’m going to make a list of it all. Mostly the reason I’m writing it here is because I’m asked so frequently that it gets too long to say it all. “Lots” just doesn’t work anymore as an answer. So here goes:
LandlordMax – Version 3.11d
We’re planning to release an updated version of LandlordMax (version 3.11d) later this week. This is an updated version of the main 3.11 version and includes a few bug fixes.
The first and largest is a fix for Windows Vista and user access control (UAC). UAC is a new feature introduced by Microsoft for Windows Vista that is causing a lot of people grief with a lot of software, including LandlordMax. This update is going to specifically address this issue. It’s not a complete solution, we’re working with Microsoft to “properly” code where the database of LandlordMax should be stored on your computer. but for now this will correctly deal with this issue.
As well, this release also fixes a few other minor issues. For example one is a small error in the vacancy report when you have an evicted tenant assigned to a unit at the same time as a “current” tenant (the unit appears as vacant when it has a actually has a “current” tenant).
This update is already finished, we’re just in the final testing phase. I suspect it will be available within the next few days.
LandlordMax – Website Re-Design
We’re working very hard on redesigning the LandlordMax website to make it friendlier as well as better selling. I’ve been reading (and re-reading) a lot about web usability and sales & marketing. and there are many improvements we can make. For example we’re going to move away from using so many colors on the main page to instead using whitespace more effectively.
As well we’re hoping to address many of the same pre-sales questions we continually get. One of our most common question is how to implement re-curring accounting entries (rents, mortgages, etc.). Although the software does a great job of it, it’s not always obvious to everyone (especially if you come from another software and expect us to behave in exactly the same way). We currently have an animated tutorial that walks you through the process but it’s only available in the View new features in version 3.11c. With the re-design all such pre-sales animated tutorials will be available on the home page. Basically we’re doing a lot of cleanup to try to answer as many of our pre-sales questions on the home page as possible (without cluttering up the page). All at the same time trying to make everything easier to do.
We’re also hoping to add a lot more screenshots on the main page. Or at least what we call “shorts”. These are cut-outs of screenshots which showcase something. At the very least, if we can’t put a screenshot, we’ll put a link to one or an animated tutorial, whenever we state something. So for example if we say “Easily show a list of tenant’s that are late paying rent” we’ll either link it to a “How-to” or an animated tutorial.
The re-design is going to happen in three phases. The first is going to be a large revamping of the website, especially the home page. In phase one, we’re not going to really change our shopping cart, that going to be pushed to phase two. I’d rather release phase one sooner than wait for phase two to be done. Why wait? So phase one is all about the home page and the new look and feel.
Phase two will be all about the shopping cart. We’re hoping to drastically reduce the number of choices, go from six choices to one with a few “options” (for example shipping). We’re also hoping to refactor the shopping cart for some future additions and options.
Phase three will be the completion, cleaning up the rest. This includes updating the user manual the FAQ, and so on. Adding a lot of animated tutorials. Basically enhancing the content.
LandlordMax – Version 4.xx
We’re also working on the next major release of LandlordMax! We’re hoping it will be available before the end of the year, at least that’s the plan.
The list of new major features for this version has changed quite substantially since we initially started working on it. For example, we anticipated offering QuickBooks support but that’s been postponed to another future version. The costs to benefit just doesn’t align right now. Integrating with QuickBooks is just too expensive and time consuming as compared to the number of requests. We even looked at purchasing third party components to alleviate this but we’ve only had limited success. We’ve already spent a significant amount of time and money on this feature and its unfortunate to have to postpone it again. I’m just glad we’re able to avoid the “sunk cost effect“.
One feature though that’s looking like it will make it into the next major version is check printing. Although its not official yet, and nor will it be until it’s completed (remember our QuickBooks experience), we’re making some good progress here. Another major feature that we’re pushing for is integration with Outlook. Being able to pull out your contacts, put in new ones from LandlordMax, send emails, etc. There’s obviously more, but for now that should give you an idea.
We also have quite a large list of smaller changes we’re planning to implement. Simple things such as having the lease automatically fill in the tenant’s building for you rather than having to re-input it when possible. In other words many many UI improvements. My feeling is that this version will have fewer new major features and instead it will overwhelm you with sheer number of significant UI improvements. Things that will make your life simpler all around.
LandlordMax – Mac version
This version has currently been postponed. We use to get a lot of Mac requests but recently they seem to have fallen (not sure why). We did have a large push for a Mac version, we bought all the necessary Mac hardware to go forward, and so on. We got quite a ways forward but then we hit a few roadblocks (code and image conversion costs). Nothing insurmountable, but enough that I’ve decided to postpone this effort because of the cost to benefit ratio. I really do like the Mac, I’m actually working on a Mac right now that was purchased specifically for the Mac version. Unfortunately Mac support has been postponed. We just have too many other higher priority items. I don’t have the time to manage an outsourced resource to solve our remaining issues. So for now this is on hold.
LandlordMax – Real Estate Analyzer
On the LandlordMax website we currently offer a free real estate analyzer as a traffic generating tool. When we launched it I mentioned on this blog that I’d like to expand it, possibly offering a more advance paid option (maybe even integrating it with LandlordMax). We’re looking into this.
LandlordMax – Browser Based Version
Probably the biggest item here today! We’ve been really really wanting to do this for over a year now, almost two really! We actually almost started the whole thing as a web application. Anyways, our interest in offering LandlordMax as a web application or online service has been increasing with time as more and more people keep asking us about it; they love the software but need a networked multi-user version.
So far we’ve done a lot of research and prototypes to see which path we want to take. My personal training and experience is with J2EE, so I’m a little biased this way. Before I start a holy programming language war, I’d just like to say that J2EE done right can perform very fast and not hog all your resources. The problem is many people don’t do it right, they often try to over engineer everything which is bad.
In any case, just because I’m J2EE biased it doesn’t mean it’s the right solution for us as a produce or company. The reality is that we’re probably going to build it as a PHP based web application. This decision wasn’t easy, it took a lot of time and effort.
The quick of it was that J2EE let us share the current code base (huge factor). It gives us an amazing path to AJAX support (IceFaces – if you’ve worked with it you know what I mean by how impressive their AJAX support truly is). And I know J2EE very well.
The downside is that if we offer it as a web application rather than just as a service, hosting will be an issue for many people (few hosting providers offer J2EE hosting). We looked at Ruby on Rails and decided against it for this very same reason. PHP removes this very large hurdle (don’t try to downplay it, hosting options are a very important factor). PHP is pretty much available everywhere. We can re-use a decent percentage of our code base (at least the SQL queries which are often times pretty complex to figure out). But what really got me excited about PHP is CodeIgniter and their framework. I’m very impressed by it!
Of course just looking at a framework is not the same as really using it. So we’ve since built 3 small trial web applications. This is where WhichJar.com came in for example.
In any case, offering LandlordMax as a web application is not a small effort. It’s going to take some time. We’re working on it simultaneously with the other items listed here today. It’s going to take some time, no doubt about it. With limited resources choices have to be made. It will be available, and right now my suspicion is closer to 2008 than 2007. But we’ll see…
WhichJar.com
As I’ve already mentioned, we’re expanding our reach beyond just property management software. I truly believe a business should focus on it’s core competency, no doubt about it. I’m a strong proponent that businesses should spend a certain amount of their time and energy on other endeavors to expand themselves. For us, that’s about 10% (1 day every other week) on side projects. This is where WhichJar.com came from.
Right now WhichJar.com is stable in terms of code base. What we’re trying to do is grow its database by adding more Jars. For this I’m looking to outsource the database population. The only issue is that I don’t have the time to manage it as I initially anticipated. So right now it’s moving pretty slow. Hopefully this will accelerate sooner than later.
FindYourWeddingDress.com
Another project that’s about to go live soon because of our policy to spend 10% of our time on side projects. This is a simple site that lets you search for and look at wedding dresses. It’s a large database where you can filter out the information (or browse through it all). The site will not sell anything (other than put ads on it when I get a chance) so it’s really about getting pictures and information of wedding dresses to upcoming brides.
Right now this site is somewhat live online (very small database but that’s changing). It hasn’t been marketed at all because we’re in the process of filling it with real data to showcase to perspective companies/designers. That is to say, we’re seeding it with real wedding dresses so that we can show how it works when we contact companies/designers for permission to display their dresses (and get updated information on their wedding dresses). I believe that if they can see it live they will be interested, otherwise it’s a hard sell.
So right now we’re at the stage of getting someone to populate the database with real data. As it’s still in the “side project phase”, this is moving along slower than any of our LandlordMax efforts. However I’m hoping that by sometime next month we’ll have enough data to start contacting designers.
So please feel free to go and check it out. Let me know what you think.
Online Sales and Marketing Book
And you thought that was it! I really am a busy entrepreneur. On top of all this I’m working on a book for smaller online businesses to help them better market and sell themselves. I’ve started writing it, I’m almost done the second chapter now. I was hoping to allocated more time but the Windows Vista UAC bug I just mentioned has really been taking up a lot of my time. This and some other personal things I’ve had to take care of.
FollowSteph.com
As well as the usual article writing like today, I’ve been looking at ways to enhance this blog. One item I’ve really been considering for some time is podcast interviews. I’ve already lined up one person who’s willing to do a podcast interview with me about his online company (it’s a company that offers a different type of service, so it’s interesting). All that remains is making this a reality (figuring out the details). So hopefully you’ll see that sooner than later.
That’s All Folks
I have no doubt I’m leaving something out, maybe even a few items, but at least this gives you an idea of what I’m up to. Yes, I’m definitely keeping busy and I’ll continue to be busy for some time. But as you can see from the list, there’s quite a lot of diversity in everything I’m doing. And that’s why I love being an entrepreneur!
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Telus Customer Service
A little over a month ago I wrote an article entitled “An Example of Horrible Customer Service by Telus” describing my recent experiences with Telus and my cell phone. Today I’m writing the follow-up of what actually ended up happening.
Many of you may not know this but a long time ago there was a small company called Clearnet that had excellent customer service and I was proud to be one of their customers. I referred a lot of people to them. It didn’t take long for them to grow and get acquired by Telus, another up and coming company at the time. They too had great customer service back then. However today things have changed a lot. Telus has grown into another large telecommunication company and changed its ways. It’s now acting more or less like all the other large major telecommunications company which is unfortunate. I’m only mentionning this because I want you to know that I didn’t always think this way about Telus.
Getting back to my adventure, and without re-iterating it (you can find it here), I phoned them again to get another reimbursement on my second data payment which was coming due. I initially thought it was suppose to be around $300 but it ended up being $430. The good news is that Telus did reimburse that amount because of the precedence from my previous reimbursement and the fact that I completely turned off my internet (data) access. That’s the good news.
Sadly the story doesn’t quite end there. They did admit that they can’t cancel my data plan (even at a penalty) because I bought the phone at a discount (with the data plan). Ok, I can understand this but I wouldn’t have bought this phone or the data plan had I known ahead about the issues I would have faced. So I really lose out here to the tune of about $250 because I can’t cancel a plan I can’t use!
The worse part is that Telus customer service couldn’t help me terminate the data plan no matter what. The problem is that every time I shut off the phone and restart it, the data plan re-activates itself automatically and the phone tries to reconnect! So if I don’t pay attention just one time, I’ll get hit with all kinds of bandwidth charges (approx $12-25/day based on the previous charges). Telus customer service said they couldn’t prevent this, I just have to be vigilant with my phone. What!?! You will continue to charge me for a plan I can’t use and on top of that you can’t disable it from my phone so that it doesn’t accidentally come back on and charge me. I’m not impressed!
This is nowhere near a win-win situation. This is a clear lose-lose. Sure Telus might make some money now ($250 for the data plan over a year). But once my plan is over I will never use their service again. Not only that but I will never refer them. This article and my prior one have already reached a large number of people who will never use them either because of this situation. On top of that as my company LandlordMax grows and the need to purchase more cell phones increases do you think I will use Telus? Not likely. Yes they made $250 today but they lost a lot of money over the total lifetime of their customer (me). Had they correctly resolved this issue they could have made a lot more money. Not only that but imagine the value of my publishing a very positive experience with them on this blog…
Let me push it one notch further and give you an example of the value of customer service. Recently we had a customer that purchased LandlordMax but didn’t receive their license information by email. What happened is that it was sent to a Hotmail email address and was probably incorrectly sent to the junk folder where it was easily missed. On top of that this customer thought they purchased the shipped version rather than the download only so they were getting annoyed when nothing was coming in the mail. Three weeks after their initial purchase they contacted us asking what’s happening as they’ve never heard anything from us. We immediately replied explaining the situation. Our reply doesn’t make it through, same issue.
We do post the following warning on our support page (as illustrated below):
“Important Notice: Some email providers may wrongly filter emails from LandlordMax as spam/junk email and automatically move them to your spam/junk/bulk folder. If you do not receive a response within 1-2 business days, please look into these folders as this is probably what happened. This is currently especially true for email accounts with Comcast, Yahoo, GMail, and Hotmail.”
But not everyone pays attention to this (I can’t blame anyone I don’t always either). So who’s at fault here? The customer, Hotmail, us? Who really knows, it’s not important, it doesn’t matter. What matters is that the customer didn’t get their response from us. PERIOD! So two days later we get an irate email (very understandably). It now appears that we’re ignoring their support emails as well. We reply again. Same issue.
At this point I also personally contact him from another domain, from FollowSteph.com rather than just LandlordMax.com. The email finally makes it through to them. We’ve now established communication. I personally explained what happened send them bookmarks to our prior responses so that they can themself see that we did respond and how.
Through our further communications I also find out that they meant to select the shipped CD rather than just the downloadable version. At this point I could have simply instructed them to send us the regular $15 shipping and manufacturing charge so that we could ship them the CD. I decided otherwise, instead I told them because of all the difficulties we’ve had communicating the least we could do is send them the CD free of charge (whether or not it’s our fault). A simple gesture of positive goodwill but it’s very positively received:
“Thanks so much. I’ll definitely utilize it and refer you business.”
This is how you turn a customer who has had a negative experience into one that really appreciates your company and the effort you go through to help them. Understand your customer and think past today, think about how valuable they are for the total life of your business and beyond.
Telus customer service missed this simple step with me. They instead decided to get the most they could from me today and forget about my value to them tomorrow. This is the not the company I used to know from before. And unfortunately I believe this type of behavior will eventually catch up with them.
And that’s the end of my story. I eventually got reimbursed for all the data payments I didn’t use. I cannot cancel the data plan on my cell phone, even at a penalty (I asked). I also cannot turn off the data plan so that it doesn’t accidentally turns itself back on. I might no longer be extremely upset, but I’m not happy either. I doubt I’ll ever get a cell phone from Telus again, nor will I refer anyone. But at least it’s over.
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Why I Love Being an Entrepreneur
Because everyday is different! It’s as simple as that. You never really know what to expect tomorrow. For example, a couple of days ago I wrote an article about how the downward trend of the USD dollar versus the CDN dollar has affected our revenue. Then today I found out we’re on pace for another record month for revenue! We’ve already beaten last month’s total revenues (although May is not a good benchmark because it’s never been a good month for us). At our current pace it looks very good that we’ll beat April’s sales record.
For a lot of people this would be nerve racking, especially the ups and downs in revenues. For me I really enjoy this. You always have to be prepared for the unexpected. The more challenges you face, the easier it seems to get. And this is why I love being an entrepreneur.
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The Effects Of Currency on Pricing
You would think that a smaller company like LandlordMax would be immune to international currency issues, but quite the opposite is true. You see LandlordMax is a Canadian company where the majority of our customers come from the US. And because of this, the currency values between the two countries, that is the difference between the Canadian dollar (CDN) and the US dollar (USD) has affected our bottom line.
Over the four years since we’ve been in business, the USD has steadily declined in comparison to the CDN. In the past we used this difference as a competitive advantage over our competitors where for example if the USD was 20% more valuable than the CDN dollar, we could then sell the software for about 20% less to make the same profit (assuming the same costs). Although this isn’t entirely accurate, it’s a good enough example for today’s discussion (in reality most of our expenses are also in USD).
Up until today, we use to charge $147 USD and $170 CDN for LandlordMax. Initially the difference between the two currencies was higher, but over time as the USD has dropped in value this difference has gotten closer and closer. Today, we’ve adjusted it to $147 USD and $155 CDN. Almost no difference at all. At this point the CDN and US dollars are almost equal.
What does this mean for our pricing strategy? Quite a lot actually. We no longer have the luxury of using the currency in our pricing model. Actually if we look at just the trend over the last five years in the graph above, we really have to consider the probability that the USD will continue to decline below the CDN. Therefore there are really good chances that our USD price will have to increase. We won’t do it today, but with the next release I highly suspect that we will somwhat increase our prices to cover the currency difference (especially if the CDN overtakes the USD).
The good news is that although our income has decreased because of the currencies, so have many of our expenses. Most of our advertising, server, etc. costs are USD. So although our profit margins have decreased along with the currency, they don’t match up exactly (it’s a much much slower downtrend on a per unit basis). However our margins have decreased enough that I believe it’s time we increase our price to compensate when we release the next major version of LandlordMax Property Management Software. I don’t know by how much just yet, but you should expect to see the price of LandlordMax go up to at least match the currency changes over the next little while.
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Can a User Review Be Considered a Testimonial?
As part of releasing an updated version of LandlordMax Property Management Software we contact all the shareware sites to let them know about it. In the past we used a service by Rudenko with great success. This time however we decided to try their software RoboSoft and do it ourselves. It’s been a very positive experience and we’ll be purchasing it shortly. In any case, as part of testing out RoboSoft I was randomly looking at some of the sites it submitted LandlordMax to verify it actually worked as expected. At about the third or fourth site I saw the following “User Review“:
“Does not limit you to how many properties that can be entered.
Keeps track of everything even tentants their roommates as well as being able to list every appliance for each property (fridge, oven, dishwasher, water heater, furnace etc.) This is the most comprehensive program that I have been able to find to date! For the price it is a bargain. Most other programs that I have looked at have been less appealing and didnt offer as many features/reports (this one generates hundreds of reports including cash flow for each property!!!) The main advantage that I liked is that the number of properties that can be entered is limitless (as many as you want this program will handle the work load!)”
This is a great user review! To me it’s also a great customer testimonial. Is it really though? Should we use it on our Success Stories and Testimonials webpage? This is my dilemna. What do you think?
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An Example of Horrible Customer Service by Telus
I really don’t like to talk negatively about any company or person but today I’m making an exception about Telus (I don’t think I’ve actually ever really done this before). I just finished a good 1-2 hour call with their customer service department about my last bill and I was very angry and frustrated. I know I should wait a day or two to publish this but I’m going to break my self imposed rule because of the insanity of it all.
It started about 3-4 months ago when I bought myself a new Palm Treo 700wx from Telus (one of the bigger telco’s in Canada). It’s a great looking phone that was going to serve all my needs (top of the line). What I need from my cell phone is the ability to talk on it and read my emails (very simple). I still enjoy getting email messages sent to my phone about my daily sales, etc. Nothing too crazy, no more than a few messages a day (summaries, etc.). That being said, this phone was going to be perfect. I got the data connection for 4mb/month for $20-25/month (I can’t remember the exact price). There’s no way checking my emails every 60 minutes would use up 4mb of bandwidth a day, assuming most of the time there’s no new emails and those that do come in are summaries of at most 10-100 characters.
As part of the package I got they also gave a discount of $400 on the PDA bringing it down to $200 (with a three year contract). As well they gave me free unlimited bandwidth for the first three months so I could test out the internet. I was excited to get my new phone.
Within a week or so later I noticed that about a third of the time the person on the other of the line couldn’t hear me when we initially connected. This is annoying to say the least!!! So I went back to the store and they were more than happy to exchange my phone with a new one. Great. The downside was that it was going to take at least a week since they had to order in a new one because they couldn’t just exchange it for what was on the shelve. I don’t understand but fine, I can go along with that since I get to keep the current one in the interim, with calls with no voice and all.
A week goes by and I get my new phone. At first everything seemed to work well but within a month again the same problem. Many times the other person can’t hear me. So I started to surf the net about this problem and it appears to be very common with this phone. No one is doing anything about it, no firmware/software upgrades, nothing. And you can’t really change phones without paying the full price of the PDA (ie. the $400 difference). Not only that but the phone crashes at least once every other day forcing a hard reboot. This is not uncommon. So in the meantime I’ve decided to wait a bit for a firmware update. Still nothing as of today (I just checked).
Now you’d think the story ends here, but this is just the tip of the iceberg, the really interesting part is just about to begin! My three months of unlimited bandwidth have ended and now I’m on the 4mb/month data plan. I haven’t really been monitoring my traffic because its not accurate. I did try to surf on the net when the bandwidth was free to see how it all worked, which was interersting, but because of this I knew that my current bandwidth usage wasn’t indicative of my email usage. So I didn’t even bother to check the numbers. Either way, once the unlimited bandwidth was over I only checked my email every 60 minutes for 1-5 messages a day with 10-100 words of content. Nothing that’s bandwidth intensive. Nothing that should use many megabytes of data month. So you think…
Last week I received a bill for a whopping $406.71!!! How come? Because I used 86Mb of bandwidth to check my 50-100 email messages a month. Yes, that’s right, its not a mistake. I immediately called Telus which led to the conversation I just finished with their customer service representative a few minutes ago. The first thing I questionned was the accuracy of this bandwidth usage. It made no sense at all, 86mb a month to check and read 50-100 emails… He confirmed it, I was using about 4mb of bandwidth a day to check my emails. I told him that was impossible, that it didn’t make any sense at all. At this point I was put on hold for about 10 minutes as he confirmed something with the technicians. When he returned he told me that each email check would cost me about 100kb of bandwidth, regardless if there’s any email or not. This is completely laughable. At those numbers, checking your email and finding there’s none is transffering more data than a complete 100 page MS Word document. How much data does it take to say you have no new emails. Not 100kb.
Not only that, but if that’s true, doing some quick math, it would cost me 50-100mb of bandwidth a month just check my emails once an hour! If you do the numbers, where we know people check about 5-10 minutes in a corporation, that would be about 500mb a month per user (not counting the email content). The math makes no sense, the bandwidth costs would bankrupt everyone. Later in our phone conversation after a few more technical support discussions, he did admit that these numbers made no sense and that 4mb per month should be ample for my usage. But it didn’t really help to solve the issue and took a lot of pushing for him to even admit that.
In any case, after I explained to him several times that this wasn’t possible, he said that the bandwidth was coming from my cell phone. They had the serial number of the cell phone registered. I told him specifically that I didn’t use the net to surf but only for those emails. After about 10-20 iterations of exactly this (how many times can you tell someone you’re not surfing the internet)I finally convinced him to call the technicians to see what kind of bandwidth was being used. He came back and told me that at least half of my bandwidth was directly from surfing the net on Internet Explorer on the cell phone. He called out several dates, including yesterday, the day before, etc. Basically he said every day I surfed for at least 2-3mb on my phone. I told thim this isn’t possible. He then insisted it happened or that someone else was using my phone to do this. The phone is attached to my hip. It’s not possible.
So what’s going on? What’s causing this? I’d like to know to. The technician just kept insisting I was using my phone to surf everyday. So right there on the phone, I removed the check every 60 minutes to see what would happen (and killed all running applications). Now before I proceed, please note that when you connect to check emails, the phone doesn’t disconnect right away, it sometimes stays connected. That’s ok as no data is being transmitted, hence no bandwidth costs. Going back, I just confirmed with him that I had nothing connecting to the internet. Within a minute the phone connects back to the internet. I check with him on the phone the list of active applications. Nothing is open. I manually disconnect. Within another minute or two it connects again. We both have no idea why. I repeat this several times and I can see he’s wondering why but won’t admit it for obvious reasons. I ask him if he can check with his technician if there’s any activity going on right now with the phone to which he strongly insists he can’t. So here we have a connection that’s being monitored, that I can’t close, and he can’t tell me if there’s any data moving back and forth. Great…
At this point I ask him if there’s a way I can force it not to automatically connect, or at least something to monitor what the phone is doing (some kind of utility that will give me something). He says no. The only thing I can do is to either delete the connection completely (and hence continue paying for a service I can’t use) or to turn off the whole phone which is even worse as I get nothing. I simply cannot set the phone to only manually connect, it’s all or nothing.
After a few minutes of this he then tells me he wants to check something and goes away for another 10-15 minutes. When he comes back he tells me that it shouldn’t matter anyways, that no data is going back and forth when the connection is idle. I then remind him again of the 4mb I’m suposedly using each day. He doesn’t really know how to respond, so he repeats himself again about the idle connection. Then he proceeds to suggest that I should upgrade my data plan to a higher more expensive plan to cover my usage where I’ll pay another larger amount per month each and every month. I quickly explain to him that he’s not only asking me to pay for something I’m not using each month, but to pay more for it! To pay another $60/month for something I’m not doing. Not only that it might cover my current usage, I have no guarantees that more bandwidth won’t be used since I’m not the one doing this. He confirms this and suggests an even higher plan where were getting to $100/month or more. Again I explain to him that he’s asking me to pay for something I’m not using!
He then suggests I reset my phone, to do a complete reset in case there’s a software issue (I’ve not installed any third party software). I can accept this, but what if the issue persists. I’ll be going over my plan each day. So I ask him the cost whereby he looks it up and confirms it will about $50/day extra should it persist with the same bandwidth usage. I ask him if theres something we can do so I don’t get charged $50/day should the problem persist. Remember this is my second phone because of defects and I’m experiencing problems again, my faith in a replacement phone is extremely low, especially when it’s going to be out of my pocket at $50/day. He goes back to suggesting a higher plan to cover the full bandwidth should it continue ($100-$150/month). I ask him about getting real time bandwidth usage data or a technical person to assist us. He informs me this is not possible and that the bandwidth usage information will be delayed by at least 48 hours. He guarantee by how much exactly.
At this point I’m thinking this is getting nowhere and I just want out of the whole thing. I can live without my email notifications if this is the cost so I ask him if I can just cancel the data connection ($25/month part of the plan) where he informs me that with the phone I purchased this is not possible for at least a full year. At this point, my options are extremely limited and I have no idea what to do.
My options are:
- Keep the current phone (where on a third of the calls people can’t hear me) and delete the internet connection completely. I continue to pay $25/month for 10 months ($250) for a service I can’t use because it’s broken.
- Keep the current phone (where on a third of the calls people can’t hear me) and reset it hoping it works. If all goes well no extra costs and I’m happy. If something goes wrong I pay $50/day for at least 2-3 days ($100-$150 minimum, probably more) before I can even tell if there’s a problem. And then I disconnect the internet completely and try again for another round of costs.
- Keep the current phone (where on a third of the calls people can’t hear me ) and get a much higher plan paying $100-$150 more a month to cover the additional bandwidth costs ($1500 for the remainder of this year alone) and figure out the issue. Minimum cost is $150 if I’m lucky and I can resolve it in a month.
- Return the phone and try one of the above (same prices).
- Return the phone and get a non-PDA phone where I have to pay the $400 difference and save $250 in data costs (paying $150).
In no case can I guarantee I won’t pay at least $150 more (probably more) for something I didn’t do!!! Think about that. That’s insane! No matter what I’ll be charged at least $150 to figure out what’s wrong. I explain this to him, that he’s given me no good options, only terrible ones. This is EXTREMELY poor customer service to say the least. I’m absolutely not impressed. He can’t find another solution and he’s at a lost for words. He quickly restates the options, says he put a note on my file, and quickly says a very polite goodbye (I will admit he was very polite and friendly throughout the whole discussion). And I can’t blame him for wanting to end the call quickly, I’m pretty much left with only horrible options.
I will also admit that he did go ahead and offer to credit me the $400 amount when I was listing these options. But he also let it slip that for this month I was already at about $200-$300 in additional bandwdith charges! I asked him if we could also credit this balance to which he answered no. He could not credit this additional amount. Same problem same issue but he couldn’t (or wouldn’t) do it. So I’m going to be out another $200-$300 on top of my costs to figure out this issue (probably another $150-$250). They can’t help me with that. Talk about poor customer service. At the very least if you can’t credit me (knowing there is an issue) than at least help me solve it without charging me more money! Horrible horrible customer service
At this point I just don’t know what I’ll do. I’m going to sit on it for a day or so. I’ve already completely disconnected the internet so I’m now being charged for a service I can’t use.
I’m just completely amazed and apalled at the customer service of Telus. It’s beyond ridiculous. Will I ever go back to Telus once my contract is done? NO. Will I ever refer anyone? NO. But worse yet is that they got me upset enough to publish my story here because I want to help prevent others from getting caught in a similar mess. And if you look at the reach of this blog, the amount of money they were able to extract from me will cost many multiples more in negative PR than they’re getting!
*** UPDATE ***
To give you a better idea of the scale of this issue, up until I was credited the $400, this would have been a $950 issue at a minimum: $400 (current balance) + $300 (next balance) + $250 (cost to resolve the issue) minimum. It’s now a $550 issue.
*** UPDATE 2 ***
I’ve sent emails yesterday to two of Telus’ main PR contacts from their website and still haven’t received a response from either… If you have any suggestions who else I should contact please let me know.
*** FINAL UPDATE ***
You can find the conclusion of this story on my follow up article: “Telus Customer Service“
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How to Get Published?
In my last entry I wrote how I was interested in writing a book about marketing and sales for small businesses (all small businesses, not just software based small businesses). It was received with good enthusiasm based only on the summary. Several people commented that they would buy it. I also received a number of personal emails saying the same. Therefore I’ve decided to go ahead and write the book.
And like everything I do before I fully commit, I researched my options. I spent the last week analyzing what options there are to authors like myself, and its amazing to see how much the publishing market has changed. In the past you pretty much had to go with a major publication company to get your book out, and even doing that was a challenge. The odds of being selected for publication were really low, never mind actual success. You could also look for a small presses, which is almost the same as large publication company but without all the benefits. In any case, you needed a publishing company to get your book out in the world.
There was also another option, you could self publish. This however was, and still is, a very costly endeavor. You need to have a lot of seed money to truly self publish, you have to cover all the expenses. Let’s say you decide to print 100, 1000, or even 5000 books (for an initial print run), you personally have to cover that cost. That’s above the costs of writing the book, creating the artwork, getting the ISBN, hiring a copy editor, marketing etc. It can be a very profitable venue, its just that you need a substantial bankroll and expertise to go this route.
Today the market has changed for the better, there’s more options. Although most people still prefer going with a publication company there’s a couple of new ways to publish that are easier, quicker, and more affordable. The main ones are POD (Print on Demand) and ebooks.
Print on Demand is where you partner up with a company like iUniverse to print your book on demand, be it one at a time, 20, 100, and so on. You don’t need to make runs, your book can be printed one at a time if need be. However to take advantage of this with Print on Demand you do have to spend a bit of money to get your book ready and into the “system”. The fees aren’t astronomical but they aren’t cheap either. For example iUniverse has packages ranging from $299 to $1,199 (not counting editorial services, etc.). This is great when you consider you can be self published without have to do a full print run of your books.
How do you make money using this service? Like most publishing companies, it’s mainly through royalties. iUniverse gives you a 10-20% royalty depending on what options you want to use. Another benefit is that they’ll sell you copies (again even one at a time) of your book to you at a heavy discount.
The option I investigated with POD and traditional publishing is ebooks. Ebooks are basically books sold in digital format (generally PDF) that you can purchase and download online. I’ve purchased at least a couple dozen myself and I’ve even sold one in the past. Ebooks can be great because the costs are only your time to write and market the ebook. Each sale goes almost directly to your bottom line. The downside is that it’s generally less credible, harder to sell and market. People prefer traditional books over ebooks.
After looking at all the options, I’m strongly leaning towards Print on Demand (POD). You don’t get some of the benefits of a publishing company (big distribution, some marketing, etc.), but you make up for it in other respects. With POD, you’re guaranteed to have your book published, you’re publishing it! With POD you can also get your book to market much quicker. With traditional publication companies getting through the approval process can take months, never mind going through all the steps and negotiations. The difference is 2-3 months versus a year or so. Personally I just don’t have the patience for that anymore, I’d rather just go ahead and get it done. That’s what being an entrepreneur for so long does to you.
As a disadvantage you don’t get your book professional edited for you with POD. You need to do this or hire a professional editor. That’s ok with me because I don’t mind hiring someone for this. Also, you don’t get the full distribution of a publishing company. Your book will not appear in bookstores across the nation, at least not unless you’re a proven bestseller. That’s ok I can accept that. Another disadvantage is that you need to provide all the marketing for your book (books don’t sell themselves). That’s ok too, the topic of the book is about marketing and sales after all. If I can’t do that I shouldn’t be writting this book. Something to also remember is that publishing companies will only continue to market your book as long as it has a return on investment otherwise they’ll leave it entirely to you. Either way you’ll still need to do a lot of the marketing yourself.
Having looked at all the options, the benefits and disadavantages, I believe I’ll proceed on the Print On Demand route. I like the timelines. I like the control. I don’t mind doing all of the marketing, that’s something I know (its definitely a serious consideration for most people). I also don’t mind the loss distribution, my plan was to focus mainly on sales through Amazon anyways. I plan to emulate the success the authors of the book Call To Action had using their own techniques (great book by the way, I commented on it back in July 2005). I can’t find it anymore, but I remember reading somewhere that they didn’t want to sell the book directly on their own website, even if it was for a much higher margin! They wanted every sale to go through Amazon.com so that they could increase their Amazon ranking, giving it some serious momentum (there’s more to it than that, but that’s for another day).
Another factor that really helped make my decision was a book I recently picked up at my local bookstore called Get Published. It’s written by the CEO and editorial director of iUniverse so its very skewed towards iUniverse, it’s almost a sales pitch. But even with that it was a great read. I read most of it in one sitting. Again, there’s no doubt its a book to sell their service, they have testimonials of iUniverse sprinkled throughout, but it still clearly explains a lot about the publishing world. The fact that even with their sales pitch I’m still recommending the book should say something. They really do explain how things work in the publishing industry. They really do tell you the good and bad of the different types of publishing methods available to you (traditional, POD, etc.). They don’t try to oversell you on iUniverse, they tell you what they can’t and won’t do for you. They tell you exactly what the differences are and what you’ll need to do to be successful in both. For example, they tell you that you will need to do 100% of the marketing for your book with iUniverse, they won’t provide this for you. Again I strongly recommend Get Published if you’re looking for information on how to get a book published.
When will the actual book be available? My personal goal, which I’m publicly sharing right here and now, is to have it written before the end of summer. It’s an aggressive goal but I think I can do it. Add another 2-3 months to get printed by iUniverse (ISBN assigned, printing, edited, cover design, etc.) and I’m hoping to have it available for purchase on Amazon.com by late fall to early winter. Let’s see what happens!
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Marketing And Sales For Small Online Businesses
For some time now I’ve been considering writing a book about marketing and sales for small online businesses. Not just software businesses, but all small online businesses. During the summer I was even a spearker at such a seminar with Glenn Scott where I personally presented “Website Promotion and Traffic Generation” which got some really great reviews. As one attendee put it, “if the average course is like drinking from a cup [content], then this course is like drinking water from a fire hydrant“. Btw, congratulations Justin on starting CitySales.ca.
Marketing and sales is now a domain of business which I’m quite familiar with, one that I’ve been really striving at since I founded LandlordMax about four years ago. Since that time, LandlordMax has steadily grown in traffic and sales.
In addition to LandlordMax, I also personally started this blog (FollowSteph.com) almost two years ago now. Together, these two sites get approximately a combined total of a million unique visitors per year! It might not seem like much when compared to the major players (Google.com, Cnn.com, or even Digg.com), but the thing to remember is that both of these sites are focused to niche demographics, so these are phenomenal numbers! All in all this is a very big achievement which I’m very proud of.
Which leads me back to my initial concept of writing a book about everything I’ve learned since I initially started. It’s been quite a road, with lots of bumps and turns. And I can tell you, I’d have been a lot further ahead today (at least I’d have gotten there quicker) if there had been a book like this one explaining everything I needed to know about marketing and sales for an online business. There’s a lot of information out there, no doubt about it, but it’s all over the place. It took me a lot of time to consolidate it all into one. This doesn’t even bring forth all the trial and error experience I got along the way. I can tell you as part of this whole learning process I also purchased lots of books, lots of ebooks (ebooks are great for quickly changing information such as “Adwords Definitive Guide“), read tons of articles, read tons of blogs, and so on. All in all, it’s been a great big adventure of learning.
So now I’m considering putting it all together in nice little book that will contain lots of information, more meat than fluff. I’m personally not a big fan of fluff, I like to get a lot of information for my money, and especially time (it’s my scarcest resource bar none). My personal value of a book is if I can get at least ten times the what I paid for it (time and money), then it’s worth its price. I’m hoping this book will be worth more than that!
So without further ado, here’s the outline I’ve been looking at so far:
Introduction
- Some of my personal story, including some successes and failures.
Section 1 (General information)
- Why is marketing and sales important to you?
- How does traffic affect your revenue?
- Is all your traffic worth the same?
- Will your efforts need to change over time?
- How will people find out about you?
- What is SEO (Search Engine Optimization)?
- What are the free types of website promotion?
- What are the paid types of website promotion?
Section 2 (SEO – Search engine Optimization)
- What exactly is SEO again?
- Why is SEO important to you?
- What can SEO do for you?
- Tips to improve your website for better search engine ranking?
- How does Google view your site overall?
- How can you improve your site’s ranking outside of your own site?
Section 3 (Free Website Promotional Campaigns – Blogging)
- What is blogging?
- Should you blog?
- How you can blog to increase awareness of your website
- How you can promote your website in your blog
- The real power of blogging
Section 4 (Free Website Promotional Campaigns – Part 2)
- How can your content help drive traffic?
- How can your content help your search ranking?
- What are loss leaders and how can they help you?
- What all this social networking about?
- Is linking still important?
- Do you really need an online presence?
- Are directories worth anything anymore?
- Are e-zines worth your time and effort?
- Potpourri of tips
Section 5 (Paid Website Promotional Campaigns – Adwords)
- How does Adwords really work?
- Is Adwords really that good for you?
- Does it really matter how much effort you put into Adwords?
- What’s CPC?
- What’s CTR?
- Why are they both so important to you?
- How you can do Multi-variate testing with Adwords
- How can you improve my Adwords Ads?
- What’s the best way to Manage your Adwords campaigns?
- Does it really matter what keywords you bid on?
- Are the other systems like Overture, FindWhat, etc. worth trying?
- Adwords Potpourri
Section 6 (Paid Website Promotional Campaigns – Part 2)
- What are presses releases and how do they work?
- Are press releases worth your time and money?
- Which services should you use for a press release?
- How do you determine what’s newsworthy?
- How do you write a press release?
Section 7 (Paid Website Promotional Campaigns – Part 3)
- What domains should you buy for your website?
- A great tip on how you can get an amazing ROI by buying domains
- How do you know which domains to buy?
Section 8 – Promotional Potpourri
- Why you should always sign your emails
- The power of giving testimonials
- Can you use RSS to your advantage?
- Misc Potpourri
Section 9 – Sales Conversion
- What is sales conversions?
- How can you increase your sales conversion?
- How can you monitor what’s going on?
- What to look for when you try to increase your sales conversion?
- Some quick tips on how to increase your sales conversions
Section 10 – Resources
- Links to great blogs and articles
- Recommend books and ebooks
Section 10 (Tentative)
- Small interviews and tips from industry leaders
Well that’s the outline I have so far. It might seem like a lot, but imagine if it’s not all consolidated in one place and rather spread out across multiple books, ebooks, websites, blogs, and so on. It took me a long time to get a real grasp of all this and how it can really affect a website’s presence.
I’m also a big believer of the multiplier effect, which is the concept that your business is a multiplier of many factors. And assuming that’s a fact, multiplying any one factor will significantly increase your overall effectiveness. For example, if you score a 2 on one thing, then 4 on another, and 10 on still another (all out of a max of 10), then you’re a total of 2 * 4 * 10 = 80. However if you increase just one item, since it’s multiplied, you get 3 * 4 * 10 = 120, where you’re whole business is running 50% more effectively! By being 10% more effective in just one area (going from a 2 to a 3 out of a max of 10), you increased your overall business effectiveness by 50%!
Therefore I think there’s a lot of value in marketing and sales, and coming from a more technical background, these are some of the tools I wish I had know more about beforehand. Things I wish I didn’t have to learn at the school of hard knocks. I can tell you that I spent a lot of money learning many of these priniciples. Adwords alone cost me quite a bundle before I finally started to really “get” it. On one ad alone I increased it’s effectiveness from 0.42% to 1.62% through about a dozen small iterations in just a few weeks time. This alone increased my ROI incredibly, much much more than four times! I won’t explain here why it’s much more than four times ROI (42 * 4 is approx equal to 1.62), I’ll leave that to the book. All I’ll quickly say is CPC * CTR is the key to your success (hint: another multiplier effect is in play here).
Anyways, please let me know what you think. Would you be interested in this book? Would you buy it? Would you buy it in ebook format or just as an ordinary book (from Amazon for example). How much would you pay for this book? $29.95? $49.95? Are there other topics you’d like to see included? Any topics you’d like to have skipped? Basically any feedback you may have would be greatly appreciated. At this point this is just my outline, but I will start writing it this weekend.
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Why There's Still Credit Card Fraud
Every wonder why there’s still so much credit card fraud? About 2-3 weeks ago I saw a really documentary on Dateline about online credit fraud, well mostly about identity theft, but still very relevant. It’s what triggered this article. In any case the commentator did a great presentation, and showed how many people get taken. He was even able to show how within a day or so they set up a fake online store to accept stolen credit cards orders on the internet. They did it in a day!
So why is this still happening? Why are stolen credit cards continually used to purchase products when we know how it’s done. Why aren’t credit card companies stopping it cold, or at least bringing it way down?
The answer lies with their motivation and incentives. A while ago I wrote a glowing recommendation on a book entitled “Freakonomics“, where one of the things the book really showed you is that you need to pay close attention to motivations and incentives. And once I started to ponder about the credit card companies motivations, things became a lot clearer. The incentives and motivations just aren’t there to completely remove credit card fraud. There are of course strong motivations to keep it low, but not to completely eliminate it.
Why?
Before going into detail, let’s take a look at an example of what happens to us at LandlordMax when someone uses a stolen credit card to purchase our property management software (although it very rarely happens, no one is completely immune to it). Firstly, the fraudster goes online and makes a purchase of LandlordMax. The credit card company authorizes the transaction saying the credit card is valid and has the sufficient funds. Once we get this ok, we then proceed to finalize the transaction and send the customer their product. Everything is looking good and all parties are happy. However within the next few days, more often weeks to months, we receive a notice from the credit company that the transaction they authorized was fraudulent (more often than not it’s because of a stolen credit card). However here’s where it gets interesting, it doesn’t end there, the credit card company then takes back the funds they authorized (remember they told us it was ok to proceed).
So let’s look at the motivations. Firstly they aren’t liable for lost funds. Yes they authorized it, but they aren’t liable, the merchant is. If the card is stolen, the credit card company doesn’t lose a penny, the merchant takes all the risks and losses. Not only does the merchants lose their funds, but you also have to remember that their out of product as well. So for example, if you sold a diamond ring for $2000, not only would you have to give back the $2000 but odds are the diamond ring is nowhere to be found.
Understanding this, it quickly becomes very clear why they aren’t motivated towards a zero tolerance on stolen credit cards. It basically becomes a cost to benefit equation, they have to cleverly balance how much theft they can let go by without people losing confidence in them. To put it in other words, it costs money to detect fraudulent transactions and to be on top of criminals, exponentially more expensive as you get closer to a zero tolerance. What they have to figure out is how much theft is acceptable so that people will still have confidence in their product (and continue to use credit cards) while not paying too much to prevent this fraud. It’s a very fine line to balance. As they get ever closer to zero tolerance their costs go up with diminishing returns.
Remember the key ingredient here is that they aren’t liable for losses they authorized, the merchant is. So their only real motivation is to instill confidence in their customers (credit card holders) that using their credit cards is safe (where they get a percentage of every transaction). They don’t really have a motivation to produce a 100% safe credit card system, at least not until they’re on the hook for the losses instead of the merchants.
Without pushing the point further, don’t get me started about chargebacks. Another one of my favorite pet peeves with credit card companies. If someone ever decides to do a chargeback, of which we’ve had a grand total of 2-3 over the last 4 years which is an incredibly low percentage, not only do the credit card companies take the money back but they also charge you a significant chargeback fee! If you look at their motivation, it’s definitely towards the credit card holders and not the merchants. They have no vested interest in helping you, they don’t lose a cent, they actually make money if chargebacks go through.
So if you take a good look at what motivates credit card companies in terms of protecting people against credit card fraud, its probably not what you expected. Yes they are motivated to keep credit card fraud down, but they are definitely not motivated to completely stop it. It just doesn’t make economic sense for them. Ethically it’s a different story, but unfortunately today the economics is the reality.
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How to Save on Bandwidth Costs
Reading many ISV (Internet Software Vendor), uISV (Micro ISV) blogs, etc. you often hear how bandwidth costs can sometimes quickly escalate with success. Jeff Atwood of CodingHorror.com posted an article (with a nice follow-up) on this very subject describing many things you can do to minimze your bandwidth costs. These are:
- Switch to an external image provider.
- Turn on HTTP compression.
- Outsource Your RSS feeds.
- Optimize the size of your JavaScript and CSS
All great options, no doubt about it. But another option that is very often overlooked by software companies is the size of their software installers. It’s very easy to forget, never mind completely miss, the size of the installer. For us here at LandlordMax it was always an issue because we also install a local JVM which is considerably large. With each new version the size of the installer steadily increased until it was about 36Mb. This might not seem so big compared to some of the other larger software applications in the market, but when you’re looking at thousands of downloads a month this quickly adds up to a lot of bandwidth.
Late last year we changed the software we used to create our installer to Install4j (you can read my review on this great installer here) and it was able to drastically reduce our installer size by about 50%! Yes, that’s a full 50%! What does that mean? Well if you consider that the majority of our bandwidth is used for downloading LandlordMax, then we were able to reduce our bandwidth by about 50%.
None of the suggestions above could have reduced our bandwidth nearly as much as this one change to the installer. On this blog (FollowSteph.com), the above four suggestions do indeed have a very significant impact, but on LandlordMax because of the nature of the website, the change in the installer completely overwhelmed any of the impact these changes would have had. This is not to say that I don’t strongly believe you should do them, but that in this particular instance another tactic to reduce bandwidth was much more crucial.
So the lesson of the day, other than to do the above great suggestions by Jeff (especially for blog type websites), is to look at your software installer and see if you can’t reduce its size (assuming you’re a software company). The impact may be more significant than you might realize.
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