Monday, June 3, 2013

Monsanto's GMO's: Viral Marketing Done Wrong.

Sell seed. Let it spread. Sue. 

(When Crossing the Chasm also means burning bridges.)

You’re probably hearing a lot about Monsanto these days. Not just the nice words Bill Gates has had to say about them boosting food production. It is all the negative imagery of marching farmers and nasty blowback about GMO’s - genetically modified foods.

The really interesting story – the one you almost certainly haven’t heard – is that Monsanto created a dominant position in onetime commodity seed marketplace by tapping virality - but at the eventual cost of turning the public against them.

They were able to use a kind viral marketing with a decidedly robber baron mentality. Their enemies were able to use real viral marketing with PR and Social Media to turn Monsanto into the evil empire of agriculture.

Is this a warning lesson for an old world company stepping into a marketplace that can fight back through Social Media?

Monsanto is one of the first companies to patent a genetically modified soybean with an additional gene that made it resistant to their best-selling weedkiller, Roundup. That meant a farmer using their genetically modified soybeans could safely cropdust his field with the very effective Roundup that killed all the weeds and none of their crop, which it would do with heirloom soybeans.

Having worked on a farm I know that farmers are not generally opposed to GMO’s or weedkillers. They know that nature mutates all the time and is constantly sending organisms intent on destroying their crops. But now many of them are – thanks to Monsanto taking viral marketing the wrong way.

Anyone who has read Crossing the Chasm, the classic on introducing a new product to the marketplace, knows that it is based on the model of seed distribution in the 19th Century. It is really hard to get farmers to adopt new seed because of the risk and commitment it takes. So initially, only farmers with real problems or nothing to lose would adopt a new seed. Once the crop succeeded, other slightly larger farmers would catch on while the established middle ground of farmers would be the hardest to enlist.

Monsanto already had the best-selling weedkiller, Roundup to leverage and so they were able jump several chasms and get to very well established farmers who were already their users.

But in order to dominate the market they did a kind of reverse viral marketing. Since the one thing plants do is spread their seed, it wasn’t long before neighboring farmers were sprouting Monsanto GMO seeds. Instead of acting like Tony Hsieh at Zappos or Gary V of the “Thank You Economy” and using the experience as a kind of sampling mechanism, they sued the farmers that were cultivating their seed claiming patent infringement and in several instances won ownership of their crops.

They went after so-called seed cleaners, people who had helped farmers for generation recover seeds from their own crops. Since Monsanto’s customers signed a single use agreement when buying the seed – thereby turning them in to subscription customers – they treated the seed cleaners as pirates.

There are many complications here and subsidiary arguments such as whether patent law was ever intended to apply to living organisms. More importantly, there is debate over and whether patent law which is all about creating innovation and novelty could applied so coercively to an act of nature – the biologically necessity to spread seed. From Monsanto’s point of view they were all pirates and so far despite all the outcry and the hundreds of thousands of farmers who use their product, there have less that 200 lawsuits.

Then reap what you sow...

While there may well have been pirating and numerous attempts by farmers to test Monsanto, the reality is that most cases were settled because of the sheer weight of their legal department. Most importantly, there is no sign of Monsanto acting to remediate the stray spreading of seed. In other words if you believe GMO’s were bad and didn’t want them on your property Monsanto would make no effort to remove them, so the dice was clearly loaded.

From a Social PR perspective however, it is clear that Monsanto has blundered and is reaping a whirlwind. Yes, they have profited in the billions but only at the expensive of a rising tide opposition, demonization at its most effective - as the Frankenstein of Agriculture, the maker of GMO’s.

The fact that GMO’s are probably necessary to feed a growing world has been overshadowed and in the log run, while Monsanto will probably be OK, they will spend years battling what has become an epithet. In many ways, they resemble Microsoft – essentially owning the operating system of the dominant herbicide resistant gene and then buying up distributors and forcing smaller players and biotech start-ups to pay licensing fees for the use of their gene. (See Monsanto & Competition in USA Today.)

So, how does a Midwestern giant fight the crowd? Mostly, they don’t have to because the crowd needs to be fed. But that could change. Just as the Microsoft was being sued by a for anti-trust violations by a Justice department that ran on Microsoft Windows, they are facing anti-trust investigations by people who eat the product of their seed. If enough of the public is riled up about GMO’s, as they are in Europe, they could see that litigation mushroom.

Perhaps their biggest competition may be the public itself and the ability of the Internet to spread knowledge faster than their seeds. Could a renegade seed movement develop? One example is the guerilla Fruit grafting movement in California which defied local government to bring fruit trees into city sites. Will that spread? Will there be an open seed movement? Seed hackers? A farm underground? Will the lessons of the music industry and its ultimately failed attempt to sue to MP3’s out of existence be repeated here. Will this generation breed agrohackers who will go after genetic engineering the same way - using the Internet, advanced computing, labs on a chip, 3D printing and the tools that only the big companies once had?


© 2013 Alan Brody

Tuesday, May 28, 2013

Could Knowledge Workers Avoid Taxes - Apple Style?


Tax Avoidance for the Rest of Us?


Could knowledge workers use a similar tactic employed by Apple to avoid US taxes?

Knowledge workers sell their collective knowledge to a union in Ireland to which they pay hefty fees out of their earnings.

The union owns their offices, cars and houses to which they pay a tax deductible rent. The union pays out annually to its US members in Ireland. They can recirculate the money in Europe or bring the balance back for U.S. taxation.

See how Apple dodges taxes on $74 billion in revenue.

Thursday, May 23, 2013

Visual Daily: The One Graphic that Explains Apple's Tax Blarney



How Exactly Does Apple Avoid Taxes?
[Announcing: OSX Mountain Blarney - Source Code Algorithm]


1. Create Fake Company - Apple Operations International (AOS) - in Ireland where corporate taxes <2 b="" nbsp="">and "sell" U.S. Apple's Intellectual Property to AOS. 

2. AOS charges Apple US massive licensing fees for most Apple products sold.

3. Manage "Irish" AOS Company out of Nevada as Braeburn (Apple) Management (seriously!)

4. [Money actually stored in NY branch of Irish bank.]

5. Circulate overseas sales revenue to another fake Irish company - Apple Sales International (ASI)

6. Pay no taxes on $74 billion


Note: Also explains the disappearance of rainbow from original Apple logo.



Coming next: Global Tax Avoidance Strategy for Today's Knowledge Worker 

Tuesday, May 21, 2013

Visual Daily: The One Graphic that Explains why Yahoo Wanted Tumblr

Welcome to our visual news blog - where we try to capture the essence of the news in a visualization.

 Why Tumblr Matters
Teens use Tumblr more than Facebook (Source c|net)



 Visual Snapshot of Tumbler



Worldwide Users

Growth Profile



User Profile


Survey of Social Media Users
  • City more than suburban or rural
  • Facebook still dominates
  • Hispanics and then African Americans prefer visual over text
  • Skews: Young, female, less affluent and some but not too much college



Wednesday, May 8, 2013

Trump Puts the Clown in Crowdfunding

Thanks to Donald Trump and the extraordinary spectacle played out at Trump Tower yesterday, we just got a glimpse of crowdfunding as a nightmare: people crammed against each other as they clawed the air for MONEY. 

As Trump put it, he wanted to take crowdfunding away from "Brooklyn hipsters." That he did, as a money-maddened crowd sprinkled with street people, brayed for bucks.

The site he is promoting, Fundanything.com, which is actually managed by his old pal, Learning Annex's Bill Zanker, borrows from Indiegogo.com. It accepts all comers and charges 9% if you don't make your goal and 5% if you do (vs. Indiegogo's 9% and 4%). 

The site is open to all comers and there is no community follow-up or any kind of vetting of deals. 

The only bright side to this picture is that Trump is offering to fund a choice few projects and so the publicity may bring some attention to other projects on the home page. 

If you are sorry you missed yesterday's spectacle, do not fret, the two expect to do live events around the country on the theory that it will bring more attention to the projects. The reality is likely to be more money stampedes - the ugly realization of our jobless recovery and our fascination with entrepreneurship-for-everyone.

Nevertheless, it is part of a trend. Last week, we reported that Shark Tank's Barbara Corcoran joined the board of RockthePost.com, a pioneering equity crowdfunding site featured on our podcast, The Entrepreneur Show. 

So - do we continue to be amazed at the miracle of crowdfunding - the wisdom of the public as it puts its trust in the ideas of a good few? What the JOBS act is about to turn it into a wealth-sharing vehicle for the rest of us?

Or, are we about to see it transformed into a freakshow to amuse the rich whenever they feel like sprinkling bills before beggars? A massive joke where people compete against each with sob stories or half-baked ideas in search for suckers. A high tech way of washing your windshield?

The answer depends on which side of the velvet rope you were standing last Wednesday at Trump Tower.


Additional stories in the Verge and Techcrunch.

Tuesday, April 30, 2013

Barbara Corcoran Gets Into Crowdfunding - News from our Podcast Series "The Entrepreneur Show"

Crowdfunding - Can You Raise a Million Online?

Just as we began our new biweekly podcast: The Entrepreneur Show with a group of Equity Crowdfunding companies, we got the news: "Shark Tank" regular and real estate mogul, Barbara Corcoran is joining the board of one of our panelists' company, Rock The Post.

So kick back and listen up to what's happening in the crowdfunding space and how that could change marketing - and not just capital-raising - everywhere.

You will meet Alejandro Cremades (Rock the Post), Jeremy Andrews (Smart Money Entrepreneurs), Alex Fair (Medstartr), David Post (Benamin Bakery) and Serena Walker (Athena Business Institute).


Listen Here or on iTunes

Friday, April 26, 2013

What VCs have to say about Start-Ups - Report from April iNNOVATOR Evening


Do you really want to know what Investors think of your idea? The chances are they won't be telling you. But when you look at what they have to say about these companies, you might get a good idea about what they might say about yours.

Or you can review the summary of our forthcoming book Are You Fundable? at the iBreakfast blog. It has been downloaded over 6,000 times!

Congratulations to the winner, Harold Baum of DynaTabs. He will be attending the PrivateEquityForums.com event at the Yale Club.

Here is a summary of the judges comments:

Defendcall is an emergency call system that turns your cellphone into a personal alarm system. It is best suited for campus environment.
Judges liked this idea and considered this a great presentation. But they were concerned that it may not be unique enough (add features!) and suffers from the "Catch 22" issue: can you open your phone in time in an emergency? Then, there is the key problem - this product is sold to schools and investors are extremely leery of startups that are sold to education or government because they are too many people who can say no and the sales cycle is tortuous.

Votopin is a popular voting system that employs an intuitive visual interface.
Another good presenter whose challenge is to focus this product on an area that would most readily adopt it. Otherwise, a voting system at this stage in the the internet is just too broad and too fully, if improperly served, to enter. The idea of turning it into a community is overly road and would either be problematic or too expensive to achieve.

Villij - a CRM and community development site for independent stores.
Well implemented site that addresses an obviously underserved market. The problem is customer acquisition - it has to be sold retail, as in store by store. The business plan actually asks for money to do just that - hire a sales force. According to the rules in "Are You Fundable?" you never want to ask investors for money for sales. (There are 3 reasons why and you'll just have to read the book.....)

Dynatabs - the unexpected winer!
Dynatabs is a company that sells supplements int he format of a "ministrip." and has a process patent that can be license for other pharma companies.
Arguably, the least polished presentation of the evening but the one with the products and the products won!

AVINI - High definition sound for hi-Def TVs and other digital devices.
The promise of this product is marvelous however it lacked a demo. Until then, we'll never know.

Jollify - a web service that "frames" your videos with a theme, creating a video equivalent of a snapshot or postcard.
The judges were impressed with the idea but felt there need to be more of a solution to the problem of too much video that will never get watched.