A Conversation About Marketing Risk - It Makes No Sense
In private equity, analysts mash together chicken bones, crow feathers, and macros to build Excel models that take on god-like qualities. Hedge fund managers build complex trades that rely on the wind direction in China four Tuesdays from now. And all of this is justified under the guise of “investment risk.”
People in this business walk around talking about being risk averse all the while making decisions that impact more lives than most, screaming into a cell phone, flagging a cab, all while trying to eat a bagel.
What…we lost a billion, damn.
Risk is not foreign to this industry at all. Quite the opposite really, I would argue that this industry has a greater capacity and willingness to absorb risk than most. Big decisions - are police officers in Kansas going to have a pension in 25 years kind of big - are made with an expediency and frequency that really is frightening. (And hats off to those that make these decisions.)
But STOP. This is what makes no sense. When chasing capital, the majority of people in this industry believe they will be able to walk to the front of the queue without taking any marketing risk.
Can you get 30% annualized without taking investment risk? No. Are you going to be able to differentiate yourself and get noticed with taking marketing risk? No.
In building your next deck do or say something that is a little marketing forward. Put in a picture that adds some character, some life to the content. When someone tells you that it isn’t “institutional” tell them to pound sand. Outsized marketing gains only come with outsized marketing risk. You need to push the envelope.
By Kyle Dunn