Marketing – An Entirely New Ecosystem
We often encounter the retort:
We don’t need to “market”, we know all the LPs that can invest in us, and we are already communicating with them.
It's not about what managers aren't doing. It's about what everyone else is doing.
Communication is no longer about sending out quarterlies, and calling people every once in a while. An entirely new ecosystem of tools, thinking, and actions is now in play. Old buildings fall down in earthquakes because they weren't built with the latest technology. Old funds that resist modernizing how they communicate / market will fall down too.
Yes, there are certain funds that have the characteristics of 12th century fortresses (Renaissance Technologies comes to mind) -- buildings built so well and so right that they will seemingly last forever, however, this is by far the exception.
Those that don’t modernize how they communicate, which includes websites, blogs, twitter, text, CRM systems, videos, Youtube, LinkedIn, etc. will soon find themselves “out” of the conversation. People want information, today; they want to understand what you are thinking about, today; they want to know what is happening, today.
If you don’t feed the new world's need for immediate gratification, those re-ups that always seem to happen will slow down, there will be fewer meetings, and things will get quiet. Quiet is not good.
Investors breeze over quarterlies, deal sheets, acquisition announcements, pretty quick. Is there anything new in those things that they haven’t seen heard, or read about 1,000 times? Unlikely. The announcement of the future, “We bought steel company ABC for $100 million. Click here if you care."
Evolve, change, move, run, dance, do something, just don’t tell me that you “don’t need to market.” If you want to prevent the dilution of your AUM, best play the game.
By Kyle Dunn