I clipped an advertisement from a magazine today, and as I was getting ready to dial the number to inquire about the service , I saw the contact said to call a Chief Revenue Officer (CRO).  I couldn’t help but think, as a customer, can I get the best deal possible dealing with the CRO or is he only about maximizing revenue (as his title implies)?  And shouldn’t every single employee be all about maximizing revenue?

From a marketing (and sales) perspective I really don’t like the title and would advise against using it.

Ronn Torossian

5WPR

This week, I read one of the most absurd articles I have seen in a very long time in The Wall Street Journal.  A quarter of a page was devoted to – stop the presses! – $25,000, the amount that CVS spent on golf outings for its top executives. Using that amount of ink on a non-story like this is simply absurd. If this environment continues, many businesses will simply not be able to function.

Every single day, businesses hold conferences and conventions, entertain clients, and even golf with them. In the year 2009 (and for quite a while before that), business isn’t conducted 9 to 5, and relationships are often built in non-traditional ways. What’s the big deal? Twenty-five thousand dollars? How many deals does that close? Two summers in a row, during different economic times, I rented a luxurious house in the Hamptons (at a significantly larger fee than CVS paid for their bigwigs to golf) to entertain clients, allow employees a getaway, etc. It was good for business and garnered many relationships that had a return well beyond the summer rental fee. I would venture that CVS receives ROI from perks.

The media and the government need to stop this craziness. Sponsorships aren’t bad, marketing isn’t bad, and perks aren’t bad. They are necessary in business, and not allowing them will cause the economy to suffer even further.

Ronn Torossian
5WPR

One of the most enjoyable aspects of owning a public relations agency (and working in PR in general) is the ability to meet a multitude of interesting people.  I have regularly met billionaires, fascinating entrepreneurs, celebrities and politicians over the years.  Today, I met the rare honest politician, and he very much impressed me.  These meetings reaffirm the beauty of working in PR and touching a variety of different industries.

Today, with many clients and friends of the agency in attendance, 5WPR hosted a speech by Nir Barkat, the just elected Mayor of the most magical city in the world, Jerusalem.  I met Barkat a few years ago and have spent time with him since then both in Jerusalem and here in the U.S.  He truly is the quintessential non-politician, and as his friend, I am proud to have been his first host in NYC during his first official visit as Mayor.  He discussed Jerusalem’s relationship with the American community, and he said, “I propose a partnership where those worldwide who care about the future of Jerusalem participate in the city’s development.  Under my leadership, the city of Jerusalem will build relationships, and we will do business together.”

Barkat spoke of public-private partnerships that allow overseas individuals who aid in Jerusalem’s development to meet the cream de la crème of Jerusalem’s business community.  I have always believed government should encourage business and that people who meet with mutual interests (even non-business related) will end up being beneficial to one another (and Barkat specifically mentioned sports, which I agree drives deep bonds).

Barkat, who is a self-made multi-millionaire through his entrepreneurial ventures, is truly a special individual.  I believe he will do great things in, and for, Jerusalem.  If there were more politicians worldwide like him, I believe more cities would thrive financially.

Video of Barkat at 5WPR

If you may be interested in attending future events here at the agency, please email me and let me know.  They are excellent ways to meet business contacts.

Ronn Torossian

5WPR

photo credit: Shahar Azran

Yesterday’s AdAge article, “Is the President’s PR Barrage Working?” can be summed up with the following quote: “In the past few weeks the president, along with his wife, Michelle, have easily been on more magazine covers and done more TV and newspaper interviews than Brad Pitt, Angelina Jolie, Lindsay Lohan and Britney Spears combined.” 

I wonder, could a Republican ever achieve this sort of positive media coverage ? Media is biased on many topics, including business and politics, despite all claims to the contrary.   As PR pros, we should remember this as we approach outlets.  As long as Obama remains loved by the media, he will get great press. 

Ronn Torossian

5WPR

Two separate postings this Monday on some of my weekend reading:

1: As 5WPR continues to achieve success, we have at times second guessed our policy to not enter any of the awards programs offered by the industry (other than rankings awards which simply require us to submit tax forms – fastest growing, INC, etc.).  While I do understand arguments about recognizing staff for great work, I have always been concerned about revealing our successful, creative initiatives to competitors.  Additionally, these awards are tremendously time consuming and expensive.

We are proud that we have achieved success without having a stand-alone marketing or new business department for 5WPR, so  I found this AdAge article about the tremendous cost of these programs quite interesting.  This survey further validated my decision to not have 5WPR enter these programs.

2:  I also found the Best Life article on one of hip-hop’s greatest entrepreneurs, Jay Z, to be great reading.  The “mainstream” business community often doesn’t recognize the positive attributes that the most successful hip-hop entrepreneurs bring to the business community.  Jay Z’s business principles outlined here are a must read.

Ronn Torossian

5WPR

For those of us in the heart of the beast, public relations isn’t a social exercise or an academic debate – it’s business.   And like all businesses, we focus on the bottom line.   Lately, we’ve spent a lot of time discussing social media with prospects and clients, but the fact remains that very few are willing to spend any real money on social media.  There’s a lot of talk, and publicly they say otherwise, but this AdAge article expressed the reality, and for me wasn’t a surprise at all.   It reveals that, “three-quarters of those surveyed who knew their budgets said they allowed for $100,000 or less for social media tools over a 12-month period, according to the report.”

Less than $100K (which for most brands I bet is under $25K in reality) to manage twitter accounts, dabble on blogs, create facebook pages, and tap all of the other various social media communities.  Those budgets include agency fees, so how much work can an agency, or anyone for that matter, really do when budgets are that tiny?

Clients need to spend more – much more – on social media to succeed.  We do have a number of clients for whom we have succeeded tremendously in this arena at low cost, but it does take some money.  Here’s to hoping that brands don’t just do interviews lauding social media, but actually spend money on it, allowing for success.

Ronn Torossian
5WPR

Forbes Magazine recently released its annual list of the richest people in the world, and we are proud to represent two of the remaining billionaires.  The individuals who we represent (like many successful people) are very particular about how they appear in the media, and have unique concerns about their uber-successful, relatively private personal brands.  Both of them, within a few minutes, called about their placement on the list.

These clients are individuals we must strategically position and manage carefully.  Many people at this level of wealth and notoriety have apprehensions that affect their public decisions – where and with whom they are seen, TV appearances (name in the paper is different for security and privacy than face on TV), and a healthy paranoia of the media.  Every client has unique challenges and opportunities.  Especially with clients at this level of prestige, we must always be at the very top of our game.  And every second, we need to be aware how precious time is.
Ronn Torossian

5WPR

Before I get lost in the battles of the week, I want to take the time to share a few weekend joys that really resonated for me…

With the first hints of spring arriving in NYC, I allowed myself to take some time to clear my head.  As I’ve said before, a good run (and lots of sweat) is always a physical and mental release.  (Vigorous exercise is necessary in any economy to help maintain balance.)  After, I spent hours in Barnes & Noble reading book after book after book to gain perspective and do some mental calisthenics.  Really relaxing and invigorating.

I was also able to spend some time this weekend praying and learning.  One story I heard from my Rabbi had a great impact on me:

“When people are born, they are their purest as babies and purity is, of course, good and they should try and revert back to pure basic behavior as often as possible.  Babies cry about 300 times a day and man laughs only about 15 times a day (in good and normal times, and less in times like these).  If people can laugh a lot more, everything in their lives will be better – business, financial, personal.  Everything.”

Optimism breeds success. 

And lastly, I read a very interesting story in the New York Times about one of NYC’s most successful real estate brokers.  The closing quote held special implications for me, as she said about her work, “It’s challenging; it’s interesting. It’s just not as fun.”

Ronn Torossian
5WPR

After years of bumbling, the DNC’s marketing strategy machine is running – and running smoothly. The DNC’s new campaign, which paints embattled conservative radio host Rush Limbaugh as the face of the Republican party, is a smart PR and political move as President Obama gears up for his first public battle. Presenting this highly polarizing figure as the face of the opponent is very smart.  This, coupled with the tremendous failure of the John McCain campaign and no real face of the Republican party, allows the DNC to claim Rush as the face of the Republicans.

President Obama has been the media’s best friend, and they’ve been very hesitant to criticize him.  As he prepares for his first real fight, there’s no better move than to position his opponent as someone like Rush.  This PR battle is truly about the economy, but by focusing on Rush, the DNC makes it harder for people to criticize Obama’s economic policy because it creates the appearance of standing with Rush Limbaugh if they pass any negative judgment.

Ronn Torossian

5WPR

Employees today must realize how very difficult it is to run a company, and they must abandon all sense of entitlement.  The only entitlement one can (hopefully) expect these days is a paycheck.  There can be no downtime and no concessions – work must be at maximum intensity. Companies today are driving a car in the midst of a terrible thunderstorm, and concerned with just surviving to the next exit.  It will take incredible focus, determination and sacrifice to get there.

This means more work and no complaining.  Across the board, it’s time to repay your company for all they do.  This crisis is very real, with no end in sight.  Warren Buffett conceded that it is “an economic Pearl Harbour,” and it truly needs to be treated like a war.  With many of the smartest business people I’ve met shedding staff en masse, cutting salaries and withering by the minute, employees across the board need to be much more serving and much less entitled.  From realizing reviews won’t happen on time, to requesting less and doing more, it’s simply time to be thankful you have a job. 

This week’s Shouts & Murmurs column from The New Yorker is meant to be humorous, poking fun at the extreme cost-cutting measures companies have had to adopt, but in many ways, it is scarily accurate.

Ronn Torossian

5WPR