5 Advantages of Working with a Virtual Marketing Director (VMD)
Are you dedicating enough resources to the marketing of your firm?
A recent FA Insight Study of Advisory Firms found “only 50 percent of surveyed firms developed an annual marketing plan and just 32 percent of these firms had a position dedicated to marketing or new client growth”.
All too often, firms view marketing as an all-or-nothing proposition that has to be completely managed in-house by a full time marketing professional, and they just don’t have the need or budget. What these firms don’t realize is that there are other options available. One such option is a Virtual Marketing Director (VMD). Different than a full service marketing agency, a VMD is usually an independent marketing professional who assists in guiding your marketing efforts and acts as a point person to manage ‘all things marketing’ by coordinating both internal marketing activities and external vendor relationships.
If you’re considering engaging a VMD, here are 5 advantages should know:
#1: Industry Expertise
A VMD or freelance marketer is usually someone with a very specific and significant background. In initially meetings with a VMD, learn who they’ve worked with and have them share examples of how they’ve helped firms in similar situations as yours. Make sure he or she has both strategic and tactical expertise. It’s great to have someone who’s able to tell you what you’ll need to do. It’s another thing to have the hands-on skills to get the job done.
#2: Objective Advice
As many who understand the benefits of independent counsel know, there’s a unique perspective of someone who can look at your firm from the outside and present unbiased recommendations. By not being in the throes of the firm’s daily activities, a VMD can more objective identify a problem and come back with best practice solutions from other firms who they’ve successfully helped with similar needs.
#3: Tailored Approach
It’s very important to determine your marketing needs upfront; content development, lead generation, thought leadership, media relations or all of the above. This will help you align with the VMD whose background and skills will achieve your unique goals. You may find that you even need to include other members on your virtual team, such as a business coach or media relations specialist. Much like hiring an employee, find partners with the right mix of talent, values, and work ethic necessary to be a true resource and extension of your firm.
#4: Focused Direction
While the best approach to marketing is an integrated effort, choosing a particular project or area to get started can make the process less overwhelming. This is also a good way to see if the VMD approach is a fit for you. Start small with a project that requires the least amount of cost and time and determine some metrics to evaluate the results. Over time, you can then formalize the relationship. Most VMD’s work on a retainer based on specific range of work and hours each month.
#5: Return on Investment
This may be the most important advantage. Working with a VMD, allows you customize the marketing investment to your specific needs. Begin by determining a well define scope of services to achieve your goals. Your priorities should provide both tangible and measureable results. Keep in mind that good marketing takes time and cannot be randomly turned on and off, so it’s important to focus on the long road ahead and include regular update meetings to review your progress and adjust as necessary.
As we move into the 4th quarter, this is a perfect time to be working your 2017 marketing plan. Start by defining very specific and measurable goals that are both reasonable and achievable. Then, leverage the very best marketing resources and partners that fit both your need and budget.
Thanks to Doug Heikkinen, publisher of IRIS, for inspiring me to write this article. When we recently met in NYC, and Doug said ”I always remind contributors to write specifically about what they do” As always, I hope this article has provided you with useful information, insight, and ideas to take action.
The Lies Spread by Bankers About Cryptocurrencies
I had a chat with The Financial Times the other day, and provided lots of background as to why I don’t think cryptocurrencies are the choice of criminals. The comment that was reported was the following:
Chris Skinner, a financial technology author, said it was “complete rubbish” to suggest the main use of cryptocurrencies was criminal. “There is some criminal activity associated with some cryptocurrencies but it is quite minimal,” he said. “It’s a myth that the financial community want to promote.”
I feel I need to explain this further, so here goes.
My response was in answer to Vasant Prabhu, Chief Financial Officer of Visa (the card network) who made two claims:
1) Most people have no idea what they’re doing with cryptocurrency investments; and
2) Cryptocurrencies are mainly being used by criminals.
With the first point, I agree. In fact, I loved the John Oliver Show that discussed crypto and started with the line that cryptocurrencies are “everything you don’t understand about money combined with everything you don’t understand about computers”. A perfect combination for idiots to invest in. I agree with both Vasant and John, as many people are buying cryptocurrencies for no other reason than other people are buying them.
The second point I completely disagree with. Mr Prabhu said cryptocurrencies were a “favourite” for criminals.
“It’s very hard to get dirty money through a banking system. Cryptocurrency is phenomenal for all that stuff . . . Every crook and every dirty politician in the world, I bet, is in cryptocurrency.”
This is complete baloney and is a smokescreen being created by financial people to deflect the real purpose of cryptocurrencies, which is to use software and servers to manage value rather than buildings and humans. In other words, cryptocurrencies have the opportunity to reduce or even replace banks, which is why I find it interesting how often I hear a financial person say that bitcoin and cryptocurrencies are just for criminals when it’s blatantly not true. Unfortunately because they are in a position of authority, politicians believe them; and unfortunately, because they are also in a position of authority, the media believes them; and unfortunately, because they are in a position of authority, the public sometimes believes them too.
Most law enforcement authorities however, state that the levels of criminal activity with cryptocurrencies is so tiny today that it doesn’t matter and, specifically, does not warrant deflecting their time and energy to investigate them. Just to illustrate this, the total worldwide investment in all cryptocurrencies is around $300 billion today. Even if criminals were running 10% of that, it’s still just $30 billion. That is an insignificant amount compared to the trillions being laundered through the traditional financial system, mainly through offshore companies buying up properties.
From The Telegraph, November 2017:
Organised crime generates income equivalent to around 2.7pc of global GDP. Around $1.6 trillion of this is laundered to disguise its criminal origins: financial crime is undoubtedly a worldwide problem.
From What Mortgage, February 2018:
Julian Dixon, CEO of Fortytwo Data, whose research found that more than a third (37%) of all suspicious activity reports (SAR) across the entire legal sector were related to property: “For criminals, the vast amount of cash involved in property purchases provides the perfect cover for laundering the proceeds of drugs, terrorism and firearms offences.
From The Times, February 2018:
Rob Wainwright, director of [Europol], revealed that 3 to 4 per cent of the £100 billion of illicit cash circulating in Europe is laundered through anonymous digital currencies such as bitcoin.
So that’s around £4 billion max right now. That’s less than a particle of a drop in the ocean of crime globally.
Now, the concern may be that cryptocurrencies offers the opportunity to launder funds. This is possibly true and is why I said there is some criminal activity with some cryptocurrencies which is tiny today, but might grow over time. Even then, it is speculative and too early to call. For example, that paragraph from The Times is factually incorrect, as bitcoin is not anonymous. In fact, nearly all digital transactions can be tracked and traced online, and therefore offer the worst use case for money laundering.
This is why the only currency that criminals currently use in any volume for illicit activity is Monero, because it is nearly an equivalent of digital cash. Nevertheless, the total market cap of Monero is $3 billion, and even if half of that is criminal activity, it’s totally insignificant on a global scale.
All in all, it is obvious that most financial people have created this myth of criminals opting for cryptocurrencies for two reasons:
1) it is to protect their turf, as they don’t want to lose their role as intermediators of finance; and
2) it is to deflect the authorities from looking at the true perpetrators of illicit monetary activity, namely the banking system.
Bear these two points in mind when I say that banks were built for the physical distribution of paper, which is why cash and property are the physical assets that are the preference of criminal choice. If you didn’t know it, London is actually the money laundering capital of the world:
- British registered companies and British-based banks helped move at least $20 billion of the proceeds of criminal activities out of Russia between 2010 and 2014.
- Transparency International’s research found 766 UK corporate vehicles involved in 52 large scale corruption and money laundering cases approaching valuations of £80 billion.
- Around half of the 766 companies alleged to have been involved in high-end money laundering were based at just eight UK addresses.
- The Home Affairs Select Committee hearings found that the London property market is the primary avenue for the laundering of £100 billion of illicit money a year. No wonder first time buyers cannot get on the property ladder.
If anything is the preferred market for money launderers then it is banks, not cryptocurrencies. No wonder financial people are trying to deflect the media elsewhere.
Bottom-line: as all things move to digital distribution of data, the trail to audit such movements get easier because they can be sniffed out and monitored; as a result, most criminal activity will continue to leverage the weak links in the chain, which is the physical distribution of paper through cash and property assets in the traditional financial system.
I’ve written a lot on this in the past and would point to these two blog entries for more:
- Laundering-as-a-Service (a bank USP)
- Money laundering is most likely to wash with your local estate agent
And there’s also a lengthy but worthwhile read about why bitcoin cannot be regulated, as it is protected by America’s first amendment and the right to free speech.
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