The Law of Compound Information in Marketing: Timing is Everything

by Marcus Sheridan

compound_informationI was speaking to a client a couple of days ago who, up to this point as a business owner, has basically done squat as a content marketer. In other words, he has no blog, he has done no video, and just isn’t currently thinking like a consumer.

Notwithstanding these shortcomings though, this guy has already placed himself in front of many in his niche just by merely recognizing he has marketing and branding ‘issues’. After talking for a while regarding his next steps, he asked me the following question:

So let’s just say I keep things like they are this year and then when I have a little more time, I get going with all this inbound marketing stuff??

My response was simple:

You don’t understand the Law of Compound Information.

Timing is Everything

Most of us have heard about Compound Interest in the past. For anyone looking to garner a financial nest egg and live a financially sound retirement, this action is usually a must. Here is what Wikipedia says regarding the subject:

Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also itself earns interest. This addition of interest to the principal is called compounding. A bank account, for example, may have its interest compounded every year: in this case, an account with $1000 initial principal and 20% interest per year would have a balance of $1200 at the end of the first year, $1440 at the end of the second year, and so on………

Without having a deep economic discussion here, compound interest equates to your money’s ability to grow over time. And what will impact this growth curve the most?  When it comes down to it, there are 3 main factors. Wiki states further:

The effect of compounding depends on the frequency with which interest is compounded and the periodic interest rate which is applied. Therefore, in order to define accurately the amount to be paid under a legal contract with interest, the frequency of compounding (yearly, half-yearly, quarterly, monthly, daily, etc.) and the interest rate must be specified.

What does this mean for your business?

We’ve all heard that inbound/content marketing is an investment. But just like any investment, your return on said investment (ROI) will be greatly impacted by the following economic principles:

Frequency

This is huge. How often are you blogging? How often are you adding video to your site? Are you constantly looking for ways to add new pages to your site or has it been stuck on the same number for the last 6 months?

Hopefully you see what I’m saying here. Your two biggest customers, Search Engines(like Google) and consumers(anyone that might buy something from you) need to be fed great information often so as to give you respect and love. This may sound too simplistic but it’s incredibly true. Understand that each and every article you write gives Google more opportunity to look at your site, notice your value to the consumer, and then show you on the first page for more and more key phrases in your niche. By simply compounding your articles and the information therein, your organic search results will only continue to go up.

Furthermore, when consumers constantly see you giving more and more useful information to anyone who cares to listen, respect is garnered and your brand awareness naturally climbs. I’ve seen this process again and again and frankly it’s a beautiful thing.

The Value of the Interest (Information) Rate

I equate this one to the value of the information you’re actually giving consumers. To give you an example, let’s say your company blog is a glorified calendar and sales pitch. Because all you ever talk about in your blog posts is how great your company’s products and services are, as well all of your ‘amazing accomplishments’; the value to the consumer will be low. In fact, they’ll quickly cover their eyes and ears because you’re not actually helping them.

But if your blog is all about the consumer—if  it teaches them everything there is to know about your product/service—then you’re going to get major love. People will read you often. Links will come your way from other websites. And because of this, Google will again look upon your site with a smile and rank you higher and higher in organic search results.

Time

What’s the first thing anyone talks about when saving to build wealth? That’s right, TIME. Timing , in many ways, is everything. For example, if you invest $100 a month into some type of savings plan at the age of 20 and don’t touch your money until you’re 50 you’ll have way more money than the 50 year-old guy that started investing $200 a month when he was 30. The simple reason for this is timing.

This is why it’s a terrible idea to just wait to embrace content and inbound marketing. The company that started writing 2 great blog articles a week 5 years ago is CRUSHING the company that started writing 4 great articles a week 2 years ago. Although this may not sound fair to some, it’s the facts. Just look around the web and you’ll start to see exactly how the principal of compound information really works and is critical for any business.

So please consider this reality as you consider content/inbound marketing for your business. The idea of ‘waiting for a better time’ makes no sense. Start compounding your information today. Start getting noticed by Google and consumers today. I can assure you that if you do decide to wait, your business will be sadly left behind by those businesses that were actually willing to see the big picture and embrace the mind of the 21st century consumer.

What are your thoughts on ‘compound information’? Has it worked for your business? As always, your thoughts are invited and appreciated.

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