Operating a business today is a lot different than it was operating a business twenty or thirty years ago. The world we live in now, requires business owners to have an online presence to compete and maintain top of mind awareness with their target market. 

Social media has really changed the business game because everyone is trying to reach their ideal prospects on social networks: via Facebook, YouTube, Twitter, LinkedIn, Instagram or any number of other platforms. The challenge is whether to go for popularity or profitability. The truth is popularity doesn’t always equal profits. However, being a profitable brand, even if you’re not so popular or socially famous, is definitely the way to go.

Watch this video as I dive into three distinct differences in having a popular brand versus a profitable brand.

Popularity vs. Profitability in Branding with Lori A. Manns

Below, I’m sharing a little more insight about these three key distinctions between having a brand that is popular versus profitable. In my humble  opinion,  it pays to focus on being profitable because you can always grow a fan base (and increase popularity) after you’ve made enough money to do so.

Distinction #1 – Influence

Influence is about the ability to have an effect on someone or something. When your brand influences behavior, you have a profitable brand. When you, as the owner of your business have an effect on your prospects and ideal clients, you are an influencer. Having the capacity to influence people to do something, go somewhere or buy something is priceless. 

All you have to do is look at the most widely known and recognized endorsement deals to understand how powerful influence is. Michael Jordan has been a celebrity endorser for Nike for many years. His name and face is almost synonymous with the Nike brand. 

One might argue that it was his popularity that gained him the million dollar contract, however the flip side of that coin is that he had the ability to influence. People trusted Michael Jordan and his recommendations and that’s why he got the contract. During his time in the NBA, his record was stellar and his reputation was nearly flawless on and off the court. Not every, popular athlete gets a million dollar endorsement deal….year after year like Jordan did. Today, largely in part because of his endorsements, Jordan is a billionaire.

Distinction #2 – Income

When you have a profitable brand, the money will be there. And even if you happen to have a dip in profits, you are likely to recover with a few tweaks or adjustments. Profitable brands have repeat customers and referrals that translate into consistent revenue.  Popular brands are not always making money, nor are they always profitable.  Just ask Blockbuster and Toys R Us. Oops you can’t, because they no longer exist. These brands were nationally known in the USA and were very popular for a long time, but went belly up for many different reasons. This goes to show, popularity will only get you so far.

The fact is, being popular doesn’t equal getting sales. People may know who you are (or who your company is) and what you do, but if they are not buying from you, it’s no good.

However, when you are profitable brand, you are consistently staying up with trends and marketing strategies to make sure you remain a brand in demand.

Distinction #3 – Impact

When you are a profitable brand, you are making a difference in the lives of your customers.  Impact points to the fact that you have customers that are loyal and your product or service produces a result for them which is why they keep buying. Impact also translates into testimonials and case studies. If you can’t point to satisfied customers who are willing to speak on your behalf, chances are you are not a profitable brand. 

Popular brands do not always have customers that are raving fans. They may have people who know they exist, but not necessarily people who buy from them. 

If you focus on solving a problem or meeting a need for your target customers, you will undoubtedly become a profitable brand and become popular in due time.

What about you? Are you focusing on being popular, profitable or both?

Go ahead, weigh in with your “two cents”, via the comments below. I’d love to hear from you.

Author, Lori A. Manns is a multi award-winning marketing mentor, sales coach and trailblazing business strategist who works with small business owners and entrepreneurs to help them grow and scale their businesses. She specializes in sales and marketing strategies that result in her clients attracting their target market, gaining brand visibility and growing revenue. Lori is President of Quality Media Consultant Group, a consultancy firm specializing in media, advertising, marketing and sales. She is the  founder of the Trailblazer Business Academy. where advancing entrepreneurs go to learn growth strategies and how to run a profitable business the soulful way. Lori is also the creator of the Sponsorship Sales Secrets System;™ which shows business owners how to get more corporate sponsors and sales for their business, guaranteed. To learn more about the work Lori does to help business owners and entrepreneurs all across the U.S. to accelerate their revenue and succeed in business, visit www.qualitymediaconsultants.com