5 Branding Myths Debunked

Myth 1: Offering a consistent and great product will produce a successful business. Is the quality of your product or service important? Of course it is, but it has very little to do with how successful your new or established business will become. The truth is that some very profitable, successful brands offer a marginal product while some failing businesses offer amazing products. The success of your brand venture is dependent on much more than just the quality of your product. Don't fall into the trap of thinking that creating the perfect product or service will have the world beating a path to your door. Your superior product or service will make you proud, but it won't make you money by itself.

Myth 2: The more you spend on advertising, the more profitable you will become. You'll hear this mantra from every advertising salesperson out there. Unfortunately, constant repetition gives this myth credibility. If you do anything in business just because it's what everyone else is doing, you're in big trouble. Many current brands spend huge amounts of money on their monthly advertising budget; most of this money is wasted on ineffective ads. There are much smarter ways to build a brand. Don't get me wrong; there is a place for advertising in branding--but it's brand maintenance, not brand building. Advertising lacks the credibility that building a brand requires.

Myth 3: Word-of-mouth and referrals will make you a successful, profitable business. This myth is the major cause of failure for underfunded startup brands. I've heard many new business owners say that they don't spend a penny on advertising or any other branding method because they're waiting for "word-of-mouth" to kick in and build their brand. Years ago this was possible; in a small industry without a lot of brand competition or mass messaging, it didn't take long for word to spread. Those days are over, though. With a different customer attitude and the many options available to the consumer, waiting for word-of-mouth to build their brands leads many businesses to shuttered doors. It's a great way to increase business over time, but it isn't something to base your business plan and success on. It isn't proactive, and it simply doesn't work in today's competitive climate. It's wishful thinking, not a realistic business plan.

Myth 4: You need to possess a wide range of skills to become a successful entrepreneur and brand. I've met many personable, skilled, well-organized, business-minded individuals who failed to create a profitable brand. If you're great with people, a real motivator, good at accounting and a hard worker, sure, you'll have an advantage. But the truth is that even if you have none of those skills or attributes, you can still be an extremely successful entrepreneur. There's one brand-building skill that most businesses don't even consider. If you master this skill and make it your No. 1 priority, you can launch as many successful brands as you wish. Here it is: daily marketing. Notice I didn't just say marketing, I said daily marketing. I've never met a business owner who made this task his or her No. 1 priority and didn't succeed.

Myth 5: The costs to brand your business (including advertising, PR, marketing and social media), are enormous. So many people believe this myth that it's practically written in stone. Yes, many new brands fail because they lack funding. But you don't need to spend a fortune to launch or grow a successful brand. I started my agency with no capital, using all of the tools available on social networks and through online and print media. You should focus on marketing to larger markets online and build your credibility through media features and placements.