Business Lunch Podcast Summary

Episode Title: Marketing Missteps: What Went Wrong at TNC?
Host: Roland Frasier
Release Date: November 29, 2024

Introduction

In this episode of Business Lunch, host Roland Frazier engages in a deep-dive conversation with Ryan Dice to dissect the factors that led to the downfall of TNC (Traffic and Conversion Summit). Drawing from their firsthand experiences, Frazier and Dice explore the complexities of acquisitions, marketing strategies, community building, and the unforeseen impact of the COVID-19 pandemic on business events.

Acquisition Challenges and Misalignment

Key Discussion: The conversation begins with an analysis of the acquisition of TNC by Clarion. Ryan Dice emphasizes the importance of understanding the true value behind an acquisition:

Ryan Dice [00:00]: "What is the asset value behind what you're buying... it was a community based event."

Dice highlights that TNC was fundamentally a community-based event rather than just a content or expo-based one. This distinction was critical in understanding the missteps post-acquisition.

Roland Frazier [00:30]: Discusses the immediate aftermath of the deal in 2019, where Clarion sought to replace the existing team. He explains that Clarion's lack of understanding of TNC's unique business model—focused on content rather than an expo marketplace—led to strategic misalignments.

Marketing Missteps and Execution Failures

Key Points:

• Corporate Constraints: Clarion’s marketing team lacked the expertise in direct response marketing that was pivotal for TNC's success. Budget constraints further hindered effective marketing strategies.

• Affiliate Sales Blockade: One significant misstep was Clarion's refusal to allocate commissions for affiliate sales, directly opposing TNC’s proven marketing tactics.

Ryan Dice [06:52]: "They weren't doing anything to build the Traffic and Conversion Summit community."

• Impact of Decision-Making: Decisions were often influenced by financial gatekeepers ("bean counters") who prioritized budget constraints over strategic marketing needs, leading to stalled momentum even before the pandemic struck.

The Impact of the COVID-19 Pandemic

Discussion: Frazier and Dice agree that while the pandemic severely affected TNC, the event was already struggling with declining ticket sales and strategic misalignments. The combination of pre-existing issues and the pandemic created an insurmountable challenge for TNC's revival.

Roland Frazier [11:53]: "They had all of the clarion companies like options and everything became worthless."

Lessons Learned from the Acquisition

Insights:

• Importance of Asset Valuation: Understanding and valuing the true assets—like community and content—are crucial during acquisitions.

• Negotiating Protective Clauses: Including floors in agreements and favorable covenants not to compete can safeguard the original business’s momentum.

Ryan Dice [12:15]: "Don't bank on that carried interest when you're doing it, and if you can get a floor."

• Need for Embedded Editorial: To maintain community engagement, acquiring companies should invest in embedded editorial resources to understand and nurture the community.

Rebuilding and Future Directions

Future Planning: Ryan Dice expresses a strong belief in the necessity of rebuilding a community-centric event. He advocates for a community-first approach, emphasizing the need for a new event that aligns with modern marketing landscapes.

Ryan Dice [16:14]: "This community needs an event and nothing else has stepped into the void."

Event Models Discussion: The duo debates the ideal structure for future events, contrasting large, highly energetic gatherings with smaller, more intimate settings. They agree that going too far into the middle ground can lead to failures reminiscent of TNC’s experience.

Ryan Dice [32:20]: "I think it either needs to be more small and more personal... Or it needs to be this place where everybody is there and it's a festival."

Emotional Impact and Personal Reflections

Personal Insights: Both Frazier and Dice share their emotional investment in TNC's journey. Ryan Dice reveals a sense of loss and mourning over the event's demise, highlighting the personal and professional toll it took.

Ryan Dice [26:40]: "I'm personally sad... I was emotionally impacted by it."

Current Ventures and Moving Forward

New Initiatives: Roland Frazier introduces their new event, Get Scalable Live, which focuses on business discussions rather than solely marketing. This event is designed to remain small and intimate, catering to bootstrapped entrepreneurs.

Roland Frazier [35:56]: "We've built another large multimillion dollar profitable event in the meantime... Get Scalable Live."

Ryan Dice reinforces the commitment to maintaining smaller, more personalized events while remaining open to evolving strategies based on community feedback.

Ryan Dice [36:30]: "We're going to keep it intentionally small... Maybe that is the new direction."

Conclusion

Roland Frazier and Ryan Dice conclude the episode by reflecting on the valuable lessons learned from TNC's challenges. They emphasize the importance of community, strategic alignment in acquisitions, and the need for innovative marketing approaches. The episode serves as a blueprint for entrepreneurs and business strategists aiming to navigate the complexities of event management and acquisitions.

Notable Quotes

• Ryan Dice [00:00]: "What is the asset value behind what you're buying... it was a community based event."
• Roland Frazier [00:30]: "They didn't know the market and they didn't know the audience... it just didn't follow the playbook."
• Ryan Dice [06:52]: "They weren't doing anything to build the Traffic and Conversion Summit community."
• Ryan Dice [12:15]: "Don't bank on that carried interest when you're doing it, and if you can get a floor."
• Ryan Dice [26:40]: "I'm personally sad... I was emotionally impacted by it."
• Ryan Dice [32:20]: "I think it either needs to be more small and more personal... Or it needs to be this place where everybody is there and it's a festival."

Final Thoughts

This episode of Business Lunch offers a candid exploration of the pitfalls in business acquisitions and event management, underscored by personal experiences and strategic insights. For entrepreneurs and business leaders, Frazier and Dice provide a compelling case study on the essential elements that sustain a thriving community-based event.

For more insights and to join the conversation on rebuilding community-centric events, visit digitalmarketer.com gather and share your thoughts through their survey.