Richard

When the latest version of ChatGPT was released in May, it came with a few emotional voices that made the chatbot sound more human than ever.

Listeners called the voices “flirty,” “convincingly human,” and “sexy.” Social media users said they were “falling in love” with it.

But on Thursday, ChatGPT-creator OpenAI released a report confirming that ChatGPT’s human-like upgrades could lead to emotional dependence.

“Users might form social relationships with the AI, reducing their need for human interaction—potentially benefiting lonely individuals but possibly affecting healthy relationships,” the report reads.

Related: Only 3 of the Original 11 OpenAI Cofounders Are Still at the Company After Another Leader Departs

ChatGPT can now answer questions voice-to-voice with the ability to remember key details and use them to personalize the conversation, OpenAI noted. The effect? Talking to ChatGPT now feels very close to talking to a human being — if that person didn’t judge you, never interrupted you, and didn’t hold you accountable for what you said.

These standards of interacting with an AI could change the way human beings interact with each other and “influence social norms,” per the report.

Say hello to GPT-4o, our new flagship model which can reason across audio, vision, and text in real time: https://t.co/MYHZB79UqN

Text and image input rolling out today in API and ChatGPT with voice and video in the coming weeks. pic.twitter.com/uuthKZyzYx

— OpenAI (@OpenAI) May 13, 2024

OpenAI stated that early testers spoke to the new ChatGPT in a way that showed they could be forming an emotional connection with it. Testers said things, such as, “This is our last day together,” which OpenAI said expressed “shared bonds.”

Experts, meanwhile, are questioning if it’s time to reevaluate how realistic these voices can be.

“Is it time to pause and consider how this technology affects human interaction and relationships?” Alon Yamin, cofounder and CEO of AI plagiarism checker Copyleaks, told Entrepreneur.

“[AI] should never be a replacement for actual human interaction,” Yamin added.

To better understand this risk, OpenAI said more testing over longer periods and independent research could help.

Another risk OpenAI highlighted in the report was AI hallucinations or inaccuracies. A human-like voice could inspire more trust in listeners, leading to less fact-checking and more misinformation.

Related: Google’s New AI Search Results Are Already Hallucinating

OpenAI isn’t the first company to comment on AI’s effect on social interactions. Last week, Meta CEO Mark Zuckerberg said that Meta has seen many users turn to AI for emotional support. The company is also reportedly trying to pay celebrities millions to clone their voices for AI products.

OpenAI’s GPT-4o release sparked a conversation about AI safety, following the high-profile resignations of leading researchers like former chief scientist Ilya Sutskever.

It also led to Scarlett Johansson calling out the company for creating an AI voice that, she said, sounded “eerily similar” to hers.

Though temps in Paris for the 2024 Olympic Games may be sweltering, the pool where the Olympic swimmers, divers, and water polo players compete still needs to be heated. But the Paris Games isn’t heating the water in a traditional way — it’s using excess heat from AI servers to warm the pool.

In Saint-Denis, France, the American data company, Equinix, operates a mass AI training site called PA10. AI data centers are known to emit mass quantities of heat and energy due to the many servers needed to train AI language models for popular applications like OpenAI’s ChatGPT and Meta’s Llama.

Related: How Much Do Olympic Athletes Earn When They Medal in Paris?

In the process of firing up the servers, PA10 is filled with excess heat and energy, which is then funneled into pipes sent to a local energy system run by Equinix, which sends the heat to the Olympics Aquatics Center to help warm up the pool.

The excess energy is also sent to roughly 600 homes in the Saint-Denis neighborhood. Equinix told Wired that it expects the center to produce enough energy to heat 1,000 homes when it reaches full capacity.

Related: Google Pulls Olympics Gemini AI Commercial After Criticism

It’s a mutually beneficial system as Equinix can spend less money and energy on cooling PA10 since the excess heat is being exported elsewhere.

The 2024 Olympic Games are set to conclude on August 11.

Though U.S. mortgage rates are now at their lowest level in 15 months, home prices are still high.

As the U.S. faces a shortage of 4.5 million homes, construction company Icon is using 3D printing technology to mass-print houses — and it’s wrapping up the final properties in a 100-home, 3D-printed community in Georgetown, Texas.

Icon uses a 45-foot-wide 3D printer and fills it with a combination of concrete powder, water, sand, and other materials. The printer then pipes the mixture, layering it until it stacks up to form a house.

Related: I Designed My Dream Home For Free With an AI Architect — Here’s How It Works

The project to build 100 of these 3D-printed homes in Georgetown, Texas, started in November 2022 and is slated for completion by the end of the summer, according to a Reuters report.

How it’s going….how it started. 95 homes printed & a few more to go at Wolf Ranch. https://t.co/pX4iDWHXSB pic.twitter.com/6C3IeKgFOy

— ICON (@ICON3DTech) May 31, 2024

The homes are single-story, three to four-bedroom structures that take up 1,500 to 2,000 square feet.

Each one costs between $450,000 and $600,000. In comparison, the median listing home price in the area was $499,900.

The exterior and interior walls of each home are made out of 3D-printed concrete, which Icon says can hold up in extreme weather.

Icon says that 3D-printed homes have several advantages over traditionally made ones. The company claims that the concrete materials make the home soundproof, energy-efficient, and carbon-friendly.

The homes also take less time and money to build—one human crew and one robot could replace five different human crews, the company says.

Icon has sold about 25 of the homes in the community so far. One resident told Reuters that the house “feels like a fortress” capable of withstanding a tornado.

Besides 3D-printed homes, Icon is also testing an AI architecture bot that can churn out floor plans for a dream home.

‘A Brief History of the Future’ on @PBS is a unique six-part documentary series about our futures and how we can reimagine them.

Hosted by @AriW, directed by @Andrew_Morgan ✨ ICON on ep5 pic.twitter.com/o6p8f9wmWx

— ICON (@ICON3DTech) May 10, 2024

By 2027, 23% of jobs will transform, leading to the creation of 69 million new positions but the loss of 83 million existing ones. This will open an opportunity for innovative and emerging professions to take center stage, catering to the evolving needs of the digital age.

Among these future-focused careers are roles specifically designed to handle the immense growth of data and the increasing complexity of financial technologies. If you’re entering the workforce in the next few years or seeking a career change, you should consider these 10 lucrative jobs that will be in demand in the future.

Related: The 30 Best High-Paying Jobs of the Future

1. User-Generated Content Creator

User-generated content (UGC) is considered one of the most authentic forms of advertising, influencing purchasing decisions for 70% of Gen Z and 78% of millennials. With the growing importance and application of UGC in marketing, there’s also an increasing demand for UGC creators. Because UGC creators are peers rather than celebrities, they allow brands to build trust with their audience and humanize marketing. At the same time, their content production process can be much more cost-effective than other types of promotional content.

2. Dental Robotics Engineer

The medical field is set to create 45% of new jobs in the U.S., reflecting a growing demand for skilled professionals. As both medical robotics and AI technologies advance, there will be increased growth in AI-related positions in healthcare. Employment for dentists is projected to rise by 4% from 2020 to 2030. A dental robotics engineer, focusing on enhancing precision and efficiency in dental procedures, designs and programs diagnostic and surgical tools, tests and optimizes systems and ensures regulatory compliance while collaborating with dental professionals and staying updated on technology advancements.

3. NFT Curator

NFTs are expected to generate $2.378 billion in revenue in 2024 and expand into new and diverse sectors. An NFT curator selects and manages digital artworks tokenized as NFTs, working with artists to create and promote virtual exhibitions. They research market trends, ensure asset authenticity and educate the public about NFTs. Key skills include artistic knowledge, blockchain proficiency, analytical abilities and marketing expertise. With experience in art curation or digital marketing, NFT curators will bridge traditional and digital art as the NFT market expands.

4. Self-Driving Software Developer

The global self-driving car market was valued at $121.82 billion in 2023 and is expected to reach $2,354.12 billion by 2030. A self-driving software developer creates and optimizes software for autonomous vehicles, focusing on real-time decision-making and sensor data integration. Key skills include programming in C++ and Python, machine learning and robotics. The role involves extensive testing, collaboration with hardware engineers and ensuring compliance with safety standards.

Related: Jobs 3.0: How You Can Prepare For The Future Of Work

5. Smartphone Eco-Designer

Ecodesign requirements will come into effect for smartphones, feature phones, cordless phones and slate tablets entering the EU market from June 20, 2025. As this shift takes place, a smartphone eco-designer will play a crucial role in creating environmentally sustainable smartphones, focusing on biodegradable materials and eco-friendly manufacturing processes. They collaborate with engineers and manufacturers to ensure recyclability, reduce electronic waste and promote energy-efficient production, thereby setting new industry standards for sustainability in consumer electronics.

6. Data Extraction Specialist

The role of a Data Extraction Specialist is already established, but as the volume of data worldwide continues to grow dramatically, the demand for this profession will also increase significantly. In 2024, the amount of data created is 402.74 million terabytes each day. Soon, the focus will shift from creating new information to finding and properly structuring existing data. Instead of generating new information, data extraction specialists focus on identifying and extracting the exact information needed and properly structuring it. This profession is poised to become one of the most crucial roles in the future, given the ever-increasing importance of efficiently managing and utilizing vast amounts of data.

7. Blockchain and Crypto Accountant

As the blockchain and cryptocurrency sectors continue to expand, the need for specialized accounting professionals in these fields is growing rapidly. The blockchain and crypto market is projected to reach $4.94 billion by 2030, more than three times its estimated size of $1.49 billion in 2020. Blockchain and crypto accountants will play a critical role in managing and auditing transactions, ensuring compliance with evolving regulations and providing financial insights specific to digital assets. Their expertise will be essential for businesses and individuals navigating the complexities of blockchain technology and cryptocurrency markets, which will make this profession highly sought after in the future.

8. Data-Driven Digital PR Specialist

Another profession that will be in demand in the future is the Data-Driven Digital PR Specialist, who uses data to enhance public relations efforts. A recent study found that 17.5% of respondents noted that quantifiable data improved their digital PR results. These specialists leverage data to craft effective campaigns, target audiences precisely and measure success, making them essential for navigating the evolving digital landscape.

9. Commercial Window Tinting Technician

Commercial window tinting, which applies a protective film to building windows, is increasingly important for improving energy efficiency and reducing UV radiation. By cutting sunlight, it reduces heat build-up and glare, leading to lower air conditioning needs and cost savings. With stricter energy efficiency regulations, the global window tint film market is expected to grow to $15.67 billion by 2030, a 37% increase from 2023. The demand for commercial window tinting technicians is set to rise, solidifying it as a future profession.

Related: Here Are the Best High-Paying and Fast-Growing Jobs for the Next Decade

10. Virtual Real Estate Agent

As the metaverse grows, virtual real estate agents are becoming essential. They handle buying, selling and managing properties in virtual worlds. In 2023, North America held 35% of the metaverse real estate market, underscoring the region’s significant role. These agents will guide clients in acquiring digital assets and navigating virtual landscapes, proving crucial for success in the expanding metaverse real estate market.

The future holds exciting and unpredictable possibilities, and as we navigate this ever-evolving landscape, we’re living in an extraordinary time of transformation and opportunity.

Back in 2006, Harvard Business School professor Noam Wasserman published a paper called “Rich Versus King: The Entrepreneur’s Dilemma.” The dilemma in question was whether, as a founder, you’d prefer to make money or maintain control — the implication being you could not have both.

Wasserman’s reasoning was that if you prefer to get rich, you’re going to need investors, at which point losing control becomes inevitable. If you prefer to be king, you’ll have to fund your venture on your own, meaning your potential for massive growth is null and void.

“Entrepreneurs face a choice, at every step, between making money and managing their ventures,” Wasserman writes. “Those who don’t figure out which is more important to them often end up neither wealthy nor powerful.”

With all due respect to Wasserman, this simply isn’t true. For evidence, one needs to look no further than Spanx’s Sara Blakely, GitHub’s Tom Preston-Werner, Chris Wanstrath and PJ Hyett, or Tough Mudder’s Will Dean and Guy Livingstone, all of whom are bootstrapped founders who launched their companies to profitability with no outside investment.

As a fellow bootstrapped founder myself, I believe there’s a lot of wrong information and inaccurate assumptions about what bootstrapping not only is, but the potential for what it can be.

Related: 3 Essential Skills I Learned By Growing My Business From the Ground Up

Why bootstrapping is still a best-kept secret

Let’s start with the basics: Bootstrapping refers to launching and running a company without outside investments, using whatever capital the founder has on his or her own, and whatever subsequent revenue the company generates.

The opposite of bootstrapping is raising capital through angel investors or VC. These operations tend to get a lot of press for a few reasons: For one, eye-popping funding rounds are seen as newsworthy events, and there’s a powerful public perception that the company that receives large amounts of capital is poised to become a smash success (even though this is far from always the case). Additionally, bootstrapped founders are often more consumed with funneling their resources into building and developing their products than doing PR or media outreach.

The tech company Zoho, for example, became the first bootstrapped SaaS to surpass 100 million users. In responding to a Reddit post on why bootstrapped companies like Zoho don’t get much air time, one commenter replied that the answer was simple: The path is just not as sexy.

“[Bootstrappers] are not on startup meetups, they are not pitching to VCs and they don’t want their money. You focus on your product and your clients, not on your visibility on [the] startup scene,” the commenter wrote.

Related: After Bootstrapping My Tech Company for 25 Years, Here’s What I’ve Realized About Funding

VC-backed growth vs. bootstrapped growth

One of the biggest misconceptions around bootstrapped startups is that they’re the same as small businesses, with the goal of staying small. That’s usually not the case — it certainly wasn’t the case for me. I grew Jotform from a side hustle I did alongside a full-time job to the enterprise it is today, with more than 25 million users globally and over 660 employees across five continents.

Bootstrapped startups are actually every bit as ambitious as the ones that take investments. While their growth may be slower and more incremental than if they received a massive infusion of VC cash, they both share the same objective: Become a large, successful company.

VC-backed startups are often pressured to grow quickly. This can — and does — work, especially if you’re okay with ceding the CEO role to someone with experience in managing that type of expansion. But if your goal is to stay on and grow along with your company, such rapid change can be very challenging.

With bootstrapping, your growth should be steady and continuous. I often think of it in the context of my two eldest kids, now 6 years old and 8 years old, when they began learning to play basketball. When they started training two years ago, they didn’t know how to dribble the ball and their shots didn’t land anywhere near the basket. But over time, they got better and better.

Related: What I Wish I Knew Before Bootstrapping My Startup

I haven’t been taking my kids to practice the last few years because I want them to become professional basketball players (though no complaints if that happens). I take them because learning to play has made them stronger, built their confidence and taught them discipline. But the fact is, getting better has taken time. The effect would not have been the same if they’d spent all day shooting hoops from dusk ’til dawn for a month straight — it’s the consistency that has built them up.

The same goes for bootstrapping. You can’t make a product successful overnight by spending millions of dollars to hire hundreds of employees and buy tons of ads. It takes time to build a good product, and it takes time to learn to be a good CEO. If you plan to be both rich and the king, in Wasserman’s parlance, bootstrapping is the way to go.

There are still a lot of misconceptions about bootstrapping, largely because bootstrapped companies don’t get as much press as those that go the VC route. But through consistent growth, they can — and do — reach the same great heights, often in a more sustainable, long-term way.

How much would Meta have to pay you to clone your voice for AI?

Meta is offering to pay celebrities millions in exchange for the right to capture their voices and use them for AI, according to separate reports from Bloomberg and The New York Times last week. Judi Dench, Awkwafina, and Keegan-Michael Key have all reportedly been asked to be used for an AI chatbot or other unspecified AI product.

Related: Nvidia CEO Jensen Huang Says Mark Zuckerberg’s Vision for the Future of AI Is a ‘Home Run Idea’

Insiders say that Meta is on a time crunch to secure the celebs needed as it looks ahead to its September Connect 2024 event. Last year’s event featured AI chatbots with recognizable faces, including Kendall Jenner, Tom Brady, and Paris Hilton. Meta reportedly paid those celebrities millions of dollars to use their likenesses but stopped the project last week after the AI chatbots failed to gain traction on social media in the year since they debuted.

Snoop Dogg’s “Dungeon Master” Meta AI character, for example, only had 15,000 followers. Kendall Jenner’s “Billie” AI older sister reached 118,000 followers on Instagram. ^{Judi Dench. Photo by John Phillips/Getty Images for BFI}

Celebrity voice cloning has been under the spotlight this year after Meta competitor OpenAI, the company behind ChatGPT, demoed GPT-4o in May and the AI chatbot sounded “eerily similar” to Scarlett Johansson. Johansson noticed the similarity, hired legal counsel, and OpenAI took down the voice.

Related: Can ChatGPT Help Start a Business? I Tried the Latest Version, GPT-4o, to Find Out.

Meta’s AI strategy seems to be less of a one-stop chatbot like ChatGPT and more of a community of AI chatbots with tailored purposes.

Last month, for example, Meta released a new AI studio that allows anyone to make an AI bot that they can talk to. Some popular AI characters in the studio now are therapist coach Luna and Career Catalyst, a bot to talk to about careers.

“It’s all part of this bigger view we have that there shouldn’t just be one big AI,” Zuckerberg said last week at the 2024 SIGGRAPH conference. “We just think that the world will be better and more interesting if there’s a diversity of these different things.”

As the U.S. economy continues to remain volatile, JPMorgan Chase is warning that a recession is not off the table.

In an analyst note published Wednesday, economists at JPMorgan raised the odds of a recession this year from 25% to 35%, noting there’s also a 45% chance of a recession in the second half of 2025.

Related: Stock Market Tumbles After Global Selloff as Investors Panic Over Jobs Report, Economic Indicators

“U.S. wage inflation is now slowing in a manner not seen in other DM [developed market] economies,” the note said. “Easing labor market conditions increase confidence both that service price inflation will move lower and that the Fed’s current policy stance is restrictive.”

The note also said the bank believes the odds of the Federal Reserve will cut rates in September and November 2024.

JPMorgan Chase CEO Jamie Dimon doubled down on the prediction in an interview with CNBC, saying he thinks a recession could be looming.

Related: Jamie Dimon’s Policy Advice for Donald Trump, Kamala Harris

“There’s a lot of uncertainty out there. I’ve always pointed to geopolitics, housing, the deficits, the spending, the quantitative tightening, the elections, all these things cause some consternation in markets,” he said. “I’m fully optimistic that if we have a mild recession, even a harder one, we would be okay.”

The bank’s predictions came after last week’s jobs report where the unemployment rate reached 4.1% in June.

It’s been a volatile week for the Dow, S&P 500, and Nasdaq due to heightened concerns about the U.S. economy.

Simon Sinek’s profound statement, “People don’t buy what you do; they buy why you do it,” is an important message for anyone who wants to make their work matter. This concept is not just about knowing your products or services; it is about identifying what motivates the organization and being able to pass that message across.

I would like to talk about the process of finding and using your “why” and how that changed my company.

Related: An Inspiring Discussion With Simon Sinek About Learning Your ‘Why’

Discovering the “why”

When I started my business, all I was concerned about was the “what” and the “how.” I thought if I made my products better than those of my competitors and provided excellent services, the customers would come running. I and my team spent countless hours refining features, fine-tuning operations and polishing our presentation. However, as much as we tried, we were unable to develop customer relationships that would last. Still, we were lacking something important.

It was, therefore, during a customer feedback session that the turning point was realized. One comment struck a chord: “Great, I like your product, but I don’t personally relate to your brand.” It was an eye-opener. I quickly came to understand that while we had mastered the “what,” we had completely ignored the “why.” The customers were not only looking for a product; they were looking for the reason behind it. They wanted to be a part of something that was greater than a simple purchase.

The process of identifying our “why” was a process of soul-searching. I also thought about what motivated me to set up the business in the first place. It was not just about identifying a need and providing for it; it was the vision of making something that would positively impact people’s lives. This realization led to our purpose statement: “To innovate and bring in solutions that can make lives easier while offering more engaging experiences.”

Communicating the “why”

After realizing our “why,” the next best thing was ensuring that we conveyed it properly. Simply saying what we were about was not sufficient; we had to integrate purpose into every organizational function. Here’s how we did it:

1. Authentic storytelling

It is said that people do not read numbers, but they read stories. We started to explain the story of the company, the problems we met and the inspiration behind the innovations made. This authenticity touched our audience. It made everyone remember that we are real people behind the brand and that there is a lot of passion behind our work. Stories of how our products helped customers also helped to remind us why we do what we do, and they gave us an emotional touch.

2. Consistency across channels

Our “why” had to be evident in every touchpoint, from the website to our social media channels, marketing messages and engagements with customers. This consistent messaging also served to create a powerful, easily identifiable brand image. Each piece of content that was created, each advertisement that was placed, and each customer service call was done with intentionality.

3. Engaging with customers

We also involve our customers in our operations and include them as stakeholders in our company. To achieve our goal, we incorporated the stories, content and updates behind the scenes on social media platforms. We urged customers to express what their “why” is, and we listened as well — which not only helped deepen the bond with the existing customers but also pulled in new customers who are like-minded.

Related: Purpose-Driven Companies Grow 3 Times Faster — So Here’s How to Become One Without Sacrificing Profit.

The impact of a strong “why”

As soon as we fully embraced and shared our “why,” we found that not only was customer retention affected, but overall brand perception and even employee satisfaction were as well. Here’s how:

1. Differentiation in a competitive market

With competition being high, our “why” gave us the much-needed edge. It offered the audience a perspective that was new and provoked an emotional response. This was not just about customers consuming our products; rather they were becoming part of our dream. Such differentiation was effective and allowed us to avoid the competitors who tended to emphasize the features and price only.

2. Building customer loyalty

The consistent and extremely powerful “why” helped cement loyalty. It did so because our customers identified with our brand not only on the service base but also on issues of beliefs. This established the basis of customer loyalty that expressed itself in customer visits and word-of-mouth recommendations. It helped us to become the brand, associating with the ideas and promoting it to like-minded people who can become the clients.

3. Attracting and retaining talent

Our “why” was also instrumental in employee attraction and retention, which are two major considerations for any organization. Employees look forward to participating in organizations that embrace their beliefs and provide some sort of meaning. Turning to the concept of “why” enabled us to enlist like-minded people who were truly interested in our mission and who were willing to bring as much as they could to witness our company’s success.

Practical steps to implement your “why”

Learning and realizing the significance of your “why” may be easy; however, practicing it is a completely different story. Here are some practical steps that helped us integrate our “why” into our business strategy:

1. Bury your “why” into the organizational culture

The “why” must be evident in your company culture and in your day-to-day business. When it comes to the services you offer, please guarantee that you are doing it with a clear objective in mind. It is imperative to recognize wins that indicate a commitment to the “why” and utilize them to teach others about what is at stake and to encourage them.

2. Measure impact and adapt

Quantify the effects of your “why” on your business so that you can track improvement over time. Check levels of customer loyalty, brand impressions and employee satisfaction to see how well you are promoting and embodying your purpose. Apply it in making decisions and consistently enhancing your intervention approach.

3. Engage with your community

Use social media to connect with your audience at a more profound level by telling them why you do what you do and asking them to be a part of the process. By posting pictures, opinions and milestones on social networks, sending newsletters and holding events in the community you influence, you should share stories and updates that reflect your purpose. People should be able to relate to your “why,” and you should encourage your customers to share their own “why” experiences with you.

Related: 3 Ways to Make Sure Every Aspect of Your Business Ties Back to Your Purpose

Finding and sharing our “why” has been one of the biggest game-changers for my business. I have found that it enables us to understand our customers better and has given focus to our development. To recap, your “why” is the essence of your business. Cultivate it, communicate it, and see how it can revolutionize your brand and fuel your business.

Startups fail for a lot of reasons. Bad marketing is one of them — and it’s something entrepreneurs don’t pay nearly as much attention to as product development or raising capital.

I’m a professor at a leading business school, Babson College, and have spent most of the last three decades helping aspiring entrepreneurs learn how to market their businesses. Marketing can boost sales, help your company live up to its potential and enable internal alignment around goals.

Many entrepreneurs, however, are confused about the role of marketing. Some treat it as an afterthought. Some push too far, overpromising benefits they can’t deliver. Others don’t go far enough, failing to leverage marketing to generate employee, stakeholder and customer buy-in.

Here are three of the most common misconceptions about marketing, and what your business should do instead.

Related: Failed Startups Made These 7 Marketing Mistakes — Are You Making Them, Too?

Myth #1: Marketing is about selling your product’s features

One of the things I admire most about entrepreneurs is their passion. The founders I teach and advise are steeped in the details of their products, while carrying the big-picture conviction that what they’re working on could be a game-changer.

Entrepreneurs’ passion, however, can create blind spots. For example, founders are often so excited by what they’re building that they begin with their product’s characteristics and ask: “How can I convince customers of the value of these features?”

The result is a disconnect between entrepreneurs, who are immersed in what they’re offering, and customers, whose attention is often focused on solving their own problems.

What you should do instead

As painful as it may be to admit, entrepreneurs should recognize that customers largely don’t care about the careful thought that goes into a product. What they really care about is solving their problems.

Every startup began by thinking about a customer problem. But as time goes on, entrepreneurs can lose sight of this north star and get bogged down in a laundry list of specific features.

To articulate true value to consumers, reach back to the earliest stages of your company’s development when you were constantly asking, “What need is there to build this?” Marketing should start from this customer-centric viewpoint and work backward to the product, rather than start with the product and rationalize why customers should care.

Related: The Ultimate Guide to Startup Marketing and Growth Strategies

Myth #2: Marketing requires you to go big or go home

Entrepreneurial passion can also fuel overly ambitious marketing in which companies exaggerate benefits or even misrepresent reality.

This happens more than you might think. One Gallup poll found that “only 27% of employees strongly agree that they always deliver on the promises they make to their customers.” Overpromising about what your product can do almost always catches up with your company, and can lead to financial, reputational and legal consequences.

That’s true for defunct startups like Theranos, which claimed to offer revolutionary blood testing technology, or FTX, which supposedly heralded a new era in cryptocurrency. It’s also true for established companies. Gerber settled false claims that one of its baby formulas prevented allergies. Volkswagen’s deceptive “Clean Diesel” campaign led the world’s top-earning automaker to pay $25 billion in fines.

What you should do instead

Marketing departments must balance being bold with being honest, never letting the urge to go big outweigh reasonable expectations of what the company can deliver. You can inspire customers with an overall vision without leading them on using specific promises.

When your company crafts its next marketing campaign, be sure that you aren’t promising more than you can follow through on. Keep tabs on whether your product underperforms — and if it does, raise the issue with product teams and adjust your messaging as soon as possible. Marketing’s role isn’t just to articulate value; it’s also about helping ensure you deliver it.

Related: 10 Effective Growth Marketing Hacks and Strategies for Your Startup

Myth #3: Marketing is just about selling to potential customers

Another mistake entrepreneurs make is treating marketing as only about selling a product to customers. That’s a big part of it. But marketing is also about getting your team on the same page and securing their buy-in.

A lack of internal alignment is more common than you think. Another Gallup poll found that only 41% of company employees “know what my organization stands for and what makes our brand different from our competitors.” Imagine that: Most people at your company may be unsure what your brand is about or what makes it compelling. That results in employees who are less engaged and less effective.

This is a huge gap where marketing can and must step in. An effective marketing function helps align every employee on your team around the company’s value proposition, market and customer segments.

What you should do instead

Rather than bring on marketing later in your company’s development to sell what’s already been created, integrate it from the very beginning. Use marketing to ensure that everyone within the organization has a sense of the company’s core value proposition.

You might launch an internal marketing campaign aimed at strengthening employee buy-in. Or host a pop-up event that blends employee appreciation with an attempt to communicate the company’s mission. The key is message consistency. Don’t take for granted that employees understand the founders’ vision.

Related: 6 Innovative Marketing Strategies Designed for Startups

Bottom line

In an age where technology is developing so rapidly and companies regularly promise what seems like science fiction, it is more important than ever to use marketing to craft and deliver compelling value and enable organizational, market and customer focus.

Disney reported its Q3 2024 earnings on Tuesday, and though the company saw wins in its streaming division, its namesake theme park experiences didn’t have the same results.

The company reported an operating income decrease in Q3 of 3.3% to $2.22 billion in its Experiences segments, which includes its theme parks both domestically and overseas.

Related: Disney World and Disneyland Are Hiking Ticket Prices. Here’s How Much and When It Goes Into Effect.

Operating income for the Parks division in the U.S., specifically, was down 6% though operating income for International Parks was up 2% and overall revenue for Experiences was up 2%.

“We expect to see a flattish revenue number in Q4 coming out of the parks,” said Disney Chief Financial Officer Hugh Johnston on a call with investors. “It’s really just a few quarters. I don’t think I would refer to it as protracted, but just a couple of quarters of likely similar results.”

Disney blamed inflation and higher costs inside the parks, though Johnston noted that consumers are still “reluctant to cancel vacations” and that there might not be a reason to sound the alarm just yet.

“We saw a slight moderation in demand, I certainly wouldn’t call it a significant change,” Johnston said. “I would just call this a bit of a slowdown that’s being more than offset by the entertainment business.”

In October 2023, Disney raised prices for single and multi-day tickets at Disneyland in California and Walt Disney World in Florida.

Single-day ticket prices increased by nearly 9% at Disneyland, while Disney World annual passes increased by 10% per tier.

“We are constantly adding new, innovative attractions and entertainment to our parks and, with our broad array of pricing options, the value of a theme park visit is reflected in the unique experiences that only Disney can offer,” a Disney spokesperson said in a statement at the time, per CNBC.

Related: Report: Food Prices At Disney Have Increased 60% in 10 Years

Overall, Disney’s operating income was up 19% to $4.225 billion in Q3, thanks to strong wins in the company’s Entertainment segment, which includes streaming and Disney+.

Also on Tuesday, Disney announced in a press release that it is raising prices on its streaming platforms (Disney+, Hulu, ESPN+) by around $1 to $2 more a month.

Disney was down over 4.4% in a 24-hour period on Wednesday afternoon.