Monday, April 18, 2011

Happy Tax Day!

For once, tax day is actually quite happy for me thanks to the fact that I was able to claim my wife's tuition expenses as a "Reduction in Income" so I got a huge return. Happy Tax Day to me!

For the most part, though, it seems like all people do is complain about taxes. The government can never win. Liberals complain that the rich pay too little; Republicans complain that they pay too much; and everyone, political alignments aside, thinks they personally pay too much.

So here are some interesting facts about taxes and those who do and don't pay them:

  • The richest 1% of Americans earn 22% of the nation's income, but pay over 38% of the nation's federal income taxes.


  • 47% of Americans (mostly low-income) pay ZERO federal taxes.


Keep this in mind next time you vote!

Friday, April 15, 2011

The Power of Words

Anyone who works in marketing needs to watch this!


Wednesday, April 13, 2011

A Former Intern's View: Why Azul is Soaring

I have been reminiscing about my experience at Azul Brazilian Airlines lately. I was definitely fortunate to have learned from the best during my brief time there. They were recently named as one of the Top 50 Most Innovative companies in the world, right up there with Apple, Facebook, Groupon, etc. And check out the interview at the bottom of my post where David Neeleman says that Azul is on track to earn sales of $1 billion this year - after only 3 years in business. Wow!  It is amazing to me that they are having such monumental success in an industry that has really been struggling lately.

A big part of it is their focus on the customer and giving them a good experience. Not to mention the extremely affordable price. When Azul entered the market, the Brazilian airline industry was plagued by a duopoly that drove the price of airfare up to 150% of what it should have been. Only the rich flew. The driving force behind Azul was the idea that fares needed to compete with inter-state buses, which the majority of the Brazilian public used as transportation. So not only was it cheap, but when I flew on Azul I loved the new planes, the lack of a middle seat, the in-flight entertainment, the friendly stewardesses, and unlimited delicious snacks. It's almost like flying on Azul is a time-machine ride back to the glory days of commercial flight. I compare that to my recent experiences on Delta lately where I feel like they gouge you to death with fees and flying feels like an annoyance.

As if Azul wasn't affordable enough already, at one point they launched an extremely popular promotion called Passaporte Azul, similar to Jet Blue's All-You-Can-Jet Pass. For 500 Reais (around $200) you could fly anywhere in Brazil as many times as you wanted within that month! Letters poured in about how family members were reunited after many years because they could finally afford to fly. People in the middle and lower classes were flying for the first time in their lives. Azul was literally changing people's lives. At one point, I was asked to go to the airport and film some customer testimonials of people using the Passaporte Azul. I found a couple guys who were childhood friends who hadn't seen each other in years but happened to bump into each other on their flight. Both had purchased one of the passes so they decided to travel the country together for a whole month. Of all the people I filmed, not once did I hear a complaint or a lack of enthusiasm. In many cases people were actually grateful to the company and its founder, David Neeleman. When was the last time you heard someone filled with gratitude for their long flight from LA to New York? Everyone who flies Azul literally loves it.

Obviously building a great customer experience is essential, but you have to get the word out about it somehow. I may be slightly partial, but since my internship in Sao Paulo was in their marketing department I also attribute a big part of Azul's success to their creative and innovative marketing. Most of what we did would definitely be considered unconventional or non-traditional. We didn't advertise in newspapers or do big-bidget TV ads. I personally spent a lot of time working on creative promotions via Facebook and Twitter. Not only that, but I got to help with the launch of Azul's own social network viajamos.com.br, which means "we travel" in Portuguese and is a site dedicated to travel in Brazil. That, of course, was when I wasn't doing guerilla marketing, roaming the beaches of Rio de Janeiro handing out flyers and signing people up for Azul's frequent flyer program. Hey, it was a tough job, but someone had to do it! (photos to the left). It just goes to show you don't always need a gigantic, multi-million dollar advertising budget to be profitable. If you have a great product/service and some creative ideas to get the word out, success will follow.

I blogged about my semester with Azul, and you can read about my experiences at www.asaventurasdojj.blogspot.com  

Anyway, when I was there I remember the big party they threw when they reached 2 million passengers in
their first year of business. It was a world record. No airline in the history of aviation had ever reached that many passengers in its first year. It was very exciting to be part of that! Now, less than a year and a half later they have reached over 8 million. They started by flying between 3 cities. Three. Now they have flights to over 30. Stunning success! If there was ever a successful businessman to emulate, it would be David Neeleman. And rumor has it he might buy back Jet Blue. If he does, my resume will be one of the first in the inbox. 
Update 2021: These days I'm traveling with kids via minivan and you can read all about it on The Minivan Bucket List

Monday, April 11, 2011

Facebook Fan For Life!

A few weeks ago, I saw Mark Zuckerburg speak at BYU. He was brought there to discuss public policy and technology with Senator Orrin Hatch. I was impressed by the fact that Zuckerburg was poised and eloquent, and definitely not the same Mark portrayed by Jesse Eisenberg. He appeared sincere when he explained that Facebook never has and never will sell user’s information to advertisers. And he genuinely is passionate about the social good Facebook can facilitate especially in the areas of democracy and education. His $100 million donation to Newark’s public school system was more than just a PR stunt; he genuinely wants to help improve this country’s public education. Everyone knows about all the media coverage the site is getting for its role in the revolutions in Egypt and other places in the Arab world. But I’m a Facebook fanatic and even I didn’t know this: they are mapping the friendships between people in countries that are historically not friendly. Increased cross-border connection means increased understanding and peaceful relations. Check out http://peace.facebook.com/. It’s pretty awesome.
“Facebook is proud to play a part in promoting peace by building technology that helps people better understand each other. By enabling people from diverse backgrounds to easily connect and share their ideas, we can decrease world conflict in the short and long term.”
I was also impressed with one other thing he said: Facebook wants to enable and inspire innovation and change, not be the only source of it. I got to thinking that there’s not a whole lot of companies in the history of the world who want to share the wealth like that. Maybe Apple and Google, with their respective app building platforms.
Most impressive to me as of late is the money-making aspect of Facebook, which you cannot help but be awe-struck by. Think of all the people who have become very, very rich thanks to Zuckerburg:
  • Thousands of jobs have been created by social media savvy entrepreneurs and many companies eager to capitalize on the social network have hired people like me as social media managers and marketers. 
  • Developers and Programers. For example: Zynga - social gaming company that created Farmville (which on a side note, is completely absurd to me; seems like an utter waste of time) is now valued at somewhere between $7-10 billion.
  • Investors and early adopters. For example: Ad group Interpublic committed to spending $10 million of its clients money in 2006 and in return got a .4%, $5 million stake in the company. It is now worth a whopping $200-300 million! Now there is a return on your investment!
  • And the most amazing: According to Forbes, Facebook has created 6 billionaires - Mark Zuckerburg, Eduardo Saverin, Sean Parker, Dustin Moskovitz, and investors Peter Thiel and Yuri Milner. Wow! Not only that, but Mark and Dustin and the world’s youngest billionaires!
My mind is seriously boggled by how quickly this site has grown into a once-in-a-generation, world-changing phenomenon. I couldn’t help but be a little star-struck when I saw Zuckerburg speak. In terms of net worth, that was the most money I had ever seen in one room. And here’s some proof I was there. Low-res, but proof nonetheless. Long story short, for these reasons and many more I am a Facebook fan for life!