Tuesday, February 10, 2015

How to beat the house...with technolgy.

    
This is one of my favorite “get even” stories.  When I was running my own business development company one of my clients ran an online gaming site.  The site didn’t use real money so you could gamble legally on it.  It was a loophole to be sure but the owner was proud of it.
            I came up with the idea of connecting the website to the casino’s on the river.  They had hosted events for me in the past and the connection was a no brainer.  If the casino advertised on the site it could put a ton of cash in our pockets at the same time.
            So with that I approached a marketing contact I had for the casino.  I told him about the site and how we were a legal gaming website in Nebraska who wanted to cross promote with their location.  At first he was excited to see what we came up with and gave me a ton of information on how the non gaming elements of the casino worked.
            The part he was most excited about was our ability to track emails.  My client owned an email program that not only tracked the open/read status of an email but could tell you who they forwarded it to, when they opened it, what links they clicked on, the associated IP addresses, and even the number of times you opened it.  When it came to generating a true ROI this program was amazing.
            At the end of our meeting he asked me to present a few ideas to them for review and then they would get back to us.  Whenever a meeting goes this well I tend to get a little excited and had 15 to 20 ideas within a few hours.  It didn’t hurt that I could also tie in several of my other clients into the promotions and double down on the exposure.
            After I narrowed the ideas down to 10 or so I sent him my standard non-disclosure email.  The response I got back gave me that horrible “pit of the stomach” feeling.  “I won’t sign this.  We represent one of the largest Casino properties in the world…if you can’t trust us then I guess we’re done here.”  I called him shortly after my stream of profanity had ceased.
            “You guys are a Casino…you’d bleed me dry at a table and then take my home if you had the chance…of course I don’t trust you!”  After an awkward laugh from him he restated the disheartening news.  I was at an impasse with the proposal…until I realized I had the email program.
            I agreed to forgo the NDA and sent him my proposal.  I sent it to him with a few embedded links to the other companies in the mix.  Most importantly though, I sent it through our email tracking system.
            Four weeks go by and he’s only returned a few emails from me.  Most of them said “we’ve been busy but I’ll get to it next week…I promise”.  And finally after a month I called him.
            “Just wanted to follow up and see if you had a chance to review our proposal?” 
            “Ah man…I’ve been swamped with execs in from out of town.  I don’t think I’ve even had a chance to open the original document” he told me.
            “Really?  I think you opened it this morning at about 9:35am from this IP address.  (read him the IP)  Furthermore, that’s the 8th time you’ve opened it since I sent it.  You’ve also forwarded the email to these 7 email addresses (read the list).  Remember when I told you we could track emails to a scary level…this is the proof”    
            If you’ve never dropped a bomb on someone like this before it’s a life changing moment.  I could almost hear him crapping his pants as he had a heart attack.  The look of shock on his face during the dead silence on the phone must have been epic.  He hurriedly blurted out, “um…um…we’ve already thought of most of this and want to pass…goodbye”
            Now I’ll be the first person to admit I could have handled that better, but lets face it the guy lied to me.  I approached the meeting and subsequent proposal with the best of intentions and full disclosure.  I would have been fine if he declined my proposal based on any number of reasons, but he lied to me for over a month.
            The lesson learned here is to use the tools at your disposal very carefully.  Had I used a little more restraint I may have salvaged this proposal and made some money on the deal.  At the same time I feel lucky to not have done business with someone who has that little integrity and overall lack of business ethics.  From that moment on I sent every proposal through that system and took it very seriously when I was presented an NDA.
            On a final note I ran into this guy years later.  I have grown a full beard and lost a bunch of weight since then.  He came up to me at a city run convention and was trying to get me to stop by his booth.  After he hit me with his canned speech on the amazing things going on at his casino I smiled and said.  “Sure…will you sign my NDA first?”  The blood drained from his face and his smile evaporated.  He happened to be shaking my hand at the time and his grip went limp.  “Justin?” he muttered.  I nodded and he walked away.

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