Executive Ramblings: The Dangers of Hype in Marketing Transformative Change
If you have been following politics on TV since last November, there’s a good chance you’ve watched Senator Chuck Schumer (D-NY) using an imaginary middle-class family as a rhetorical device to unify the Democratic message around this crucial target market. (note: if you object to comparing politics to marketing, keep in mind that Republicans have been using micro-niche issue targeting and other staple techniques from the marketing world for years, with great success)
At Green Options, when we build services and features, we hold ourselves to a similar standard: can my mother use this? Of course, I don’t expect my mom to get linked to our site through Digg and then add our RSS feed to her news aggregator (indeed, she’s never heard of Netvibes), but we try to make sure that all of the information we provide is accessible to not only the less green-savvy, but the less tech-savvy as well. At the same time, we do our best to make sure those users have the tools to understand terms like RSS and Web 2.0.
In the end, we know that all of the resources we provide won’t be right for all users, but we are confident that there is something useful or interesting for practically everyone, and we trust our users to decide for themselves what features and information they find useful.
Contrast our market-making philosophy with the multi-level marketing (MLM) approach taken by Citizenrē. Instead of giving users the resources to make their own energy and lifestyle choices through open information, independent ‘Ecopreneurs’ claim to provide a one size fits all solution: wait on buying solar panels today to get on a waitlist for renting them a few years down the road.
For those of us trying to build green markets now (especially solar energy), this pitch immediately raises two major concerns: lost consumer confidence in the solar industry if promises go undelivered, and the pre-empting of legitimate projects for solar installers by overzealous Citizenrē reps.
Over-hyped grand visions of a sudden MLM-based energy revolution are harmful at worst and apparently infeasible at best. The vast majority of ‘green collar’ professionals who spend their time in the details of building their industries understand that transforming our energy economy is (and will continue to be) a painstaking process.
I’m sorry to say that multi-level marketing will not be the hero of this story, at least not without having proven deliverables in place before initiating such a campaign. I may come to eat my words: it is possible that Citizenrē is just using MLM to prove consumer demand, and the word is out that the company will announce its investors and factory location a mere two weeks from now. But if I do, I’ll eat them happily, because it will mean that at least someone got through to the world.
While the rest of the solar industry obviously shares in the hope that (for example) solar energy’s market share will reach 25% by 2025, unsupported promises and unbridled enthusiasm are obviously not enough to get us there. Development is more likely to be accelerated by unexpected climactic, economic, or political events than by down-line residual sales commissions. Indeed, in their ebullience, Citizenrē executives appear not to take into account the complexities of implementing such a huge, vertically-integrated business plan—but at least they have a vision.
I was taught that a company’s vision statement should be defined by an ultimate, unachievable goal. Given the company’s robust projections and …interesting (for lack of a more judgmental word) ‘pyramarkting’ choices, Citizenrē’s goals certainly appear to be just that: unachievable.
But that doesn’t mean we should throw the baby out with the bath water. One secretive company might not be able to do it, but a sea change in public perceptions certainly could. Grand visions of transformative change can and will spur innovative solutions, but only if we can help green markets grow in honest and transparent ways, and keep intact the trust of a cautious public.


March 9th, 2007 at 6:26 pm
Citizenre is a startup company that is offering homeowners in the United States the opportunity of using solar-electric panels on their home without the burdensome, financial investment. We do this by renting the equipment to you so that you can produce and use your own, renewable electricity. We liken this to the cell-phone industry: previously you needed to buy a phone for $2,000. Now, they simply give them to you so that you can buy their service. We are doing the same thing, except on a much grander scale.
I have been watching the climate over the past 20 years, here in New England, and the increased instability is simply remarkable: wider and faster temperature swings, more severe storms and tornadoes, and less snow during the winters. Politicians talk about making changes, if it manages to even cross their minds, but there is nothing to gain by making any changes: the climate is not broken yet, so why fix it?
Citizenre is offering the only large scale answer to the climate problem, and I am donig what I can to help make it successful: homeowners can create renewable energy for themselves, save some money, and save the planet, while the company makes some money too! A win, win, win!
My family lives renewably, but we simply cannot afford the $40,000 to buy a system- this is the only solution that we have available to us, and the systems will start being installed in early 2008!
I cannot wait to see it happen!
Disclaimer: I am the (Independent) Regional Sales Director for New England for this Citizenre program.
March 9th, 2007 at 7:07 pm
Marc-
I don't dispute any of your premises. Something does need to be done. But despite your company's claims, it not clear that there is yet a viable business model in residential PPA agreements. The market is simply too fragmented to expect one company to wear every hat in the solar industry, especially when its first public announcements are so thoroughly based on projections that have (to date) no concrete actions behind them.
Also, it's slightly misleading to declare that anyone who can't afford $40k up front can't get a solar panel system through current channels. any good solar financial analysis expert will tell you that there are various financing options which will defray that up-front cost over time, and cost you less on a monthly basis than the energy costs avoided by installing solar panels the traditional way–owning them yourself.
-David
Founder and CEO
Green Options, LLC
P.S. our forums are a great place to discuss this issue in greater depth…
June 26th, 2007 at 2:40 pm
All of us that have been watching this program for the last several months are all VERY pregnant with anticipation for the release of more information.
Like yourself we wish to see if this program [their baby as they say] will be a healthy viable opportunity to arm the masses of the USA with renewable solar electricity.
Bravo for your open stance on this topic as well as your no hype news forum and i await your vedict.