Yesterday I was reminded of a post that Tommy wrote nearly five years ago in which he succinctly defended promoters: “A promoter is an entrepreneur, a storyteller, a risk taker, a champion of something new. And if you want to be rich in your life, you ought to be one.”
While attending the Scottsdale Capital Conference this weekend I was reminded we are all promoters in some capacity, some access this side of themselves much more regularly and are much more skilled at promoting ideas, companies, and themselves than others. Another word which is a close relative to promotion is enrollment. We are always enrolling others or ourselves into something, only all the time. We might be enrolling someone into dropping us at the airport one day or going out to dinner with us the next.
In the case of a stock promoter their task is to spread a company’s story to as wide an audience as possible and ultimately enroll investors into buying shares. Enrolling investors into buying stock creates more liquidity in a company’s stock which makes it easier and often cheaper to do financings. A company’s share price and stock listing (which exchange they are listed on) can also add prestige and credibility to a company.
Yesterday around the 15th presentation (out of 18 total) that I attended I had the thought “when does a company no longer need to promote?” - the answer is never. Even a company like Apple or a mining behemoth like Barrick Gold uses promotion, it just may not look like a promoter or newsletter writer hyping up their stock to a group of individual investors. Instead these massive companies use advertising, CEO interviews, trade shows, etc. And their aim is to maintain brand integrity and the prestige of their name and products which makes it much easier to operate on a global scale and deal with governments and different cultures of consumers and employees.
I used to be very uncomfortable with promotion of any sort. As i’ve grown older i’ve learned that promotion and enrollment is everywhere. So instead of resisting it, i’ve accepted it and learned to promote things I believe in and maintain a discerning eye when someone is trying to promote something to me. Promotion never ends.
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