1-Minute Insight: Same Same But Different

Many entrepreneurs believe that all publicity is good publicity. With this as their mindset, they are willing to associate their companies with anything that will get them in the news.

The problem with this mindset is that association has an averaging effect. When two organizations of differing reputation levels are linked, it brings the value of the more reputed organization down and the less reputed organization up.

While this may not be an issue for start-ups, as they are likely the organization with the “lesser” reputation, it will be an issue for more established organizations. As reputation is fragile and, once lost, difficult to rebuild. Organizations would do well to think carefully before associating themselves with another organization.

And, in the era of social media where the internet never forgets, I would also advise start-ups to do the same.

Not all publicity is the same.