Entrepreneurship is often portrayed as a glamorous path, but as Alex Melen, co-founder of SmartSites, highlighted on The Snoball Effect podcast, it is a journey filled with challenges and learning opportunities. Alex, who started one of the first web hosting companies as a teenager, brings decades of experience to the table. His insights offer a candid look into the realities of building and scaling a business, emphasizing the importance of adaptability, specialization, and staying ahead of digital trends.
Key Takeaways
- Entrepreneurship: Alex discussed his experience in entrepreneurship and the ongoing challenges entrepreneurs face, like the difficulty of letting go of control as a business scales and the importance of learning from mistakes and failures.
- Specialization: Specialization became crucial as SmartSites grew, because focusing on specific skill sets within his team allowed the company to offer more tailored and effective services to clients.
- Digital Transformation: Alex noted the rapid changes in digital marketing, particularly with the rise of AI and how it could disrupt traditional search engines like Google. He discussed the importance of staying by experimenting with new tools and strategies.
Entrepreneurial Journey and Challenges
Alex Melen’s journey into entrepreneurship began at a remarkably young age. He shared that he started his first business in the mid-90s, a time when the internet was like the "wild, wild west." Thinking back on those early days, he said, “I started one of the first web hosting companies back in '97... It was anything goes, new ideas were popping up left and right.” This experience not only laid the foundation for his future ventures but also ingrained in him a deep understanding of the digital landscape and the unpredictable nature of business growth.
Alex recounted how his reluctance to give up equity or bring in partners hampered the growth of his first company. “As an entrepreneur, a lot of times that's the most important and most beneficial thing you could do for your business,” he reflected. This realization came after witnessing the rapid expansion of the industry around him, while his own business struggled to keep up. The lesson here is clear: entrepreneurs must be willing to adapt and evolve, even if it means making tough decisions.
As his career progressed and he co-founded SmartSites, Alex faced numerous challenges. One of the most significant hurdles was learning to delegate and let go of control. “When we started growing, it was very hard for me to not be involved in everything... Learning to give up that control and putting the correct people in place was tough,” he admitted. For many entrepreneurs, the instinct to micromanage is strong, especially when the business is your brainchild. However, Alex realized that to grow effectively, he needed to trust his team and empower them to take on more responsibility.
Alex Melen
Co-Founder @ SmartSites
“You will learn a lot more from the challenges and from the failures than you will ever learn in a corporate job.”
Ultimately, Alex’s journey shows that entrepreneurship is not a linear path. It’s filled with ups and downs, and each stage of growth brings new challenges. But as Alex emphasized, these challenges are also opportunities to learn and grow: “You will learn a lot more from the challenges and from the failures than you will ever learn in a corporate job.” This mindset is crucial for anyone looking to succeed in the entrepreneurial world.
Specialization in Business Growth
As SmartSites continued to grow, Alex discovered that specialization was an essential strategy for sustaining and enhancing business success. At the beginning, employees often wore multiple hats, handling everything from SEO to pay-per-click campaigns. However, as the company expanded, it became clear that focusing on specific skill sets was key to delivering high-quality services. “We hire people specifically for those pillars... it’s much easier to train someone to be very good at SEO versus being mediocre at pay per click and SEO,” Alex explained.
This move towards specialization not only improved the quality of work but also created a more dynamic and fulfilling environment for employees. Alex mentioned that as the company grew, it allowed for more defined roles, which in turn provided clearer career paths for team members. “By growing, we give our employees upward mobility... Being able to grow at a moderate pace gives our employees a lot of opportunities,” he pointed out. This focus on employee development is a cornerstone of SmartSites’ success, as it leads to higher employee satisfaction and, consequently, better client outcomes.
Specialization also allowed SmartSites to offer more targeted services to clients, particularly in niche industries. Alex noted that having experts in specific fields, such as home services or dental marketing, enabled the company to deliver more effective solutions. “Not only do we have PPC analysts, but we have a home services PPC analyst that is very familiar with home services clients,” he expounded. This level of expertise means that clients receive tailored strategies that address their unique challenges, rather than a one-size-fits-all approach.
Alex proudly shared that the company has doubled in size every 18 months since its inception. This rapid expansion and impressive trajectory is a testament to the effectiveness of their specialized approach.
Staying Ahead in the Digital Age
In today’s fast-paced digital world, staying ahead of trends is crucial for business success. Alex Melen is acutely aware of this and has positioned SmartSites at the forefront of digital marketing by embracing new technologies and strategies. One of the most significant developments in recent years has been the rise of AI, which Alex believes could have a profound impact on the industry. “I’ve seen more change happen in the last 12 months than the last 10 years before,” he remarked, highlighting the disruptive potential of AI.
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Schedule DemoAlex discussed how generative AI is starting to challenge traditional search engines like Google. He used the example of looking up recipes online, where AI can now provide direct answers without the need for a user to sift through ad-laden websites. “Generative AI could answer questions for you... Why do you need to go on Google search?” he asked. While this shift presents challenges, it also offers new opportunities for businesses that are willing to innovate and adapt.
To stay ahead of such rapid changes, Alex advocates for continuous experimentation. SmartSites sets aside 10% of its marketing budget specifically for testing new tools and strategies. “We always set aside a budget to experiment with... It's very important to be testing for us,” he said. This commitment to innovation allows SmartSites to remain agile and responsive to emerging trends, ensuring that they are not only keeping up with the competition but often staying ahead of it.
Pro Tip:
If possible, set aside 10% of your marketing budget each month for testing new tools, strategies, and emerging trends.
Alex’s approach to digital marketing is a powerful reminder that businesses must be willing to embrace change and take risks. Whether it’s experimenting with TikTok ads or exploring the potential of AI, the key is to remain proactive and curious. “You don't want to be the business that has all your money invested in the yellow pages 10 years ago and refused to even make a website,” he cautioned. By continually pushing the envelope and exploring new avenues, SmartSites is well-positioned to thrive in an ever-evolving digital landscape.
Seize Opportunities
Alex is passionate about entrepreneurship. He firmly believes in the idea that anyone can start something new, regardless of whether it becomes a full-time venture. “I think in terms of where we are in history, it's probably the easiest time to really start something new... You can create something cool digitally, even as a passion project,” Alex encouraged.
His advice to both aspiring entrepreneurs and established professionals is to seize the opportunities available today and to support others on their journey. Whether or not you succeed in your first venture isn’t the point; the value lies in taking that leap, learning from the experience, and supporting those around you as they do the same.
