Saturday, June 21, 2008

Meet the Antipreneurs

Meet the Antipreneurs


Bill Goldsmith has always been a maverick. As a radio disc jockey and program director in the 1970s and '80s, he loved creating his own mixes of modern rock and introducing listeners to cutting-edge musicians. But in the '90s, as large corporations bought up the stations he worked for, Goldsmith began to feel increasingly choked by the demands of commercial radio. Programming was becoming too formulaic; he was given less leeway. Working in radio just wasn't fun anymore.

In 2000, with the rise of the Internet and streaming media, Goldsmith had an idea: Why not start his own station, one that would buck the constraints of corporate radio with innovative programming and no ads? Today, Radioparadise.com, which broadcasts an eclectic mix of modern, classic, and alternative rock, is commercial-free. It's supported entirely by donations from its listeners, 15,000 of whom are logged onto the site at any given time. Goldsmith's company, based in Paradise, Calif., has three employees and about $1 million in annual revenues. Rebecca Goldsmith, Bill's wife, is the CFO and new music reviewer. Says Bill: "I hate advertising. There is this kind of organic sense of community that develops here that could not happen if this radio station's sole reason for existence was to increase shareholder value for a large corporation."

Meet the antipreneurs. Goldsmith is one of perhaps a few thousand business owners who have won both notice and profits by being overtly or covertly anti-big business and anti-advertising. Antipreneurs frequently choose each other as suppliers because they share similar philosophies. Their marketing strategy is targeted toward consumers who have grown cynical about buying products and services from larger companies, whose methods they deem irresponsible. "Cynical consumers perceive that most of the marketplace is bad, lacking in integrity, or not trustworthy, except for a few [often small or local] companies," says Amanda Helm, a professor of marketing at the University of Wisconsin-Whitewater. "But once they find a company they can trust, they are very motivated to stick with [it]."

Antipreneurs are quick to differentiate their efforts to reform capitalism from social entrepreneurs' attempts to harness business for philanthropic ends. "What appeals to people about us is that this is a positive vision of how the marketplace can and should work," says Adam Neiman, president and CEO of No Sweat Apparel, a five- employee, $1 million Boston company that sells clothes produced in union factories. Neiman says the company's mission is to improve conditions for workers in the garment industry, in part by paying them a living wage and ensuring that they have union representation.

Antipreneurs walk a fine ideological line: They are pro-business and want their companies to grow, but they're against big business. They engage in global commerce while disdaining the machinations of globalization. They profit from the free market, but they criticize it, too.

So how do they get away with it? They wear their contrarian politics on their sleeves and seek customers who do the same. Often those are the so-called dark greens and very dark greens, who marketing experts say are borderline obsessed with environmental issues and feel the need to preach about their lifestyle. In addition, some 37% of people age 18 to 30 prefer to use brands that are socially conscious, with more than three-quarters of that group citing fair labor practices and two-thirds listing environmental factors as chief concerns, according to New York youth marketing company Alloy Media & Marketing (ALOY). Alloy says the youth market has nearly $200 billion in buying power.

Antipreneurs attempt to reach their potential customers without traditional advertising. What advertising they do is likely to be ironic, in-your-face, or highly political. In all cases, it reinforces the importance of buying from small companies that produce with sustainability in mind and use ethical labor practices. One consequence of this highly charged political stance is that antipreneurs face the wrath of passionate customers if they underdeliver or merely appear to.



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