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What Is 'Reputation'?

Reputation is what people think about a company or offer.

Building a strong reputation is very valuable; people are willing to pay more for a good reputation.

It's critical to understand that you don't control your reputation, people will decide what your reputation is. You can't "manage" it. You can only improve it over time by making sure that those who do business with you are glad they did.

Building a good reputation takes time and effort, but it's the most effective kind of marketing there is.

Josh Kaufman Explains 'Reputation'

In my opinion, "branding" is one of the single most over-used and over-hyped ideas in the modern business world. There's nothing magical or complex about building a brand: when business professionals say they want to "enhance their brand" or "build brand equity," they almost always mean "improve their reputation."

Reputation is what people generally think about a particular offer or company. Reputations naturally arise whenever people talk to each other. Some products and services are worth the price; others are not. Some experiences are worth having; others aren't. Some people are good to work with; others are not. No one wants to waste their time or money, which means people pay close attention to what others say about offers, experiences, or people they're interested in.

Building a strong reputation is hugely valuable: people are often willing to pay a premium for a good reputation. One of the reasons well-known consumer brands like Tide and Crest can continue to charge premium prices in near-commodity categories is the strength of their reputation. Potential customers want to feel certain that the purchase they're considering will benefit them, that others will think highly of their decision, and that they won't be wasting their money. As the saying goes, "no one ever got fired for buying IBM."

It's important to note that your reputation is not directly under your control-it's the sum total of what others think about everything you do: the products you release, the advertising you promote, the customer service you provide. No matter how hard you try, you can't directly "manage" your reputation-you can only try to improve it over time by making people glad they chose to do business with you.

Always remember that the marketplace is the final arbiter of your reputation, and that it's always watching what you do. When you build a great reputation, your customers will continue to do business with you, and will refer you to others because they think highly of you (and because referring friends to good products and services is a way to build their own reputations).

Building your reputation takes time and effort, but it's the most effective kind of marketing there is.

Questions About 'Reputation'

• What is the current state of your reputation?
• It is steadily increasing or decreasing?
• What can you do to improve your reputation over time?

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"Like it or not, the market's perception becomes your reality."

Howard Mann, actor and comedian

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https://personalmba.com/reputation/

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