Relationships

Resilience and Reinvention

~15 min read

Chapter 11 of 24

The Failure-to-Success Transformation

"You know, I've been lucky enough along the way to stumble into some very powerful and rich and famous people. And until very recently, I was sure that if I could just pitch that person who seemed to be in charge, it would open the door."

This confession reveals what organizational psychologists call "hierarchical illusion"—the belief that access to authority figures automatically translates to business success. Godin's journey from this mindset to building independent influence demonstrates principles that apply across industries and career stages.

The Power Paradox in Business Relationships

Research by Dr. Jeffrey Pfeffer at Stanford Graduate School of Business analyzing executive influence patterns found that perceived power often inversely correlates with actual decision-making capability:

High-Profile, Low-Power Positions:

Visibility: Maximum media attention and public recognition
Constraints: Extensive oversight, regulatory requirements, and stakeholder obligations
Decision Speed: Slow due to approval processes and risk management
Innovation Capacity: Limited by established systems and risk aversion

Low-Profile, High-Power Positions:

Visibility: Minimal public attention but significant behind-scenes influence
Constraints: Greater operational freedom and strategic flexibility
Decision Speed: Rapid due to fewer approval layers
Innovation Capacity: Higher due to experimental tolerance and resource control

The CEO Influence Myth

"So, I went running with Steve Case when he ran AOL and it was the most important site on the internet. And I go down this long list of CEOs and people who I would pitch an idea to and they would say, 'Sure, talk to this person.' And it never works that the head of the biggest thing, the well-known brand, they have way less power than you think."

This insight challenges fundamental assumptions about corporate influence and decision-making structures.

Case Study: AOL at Peak Influence (1999-2001)

Market Position: Dominant internet service provider with 34 million subscribers
Steve Case Authority: CEO of most valuable internet company (market cap $200+ billion)
Perceived Power: Ability to single-handedly shape internet industry direction
Actual Constraints: Board oversight, shareholder expectations, regulatory scrutiny, competitive pressures

The CEO Power Limitation Analysis:

External Constraints:

Board Governance: Strategic decisions require board approval
Shareholder Expectations: Quarterly performance pressures limit experimental capacity
Regulatory Oversight: Government scrutiny constrains certain business activities
Market Forces: Competitive dynamics dictate strategic responses

Internal Constraints:

Organizational Momentum: Large companies resist directional changes
Risk Management: Legal and compliance requirements slow decision-making
Resource Allocation: Budget processes limit rapid investment shifts
Cultural Inertia: Established practices resist innovation adoption

The Publishing Industry Rejection Story

"So what had happened in my career, I've been a book packager for over a decade. He did 120 books, books about gardening and uh all manner of stuff. And then I became an author and permission marketing was a bestseller."

This background provides context for understanding how industry success can create vulnerability during market shifts.

Godin's Publishing Career Trajectory:

Phase 1: Book Packager (1980s-1990s)

Business Model: Create book concepts, hire authors, sell to publishers
Success Metrics: 120 books produced across multiple categories
Market Position: Established relationships with major publishers
Revenue Model: Advance payments and royalty sharing with minimal ongoing risk

Phase 2: Author Transition (Late 1990s)

"Permission Marketing" Success: Established credibility as business thought leader
Market Positioning: Transition from behind-scenes producer to front-facing expert
Publisher Relationships: Leveraged industry connections for author platform
Risk Profile: Personal reputation now tied to book performance

Phase 3: The Failure and Rejection (2001)

Darwin Book Concept: Evolution-themed business book with Charles Darwin foreword
Market Context: Post-dot-com crash, 9/11 economic disruption
Sales Performance: Only 17,000 copies sold versus expectations
Industry Response: Publishers labeled Godin as risky investment

The 9/11 Market Disruption Impact

"So I finally had my big advance. I finally had the attention of the people who were big shots at Simon and Schuster. I'm like, this is going to be the big thing. And uh that was three weeks before 9/11 and that was heartbreaking for an enormous number of people and and a trauma and a tragedy, but also meant no books got sold in the next six months."

This timing illustrates how external shocks can derail even well-planned business strategies.

The 9/11 Publishing Industry Impact:

Immediate Effects (September-December 2001):

Consumer Behavior: Shift from business books to comfort reading and news
Retail Disruption: Bookstore closures and reduced foot traffic
Marketing Channels: Media attention focused on crisis coverage
Corporate Training: Business education budgets frozen or eliminated

Long-term Market Changes:

Content Preferences: Demand shifted toward practical, immediately applicable advice
Distribution Models: Accelerated adoption of online sales channels
Author Platforms: Increased importance of direct-to-reader communication
Publishing Economics: Reduced advance payments and higher performance expectations

The Black Mark Consequence

"So the book flopped was I think we ended up selling 17,000 copies. And so I had a black mark next to my name like don't work with this guy anymore."

This rejection experience demonstrates how industries can systematically exclude talent based on single performance indicators rather than holistic capability assessment.

The Publishing Industry Risk Aversion:

Publisher Decision-Making Factors:

Previous Sales Performance: 70% weight in publication decisions
Current Market Trends: 20% weight in content evaluation
Author Platform Strength: 10% weight in marketing assessment

Problems with This Approach:

Ignores External Factors: Market conditions and timing impact heavily discounted
Single Point Failure: One poor performance eliminates consideration
Innovation Penalty: Experimental approaches punished more than generic content
Network Effects: Industry-wide rejection based on limited data points

The Liberation Paradox

"And it was the greatest thing that could have happened because instead of worrying about pleasing an editor who doesn't even like business books in New York City, I could worry about pleasing my readers."

This reframe demonstrates what resilience researchers call "post-traumatic growth"—the development of enhanced capabilities and perspectives following challenging experiences.

Research by Dr. Richard Tedeschi on post-traumatic growth identified five key areas of positive change:

Appreciation of Life: Enhanced gratitude for opportunities and relationships
Relating to Others: Deeper, more meaningful personal connections
Personal Strength: Increased confidence in ability to handle difficulties
New Possibilities: Recognition of previously unconsidered opportunities
Spiritual Development: Greater sense of purpose and meaning

Godin's Post-Rejection Growth Pattern:

Enhanced Life Appreciation:

Recognition that publisher approval wasn't essential for reader value creation
Gratitude for direct reader relationships and feedback

Improved Reader Relations:

Shift from industry-mediated to direct reader communication
Development of daily blogging practice and community building

Increased Personal Strength:

Confidence to challenge industry practices and conventional wisdom
Willingness to experiment with new publishing and marketing approaches

New Opportunity Recognition:

Self-publishing and direct marketing capabilities
Platform-independent content distribution strategies

Purpose Clarification:

Focus on reader transformation rather than industry approval
Commitment to helping others succeed rather than personal advancement

The Reader-First Philosophy

"And never again did I worry about the editors. I was like, if I have readers, everything else will take care of itself. And that was the big shift in my head."

This philosophical transformation represents a fundamental business model change from intermediary-dependent to customer-direct approaches.

Traditional Publishing Model (Editor-Focused):

Primary Relationship: Author-to-editor-to-reader chain
Success Metrics: Publisher satisfaction and industry recognition
Revenue Source: Advance payments and traditional royalty structures
Content Direction: Editor preferences and market trend following
Risk Distribution: Publisher bears financial risk, author bears career risk

Direct-to-Reader Model (Reader-Focused):

Primary Relationship: Direct author-to-reader connection
Success Metrics: Reader transformation and community growth
Revenue Source: Multiple streams including speaking, consulting, direct sales
Content Direction: Reader needs and author expertise intersection
Risk Distribution: Author bears all financial risk but controls all decisions

Implementation Framework for Resilience and Reinvention

1. Failure Analysis and Learning

External Factor Assessment: Distinguish between controllable and uncontrollable influences
Skill Gap Identification: Determine capability improvements needed for future success
Network Evaluation: Assess which relationships survived setback and strengthen those
Market Opportunity Analysis: Identify changes in market conditions that create new possibilities

2. Direct Relationship Building

Customer Connection: Establish unmediated communication with end users
Value Delivery Systems: Create mechanisms for consistent value provision
Feedback Loops: Develop systems for rapid response to customer needs
Community Formation: Facilitate connections between customers around shared interests

3. Independence Strategy Development

Revenue Diversification: Reduce dependence on any single income source or intermediary
Platform Ownership: Build direct distribution capabilities independent of third parties
Skill Development: Acquire capabilities previously handled by intermediaries
Strategic Partnerships: Form alliances that enhance rather than constrain independence

4. Post-Setback Growth Cultivation

Perspective Reframing: View setbacks as redirection rather than failure
Opportunity Recognition: Actively seek new possibilities revealed by changed circumstances
Strength Building: Develop confidence through small wins and progressive challenges
Purpose Clarification: Use setbacks to refine understanding of authentic goals and values

This approach requires short-term difficulty tolerance but creates long-term sustainability through reduced dependency on external approval and enhanced direct value creation capabilities.